1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education; special programs; 
  1.4             lifework development; facilities and technology; 
  1.5             education excellence; other programs; nutrition 
  1.6             programs; libraries; education policy; and state 
  1.7             agencies; appropriating money; amending Minnesota 
  1.8             Statutes 1998, sections 13.46, subdivision 2; 43A.18, 
  1.9             subdivision 4a; 119A.01, subdivisions 1 and 2; 
  1.10            120A.22, subdivision 5; 120A.24, subdivision 1; 
  1.11            120A.41; 121A.15, subdivision 1; 121A.23; 121A.45, 
  1.12            subdivision 2; 122A.07, subdivision 1; 122A.18, by 
  1.13            adding a subdivision; 122A.28; 122A.60, subdivision 3; 
  1.14            122A.61, subdivisions 1 and 2; 123A.05, subdivision 2; 
  1.15            123A.48, subdivision 10; 123B.195; 123B.36, 
  1.16            subdivision 1; 123B.49, subdivision 4; 123B.53, 
  1.17            subdivisions 4, 5, and 6; 123B.54; 123B.57, 
  1.18            subdivision 4; 123B.61; 123B.75, by adding a 
  1.19            subdivision; 123B.79, by adding a subdivision; 
  1.20            123B.92, subdivision 9; 123B.93; 124C.55, by adding a 
  1.21            subdivision; 124D.10, subdivisions 3, 4, 5, 6, 10, 11, 
  1.22            and by adding a subdivision; 124D.11, subdivisions 4, 
  1.23            6, 7, 8, and by adding a subdivision; 124D.453, 
  1.24            subdivision 3; 124D.454; 124D.68, subdivision 9; 
  1.25            124D.69, subdivision 1; 124D.87; 124D.88, subdivision 
  1.26            3; 124D.94, subdivisions 3, 6, and 7; 125A.09, 
  1.27            subdivision 4; 125A.50, subdivisions 2 and 5; 125A.75, 
  1.28            subdivision 8; 125A.76, subdivisions 1, 4, and 5; 
  1.29            125A.79, subdivisions 1, 2, and by adding 
  1.30            subdivisions; 125B.05, subdivision 3; 125B.20; 
  1.31            126C.05, subdivisions 1, 3, 15, and by adding a 
  1.32            subdivision; 126C.10, subdivisions 1, 2, 3, 4, 10, 14, 
  1.33            19, 21, and by adding subdivisions; 126C.12; 126C.13, 
  1.34            subdivisions 1 and 2; 126C.15; 126C.17, subdivisions 
  1.35            2, 5, and 6; 126C.40, subdivision 4; 126C.42, 
  1.36            subdivisions 1 and 2; 126C.46; 126C.63, subdivisions 5 
  1.37            and 8; 126C.69, subdivisions 2 and 9; 127A.44, 
  1.38            subdivision 2; 127A.45, subdivisions 2, 3, 4, 13, and 
  1.39            by adding a subdivision; 127A.47, subdivisions 2 and 
  1.40            7; 127A.49, subdivisions 2 and 3; 128C.01, 
  1.41            subdivisions 4 and 5; 128C.02, by adding a 
  1.42            subdivision; 128C.12, subdivision 1; 128C.20; and 
  1.43            626.556, by adding a subdivision; Laws 1993, chapter 
  1.44            224, article 3, section 32, as amended; Laws 1995, 
  1.45            First Special Session chapter 3, article 12, section 
  1.46            7, as amended; Laws 1996, chapter 412, article 1, 
  2.1             section 35; Laws 1997, First Special Session chapter 
  2.2             4, article 1, section 61, subdivisions 1, 2, 3, as 
  2.3             amended, and 4; article 2, section 51, subdivision 29, 
  2.4             as amended; article 8, section 4; article 9, section 
  2.5             13; and Laws 1998, chapter 397, article 12, section 8; 
  2.6             chapter 398, article 6, sections 38 and 39; proposing 
  2.7             coding for new law in Minnesota Statutes, chapters 
  2.8             120B; 121A; 124D; 125A; 125B; 128C; and 134; repealing 
  2.9             Minnesota Statutes 1998, sections 120B.05; 122A.31, 
  2.10            subdivision 4; 123B.05; 123B.64, subdivisions 1, 2, 3, 
  2.11            and 4; 123B.92, subdivisions 2, 4, 6, 7, 8, and 10; 
  2.12            124D.112; 124D.113; 124D.116; 124D.24; 124D.25; 
  2.13            124D.26; 124D.27; 124D.28; 124D.29; 124D.30; 124D.32; 
  2.14            124D.453; 124D.65, subdivision 3; 124D.67; 124D.70; 
  2.15            124D.90; 125A.76, subdivision 6; 125A.77; 125A.79, 
  2.16            subdivision 3; 126C.05, subdivision 4; 126C.06; 
  2.17            127A.45, subdivision 5; 134.155; 135A.081; Laws 1995, 
  2.18            First Special Session chapter 3, article 3, section 
  2.19            11; Laws 1997, First Special Session chapter 4, 
  2.20            article 1, section 62, subdivision 5; article 2, 
  2.21            section 51, subdivision 10; article 3, section 5; and 
  2.22            article 8, section 5; and Laws 1998, chapter 398, 
  2.23            article 2, section 57. 
  2.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.25                             ARTICLE 1
  2.26                         GENERAL EDUCATION
  2.27     Section 1.  Minnesota Statutes 1998, section 123A.05, 
  2.28  subdivision 2, is amended to read: 
  2.29     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
  2.30  of an area learning center must reserve revenue in an amount 
  2.31  equal to at least 90 percent of the district average general 
  2.32  education revenue less ~~compensatory~~ basic skills revenue per 
  2.33  pupil unit times the number of pupil units attending an area 
  2.34  learning center program under this section.  The amount of 
  2.35  reserved revenue under this subdivision may only be spent on 
  2.36  program costs associated with the area learning center.  
  2.37  Compensatory revenue must be allocated according to section 
  2.38  126C.15, subdivision 2. 
  2.39     <i>(Effective Date: Section 1 (123A.05, subdivision 2) is</i> 
  2.40  <i>effective for revenue for fiscal year 2000 and later.)</i> 
  2.41     Sec. 2.  Minnesota Statutes 1998, section 123B.79, is 
  2.42  amended by adding a subdivision to read: 
  2.43     Subd. 9.  [RESERVED REVENUE FOR TRANSPORTATION.] A school 
  2.44  district may establish one or more reserve for transportation 
  2.45  accounts in the general fund which will contain revenue 
  2.46  designated to those accounts by the board.  Revenue contained in 
  2.47  a reserve for transportation account may only be used for 
  3.1   transportation-related expenditures and shall not be available 
  3.2   for other purposes. 
  3.3      Sec. 3.  Minnesota Statutes 1998, section 123B.92, 
  3.4   subdivision 9, is amended to read: 
  3.5      Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
  3.6   district's nonpublic pupil transportation aid for ~~the 1996-1997~~ 
  3.7   ~~and later school years for~~ transportation services for nonpublic 
  3.8   school pupils according to sections 123B.88, 123B.84 to 123B.86, 
  3.9   and this section, equals the sum of the amounts computed in 
  3.10  paragraphs (b) and (c).  This aid does not limit the obligation 
  3.11  to transport pupils under sections 123B.84 to 123B.87. 
  3.12     (b) For regular and excess transportation according to 
  3.13  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  3.14  equal to the product of: 
  3.15     (1) the district's actual expenditure per pupil transported 
  3.16  in the regular and excess transportation categories during the 
  3.17  second preceding school year; times 
  3.18     (2) the number of nonpublic school pupils residing in the 
  3.19  district who receive regular or excess transportation service or 
  3.20  reimbursement for the current school year; times 
  3.21     (3) the ratio of the formula allowance pursuant to section 
  3.22  126C.10, subdivision 2, for the current school year to the 
  3.23  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.24  for the second preceding school year. 
  3.25     (c) For nonpublic nonregular transportation according to 
  3.26  subdivision 1, paragraph (b), clause (5), an amount equal to the 
  3.27  product of: 
  3.28     (1) the district's actual expenditure for nonpublic 
  3.29  nonregular transportation during the second preceding school 
  3.30  year; times 
  3.31     (2) the ratio of the formula allowance pursuant to section 
  3.32  126C.10, subdivision 2, for the current school year to the 
  3.33  formula allowance pursuant to section 126C.10, subdivision 2, 
  3.34  for the second preceding school year. 
  3.35     (d) Notwithstanding the amount of the formula allowance for 
  3.36  fiscal years ~~1997 and 1998~~ 2000, 2001, and 2002 in section 
  4.1   126C.10, subdivision 2, the commissioner shall use the amount of 
  4.2   the formula allowance for the current year ~~less $300~~ plus $87 in 
  4.3   determining the nonpublic pupil transportation revenue in 
  4.4   paragraphs (b) and (c) for fiscal ~~years 1997 and 1998~~ year 2000, 
  4.5   and the amount of the formula allowance less $110 in determining 
  4.6   the nonpublic pupil transportation revenue in paragraphs (b) and 
  4.7   (c) for fiscal years 2001 and 2002. 
  4.8      <i>(Effective Date: Section 3 (123B.92, subdivision 9) is</i> 
  4.9   <i>effective for revenue for fiscal year 2000 and later.)</i> 
  4.10     Sec. 4.  Minnesota Statutes 1998, section 124D.68, 
  4.11  subdivision 9, is amended to read: 
  4.12     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
  4.13  attending an eligible program full time under subdivision 3, 
  4.14  paragraph (d), the department must pay 90 percent of the 
  4.15  district's average general education revenue less ~~compensatory~~ 
  4.16  basic skills revenue to the eligible program and ten percent of 
  4.17  the district's average general education revenue 
  4.18  less ~~compensatory~~ basic skills revenue to the resident district 
  4.19  within 30 days after the eligible program verifies enrollment 
  4.20  using the form provided by the department.  For a pupil 
  4.21  attending an eligible program part time, revenue shall be 
  4.22  reduced proportionately, according to the amount of time the 
  4.23  pupil attends the program, and the payments to the eligible 
  4.24  program and the resident district shall be reduced accordingly.  
  4.25  A pupil for whom payment is made according to this section may 
  4.26  not be counted by any district for any purpose other than 
  4.27  computation of general education revenue.  If payment is made 
  4.28  for a pupil under this subdivision, a district shall not 
  4.29  reimburse a program under section 124D.69 for the same 
  4.30  pupil.  ~~Compensatory~~ Basic skills revenue shall be paid 
  4.31  according to section 126C.10, subdivision ~~3~~ 4. 
  4.32     (b) The department must pay up to 100 percent of the 
  4.33  revenue to the eligible program if there is an agreement to that 
  4.34  effect between the school district and the eligible program.  
  4.35     <i>(Effective Date: Section 4 (124D.68, subdivision 9) is</i> 
  4.36  <i>effective for revenue for fiscal year 2000 and later.)</i> 
  5.1      Sec. 5.  Minnesota Statutes 1998, section 124D.69, 
  5.2   subdivision 1, is amended to read: 
  5.3      Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
  5.4   program, eligible under section 124D.68, subdivision 3, 
  5.5   paragraph (d), or subdivision 4, operated by a private 
  5.6   organization that has contracted with a school district to 
  5.7   provide educational services for eligible pupils under section 
  5.8   124D.68, subdivision 2, the district contracting with the 
  5.9   private organization must reimburse the provider an amount equal 
  5.10  to at least 90 percent of the district's average general 
  5.11  education less ~~compensatory~~ basic skills revenue per pupil unit 
  5.12  times the number of pupil units for pupils attending the 
  5.13  program.  Basic skills revenue shall be paid according to 
  5.14  section 126C.10, subdivision 4.  Compensatory revenue must be 
  5.15  allocated according to section 126C.15, subdivision 2.  For a 
  5.16  pupil attending the program part time, the revenue paid to the 
  5.17  program must be reduced proportionately, according to the amount 
  5.18  of time the pupil attends the program, and revenue paid to the 
  5.19  district shall be reduced accordingly.  Pupils for whom a 
  5.20  district provides reimbursement may not be counted by the 
  5.21  district for any purpose other than computation of general 
  5.22  education revenue.  If payment is made to a district or program 
  5.23  for a pupil under this section, the department must not make a 
  5.24  payment for the same pupil under section 124D.68, subdivision 9. 
  5.25     <i>(Effective Date: Section 5 (124D.69, subdivision 1) is</i> 
  5.26  <i>effective for revenue for fiscal year 2000 and later.)</i> 
  5.27     Sec. 6.  Minnesota Statutes 1998, section 126C.05, 
  5.28  subdivision 1, is amended to read: 
  5.29     Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
  5.30  Minnesota resident pupil in average daily membership enrolled in 
  5.31  the district of residence, in another district under sections 
  5.32  123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
  5.33  124D.68; in a charter school under section 124D.10; or for whom 
  5.34  the resident district pays tuition under section 123A.18, 
  5.35  123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
  5.36  subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
  6.1   125A.65, shall be counted according to this subdivision.  
  6.2      (a) A prekindergarten pupil with a disability who is 
  6.3   enrolled in a program approved by the commissioner and has an 
  6.4   individual education plan is counted as the ratio of the number 
  6.5   of hours of assessment and education service to 825 times 1.25 
  6.6   with a minimum of 0.28, but not more than ~~one~~ 1.25. 
  6.7      (b) A prekindergarten pupil who is assessed but determined 
  6.8   not to be handicapped is counted as the ratio of the number of 
  6.9   hours of assessment service to 825 times 1.25.  
  6.10     (c) A kindergarten pupil with a disability who is enrolled 
  6.11  in a program approved by the commissioner is counted as the 
  6.12  ratio of the number of hours of assessment and education 
  6.13  services required in the fiscal year by the pupil's individual 
  6.14  education program plan to 875, but not more than one. 
  6.15     (d) A kindergarten pupil who is not included in paragraph 
  6.16  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
  6.17  thereafter. 
  6.18     (e) A pupil who is in any of grades 1 to 6 is counted as 
  6.19  1.06 pupil units for fiscal year 1995 and thereafter. 
  6.20     (f) A pupil who is in any of grades 7 to 12 is counted as 
  6.21  1.3 pupil units.  
  6.22     (g) A pupil who is in the post-secondary enrollment options 
  6.23  program is counted as 1.3 pupil units.  
  6.24     <i>(Effective Date: Section 6 (126C.05, subdivision 1) is</i> 
  6.25  <i>effective for revenue for fiscal year 2000 and later.)</i> 
  6.26     Sec. 7.  Minnesota Statutes 1998, section 126C.05, 
  6.27  subdivision 3, is amended to read: 
  6.28     Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  6.29  revenue pupil units for fiscal year 1998 and thereafter must be 
  6.30  computed according to this subdivision.  
  6.31     (a) The compensation revenue concentration percentage for 
  6.32  each building in a district equals the product of 100 times the 
  6.33  ratio of:  
  6.34     (1) the sum of the number of pupils enrolled in the 
  6.35  building eligible to receive free lunch plus one-half of the 
  6.36  pupils eligible to receive reduced priced lunch on October 1 of 
  7.1   the previous fiscal year; to 
  7.2      (2) the number of pupils enrolled in the building on 
  7.3   October 1 of the previous fiscal year. 
  7.4      (b) The compensation revenue pupil weighting factor for a 
  7.5   building equals the lesser of one or the quotient obtained by 
  7.6   dividing the building's compensation revenue concentration 
  7.7   percentage by 80.0.  
  7.8      (c) The compensation revenue pupil units for a building 
  7.9   equals the product of:  
  7.10     (1) the sum of the number of pupils enrolled in the 
  7.11  building eligible to receive free lunch and one-half of the 
  7.12  pupils eligible to receive reduced priced lunch on October 1 of 
  7.13  the previous fiscal year; times 
  7.14     (2) the compensation revenue pupil weighting factor for the 
  7.15  building; times 
  7.16     (3) .60. 
  7.17     (d) Notwithstanding paragraphs (a) to (c), for charter 
  7.18  schools and contracted alternative programs in the first year of 
  7.19  operation, compensation revenue pupil units shall be computed 
  7.20  using data for the current fiscal year.  If the charter school 
  7.21  or contracted alternative program begins operation after October 
  7.22  1, compensatory revenue pupil units shall be computed based on 
  7.23  pupils enrolled on an alternate date determined by the 
  7.24  commissioner, and the compensation revenue pupil units shall be 
  7.25  prorated based on the ratio of the number of days of student 
  7.26  instruction to 170 days. 
  7.27     (e) Notwithstanding paragraphs (a) to (c), for a school 
  7.28  building where the number of pupils enrolled in the building has 
  7.29  increased by more than ten percent over the previous year, 
  7.30  compensation revenue pupil units shall be computed using data 
  7.31  for the current fiscal year less ten percent of the pupil units 
  7.32  for that year. 
  7.33     (f) The percentages in this subdivision must be based on 
  7.34  the count of individual pupils and not on a building average or 
  7.35  minimum. 
  7.36     <i>(Effective Date: Section 7 (126C.05, subdivision 3) is</i> 
  8.1   <i>effective for revenue for fiscal year 2000 and later.)</i> 
  8.2      Sec. 8.  Minnesota Statutes 1998, section 126C.05, 
  8.3   subdivision 15, is amended to read: 
  8.4      Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  8.5   enrolled in a learning year program under section 124D.128, an 
  8.6   area learning center under sections 123A.05 and 123A.06, an 
  8.7   alternative program approved by the commissioner, or a contract 
  8.8   alternative program under section 124D.68, subdivision 3, 
  8.9   paragraph (d), or subdivision 3a, for more than ~~1,020~~ 1,038 
  8.10  hours in a school year for a secondary student, more than 
  8.11  ~~935~~ 952 hours in a school year for an elementary student, or 
  8.12  more than ~~425~~ 433 hours in a school year for a kindergarten 
  8.13  student without a disability, that pupil may be counted as more 
  8.14  than one pupil in average daily membership.  The amount in 
  8.15  excess of one pupil must be determined by the ratio of the 
  8.16  number of hours of instruction provided to that pupil in excess 
  8.17  of:  (i) the greater of ~~1,020~~ 1,038 hours or the number of hours 
  8.18  required for a full-time secondary pupil in the district 
  8.19  to ~~1,020~~ 1,038 for a secondary pupil; (ii) the greater of ~~935~~ 
  8.20  952 hours or the number of hours required for a full-time 
  8.21  elementary pupil in the district to ~~935~~ 952 for an elementary 
  8.22  pupil in grades 1 through 6; and (iii) the greater of ~~425~~ 433 
  8.23  hours or the number of hours required for a full-time 
  8.24  kindergarten student without a disability in the district to ~~425~~ 
  8.25  433 for a kindergarten student without a disability.  Hours that 
  8.26  occur after the close of the instructional year in June shall be 
  8.27  attributable to the following fiscal year.  A kindergarten 
  8.28  student must not be counted as more than 1.2 pupils in average 
  8.29  daily membership under this subdivision. 
  8.30     (b)(i) To receive general education revenue for a pupil in 
  8.31  an alternative program that has an independent study component, 
  8.32  a district must meet the requirements in this paragraph.  The 
  8.33  district must develop, with the pupil, a continual learning plan 
  8.34  for the pupil.  A district must allow a minor pupil's parent or 
  8.35  guardian to participate in developing the plan, if the parent or 
  8.36  guardian wants to participate.  The plan must identify the 
  9.1   learning experiences and expected outcomes needed for 
  9.2   satisfactory credit for the year and for graduation.  The plan 
  9.3   must be updated each year.  Each school district that has a 
  9.4   state-approved public alternative program must reserve revenue 
  9.5   in an amount equal to at least 90 percent of the district 
  9.6   average general education revenue per pupil unit less 
  9.7   compensatory revenue per pupil unit times the number of pupil 
  9.8   units generated by students attending a state-approved public 
  9.9   alternative program.  The amount of reserved revenue available 
  9.10  under this subdivision may only be spent for program costs 
  9.11  associated with the state-approved public alternative program.  
  9.12  Compensatory revenue must be allocated according to section 
  9.13  126C.15, subdivision 2. 
  9.14     (ii) General education revenue for a pupil in an approved 
  9.15  alternative program without an independent study component must 
  9.16  be prorated for a pupil participating for less than a full year, 
  9.17  or its equivalent.  Each school district that has a 
  9.18  state-approved public alternative program must reserve revenue 
  9.19  in an amount equal to at least 90 percent of the district 
  9.20  average general education revenue per pupil unit less 
  9.21  compensatory revenue per pupil unit times the number of pupil 
  9.22  units generated by students attending a state-approved public 
  9.23  alternative program.  The amount of reserved revenue available 
  9.24  under this subdivision may only be spent for program costs 
  9.25  associated with the state-approved public alternative program.  
  9.26  Compensatory revenue must be allocated according to section 
  9.27  126C.15, subdivision 2.  
  9.28     (iii) General education revenue for a pupil in an approved 
  9.29  alternative program that has an independent study component must 
  9.30  be paid for each hour of teacher contact time and each hour of 
  9.31  independent study time completed toward a credit or graduation 
  9.32  standards necessary for graduation.  Average daily membership 
  9.33  for a pupil shall equal the number of hours of teacher contact 
  9.34  time and independent study time divided by 1,020. 
  9.35     (iv) For an alternative program having an independent study 
  9.36  component, the commissioner shall require a description of the 
 10.1   courses in the program, the kinds of independent study involved, 
 10.2   the expected learning outcomes of the courses, and the means of 
 10.3   measuring student performance against the expected outcomes.  
 10.4      <i>(Effective Date: Section 8 (126C.05, subdivision 15) is</i> 
 10.5   <i>effective the day following final enactment for revenue for</i> 
 10.6   <i>fiscal year 2000 and later.)</i> 
 10.7      Sec. 9.  Minnesota Statutes 1998, section 126C.05, is 
 10.8   amended by adding a subdivision to read: 
 10.9      Subd. 18.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] (a) 
 10.10  When a pupil who has not passed an assessment of basic standards 
 10.11  in reading, writing, or mathematics is enrolled in a mastery of 
 10.12  basic skills summer school program that is not a part of the 
 10.13  regular school term and the student has a total enrollment time 
 10.14  of more than 1,038 hours in a school year, the pupil may be 
 10.15  counted as more than one pupil in average daily membership for 
 10.16  purposes of this subdivision only.  The amount in excess of one 
 10.17  pupil must be determined by the ratio of the number of hours of 
 10.18  instruction provided to that pupil in excess of 1,038 hours.  
 10.19  For each pupil, only the amount of summer school enrollment time 
 10.20  attributable to basic skills instruction may be used to 
 10.21  calculate the additional hours in the school year.  Basic skills 
 10.22  instruction is defined as in Minnesota's rules on graduation 
 10.23  standards and includes reading, writing, and mathematics.  Hours 
 10.24  that occur after the close of the instructional year in June are 
 10.25  attributable to the following fiscal year. 
 10.26     (b) A pupil enrolled in a school district program for whom 
 10.27  payment is made under this subdivision may be counted by the 
 10.28  district only for the computation of basic revenue, according to 
 10.29  section 126C.10, subdivision 2. 
 10.30     (c) Revenue for a pupil enrolled in a basic skills summer 
 10.31  school program offered by a cooperative unit, as defined in 
 10.32  section 123A.24, subdivision 2, equals the number of hours of 
 10.33  summer instruction actually received by the student times the 
 10.34  ratio of the basic formula allowance to 1,038. 
 10.35     (d) Nothing in this section precludes a district from using 
 10.36  area learning center funds to help students during a summer 
 11.1   school program or the regular school year to master the reading, 
 11.2   writing, or math basic skills needed to pass the state's basic 
 11.3   skills tests. 
 11.4      <i>(Effective Date: Section 9 (126C.05, subdivision 18) is</i> 
 11.5   <i>effective the day following final enactment and applies to</i> 
 11.6   <i>summer school sessions held after May 15, 1999.)</i> 
 11.7      Sec. 10.  Minnesota Statutes 1998, section 126C.10, 
 11.8   subdivision 1, is amended to read: 
 11.9      Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
 11.10  year ~~1999~~ 2000 and thereafter, the general education revenue for 
 11.11  each district equals the sum of the district's basic 
 11.12  revenue, class size reduction revenue, basic skills revenue, 
 11.13  training and experience revenue, secondary sparsity revenue, 
 11.14  elementary sparsity revenue, transportation sparsity revenue, 
 11.15  total operating capital revenue, ~~graduation standards~~ 
 11.16  ~~implementation revenue,~~ equity revenue, referendum offset 
 11.17  adjustment, transition revenue, and supplemental revenue. 
 11.18     <i>(Effective Date: Section 10 (126C.10, subdivision 1) is</i> 
 11.19  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 11.20     Sec. 11.  Minnesota Statutes 1998, section 126C.10, 
 11.21  subdivision 2, is amended to read: 
 11.22     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 11.23  district equals the formula allowance times the resident pupil 
 11.24  units for the school year.  ~~The formula allowance for fiscal~~ 
 11.25  ~~year 1997 is $3,505.~~  The formula allowance for fiscal year 1998 
 11.26  is $3,581 ~~and~~.  The formula allowance for fiscal year 1999 ~~and~~ 
 11.27  ~~fiscal year 2000~~ is $3,530.  The formula allowance for fiscal 
 11.28  year 2000 is $3,700.  The formula allowance for fiscal year 2001 
 11.29  and subsequent fiscal years is ~~$3,597~~ $3,875. 
 11.30     <i>(Effective Date: Section 11 (126C.10, subdivision 2) is</i> 
 11.31  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 11.32     Sec. 12.  Minnesota Statutes 1998, section 126C.10, 
 11.33  subdivision 3, is amended to read: 
 11.34     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] (a) The 
 11.35  compensatory education revenue for each building in the district 
 11.36  equals: 
 12.1      (1) the formula allowance times the compensation revenue 
 12.2   pupil units computed according to section 126C.05, subdivision 
 12.3   3; plus 
 12.4      (2) for a building located in a qualifying school district 
 12.5   the product of:  (i) the state average amount of compensatory 
 12.6   revenue per school district enrollee less the district's average 
 12.7   amount of compensatory revenue per school district enrollee; 
 12.8   (ii) the ratio of the district's average enrollment per building 
 12.9   less the state average enrollment per building to the state 
 12.10  average enrollment per building; (iii) the ratio of the 
 12.11  district's total number of eligible pupils to 10,000; and (iv) 
 12.12  the district's enrollment. 
 12.13     (b) For the purposes of paragraph (a), a qualifying school 
 12.14  district: 
 12.15     (1) receives less than the state average amount of 
 12.16  compensatory revenue per school district enrollee; 
 12.17     (2) enrolls more than the state average number of pupils 
 12.18  eligible for free or reduced price meals; and 
 12.19     (3) has an average building enrollment greater than the 
 12.20  state average building enrollment. 
 12.21     (c) Revenue shall be paid to the district and must be 
 12.22  allocated according to section 126C.15, subdivision 2. 
 12.23     <i>(Effective Date: Section 12 (126C.10, subdivision 3) is</i> 
 12.24  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 12.25     Sec. 13.  Minnesota Statutes 1998, section 126C.10, 
 12.26  subdivision 4, is amended to read: 
 12.27     Subd. 4.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 12.28  thereafter, a school district's basic skills revenue equals the 
 12.29  sum of: 
 12.30     (1) compensatory revenue under subdivision 3; plus 
 12.31     (2) limited English proficiency revenue according to 
 12.32  section 124D.65, subdivision 5; plus 
 12.33     (3) ~~$190~~ $375 times the limited English proficiency pupil 
 12.34  units according to section 126C.05, subdivision 17; plus 
 12.35     (4) ~~the lesser of:  (i)~~ $22.50 times the number of adjusted 
 12.36  pupil units in kindergarten to grade 8~~; or (ii) the amount of~~ 
 13.1   ~~district money provided to match basic skills revenue for the~~ 
 13.2   ~~purposes described in section 126C.15~~. 
 13.3      <i>(Effective Date: Section 13 (126C.10, subdivision 4) is</i> 
 13.4   <i>effective for revenue for fiscal year 2000 and later.)</i> 
 13.5      Sec. 14.  Minnesota Statutes 1998, section 126C.10, 
 13.6   subdivision 10, is amended to read: 
 13.7      Subd. 10.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 13.8   revenue, a district may levy an amount not more than the product 
 13.9   of its supplemental revenue for the school year times the lesser 
 13.10  of one or the ratio of its adjusted net tax capacity per 
 13.11  resident pupil unit to ~~$10,000~~ $8,404. 
 13.12     <i>(Effective Date: Section 14 (126C.10, subdivision 10) is</i> 
 13.13  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 13.14     Sec. 15.  Minnesota Statutes 1998, section 126C.10, 
 13.15  subdivision 14, is amended to read: 
 13.16     Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 13.17  operating capital revenue may be used only for the following 
 13.18  purposes: 
 13.19     (1) to acquire land for school purposes; 
 13.20     (2) to acquire or construct buildings for school purposes; 
 13.21     (3) to rent or lease buildings, including the costs of 
 13.22  building repair or improvement that are part of a lease 
 13.23  agreement; 
 13.24     (4) to improve and repair school sites and buildings, and 
 13.25  equip or reequip school buildings with permanent attached 
 13.26  fixtures; 
 13.27     (5) for a surplus school building that is used 
 13.28  substantially for a public nonschool purpose; 
 13.29     (6) to eliminate barriers or increase access to school 
 13.30  buildings by individuals with a disability; 
 13.31     (7) to bring school buildings into compliance with the 
 13.32  Uniform Fire Code adopted according to chapter 299F; 
 13.33     (8) to remove asbestos from school buildings, encapsulate 
 13.34  asbestos, or make asbestos-related repairs; 
 13.35     (9) to clean up and dispose of polychlorinated biphenyls 
 13.36  found in school buildings; 
 14.1      (10) to clean up, remove, dispose of, and make repairs 
 14.2   related to storing heating fuel or transportation fuels such as 
 14.3   alcohol, gasoline, fuel oil, and special fuel, as defined in 
 14.4   section 296A.01; 
 14.5      (11) for energy audits for school buildings and to modify 
 14.6   buildings if the audit indicates the cost of the modification 
 14.7   can be recovered within ten years; 
 14.8      (12) to improve buildings that are leased according to 
 14.9   section 123B.51, subdivision 4; 
 14.10     (13) to pay special assessments levied against school 
 14.11  property but not to pay assessments for service charges; 
 14.12     (14) to pay principal and interest on state loans for 
 14.13  energy conservation according to section 216C.37 or loans made 
 14.14  under the Northeast Minnesota Economic Protection Trust Fund Act 
 14.15  according to sections 298.292 to 298.298; 
 14.16     (15) to purchase or lease interactive telecommunications 
 14.17  equipment; 
 14.18     (16) by board resolution, to transfer money into the debt 
 14.19  redemption fund to:  (i) pay the amounts needed to meet, when 
 14.20  due, principal and interest payments on certain obligations 
 14.21  issued according to chapter 475; or (ii) pay principal and 
 14.22  interest on debt service loans or capital loans according to 
 14.23  section 126C.70; 
 14.24     (17) to pay ~~capital expenditure equipment-related~~ operating 
 14.25  capital-related assessments of any entity formed under a 
 14.26  cooperative agreement between two or more districts; 
 14.27     (18) to purchase or lease computers and related materials, 
 14.28  copying machines, telecommunications equipment, and other 
 14.29  noninstructional equipment; 
 14.30     (19) to purchase or lease assistive technology or equipment 
 14.31  for instructional programs; 
 14.32     (20) to purchase textbooks; 
 14.33     (21) to purchase new and replacement library books; 
 14.34     (22) to purchase vehicles; 
 14.35     (23) to purchase or lease telecommunications equipment, 
 14.36  computers, and related equipment for integrated information 
 15.1   management systems for: 
 15.2      (i) managing and reporting learner outcome information for 
 15.3   all students under a results-oriented graduation rule; 
 15.4      (ii) managing student assessment, services, and achievement 
 15.5   information required for students with individual education 
 15.6   plans; and 
 15.7      (iii) other classroom information management needs; and 
 15.8      (24) to pay personnel costs directly related to the 
 15.9   acquisition, operation, and maintenance of telecommunications 
 15.10  systems, computers, related equipment, and network and 
 15.11  applications software. 
 15.12     Sec. 16.  Minnesota Statutes 1998, section 126C.10, 
 15.13  subdivision 19, is amended to read: 
 15.14     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
 15.15  transportation transition allowance for fiscal year 1998 and 
 15.16  later equals the result of the following: 
 15.17     (1) if the result in subdivision 18, paragraph (a), clause 
 15.18  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 15.19  base allowance, the transportation transition allowance equals 
 15.20  the fiscal year 1996 base allowance minus the result in 
 15.21  subdivision 18, paragraph (a), clause (iii); or 
 15.22     (2) if the result in subdivision 18, paragraph (a), clause 
 15.23  (iii), for fiscal year 1998 and later is greater than or equal 
 15.24  to the fiscal year 1996 base allowance, the transportation 
 15.25  transition allowance equals zero. 
 15.26     (b) A district's compensatory transition allowance equals 
 15.27  the greater of zero or the difference between:  
 15.28     (1) the amount of compensatory revenue the district would 
 15.29  have received under Minnesota Statutes 1996, section 124A.22, 
 15.30  subdivision 3, for fiscal year 1998 computed using a basic 
 15.31  formula allowance of $3,281; and 
 15.32     (2) the amount the district receives under subdivision 3; 
 15.33  divided by 
 15.34     (3) the district's actual pupil units for fiscal year 1998. 
 15.35     (c) A district's cooperation transition allowance for 
 15.36  fiscal year 2001 and later equals the greater of zero or the 
 16.1   difference between:  
 16.2      (1) $25,000; and 
 16.3      (2) $67 times the district's resident pupil units for 
 16.4   fiscal year 2001 divided by; 
 16.5      (3) the district's resident pupil units for fiscal year 
 16.6   2001. 
 16.7      (d) A district's transition allowance for fiscal ~~year~~ years 
 16.8   1999 and 2000 is equal to the sum of its transportation 
 16.9   transition allowance and its compensatory transition allowance.  
 16.10  A district's transition allowance for fiscal year ~~2000~~ 2001 and 
 16.11  thereafter is equal to the sum of its transportation transition 
 16.12  allowance, its compensatory transition allowance, and its 
 16.13  cooperation transition allowance. 
 16.14     <i>(Effective Date: Section 16 (126C.10, subdivision 19) is</i> 
 16.15  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 16.16     Sec. 17.  Minnesota Statutes 1998, section 126C.10, 
 16.17  subdivision 21, is amended to read: 
 16.18     Subd. 21.  [TRANSITION LEVY ADJUSTMENT.] A district's 
 16.19  general education levy shall be adjusted by an amount equal to 
 16.20  the district's transition revenue times the lesser of 1 or the 
 16.21  ratio of its adjusted net tax capacity per resident pupil unit 
 16.22  to ~~$10,000~~ $8,404. 
 16.23     <i>(Effective Date: Section 17 (126C.10, subdivision 21) is</i> 
 16.24  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 16.25     Sec. 18.  Minnesota Statutes 1998, section 126C.10, is 
 16.26  amended by adding a subdivision to read: 
 16.27     Subd. 23.  [CLASS SIZE REDUCTION REVENUE.] The class size 
 16.28  reduction revenue for a district with an approved plan under 
 16.29  section 126C.12, subdivision 6, equals the sum of $125 times the 
 16.30  average daily membership in regular kindergarten plus $250 times 
 16.31  the average daily membership in grades 1 through 3. 
 16.32     Sec. 19.  Minnesota Statutes 1998, section 126C.10, is 
 16.33  amended by adding a subdivision to read: 
 16.34     Subd. 24.  [EQUITY REVENUE.] (a) A school district is 
 16.35  eligible for an equity revenue adjustment if the school 
 16.36  district's general education revenue, including referendum 
 17.1   revenue, calculated under this section and section 126C.17, is 
 17.2   in the lowest 50th percentile of pupil-weighted general 
 17.3   education revenue per pupil unit for that year. 
 17.4      (b) Equity revenue for an eligible district equals: 
 17.5      (1) for a district in the lowest tenth percentile of 
 17.6   general education revenue, $50 times the district's resident 
 17.7   pupil units; 
 17.8      (2) for a district between the tenth and 20th percentile of 
 17.9   general education revenue, $40 times the district's resident 
 17.10  pupil units; 
 17.11     (3) for a district between the 20th and 30th percentile of 
 17.12  general education revenue, $30 times the district's resident 
 17.13  pupil units; 
 17.14     (4) for a district between the 30th and 40th percentile of 
 17.15  general education revenue, $20 times the district's resident 
 17.16  pupil units; and 
 17.17     (5) for a district between the 40th and 50th percentile of 
 17.18  general education revenue, $10 times the district's resident 
 17.19  pupil units. 
 17.20     <i>(Effective Date: Section 19 (126C.10, subdivision 24) is</i> 
 17.21  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 17.22     Sec. 20.  Minnesota Statutes 1998, section 126C.10, is 
 17.23  amended by adding a subdivision to read: 
 17.24     Subd. 25.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
 17.25  qualifies for the referendum allowance reduction under section 
 17.26  126C.17, subdivision 12, and whose referendum allowance under 
 17.27  section 126C.17, subdivision 1, as adjusted under section 
 17.28  126C.17, subdivisions 2 and 12, does not exceed the referendum 
 17.29  allowance limit under section 126C.17, subdivision 2, clause 
 17.30  (2), shall receive a referendum offset adjustment.  In fiscal 
 17.31  year 2000 and thereafter, the referendum offset adjustment is 
 17.32  equal to $25 per resident pupil unit. 
 17.33     <i>(Effective Date:  Section 20 (126C.10, subdivision 25) is</i> 
 17.34  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 17.35     Sec. 21.  Minnesota Statutes 1998, section 126C.12, is 
 17.36  amended to read: 
 18.1      126C.12 [CLASS SIZE REDUCTION AND LEARNING AND DEVELOPMENT 
 18.2   REVENUE AMOUNT AND USE.] 
 18.3      Subdivision 1.  [REVENUE.] Of a district's general 
 18.4   education revenue an amount equal to the sum of (1) the class 
 18.5   size reduction revenue under section 126C.10, subdivision 23, 
 18.6   plus (2) the sum of the number of elementary fund balance pupils 
 18.7   in average daily membership defined in section 126C.05, 
 18.8   subdivision 5, and one-half of the number of kindergarten fund 
 18.9   balance pupils in average daily membership as defined in section 
 18.10  126C.05, subdivision 5, times .06 for fiscal year 1995 and 
 18.11  thereafter times the formula allowance must be reserved 
 18.12  according to this section. 
 18.13     Subd. 2.  [~~INSTRUCTOR DEFINED~~ DEFINITIONS.] ~~Primary~~ 
 18.14  ~~instructor~~ (a) "Classroom teacher" means a public employee 
 18.15  licensed by the board of teaching to provide direct instruction 
 18.16  to children in kindergarten through grade 6 and whose duties are 
 18.17  ~~full-time~~ classroom instruction~~, excluding a teacher for whom~~ 
 18.18  ~~categorical aids are received pursuant to sections 125A.76 and~~ 
 18.19  ~~125A.77.  Except as provided in section 122A.68, subdivision 6,~~ 
 18.20  ~~instructor does not include supervisory and support personnel,~~ 
 18.21  ~~except school social workers as defined in section 122A.15.  An~~ 
 18.22  ~~instructor~~.  A classroom teacher whose duties are less than 
 18.23  full-time instruction must be included as an equivalent only for 
 18.24  the number of hours of instruction in ~~grades~~ kindergarten 
 18.25  through ~~6~~ grade 3.  
 18.26     (b) "Class size" means the district-wide ratio of:  (1) the 
 18.27  number of full-time students in kindergarten through grade 3 
 18.28  receiving instruction in the core subjects of reading and 
 18.29  mathematics at least 40 percent of the time in classrooms to (2) 
 18.30  the number of full-time equivalent classroom teachers in 
 18.31  kindergarten through grade 3, determined as of October 1. 
 18.32     Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
 18.33  provided by a ~~primary instructor,~~ classroom teacher or by a team 
 18.34  of ~~instructors, or by teacher resident supervised by a primary~~ 
 18.35  ~~instructor~~ classroom teachers.  The district must 
 18.36  maximize ~~instructor~~ classroom teacher to ~~learner~~ student average 
 19.1   instructional contact time in the core subjects of reading and 
 19.2   mathematics. 
 19.3      Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 19.4   to either paragraph (b) or (c). 
 19.5      (b) Revenue must be used to reduce and maintain the 
 19.6   district's ~~instructor to learner ratios~~ average class size in 
 19.7   kindergarten through grade ~~6~~ 3 to a level of 1 to 17 on 
 19.8   average.  ~~The district must prioritize the use of the revenue to~~ 
 19.9   ~~attain this level initially in kindergarten and grade 1 and then~~ 
 19.10  ~~through the subsequent grades as revenue is available.~~  
 19.11     (c) The revenue may be used to prepare and use an 
 19.12  individualized learning plan for each ~~learner~~ student.  A 
 19.13  district must not increase the ~~district wide~~ 
 19.14  ~~instructor-to-learner ratios~~ district-wide class sizes in other 
 19.15  grades as a result of reducing ~~instructor-to-learner ratios~~ 
 19.16  class sizes in kindergarten through grade ~~6~~ 3.  Revenue may not 
 19.17  be used to provide instructor preparation time ~~or to provide the~~ 
 19.18  ~~district's share of revenue required under section 124D.67~~.  A 
 19.19  district may use a portion of the revenue reserved under this 
 19.20  section to employ up to the same number of full-time equivalent 
 19.21  education assistants or aides ~~as the district employed during~~ 
 19.22  ~~the 1992-1993 school year under Minnesota Statutes 1992, section~~ 
 19.23  ~~124.331, subdivision 2~~, or instructors who do not meet the 
 19.24  definition of a classroom teacher under subdivision 2 as the 
 19.25  district employed during the 1998-1999 school year under this 
 19.26  section. 
 19.27     Subd. 5.  [ADDITIONAL REVENUE USE.] If the board of a 
 19.28  district determines that the district has achieved and is 
 19.29  maintaining the ~~instructor-to-learner ratios~~ class sizes 
 19.30  specified in subdivision 4 and is using individualized learning 
 19.31  plans, the board may use the revenue to reduce class sizes in 
 19.32  grades 4 through 6, provide full-day kindergarten, employ 
 19.33  additional education assistants or aides, improve program 
 19.34  offerings, purchase instructional material ~~and~~, services, or 
 19.35  technology, provide staff development needed for 
 19.36  reduced ~~instructor-to-learner ratios. If additional revenue~~ 
 20.1   ~~remains, the district must use the revenue to improve program~~ 
 20.2   ~~offerings, including programs provided through interactive~~ 
 20.3   ~~television, throughout the district or other general education~~ 
 20.4   ~~purposes~~ class sizes, or for other strategies to improve student 
 20.5   achievement, according to the district's plan approved under 
 20.6   subdivision 6. 
 20.7      Subd. 6.  [APPROVED PLAN.] (a) A district is eligible for 
 20.8   class size reduction revenue under section 126C.10, subdivision 
 20.9   23, if the school board adopts a biennial class size reduction, 
 20.10  learning and development plan that the commissioner approves. 
 20.11     (b) The plan must include the following: 
 20.12     (1) the actual class size as defined in subdivision 2, 
 20.13  paragraph (b), for kindergarten through grade 3 for fiscal year 
 20.14  1999; 
 20.15     (2) the number of additional classroom teachers to be 
 20.16  employed each year of the biennium to reduce class size below 
 20.17  the fiscal year 1999 level; 
 20.18     (3) the proposed class size for kindergarten through grade 
 20.19  3 for each year of the biennium; 
 20.20     (4) the school board policy on class size for kindergarten 
 20.21  through grade 3; and 
 20.22     (5) a description of how the district will provide a class 
 20.23  size of 17 or lower for reading and mathematics instruction in 
 20.24  kindergarten through grade 3.  The plan must also include a 
 20.25  budget summary for the class size reduction and learning and 
 20.26  development revenue in the format prescribed by the commissioner 
 20.27  in consultation with districts, and a statement assuring that 
 20.28  expenditures under the plan will supplement, not supplant, 
 20.29  programs provided by the district during fiscal year 1999, that 
 20.30  use other revenue sources. 
 20.31     (c) The first priority for using class size reduction 
 20.32  revenue must be to reduce the district average class size from 
 20.33  the district's fiscal year 1999 level to 17 to 1 for 
 20.34  kindergarten through grade 3 beginning in the core subjects of 
 20.35  reading and mathematics.  If the district faces classroom space 
 20.36  constraints, the local school board must consider all available 
 21.1   options for increasing the amount of classroom space available 
 21.2   for kindergarten through grade 3, including reallocating 
 21.3   existing space by changing grade levels assigned to school 
 21.4   buildings, and increasing overall space through building leases, 
 21.5   additions, or new construction. 
 21.6      (d) If the district is unable to achieve an average class 
 21.7   size ratio of 17 to 1 in kindergarten through grade 3, or the 
 21.8   district is able to achieve an average class size ratio of 17 to 
 21.9   1 in kindergarten through grade 3, for reading and mathematics 
 21.10  instruction only, then to remain eligible for class size 
 21.11  reduction revenue the local school board must submit an amended 
 21.12  plan consistent with the requirements of this paragraph and 
 21.13  paragraph (b) focusing on school and student improvement using 
 21.14  reading and mathematics instruction that includes proven 
 21.15  instructional practices, flexible staffing patterns, or small 
 21.16  group learning.  The amended plan must include district review 
 21.17  of student progress over time. 
 21.18     (e) A district's biennial class size reduction, learning 
 21.19  development plan must be submitted to the commissioner by August 
 21.20  15 of each odd-numbered year. 
 21.21     Subd. 7.  [ANNUAL REPORT.] By August 15 each year, a 
 21.22  district receiving class size reduction revenue must submit a 
 21.23  report to the commissioner in the manner prescribed by the 
 21.24  commissioner in consultation with districts.  The report must 
 21.25  include the district's class size as defined in subdivision 2, 
 21.26  paragraph (b), for kindergarten through grade 3 and a summary of 
 21.27  the district's actual expenditures by program component for the 
 21.28  preceding fiscal year.  In the district's report required under 
 21.29  section 120B.11, subdivision 5, districts receiving revenue 
 21.30  under this section shall include data measuring the impact of 
 21.31  class size reduction on student achievement.  A district that 
 21.32  succeeds in reducing its average class size in kindergarten 
 21.33  through grade 3 to a level of 1 to 17 on average must include 
 21.34  strategies for improving student achievement and reviewing 
 21.35  student progress in subsequent biennial class size reduction, 
 21.36  learning, and development plans. 
 22.1      <i>(Effective Date:  Section 21 (126C.12) is effective for</i> 
 22.2   <i>revenue for fiscal year 2000 and later.)</i> 
 22.3      Sec. 22.  Minnesota Statutes 1998, section 126C.13, 
 22.4   subdivision 1, is amended to read: 
 22.5      Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 22.6   commissioner must establish the general education tax rate by 
 22.7   July 1 of each year for levies payable in the following year.  
 22.8   The general education tax capacity rate must be a rate, rounded 
 22.9   up to the nearest hundredth of a percent, that, when applied to 
 22.10  the adjusted net tax capacity for all districts, raises the 
 22.11  amount specified in this subdivision.  The general education tax 
 22.12  rate must be the rate that raises ~~$1,385,500,000 for fiscal year~~ 
 22.13  ~~1999, $1,325,500,000 for fiscal year 2000, and $1,387,100,000~~ 
 22.14  $1,330,000,000 for fiscal year 2001, and later fiscal years.  
 22.15  The general education tax rate may not be changed due to changes 
 22.16  or corrections made to a district's adjusted net tax capacity 
 22.17  after the tax rate has been established.  ~~If the levy target for~~ 
 22.18  ~~fiscal year 1999 or fiscal year 2000 is changed by another law~~ 
 22.19  ~~enacted during the 1997 or 1998 session, the commissioner shall~~ 
 22.20  ~~reduce the general education levy target in this section by the~~ 
 22.21  ~~amount of the reduction in the enacted law.~~ 
 22.22     <i>(Effective Date: Section 22 (126C.13, subdivision 1) is</i> 
 22.23  <i>effective for taxes payable in 2000 and later.)</i> 
 22.24     Sec. 23.  Minnesota Statutes 1998, section 126C.13, 
 22.25  subdivision 2, is amended to read: 
 22.26     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 22.27  education revenue, excluding transition revenue and supplemental 
 22.28  revenue, a district may levy an amount not to exceed the general 
 22.29  education tax rate times the adjusted net tax capacity of the 
 22.30  district for the preceding year.  If the amount of the general 
 22.31  education levy would exceed the general education revenue, 
 22.32  excluding transition revenue and supplemental revenue, the 
 22.33  general education levy must be determined according to 
 22.34  subdivision 3.  
 22.35     Sec. 24.  Minnesota Statutes 1998, section 126C.15, is 
 22.36  amended to read: 
 23.1      126C.15 [~~COMPENSATORY EDUCATION~~ BASIC SKILLS REVENUE.] 
 23.2      Subdivision 1.  [USE OF THE REVENUE.] The ~~compensatory~~ 
 23.3   ~~education~~ basic skills revenue under section 126C.10, 
 23.4   subdivision ~~3~~ 4, and the portion of the transition revenue 
 23.5   adjustment under section 126C.10, subdivision 20, attributable 
 23.6   to the compensatory transition allowance under section 126C.10, 
 23.7   subdivision 19, paragraph (b), must be reserved and used to meet 
 23.8   the educational needs of pupils who enroll under-prepared to 
 23.9   learn and whose progress toward meeting state or local content 
 23.10  or performance standards is below the level that is appropriate 
 23.11  for learners of their age.  Any of the following may be provided 
 23.12  to meet these learners' needs: 
 23.13     (1) direct instructional services under the assurance of 
 23.14  mastery program according to section 124D.66; 
 23.15     (2) remedial instruction in reading, language arts, 
 23.16  mathematics, other content areas, or study skills to improve the 
 23.17  achievement level of these learners; 
 23.18     (3) additional teachers and teacher aides to provide more 
 23.19  individualized instruction to these learners through individual 
 23.20  tutoring, lower instructor-to-learner ratios, or team teaching; 
 23.21     (4) a longer school day or week during the regular school 
 23.22  year or through a summer program that may be offered directly by 
 23.23  the site or under a performance-based contract with a 
 23.24  community-based organization; 
 23.25     (5) comprehensive and ongoing staff development consistent 
 23.26  with district and site plans according to section 122A.60, for 
 23.27  teachers, teacher aides, principals, and other personnel to 
 23.28  improve their ability to identify the needs of these learners 
 23.29  and provide appropriate remediation, intervention, 
 23.30  accommodations, or modifications; 
 23.31     (6) instructional materials and technology appropriate for 
 23.32  meeting the individual needs of these learners; 
 23.33     (7) programs to reduce truancy, encourage completion of 
 23.34  high school, enhance self-concept, provide health services, 
 23.35  provide nutrition services, provide a safe and secure learning 
 23.36  environment, provide coordination for pupils receiving services 
 24.1   from other governmental agencies, provide psychological services 
 24.2   to determine the level of social, emotional, cognitive, and 
 24.3   intellectual development, and provide counseling services, 
 24.4   guidance services, and social work services; 
 24.5      (8) bilingual programs, bicultural programs, and programs 
 24.6   for learners of limited English proficiency; 
 24.7      (9) all day kindergarten; 
 24.8      (10) extended school day and extended school year programs; 
 24.9      (11) substantial parent involvement in developing and 
 24.10  implementing remedial education or intervention plans for a 
 24.11  learner, including learning contracts between the school, the 
 24.12  learner, and the parent that establish achievement goals and 
 24.13  responsibilities of the learner and the learner's parent or 
 24.14  guardian; and 
 24.15     (12) other methods to increase achievement, as needed.  
 24.16     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 24.17  allocate its compensatory revenue to each school building in the 
 24.18  district where the children who have generated the revenue are 
 24.19  served. 
 24.20     (b) Notwithstanding paragraph (a), ~~for fiscal years 1999~~ 
 24.21  ~~and 2000,~~ upon approval by the commissioner, a district may 
 24.22  allocate up to five percent of the amount of compensatory 
 24.23  revenue that the district would have received under Minnesota 
 24.24  Statutes 1996, section ~~126C.10~~ 124A.22, subdivision 3, for 
 24.25  fiscal year 1998, computed using a basic formula allowance of 
 24.26  $3,581 to school sites according to a plan adopted by the school 
 24.27  board. 
 24.28     (c) For the purposes of this section and section 126C.05, 
 24.29  subdivision 3, "building" means education site as defined in 
 24.30  section 123B.04, subdivision 1. 
 24.31     (d) If the pupil is served at a site other than one owned 
 24.32  and operated by the district, the revenue shall be paid to the 
 24.33  district and used for services for pupils who generate the 
 24.34  revenue. 
 24.35     Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 24.36  team, as defined in section 123B.04, subdivision 3, paragraph 
 25.1   (a), or the instruction and curriculum advisory committee under 
 25.2   section 120B.11, if the school has no school site decision team, 
 25.3   shall recommend how the compensatory education revenue will be 
 25.4   used to carry out the purpose of this section. 
 25.5      Subd. 4.  [SEPARATE ACCOUNTS.] Each district that 
 25.6   receives ~~compensatory education~~ basic skills revenue shall 
 25.7   maintain separate accounts to identify expenditures for salaries 
 25.8   and programs related to basic skills revenue. 
 25.9      Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 25.10  that receives ~~compensatory education~~ basic skills revenue must 
 25.11  submit a report identifying the expenditures it incurred to meet 
 25.12  the needs of eligible learners under subdivision 1.  The report 
 25.13  must conform to uniform financial and reporting standards 
 25.14  established for this purpose. 
 25.15     <i>(Effective Date: Section 24 (126C.15) is effective for</i> 
 25.16  <i>revenue for fiscal year 2000 and later.)</i> 
 25.17     Sec. 25.  Minnesota Statutes 1998, section 126C.17, 
 25.18  subdivision 2, is amended to read: 
 25.19     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 25.20  subdivision 1, a district's referendum allowance must not exceed 
 25.21  the greater of:  
 25.22     (1) the district's referendum allowance for fiscal year 
 25.23  1994; 
 25.24     (2) 25 percent of the formula allowance ~~minus $300 for~~ 
 25.25  ~~fiscal year 1997 and later~~; or 
 25.26     (3) for a newly reorganized district created after July 1, 
 25.27  1994, the sum of the referendum revenue authority for the 
 25.28  reorganizing districts for the fiscal year preceding the 
 25.29  reorganization, divided by the sum of the resident pupil units 
 25.30  of the reorganizing districts for the fiscal year preceding the 
 25.31  reorganization. 
 25.32     <i>(Effective Date: Section 25 (126C.17, subdivision 2) is</i> 
 25.33  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 25.34     Sec. 26.  Minnesota Statutes 1998, section 126C.17, 
 25.35  subdivision 5, is amended to read: 
 25.36     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
 26.1   district's referendum equalization revenue equals ~~$350~~ the 
 26.2   referendum equalization allowance times the district's resident 
 26.3   pupil units for that year.  
 26.4      (b) The referendum equalization allowance equals $350 for 
 26.5   fiscal year 2000, $415 for fiscal year 2001, $455 for fiscal 
 26.6   year 2002, and $465 for fiscal year 2003 and later. 
 26.7      (c) Referendum equalization revenue must not exceed a 
 26.8   district's total referendum revenue for that year. 
 26.9      <i>(Effective Date: Section 26 (126C.17, subdivision 5) is</i> 
 26.10  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 26.11     Sec. 27.  Minnesota Statutes 1998, section 126C.17, 
 26.12  subdivision 6, is amended to read: 
 26.13     Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) ~~For fiscal~~ 
 26.14  ~~year 1999 and thereafter,~~ A district's referendum equalization 
 26.15  levy for a referendum levied against the referendum market value 
 26.16  of all taxable property as defined in section 126C.01, 
 26.17  subdivision 3, equals the district's referendum equalization 
 26.18  revenue times the lesser of one or the ratio of the district's 
 26.19  referendum market value per resident pupil unit to $476,000. 
 26.20     (b) ~~For fiscal year 1999 and thereafter,~~ A district's 
 26.21  referendum equalization levy for a referendum levied against the 
 26.22  net tax capacity of all taxable property equals the district's 
 26.23  referendum equalization revenue times the lesser of one or the 
 26.24  ratio of the district's adjusted net tax capacity per resident 
 26.25  pupil unit to ~~$10,000~~ $8,404. 
 26.26     <i>(Effective Date: Section 27 (126C.17, subdivision 6) is</i> 
 26.27  <i>effective for revenue for fiscal year 2000 and later.)</i> 
 26.28     Sec. 28.  Minnesota Statutes 1998, section 127A.44, 
 26.29  subdivision 2, is amended to read: 
 26.30     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
 26.31  subdivision 1 shall be used to adjust the following state aids 
 26.32  and credits in the order listed: 
 26.33     (1) general education aid authorized in section 126C.13; 
 26.34     (2) secondary vocational aid authorized in section 
 26.35  124D.453; 
 26.36     (3) special education aid authorized in sections 125A.75 
 27.1   and 125A.76; 
 27.2      (4) ~~school-to-work~~ career and technical program aid for 
 27.3   children with a disability authorized in section 124D.454; 
 27.4      (5) ~~aid for pupils of limited English proficiency~~ 
 27.5   ~~authorized in section 124D.65;~~ 
 27.6      ~~(6)~~ transportation aid authorized in section 123B.92; 
 27.7      ~~(7)~~ (6) community education programs aid authorized in 
 27.8   section 124D.20; 
 27.9      ~~(8)~~ (7) adult education aid authorized in section 124D.52; 
 27.10     ~~(9)~~ (8) early childhood family education aid authorized in 
 27.11  section 124D.135; 
 27.12     ~~(10)~~ (9) capital expenditure aid authorized in section 
 27.13  123B.57; 
 27.14     ~~(11)~~ (10) school district cooperation aid authorized in 
 27.15  section 126C.22; 
 27.16     ~~(12) assurance of mastery aid according to section 124D.67;~~ 
 27.17     ~~(13)~~ (11) homestead and agricultural credit aid, disparity 
 27.18  credit and aid, and changes to credits for prior year 
 27.19  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
 27.20  and 7; 
 27.21     ~~(14)~~ (12) attached machinery aid authorized in section 
 27.22  273.138, subdivision 3; 
 27.23     ~~(15) alternative delivery aid authorized in section~~ 
 27.24  ~~125A.78;~~ 
 27.25     ~~(16) special education equalization aid authorized in~~ 
 27.26  ~~section 125A.77;~~ 
 27.27     ~~(17)~~ (13) special education excess cost aid authorized in 
 27.28  section 125A.79; and 
 27.29     ~~(18)~~ (14) learning readiness aid authorized in section 
 27.30  124D.16~~; and~~ 
 27.31     ~~(19) cooperation combination aid authorized in section~~ 
 27.32  ~~123A.39, subdivision 3~~. 
 27.33     (b) The commissioner shall schedule the timing of the 
 27.34  adjustments to state aids and credits specified in subdivision 
 27.35  1, as close to the end of the fiscal year as possible. 
 27.36     Sec. 29.  Minnesota Statutes 1998, section 127A.47, 
 28.1   subdivision 7, is amended to read: 
 28.2      Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 28.3   education aid for districts must be adjusted for each pupil 
 28.4   attending a nonresident district under sections 123A.05 to 
 28.5   123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
 28.6   adjustments must be made according to this subdivision. 
 28.7      (a) General education aid paid to a resident district must 
 28.8   be reduced by an amount equal to the general education revenue 
 28.9   exclusive of basic skills revenue attributable to the pupil in 
 28.10  the resident district. 
 28.11     (b) General education aid paid to a district serving a 
 28.12  pupil in programs listed in this subdivision must be increased 
 28.13  by an amount equal to the general education revenue exclusive of 
 28.14  basic skills revenue attributable to the pupil in the 
 28.15  nonresident district.  
 28.16     (c) If the amount of the reduction to be made from the 
 28.17  general education aid of the resident district is greater than 
 28.18  the amount of general education aid otherwise due the district, 
 28.19  the excess reduction must be made from other state aids due the 
 28.20  district. 
 28.21     (d) The district of residence must pay tuition to a 
 28.22  district or an area learning center, operated according to 
 28.23  paragraph (e), providing special instruction and services to a 
 28.24  pupil with a disability, as defined in section 125A.02, or a 
 28.25  pupil, as defined in section 125A.51, who is enrolled in a 
 28.26  program listed in this subdivision.  The tuition must be equal 
 28.27  to (1) the actual cost of providing special instruction and 
 28.28  services to the pupil, including a proportionate amount for debt 
 28.29  service and for capital expenditure facilities and equipment, 
 28.30  and debt service but not including any amount for 
 28.31  transportation, minus (2) the amount of general education 
 28.32  ~~aid~~ revenue and special education aid but not including any 
 28.33  amount for transportation, attributable to that pupil, that is 
 28.34  received by the district providing special instruction and 
 28.35  services. 
 28.36     (e) An area learning center operated by a service 
 29.1   cooperative, intermediate district, education district, or a 
 29.2   joint powers cooperative may elect through the action of the 
 29.3   constituent boards to charge tuition for pupils rather than to 
 29.4   calculate general education aid adjustments under paragraph (a), 
 29.5   (b), or (c).  The tuition must be equal to the greater of the 
 29.6   average general education revenue per pupil unit attributable to 
 29.7   the pupil, or the actual cost of providing the instruction, 
 29.8   excluding transportation costs, if the pupil meets the 
 29.9   requirements of section 125A.02 or 125A.51. 
 29.10     Sec. 30.  Laws 1996, chapter 412, article 1, section 35, is 
 29.11  amended to read: 
 29.12     Sec. 35.  [REPEALER.] 
 29.13     Laws 1993, chapter 224, article 1, section 34, subdivision 
 29.14  1, is repealed.  ~~Section 8 is repealed July 1, 1999.~~ 
 29.15     <i>(Effective Date: Section 30 (Laws 1996, chapter 412,</i> 
 29.16  <i>article 1, section 35) is effective the day following final</i> 
 29.17  <i>enactment.)</i> 
 29.18     Sec. 31.  Laws 1997, First Special Session chapter 4, 
 29.19  article 1, section 61, subdivision 1, is amended to read: 
 29.20     Subdivision 1.  [REVENUE CONVERSION.] For taxes payable in 
 29.21  1998 and 1999, the commissioner of children, families, and 
 29.22  learning shall adjust each school district's revenue authority 
 29.23  that is established as a rate times net tax capacity or adjusted 
 29.24  net tax capacity under Minnesota Statutes, chapters ~~124 and 124A~~ 
 29.25  120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 29.26  multiplying each revenue amount by the ratio of the statewide 
 29.27  tax capacity as calculated using the class rates in effect for 
 29.28  assessment year 1996 to the statewide tax capacity using the 
 29.29  class rates for that assessment year.  Tax rates for referendum 
 29.30  revenues according to Minnesota Statutes, section 126C.17, and 
 29.31  operating debt levies according to Minnesota Statutes, section 
 29.32  126C.42, established for an individual district under this 
 29.33  subdivision for taxes payable in 1999 shall remain in effect for 
 29.34  later years for which the revenue is authorized to be computed 
 29.35  as a rate times net tax capacity or adjusted net tax capacity. 
 29.36     <i>(Effective Date: Section 31 (Laws 1997, First Special</i> 
 30.1   <i>Session chapter 4, article 1, section 61, subdivision 1) is</i> 
 30.2   <i>effective the day following final enactment.)</i> 
 30.3      Sec. 32.  Laws 1997, First Special Session chapter 4, 
 30.4   article 1, section 61, subdivision 2, is amended to read: 
 30.5      Subd. 2.  [TAX RATE ADJUSTMENT.] For taxes payable in 1998 
 30.6   and 1999, the commissioner shall adjust each tax rate 
 30.7   established under Minnesota Statutes, chapters ~~124 and 124A~~ 
 30.8   120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
 30.9   multiplying the rate by the ratio of the statewide tax capacity 
 30.10  as calculated using the class rates in effect for assessment 
 30.11  year 1996 to the statewide tax capacity using the class rates 
 30.12  for that assessment year. 
 30.13     <i>(Effective Date: Section 32 (Laws 1997, First Special</i> 
 30.14  <i>Session chapter 4, article 1, section 61, subdivision 2) is</i> 
 30.15  <i>effective the day following final enactment.)</i> 
 30.16     Sec. 33.  Laws 1997, First Special Session chapter 4, 
 30.17  article 1, section 61, subdivision 3, as amended by Laws 1998, 
 30.18  chapter 398, article 1, section 41, is amended to read: 
 30.19     Subd. 3.  [EQUALIZING FACTORS.] For taxes payable in 1998 
 30.20  and 1999, the commissioner shall adjust each equalizing factor 
 30.21  established using adjusted net tax capacity per actual pupil 
 30.22  unit under Minnesota Statutes, chapters ~~124 and 124A~~ 120B, 122A, 
 30.23  123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 
 30.24  equalizing factor by the ratio of the statewide tax capacity as 
 30.25  calculated using the class rates in effect for assessment year 
 30.26  1996 to the statewide tax capacity using the class rates for 
 30.27  that assessment year. 
 30.28     <i>(Effective Date: Section 33 (Laws 1997, First Special</i> 
 30.29  <i>Session chapter 4, article 1, section 61, subdivision 3) is</i> 
 30.30  <i>effective the day following final enactment.)</i> 
 30.31     Sec. 34.  Laws 1997, First Special Session chapter 4, 
 30.32  article 1, section 61, subdivision 4, is amended to read: 
 30.33     Subd. 4.  [QUALIFYING RATE.] For taxes payable in 1998 and 
 30.34  1999, the commissioner shall adjust the qualifying rate under 
 30.35  Minnesota Statutes, section 124.95, subdivision 3, by 
 30.36  multiplying the qualifying rate times the ratio of the statewide 
 31.1   tax capacity, as calculated using the class rates in effect for 
 31.2   assessment year 1996, to the statewide tax capacity using the 
 31.3   class rates for that assessment year. 
 31.4      <i>(Effective Date: Section 34 (Laws 1997, First Special</i> 
 31.5   <i>Session chapter 4, article 1, section 61, subdivision 4) is</i> 
 31.6   <i>effective the day following final enactment.)</i> 
 31.7      Sec. 35.  Laws 1998, chapter 397, article 12, section 8, is 
 31.8   amended to read: 
 31.9      Sec. 8.  [FORMULA ALLOWANCE.] 
 31.10     For fiscal ~~year 2000~~ years 2001 and later, the basic 
 31.11  formula allowance under Minnesota Statutes, section 124A.22, 
 31.12  subdivision 2, is ~~increased by $67~~ $3,597 per ~~actual~~ resident 
 31.13  pupil unit for purposes of calculating compensatory revenue ~~and~~ 
 31.14  ~~sparsity revenue~~ under Minnesota Statutes, section ~~124A.22~~ 
 31.15  126C.10. 
 31.16     <i>(Effective Date: Section 35 (Laws 1998, chapter 397,</i> 
 31.17  <i>article 12, section 8) is effective for revenue for fiscal year</i> 
 31.18  <i>2000 and later.)</i> 
 31.19     Sec. 36.  [FUND TRANSFERS.] 
 31.20     Subdivision 1.  [MONTICELLO.] Notwithstanding Minnesota 
 31.21  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 31.22  on June 30, 1999, independent school district No. 882, 
 31.23  Monticello, may permanently transfer up to $400,000 from its 
 31.24  debt redemption fund to its general fund. 
 31.25     Subd. 2.  [WHITE BEAR LAKE.] Notwithstanding Minnesota 
 31.26  Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 31.27  on June 30, 1999, independent school district No. 624, White 
 31.28  Bear Lake, may permanently transfer up to $400,000 from its debt 
 31.29  redemption fund to its general fund. 
 31.30     Subd. 3.  [OKLEE.] Notwithstanding Minnesota Statutes, 
 31.31  section 123B.53, on June 30, 1999, independent school district 
 31.32  No. 627, Oklee, may permanently transfer $44,300 from its debt 
 31.33  service fund to its general fund. 
 31.34     Subd. 4.  [DEER RIVER.] Notwithstanding Minnesota Statutes, 
 31.35  sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
 31.36  30, 1999, independent school district No. 317, Deer River, may 
 32.1   permanently transfer up to $315,000 from the debt redemption 
 32.2   fund to its building construction fund without making a levy 
 32.3   reduction. 
 32.4      <i>(Effective Date:  Section 36 is effective the day following</i> 
 32.5   <i>final enactment.)</i> 
 32.6      Sec. 37.  [APPROPRIATIONS.] 
 32.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 32.8   LEARNING.] The sums indicated in this section are appropriated 
 32.9   from the general fund to the department of children, families, 
 32.10  and learning for the fiscal years designated.  
 32.11     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 32.12  general and supplemental education aid:  
 32.13   $3,023,263,000     .....     2000
 32.14   $3,147,732,000     .....     2001
 32.15     The 2000 appropriation includes $272,186,000 for 1999 and 
 32.16  $2,751,077,000 for 2000.  
 32.17     The 2001 appropriation includes $295,242,000 for 2000 and 
 32.18  $2,852,490,000 for 2001.  
 32.19     Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 32.20  transportation safety aid according to Minnesota Statutes, 
 32.21  section 123B.92, subdivision 4: 
 32.22       $144,000       .....     2000 
 32.23     The 2000 appropriation includes $144,000 for 1999.  
 32.24     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 32.25  transportation of pupils attending post-secondary institutions 
 32.26  according to Minnesota Statutes, section 124D.09, or for 
 32.27  transportation of pupils attending nonresident districts 
 32.28  according to Minnesota Statutes, section 124D.03: 
 32.29       $102,000       .....     2000
 32.30       $102,000       .....     2001
 32.31     Any balance in the first year does not cancel but is 
 32.32  available in the second year. 
 32.33     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
 32.34  cooperation revenue aid: 
 32.35       $5,537,000     .....     2000
 32.36       $  518,000     .....     2001
 33.1      The 2000 appropriation includes $869,000 for 1999 and 
 33.2   $4,668,000 for 2000. 
 33.3      The 2001 appropriation includes $518,000 for 2000 and $0 
 33.4   for 2001. 
 33.5      Sec. 38.  [REVISOR INSTRUCTION.] 
 33.6      In the next and subsequent editions of Minnesota Statutes, 
 33.7   the revisor shall change all references to "compensatory 
 33.8   revenue" to "compensatory remedial revenue." 
 33.9      Sec. 39.  [REPEALER.] 
 33.10     (a) Minnesota Statutes 1998, sections 123B.92, subdivisions 
 33.11  2, 6, 7, 8, and 10; 124D.67; 126C.05, subdivision 4; and 
 33.12  126C.06, are repealed.  Laws 1997, First Special Session chapter 
 33.13  4, article 1, section 62, subdivision 5, is repealed. 
 33.14     (b) Minnesota Statutes 1998, section 123B.92, subdivision 
 33.15  4, is repealed effective for revenue for fiscal year 2000. 
 33.16     (c) Minnesota Statutes 1998, section 120B.05, is repealed 
 33.17  effective for revenue for fiscal year 2000 and later. 
 33.18     (d) Minnesota Statutes 1998, section 123B.05, is repealed. 
 33.19     Sec. 40.  [EFFECTIVE DATES.] 
 33.20     When preparing the prekindergarten through grade 12 
 33.21  education conference committee report for adoption by the 
 33.22  legislature, the revisor shall combine all effective date 
 33.23  notations in this article into this effective dates section. 
 33.24                             ARTICLE 2
 33.25                          SPECIAL PROGRAMS
 33.26     Section 1.  Minnesota Statutes 1998, section 121A.23, is 
 33.27  amended to read: 
 33.28     121A.23 [HEALTH-RELATED PROGRAMS.] 
 33.29     Subdivision 1.  [AIDS, HPV, and STD PROGRAM.] The 
 33.30  commissioner of children, families, and learning, in 
 33.31  consultation with the commissioner of health, ~~shall~~ may assist 
 33.32  districts in developing and implementing a program to prevent 
 33.33  and reduce the risk of acquired immune deficiency 
 33.34  syndrome (AIDS), human papilloma virus (HPV), and sexually 
 33.35  transmitted disease (STD).  Each district must have a program 
 33.36  that includes at least: 
 34.1      (1) planning materials, guidelines, and other technically 
 34.2   accurate and updated information; 
 34.3      (2) a comprehensive, technically accurate, and updated 
 34.4   curriculum that only includes helping students to abstain from 
 34.5   sexual activity until marriage; 
 34.6      (3) cooperation and coordination among districts and SCs; 
 34.7      (4) a targeting of adolescents, ~~especially those~~ who may be 
 34.8   at high risk of contracting AIDS, HPV, and STD, for prevention 
 34.9   efforts; 
 34.10     (5) involvement of parents and other community members; 
 34.11     (6) in-service training for appropriate district staff and 
 34.12  school board members; 
 34.13     (7) collaboration with state agencies and organizations 
 34.14  having an AIDS, HPV, or STD prevention or AIDS, HPV, or STD risk 
 34.15  reduction program; 
 34.16     (8) collaboration with local community health services, 
 34.17  agencies and organizations having an AIDS, HPV, or STD 
 34.18  prevention or AIDS, HPV, or STD risk reduction program; and 
 34.19     (9) participation by state and local student organizations. 
 34.20     The department may provide assistance at a neutral site to 
 34.21  a nonpublic school participating in a district's program.  
 34.22  District programs must not conflict with the health and wellness 
 34.23  curriculum developed under Laws 1987, chapter 398, article 5, 
 34.24  section 2, subdivision 7. 
 34.25     If a district fails to develop and implement a program to 
 34.26  prevent and reduce the risk of AIDS, HPV, or STD, the department 
 34.27  ~~must~~ may assist the service cooperative in the region serving 
 34.28  that district to develop or implement the program.  A 
 34.29  district-sponsored community education program may satisfy the 
 34.30  requirements of this subdivision. 
 34.31     Subd. 2.  [FUNDING SOURCES.] Districts may accept funds for 
 34.32  AIDS, HPV, or STD programs developed and implemented under this 
 34.33  section from public and private sources including public health 
 34.34  funds and foundations, department professional development 
 34.35  funds, federal block grants or other federal or state grants. 
 34.36     Sec. 2.  Minnesota Statutes 1998, section 122A.28, is 
 35.1   amended to read: 
 35.2      122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 
 35.3   LICENSURE REQUIREMENTS.] 
 35.4      Subdivision 1.  [K-12 LICENSE TO TEACH DEAF AND 
 35.5   HARD-OF-HEARING STUDENTS.] The board of teaching must review and 
 35.6   determine appropriate licensure requirements for a candidate for 
 35.7   a license or an applicant for a continuing license to teach deaf 
 35.8   and hard-of-hearing students in prekindergarten through grade 12.
 35.9   In addition to other requirements, a candidate must demonstrate 
 35.10  the minimum level of proficiency in American sign language as 
 35.11  determined by the board.  
 35.12     Subd. 2.  [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 
 35.13  PROGRAMS.] (a) The board of teaching shall adopt a separate 
 35.14  licensure rule for a candidate for a license or an applicant for 
 35.15  programs or to provide services, including itinerant oral/aural 
 35.16  deaf education services, to deaf and hard-of-hearing students in 
 35.17  prekindergarten through grade 12. 
 35.18     (b) The board shall design rule requirements for teaching 
 35.19  oral/aural deaf education in collaboration with representatives 
 35.20  of parents and educators of deaf and hard-of-hearing students, 
 35.21  post-secondary programs preparing teachers of deaf and 
 35.22  hard-of-hearing students, and the department of children, 
 35.23  families, and learning. 
 35.24     (c) Rule requirements for teaching oral/aural deaf 
 35.25  education shall reflect best practice research in oral/aural 
 35.26  deaf education.  Advanced competencies in teaching deaf and 
 35.27  hard-of-hearing students through oral/aural modes shall be 
 35.28  included. 
 35.29     (d) Licensure requirements for teachers of oral/aural deaf 
 35.30  education must include minimum competency in American sign 
 35.31  language, but are not subject to the guidelines established in 
 35.32  Laws 1993, chapter 224, article 3, section 32, as amended by 
 35.33  Laws 1998, chapter 398, article 2, section 47.  The signed 
 35.34  communication proficiency interview shall not be required for 
 35.35  teachers licensed to teach deaf and hard-of-hearing students 
 35.36  through oral/aural deaf education methods. 
 36.1      (e) Requirements for teachers of oral/aural deaf education 
 36.2   shall include appropriate continuing education requirements for 
 36.3   renewing this licensure. 
 36.4      Sec. 3.  Minnesota Statutes 1998, section 123A.05, 
 36.5   subdivision 2, is amended to read: 
 36.6      Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 36.7   of an area learning center must reserve revenue in an amount 
 36.8   equal to at least 90 percent of the district average general 
 36.9   education revenue ~~less compensatory~~ per pupil unit minus an 
 36.10  amount equal to the product of the formula allowance according 
 36.11  to section 126C.10, subdivision 2, times .0485, calculated 
 36.12  without basic skills revenue ~~unit~~, transportation sparsity 
 36.13  revenue, and the transportation portion of the transition 
 36.14  revenue adjustment, times the number of pupil units attending an 
 36.15  area learning center program under this section.  The amount of 
 36.16  reserved revenue under this subdivision may only be spent on 
 36.17  program costs associated with the area learning center.  
 36.18  Compensatory revenue must be allocated according to section 
 36.19  126C.15, subdivision 2.  
 36.20     Sec. 4.  Minnesota Statutes 1998, section 123B.75, is 
 36.21  amended by adding a subdivision to read: 
 36.22     Subd. 6a.  [INTEGRATION AID.] Integration aid received 
 36.23  under section 127A.45, subdivision 12a, must be recognized in 
 36.24  the same fiscal year as the integration levy. 
 36.25     (<i>Effective Date:  Section 4 (123B.75, subdivision 6a) is</i> 
 36.26  <i>effective the day following final enactment for revenue for</i> 
 36.27  <i>fiscal year 1999 and later.</i>) 
 36.28     Sec. 5.  Minnesota Statutes 1998, section 124D.454, is 
 36.29  amended to read: 
 36.30     124D.454 [ACCESS TO MINNESOTA'S ~~SCHOOL-TO-WORK~~ CAREER AND 
 36.31  TECHNICAL SYSTEM FOR CHILDREN WITH A DISABILITY.] 
 36.32     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 36.33  to provide a method to fund ~~school-to-work~~ career and technical 
 36.34  programs for children with a disability.  As used in this 
 36.35  section, the term "children with a disability" shall have the 
 36.36  meaning ascribed to it in section 125A.02. 
 37.1      Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 37.2   and section 125A.77, the definitions in this subdivision apply. 
 37.3      (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 37.4   Base year for later fiscal years means the second fiscal year 
 37.5   preceding the fiscal year for which aid will be paid. 
 37.6      (b) "Basic revenue" has the meaning given it in section 
 37.7   126C.10, subdivision 2.  For the purposes of computing basic 
 37.8   revenue ~~pursuant to~~ under this section, each child with a 
 37.9   disability shall be counted as prescribed in section 126C.05, 
 37.10  subdivision 1. 
 37.11     (c) "Average daily membership" has the meaning given it in 
 37.12  section 126C.05. 
 37.13     (d) "Program growth factor" means 1.00 for fiscal year 1998 
 37.14  and later. 
 37.15     (e) "Aid percentage factor" means 60 percent for fiscal 
 37.16  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 37.17  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 37.18  percent for fiscal year 2000 and later. 
 37.19     Subd. 3.  [BASE REVENUE.] (a) The ~~school-to-work~~ career and 
 37.20  technical program-disabled base revenue equals the sum of the 
 37.21  following amounts computed using base year data: 
 37.22     (1) 68 percent of the salary of each essential licensed 
 37.23  person who provides direct instructional services to students 
 37.24  employed during that fiscal year for services rendered in that 
 37.25  district's ~~school-to-work~~ career and technical program for 
 37.26  children with a disability; 
 37.27     (2) 47 percent of the costs of necessary equipment for 
 37.28  ~~school-to-work~~ career and technical programs for children with a 
 37.29  disability; 
 37.30     (3) 47 percent of the costs of necessary travel between 
 37.31  instructional sites by ~~school-to-work~~ career and technical 
 37.32  program teachers of children with a disability but not including 
 37.33  travel to and from local, regional, district, state, or national 
 37.34  vocational student organization meetings; 
 37.35     (4) 47 percent of the costs of necessary supplies for 
 37.36  ~~school-to-work~~ career and technical programs for children with a 
 38.1   disability but not to exceed an average of $47 in any one school 
 38.2   year for each child with a disability receiving these services; 
 38.3      (5) for ~~school-to-work~~ career and technical programs for 
 38.4   children with disabilities provided by a contract approved by 
 38.5   the commissioner with public, private, or voluntary agencies 
 38.6   other than a Minnesota school district or cooperative center, in 
 38.7   place of programs provided by the district, 52 percent of the 
 38.8   difference between the amount of the contract and the basic 
 38.9   revenue of the district for that pupil for the fraction of the 
 38.10  school day the pupil receives services under the contract; 
 38.11     (6) for ~~school-to-work~~ career and technical programs for 
 38.12  children with disabilities provided by a contract approved by 
 38.13  the commissioner with public, private, or voluntary agencies 
 38.14  other than a Minnesota school district or cooperative center, 
 38.15  that are supplementary to a full educational program provided by 
 38.16  the school district, 52 percent of the amount of the contract; 
 38.17  and 
 38.18     (7) for a contract approved by the commissioner with 
 38.19  another Minnesota school district or cooperative center for 
 38.20  vocational evaluation services for children with a disability 
 38.21  for children that are not yet enrolled in grade 12, 52 percent 
 38.22  of the amount of the contract. 
 38.23     (b) If requested by a school district for ~~school-to-work~~ 
 38.24  career and technical programs during the base year for less than 
 38.25  the full school year, the commissioner may adjust the base 
 38.26  revenue to reflect the expenditures that would have occurred 
 38.27  during the base year had the program been operated for the full 
 38.28  year. 
 38.29     Subd. 4.  [ADJUSTED ~~SECONDARY VOCATIONAL~~ CAREER AND 
 38.30  TECHNICAL-DISABLED BASE REVENUE.] For fiscal year 1996 and 
 38.31  later, a district's adjusted ~~secondary vocational~~ career and 
 38.32  technical-disabled base revenue equals the district's ~~secondary~~ 
 38.33  ~~vocational~~ career and technical-disabled base revenue times the 
 38.34  ratio of the district's average daily membership for the current 
 38.35  school year to the district's average daily membership for the 
 38.36  base year. 
 39.1      Subd. 5.  [STATE TOTAL ~~SCHOOL-TO-WORK~~ CAREER AND TECHNICAL 
 39.2   PROGRAM-DISABLED REVENUE.] The state total ~~school-to-work~~ career 
 39.3   and technical program-disabled revenue for fiscal year ~~1998~~ 2000 
 39.4   equals ~~$8,924,000~~ $8,982,000.  The state total 
 39.5   ~~school-to-work~~ career and technical program-disabled revenue for 
 39.6   fiscal year ~~1999~~ 2001 equals ~~$8,976,000~~ $8,966,000.  The state 
 39.7   total ~~school-to-work~~ career and technical program-disabled 
 39.8   revenue for later fiscal years equals:  
 39.9      (1) the state total ~~school-to-work~~ career and technical 
 39.10  program-disabled revenue for the preceding fiscal year; times 
 39.11     (2) the program growth factor; times 
 39.12     (3) the ratio of the state total average daily membership 
 39.13  for the current fiscal year to the state total average daily 
 39.14  membership for the preceding fiscal year. 
 39.15     Subd. 6.  [SCHOOL DISTRICT ~~SECONDARY VOCATIONAL~~ CAREER AND 
 39.16  TECHNICAL-DISABLED REVENUE.] (a) A school district's ~~secondary~~ 
 39.17  ~~vocational~~ career and technical-disabled revenue for fiscal year 
 39.18  1996 and later equals the state total ~~secondary~~ 
 39.19  ~~vocational~~ career and technical-disabled revenue, minus the 
 39.20  amount determined under paragraph (b), times the ratio of the 
 39.21  district's adjusted ~~secondary vocational~~ career and 
 39.22  technical-disabled base revenue to the state total 
 39.23  adjusted ~~secondary vocational~~ career and technical-disabled base 
 39.24  revenue. 
 39.25     (b) Notwithstanding paragraph (a), if the ~~secondary~~ 
 39.26  ~~vocational~~ career and technical-disabled base revenue for a 
 39.27  district equals zero and no district residents were enrolled 
 39.28  in ~~secondary vocational~~ career and technical-disabled programs 
 39.29  during the base year, the ~~secondary vocational~~ career and 
 39.30  technical-disabled revenue equals the amount computed according 
 39.31  to subdivision 3 using current year data. 
 39.32     Subd. 7.  [SCHOOL DISTRICT ~~SECONDARY VOCATIONAL~~ CAREER AND 
 39.33  TECHNICAL-DISABLED AID.] A school district's ~~secondary~~ 
 39.34  ~~vocational~~ career and technical-disabled aid for fiscal year 
 39.35  1996 and later equals the district's ~~secondary vocational~~ career 
 39.36  and technical-disabled revenue times the aid percentage factor 
 40.1   for that year. 
 40.2      Subd. 8.  [USE OF AID.] The aid provided ~~pursuant to~~ under 
 40.3   this section shall be paid only for services rendered as 
 40.4   designated in subdivision 2 or for the costs designated in 
 40.5   subdivision 3 which are incurred in ~~school-to-work~~ career and 
 40.6   technical programs for children with a disability which are 
 40.7   approved by the commissioner of children, families, and learning 
 40.8   and operated ~~in accordance with~~ according to rules promulgated 
 40.9   by the state board.  These rules ~~shall be~~ are subject to the 
 40.10  restrictions provided in section 124D.453, subdivision 6.  The 
 40.11  procedure for application for approval of these programs shall 
 40.12  be as provided in section 125A.75, subdivisions 4 and 6, and the 
 40.13  application review process shall be conducted by the office of 
 40.14  lifework development in the department. 
 40.15     Subd. 9.  [PAYMENT OF AID.] All aid ~~pursuant to~~ under this 
 40.16  section shall be paid to the district or cooperative center 
 40.17  providing the services.  All aid received by a district or 
 40.18  center from any source for ~~school-to-work~~ career and technical 
 40.19  programs for children with a disability shall be ~~utilized~~ used 
 40.20  solely for that purpose. 
 40.21     Subd. 10.  [EXCLUSION.] A district shall not receive 
 40.22  aid ~~pursuant to~~ under section 124D.453, 125A.76, or 125A.77 for 
 40.23  salaries, supplies, travel or equipment for which the district 
 40.24  receives aid ~~pursuant to~~ under this section. 
 40.25     Subd. 11.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 40.26  INTERMEDIATE DISTRICTS.] For purposes of this section and 
 40.27  section 125A.77, a cooperative center or an intermediate 
 40.28  district must allocate its approved expenditures for 
 40.29  ~~school-to-work~~ career and technical programs for children with a 
 40.30  disability among participating school districts.  Aid 
 40.31  for ~~school-to-work~~ career and technical programs for children 
 40.32  with a disability for services provided by a cooperative or 
 40.33  intermediate district shall be paid to the participating 
 40.34  districts.  
 40.35     Sec. 6.  Minnesota Statutes 1998, section 124D.87, is 
 40.36  amended to read: 
 41.1      124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 41.2   TRANSPORTATION ~~GRANTS~~ AID.] 
 41.3      (a) A district that provides transportation of pupils to 
 41.4   and from an interdistrict program for desegregation or 
 41.5   integration purposes ~~may apply to the commissioner~~ is eligible 
 41.6   for ~~a grant~~ state aid to cover the additional costs of 
 41.7   transportation.  
 41.8      (b) A district in the metropolitan area may apply to the 
 41.9   commissioner for ~~a grant~~ state aid to cover the costs of 
 41.10  transporting pupils who are enrolled under section 124D.03 if 
 41.11  the enrollment of the student in the nonresident district 
 41.12  contributes to desegregation or integration purposes.  The 
 41.13  commissioner shall develop the form and manner of 
 41.14  applications for state aid, the criteria to be used to determine 
 41.15  when transportation is for desegregation or integration 
 41.16  purposes, and the accounting procedure to be used to determine 
 41.17  excess costs.  In determining ~~the grant amount~~ aid amounts, the 
 41.18  commissioner shall consider other revenue received by the 
 41.19  district for transportation for desegregation or integration 
 41.20  purposes. 
 41.21     (c) ~~Grants may be awarded~~ Aid must be paid under paragraph 
 41.22  (b) only if ~~grants awarded~~ aid amounts under paragraph (a) have 
 41.23  been fully funded. 
 41.24     Sec. 7.  Minnesota Statutes 1998, section 125A.09, 
 41.25  subdivision 4, is amended to read: 
 41.26     Subd. 4.  [DISPUTE RESOLUTION.] Parents and guardians must 
 41.27  have an opportunity to meet with appropriate district staff in 
 41.28  at least one conciliation conference, mediation, or other method 
 41.29  of alternative dispute resolution that the parties agree to, if 
 41.30  they object to any proposal of which they are notified under 
 41.31  subdivision 1.  The state intends to encourage parties to 
 41.32  resolve disputes through mediation or other form of alternative 
 41.33  dispute resolution.  A school district and a parent or guardian 
 41.34  must participate in mediation using mediation services 
 41.35  acceptable to both parties, unless a party objects to the 
 41.36  mediation.  Mediation shall remain available to the parties 
 42.1   until a party objects to the mediation, or the mediator 
 42.2   determines that further efforts to mediate a dispute are not 
 42.3   warranted.  All mediation is subject to the confidentiality 
 42.4   requirements under rule 114.08 of the general rules of practice 
 42.5   for the district courts.  Alternative dispute resolution must 
 42.6   not be used to deny or delay a parent or guardian's right to a 
 42.7   due process hearing.  If the parent or guardian refuses efforts 
 42.8   by the district to conciliate the dispute with the district, the 
 42.9   requirement of an opportunity for conciliation or other 
 42.10  alternative dispute resolution must be deemed to be satisfied.  
 42.11  Notwithstanding other law, in any proceeding following a 
 42.12  conciliation conference, the district must not offer a 
 42.13  conciliation conference memorandum into evidence, except for any 
 42.14  portions that describe the district's final proposed offer of 
 42.15  service.  Otherwise, with respect to forms of dispute 
 42.16  resolution, mediation, or conciliation, Minnesota Rule of 
 42.17  Evidence 408 applies.  ~~The department may reimburse the~~ 
 42.18  ~~districts or directly pay the costs of lay advocates, not to~~ 
 42.19  ~~exceed $150 per dispute, used in conjunction with alternative~~ 
 42.20  ~~dispute resolution.~~ 
 42.21     Sec. 8.  [125A.155] [PLACEMENT IN ANOTHER STATE; SPECIAL 
 42.22  EDUCATION RECIPROCITY; COMMISSIONER DUTIES.] The commissioner of 
 42.23  children, families, and learning must develop a special 
 42.24  education reciprocity agreement form.  The reciprocity form must 
 42.25  specify the procedures used to calculate special education 
 42.26  tuition charges for both Minnesota students that are served in 
 42.27  other states and for out-of-state students who are served in 
 42.28  Minnesota.  The commissioner shall attempt to enter into 
 42.29  reciprocity agreements with any state that sends students to 
 42.30  Minnesota and any state that provides services to Minnesota 
 42.31  students. 
 42.32     Sec. 9.  Minnesota Statutes 1998, section 125A.50, 
 42.33  subdivision 2, is amended to read: 
 42.34     Subd. 2.  [APPLICATION CONTENTS.] The application must set 
 42.35  forth: 
 42.36     (1) instructional services available to eligible pupils 
 43.1   under section ~~124D.67~~ 124D.66, subdivision ~~3~~ 2, and pupils with 
 43.2   a disability under section 125A.02; 
 43.3      (2) criteria to select pupils for the program and the 
 43.4   assessment procedures to determine eligibility; 
 43.5      (3) involvement in the program of parents of pupils in the 
 43.6   program, parent advocates, and community special education 
 43.7   advocates; 
 43.8      (4) accounting procedures to document that federal special 
 43.9   education money is used to supplement or increase the level of 
 43.10  special education instruction and related services provided with 
 43.11  state and local revenue, but in no case to supplant the state 
 43.12  and local revenue, and that districts are expending at least the 
 43.13  amount for special education instruction and related services 
 43.14  required by federal law; 
 43.15     (5) the role of regular and special education teachers in 
 43.16  planning and implementing the program; and 
 43.17     (6) other information requested by the commissioner.  
 43.18     Sec. 10.  Minnesota Statutes 1998, section 125A.50, 
 43.19  subdivision 5, is amended to read: 
 43.20     Subd. 5.  [ANNUAL REPORT.] Each year the district must 
 43.21  submit to the commissioner a report containing the information 
 43.22  described in subdivision 3 ~~and section 124D.67, subdivision 7~~.  
 43.23     Sec. 11.  Minnesota Statutes 1998, section 125A.75, 
 43.24  subdivision 8, is amended to read: 
 43.25     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 43.26  year 1999 and thereafter, the commissioner of children, 
 43.27  families, and learning, or the commissioner's designee, shall 
 43.28  use state funds to pay school districts for the administrative 
 43.29  costs of a due process hearing incurred under section 125A.09, 
 43.30  subdivisions 6, 10, and 11, including hearing officer fees, 
 43.31  court reporter fees, mileage costs, transcript 
 43.32  costs, interpreter and transliterator fees, independent 
 43.33  evaluations ordered by the hearing officer, and rental of 
 43.34  hearing rooms, but not including district attorney fees.  To 
 43.35  receive state aid under this paragraph, a school district shall 
 43.36  submit to the commissioner ~~at the end of the school year~~ by 
 44.1   August 1 an itemized list of unreimbursed actual costs for fees 
 44.2   and other expenses under this paragraph incurred after June 30, 
 44.3   1998, for hearings completed during the previous fiscal year.  
 44.4   State funds used for aid to school districts under this 
 44.5   paragraph shall be based on the unreimbursed actual costs and 
 44.6   fees submitted by a district ~~from previous school years~~. 
 44.7      ~~(b) For fiscal year 1999 and thereafter, a school district,~~ 
 44.8   ~~to the extent to which it prevails under United States Code,~~ 
 44.9   ~~title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal~~ 
 44.10  ~~Rules of Civil Procedure, shall receive state aid equal to 50~~ 
 44.11  ~~percent of the total actual cost of attorney fees incurred after~~ 
 44.12  ~~a request for a due process hearing under section 125A.09,~~ 
 44.13  ~~subdivisions 6, 9, and 11, is served upon the parties.  A~~ 
 44.14  ~~district is eligible for reimbursement for attorney fees under~~ 
 44.15  ~~this paragraph only if:~~ 
 44.16     ~~(1) a court of competent jurisdiction determines that the~~ 
 44.17  ~~parent is not the prevailing party under United States Code,~~ 
 44.18  ~~title 20, section 1415(i)(3)(B)(D), or the parties stipulate~~ 
 44.19  ~~that the parent is not the prevailing party;~~ 
 44.20     ~~(2) the district has made a good faith effort to resolve~~ 
 44.21  ~~the dispute through mediation, but the obligation to mediate~~ 
 44.22  ~~does not compel the district to agree to a proposal or make a~~ 
 44.23  ~~concession; and~~ 
 44.24     ~~(3) the district made an offer of settlement under Rule 68~~ 
 44.25  ~~of the Federal Rules of Civil Procedure.~~  
 44.26     ~~To receive aid, a school district that meets the criteria~~ 
 44.27  ~~of this paragraph shall submit to the commissioner at the end of~~ 
 44.28  ~~the school year an itemized list of unreimbursed actual attorney~~ 
 44.29  ~~fees associated with a due process hearing under section~~ 
 44.30  ~~125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph~~ 
 44.31  ~~for each school district is based on unreimbursed actual~~ 
 44.32  ~~attorney fees submitted by the district from previous school~~ 
 44.33  ~~years.~~ 
 44.34     ~~(c) For fiscal year 1999 and thereafter, a school district~~ 
 44.35  ~~is eligible to receive state aid for 50 percent of the total~~ 
 44.36  ~~actual cost of attorney fees it incurs in appealing to a court~~ 
 45.1   ~~of competent jurisdiction the findings, conclusions, and order~~ 
 45.2   ~~of a due process hearing under section 125A.09, subdivisions 6,~~ 
 45.3   ~~9, and 11.  The district is eligible for reimbursement under~~ 
 45.4   ~~this paragraph only if the commissioner authorizes the~~ 
 45.5   ~~reimbursement after evaluating the merits of the case.  In a~~ 
 45.6   ~~case where the commissioner is a named party in the litigation,~~ 
 45.7   ~~the commissioner of the bureau of mediation services shall make~~ 
 45.8   ~~the determination regarding reimbursement.  The commissioner's~~ 
 45.9   ~~decision is final.~~  
 45.10     ~~(d)~~ (b) The commissioner shall provide districts with a 
 45.11  form on which to annually report litigation costs under this 
 45.12  section and shall base aid estimates on ~~those~~ preliminary 
 45.13  reports submitted by the district during the current fiscal year.
 45.14     Sec. 12.  Minnesota Statutes 1998, section 125A.76, 
 45.15  subdivision 1, is amended to read: 
 45.16     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 45.17  section ~~and section 125A.77~~, the definitions in this subdivision 
 45.18  apply. 
 45.19     (a) "Base year" for fiscal year 1998 and later fiscal years 
 45.20  means the second fiscal year preceding the fiscal year for which 
 45.21  aid will be paid. 
 45.22     (b) "Basic revenue" has the meaning given it in section 
 45.23  126C.10, subdivision 2.  For the purposes of computing basic 
 45.24  revenue pursuant to this section, each child with a disability 
 45.25  shall be counted as prescribed in section 126C.05, subdivision 1.
 45.26     (c) "Essential personnel" means teachers, related services, 
 45.27  and support services staff providing direct services to students.
 45.28     (d) "Average daily membership" has the meaning given it in 
 45.29  section 126C.05. 
 45.30     (e) "Program growth factor" means ~~1.00~~ 1.02 for fiscal year 
 45.31  ~~2000~~ 2002 and later. 
 45.32     ~~(f) "Aid percentage factor" means 60 percent for fiscal~~ 
 45.33  ~~year 1996, 70 percent for fiscal year 1997, 80 percent for~~ 
 45.34  ~~fiscal year 1998, 90 percent for fiscal year 1999, and 100~~ 
 45.35  ~~percent for fiscal years 2000 and later.~~ 
 45.36     ~~(g) "Levy percentage factor" means 100 minus the aid~~ 
 46.1   ~~percentage factor for that year.~~ 
 46.2      Sec. 13.  Minnesota Statutes 1998, section 125A.76, 
 46.3   subdivision 4, is amended to read: 
 46.4      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION ~~REVENUE~~ AID.] The 
 46.5   state total special education ~~revenue~~ aid for fiscal year ~~1998~~ 
 46.6   2000 equals ~~$358,542,000~~ $463,000,000.  The state total special 
 46.7   education ~~revenue~~ aid for fiscal year ~~1999~~ 2001 equals 
 46.8   ~~$435,322,000~~ $474,000,000.  The state total special 
 46.9   education ~~revenue~~ aid for later fiscal years equals:  
 46.10     (1) the state total special education ~~revenue~~ aid for the 
 46.11  preceding fiscal year; times 
 46.12     (2) the program growth factor; times 
 46.13     (3) the ratio of the state total average daily membership 
 46.14  for the current fiscal year to the state total average daily 
 46.15  membership for the preceding fiscal year. 
 46.16     Sec. 14.  Minnesota Statutes 1998, section 125A.76, 
 46.17  subdivision 5, is amended to read: 
 46.18     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION ~~REVENUE~~ AID.] 
 46.19  (a) A school district's special education ~~revenue~~ aid for fiscal 
 46.20  year ~~1996~~ 2000 and later equals the state total special 
 46.21  education ~~revenue~~ aid, minus the amount determined under 
 46.22  ~~paragraph~~ paragraphs (b) and (c), times the ratio of the 
 46.23  district's adjusted special education base revenue to the state 
 46.24  total adjusted special education base revenue.  If the state 
 46.25  board of education modifies its rules for special education in a 
 46.26  manner that increases a district's special education obligations 
 46.27  or service requirements, the commissioner shall annually 
 46.28  increase each district's special education ~~revenue~~ aid by the 
 46.29  amount necessary to compensate for the increased service 
 46.30  requirements.  The additional ~~revenue~~ aid equals the cost in the 
 46.31  current year attributable to rule changes not reflected in the 
 46.32  computation of special education base revenue, multiplied by the 
 46.33  appropriate percentages from subdivision 2. 
 46.34     (b) Notwithstanding paragraph (a), if the special education 
 46.35  base revenue for a district equals zero, the special education 
 46.36  ~~revenue~~ aid equals the amount computed according to subdivision 
 47.1   2 using current year data. 
 47.2      (c) Notwithstanding paragraphs (a) and (b), if the special 
 47.3   education base revenue for a district is greater than zero, and 
 47.4   the base year amount for the district under subdivision 2, 
 47.5   paragraph (a), clause (7), equals zero, the special education 
 47.6   ~~revenue~~ aid equals the sum of the amount computed according to 
 47.7   paragraph (a), plus the amount computed according to subdivision 
 47.8   2, paragraph (a), clause (7), using current year data. 
 47.9      Sec. 15.  Minnesota Statutes 1998, section 125A.79, 
 47.10  subdivision 1, is amended to read: 
 47.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 47.12  section, the definitions in this subdivision apply. 
 47.13     (a) "Unreimbursed special education cost" means the sum of 
 47.14  the following: 
 47.15     (1) expenditures for teachers' salaries, contracted 
 47.16  services, supplies, equipment, and transportation services 
 47.17  eligible for revenue under section 125A.76; plus 
 47.18     (2) expenditures for tuition bills received under sections 
 47.19  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 47.20  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
 47.21  1; minus 
 47.22     (3) revenue for teachers' salaries, contracted services, 
 47.23  supplies, and equipment under sections 124.3202 and 124A.76; 
 47.24  minus 
 47.25     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 47.26  125A.65 for services eligible for revenue under sections 
 47.27  124.3202, subdivision 1, and 124A.76, subdivision 2. 
 47.28     (b) "General revenue" means for fiscal year 1996, the sum 
 47.29  of the general education revenue according to section 126C.10, 
 47.30  subdivision 1, as adjusted according to section 127A.47, 
 47.31  subdivision 7, plus the total referendum revenue according to 
 47.32  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 47.33  later, "general revenue" means the sum of the general education 
 47.34  revenue according to section 126C.10, subdivision 1, as adjusted 
 47.35  according to section 127A.47, ~~subdivision~~ subdivisions 7 and 8, 
 47.36  plus the total referendum revenue minus transportation sparsity 
 48.1   revenue minus total operating capital revenue.  
 48.2      (c) "Average daily membership" has the meaning given it in 
 48.3   section 126C.05. 
 48.4      (d) "Program growth factor" means 1.044 for fiscal year 
 48.5   2002 and 1.02 for fiscal year 2003 and later. 
 48.6      Sec. 16.  Minnesota Statutes 1998, section 125A.79, 
 48.7   subdivision 2, is amended to read: 
 48.8      Subd. 2.  [EXCESS COST ~~REVENUE~~ AID, FISCAL YEARS 2000 AND 
 48.9   2001.] For ~~1997 and later~~ fiscal years 2000 and 2001, a 
 48.10  district's special education excess cost ~~revenue~~ aid equals the 
 48.11  greatest of: 
 48.12     (a) 70 percent of the difference between (1) the district's 
 48.13  unreimbursed special education cost and (2) ~~5.7~~ 4.13 percent ~~for~~ 
 48.14  ~~fiscal year 1997 and later years~~ of the district's general 
 48.15  revenue; 
 48.16     (b) 70 percent of the difference between (1) the increase 
 48.17  in the district's unreimbursed special education cost between 
 48.18  the base year as defined in section 125A.76, subdivision 1, and 
 48.19  the current year and (2) 1.6 percent of the district's general 
 48.20  revenue; or 
 48.21     (c) zero. 
 48.22     Sec. 17.  Minnesota Statutes 1998, section 125A.79, is 
 48.23  amended by adding a subdivision to read: 
 48.24     Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
 48.25  and later, a district's initial excess cost aid equals the 
 48.26  greatest of: 
 48.27     (1) 70 percent of the difference between (i) the district's 
 48.28  unreimbursed special education cost and (ii) 4.13 percent of the 
 48.29  district's general revenue; 
 48.30     (2) 70 percent of the difference between (i) the increase 
 48.31  in the district's unreimbursed special education cost between 
 48.32  the base year as defined in section 125A.76, subdivision 1, and 
 48.33  the current year and (ii) 1.6 percent of the district's general 
 48.34  revenue; or 
 48.35     (3) zero. 
 48.36     Sec. 18.  Minnesota Statutes 1998, section 125A.79, is 
 49.1   amended by adding a subdivision to read: 
 49.2      Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST 
 49.3   AID.] The state total special education excess cost aid for 
 49.4   fiscal year 2002 and later fiscal years equals: 
 49.5      (1) the state total special education excess cost aid for 
 49.6   the preceding fiscal year; times 
 49.7      (2) the program growth factor; times 
 49.8      (3) the ratio of the state total average daily membership 
 49.9   for the current fiscal year to the state total average daily 
 49.10  membership for the preceding fiscal year. 
 49.11     Sec. 19.  Minnesota Statutes 1998, section 125A.79, is 
 49.12  amended by adding a subdivision to read: 
 49.13     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 
 49.14  district's special education excess cost aid for fiscal year 
 49.15  2002 and later equals the state total special education excess 
 49.16  cost aid times the ratio of the district's initial excess cost 
 49.17  aid to the state total initial excess cost aid. 
 49.18     Sec. 20.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
 49.19  EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
 49.20     (a) The commissioner, in cooperation with the commissioners 
 49.21  of human services and corrections and with input from 
 49.22  appropriate billing system users, shall develop and implement a 
 49.23  uniform billing system for school districts and other agencies, 
 49.24  including private providers, who provide the educational 
 49.25  services for students who are placed out of the home.  The 
 49.26  uniform billing system must: 
 49.27     (1) allow for the proper and timely billing to districts by 
 49.28  service providers with a minimum amount of district 
 49.29  administration; 
 49.30     (2) allow districts to bill the state for certain types of 
 49.31  special education and regular education services as provided by 
 49.32  law; 
 49.33     (3) provide flexibility for the types of services that are 
 49.34  provided for children placed out of the home, including day 
 49.35  treatment services; 
 49.36     (4) allow the commissioner to track the type, cost, and 
 50.1   quality of services provided for children placed out of the 
 50.2   home; 
 50.3      (5) conform existing special education and proposed regular 
 50.4   education billing procedures; 
 50.5      (6) provide a uniform reporting standard of per diem rates; 
 50.6      (7) determine allowable expenses and maximum reimbursement 
 50.7   rates for the state reimbursement of care and treatment services 
 50.8   according to section 124D.701; and 
 50.9      (8) provide a process for the district to appeal to the 
 50.10  commissioner tuition bills submitted to districts and to the 
 50.11  state. 
 50.12     (b) The commissioner shall implement a uniform billing 
 50.13  system for education services for children placed out of the 
 50.14  home under this section, by July 1, 2000.  The commissioner 
 50.15  shall provide training to school districts on the uniform 
 50.16  billing system. 
 50.17     Sec. 21.  Minnesota Statutes 1998, section 127A.45, is 
 50.18  amended by adding a subdivision to read: 
 50.19     Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] Nineteen 
 50.20  percent of the state aid in fiscal year 1999, and 31 percent of 
 50.21  the state aid in fiscal years 2000 and later received under 
 50.22  section 124D.86 must be paid by the state to the recipient 
 50.23  school district on July 15 of that year.  The recipient school 
 50.24  district must recognize this aid in the same fiscal year as the 
 50.25  levy is recognized. 
 50.26     (<i>Effective Date:  Section 21 (127A.45, subdivision 12a) is</i> 
 50.27  <i>effective the day following final enactment for revenue for</i> 
 50.28  <i>fiscal year 1999 and later.</i>) 
 50.29     Sec. 22.  Minnesota Statutes 1998, section 127A.45, 
 50.30  subdivision 13, is amended to read: 
 50.31     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 50.32  subdivisions 11, 12, 12a, and 14, each fiscal year, all 
 50.33  education aids and credits in this chapter and chapters 120A, 
 50.34  120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
 50.35  and section 273.1392, shall be paid at 90 percent of the 
 50.36  estimated entitlement during the fiscal year of the 
 51.1   entitlement.  The final adjustment payment, according to 
 51.2   subdivision 9, must be the amount of the actual entitlement, 
 51.3   after adjustment for actual data, minus the payments made during 
 51.4   the fiscal year of the entitlement. 
 51.5      (<i>Effective Date:  Section 22 (127A.45, subdivision 13) is</i> 
 51.6   <i>effective the day following final enactment for revenue for</i> 
 51.7   <i>fiscal year 1999 and later.</i>) 
 51.8      Sec. 23.  Minnesota Statutes 1998, section 127A.47, 
 51.9   subdivision 2, is amended to read: 
 51.10     Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
 51.11  purposes, unless otherwise specifically provided by law, a 
 51.12  homeless pupil is a resident of the school district ~~in which the~~ 
 51.13  ~~homeless shelter or other program, center, or facility assisting~~ 
 51.14  ~~the homeless pupil or the pupil's family is located~~ that enrolls 
 51.15  the pupil. 
 51.16     Sec. 24.  Minnesota Statutes 1998, section 626.556, is 
 51.17  amended by adding a subdivision to read: 
 51.18     Subd. 3b.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
 51.19  INVESTIGATING REPORTS OF MALTREATMENT.] The following agencies 
 51.20  are the administrative agencies responsible for assessing or 
 51.21  investigating reports of alleged child maltreatment in 
 51.22  facilities made under this section:  the department of children, 
 51.23  families, and learning is the agency responsible for assessing 
 51.24  or investigating allegations of child maltreatment in schools as 
 51.25  defined in sections 120A.05, subdivisions 9, 11, and 13; and 
 51.26  124D.10. 
 51.27     Sec. 25.  Laws 1993, chapter 224, article 3, section 32, as 
 51.28  amended by Laws 1998, chapter 398, article 2, section 47, is 
 51.29  amended to read: 
 51.30     Sec. 32.  [ASL GUIDELINES.] 
 51.31     (a) In determining appropriate licensure requirements for 
 51.32  teachers of deaf and ~~hard of hearing~~ hard-of-hearing students 
 51.33  under Minnesota Statutes, section ~~125.189~~ 122A.28, subdivision 
 51.34  1, the board of teaching shall develop the requirements 
 51.35  according to the guidelines described in this section. 
 51.36     (b) Each teacher must complete the American sign language 
 52.1   sign communication proficiency interview or a comparable 
 52.2   American sign language evaluation that the board of teaching, 
 52.3   the Minnesota association of deaf citizens, and the Minnesota 
 52.4   council for the hearing impaired accept as a means for 
 52.5   establishing the teacher's baseline level of American sign 
 52.6   language skills.  A teacher shall not be charged for this 
 52.7   evaluation. 
 52.8      (c) Each teacher must complete 60 continuing education 
 52.9   credits in American sign language, American sign language 
 52.10  linguistics, or deaf culture for every 120 continuing education 
 52.11  credits the teacher is required to complete to renew a teaching 
 52.12  license. 
 52.13     (d) In order to obtain an initial license to teach deaf and 
 52.14  ~~hard of hearing~~ hard-of-hearing students, or to apply for a 
 52.15  Minnesota teaching license, after being licensed to teach in 
 52.16  another state, a person must demonstrate in the sign 
 52.17  communication proficiency interview an intermediate plus level 
 52.18  of proficiency in American sign language. 
 52.19     (e) Each teacher applying to renew a teaching license must 
 52.20  take the American sign language sign communication proficiency 
 52.21  interview or a comparable American sign language evaluation 
 52.22  every five years until the teacher demonstrates a minimum, or 
 52.23  survival plus, level of proficiency in American sign language. 
 52.24     (f) A teacher working directly with students whose primary 
 52.25  language is American sign language should demonstrate at least 
 52.26  an advanced level of proficiency in American sign language.  The 
 52.27  board should not consider a minimum, or survival plus, level of 
 52.28  proficiency adequate for providing direct instruction to 
 52.29  students whose primary language is American sign language. 
 52.30     (g) To renew a teaching license, a teacher must comply with 
 52.31  paragraphs (c) and (e) in addition to other applicable board 
 52.32  requirements.  A teacher's ability to demonstrate a minimum, or 
 52.33  survival plus, level of proficiency in American sign language is 
 52.34  not a condition for renewing the teacher's license. 
 52.35     (h) A teacher who demonstrates an increased proficiency in 
 52.36  American sign language skill in the American sign language sign 
 53.1   communication proficiency interview or a comparable American 
 53.2   sign language evaluation shall receive credit toward completing 
 53.3   the requirements of paragraph (c).  The number of continuing 
 53.4   education credits the teacher receives is based on the teacher's 
 53.5   increased level of proficiency from the teacher's baseline level:
 53.6      (1) 35 continuing education credits for demonstrating an 
 53.7   intermediate level of proficiency; 
 53.8      (2) 40 continuing education credits for demonstrating an 
 53.9   intermediate plus level of proficiency; 
 53.10     (3) 45 continuing education credits for demonstrating an 
 53.11  advanced level of proficiency; 
 53.12     (4) 50 continuing education credits for demonstrating an 
 53.13  advanced plus level of proficiency; 
 53.14     (5) 55 continuing education credits for demonstrating a 
 53.15  superior level of proficiency; and 
 53.16     (6) 60 continuing education credits for demonstrating a 
 53.17  superior plus level of proficiency. 
 53.18     (i) This section shall not apply to teachers of oral/aural 
 53.19  deaf education. 
 53.20     Sec. 26.  Laws 1997, First Special Session chapter 4, 
 53.21  article 2, section 51, subdivision 29, as amended by Laws 1998, 
 53.22  chapter 398, article 2, section 52, is amended to read: 
 53.23     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 53.24  the first grade preparedness program under Minnesota Statutes, 
 53.25  section 124.2613, and for school sites that have provided a 
 53.26  full-day kindergarten option for kindergarten students enrolled 
 53.27  in fiscal years 1996 and 1997: 
 53.28       $5,000,000     .....     1998 
 53.29       $6,500,000     .....     1999 
 53.30     (b) $4,200,000 in fiscal year 1998 must be distributed 
 53.31  according to Minnesota Statutes, section 124.2613, subdivision 
 53.32  3, and $4,200,000 in fiscal year 1999 must be distributed 
 53.33  according to Minnesota Statutes, section 124D.081, subdivision 3.
 53.34     (c) $800,000 in fiscal year 1998 must be divided equally 
 53.35  among the four geographic regions defined in Minnesota Statutes, 
 53.36  section 124.2613, subdivision 3, and $800,000 in fiscal year 
 54.1   1999 must be divided equally among the four geographic regions 
 54.2   defined in Minnesota Statutes, section 124D.081, subdivision 3, 
 54.3   and must first be used to provide funding for school sites that 
 54.4   offered an optional full-day kindergarten program during the 
 54.5   1996-1997 school year, but did not receive funding for fiscal 
 54.6   year 1997 under Minnesota Statutes, section 124.2613.  To be a 
 54.7   qualified site, licensed teachers must have taught the optional 
 54.8   full-day kindergarten classes.  A district that charged a fee 
 54.9   for students participating in an optional full-day program is 
 54.10  eligible to receive the grant to provide full-day kindergarten 
 54.11  for all students as required by Minnesota Statutes, section 
 54.12  ~~124.2613~~ 124D.08, subdivision 4.  Districts with eligible sites 
 54.13  must apply to the commissioner of children, families, and 
 54.14  learning for a grant. 
 54.15     ~~(c) This appropriation must first be used to fund programs~~ 
 54.16  ~~operating during the 1996-1997 school year under paragraph (b)~~ 
 54.17  ~~and Minnesota Statutes, section 124.2613.~~  Any remaining funds 
 54.18  may be used to expand the number of sites providing first grade 
 54.19  preparedness programs according to Minnesota Statutes, section 
 54.20  124D.081, subdivision 3. 
 54.21     (d) $1,500,000 in fiscal year 1999 shall be divided equally 
 54.22  among the four geographic regions defined in Minnesota Statutes, 
 54.23  section 124D.081, subdivision 3, and must first be used to 
 54.24  eliminate aid proration for sites qualifying under paragraphs 
 54.25  (b) and (c).  Any remaining funds may be used to expand the 
 54.26  number of sites providing first grade preparedness programs 
 54.27  according to Minnesota Statutes, section 124.2613, subdivision 3.
 54.28     (<i>Effective Date:  Section 26 (Laws 1997, First Special</i> 
 54.29  <i>Session chapter 4, article 2, section 51, subdivision 29), is</i> 
 54.30  <i>effective the day following final enactment.</i>) 
 54.31     Sec. 27.  [APPROPRIATIONS.] 
 54.32     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 54.33  LEARNING.] The sums indicated in this section are appropriated 
 54.34  from the general fund to the department of children, families, 
 54.35  and learning for the fiscal years designated.  
 54.36     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE EDUCATION 
 55.1   PROGRAMS.] For grants to American Indian language and culture 
 55.2   education programs according to Minnesota Statutes, section 
 55.3   124D.81, subdivision 1: 
 55.4        $730,000     .....     2000
 55.5        $730,000     .....     2001
 55.6      The 2000 appropriation includes $73,000 for 1999 and 
 55.7   $657,000 for 2000.  
 55.8      The 2001 appropriation includes $73,000 for 2000 and 
 55.9   $657,000 for 2001.  
 55.10     Any balance in the first year does not cancel but is 
 55.11  available in the second year. 
 55.12     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 55.13  American Indian education programs in school districts: 
 55.14       $175,000     .....     2000
 55.15       $175,000     .....     2001
 55.16     The 2000 appropriation includes $17,000 for 1999 and 
 55.17  $158,000 for 2000.  
 55.18     The 2001 appropriation includes $17,000 for 2000 and 
 55.19  $158,000 for 2001.  
 55.20     (b) These appropriations are available for expenditure with 
 55.21  the approval of the commissioner of the department of children, 
 55.22  families, and learning. 
 55.23     (c) The commissioner must not approve the payment of any 
 55.24  amount to a school district or school under this subdivision 
 55.25  unless that school district or school is in compliance with all 
 55.26  applicable laws of this state. 
 55.27     (d) Up to the following amounts may be distributed to the 
 55.28  following schools and school districts for each fiscal year:  
 55.29  $54,800 Pine Point School; $9,800 to independent school district 
 55.30  No. 166, Cook county; $14,900 to independent school district No. 
 55.31  432, Mahnomen; $14,200 to independent school district No. 435, 
 55.32  Waubun; $42,200 to independent school district No. 707, Nett 
 55.33  Lake; and $39,100 to independent school district No. 38, Red 
 55.34  Lake.  These amounts must be spent only for the benefit of 
 55.35  American Indian pupils and to meet established state educational 
 55.36  standards or statewide requirements. 
 56.1      (e) Before a district or school can receive money under 
 56.2   this subdivision, the district or school must submit, to the 
 56.3   commissioner, evidence that it has complied with the Uniform 
 56.4   Financial Accounting and Reporting Standards Act, Minnesota 
 56.5   Statutes, sections 123B.75 to 123B.83. 
 56.6      Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 56.7   GRANTS.] For American Indian post-secondary preparation grants 
 56.8   according to Minnesota Statutes, section 124D.85: 
 56.9        $982,000     .....     2000
 56.10       $982,000     .....     2001
 56.11     Any balance in the first year does not cancel but is 
 56.12  available in the second year. 
 56.13     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 56.14  Indian scholarships according to Minnesota Statutes, section 
 56.15  124D.84: 
 56.16       $1,875,000   .....     2000 
 56.17       $1,875,000   .....     2001 
 56.18     Any balance in the first year does not cancel but is 
 56.19  available in the second year. 
 56.20     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 56.21  joint grants to assist Indian people to become teachers: 
 56.22       $190,000     .....     2000 
 56.23       $190,000     .....     2001 
 56.24     (b) Up to $70,000 each year is for a joint grant to the 
 56.25  University of Minnesota at Duluth and independent school 
 56.26  district No. 709, Duluth. 
 56.27     (c) Up to $40,000 each year is for a joint grant to each of 
 56.28  the following: 
 56.29     (1) Bemidji state university and independent school 
 56.30  district No. 38, Red Lake; 
 56.31     (2) Moorhead state university and a school district located 
 56.32  within the White Earth reservation; and 
 56.33     (3) Augsburg college, independent school district No. 625, 
 56.34  St. Paul, and special school district No. 1, Minneapolis. 
 56.35     (d) Money not used for students at one location may be 
 56.36  transferred for use at another location. 
 57.1      (e) Any balance in the first year does not cancel but is 
 57.2   available in the second year. 
 57.3      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 57.4   school aid according to Minnesota Statutes, section 124D.83: 
 57.5        $2,706,000  .....     2000
 57.6        $2,790,000  .....     2001
 57.7      The 2000 appropriation includes $283,000 for 1999 and 
 57.8   $2,423,000 for 2000. 
 57.9      The 2001 appropriation includes $269,000 for 2000 and 
 57.10  $2,521,000 for 2001. 
 57.11     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 57.12  early childhood family education programs at tribal contract 
 57.13  schools: 
 57.14       $68,000     .....     2000 
 57.15       $68,000     .....     2001 
 57.16     Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 57.17  program grants: 
 57.18       $1,750,000  .....     2000 
 57.19       $1,750,000  .....     2001 
 57.20     These amounts may be used for magnet school programs 
 57.21  according to Minnesota Statutes, section 124D.88. 
 57.22     Subd. 10.  [INTEGRATION PROGRAMS.] For minority fellowship 
 57.23  grants according to Laws 1994, chapter 647, article 8, section 
 57.24  29; minority teacher incentives according to Minnesota Statutes, 
 57.25  section 122A.65; teachers of color grants according to Minnesota 
 57.26  Statutes, section 122A.64; and cultural exchange grants 
 57.27  according to Minnesota Statutes, section 124D.89: 
 57.28       $1,000,000     .....     2000
 57.29       $1,000,000     .....     2001
 57.30     Any balance in the first year does not cancel but is 
 57.31  available in the second year. 
 57.32     In awarding teacher of color grants, priority must be given 
 57.33  to districts that have students who are currently in the process 
 57.34  of completing their academic program. 
 57.35     Subd. 11.  [SPECIAL EDUCATION AID.] For special education 
 57.36  aid according to Minnesota Statutes, section 125A.75: 
 58.1        $456,015,000   .....     2000 
 58.2        $472,900,000   .....     2001 
 58.3      The 2000 appropriation includes $39,300,000 for 1999 and 
 58.4   $416,715,000 for 2000.  
 58.5      The 2001 appropriation includes $46,300,000 for 2000 and 
 58.6   $426,600,000 for 2001.  
 58.7      Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 58.8   according to Minnesota Statutes, section 125A.75, subdivision 3, 
 58.9   for children with a disability placed in residential facilities 
 58.10  within the district boundaries for whom no district of residence 
 58.11  can be determined: 
 58.12       $443,000     .....     2000 
 58.13       $464,000     .....     2001 
 58.14     If the appropriation for either year is insufficient, the 
 58.15  appropriation for the other year is available.  Any balance in 
 58.16  the first year does not cancel but is available in the second 
 58.17  year. 
 58.18     Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 58.19  teacher travel for home-based services according to Minnesota 
 58.20  Statutes, section 125A.75, subdivision 1: 
 58.21       $133,000     .....     2000 
 58.22       $139,000     .....     2001 
 58.23     The 2000 appropriation includes $11,000 for 1999 and 
 58.24  $122,000 for 2000.  
 58.25     The 2001 appropriation includes $13,000 for 2000 and 
 58.26  $126,000 for 2001.  
 58.27     Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 58.28  cost aid: 
 58.29       $55,999,000    .....     2000 
 58.30       $80,040,000    .....     2001 
 58.31     The 2000 appropriation includes $4,693,000 for 1999 and 
 58.32  $51,306,000 for 2000.  
 58.33     The 2001 appropriation includes $5,701,000 for 2000 and 
 58.34  $74,339,000 for 2001. 
 58.35     Subd. 15.  [CAREER AND TECHNICAL PROGRAMS; CHILDREN WITH 
 58.36  DISABILITIES.] For aid for career and technical programs for 
 59.1   children with disabilities according to Minnesota Statutes, 
 59.2   section 124D.454: 
 59.3        $8,892,000     .....     2000 
 59.4        $8,968,000     .....     2001 
 59.5      The 2000 appropriation includes $808,000 for 1999 and 
 59.6   $8,084,000 for 2000.  
 59.7      The 2001 appropriation includes $898,000 for 2000 and 
 59.8   $8,070,000 for 2001.  
 59.9      Subd. 16.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 59.10  education levy equalization aid according to Minnesota Statutes, 
 59.11  section 125A.77: 
 59.12       $526,000      .....     2000
 59.13     The 2000 appropriation includes $526,000 for 1999 and $0 
 59.14  for 2000.  
 59.15     Subd. 17.  [INTEGRATION AID.] For integration aid: 
 59.16       $37,182,000   .....     2000 
 59.17       $43,787,000   .....     2001 
 59.18     The 2000 appropriation includes $2,902,000 for 1999 and 
 59.19  $34,280,000 for 2000. 
 59.20     The 2001 appropriation includes $3,809,000 for 2000 and 
 59.21  $39,978,000 for 2001.  
 59.22     Subd. 18.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
 59.23  additional revenue for homeless students according to Minnesota 
 59.24  Statutes, section 124D.70: 
 59.25       $20,000       .....     2000
 59.26     The 2000 appropriation includes $20,000 for 1999 and $0 for 
 59.27  2000. 
 59.28     Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 59.29  TRANSPORTATION AID.] For interdistrict desegregation or 
 59.30  integration transportation aid under Minnesota Statutes, section 
 59.31  124D.87: 
 59.32       $970,000       .....     2000
 59.33       $970,000       .....     2001
 59.34     Any balance in the first year does not cancel but is 
 59.35  available in the second year.  
 59.36     Subd. 20.  [LITIGATION COSTS.] For paying the costs a 
 60.1   district incurs under Minnesota Statutes, section 125A.75, 
 60.2   subdivision 8: 
 60.3        $500,000     .....     2000
 60.4        $500,000     .....     2001
 60.5      Subd. 21.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 60.6   reimbursing serving school districts for unreimbursed eligible 
 60.7   expenditures attributable to children placed in the serving 
 60.8   school district by court action under Minnesota Statutes, 
 60.9   section 125A.79, subdivision 4: 
 60.10       $350,000     .....     2000 
 60.11       $350,000     .....     2001
 60.12     This appropriation is available until June 30, 2001. 
 60.13     Subd. 22.  [ROCHESTER SCHOOL DISTRICT.] For a special 
 60.14  education revenue adjustment for independent school district No. 
 60.15  535, Rochester: 
 60.16       $150,000     .....     2000 
 60.17       $ 15,000     .....     2001 
 60.18     Any balance in the first year does not cancel but is 
 60.19  available in the second year.  
 60.20     Sec. 28.  [REPEALER.] 
 60.21     Minnesota Statutes 1998, sections 122A.31, subdivision 4; 
 60.22  124D.65, subdivision 3; 124D.70; 125A.76, subdivision 6; 
 60.23  125A.77; and 125A.79, subdivision 3, are repealed.  Laws 1995, 
 60.24  First Special Session chapter 3, article 3, section 11; Laws 
 60.25  1997, First Special Session chapter 4, article 2, section 51, 
 60.26  subdivision 10; and Laws 1998, chapter 398, article 2, section 
 60.27  57, are repealed. 
 60.28     Sec. 29.  [EFFECTIVE DATES.] 
 60.29     When preparing the prekindergarten through grade 12 
 60.30  education conference committee report for adoption by the 
 60.31  legislature, the revisor shall combine all effective date 
 60.32  notations in this article into this effective dates section. 
 60.33                             ARTICLE 3
 60.34                        LIFEWORK DEVELOPMENT
 60.35     Section 1.  Minnesota Statutes 1998, section 124D.453, 
 60.36  subdivision 3, is amended to read: 
 61.1      Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
 61.2   secondary vocational education aid for ~~a~~ fiscal year 2001 equals 
 61.3   the lesser of: 
 61.4      (a) ~~$80~~ $70 times the district's average daily membership 
 61.5   in grades 10 to 12; or 
 61.6      (b) 25 percent of approved expenditures for the following: 
 61.7      (1) salaries paid to essential, licensed personnel 
 61.8   providing direct instructional services to students in that 
 61.9   fiscal year for services rendered in the district's approved 
 61.10  secondary vocational education programs; 
 61.11     (2) contracted services provided by a public or private 
 61.12  agency other than a Minnesota school district or cooperative 
 61.13  center under subdivision 7; 
 61.14     (3) necessary travel between instructional sites by 
 61.15  licensed secondary vocational education personnel; 
 61.16     (4) necessary travel by licensed secondary vocational 
 61.17  education personnel for vocational student organization 
 61.18  activities held within the state for instructional purposes; 
 61.19     (5) curriculum development activities that are part of a 
 61.20  five-year plan for improvement based on program assessment; 
 61.21     (6) necessary travel by licensed secondary vocational 
 61.22  education personnel for noncollegiate credit bearing 
 61.23  professional development; and 
 61.24     (7) specialized vocational instructional supplies. 
 61.25     (c) Up to ten percent of a district's secondary vocational 
 61.26  aid may be spent on equipment purchases.  Districts using 
 61.27  secondary vocational aid for equipment purchases must report to 
 61.28  the department on the improved learning opportunities for 
 61.29  students that result from the investment in equipment. 
 61.30     Sec. 2.  [APPROPRIATIONS.] 
 61.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 61.32  LEARNING.] The sums indicated in this section are appropriated 
 61.33  from the general fund to the department of children, families, 
 61.34  and learning for the fiscal years designated. 
 61.35     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 61.36  secondary vocational education aid according to Minnesota 
 62.1   Statutes, section 124D.453: 
 62.2        $12,465,000     .....     2000 
 62.3        $11,249,000     .....     2001 
 62.4      The 2000 appropriation includes $1,159,000 for 1999 and 
 62.5   $11,306,000 for 2000.  
 62.6      The 2001 appropriation includes $1,256,000 for 2000 and 
 62.7   $9,993,000 for 2001.  
 62.8      Subd. 3.  [YOUTHWORKS PROGRAMS.] For funding youthworks 
 62.9   programs according to Minnesota Statutes, sections 124D.37 to 
 62.10  124D.45: 
 62.11       $1,788,000     .....     2000 
 62.12       $1,788,000     .....     2001 
 62.13     A grantee organization may provide health and child care 
 62.14  coverage to the dependents of each participant enrolled in a 
 62.15  full-time youthworks program to the extent such coverage is not 
 62.16  otherwise available. 
 62.17     Any balance in the first year does not cancel but is 
 62.18  available in the second year. 
 62.19     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 62.20  GRANTS.] For education and employment transitions programming 
 62.21  under Minnesota Statutes, section 124D.46: 
 62.22       $3,900,000    .....      2000
 62.23       $3,900,000    .....      2001 
 62.24     Of this appropriation, $100,000 each year is for ISEEK. 
 62.25     Subd. 5.  [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 
 62.26  FOUNDATION.] For the Minnesota school-to-work student 
 62.27  organization foundation under Minnesota Statutes, section 
 62.28  124D.34: 
 62.29       $  625,000     .....     2000 
 62.30       $  625,000     .....     2001 
 62.31     Any balance in the first year does not cancel but is 
 62.32  available in the second year. 
 62.33     Sec. 3.  [REVISOR INSTRUCTION.] 
 62.34     In the next and subsequent editions of Minnesota Statutes, 
 62.35  the revisor shall change all references to "school-to-work" to 
 62.36  "career and technical." 
 63.1      Sec. 4.  [REPEALER.] 
 63.2      (a) Minnesota Statutes 1998, section 124D.32 is repealed. 
 63.3      (b) Minnesota Statutes 1998, section 124D.453, is repealed 
 63.4   effective June 30, 2001. 
 63.5                              ARTICLE 4 
 63.6                      FACILITIES AND TECHNOLOGY 
 63.7      Section 1.  Minnesota Statutes 1998, section 123B.53, 
 63.8   subdivision 4, is amended to read: 
 63.9      Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] ~~(a) For~~ 
 63.10  ~~fiscal years 1995 and later,~~ The debt service equalization 
 63.11  revenue of a district equals the eligible debt service revenue 
 63.12  minus the amount raised by a levy of ~~ten~~ 12 percent times the 
 63.13  adjusted net tax capacity of the district. 
 63.14     ~~(b) For fiscal year 1993, debt service equalization revenue~~ 
 63.15  ~~equals one-third of the amount calculated in paragraph (a).~~ 
 63.16     ~~(c) For fiscal year 1994, debt service equalization revenue~~ 
 63.17  ~~equals two-thirds of the amount calculated in paragraph (a).~~ 
 63.18     <i>(Effective Date:  Section 1 (123B.53, subdivision 4) is</i> 
 63.19  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 63.20     Sec. 2.  Minnesota Statutes 1998, section 123B.53, 
 63.21  subdivision 5, is amended to read: 
 63.22     Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
 63.23  service equalization revenue, a district must levy an amount not 
 63.24  to exceed the district's debt service equalization revenue times 
 63.25  the lesser of one or the ratio of: 
 63.26     (1) the quotient derived by dividing the adjusted net tax 
 63.27  capacity of the district for the year before the year the levy 
 63.28  is certified by the resident pupil units in the district for the 
 63.29  school year ending in the year prior to the year the levy is 
 63.30  certified; to 
 63.31     (2) ~~$4,707.50~~ $4,000. 
 63.32     <i>(Effective Date:  Section 2 (123B.53, subdivision 5) is</i> 
 63.33  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 63.34     Sec. 3.  Minnesota Statutes 1998, section 123B.53, 
 63.35  subdivision 6, is amended to read: 
 63.36     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
 64.1   debt service equalization aid is the difference between the debt 
 64.2   service equalization revenue and the equalized debt service levy.
 64.3   ~~If the amount of debt service equalization aid actually~~ 
 64.4   ~~appropriated for the fiscal year in which this calculation is~~ 
 64.5   ~~made is insufficient to fully fund debt service equalization~~ 
 64.6   ~~aid, the commissioner shall prorate the amount of aid across all~~ 
 64.7   ~~eligible districts.~~ 
 64.8      Sec. 4.  Minnesota Statutes 1998, section 123B.54, is 
 64.9   amended to read: 
 64.10     123B.54 [DEBT SERVICE APPROPRIATION.] 
 64.11     (a) ~~$35,480,000~~ $33,165,000 in fiscal year 
 64.12  ~~1998~~ 2000, ~~$38,159,000~~ $32,057,000 in fiscal year ~~1999~~ 2001, 
 64.13  and ~~$38,390,000~~ $31,280,000 in fiscal year ~~2000~~ 2002 and each 
 64.14  year thereafter is appropriated from the general fund to the 
 64.15  commissioner of children, families, and learning for payment of 
 64.16  debt service equalization aid under section 123B.53.  The ~~2000~~ 
 64.17  2002 appropriation includes ~~$3,842,000~~ $3,201,000 for ~~1999~~ 
 64.18  2001 and ~~$34,548,000~~ $29,079,000 for ~~2000~~ 2002. 
 64.19     (b) The appropriations in paragraph (a) must be reduced by 
 64.20  the amount of any money specifically appropriated for the same 
 64.21  purpose in any year from any state fund. 
 64.22     Sec. 5.  Minnesota Statutes 1998, section 123B.57, 
 64.23  subdivision 4, is amended to read: 
 64.24     Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
 64.25  safety revenue, a district may levy an amount equal to the 
 64.26  district's health and safety revenue as defined in subdivision 3 
 64.27  multiplied by the lesser of one, or the ratio of the quotient 
 64.28  derived by dividing the adjusted net tax capacity of the 
 64.29  district for the year preceding the year the levy is certified 
 64.30  by the resident pupil units in the district for the school year 
 64.31  to which the levy is attributable, to ~~$4,707.50~~ $3,956. 
 64.32     <i>(Effective Date:  Section 5 (123B.57, subdivision 4) is</i> 
 64.33  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 64.34     Sec. 6.  Minnesota Statutes 1998, section 123B.61, is 
 64.35  amended to read: 
 64.36     123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
 65.1      The board of a district may issue general obligation 
 65.2   certificates of indebtedness or capital notes subject to the 
 65.3   district debt limits to ~~purchase~~:  (a) purchase vehicles, 
 65.4   computers, telephone systems, cable equipment, photocopy and 
 65.5   office equipment, technological equipment for instruction, and 
 65.6   other capital equipment having an expected useful life at least 
 65.7   as long as the terms of the certificates or 
 65.8   notes; ~~and~~ (b) purchase computer hardware and software, without 
 65.9   regard to its expected useful life, whether bundled with 
 65.10  machinery or equipment or unbundled, together with application 
 65.11  development services and training related to the use of the 
 65.12  computer; and (c) prepay special assessments.  The certificates 
 65.13  or notes must be payable in not more than five years and must be 
 65.14  issued on the terms and in the manner determined by the board, 
 65.15  except that certificates or notes issued to prepay special 
 65.16  assessments must be payable in not more than 20 years.  The 
 65.17  certificates or notes may be issued by resolution and without 
 65.18  the requirement for an election.  The certificates or notes are 
 65.19  general obligation bonds for purposes of section 126C.55.  A tax 
 65.20  levy must be made for the payment of the principal and interest 
 65.21  on the certificates or notes, in accordance with section 475.61, 
 65.22  as in the case of bonds.  The sum of the tax levies under this 
 65.23  section and section 123B.62 for each year must not exceed the 
 65.24  amount of the district's total operating capital revenue for the 
 65.25  year the initial debt service levies are certified.  The 
 65.26  district's general education levy for each year must be reduced 
 65.27  by the sum of (1) the amount of the tax levies for debt service 
 65.28  certified for each year for payment of the principal and 
 65.29  interest on the certificates or notes as required by section 
 65.30  475.61, and (2) any excess amount in the debt redemption fund 
 65.31  used to retire certificates or notes issued after April 1, 1997, 
 65.32  other than amounts used to pay capitalized interest.  A district 
 65.33  using an excess amount in the debt redemption fund to retire the 
 65.34  certificates or notes shall report the amount used for this 
 65.35  purpose to the commissioner by July 15 of the following fiscal 
 65.36  year.  A district having an outstanding capital loan under 
 66.1   section 126C.69 or an outstanding debt service loan under 
 66.2   section 126C.68 must not use an excess amount in the debt 
 66.3   redemption fund to retire the certificates or notes. 
 66.4      Sec. 7.  Minnesota Statutes 1998, section 124C.55, is 
 66.5   amended by adding a subdivision to read: 
 66.6      Subd. 10.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
 66.7   commissioner of finance may enter into written agreements or 
 66.8   contracts relating to the continuing disclosure of information 
 66.9   needed to facilitate the ability of school districts to issue 
 66.10  debt obligations according to federal securities laws, rules, 
 66.11  and regulations, including securities and exchange commission 
 66.12  rules and regulations, section 240.15c2-12.  Such agreements or 
 66.13  contracts may be in any form the commissioner of finance deems 
 66.14  reasonable and in the state's best interests. 
 66.15     Sec. 8.  Minnesota Statutes 1998, section 124D.88, 
 66.16  subdivision 3, is amended to read: 
 66.17     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 66.18  school districts that meets the criteria required under 
 66.19  paragraph (b)~~(i)~~(1) may apply for a magnet school grant in an 
 66.20  amount not to exceed $15,000,000 for the approved costs or 
 66.21  expansion of a magnet school facility. 
 66.22     (b)~~(i)~~(1) Any group of districts that submits an 
 66.23  application for a grant shall submit a proposal to the 
 66.24  commissioner for review and comment under section 123B.71, and 
 66.25  the commissioner shall prepare a review and comment on the 
 66.26  proposed magnet school facility, regardless of the amount of the 
 66.27  capital expenditure required to design, acquire, construct, 
 66.28  remodel, improve, furnish, or equip the facility.  The 
 66.29  commissioner must not approve an application for a magnet school 
 66.30  grant for any facility unless the facility receives a favorable 
 66.31  review and comment under section 123B.71 and the participating 
 66.32  districts: 
 66.33     ~~(1)~~ (i) establish a joint powers board under section 471.59 
 66.34  to represent all participating districts and govern the magnet 
 66.35  school facility; 
 66.36     ~~(2)~~ (ii) design the planned magnet school facility to meet 
 67.1   the applicable requirements contained in Minnesota Rules, 
 67.2   chapter 3535; 
 67.3      ~~(3)~~ (iii) submit a statement of need, including reasons why 
 67.4   the magnet school will facilitate integration and improve 
 67.5   learning; 
 67.6      ~~(4)~~ (iv) prepare an educational plan that includes input 
 67.7   from both community and professional staff; and 
 67.8      ~~(5)~~ (v) develop an education program that will improve 
 67.9   learning opportunities for students attending the magnet school. 
 67.10     ~~(ii)~~ (2) The districts may develop a plan that permits 
 67.11  social service, health, and other programs serving students and 
 67.12  community residents to be located within the magnet school 
 67.13  facility.  The commissioner shall consider this plan when 
 67.14  preparing a review and comment on the proposed facility.  
 67.15     (c) When two or more districts enter into an agreement 
 67.16  establishing a joint powers board to govern the magnet school 
 67.17  facility, all member districts shall have the same powers.  
 67.18     (d) A joint powers board of participating school districts 
 67.19  established under paragraphs (b) and (c) that intends to apply 
 67.20  for a grant must adopt a resolution stating the costs of the 
 67.21  proposed project, the purpose for which the debt is to be 
 67.22  incurred, and an estimate of the dates when the contracts for 
 67.23  the proposed project will be completed.  A copy of the 
 67.24  resolution must accompany any application for a state grant 
 67.25  under this section. 
 67.26     (e)~~(i)~~(1) The commissioner shall examine and consider all 
 67.27  grant applications.  If the commissioner finds that any joint 
 67.28  powers district is not a qualified grant applicant, the 
 67.29  commissioner shall promptly notify that joint powers board.  The 
 67.30  commissioner shall make awards to no more than two qualified 
 67.31  applicants whose applications have been on file with the 
 67.32  commissioner more than 30 days.  
 67.33     ~~(ii)~~ (2) A grant award is subject to verification by the 
 67.34  joint powers board under paragraph (f).  A grant award must not 
 67.35  be made until the participating districts determine the site of 
 67.36  the magnet school facility.  If the total amount of the approved 
 68.1   applications exceeds the amount of grant funding that is or can 
 68.2   be made available, the commissioner shall allot the available 
 68.3   amount equally between the approved applicant districts.  The 
 68.4   commissioner shall promptly certify to each qualified joint 
 68.5   powers board the amount, if any, of the grant awarded to it. 
 68.6      (f) Each grant must be evidenced by a contract between the 
 68.7   joint powers board and the state acting through the 
 68.8   commissioner.  The contract obligates the state to pay to the 
 68.9   joint powers board an amount computed according to paragraph 
 68.10  (e)~~(ii)~~(2) and a schedule, and terms and conditions acceptable 
 68.11  to the commissioner of finance. 
 68.12     (g) Notwithstanding the provisions of section 123B.02, 
 68.13  subdivision 3, the joint powers and its individual members may 
 68.14  enter into long-term lease agreements as part of the magnet 
 68.15  school program.  
 68.16     Sec. 9.  Minnesota Statutes 1998, section 125B.20, is 
 68.17  amended to read: 
 68.18     125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 
 68.19  COORDINATION.] 
 68.20     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
 68.21  developing a statewide school district telecommunications 
 68.22  network is to expand the availability of a broad range of 
 68.23  courses and degrees to students throughout the state, to share 
 68.24  information resources to improve access, quality, and 
 68.25  efficiency, to improve learning, and distance cooperative 
 68.26  learning opportunities, and to promote the exchange of ideas 
 68.27  among students, parents, teachers, media generalists, 
 68.28  librarians, and the public.  In addition, through the 
 68.29  development of this statewide telecommunications network 
 68.30  emphasizing cost-effective, competitive connections, all 
 68.31  Minnesotans will benefit by enhancing access to 
 68.32  telecommunications technology throughout the state.  Network 
 68.33  connections for school districts and public libraries ~~will be~~ 
 68.34  are coordinated and fully integrated into the existing state 
 68.35  telecommunications and interactive television networks to 
 68.36  achieve comprehensive and efficient interconnectivity of school 
 69.1   districts and libraries to higher education institutions, state 
 69.2   agencies, other governmental units, agencies, and institutions 
 69.3   throughout Minnesota.  A school district may apply to the 
 69.4   commissioner for a grant under subdivision 2, and a regional 
 69.5   public library may apply under subdivision 3.  The Minnesota 
 69.6   education telecommunication council established in Laws 1995, 
 69.7   First Special Session chapter 3, article 12, section 7, shall 
 69.8   establish priorities for awarding grants, making grant awards, 
 69.9   and being responsible for the coordination of networks. 
 69.10     Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A 
 69.11  school district may apply for a grant under this subdivision 
 69.12  to:  (1) establish connections among school districts, and 
 69.13  between school districts and the state information 
 69.14  infrastructure administered by the department of administration 
 69.15  under section 16B.465; or (2) if such a connection meeting 
 69.16  minimum electronic connectivity standards is already 
 69.17  established, maintain and enhance telecommunications capacity 
 69.18  for a school district.  ~~The minimum standards of capacity are a~~ 
 69.19  ~~56 kilobyte data line and 768 kilobyte ITV connection, subject~~ 
 69.20  ~~to change based on the recommendations by the Minnesota~~ 
 69.21  ~~education telecommunications council.~~  A district may submit a 
 69.22  grant application for interactive television with higher 
 69.23  capacity connections in order to maintain multiple simultaneous 
 69.24  connections.  To ensure coordination among school districts, a 
 69.25  school district must submit its grant application to the council 
 69.26  through ~~an organization that coordinates the applications and~~ 
 69.27  ~~connections of at least ten school districts or through an~~ 
 69.28  ~~existing technology cooperative~~ the telecommunications cluster 
 69.29  organization of which the district is a member.  
 69.30     (b) The application must, at a minimum, contain information 
 69.31  to document for each applicant school district the following: 
 69.32     (1) that the proposed connection meets the minimum 
 69.33  standards and employs an open network architecture that will 
 69.34  ensure interconnectivity and interoperability with other 
 69.35  education institutions and libraries; 
 69.36     (2) that the proposed connection and system will be 
 70.1   connected to the state information infrastructure through the 
 70.2   department of administration under section 16B.465 ~~and that a~~ 
 70.3   ~~network service and management agreement is in place~~; 
 70.4      (3) that the proposed connection and system will be 
 70.5   connected to the higher education telecommunication network and 
 70.6   that a governance agreement has been adopted which includes 
 70.7   agreements between the school district system, a higher 
 70.8   education regional council, libraries, and coordinating 
 70.9   entities; 
 70.10     (4) the telecommunication vendor selected to provide 
 70.11  service from the district to a state information infrastructure 
 70.12  hub or to a more cost-effective connection point to the state 
 70.13  information infrastructure; and 
 70.14     (5) other information, as determined by the commissioner in 
 70.15  consultation with the education telecommunications council, to 
 70.16  ensure that connections are coordinated, meet state standards 
 70.17  and are cost-effective, and that service is provided in an 
 70.18  efficient and cost-effective manner. 
 70.19     (c) A school district may include, in its grant 
 70.20  application, telecommunications access for collaboration with 
 70.21  nonprofit arts organizations for the purpose of educational 
 70.22  programs, or access for a secondary media center that:  (1) is a 
 70.23  member of a multitype library system; (2) is open during periods 
 70.24  of the year when classroom instruction is occurring; and (3) has 
 70.25  licensed school media staff on site. 
 70.26     (d) The Minnesota education telecommunications council 
 70.27  shall award grants and the funds shall be dispersed by the 
 70.28  commissioner.  ~~The highest priority for these grants shall be to~~ 
 70.29  ~~bring school districts up to the minimum connectivity standards.~~ 
 70.30  ~~A grant to enhance telecommunications capacity beyond the~~ 
 70.31  ~~minimum connectivity standards shall be no more than 75 percent~~ 
 70.32  ~~of the maximum grant under this subdivision.  Grant applications~~ 
 70.33  ~~for minimum connection and enhanced telecommunications capacity~~ 
 70.34  ~~grants must be submitted to the commissioner by a coordinating~~ 
 70.35  ~~organization including, but not limited to, service cooperatives~~ 
 70.36  ~~and education districts.~~  For the purposes of the grant, a 
 71.1   school district may include a charter school under section 
 71.2   124D.10, or the Faribault academies.  Based on the award made by 
 71.3   the council, all grants under this subdivision shall be paid by 
 71.4   the commissioner directly to a school district, ~~(~~unless ~~this~~ the 
 71.5   application requests that the funds be paid to the coordinating 
 71.6   agency~~)~~.  Nonpublic schools as defined in section 237.065, 
 71.7   subdivision 2, located within the district may access the 
 71.8   network.  The nonpublic school is responsible for actual costs 
 71.9   for connection from the school to the access site. 
 71.10     (e) Money awarded under this section may be used only for 
 71.11  the purposes explicitly stated in the grant application. 
 71.12     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
 71.13  regional public library system may apply for a telecommunication 
 71.14  access grant.  The grant must be used to create or expand the 
 71.15  capacity of electronic data access and connect the library 
 71.16  system with the state information infrastructure administered by 
 71.17  the department of administration under section 
 71.18  16B.465.  ~~Connections must meet minimum system standards of a 56~~ 
 71.19  ~~kilobyte data line and 768 kilobyte ITV connection.~~  To be 
 71.20  eligible for a telecommunications access grant, a regional 
 71.21  public library system must:  (1) meet the level of local support 
 71.22  required under section 134.34; and (2) be open at least 20 hours 
 71.23  per week. 
 71.24     (b) Any grant award under this subdivision may not be used 
 71.25  to substitute for any existing local funds allocated to provide 
 71.26  electronic access, or equipment for library staff or the public, 
 71.27  or local funds previously dedicated to other library operations. 
 71.28     (c) An application for a regional public library 
 71.29  telecommunications access grant must, at a minimum, contain 
 71.30  information to document the following: 
 71.31     (1) that the connection meets the minimum standards and 
 71.32  employs an open network architecture that will ensure 
 71.33  interconnectivity and interoperability with other libraries and 
 71.34  the educational system; 
 71.35     (2) that the connection is being established through the 
 71.36  most cost-effective means and that the public library has 
 72.1   explored and coordinated connections through school districts or 
 72.2   other governmental agencies; 
 72.3      (3) that the proposed connection and system will be 
 72.4   connected to the state information infrastructure through the 
 72.5   department of administration under section 16B.465 ~~and that a~~ 
 72.6   ~~network service and management agreement is in place~~; 
 72.7      (4) that the proposed connection and system will be 
 72.8   connected to the higher education and to the school district 
 72.9   telecommunication networks subject to a governance agreement 
 72.10  with one or more school districts and a higher education 
 72.11  regional council specifying how the system will be coordinated; 
 72.12     (5) the telecommunication vendor selected to provide 
 72.13  service from the library to a state information infrastructure 
 72.14  hub or through a more cost-effective connection point to the 
 72.15  state information infrastructure; and 
 72.16     (6) other information, as determined by the commissioner, 
 72.17  to ensure that connections are coordinated, meet state 
 72.18  standards, are cost-effective, and that service is provided in 
 72.19  an efficient and cost-effective manner so that libraries 
 72.20  throughout the state are connected in as seamless a manner as 
 72.21  technically possible. 
 72.22     Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
 72.23  application forms and procedures for ~~school district minimum~~ 
 72.24  ~~connectivity grants, enhanced telecommunications grants, and~~ 
 72.25  ~~regional library~~ telecommunication access grants.  The council 
 72.26  shall select the grant recipient and shall promptly notify any 
 72.27  applicant that is found not to be qualified.  The commissioner 
 72.28  shall make the grant payments directly to the school district or 
 72.29  regional library system.  At the request of the district or 
 72.30  regional library system, the commissioner may make the grant 
 72.31  payment directly to the coordinating organization.  ~~If~~ 
 72.32  ~~appropriations are insufficient to fund all applications, the~~ 
 72.33  ~~commissioner shall first fully fund the minimum connectivity~~ 
 72.34  ~~grants.  Unsuccessful applicants may reapply for a grant.~~ 
 72.35     <i>(Effective Date:  Section 9 (125B.20) is effective the day</i> 
 72.36  <i>following final enactment.)</i> 
 73.1      Sec. 10.  Minnesota Statutes 1998, section 126C.40, 
 73.2   subdivision 4, is amended to read: 
 73.3      Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
 73.4   central administrative office located within economic 
 73.5   development region one, two, three, four, five, six, seven, 
 73.6   eight, nine, and ten may apply to the commissioner for ITV 
 73.7   revenue up to the greater of ~~.5~~ .6 percent of the adjusted net 
 73.8   tax capacity of the district or $25,000.  Eligible interactive 
 73.9   television expenditures include the construction, maintenance, 
 73.10  and lease costs of an interactive television system for 
 73.11  instructional purposes.  An eligible school district that has 
 73.12  completed the construction of its interactive television system 
 73.13  may also purchase computer hardware and software used primarily 
 73.14  for instructional purposes and access to the Internet provided 
 73.15  that its total expenditures for interactive television 
 73.16  maintenance and lease costs and for computer hardware and 
 73.17  software under this subdivision do not exceed its interactive 
 73.18  television revenue for fiscal year 1998.  The approval by the 
 73.19  commissioner and the application procedures set forth in 
 73.20  subdivision 1 shall apply to the revenue in this subdivision.  
 73.21  In granting the approval, the commissioner shall consider 
 73.22  whether the district is maximizing efficiency through peak use 
 73.23  and off-peak use pricing structures. 
 73.24     (b) To obtain ITV revenue, a district may levy an amount 
 73.25  not to exceed the district's ITV revenue times the lesser of one 
 73.26  or the ratio of: 
 73.27     (1) the quotient derived by dividing the adjusted net tax 
 73.28  capacity of the district for the year before the year the levy 
 73.29  is certified by the resident pupil units in the district for the 
 73.30  year to which the levy is attributable; to 
 73.31     (2) ~~$10,000~~ $8,404.  
 73.32     (c) A district's ITV aid is the difference between its ITV 
 73.33  revenue and the ITV levy. 
 73.34     (d) The revenue in the first year after reorganization for 
 73.35  a district that has reorganized under sections 123A.35 to 
 73.36  123A.41, 123A.46, or 123A.48 shall be the greater of: 
 74.1      (1) the revenue computed for the reorganized district under 
 74.2   paragraph (a), or 
 74.3      (2)(i) for two districts that reorganized, 75 percent of 
 74.4   the revenue computed as if the districts involved in the 
 74.5   reorganization were separate, or 
 74.6      (ii) for three or more districts that reorganized, 50 
 74.7   percent of the revenue computed as if the districts involved in 
 74.8   the reorganization were separate. 
 74.9      (e) The revenue in paragraph (d) is increased by the 
 74.10  difference between the initial revenue and ITV lease costs for 
 74.11  leases that had been entered into by the preexisting districts 
 74.12  on the effective date of the consolidation or combination and 
 74.13  with a term not exceeding ten years.  This increased revenue is 
 74.14  only available for the remaining term of the lease.  However, in 
 74.15  no case shall the revenue exceed the amount available had the 
 74.16  preexisting districts received revenue separately. 
 74.17     (f) Effective for fiscal year 2000, the revenue under this 
 74.18  section shall be 75 percent of the amount determined in 
 74.19  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
 74.20  paragraph (a); and for fiscal year 2002, 25 percent of the 
 74.21  amount in paragraph (a). 
 74.22     (g) This ~~section~~ subdivision expires effective for revenue 
 74.23  for fiscal year 2003~~, or when leases in existence on the~~ 
 74.24  ~~effective date of Laws 1997, First Special Session chapter 4,~~ 
 74.25  ~~expire~~.  
 74.26     <i>(Effective Date:  Section 10 (126C.40, subdivision 4) is</i> 
 74.27  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 74.28     Sec. 11.  Minnesota Statutes 1998, section 126C.63, 
 74.29  subdivision 5, is amended to read: 
 74.30     Subd. 5.  [LEVY.] "Levy" means a district's net debt 
 74.31  service levy after the reduction of debt service equalization 
 74.32  aid under section 123B.53, subdivision 6.  For taxes payable in 
 74.33  1994 and later, each district's maximum effort debt service levy 
 74.34  for purposes of subdivision 8, must be reduced by an equal 
 74.35  number of percentage points if the commissioner determines that 
 74.36  the levy reduction will not result in a statewide property tax 
 75.1   as would be required under Minnesota Statutes 1992, section 
 75.2   124.46, subdivision 3.  A district's levy that is adjusted under 
 75.3   this section must not be reduced below ~~18.74~~ 22.3 percent of the 
 75.4   district's adjusted net tax capacity. 
 75.5      <i>(Effective Date:  Section 11 (126C.63, subdivision 5) is</i> 
 75.6   <i>effective for revenue for fiscal years 2000 and later.)</i> 
 75.7      Sec. 12.  Minnesota Statutes 1998, section 126C.63, 
 75.8   subdivision 8, is amended to read: 
 75.9      Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
 75.10  effort debt service levy" means the lesser of: 
 75.11     (1) a levy in whichever of the following amounts is 
 75.12  applicable: 
 75.13     (a) in any district receiving a debt service loan for a 
 75.14  debt service levy payable in 1991 and thereafter, or granted a 
 75.15  capital loan after January 1, 1990, a levy in a total dollar 
 75.16  amount computed at a rate of ~~20~~ 24 percent of adjusted net tax 
 75.17  capacity for taxes payable in 1991 and thereafter; 
 75.18     (b) in any district granted a debt service loan after July 
 75.19  31, 1981, or granted a capital loan which is approved after July 
 75.20  31, 1981, a levy in a total dollar amount computed as a ~~tax rate~~ 
 75.21  ~~of 13.08 percent on the adjusted gross tax capacity for taxes~~ 
 75.22  ~~payable in 1990 or a~~ tax rate of ~~18.42~~ 21.92 percent on the 
 75.23  adjusted net tax capacity for taxes payable in 1991 and 
 75.24  thereafter; 
 75.25     ~~(c) in any district granted a debt service loan before~~ 
 75.26  ~~August 1, 1981, or granted a capital loan which was approved~~ 
 75.27  ~~before August 1, 1981, a levy in a total dollar amount computed~~ 
 75.28  ~~as a tax rate of 12.26 percent on the adjusted gross tax~~ 
 75.29  ~~capacity for taxes payable in 1990 or a tax rate of 17.17~~ 
 75.30  ~~percent on the adjusted net tax capacity for taxes payable in~~ 
 75.31  ~~1991 and thereafter, until and unless the district receives an~~ 
 75.32  ~~additional loan;~~ or 
 75.33     (2) a levy ~~in whichever of the following amounts is~~ 
 75.34  ~~applicable:~~ 
 75.35     ~~(a) in any district which received a debt service or~~ 
 75.36  ~~capital loan from the state before January 1, 1965, a levy in a~~ 
 76.1   ~~total dollar amount computed as 4.10 mills on the market value~~ 
 76.2   ~~in each year, unless the district applies or has applied for an~~ 
 76.3   ~~additional loan subsequent to January 1, 1965, or issues or has~~ 
 76.4   ~~issued bonds on the public market, other than bonds refunding~~ 
 76.5   ~~state loans, subsequent to January 1, 1967;~~ 
 76.6      ~~(b) in any district granted a debt service or capital loan~~ 
 76.7   ~~between January 1, 1965, and July 1, 1969, a levy in a total~~ 
 76.8   ~~dollar amount computed as 5-1/2 mills on the market value in~~ 
 76.9   ~~each year, until and unless the district receives an additional~~ 
 76.10  ~~loan;~~ 
 76.11     ~~(c) in any district granted a debt service or capital loan~~ 
 76.12  ~~between July 1, 1969, and July 1, 1975, a levy in a total dollar~~ 
 76.13  ~~amount computed as 6.3 mills on market value in each year until~~ 
 76.14  ~~and unless the district has received an additional loan;~~ 
 76.15     ~~(d)~~ in any district for which a capital loan was approved 
 76.16  prior to August 1, 1981, a levy in a total dollar amount equal 
 76.17  to the sum of the amount of the required debt service levy and 
 76.18  an amount which when levied annually will in the opinion of the 
 76.19  commissioner be sufficient to retire the remaining interest and 
 76.20  principal on any outstanding loans from the state within 30 
 76.21  years of the original date when the capital loan was granted.  
 76.22     The board in any district affected by the provisions of 
 76.23  clause (2)~~(d)~~ may elect instead to determine the amount of its 
 76.24  levy according to the provisions of clause (1).  If a district's 
 76.25  capital loan is not paid within 30 years because it elects to 
 76.26  determine the amount of its levy according to the provisions of 
 76.27  clause (2)~~(d)~~, the liability of the district for the amount of 
 76.28  the difference between the amount it levied under clause (2)~~(d)~~ 
 76.29  and the amount it would have levied under clause (1), and for 
 76.30  interest on the amount of that difference, must not be satisfied 
 76.31  and discharged pursuant to Minnesota Statutes 1988, or an 
 76.32  earlier edition of Minnesota Statutes if applicable, section 
 76.33  124.43, subdivision 4. 
 76.34     <i>(Effective Date:  Section 12 (126C.63, subdivision 8) is</i> 
 76.35  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 76.36     Sec. 13.  Minnesota Statutes 1998, section 126C.69, 
 77.1   subdivision 2, is amended to read: 
 77.2      Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 
 77.3   1, ~~1992~~ 1999, a district is not eligible for a capital loan 
 77.4   unless the district's estimated net debt tax rate as computed by 
 77.5   the commissioner after debt service equalization aid would be 
 77.6   more than ~~20~~ 24 percent of adjusted net tax capacity.  The 
 77.7   estimate must assume a 20-year maturity schedule for new debt. 
 77.8      <i>(Effective Date:  Section 13 (126C.69, subdivision 2) is</i> 
 77.9   <i>effective for revenue for fiscal years 2000 and later.)</i> 
 77.10     Sec. 14.  Minnesota Statutes 1998, section 126C.69, 
 77.11  subdivision 9, is amended to read: 
 77.12     Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
 77.13  recommended for approval for a district exceeding an amount 
 77.14  computed as follows: 
 77.15     (1) the amount requested by the district under subdivision 
 77.16  6; 
 77.17     (2) plus the aggregate principal amount of general 
 77.18  obligation bonds of the district outstanding on June 30 of the 
 77.19  year following the year the application was received, not 
 77.20  exceeding the limitation on net debt of the district in section 
 77.21  475.53, subdivision 4, or ~~305~~ 363 percent of its adjusted net 
 77.22  tax capacity as most recently determined, whichever is less; 
 77.23     (3) less the maximum net debt permissible for the district 
 77.24  on December 1 of the year the application is received, under the 
 77.25  limitation in section 475.53, subdivision 4, or ~~305~~ 363 percent 
 77.26  of its adjusted net tax capacity as most recently determined, 
 77.27  whichever is less; 
 77.28     (4) less any amount by which the amount voted exceeds the 
 77.29  total cost of the facilities for which the loan is granted.  
 77.30     (b) The loan may be approved in an amount computed as 
 77.31  provided in paragraph (a), clauses (1) to (3), subject to later 
 77.32  reduction according to paragraph (a), clause (4). 
 77.33     <i>(Effective Date: Section 14 (126C.69, subdivision 9) is</i> 
 77.34  <i>effective for revenue for fiscal years 2000 and later.)</i> 
 77.35     Sec. 15.  Laws 1995, First Special Session chapter 3, 
 77.36  article 12, section 7, as amended by Laws 1997, First Special 
 78.1   Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 
 78.2   section 4, and Laws 1998, chapter 359, section 20, is amended to 
 78.3   read: 
 78.4      Sec. 7.  [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
 78.5      Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
 78.6   of the Minnesota education telecommunications council 
 78.7   established in Laws 1993, First Special Session chapter 2, is 
 78.8   expanded to include representatives of elementary and secondary 
 78.9   education.  The membership shall consist of three 
 78.10  representatives from the University of Minnesota; three 
 78.11  representatives of the board of trustees for Minnesota state 
 78.12  colleges and universities; one representative of the higher 
 78.13  education services offices; one representative appointed by the 
 78.14  private college council; one representative selected by the 
 78.15  commissioner of administration; eight representatives selected 
 78.16  by the commissioner of children, families, and learning, at 
 78.17  least one of which must come from each of the six higher 
 78.18  education telecommunication regions; a representative from the 
 78.19  office of technology; two members each from the senate and the 
 78.20  house of representatives selected by the subcommittee on 
 78.21  committees of the committee on rules and administration of the 
 78.22  senate and the speaker of the house, one member from each body 
 78.23  must be a member of the minority party; and three 
 78.24  representatives of libraries, one representing regional public 
 78.25  libraries, one representing multitype libraries, and one 
 78.26  representing community libraries, selected by the governor.  The 
 78.27  council shall: 
 78.28     (1) develop a statewide vision and plans for the use of 
 78.29  distance learning technologies and provide leadership in 
 78.30  implementing the use of such technologies; 
 78.31     (2) ~~recommend to the commissioner and the legislature by~~ 
 78.32  ~~December 15, 1996, a plan for long-term governance and a~~ 
 78.33  ~~proposed structure for statewide and regional~~ 
 78.34  ~~telecommunications;~~ 
 78.35     ~~(3)~~ recommend educational policy relating to 
 78.36  telecommunications; 
 79.1      ~~(4)~~ (3) determine priorities for use; 
 79.2      ~~(5)~~ (4) oversee coordination of networks for post-secondary 
 79.3   campuses, ~~K-12~~ kindergarten through grade 12 education, and 
 79.4   regional and community libraries; 
 79.5      ~~(6)~~ (5) review application for telecommunications access 
 79.6   grants under Minnesota Statutes, section ~~124C.74~~ 125B.20, and 
 79.7   ~~recommend to the department grants for funding~~ make grant 
 79.8   awards; 
 79.9      ~~(7)~~ (6) determine priorities for grant funding proposals; 
 79.10  and 
 79.11     ~~(8)~~ (7) work with the information policy office to ensure 
 79.12  consistency of the operation of the learning network with 
 79.13  standards of an open system architecture. 
 79.14     The council shall consult with representatives of the 
 79.15  telecommunication industry in implementing this section.  
 79.16     Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
 79.17  organizations that coordinate applications for telecommunication 
 79.18  access grants are encouraged to become members of the regional 
 79.19  higher education telecommunication council in their area. 
 79.20     Subd. 3.  [CRITERIA.] In addition to responsibilities of 
 79.21  the council under Laws 1993, First Special Session chapter 2, as 
 79.22  amended, the telecommunications council shall evaluate grant 
 79.23  applications under Minnesota Statutes, section 124C.74 and 
 79.24  applications from district organizations using the following 
 79.25  criteria: 
 79.26     (1) evidence of cooperative arrangements with other 
 79.27  post-secondary institutions, school districts, and community and 
 79.28  regional libraries in the geographic region; 
 79.29     (2) plans for shared classes and programs; 
 79.30     (3) avoidance of network duplication; 
 79.31     (4) evidence of efficiencies to be achieved in delivery of 
 79.32  instruction due to use of telecommunications; 
 79.33     (5) a plan for development of a list of all courses 
 79.34  available in the region for delivery at a distance; 
 79.35     (6) a plan for coordinating and scheduling courses; and 
 79.36     (7) a plan for evaluation of costs, access, and outcomes. 
 80.1      <i>(Effective Date: Section 15 (Laws 1995, First Special</i> 
 80.2   <i>Session chapter 3, article 12, section 7) is effective the day</i> 
 80.3   <i>following final enactment.)</i> 
 80.4      Sec. 16.  Laws 1997, First Special Session chapter 4, 
 80.5   article 9, section 13, is amended to read: 
 80.6      Sec. 13.  [REPEALER.] 
 80.7      (a) Minnesota Statutes 1996, section 124C.74, is repealed 
 80.8   effective July 1, ~~1999~~ 2001.  
 80.9      (b) Minnesota Statutes 1996, section 134.46, is repealed. 
 80.10     <i>(Effective Date:  Section 16 (Laws 1997, First Special</i> 
 80.11  <i>Session chapter 4, article 9, section 13) is effective the day</i> 
 80.12  <i>following final enactment.)</i> 
 80.13     Sec. 17.  [REORGANIZATION DEBT; HOWARD 
 80.14  LAKE-WAVERLY-WINSTED.] 
 80.15     Notwithstanding Laws 1994, chapter 647, article 6, section 
 80.16  38, or any other law to the contrary, the unreserved operating 
 80.17  fund balance used to compute the reorganization operating debt 
 80.18  levy authority for independent school district No. 2687, Howard 
 80.19  Lake-Waverly-Winsted, is June 30, 1995. 
 80.20     <i>(Effective Date:  Section 17 (Howard Lake) is effective</i> 
 80.21  <i>retroactive to July 1, 1996.)</i> 
 80.22     Sec. 18.  [FISCAL YEARS 2000 AND 2001 DECLINING PUPIL UNIT 
 80.23  AID; ADA-BORUP; WARREN-ALVARADO-OSLO; BRECKENRIDGE; EAST GRAND 
 80.24  FORKS; KITTSON CENTRAL; ARGYLE-STEPHEN; CLIMAX.] 
 80.25     Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
 80.26  only, independent school district Nos. 2854, Ada-Borup; 846, 
 80.27  Breckenridge; 595, East Grand Forks; 2176, Warren-Alvarado-Oslo; 
 80.28  2171, Kittson Central; 2856, Argyle-Stephen; and 592, Climax, 
 80.29  are eligible for declining pupil unit aid equal to the product 
 80.30  of the general education formula allowance for fiscal year 2000 
 80.31  times 50 percent of the difference between the districts' actual 
 80.32  pupil units for the 1996-1997 school year and the districts' 
 80.33  actual pupil units for the 1999-2000 school year. 
 80.34     Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
 80.35  independent school district Nos. 2854, Ada-Borup; 846, 
 80.36  Breckenridge; 595, East Grand Forks; 2176, Warren-Alvarado-Oslo; 
 81.1   2171, Kittson Central; 2856, Argyle-Stephen; and 592, Climax, 
 81.2   are eligible for declining pupil unit aid equal to the product 
 81.3   of the general education formula allowance for fiscal year 2001 
 81.4   times 25 percent of the difference between the districts' actual 
 81.5   pupil units for the 1996-1997 school year and the districts' 
 81.6   actual pupil units for the 2000-2001 school year. 
 81.7      Sec. 19.  [APPROPRIATIONS.] 
 81.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 81.9   LEARNING.] The sums indicated in this section are appropriated 
 81.10  from the general fund to the department of children, families, 
 81.11  and learning for the fiscal years designated.  
 81.12     Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
 81.13  aid according to Minnesota Statutes, section 123B.57, 
 81.14  subdivision 5: 
 81.15       $14,528,000    .....     2000 
 81.16       $14,957,000    .....     2001 
 81.17     The 2000 appropriation includes $1,415,000 for 1999 and 
 81.18  $13,113,000 for 2000.  
 81.19     The 2001 appropriation includes $1,456,000 for 2000 and 
 81.20  $13,501,000 for 2001.  
 81.21     Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
 81.22  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 81.23       $33,165,000    .....     2000
 81.24       $32,057,000    .....     2001
 81.25     The 2000 appropriation includes $3,842,000 for 1999 and 
 81.26  $29,323,000 for 2000. 
 81.27     The 2001 appropriation includes $3,256,000 for 2000 and 
 81.28  $28,801,000 for 2001. 
 81.29     Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
 81.30  interactive television (ITV) aid under Minnesota Statutes, 
 81.31  section 126C.40, subdivision 4: 
 81.32       $4,197,000     .....     2000
 81.33       $2,851,000     .....     2001
 81.34     The 2000 appropriation includes $405,000 for 1999 and 
 81.35  $3,792,000 for 2000. 
 81.36     The 2001 appropriation includes $421,000 for 2000 and 
 82.1   $2,430,000 for 2001. 
 82.2      Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
 82.3   alternative facilities bonding aid, according to Minnesota 
 82.4   Statutes, section 123B.59: 
 82.5        $19,058,000    .....     2000 
 82.6        $19,286,000    .....     2001 
 82.7      The 2000 appropriation includes $1,700,000 for 2000 and 
 82.8   $17,358,000 for 2001. 
 82.9      The 2001 appropriation includes $1,928,000 for 2000 and 
 82.10  $17,358,000 for 2001. 
 82.11     Subd. 6.  [COOPERATIVE SECONDARY FACILITY; PLANNING AND 
 82.12  EXPENSES.] For a grant and administrative expenses to facilitate 
 82.13  planning for a cooperative secondary facility under a joint 
 82.14  powers agreement for school district Nos. 411, Balaton, 402, 
 82.15  Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 
 82.16  Tyler: 
 82.17       $  100,000     .....     2000 
 82.18     Subd. 7.  [TELECOMMUNICATIONS ACCESS GRANTS.] (a) For 
 82.19  telecommunications access grants according to Minnesota 
 82.20  Statutes, section 125B.20: 
 82.21       $20,000,000     .....     2000 
 82.22     (b) Of the amount appropriated under paragraph (a), at 
 82.23  least $300,000 must be reserved for grants to intermediate 
 82.24  school districts. 
 82.25     (c) Any balance in the first year does not cancel but is 
 82.26  available in the second year.  This amount shall not be included 
 82.27  as part of the base for fiscal year 2002-2003. 
 82.28     Subd. 8.  [TECHNOLOGY GRANT; BATTLE LAKE.] (a)  For a 
 82.29  technology grant to independent school district No. 542, Battle 
 82.30  Lake: 
 82.31       $  266,000     .....     2000 
 82.32     (b) This appropriation is available until June 30, 2001. 
 82.33     Subd. 9.  [TECHNOLOGY GRANT; DASSEL-COKATO.] (a)  For a 
 82.34  technology grant to independent school district No. 466, 
 82.35  Dassel-Cokato: 
 82.36       $  200,000     .....     2000 
 83.1      (b) The technology grant must be used to purchase computer 
 83.2   hardware and software, install cable and wiring, improve 
 83.3   telecommunications access, and other technology improvements 
 83.4   designed to enhance student achievement. 
 83.5      (c) This appropriation is available until June 30, 2001. 
 83.6      Subd. 10.  [TECHNOLOGY GRANT; BIG LAKE.] (a) For a 
 83.7   technology grant to independent school district No. 727, Big 
 83.8   Lake: 
 83.9        $  150,000     .....     2000 
 83.10     (b) This appropriation is available until June 30, 2001. 
 83.11     Subd. 11.  [TECHNOLOGY GRANT; MONTICELLO.] (a)  For a 
 83.12  technology grant to independent school district No. 882, 
 83.13  Monticello: 
 83.14       $  200,000     .....     2000 
 83.15     (b) This appropriation is available until June 30, 2001. 
 83.16     Subd. 12.  [TECHNOLOGY GRANT; FRAZEE.] (a) For a technology 
 83.17  grant to independent school district No. 23, Frazee: 
 83.18       $   50,000     .....     2000 
 83.19     (b) The technology grant must be used to purchase computer 
 83.20  hardware and software, install cable and wiring, improve 
 83.21  telecommunications access, and other technology improvements 
 83.22  designed to enhance student achievement. 
 83.23     (c) This appropriation is available until June 30, 2001. 
 83.24     Subd. 13.  [TECHNOLOGY GRANT; HAYFIELD.] (a) For a 
 83.25  technology grant to independent school district No. 203, 
 83.26  Hayfield: 
 83.27       $  144,000     .....     2000 
 83.28     (b) The grant must be used to purchase and install cabling 
 83.29  and wiring, provide network and Internet capabilities, purchase 
 83.30  new computers, and ensure appropriate telecommunications access 
 83.31  throughout the school district. 
 83.32     (c) This appropriation is available until June 30, 2001. 
 83.33     Subd. 14.  [TECHNOLOGY GRANT; KENYON-WANAMINGO.] (a) For a 
 83.34  technology grant to independent school district No. 2172, 
 83.35  Kenyon-Wanamingo: 
 83.36       $   75,000     .....     2000 
 84.1      (b) The technology grant must be used to purchase computer 
 84.2   hardware and software, install cable and wiring, improve 
 84.3   telecommunications access, and other technology improvements 
 84.4   designed to enhance student achievement. 
 84.5      (c) This appropriation is available until June 30, 2001. 
 84.6      Subd. 15.  [TECHNOLOGY GRANT; PILLAGER.] (a) For a 
 84.7   technology grant to independent school district No. 116, 
 84.8   Pillager: 
 84.9        $  200,000     .....     2000 
 84.10     (b) The technology grant must be used to purchase computer 
 84.11  hardware and software, install cable and wiring, improve 
 84.12  telecommunications access, and other technology improvements 
 84.13  designed to enhance student achievement. 
 84.14     (c) This appropriation is available until June 30, 2001. 
 84.15     Subd. 16.  [TECHNOLOGY GRANT; LE CENTER.] (a) For a 
 84.16  technology integration grant to independent school district No. 
 84.17  392, Le Center:  
 84.18       $  200,000     .....     2000 
 84.19     (b) The grant may be used for facilities review, land 
 84.20  acquisition costs, or for technology purposes designed to 
 84.21  demonstrate successful and effective uses of technology for 
 84.22  students and teachers to improve student achievement. 
 84.23     (c) This appropriation is available until June 30, 2001. 
 84.24     Subd. 17.  [COMMUNITY RESOURCE CENTER; NORTHFIELD.] (a) For 
 84.25  a grant to independent school district No. 659, Northfield, for 
 84.26  the Northfield community resource center: 
 84.27       $  150,000     .....     2000 
 84.28     (b) This appropriation is available to establish a 
 84.29  collaborative community resource center.  The Northfield 
 84.30  community resource center must involve other governmental units 
 84.31  and encourage participation with nonpublic agencies, 
 84.32  foundations, and private donors. 
 84.33     (c) This appropriation is available until June 30, 2001. 
 84.34     Subd. 18.  [DISASTER RELIEF FACILITIES GRANT; ST. 
 84.35  PETER.] (a) For a disaster relief facilities grant to 
 84.36  independent school district No. 508, St. Peter: 
 85.1        $  541,000     .....     2000 
 85.2      (b) This grant is for facilities replacements costs not 
 85.3   covered by the district's insurance settlement or through 
 85.4   federal emergency management agency payments. 
 85.5      Subd. 19.  [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 
 85.6   a grant to independent school district No. 81, Comfrey, for 
 85.7   losses related to the March 29, 1998 tornado: 
 85.8        $  325,000     .....     2000 
 85.9      Subd. 20.  [OPERATING LOSSES; ST. PETER.] For a grant to 
 85.10  independent school district No. 508, St. Peter, to ameliorate 
 85.11  general fund operating losses associated with the March, 1998 
 85.12  tornado: 
 85.13       $  211,000     .....     2000 
 85.14       $  282,000     .....     2001 
 85.15     Subd. 21.  [FLOODS; DECLINING PUPIL AID.] For declining 
 85.16  pupil aid under section 18: 
 85.17       $1,409,000     .....     2000 
 85.18       $  869,000     .....     2001 
 85.19     Sec. 20.  [REPEALER.] 
 85.20     (a) Minnesota Statutes 1998, section 123B.64, subdivision 
 85.21  4, is repealed effective for revenue for fiscal year 2000. 
 85.22     (b) Minnesota Statutes 1998, section 123B.64, subdivisions 
 85.23  1, 2, and 3, are repealed effective for revenue for fiscal year 
 85.24  2001. 
 85.25     Sec. 21.  [REVISOR INSTRUCTION.] 
 85.26     In the next and subsequent editions of Minnesota Statutes, 
 85.27  the revisor shall codify section 15 as Minnesota Statutes, 
 85.28  section 125B.21. 
 85.29     Sec. 22.  [EFFECTIVE DATES.] 
 85.30     When preparing the prekindergarten through grade 12 
 85.31  education conference committee report for adoption by the 
 85.32  legislature, the revisor shall combine all effective date 
 85.33  notations in this article into this effective dates section. 
 85.34                             ARTICLE 5
 85.35                        EDUCATION EXCELLENCE
 85.36     Section 1.  Minnesota Statutes 1998, section 120A.22, 
 86.1   subdivision 5, is amended to read: 
 86.2      Subd. 5.  [AGES AND TERMS.] (a) Every child between seven 
 86.3   and 16 years of age must receive instruction.  A child enrolled 
 86.4   in a public school must receive a minimum of 170 days of student 
 86.5   instruction or its equivalent consistent with section 120A.41.  
 86.6   Every child under the age of seven who is enrolled in a half-day 
 86.7   kindergarten, or a full-day kindergarten program on alternate 
 86.8   days, or other kindergarten programs shall receive instruction.  
 86.9   Except as provided in subdivision 6, a parent may withdraw a 
 86.10  child under the age of seven from enrollment at any time. 
 86.11     (b) A school district by annual board action may require 
 86.12  children subject to this subdivision to receive instruction in 
 86.13  summer school.  A district that acts to require children to 
 86.14  receive instruction in summer school shall establish at the time 
 86.15  of its action the criteria for determining which children must 
 86.16  receive instruction. 
 86.17     Sec. 2.  Minnesota Statutes 1998, section 120A.41, is 
 86.18  amended to read: 
 86.19     120A.41 [LENGTH OF SCHOOL YEAR; MINIMUM NUMBER OF DAYS OF 
 86.20  INSTRUCTION.] 
 86.21     For the 1999-2000 school year and later, a school board's 
 86.22  annual school calendar must include at least ~~three~~ 
 86.23  ~~additional~~ 170 days of student instruction ~~beyond the number of~~ 
 86.24  ~~days of student instruction the board formally adopted as its~~ 
 86.25  ~~school calendar at the beginning of the 1996-1997 school year.~~, 
 86.26  not including summer school, or the equivalent of 170 days of 
 86.27  student instruction in a district operating a flexible school 
 86.28  year program, and at least 175 days when school is in session. 
 86.29  For grades 1 to 12, days devoted to parent-teacher conferences, 
 86.30  teachers' workshops, or other staff development opportunities 
 86.31  are not part of the minimum number of days of student 
 86.32  instruction.  Days devoted to meetings authorized or called by 
 86.33  the commissioner are not part of the required minimum number of 
 86.34  days of student instruction. 
 86.35     <i>(Effective Date:  Section 2 (120A.41) is effective for the</i> 
 86.36  <i>1999-2000 school year and thereafter.)</i> 
 87.1      Sec. 3.  Minnesota Statutes 1998, section 122A.07, 
 87.2   subdivision 1, is amended to read: 
 87.3      Subdivision 1.  [APPOINTMENT OF MEMBERS.] The board of 
 87.4   teaching consists of 11 members appointed by the governor~~, with~~ 
 87.5   ~~the advice and consent of the senate~~.  Membership terms, 
 87.6   compensation of members, removal of members, the filling of 
 87.7   membership vacancies, and fiscal year and reporting requirements 
 87.8   are as provided in sections 214.07 to 214.09.  No member may be 
 87.9   reappointed for more than one additional term. 
 87.10     <i>(Effective Date:  Section 3 (122A.07, subdivision 1) is</i> 
 87.11  <i>effective the day following final enactment, and applies</i> 
 87.12  <i>retroactively to appointments to the board made before that</i> 
 87.13  <i>date, so that senate confirmation is not required for any</i> 
 87.14  <i>pending appointment.)</i> 
 87.15     Sec. 4.  Minnesota Statutes 1998, section 122A.18, is 
 87.16  amended by adding a subdivision to read: 
 87.17     Subd. 7a.  [SUBSTITUTE TEACHER LICENSES.] (a) The board of 
 87.18  teaching may grant a license limited to substitute teaching to a 
 87.19  person who is enrolled in and making satisfactory progress in a 
 87.20  board-approved teacher program and who has successfully 
 87.21  completed student teaching.  This license shall be valid for one 
 87.22  year or until the person successfully completes the teacher 
 87.23  preparation program, whichever occurs first. 
 87.24     (b) The department of children, families, and learning 
 87.25  shall develop procedures to expeditiously issue licenses under 
 87.26  paragraph (a).  Upon receipt of a person's application for 
 87.27  licensure and other required documents, the department shall 
 87.28  complete processing of the application within one week. 
 87.29     Sec. 5.  Minnesota Statutes 1998, section 122A.60, 
 87.30  subdivision 3, is amended to read: 
 87.31     Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
 87.32  development committee must adopt a staff development plan for 
 87.33  improving student achievement of education outcomes.  The plan 
 87.34  must be consistent with education outcomes that the school board 
 87.35  determines.  The plan must include ongoing staff development 
 87.36  activities that contribute toward continuous improvement in 
 88.1   achievement of the following goals: 
 88.2      (1) improve student achievement of state and local 
 88.3   education standards in all areas of the curriculum by using best 
 88.4   practices methods; 
 88.5      (2) effectively meet the needs of a diverse student 
 88.6   population, including at-risk children, children with 
 88.7   disabilities, and gifted children, within the regular classroom 
 88.8   and other settings; 
 88.9      (3) provide an inclusive curriculum for a racially, 
 88.10  ethnically, and culturally diverse student population that is 
 88.11  consistent with the state education diversity rule and the 
 88.12  district's education diversity plan; 
 88.13     (4) improve staff ability to collaborate and consult with 
 88.14  one another and to resolve conflicts; 
 88.15     (5) effectively teach and model violence prevention policy 
 88.16  and curriculum that address issues of harassment and teach 
 88.17  nonviolent alternatives for conflict resolution; ~~and~~ 
 88.18     (6) provide teachers and other members of site-based 
 88.19  management teams with appropriate management and financial 
 88.20  management skills; and 
 88.21     (7) effectively mentor or support teachers new to the 
 88.22  school or district. 
 88.23     Sec. 6.  Minnesota Statutes 1998, section 122A.61, 
 88.24  subdivision 1, is amended to read: 
 88.25     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
 88.26  required to reserve an amount equal to at least one percent of 
 88.27  the basic revenue under section 126C.10, subdivision 2, for 
 88.28  in-service education for programs under section 120B.22, 
 88.29  subdivision 2, for staff development plans, including plans for 
 88.30  challenging instructional activities and experiences under 
 88.31  section 122A.60, and for curriculum development and programs, 
 88.32  other in-service education, teachers' workshops, teacher 
 88.33  conferences, the cost of substitute teachers staff development 
 88.34  purposes, and other related costs for staff development 
 88.35  efforts.  Districts may expend an additional amount of ~~basic~~ 
 88.36  unreserved revenue for staff development based on their needs. 
 89.1   With the exception of amounts reserved for staff development 
 89.2   from revenues allocated directly to school sites, the board must 
 89.3   initially allocate 50 percent of the reserved revenue to each 
 89.4   school site in the district on a per teacher basis, which must 
 89.5   be retained by the school site until used.  The board may retain 
 89.6   25 percent to be used for district wide staff development 
 89.7   efforts.  The remaining 25 percent of the revenue must first be 
 89.8   used to implement mentoring programs to assist teachers in the 
 89.9   first years of teaching in the district and then may be used to 
 89.10  make grants to school sites that demonstrate exemplary use of 
 89.11  allocated staff development revenue.  A grant may be used for 
 89.12  any purpose authorized under section 120B.22, subdivision 2, 
 89.13  122A.60, or for the costs of curriculum development and 
 89.14  programs, other in-service education, teachers' workshops, 
 89.15  teacher conferences, substitute teachers for staff development 
 89.16  purposes, and other staff development efforts, and determined by 
 89.17  the site decision-making team.  The site decision-making team 
 89.18  must demonstrate to the school board the extent to which staff 
 89.19  at the site have met the outcomes of the program.  The board may 
 89.20  withhold a portion of initial allocation of revenue if the staff 
 89.21  development outcomes are not being met. 
 89.22     Sec. 7.  Minnesota Statutes 1998, section 123B.36, 
 89.23  subdivision 1, is amended to read: 
 89.24     Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
 89.25  purposes of this subdivision, "home school" means a home school 
 89.26  as defined in sections 120A.22 and 120A.24 with five or fewer 
 89.27  students receiving instruction.  
 89.28     (b) A school board is authorized to require payment of fees 
 89.29  in the following areas: 
 89.30     (1) in any program where the resultant product, in excess 
 89.31  of minimum requirements and at the pupil's option, becomes the 
 89.32  personal property of the pupil; 
 89.33     (2) admission fees or charges for extra curricular 
 89.34  activities, where attendance is optional and where the admission 
 89.35  fees or charges a student must pay to attend or participate in 
 89.36  an extracurricular activity is the same for all students, 
 90.1   regardless of whether the student is enrolled in a public or a 
 90.2   home school; 
 90.3      (3) a security deposit for the return of materials, 
 90.4   supplies, or equipment; 
 90.5      (4) personal physical education and athletic equipment and 
 90.6   apparel, although any pupil may personally provide it if it 
 90.7   meets reasonable requirements and standards relating to health 
 90.8   and safety established by the board; 
 90.9      (5) items of personal use or products that a student has an 
 90.10  option to purchase such as student publications, class rings, 
 90.11  annuals, and graduation announcements; 
 90.12     (6) fees specifically permitted by any other statute, 
 90.13  including but not limited to section 171.05, subdivision 2; 
 90.14  provided (i) driver education fees do not exceed the actual cost 
 90.15  to the school and school district of providing driver education, 
 90.16  and (ii) the driver education courses are open to enrollment to 
 90.17  persons between the ages of 15 and 18 who reside or attend 
 90.18  school in the school district; 
 90.19     (7) field trips considered supplementary to a district 
 90.20  educational program; 
 90.21     (8) any authorized voluntary student health and accident 
 90.22  benefit plan; 
 90.23     (9) for the use of musical instruments owned or rented by 
 90.24  the district, a reasonable rental fee not to exceed either the 
 90.25  rental cost to the district or the annual depreciation plus the 
 90.26  actual annual maintenance cost for each instrument; 
 90.27     (10) transportation of pupils to and from extra curricular 
 90.28  activities conducted at locations other than school, where 
 90.29  attendance is optional; 
 90.30     (11) transportation of pupils to and from school for which 
 90.31  aid for fiscal year 1996 is not authorized under Minnesota 
 90.32  Statutes 1994, section 124.223, subdivision 1, and for which 
 90.33  levy for fiscal year 1996 is not authorized under Minnesota 
 90.34  Statutes 1994, section 124.226, subdivision 5, if a district 
 90.35  charging fees for transportation of pupils establishes 
 90.36  guidelines for that transportation to ensure that no pupil is 
 91.1   denied transportation solely because of inability to pay; 
 91.2      (12) motorcycle classroom education courses conducted 
 91.3   outside of regular school hours; provided the charge must not 
 91.4   exceed the actual cost of these courses to the school district; 
 91.5      (13) transportation to and from post-secondary institutions 
 91.6   for pupils enrolled under the post-secondary enrollment options 
 91.7   program under section 123B.88, subdivision 22.  Fees collected 
 91.8   for this service must be reasonable and must be used to reduce 
 91.9   the cost of operating the route.  Families who qualify for 
 91.10  mileage reimbursement under section 124D.09, subdivision 22, may 
 91.11  use their state mileage reimbursement to pay this fee.  If no 
 91.12  fee is charged, districts must allocate costs based on the 
 91.13  number of pupils riding the route. 
 91.14     <i>(Effective Date:  Section 7 (123B.36, subdivision 1) is</i> 
 91.15  <i>effective for the 1999-2000 school year and later.)</i> 
 91.16     Sec. 8.  Minnesota Statutes 1998, section 123B.49, 
 91.17  subdivision 4, is amended to read: 
 91.18     Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
 91.19  (a) The board may take charge of and control all extracurricular 
 91.20  activities of the teachers and children of the public schools in 
 91.21  the district.  Extracurricular activities means all direct and 
 91.22  personal services for ~~public school~~ pupils for their enjoyment 
 91.23  that are managed and operated under the guidance of an adult or 
 91.24  staff member.  The board shall allow all resident pupils 
 91.25  receiving instruction in a home school as defined in section 
 91.26  123B.36, subdivision 1, paragraph (a), to be eligible to fully 
 91.27  participate in extracurricular activities on the same basis as 
 91.28  public school students. 
 91.29     (b) Extracurricular activities have all of the following 
 91.30  characteristics: 
 91.31     (1) they are not offered for school credit nor required for 
 91.32  graduation; 
 91.33     (2) they are generally conducted outside school hours, or 
 91.34  if partly during school hours, at times agreed by the 
 91.35  participants, and approved by school authorities; 
 91.36     (3) the content of the activities is determined primarily 
 92.1   by the pupil participants under the guidance of a staff member 
 92.2   or other adult. 
 92.3      (c) If the board does not take charge of and control 
 92.4   extracurricular activities, these activities shall be 
 92.5   self-sustaining with all expenses, except direct salary costs 
 92.6   and indirect costs of the use of school facilities, met by dues, 
 92.7   admissions, or other student fundraising events.  The general 
 92.8   fund must reflect only those salaries directly related to and 
 92.9   readily identified with the activity and paid by public funds.  
 92.10  Other revenues and expenditures for extra curricular activities 
 92.11  must be recorded according to the "Manual of Instruction for 
 92.12  Uniform Student Activities Accounting for Minnesota School 
 92.13  Districts and Area Vocational-Technical Colleges."  
 92.14  Extracurricular activities not under board control must have an 
 92.15  annual financial audit and must also be audited annually for 
 92.16  compliance with this section. 
 92.17     (d) If the board takes charge of and controls 
 92.18  extracurricular activities, any or all costs of these activities 
 92.19  may be provided from school revenues and all revenues and 
 92.20  expenditures for these activities shall be recorded in the same 
 92.21  manner as other revenues and expenditures of the district.  
 92.22     (e) If the board takes charge of and controls 
 92.23  extracurricular activities, the teachers or pupils in the 
 92.24  district must not participate in such activity, nor shall the 
 92.25  school name or any allied name be used in connection therewith, 
 92.26  except by consent and direction of the board. 
 92.27     <i>(Effective Date:  Section 8 (123B.49, subdivision 4) is</i> 
 92.28  <i>effective for the 1999-2000 school year and later.)</i> 
 92.29     Sec. 9.  Minnesota Statutes 1998, section 124D.10, 
 92.30  subdivision 3, is amended to read: 
 92.31     Subd. 3.  [SPONSOR; GRANT.] A school board, intermediate 
 92.32  school district school board, education cooperative board, town 
 92.33  or city governing entity, private college, community college, 
 92.34  state university, technical college, or the University of 
 92.35  Minnesota may sponsor one or more charter schools. 
 92.36     Sec. 10.  Minnesota Statutes 1998, section 124D.10, is 
 93.1   amended by adding a subdivision to read: 
 93.2      Subd. 3a.  [CHARTER SCHOOL APPEALS BOARD.] The commissioner 
 93.3   shall appoint a charter school appeals board of nine members.  
 93.4   The board must review and approve or disapprove charter school 
 93.5   applications and requests for waivers.  The board must provide 
 93.6   outreach and technical assistance to sponsors. 
 93.7      <i>(Effective date:  Section 10 (124D.10, subdivision 3a) is</i> 
 93.8   <i>effective June 30, 2000, to be consistent with sections 22 (Laws</i> 
 93.9   <i>1998, chapter 398, article 6, section 38) and 23 (Laws 1998,</i> 
 93.10  <i>chapter 398, article 6, section 39).)</i> 
 93.11     Sec. 11.  Minnesota Statutes 1998, section 124D.10, 
 93.12  subdivision 4, is amended to read: 
 93.13     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 93.14  authorize one or more licensed teachers under section 122A.18, 
 93.15  subdivision 1, to operate a charter school subject to approval 
 93.16  by the state board.  A board must vote on charter school 
 93.17  application for sponsorship no later than 90 days after 
 93.18  receiving the application.  After 90 days, the applicant may 
 93.19  apply to the state board.  If a board elects not to sponsor a 
 93.20  charter school, the applicant may appeal the board's decision to 
 93.21  the state board ~~if two members of the board voted to sponsor the~~ 
 93.22  ~~school~~.  If the state board authorizes the school, the state 
 93.23  board must sponsor the school according to this section.  The 
 93.24  school must be organized and operated as a cooperative under 
 93.25  chapter 308A or nonprofit corporation under chapter 317A.  
 93.26     (b) Before the operators may form and operate a school, the 
 93.27  sponsor must file an affidavit with the state board stating its 
 93.28  intent to authorize a charter school.  The affidavit must state 
 93.29  the terms and conditions under which the sponsor would authorize 
 93.30  a charter school.  The state board must approve or disapprove 
 93.31  the sponsor's proposed authorization within 60 days of receipt 
 93.32  of the affidavit.  Failure to obtain state board approval 
 93.33  precludes a sponsor from authorizing the charter school that was 
 93.34  the subject of the affidavit.  
 93.35     (c) The operators authorized to organize and operate a 
 93.36  school must hold an election for members of the school's board 
 94.1   of directors in a timely manner after the school is operating.  
 94.2   Any staff members who are employed at the school, including 
 94.3   teachers providing instruction under a contract with a 
 94.4   cooperative, and all parents of children enrolled in the school 
 94.5   may participate in the election.  Licensed teachers employed at 
 94.6   the school, including teachers providing instruction under a 
 94.7   contract with a cooperative, must be a majority of the members 
 94.8   of the board of directors, unless the state board waives the 
 94.9   requirement for the school.  A provisional board may operate 
 94.10  before the election of the school's board of directors.  Board 
 94.11  of director meetings must comply with section 471.705.  A 
 94.12  charter school established under section 124D.101 must elect a 
 94.13  board of directors under this paragraph.  
 94.14     (d) The granting or renewal of a charter by a sponsoring 
 94.15  entity must not be conditioned upon the bargaining unit status 
 94.16  of the employees of the school.  
 94.17     Sec. 12.  Minnesota Statutes 1998, section 124D.10, 
 94.18  subdivision 5, is amended to read: 
 94.19     Subd. 5.  [CONVERSION OF EXISTING SCHOOLS.] A board may 
 94.20  convert one or more of its existing schools to charter schools 
 94.21  under this section if ~~90 percent~~ the majority of the full-time 
 94.22  teachers at the school sign a petition seeking conversion.  The 
 94.23  conversion must occur at the beginning of an academic year.  
 94.24     Sec. 13.  Minnesota Statutes 1998, section 124D.10, 
 94.25  subdivision 6, is amended to read: 
 94.26     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
 94.27  charter school must be in the form of a written contract signed 
 94.28  by the sponsor and the board of directors of the charter 
 94.29  school.  The contract must be completed within 45 days of the 
 94.30  date the state board approves the sponsor's proposed 
 94.31  authorization.  The contract for a charter school must be in 
 94.32  writing and contain at least the following: 
 94.33     (1) a description of a program that carries out one or more 
 94.34  of the purposes in subdivision 1; 
 94.35     (2) specific outcomes pupils are to achieve under 
 94.36  subdivision 10; 
 95.1      (3) admission policies and procedures; 
 95.2      (4) management and administration of the school; 
 95.3      (5) requirements and procedures for program and financial 
 95.4   audits; 
 95.5      (6) how the school will comply with subdivisions 8, 13, 16, 
 95.6   and 23; 
 95.7      (7) assumption of liability by the charter school; 
 95.8      (8) types and amounts of insurance coverage to be obtained 
 95.9   by the charter school; 
 95.10     (9) the term of the contract, which may be up to three 
 95.11  years; and 
 95.12     (10) if the board of directors or the operators of the 
 95.13  charter school provide special instruction and services for 
 95.14  children with a disability under sections 125A.03 to 125A.24, 
 95.15  and 125A.65, a description of the financial parameters within 
 95.16  which the charter school will operate to provide the special 
 95.17  instruction and services to children with a disability. 
 95.18     Sec. 14.  Minnesota Statutes 1998, section 124D.10, 
 95.19  subdivision 10, is amended to read: 
 95.20     Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
 95.21  design its programs to at least provide instruction in the 
 95.22  subject areas under section 120A.22, subdivision 9, and meet the 
 95.23  ~~outcomes~~ basic skills requirements in reading, mathematics, and 
 95.24  writing adopted by the state board for public school students.  
 95.25  In the absence of state board requirements, the school must meet 
 95.26  the outcomes contained in the contract with the sponsor.  The 
 95.27  achievement levels of the outcomes contained in the contract may 
 95.28  exceed the achievement levels of any outcomes adopted by the 
 95.29  state board for public school students.  
 95.30     <i>(Effective Date:  Section 14 (124D.10, subdivision 10) is</i> 
 95.31  <i>effective for the 1999-2000 school year and later.)</i> 
 95.32     Sec. 15.  Minnesota Statutes 1998, section 124D.10, 
 95.33  subdivision 11, is amended to read: 
 95.34     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 95.35  charter school must employ or contract with necessary teachers, 
 95.36  as defined by section 122A.15, subdivision 1, who hold valid 
 96.1   licenses to perform the particular service for which they are 
 96.2   employed in the school.  The school may employ necessary 
 96.3   employees who are not required to hold teaching licenses to 
 96.4   perform duties other than teaching and may contract for other 
 96.5   services.  The school may discharge teachers and nonlicensed 
 96.6   employees.  A teacher, without holding a valid administrator's 
 96.7   license, may perform administrative, supervisory, or 
 96.8   instructional leadership duties. 
 96.9      The board of directors also shall decide matters related to 
 96.10  the operation of the school, including budgeting, curriculum and 
 96.11  operating procedures.  
 96.12     <i>(Effective Date:  Section 15 (124D.10, subdivision 11) is</i> 
 96.13  <i>effective for the 1999-2000 school year and later.)</i> 
 96.14     Sec. 16.  Minnesota Statutes 1998, section 124D.11, 
 96.15  subdivision 4, is amended to read: 
 96.16     Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
 96.17  it economically advantageous to rent or lease a building or land 
 96.18  for any instructional purposes and it determines that the total 
 96.19  operating capital revenue under section 126C.10, subdivision 13, 
 96.20  is insufficient for this purpose, it may apply to the 
 96.21  commissioner for building lease aid for this purpose.  Criteria 
 96.22  for aid approval and revenue uses shall be as defined for the 
 96.23  building lease levy in section 126C.40, subdivision 1, 
 96.24  paragraphs (a) and (b).  The amount of building lease aid per 
 96.25  pupil unit served for a charter school for any year shall not 
 96.26  exceed the lesser of (a) ~~80~~ 90 percent of the approved cost or 
 96.27  (b) the product of the pupil units served for the current school 
 96.28  year times ~~the sum of the state average debt redemption fund~~ 
 96.29  ~~revenue plus capital revenue, according to section 126C.40, per~~ 
 96.30  ~~pupil unit served for the current fiscal year~~ $1,500. 
 96.31     Sec. 17.  Minnesota Statutes 1998, section 124D.11, 
 96.32  subdivision 6, is amended to read: 
 96.33     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 96.34  school is eligible to receive other aids, grants, and revenue 
 96.35  according to chapters 120A to 129C, as though it were a district.
 96.36  ~~except that, notwithstanding section 127A.45, subdivision 3, the~~ 
 97.1   ~~payments must be of an equal amount on each of the 23 payment~~ 
 97.2   ~~dates unless a charter school is in its first year of operation~~ 
 97.3   ~~in which case it shall receive on its first payment date ten~~ 
 97.4   ~~percent of its cumulative amount guaranteed for the year and 22~~ 
 97.5   ~~payments of an equal amount thereafter the sum of which shall be~~ 
 97.6   ~~90 percent of the cumulative amount guaranteed.  However, it~~ 
 97.7      (b) Notwithstanding paragraph (a), a charter school may not 
 97.8   receive aid, a grant, or revenue if a levy is required to obtain 
 97.9   the money, except as otherwise provided in this section.  
 97.10     (c) Federal aid received by the state must be paid to the 
 97.11  school, if it qualifies for the aid as though it were a school 
 97.12  district. 
 97.13     ~~(b)~~ (d) A charter school may receive money from any source 
 97.14  for capital facilities needs.  In the year-end report to the 
 97.15  state board of education, the charter school shall report the 
 97.16  total amount of funds received from grants and other outside 
 97.17  sources. 
 97.18     Sec. 18.  Minnesota Statutes 1998, section 124D.11, 
 97.19  subdivision 7, is amended to read: 
 97.20     Subd. 7.  [USE OF STATE MONEY.] Money received from the 
 97.21  state may not be used to purchase land or buildings unless the 
 97.22  written contract for a charter school provides for a charter 
 97.23  school program operated jointly by the board of directors of the 
 97.24  charter school and a residential academy under Laws 1998, 
 97.25  chapter 398, article 5, section 46, in which case money may be 
 97.26  used to purchase land or buildings.  The school may own land and 
 97.27  buildings if obtained through nonstate sources. 
 97.28     Sec. 19.  Minnesota Statutes 1998, section 124D.11, 
 97.29  subdivision 8, is amended to read: 
 97.30     Subd. 8.  [START-UP COSTS.] (a) During the first two years 
 97.31  of a charter school's operation, the charter school is eligible 
 97.32  for aid to pay for start-up costs and additional operating costs.
 97.33     (b) In the first year of operation, start-up cost aid 
 97.34  equals the ~~greater~~ lesser of: 
 97.35     (1) ~~$50,000~~ $250,000 per charter school; or 
 97.36     (2) ~~$500~~ $50,000 plus the product of $2,000 times the 
 98.1   charter school's pupil units served for that year. 
 98.2      (c) In the second year of operation, start-up cost aid 
 98.3   equals the greater of: 
 98.4      (1) $50,000 per charter school; or 
 98.5      (2) $500 times the charter school's pupil units served for 
 98.6   that year. 
 98.7      (d) A charter school in its third year of operation or 
 98.8   later is eligible for one additional year of start-up cost aid 
 98.9   equal to $500 times the increase in its pupil units in the 
 98.10  current fiscal year over its pupil units served in the preceding 
 98.11  fiscal year if the charter school's board has adopted a 
 98.12  resolution substantially expanding the mission of the charter 
 98.13  school or substantially expanding the grades served by the 
 98.14  charter school. 
 98.15     (e) The department of children, families, and learning must 
 98.16  pay charter school start-up aid as follows: 
 98.17     (1) for any charter school not yet operating that qualifies 
 98.18  for aid under this subdivision, 90 percent of the start-up cost 
 98.19  aid must be paid within 60 days of the date on which the state 
 98.20  board of education approves the sponsor's proposed authorization 
 98.21  under section 124D.10, subdivision 4, clause (b); or 
 98.22     (2) in all other cases, 90 percent of the funding for 
 98.23  start-up costs to each eligible charter school within 45 days 
 98.24  after the first day of student attendance for that year. 
 98.25     Sec. 20.  Minnesota Statutes 1998, section 124D.11, is 
 98.26  amended by adding a subdivision to read: 
 98.27     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
 98.28  Notwithstanding section 127A.45, subdivision 3, aid payments for 
 98.29  the current fiscal year to a charter school not in its first 
 98.30  year of operation shall be of an equal amount on each of the 23 
 98.31  payment dates.  A charter school in its first year of operation 
 98.32  shall receive, on its first payment date, ten percent of its 
 98.33  cumulative amount guaranteed for the year and 22 payments of an 
 98.34  equal amount thereafter the sum of which shall be 90 percent of 
 98.35  the cumulative amount guaranteed. 
 98.36     (b) Notwithstanding paragraph (a) and section 127A.45, 
 99.1   subdivision 3, start-up cost aid must be paid according to 
 99.2   subdivision 8. 
 99.3      Sec. 21.  Minnesota Statutes 1998, section 125B.05, 
 99.4   subdivision 3, is amended to read: 
 99.5      Subd. 3.  [SOFTWARE DEVELOPMENT.] ~~The commissioner may~~ 
 99.6   ~~charge school districts or cooperative units for the actual cost~~ 
 99.7   ~~of software development used by the district or cooperative~~ 
 99.8   ~~unit.  Any amount received is annually appropriated to the~~ 
 99.9   ~~department of children, families, and learning for this~~ 
 99.10  ~~purpose.~~  A school district, charter school, or cooperative unit 
 99.11  may not implement a ~~payroll~~ financial, student, or staff 
 99.12  software system ~~after June 30, 1994,~~ until the system has been 
 99.13  reviewed by the department to ensure that it provides the 
 99.14  required data elements and format. 
 99.15     Sec. 22.  Laws 1998, chapter 398, article 6, section 38, is 
 99.16  amended to read: 
 99.17     Sec. 38.  [REPEALER.] 
 99.18     (a) Minnesota Statutes 1996, section 121.11, subdivisions 
 99.19  5, 7, 7b, 9, 11, 12, and 14; and Minnesota Statutes 1997 
 99.20  Supplement, section 121.11, subdivision 7e, are repealed 
 99.21  effective ~~December 31, 1999~~ June 30, 2000. 
 99.22     (b) Minnesota Statutes 1996, section 121.11, subdivision 
 99.23  7d, is repealed effective January 10, 1999. 
 99.24     (c) Minnesota Statutes 1996, section 124.647; and Minnesota 
 99.25  Statutes 1997 Supplement, section 169.452, are repealed. 
 99.26     <i>(Effective Date:  Section 22 (Laws 1998, chapter 398,</i> 
 99.27  <i>article 6, section 38) is effective the day following final</i> 
 99.28  <i>enactment.)</i> 
 99.29     Sec. 23.  Laws 1998, chapter 398, article 6, section 39, is 
 99.30  amended to read: 
 99.31     Sec. 39.  [EFFECTIVE DATES.] 
 99.32     (a) Sections 1 to 13 are effective ~~December 31, 1999~~ June 
 99.33  30, 2000. 
 99.34     (b) Sections 14, 28, 34, and 35 are effective the day 
 99.35  following final enactment. 
 99.36     (c) Sections 17, 25, and 26 are effective July 1, 1998. 
100.1      (d) Section 29 is effective for the 2000-2001 school year. 
100.2      (e) Section 36 is effective June 30, 1998. 
100.3      <i>(Effective Date:  Section 23 (Laws 1998, chapter 398,</i> 
100.4   <i>article 6, section 39) is effective the day following final</i> 
100.5   <i>enactment.)</i> 
100.6      Sec. 24.  [PILOT PROGRAM TO IMPROVE TEACHER TRAINING.] 
100.7      Subdivision 1.  [ESTABLISHMENT.] A pilot program is 
100.8   established to allow Minnesota school districts, in 
100.9   collaboration with accredited teacher preparation institutions, 
100.10  to offer undergraduate and graduate teacher training 
100.11  opportunities.  The program must provide teacher training 
100.12  opportunities that effectively address the needs of different 
100.13  types of schools, students, and teachers. 
100.14     Subd. 2.  [ELIGIBILITY; PROGRAM USES; EMPLOYMENT TERMS.] (a)
100.15  An applicant under this pilot program must be a school 
100.16  district.  The program must be used to assist in improving 
100.17  teacher education by placing teacher education students in 
100.18  elementary and secondary classrooms under the supervision of a 
100.19  licensed classroom teacher. 
100.20     (b) Each school district participating in this program may 
100.21  select the teacher training model that best promotes 
100.22  understanding the needs of each educational system or 
100.23  institution.  For example: 
100.24     (1) a public school educator may teach courses that assist 
100.25  in preparing future educators, or take professional development 
100.26  courses; or 
100.27     (2) a post-secondary teacher may teach courses at the 
100.28  school district and mentor student teachers.  Participation is 
100.29  not limited to one school or institution and may involve other 
100.30  participants including parent/community groups, teacher 
100.31  organizations, and business groups.  Participating schools and 
100.32  institutions are encouraged to develop program components that 
100.33  engage nontraditional teacher education students. 
100.34     (c) Temporary placements of teachers made under this 
100.35  program must not have a negative effect on participants' 
100.36  salaries, seniority, or other benefits.  Specifically, temporary 
101.1   placements of teachers may not displace or cause any reduction 
101.2   in the number of nonovertime hours worked, wages, or benefits of 
101.3   a currently employed teacher.  Notwithstanding Minnesota 
101.4   Statutes, sections 122A.16 and 123B.02, subdivision 14, a member 
101.5   of the staff of a post-secondary institution may teach in an 
101.6   elementary or secondary school or perform a service, agreed upon 
101.7   under this section, for which a license would otherwise be 
101.8   required without holding the applicable license.  In addition, a 
101.9   licensed educator employed by a school district may teach or 
101.10  perform a service, agreed upon under this section, at a 
101.11  post-secondary institution without meeting the applicable 
101.12  qualifications of the post-secondary institution.  A district is 
101.13  not subject to Minnesota Statutes, section 127A.43, as a result 
101.14  of entering into an agreement according to this section that 
101.15  enables a post-secondary educator to teach or provide services 
101.16  in the district.  All arrangements and details regarding an 
101.17  exchange must be mutually agreed to by each participating school 
101.18  district and post-secondary institution before implementing the 
101.19  exchange and must not violate any term or condition of the 
101.20  participating school district's collective bargaining agreement. 
101.21     (d) An educator who held a temporary position or an 
101.22  exchanged position under this section must be continued in or 
101.23  restored to the position previously held, or to a position of 
101.24  like seniority, status, and pay upon return.  Retirement 
101.25  benefits under an employer-sponsored pension or retirement plan 
101.26  must not be reduced because of time spent on an exchange or 
101.27  temporary position under this section. 
101.28     (e) An educator who is continued in or restored to a 
101.29  position under paragraph (d): 
101.30     (1) must be continued or restored without loss of 
101.31  seniority; and 
101.32     (2) may participate in insurance or other benefits offered 
101.33  by the employer under its established rules and practices. 
101.34     Subd. 3.  [APPLICATION PROCESS.] To participate in this 
101.35  pilot program, a school district must submit an application to 
101.36  the commissioner of children, families, and learning in the form 
102.1   and manner established by the commissioner.  The application 
102.2   must describe how the applicant will improve teacher education 
102.3   by providing undergraduate or graduate teacher training 
102.4   opportunities in order to effectively address the needs of 
102.5   different types of schools, students, and teachers, and how the 
102.6   applicant will use technology to implement the program.  The 
102.7   commissioner may require additional information from an 
102.8   applicant. 
102.9      Subd. 4.  [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 
102.10  selecting program participants, the commissioner must determine: 
102.11     (1) whether an applicant has met the requirements of this 
102.12  section; 
102.13     (2) whether the location of a program is particularly 
102.14  suitable for realizing the purpose of this section; 
102.15     (3) the number of teacher candidates, teachers, and 
102.16  students who would participate in the program; 
102.17     (4) the ability of the applicant to demonstrate the 
102.18  positive effect of the existing program on elementary and 
102.19  secondary students enrolled in a participating site by using 
102.20  standardized test scores, the rate at which students pass the 
102.21  state's reading, math, and writing basic skills tests, or other 
102.22  valid and reliable assessment measures; 
102.23     (5) whether accredited teacher preparation institutions and 
102.24  other organizations representing parents, business interests, 
102.25  and community groups are integral participants in the proposed 
102.26  program; and 
102.27     (6) the ability of the applicant to provide information 
102.28  about the program to interested school districts and 
102.29  post-secondary institutions. 
102.30     (b) The commissioner shall create an advisory committee 
102.31  composed of representatives of at least parents, the community, 
102.32  teachers, business groups, the state board of teaching, and 
102.33  accredited four-year, degree-granting institutions to review and 
102.34  recommend applicants to the commissioner.  The commissioner may 
102.35  select up to five applicants to participate in this program for 
102.36  the 1999-2000 school year and later.  Participants must be 
103.1   located throughout the state.  The commissioner must provide 
103.2   one-time start-up costs of up to $20,000 per participating site. 
103.3      Subd. 5.  [POST-SECONDARY INSTITUTION FUNDING.] 
103.4   Notwithstanding other law to the contrary, and consistent with 
103.5   subdivision 6, a post-secondary institution participating in 
103.6   this pilot program must provide the instructional costs of 
103.7   teacher education students and may charge the students the costs 
103.8   of tuition. 
103.9      Subd. 6.  [PARTICIPANTS' FEES.] A school district 
103.10  participating in this program may charge reasonable fees to 
103.11  teacher education students placed in an elementary or secondary 
103.12  classroom to receive teacher training. 
103.13     Subd. 7.  [EVALUATION.] The commissioner must contract with 
103.14  an independent qualified expert to evaluate the impact of the 
103.15  pilot program on teacher efficacy and student performance and 
103.16  present a report to the commissioner and the education 
103.17  committees of the legislature by February 15, 2005. 
103.18     <i>(Effective Date:  Section 24 (pilot program to improve</i> 
103.19  <i>teacher training) is effective the day following final</i> 
103.20  <i>enactment.)</i> 
103.21     Sec. 25.  [SALARY CREDIT FOR PRIOR EXPERIENCE AND 
103.22  TRAINING.] 
103.23     Notwithstanding other law to the contrary, and for purposes 
103.24  of determining the placement on the salary schedule of a program 
103.25  graduate of the collaborative urban educator, southeast Asian 
103.26  teacher licensure, or circles of support in educational 
103.27  leadership program, a school district that employs a program 
103.28  graduate may give additional credit on the salary schedule for 
103.29  that person's teaching experience and academic preparation 
103.30  attained while participating in the program, and also may 
103.31  consider the person's employment experience and academic 
103.32  preparation attained before enrolling in any of these three 
103.33  programs. 
103.34     <i>(Effective Date:  Section 25 (salary credit) is effective</i> 
103.35  <i>for the 1999-2000 school year.)</i> 
103.36     Sec. 26.  [GRANT CLARIFICATION.] 
104.1      Notwithstanding any other law to the contrary, the portion 
104.2   of the grant awarded to the Southwest Star Concept School for 
104.3   funds that were initially awarded, but not encumbered by July 1, 
104.4   1998, is available until June 30, 1999, to independent school 
104.5   district No. 330, Heron Lake-Okabena. 
104.6      <i>(Effective Date:  Section 26 (grant clarification) is</i> 
104.7   <i>effective retroactive to June 30, 1998.)</i> 
104.8      Sec. 27.  [CHANGES TO STATE BOARD OF EDUCATION.] 
104.9      The provisions of Laws 1998, chapter 398, article 5, 
104.10  section 55, and related sections apply except as provided under 
104.11  Minnesota Statutes, section 124D.10, subdivision 3a. 
104.12     Sec. 28.  [APPROPRIATIONS.] 
104.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
104.14  LEARNING.] The sums indicated in this section are appropriated 
104.15  from the general fund to the department of children, families, 
104.16  and learning for the fiscal years designated. 
104.17     Subd. 2.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
104.18  grant to independent school district No. 625, St. Paul, for the 
104.19  operation of a community-based school program: 
104.20       $3,000,000     .....     2000 
104.21     The school district must report to the legislature on the 
104.22  academic and social results of this program by January 15, 2000. 
104.23     Any balance in the first year does not cancel but is 
104.24  available in the second year.  This is a one-time appropriation. 
104.25     Subd. 3.  [RIGOROUS STANDARDS.] (a) For implementing 
104.26  rigorous academic standards under Minnesota Statutes, section 
104.27  120B.02: 
104.28       $ 8,458,000    .....     2000 
104.29       $ 8,358,000    .....     2001 
104.30     (b) Of this amount, $500,000 each year is for the 
104.31  department to contract with the independent office of 
104.32  educational accountability under Minnesota Statutes, section 
104.33  120B.31, subdivision 3. 
104.34     (c) $100,000 of the fiscal year 2000 amount is a one-time 
104.35  appropriation to the independent office of educational 
104.36  accountability to establish statistically reliable 
105.1   norm-referenced interpretations based upon nationally 
105.2   representative samples of students that align with districts' 
105.3   and schools' existing longitudinal norm-referenced databases for 
105.4   the results from the state's third and fifth grade reading, 
105.5   mathematics, and writing tests and the eighth grade basic skills 
105.6   reading and mathematics tests that comprise part of the 
105.7   statewide testing system under Minnesota Statutes, section 
105.8   120B.30, subdivision 1. 
105.9      (d) Consistent with establishing statistically reliable 
105.10  norm-referenced interpretations under paragraph (c), and the 
105.11  provisions in Minnesota Statutes, section 120B.30, subdivision 
105.12  1, paragraph (c), the independent office of educational 
105.13  accountability shall include in the comprehensive assessment 
105.14  system students' unweighted mean test scores in each tested 
105.15  subject excluding the test scores of any student whose score on 
105.16  a nationally normed English reading or English language arts 
105.17  achievement test is one-third of a standard deviation or more 
105.18  below the national average score and who has been in the United 
105.19  States for fewer than 24 months.  Students whose test scores are 
105.20  excluded under this paragraph remain subject to statewide 
105.21  testing requirements under Minnesota Statutes, section 120B.30 
105.22  and related provisions. 
105.23     (e) Any balance in the first year does not cancel but is 
105.24  available in the second year.  
105.25     Subd. 4.  [ADVANCED PLACEMENT AND INTERNATIONAL 
105.26  BACCALAUREATE PROGRAMS.] For the state advanced placement and 
105.27  international baccalaureate programs: 
105.28       $1,875,000     .....     2000 
105.29       $1,875,000     .....     2001 
105.30     Notwithstanding Minnesota Statutes, section 120B.13, 
105.31  subdivisions 1 and 2, $375,000 each year is for teachers to 
105.32  attend subject matter summer training programs and follow-up 
105.33  support workshops approved by the advanced placement or 
105.34  international baccalaureate programs.  The amount of the subsidy 
105.35  for each teacher attending an advanced placement or 
105.36  international baccalaureate summer training program or workshop 
106.1   shall be the same.  The commissioner shall determine the payment 
106.2   process and the amount of the subsidy. 
106.3      Notwithstanding Minnesota Statutes, section 120B.13, 
106.4   subdivision 3, in each year to the extent of available 
106.5   appropriations, the commissioner shall pay all examination fees 
106.6   for all students sitting for an advanced placement examination, 
106.7   international baccalaureate examination, or both.  If this 
106.8   amount is not adequate, the commissioner may pay less than the 
106.9   full examination fee. 
106.10     A teacher or team of teachers who teach an advanced 
106.11  placement or international baccalaureate course shall receive a 
106.12  stipend for each student in that course taught by the teacher or 
106.13  team of teachers who receives a three or better on the advanced 
106.14  placement or a four or better on the international baccalaureate 
106.15  examination that covers the subject matter of the course.  The 
106.16  commissioner shall determine the payment process and the amount 
106.17  of the teacher stipend ranging from $25 to $50 for each student 
106.18  receiving a qualifying score. 
106.19     A stipend awarded to a teacher or team of teachers under 
106.20  this subdivision shall not be a mandatory subject of bargaining 
106.21  under Minnesota Statutes, chapter 179A, or any other law and 
106.22  shall not be a term or condition of employment.  The amount of 
106.23  any award shall be final and shall not be subject to review by 
106.24  an arbitrator through any grievance or other process or by a 
106.25  court through any appeal process. 
106.26     Any balance in the first year does not cancel but is 
106.27  available in the second year. 
106.28     Subd. 5.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
106.29  grants to collaborative urban educator programs that prepare and 
106.30  license people of color to teach: 
106.31       $700,000        .....     2000
106.32       $700,000        .....     2001 
106.33     Any balance in the first year does not cancel but is 
106.34  available in the second year.  These are one-time appropriations.
106.35     Subd. 6.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
106.36  lease aid according to Minnesota Statutes, section 124D.11, 
107.1   subdivision 4: 
107.2        $2,992,000      .....     2000 
107.3        $3,616,000      .....     2001 
107.4      The 2000 appropriation includes $194,000 for 1999 and 
107.5   $2,798,000 for 2000. 
107.6      The 2001 appropriation includes $311,000 for 2000 and 
107.7   $3,305,000 for 2001.  
107.8      Subd. 7.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
107.9   school start-up cost aid under Minnesota Statutes, section 
107.10  124D.11, subdivision 8: 
107.11       $2,579,000     .....     2000 
107.12       $2,754,000      .....     2001 
107.13     The 2000 appropriation includes $100,000 for 1999 and 
107.14  $2,479,000 for 2000.  
107.15     The 2001 appropriation includes $275,000 for 1999 and 
107.16  $2,479,000 for 2001. 
107.17     Any balance in the first year does not cancel but is 
107.18  available in the second year.  This appropriation may also be 
107.19  used for grants to convert existing schools into charter schools.
107.20     If any balance remains after payments are made to charter 
107.21  schools in their first or second year of operation, a charter 
107.22  school in operation before the existence of charter school 
107.23  start-up aid may receive reimbursement of up to $50,000 for 
107.24  unreimbursed health and safety expenditures during the charter 
107.25  school's first two years of operation. 
107.26     Subd. 8.  [RESIDENTIAL ACADEMIES OPERATING COSTS.] For 
107.27  operating costs associated with the three residential academies 
107.28  created under Laws 1998, chapter 398, article 5, sections 46 and 
107.29  54, subdivision 3: 
107.30       $  405,000     .....     2000 
107.31       $1,246,000     .....     2001 
107.32     Any balance in the first year does not cancel but is 
107.33  available in the second year. 
107.34     Subd. 9.  [MINNESOTA TALENTED YOUTH MATH PROJECT.] For a 
107.35  grant to the South Central Service Cooperative for the Minnesota 
107.36  talented youth math project program operated by the South 
108.1   Central Service Cooperative and as fiscal agent for the talented 
108.2   youth math project programs established and operated by the 
108.3   Northwest Service Cooperative, Northeast Service Cooperative, 
108.4   North Central Service Cooperative, and Southwest/West Central 
108.5   Service Cooperative. 
108.6        $  145,000     .....     2000 
108.7        $  175,000     .....     2001 
108.8      Any balance in the first year does not cancel but is 
108.9   available in the second year.  This is a one-time appropriation. 
108.10     Subd. 10.  [PILOT PROGRAM TO IMPROVE TEACHER TRAINING.] For 
108.11  providing start-up costs to participants in the pilot program to 
108.12  improve teacher training: 
108.13       $  100,000     .....     2000 
108.14     The commissioner of children, families, and learning must 
108.15  award $20,000 in one-time start-up costs to independent school 
108.16  district No. 138, North Branch, if the district meets the 
108.17  requirements of section 24.  This is a one-time appropriation.  
108.18     This appropriation is available until June 30, 2001. 
108.19     Subd. 11.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
108.20  awards for national board for professional teaching standards 
108.21  certification and for regional coordinators to counsel and 
108.22  assist teacher candidates for the certification: 
108.23       $  300,000     .....     2000 
108.24     This appropriation is available until June 30, 2001.  This 
108.25  is a one-time appropriation. 
108.26     Subd. 12.  [CLASS SIZE PROJECT.] For a class size project 
108.27  in independent school district No. 12, Centennial, to 
108.28  demonstrate that significantly lower class size and 
108.29  instructor-to-learner ratios in a suburban community will result 
108.30  in measurable achievements for students, staff, and parents: 
108.31       $ 100,000       .....     2000 
108.32     This appropriation is available until June 30, 2001.  This 
108.33  is a one-time appropriation. 
108.34     Subd. 13.  [PROMOTING STUDENT SUCCESS IN KINDERGARTEN 
108.35  THROUGH GRADE 12.] For a program grant to independent school 
108.36  district No. 241, Albert Lea, to give at-risk children 
109.1   differentiated learning opportunities for developing learning 
109.2   readiness and language skills through a program that provides a 
109.3   17:1 student-teacher ratio, para-educator assistance, and an 
109.4   accommodation plan for each child: 
109.5        $  100,000     .....     2000 
109.6      This appropriation is available until June 30, 2001.  This 
109.7   is a one-time appropriation. 
109.8      Subd. 14.  [SCHOOL LINKED PREVENTION AND EARLY 
109.9   INTERVENTION.] For a grant to independent school district No. 
109.10  283, St. Louis Park, and the Aquila community together program: 
109.11       $   30,000     .....     2000 
109.12       $   30,000     .....     2001 
109.13     The purpose of the grant is to provide students in 
109.14  kindergarten through grade 6 with case management services, 
109.15  individual and group counseling, prevention education, and 
109.16  volunteers who serve as mentors or tutors for individual 
109.17  students and their families.  Any balance in the first year does 
109.18  not cancel but is available in the second year.  This is a 
109.19  one-time appropriation. 
109.20     Subd. 15.  [ALTERNATIVE FACILITIES DESIGN GRANT.] For a 
109.21  facilities grant to independent school district No. 495, Grand 
109.22  Meadow: 
109.23       $1,500,000     .....     2000 
109.24     The purpose of the grant is to demonstrate that a school 
109.25  constructed using monolithic dome construction techniques can 
109.26  provide operating and construction savings for school districts 
109.27  throughout the state.  The school district shall agree to 
109.28  provide the state with information and data about the potential 
109.29  benefits of this construction method.  The school district shall 
109.30  provide the state with an analysis of a monolithic dome as a 
109.31  suitable educational environment.  This is a one-time 
109.32  appropriation. 
109.33     Sec. 29.  [REPEALER.] 
109.34     (a) Minnesota Statutes 1998, section 124D.90, is repealed.  
109.35     (b) Minnesota Statutes 1998, section 135A.081, is repealed 
109.36  effective the day following final enactment.  If the effective 
110.1   date of this repeal is after May 1, 1999, the repeal shall be 
110.2   retroactive to May 1, 1999. 
110.3      Sec. 30.  [EFFECTIVE DATES.] 
110.4      When preparing the prekindergarten through grade 12 
110.5   education conference committee report for adoption by the 
110.6   legislature, the revisor shall combine all effective date 
110.7   notations in this article into this effective dates section. 
110.8                              ARTICLE 6 
110.9                            OTHER PROGRAMS 
110.10     Section 1.  Minnesota Statutes 1998, section 120A.24, 
110.11  subdivision 1, is amended to read: 
110.12     Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
110.13  charge of providing instruction to a child must submit the 
110.14  following information to the superintendent of the district in 
110.15  which the child resides: 
110.16     (1) by October 1 of each school year, the name, ~~age~~ birth 
110.17  date, and address of each child receiving instruction; 
110.18     (2) the name of each instructor and evidence of compliance 
110.19  with one of the requirements specified in section 120A.22, 
110.20  subdivision 10; 
110.21     (3) an annual instructional calendar; and 
110.22     (4) for each child instructed by a parent who meets only 
110.23  the requirement of section 120A.22, subdivision 10, clause (6), 
110.24  a quarterly report card on the achievement of the child in each 
110.25  subject area required in section 120A.22, subdivision 9. 
110.26     Sec. 2.  Minnesota Statutes 1998, section 123A.48, 
110.27  subdivision 10, is amended to read: 
110.28     Subd. 10.  [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 
110.29  board of any independent district maintaining a secondary 
110.30  school, the board of any common district maintaining a secondary 
110.31  school, all or part of whose land is included in the proposed 
110.32  new district, must, within 45 days of the approval of the plat 
110.33  by the commissioner, either adopt or reject the plan as proposed 
110.34  in the approved plat.  If the board of any such district 
110.35  entitled to act on the petition rejects the proposal, the 
110.36  proceedings are terminated and dismissed.  If any board fails to 
111.1   act on the plat within the time allowed, the proceedings are 
111.2   terminated.  If any school board is unable to obtain a majority 
111.3   of its members' votes to accept or reject the plat and plan, a 
111.4   petition of residents of the district unable to obtain a 
111.5   majority of votes equal to 20 percent of the votes cast in the 
111.6   last school district general election in that district may be 
111.7   submitted to the county auditor requesting a public vote to 
111.8   accept or reject the plat and plan.  The vote shall be scheduled 
111.9   on the next available election date.  The county auditor shall 
111.10  notify the commissioner of the scheduled vote, conduct the 
111.11  election in that district and certify the results of the 
111.12  election to the commissioner.  Other affected school boards that 
111.13  approve the plat and plan may choose to hold an election.  If 
111.14  elections are conducted in each affected school district, 
111.15  results shall be separate and a majority vote to approve the 
111.16  plat and plan must be reached in each of the affected 
111.17  districts.  If the plat and plan are rejected by the voters, a 
111.18  new plat and plan cannot be submitted, except by school board 
111.19  resolution in a district where the plat and plan were rejected, 
111.20  until January 1 of the year following the next school district 
111.21  general election.  
111.22     Sec. 3.  Minnesota Statutes 1998, section 123B.195, is 
111.23  amended to read: 
111.24     123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
111.25     Notwithstanding section 471.88, subdivision 5, a school 
111.26  board member may be newly employed or may continue to be 
111.27  employed by a school district as an employee only if there is a 
111.28  reasonable expectation at the beginning of the fiscal year or at 
111.29  the time the contract is entered into or extended that the 
111.30  amount to be earned by that officer under that contract or 
111.31  employment relationship will not exceed $5,000 in that fiscal 
111.32  year.  Notwithstanding section 122A.40 or 122A.41 or other law, 
111.33  if the officer does not receive ~~unanimous~~ majority approval to 
111.34  be initially employed or to continue in employment at a meeting 
111.35  at which all board members are present, that employment is 
111.36  immediately terminated and that officer has no further rights to 
112.1   employment while serving as a school board member in the 
112.2   district. 
112.3      Sec. 4.  Minnesota Statutes 1998, section 124D.94, 
112.4   subdivision 3, is amended to read: 
112.5      Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
112.6   the foundation shall consist of the commissioner of children, 
112.7   families, and learning~~, a member of the state board of education~~ 
112.8   ~~selected by the state board who shall serve as chair~~ and 20 
112.9   members to be appointed by the governor.  Of the 20 members 
112.10  appointed by the governor, eight shall represent a variety of 
112.11  education groups and 12 shall represent a variety of business 
112.12  groups.  The commissioner of children, families, and learning 
112.13  shall serve as secretary for the board of directors and provide 
112.14  administrative support to the foundation.  An executive 
112.15  committee of the foundation board composed of the board officers 
112.16  and chairs of board committees, may only advise and make 
112.17  recommendations to the foundation board. 
112.18     Sec. 5.  Minnesota Statutes 1998, section 124D.94, 
112.19  subdivision 6, is amended to read: 
112.20     Subd. 6.  [CONTRACTS.] The foundation board shall review 
112.21  and approve each contract of the board.  Each contract of the 
112.22  foundation board shall be subject to the same review and 
112.23  approval procedures as a contract of the ~~state board of~~ 
112.24  ~~education~~ department of children, families, and learning. 
112.25     Sec. 6.  Minnesota Statutes 1998, section 124D.94, 
112.26  subdivision 7, is amended to read: 
112.27     Subd. 7.  [FOUNDATION STAFF.] (a) The ~~state board~~ 
112.28  foundation board with review by the commissioner shall appoint 
112.29  the executive director and other staff who shall perform duties 
112.30  and have responsibilities solely related to the foundation.  
112.31     (b) As part of the annual plan of work, the foundation, 
112.32  ~~under the direction of~~ with review by the ~~state~~ 
112.33  ~~board~~ commissioner, may appoint up to three employees.  The 
112.34  employees appointed under this paragraph are not state employees 
112.35  under chapter 43A, but are covered under section 3.736.  At the 
112.36  foundation board's discretion, the employees may participate in 
113.1   the state health and state insurance plans for employees in 
113.2   unclassified service.  The employees shall be supervised by the 
113.3   executive director. 
113.4      Sec. 7.  Minnesota Statutes 1998, section 126C.42, 
113.5   subdivision 1, is amended to read: 
113.6      Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
113.7   each year in which so required by this subdivision, a district 
113.8   must make an additional levy to eliminate its statutory 
113.9   operating debt, determined as of June 30, 1977, and certified 
113.10  and adjusted by the commissioner.  This levy shall not be made 
113.11  in more than 30 successive years and each year before it is 
113.12  made, it must be approved by the commissioner and the approval 
113.13  shall specify its amount.  This levy shall be an amount which is 
113.14  equal to the amount raised by a levy of a net tax rate of ~~1.66~~ 
113.15  1.98 percent times the adjusted net tax capacity of the district 
113.16  for the preceding year for taxes payable in ~~1991~~ 2000 and 
113.17  thereafter; provided that in the last year in which the district 
113.18  is required to make this levy, it must levy an amount not to 
113.19  exceed the amount raised by a levy of a net tax rate of ~~1.66~~ 
113.20  1.98 percent times the adjusted net tax capacity of the district 
113.21  for the preceding year for taxes payable in ~~1991~~ 2000 and 
113.22  thereafter.  When the sum of the cumulative levies made pursuant 
113.23  to this subdivision and transfers made according to section 
113.24  123B.79, subdivision 6, equals an amount equal to the statutory 
113.25  operating debt of the district, the levy shall be discontinued. 
113.26     (b) The district must establish a special account in the 
113.27  general fund which shall be designated "appropriated fund 
113.28  balance reserve account for purposes of reducing statutory 
113.29  operating debt" on its books and records.  This account shall 
113.30  reflect the levy authorized pursuant to this subdivision.  The 
113.31  proceeds of this levy must be used only for cash flow 
113.32  requirements and must not be used to supplement district 
113.33  revenues or income for the purposes of increasing the district's 
113.34  expenditures or budgets. 
113.35     (c) Any district which is required to levy pursuant to this 
113.36  subdivision must certify the maximum levy allowable under 
114.1   section 126C.13, subdivision 2, in that same year. 
114.2      (d) Each district shall make permanent fund balance 
114.3   transfers so that the total statutory operating debt of the 
114.4   district is reflected in the general fund as of June 30, 1977. 
114.5      Sec. 8.  Minnesota Statutes 1998, section 126C.42, 
114.6   subdivision 2, is amended to read: 
114.7      Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
114.8   may make an additional levy to eliminate a deficit in the net 
114.9   unappropriated operating funds of the district, determined as of 
114.10  June 30, 1983, and certified and adjusted by the commissioner.  
114.11  This levy may in each year be an amount not to exceed the amount 
114.12  raised by a levy of a net tax rate of ~~1.85~~ 2.2 percent times the 
114.13  adjusted net tax capacity for taxes payable in ~~1991~~ 2000 and 
114.14  thereafter of the district for the preceding year as determined 
114.15  by the commissioner.  However, the total amount of this levy for 
114.16  all years it is made must not exceed the lesser of (a) the 
114.17  amount of the deficit in the net unappropriated operating funds 
114.18  of the district as of June 30, 1983, or (b) the amount of the 
114.19  aid reduction, according to Laws 1981, Third Special Session 
114.20  chapter 2, article 2, section 2, but excluding clauses (l), (m), 
114.21  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
114.22  1, article 3, section 6, to the district in fiscal year 1983.  
114.23  When the cumulative levies made pursuant to this subdivision 
114.24  equal the total amount permitted by this subdivision, the levy 
114.25  must be discontinued.  
114.26     (2) The proceeds of this levy must be used only for cash 
114.27  flow requirements and must not be used to supplement district 
114.28  revenues or income for the purposes of increasing the district's 
114.29  expenditures or budgets.  
114.30     (3) A district that levies pursuant to this subdivision 
114.31  must certify the maximum levy allowable under section 126C.13, 
114.32  subdivision 2, in that same year. 
114.33     Sec. 9.  Minnesota Statutes 1998, section 126C.46, is 
114.34  amended to read: 
114.35     126C.46 [ABATEMENT LEVY.] 
114.36     (a) Each year, a school district may levy an amount to 
115.1   replace the net revenue lost to abatements that have occurred 
115.2   under chapter 278, section 270.07, 375.192, or otherwise.  The 
115.3   maximum abatement levy is the sum of: 
115.4      (1) the amount of the net revenue loss determined under 
115.5   section 127A.49, subdivision 2, that is not paid in state aid 
115.6   including any aid amounts not paid due to proration; 
115.7      (2) the difference of (i) the amount of any abatements that 
115.8   have been reported by the county auditor for the first six 
115.9   months of the calendar year during which the abatement levy is 
115.10  certified that the district chooses to levy, (ii) less any 
115.11  amount actually levied under this clause that was certified in 
115.12  the previous calendar year for the first six months of the 
115.13  previous calendar year; and 
115.14     (3) an amount equal to any interest paid on abatement 
115.15  refunds.  
115.16     (b) A district may spread this levy over a period not to 
115.17  exceed ~~three~~ two years.  With the approval of the commissioner, 
115.18  a district may spread this levy over a period not to exceed 
115.19  three years. 
115.20     By July 15, the county auditor shall separately report the 
115.21  abatements that have occurred during the first six calendar 
115.22  months of that year to the commissioner and each district 
115.23  located within the county. 
115.24     Sec. 10.  Minnesota Statutes 1998, section 127A.45, 
115.25  subdivision 2, is amended to read: 
115.26     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
115.27  receipts" means payments by county treasurers pursuant to 
115.28  section 276.10, apportionments from the school endowment fund 
115.29  pursuant to section 127A.33, apportionments by the county 
115.30  auditor pursuant to section 127A.34, subdivision 2, and payments 
115.31  to school districts by the commissioner of revenue pursuant to 
115.32  chapter 298.  
115.33     (b) The term "cumulative amount guaranteed" means ~~the sum~~ 
115.34  ~~of the following:~~ 
115.35     ~~(1) one-third of the final adjustment payment according to~~ 
115.36  ~~subdivision 9; plus~~ 
116.1      ~~(2)~~ the product of 
116.2      ~~(i)~~ (1) the cumulative disbursement percentage shown in 
116.3   subdivision 3; times 
116.4      ~~(ii)~~ (2) the sum of 
116.5      (i) 90 percent of the estimated aid and credit entitlements 
116.6   paid according to subdivision 13; plus 
116.7      (ii) 100 percent of the entitlements paid according to 
116.8   subdivisions 11 and 12; plus 
116.9      (iii) the other district receipts; plus 
116.10     (iv) the final adjustment payment according to subdivision 
116.11  9.  
116.12     (c) The term "payment date" means the date on which state 
116.13  payments to districts are made by the electronic funds transfer 
116.14  method.  If a payment date falls on a Saturday, a Sunday, or a 
116.15  weekday which is a legal holiday, the payment shall be made on 
116.16  the immediately ~~following~~ preceding business day.  The 
116.17  commissioner may make payments on dates other than those listed 
116.18  in subdivision 3, but only for portions of payments from any 
116.19  preceding payment dates which could not be processed by the 
116.20  electronic funds transfer method due to documented extenuating 
116.21  circumstances.  
116.22     <i>(Effective Date:  Section 10 (127A.45, subdivision 2) is</i> 
116.23  <i>effective for the payment of state aids for fiscal year 2000 and</i> 
116.24  <i>later.)</i> 
116.25     Sec. 11.  Minnesota Statutes 1998, section 127A.45, 
116.26  subdivision 3, is amended to read: 
116.27     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
116.28  shall pay to a district on the dates indicated an amount 
116.29  computed as follows:  the cumulative amount guaranteed minus the 
116.30  sum of (a) the district's other district receipts through the 
116.31  current payment, and (b) the aid and credit payments through the 
116.32  immediately preceding payment.  For purposes of this 
116.33  computation, the payment dates and the cumulative disbursement 
116.34  percentages are as follows:  
116.35                           Payment date               Percentage 
116.36  Payment 1    July 15:                                   ~~2.25~~ 4.6
117.1   Payment 2    July 30:                                   ~~4.50~~ 6.9 
117.2   Payment 3    August 15:  the greater of (a) the final        
117.3                adjustment for the prior fiscal year for
117.4                the state paid property tax credits
117.5                established in section 273.1392, or
117.6                (b) the amount needed to provide ~~6.75~~ 15.2 percent
117.7   Payment 4    August 30:                                  ~~9.0~~ 17.4
117.8   Payment 5    September 15:                             ~~12.75~~ 19.6
117.9   Payment 6    September 30:                             ~~16.50~~ 21.8
117.10  Payment 7    October 15:  the greater of (a) one-half of
117.11               the final adjustment for the prior fiscal year
117.12               for all aid entitlements except state paid
117.13               property tax credits, or (b) the amount needed to
117.14               provide ~~20.75~~ 24 percent
117.15  Payment 8    October 30:  the greater of (a) one-half of the
117.16               final adjustment for the prior fiscal year for all
117.17               aid entitlements except state paid property
117.18               tax credits, or (b) the amount needed
117.19               to provide ~~25.0~~ 27.3 percent
117.20  Payment 9    November 15:                               ~~31.0~~ 33.3
117.21  Payment 10   November 30:                               ~~37.0~~ 39.3
117.22  Payment 11   December 15:                               ~~40.0~~ 42.3
117.23  Payment 12   December 30:                               ~~43.0~~ 45.3
117.24  Payment 13   January 15:                               ~~47.25~~ 49.5
117.25  Payment 14   January 30:                                ~~51.5~~ 53.8
117.26  Payment 15   February 15:                               ~~56.0~~ 58.3
117.27  Payment 16   February 28:                               ~~60.5~~ 62.8
117.28  Payment 17   March 15:                                 ~~65.25~~ 67.6
117.29  Payment 18   March 30:                                  ~~70.0~~ 72.3
117.30  Payment 19   April 15:                                  ~~73.0~~ 75.3
117.31  Payment 20   April 30:                                  ~~79.0~~ 81.3
117.32  Payment 21   May 15:                                    ~~82.0~~ 84.3
117.33  Payment 22   May 30:                                    ~~90.0~~ 92.3
117.34  Payment 23   June 20:                                  100.0
117.35     <i>(Effective Date:  Section 11 (127A.45, subdivision 3) is</i> 
117.36  <i>effective for the payment of state aids for fiscal year 2000 and</i> 
118.1   <i>later.)</i> 
118.2      Sec. 12.  Minnesota Statutes 1998, section 127A.45, 
118.3   subdivision 4, is amended to read: 
118.4      Subd. 4.  [APPEAL.] (a) The commissioner, in consultation 
118.5   with the commissioner of finance, may revise the payment dates 
118.6   and percentages in subdivision 3 for a district if it is 
118.7   determined that: 
118.8      (1) there is an emergency; or 
118.9      (2) there are serious cash flow problems in the district 
118.10  that cannot be resolved by issuing warrants or other forms of 
118.11  indebtedness; or 
118.12     (3) the district is facing a serious cash flow problem 
118.13  because of an abatement that exceeds $100 times the resident 
118.14  pupil units of the district.  
118.15     (b) The commissioner shall establish a process and criteria 
118.16  for districts to appeal the payment dates and percentages 
118.17  established in subdivision 3.  
118.18     <i>(Effective Date:  Section 12 (127A.45, subdivision 4) is</i> 
118.19  <i>effective for the payment of state aids for fiscal year 2000 and</i> 
118.20  <i>later.)</i> 
118.21     Sec. 13.  Minnesota Statutes 1998, section 127A.49, 
118.22  subdivision 2, is amended to read: 
118.23     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
118.24  sections 270.07, 375.192, or otherwise, the net tax capacity of 
118.25  any district for any taxable year is changed after the taxes for 
118.26  that year have been spread by the county auditor and the local 
118.27  tax rate as determined by the county auditor based upon the 
118.28  original net tax capacity is applied upon the changed net tax 
118.29  capacities, the county auditor shall, prior to February 1 of 
118.30  each year, certify to the commissioner of children, families, 
118.31  and learning the amount of any resulting net revenue loss that 
118.32  accrued to the district during the preceding year.  Each year, 
118.33  the commissioner shall pay an abatement adjustment to the 
118.34  district in an amount calculated according to the provisions of 
118.35  this subdivision.  This amount shall be deducted from the amount 
118.36  of the levy authorized by section 126C.46.  The amount of the 
119.1   abatement adjustment must be the product of:  
119.2      (1) the net revenue loss as certified by the county 
119.3   auditor, times 
119.4      (2) the ratio of:  
119.5      (i) the sum of the amounts of the district's certified levy 
119.6   in the preceding year according to the following:  
119.7      (A) section 126C.13 if the district received general 
119.8   education aid according to that section for the second preceding 
119.9   year; 
119.10     (B) ~~section 124.226, subdivisions 1 and 4, if the district~~ 
119.11  ~~received transportation aid according to section 123B.92 for the~~ 
119.12  ~~second preceding year;~~ 
119.13     ~~(C) section 124.243, if the district received capital~~ 
119.14  ~~expenditure facilities aid according to that section for the~~ 
119.15  ~~second preceding year;~~ 
119.16     ~~(D) section 124.244, if the district received capital~~ 
119.17  ~~expenditure equipment aid according to that section for the~~ 
119.18  ~~second preceding year;~~ 
119.19     ~~(E)~~ section 123B.57, if the district received health and 
119.20  safety aid according to that section for the second preceding 
119.21  year; 
119.22     ~~(F)~~ (C) sections 124D.20, 124D.21, and 124D.56, if the 
119.23  district received aid for community education programs according 
119.24  to any of those sections for the second preceding year; 
119.25     ~~(G)~~ (D) section 124D.135, subdivision 3, if the district 
119.26  received early childhood family education aid according to 
119.27  section 124D.135 for the second preceding year; and 
119.28     ~~(H) section 125A.77, subdivision 3, if the district~~ 
119.29  ~~received special education levy equalization aid according to~~ 
119.30  ~~that section for the second preceding year;~~ 
119.31     ~~(I)~~ (E) section 126C.17, subdivision 6, if the district 
119.32  received referendum equalization aid according to that section 
119.33  for the second preceding year; ~~and~~ 
119.34     ~~(J) section 124A.22, subdivision 4a, if the district~~ 
119.35  ~~received training and experience aid according to that section~~ 
119.36  ~~for the second preceding year;~~ to 
120.1      (ii) the total amount of the district's certified levy in 
120.2   the preceding ~~October~~ December, plus or minus auditor's 
120.3   adjustments. 
120.4      Sec. 14.  Minnesota Statutes 1998, section 127A.49, 
120.5   subdivision 3, is amended to read: 
120.6      Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
120.7   tax increment is made to a district pursuant to section 469.176, 
120.8   subdivision 2, or upon decertification of a tax increment 
120.9   district, the school district's aid and levy limitations must be 
120.10  adjusted for the fiscal year in which the excess tax increment 
120.11  is paid under the provisions of this subdivision. 
120.12     (b) An amount must be subtracted from the district's aid 
120.13  for the current fiscal year equal to the product of: 
120.14     (1) the amount of the payment of excess tax increment to 
120.15  the district, times 
120.16     (2) the ratio of: 
120.17     (i) the sum of the amounts of the district's certified levy 
120.18  for the fiscal year in which the excess tax increment is paid 
120.19  according to the following: 
120.20     (A) section 126C.13, if the district received general 
120.21  education aid according to that section for the second preceding 
120.22  year; 
120.23     (B) ~~section 124.226, subdivisions 1 and 4, if the district~~ 
120.24  ~~received transportation aid according to section 123B.92 for the~~ 
120.25  ~~second preceding year;~~ 
120.26     ~~(C) section 124.243, if the district received capital~~ 
120.27  ~~expenditure facilities aid according to that section for the~~ 
120.28  ~~second preceding year;~~ 
120.29     ~~(D) section 124.244, if the district received capital~~ 
120.30  ~~expenditure equipment aid according to that section for the~~ 
120.31  ~~second preceding year;~~ 
120.32     ~~(E)~~ section 123B.57, if the district received health and 
120.33  safety aid according to that section for the second preceding 
120.34  year; 
120.35     ~~(F)~~ (C) sections 124D.20, 124D.21, and 124D.56, if the 
120.36  district received aid for community education programs according 
121.1   to any of those sections for the second preceding year; 
121.2      ~~(G)~~ (D) section 124D.135, subdivision 3, if the district 
121.3   received early childhood family education aid according to 
121.4   section 124D.135 for the second preceding year; and 
121.5      ~~(H) section 125A.77, subdivision 3, if the district~~ 
121.6   ~~received special education levy equalization aid according to~~ 
121.7   ~~that section for the second preceding year;~~ 
121.8      ~~(I)~~ (E) section 126C.17, subdivision 6, if the district 
121.9   received referendum equalization aid according to that section 
121.10  for the second preceding year; ~~and~~ 
121.11     ~~(J) section 124A.22, subdivision 4a, if the district~~ 
121.12  ~~received training and experience aid according to that section~~ 
121.13  ~~for the second preceding year;~~ to 
121.14     (ii) the total amount of the district's certified levy for 
121.15  the fiscal year, plus or minus auditor's adjustments. 
121.16     (c) An amount must be subtracted from the school district's 
121.17  levy limitation for the next levy certified equal to the 
121.18  difference between: 
121.19     (1) the amount of the distribution of excess increment; and 
121.20     (2) the amount subtracted from aid pursuant to clause (a). 
121.21     If the aid and levy reductions required by this subdivision 
121.22  cannot be made to the aid for the fiscal year specified or to 
121.23  the levy specified, the reductions must be made from aid for 
121.24  subsequent fiscal years, and from subsequent levies.  The school 
121.25  district must use the payment of excess tax increment to replace 
121.26  the aid and levy revenue reduced under this subdivision. 
121.27     (d) This subdivision applies only to the total amount of 
121.28  excess increments received by a district for a calendar year 
121.29  that exceeds $25,000. 
121.30     Sec. 15.  [INDEPENDENT SCHOOL DISTRICT NO. 656, FARIBAULT; 
121.31  FUND TRANSFER.] 
121.32     Notwithstanding Minnesota Statutes, section 123B.79, or 
121.33  other law, on or before June 30, 2000, independent school 
121.34  district No. 656, Faribault, may transfer up to $1,000,000 
121.35  realized from the sale of real property from its capital 
121.36  expenditure account to the undesignated general fund. 
122.1      <i>(Effective Date:  Section 15 (Faribault fund transfer) is</i> 
122.2   <i>effective the day following final enactment.)</i> 
122.3      Sec. 16.  [APPROPRIATIONS.] 
122.4      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
122.5   LEARNING.] The sums indicated in this section are appropriated 
122.6   from the general fund to the department of children, families, 
122.7   and learning for the fiscal years designated.  
122.8      Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
122.9   Minnesota Statutes, section 127A.49:  
122.10        $9,110,000    .....     2000 
122.11        $8,947,000    .....     2001 
122.12     The 2000 appropriation includes $1,352,000 for 1999 and 
122.13  $7,758,000 for 2000.  
122.14     The 2001 appropriation includes $861,000 for 2000 and 
122.15  $8,086,000 for 2001.  
122.16     Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
122.17  education aid according to Minnesota Statutes, sections 123B.40 
122.18  to 123B.48 and 123B.87: 
122.19       $10,996,000    .....      2000 
122.20       $11,878,000    .....      2001 
122.21     The 2000 appropriation includes $970,000 for 1999 and 
122.22  $10,026,000 for 2000. 
122.23     The 2001 appropriation includes $1,114,000 for 2000 and 
122.24  $10,764,000 for 2001.  
122.25     The department shall recompute the maximum allotments 
122.26  established on March 1, 1999, for fiscal year 2000 under 
122.27  Minnesota Statutes, sections 123B.42, subdivision 3, and 
122.28  123B.44, subdivision 6, to reflect the amount appropriated in 
122.29  this subdivision for fiscal year 2000. 
122.30     Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
122.31  consolidating under Minnesota Statutes, section 123A.485: 
122.32       $451,000       .....     2000
122.33       $375,000       .....     2001
122.34     The 2000 appropriation includes $113,000 for 1999 and 
122.35  $338,000 for 2000. 
122.36     The 2001 appropriation includes $37,000 for 2000 and 
123.1   $338,000 for 2001. 
123.2      Any balance in the first year does not cancel but is 
123.3   available in the second year. 
123.4      Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
123.5   pupil transportation aid under Minnesota Statutes, section 
123.6   123B.92, subdivision 9: 
123.7        $18,183,000    .....     2000 
123.8        $20,432,000    .....     2001 
123.9      The 2000 appropriation includes $1,848,000 for 2000 and 
123.10  $16,335,000 for 2001. 
123.11     The 2001 appropriation includes $1,815,000 for 2000 and 
123.12  $18,617,000 for 2001. 
123.13     Subd. 6.  [MINNESOTA LEARNING RESOURCE CENTER.] For a grant 
123.14  to A Chance To Grow/New Visions for start-up costs related to 
123.15  implementing the Minnesota learning resource center's 
123.16  comprehensive training program for education professionals 
123.17  charged with helping children acquire basic reading and math 
123.18  skills: 
123.19       $250,000     .....     2000
123.20     This appropriation is available until June 30, 2001.  This 
123.21  is a one-time appropriation.  
123.22     Sec. 17.  [REPEALER.] 
123.23     Minnesota Statutes 1998, sections 124D.24; 124D.25; 
123.24  124D.26; 124D.27; 124D.28; 124D.29; 124D.30; and 127A.45, 
123.25  subdivision 5, are repealed. 
123.26     Sec. 18.  [EFFECTIVE DATES.] 
123.27     When preparing the prekindergarten through grade 12 
123.28  education conference committee report for adoption by the 
123.29  legislature, the revisor shall combine all effective date 
123.30  notations in this article into this effective dates section. 
123.31                             ARTICLE 7 
123.32                         NUTRITION PROGRAMS 
123.33     Section 1.  [124D.1155] [FAST BREAK TO LEARNING GRANTS.] 
123.34     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
123.35  established to ensure that all children have an opportunity to 
123.36  eat a nutritious breakfast each school day and that barriers 
124.1   such as the social stigma of poverty, or inadequate facilities 
124.2   or transportation do not deny student access to nutritious food. 
124.3      Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
124.4   public elementary school that participates in the federal school 
124.5   breakfast and lunch programs.  The commissioner must give first 
124.6   priority to schools where at least 33 percent of the lunches the 
124.7   school served to children during the preceding school year were 
124.8   provided free or at a reduced price.  The commissioner must give 
124.9   second priority to all other public elementary schools. 
124.10     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
124.11  receive reimbursement for providing breakfasts to all children, 
124.12  a public elementary school must submit an application to the 
124.13  commissioner in the form and manner the commissioner 
124.14  prescribes.  The application must describe how the applicant 
124.15  will encourage all children in the school to participate in the 
124.16  breakfast program.  The applicant also must demonstrate to the 
124.17  commissioner that the applicant will collect a $1 local funding 
124.18  match for every $3 of state funding the applicant receives.  The 
124.19  applicant must raise the local match either by charging student 
124.20  households not eligible for federal free or reduced price meals 
124.21  or by soliciting funds from nonpublic sources.  The applicant 
124.22  can determine the method for charging student households for 
124.23  school breakfast, but must consider the household's ability to 
124.24  pay.  The applicant cannot charge student households for school 
124.25  breakfast so that the total charges exceed the difference 
124.26  between the revenue from federal and state aids and the actual 
124.27  cost of providing the breakfast.  The commissioner may require 
124.28  additional information from the applicant. 
124.29     Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
124.30  grants to the 41 grant recipients under Laws 1997, First Special 
124.31  Session chapter 4, article 6, section 19, and then according to 
124.32  need as determined by the percentage of students enrolled in the 
124.33  school who are eligible for federal free or reduced price meals 
124.34  and that meet the requirements of subdivisions 2 and 3 until 
124.35  funding under this section is expended.  The commissioner shall 
124.36  determine the amount of the grant using average statewide 
125.1   statistics and individual school statistics adjusted for other 
125.2   state and federal reimbursements.  Grant recipients must use the 
125.3   proceeds to provide breakfast to school children every day 
125.4   school is in session. 
125.5      Subd. 5.  [EXPIRATION.] This section expires June 30, 2001. 
125.6      Sec. 2.  [APPROPRIATIONS.] 
125.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
125.8   LEARNING.] The sums indicated in this section are appropriated 
125.9   from the general fund to the department of children, families, 
125.10  and learning for the fiscal years designated. 
125.11     Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
125.12  according to Minnesota Statutes, section 124D.111, and Code of 
125.13  Federal Regulations, title 7, section 210.17, and for school 
125.14  milk aid according to Minnesota Statutes, section 124D.118:  
125.15       $8,200,000     .....     2000 
125.16       $8,200,000     .....     2001 
125.17     (b) Any unexpended balance remaining from the 
125.18  appropriations in this subdivision shall be prorated among 
125.19  participating schools based on the number of free, reduced, and 
125.20  fully paid federally reimbursable student lunches served during 
125.21  that school year.  
125.22     (c) If the appropriation amount attributable to either year 
125.23  is insufficient, the rate of payment for each fully paid student 
125.24  lunch shall be reduced and the aid for that year shall be 
125.25  prorated among participating schools so as not to exceed the 
125.26  total authorized appropriation for that year.  
125.27     (d) Not more than $800,000 of the amount appropriated each 
125.28  year may be used for school milk aid. 
125.29     Subd. 3.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
125.30  food service replacement aid under Minnesota Statutes, section 
125.31  124D.119: 
125.32       $150,000       .....     2000 
125.33       $150,000       .....     2001 
125.34     Subd. 4.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
125.35  to learning grants under Minnesota Statutes, section 124D.1155: 
125.36       $2,000,000       .....     2000
126.1        $2,000,000       .....     2001
126.2      Any balance in the first year does not cancel but is 
126.3   available in the second year. 
126.4      Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
126.5   breakfast program according to Minnesota Statutes, sections 
126.6   124D.115 and 124D.117: 
126.7        $456,000       .....     2000
126.8        $456,000       .....     2001
126.9      If the appropriation amount attributable to either year is 
126.10  insufficient, the rate of payment for each fully paid student 
126.11  breakfast shall be reduced and the aid for that year shall be 
126.12  prorated among participating schools so as not to exceed the 
126.13  total authorized appropriation for that year.  Any unexpended 
126.14  balance remaining shall be used to subsidize the payments made 
126.15  for school lunch aid per Minnesota Statutes, section 124D.111.  
126.16     Up to one percent of the program funding can be used by the 
126.17  department of children, families, and learning for technical and 
126.18  administrative assistance. 
126.19     Sec. 3.  [REPEALER.] 
126.20     Minnesota Statutes 1998, sections 124D.112, 124D.113, and 
126.21  124D.116, are repealed. 
126.22                             ARTICLE 8 
126.23                             LIBRARIES 
126.24     Section 1.  Minnesota Statutes 1998, section 123B.93, is 
126.25  amended to read: 
126.26     123B.93 [ADVERTISING ON SCHOOL BUSES.] 
126.27     (a) The commissioner, through a competitive process, and 
126.28  with the approval of the school bus safety advisory committee 
126.29  may contract with advertisers regarding advertising on school 
126.30  buses.  At a minimum, the contract must prohibit advertising and 
126.31  advertising images that: 
126.32     (1) solicit the sale of, or promote the use of, alcoholic 
126.33  beverages and tobacco products; 
126.34     (2) are discriminatory in nature or content; 
126.35     (3) imply or declare an endorsement of the product or 
126.36  service by the school district; 
127.1      (4) contain obscene material; 
127.2      (5) are false, misleading, or deceptive; or 
127.3      (6) relate to an illegal activity or antisocial behavior. 
127.4      (b) Advertisement must meet the following conditions: 
127.5      (1) the advertising attached to the school bus does not 
127.6   interfere with bus identification under section 169.441; and 
127.7      (2) the bus with attached advertising meets the school bus 
127.8   equipment standards under sections 169.4501 to 169.4504. 
127.9      (c) All buses operated by school districts may be attached 
127.10  with advertisements under the state contract.  All school 
127.11  district contracts shall include a provision for advertisement.  
127.12  Each school district shall be reimbursed by the advertiser for 
127.13  all costs incurred by the district and its contractors for 
127.14  supporting the advertising program, including, but not limited 
127.15  to, retrofitting buses, storing advertising, attaching 
127.16  advertising to the bus, and related maintenance. 
127.17     (d) The commissioner shall hold harmless and indemnify each 
127.18  district for all liabilities arising from the advertising 
127.19  program.  Each district must tender defense of all such claims 
127.20  to the commissioner within five days of receipt. 
127.21     (e) All revenue from the contract shall be deposited in the 
127.22  general fund.  The commissioner shall establish the criteria, 
127.23  procedures, and application process for distributing money to 
127.24  school districts using software filtering technology under 
127.25  section 125B.22. 
127.26     Sec. 2.  [125B.22] [INTERNET ACCESS FOR STUDENTS.] 
127.27     Recognizing the difference between school libraries, school 
127.28  computer labs, and school media centers, which serve unique 
127.29  educational purposes, and public libraries, which are designed 
127.30  for public inquiry, all school district computers with access to 
127.31  the Internet available for student use, to the maximum extent 
127.32  possible under the law, must be equipped to restrict, including 
127.33  by use of available software filtering technology, all access by 
127.34  students to material that is reasonably believed to be obscene 
127.35  or child pornography or material harmful to minors under federal 
127.36  or state law. 
128.1      Sec. 3.  [134.47] [INTERNET ACCESS FOR CHILDREN.] 
128.2      (a) Recognizing the difference between public libraries, 
128.3   which are designed for public inquiry, and school libraries, 
128.4   school computer labs, and school media centers, which serve 
128.5   unique educational purposes, all public library computers with 
128.6   access to the Internet available for use by children under the 
128.7   age of 18, to the maximum extent possible under the law, must be 
128.8   equipped to restrict, including by use of available software 
128.9   filtering technology, all access by children to material that is 
128.10  reasonably believed to be obscene or child pornography or 
128.11  material harmful to minors under federal or state law. 
128.12     (b) This section does not apply to the libraries of 
128.13  post-secondary institutions. 
128.14     Sec. 4.  Laws 1997, First Special Session chapter 4, 
128.15  article 8, section 4, is amended to read: 
128.16     Sec. 4.  [LIBRARY ~~PILOT~~ PROJECT.] 
128.17     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
128.18  contrary and subject to approvals in subdivision 2, a public 
128.19  library may operate as a ~~pilot~~ library project jointly with the 
128.20  school library at Nashwauk-Keewatin high school, located in the 
128.21  city of Nashwauk.  The public library is established to serve 
128.22  persons within the boundaries of independent school district No. 
128.23  319, except the city of Keewatin. 
128.24     Subd. 2.  [APPROVALS.] Operation of the public library is 
128.25  contingent upon ~~a resolution approved by~~ the governing bodies of 
128.26  cities, towns, and unorganized townships within the geographical 
128.27  boundaries of independent school district No. 319, except for 
128.28  the city of Keewatin, entering into a joint powers agreement 
128.29  under Minnesota Statutes, section 471.59, to accomplish the 
128.30  purpose of this section.  The joint powers agreement must 
128.31  provide for continuing the library project if one party to the 
128.32  agreement withdraws from the agreement.  For the purposes of 
128.33  this subdivision, the Itasca county board is designated as the 
128.34  governing body for the unorganized townships. 
128.35     Subd. 3.  [BOARD; APPOINTMENTS.] The ~~resolution~~ joint 
128.36  powers agreement in subdivision 2 shall provide for a library 
129.1   board of five members as follows:  two members appointed by the 
129.2   school board of independent school district No. 319, one member 
129.3   appointed by each town board located within independent school 
129.4   district No. 319 boundaries, one member appointed by the council 
129.5   of the city of Nashwauk, and one member appointed by the Itasca 
129.6   county board to represent the unorganized towns within the 
129.7   school district territory. 
129.8      Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
129.9   members shall serve for the term of the ~~pilot program~~ library 
129.10  project.  An appointing authority may remove for misconduct or 
129.11  neglect any member it has appointed to the board and may replace 
129.12  that member by appointment.  Board members shall receive no 
129.13  compensation for their services but may be reimbursed for actual 
129.14  and necessary travel expenses incurred in the discharge of 
129.15  library board duties and activities. 
129.16     Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
129.17  only, the library board may levy a tax in an amount up to 
129.18  $25,000 annually on property located within the boundaries of 
129.19  independent school district No. 319, except the city of 
129.20  Keewatin.  The Itasca county auditor shall collect the tax and 
129.21  distribute it to the library board.  The money may be used for 
129.22  library staff and for the purchase of library materials, 
129.23  including computer software.  The levy must also fund the amount 
129.24  necessary to receive bookmobile services from the Arrowhead 
129.25  regional library system.  For taxes payable in 1998 and 1999 
129.26  only, the county may not levy under Minnesota Statutes, section 
129.27  134.07, for the areas described in this section. 
129.28     Subd. 6.  [BUILDING.] The school district shall provide the 
129.29  physical space and costs associated with operating the library 
129.30  including, but not limited to, heat, light, telephone service, 
129.31  and maintenance. 
129.32     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
129.33  the library board shall organize by electing one of its number 
129.34  as president and one as secretary, and it may appoint other 
129.35  officers it finds necessary. 
129.36     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
130.1   and regulations for the library and for the conduct of its 
130.2   business as may be expedient and conformable to law.  It shall 
130.3   have exclusive control of the expenditure of all money collected 
130.4   for it.  The library board shall appoint a qualified library 
130.5   director and other staff, establish the compensation of 
130.6   employees, and remove any of them for cause.  The library board 
130.7   may contract with the school board, the regional library board, 
130.8   or the city in which the library is located to provide 
130.9   personnel, fiscal, or administrative services.  The contract 
130.10  shall state the personnel, fiscal, and administrative services 
130.11  and payments to be provided by each party. 
130.12     Subd. 9.  [CRITERIA.] The library shall meet all 
130.13  requirements in statutes and rules applicable to public 
130.14  libraries and school media centers.  A media supervisor licensed 
130.15  by the board of teaching may be the director of the library.  
130.16  Public parking, restrooms, drinking water, and other necessities 
130.17  shall be easily accessible to library patrons. 
130.18     ~~Subd. 10.  [REPORT.] The library board shall report to the~~ 
130.19  ~~department of children, families, and learning by February 1,~~ 
130.20  ~~1999, about the costs of providing the library service and the~~ 
130.21  ~~number of patrons served.~~ 
130.22     ~~Subd. 11.  [EXPIRATION.] This section expires January 31,~~ 
130.23  ~~2000.~~ 
130.24     Sec. 5.  [SCHOOL DISTRICT INTERNET USE POLICY.] 
130.25     Notwithstanding any law to the contrary, each school 
130.26  district must adopt an Internet use policy or amend an existing 
130.27  Internet use policy to comply with Minnesota Statutes, section 
130.28  125B.22. 
130.29     Sec. 6.  [APPROPRIATIONS.] 
130.30     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
130.31  LEARNING.] The sums indicated in this section are appropriated 
130.32  from the general fund to the department of children, families, 
130.33  and learning for the fiscal years designated.  
130.34     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
130.35  according to Minnesota Statutes, sections 134.32 to 134.35: 
130.36       $8,495,000      .....     2000 
131.1        $8,570,000      .....     2001 
131.2      The 2000 appropriation includes $782,000 for 1999 and 
131.3   $7,713,000 for 2000.  
131.4      The 2001 appropriation includes $857,000 for 2000 and 
131.5   $7,713,000 for 2001.  
131.6      Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
131.7   grants according to Minnesota Statutes, sections 134.353 and 
131.8   134.354, to multicounty, multitype library systems: 
131.9        $903,000       .....     2000 
131.10       $903,000       .....     2001 
131.11     The 2000 appropriation includes $90,000 for 1999 and 
131.12  $813,000 for 2000.  
131.13     The 2001 appropriation includes $90,000 for 2000 and 
131.14  $813,000 for 2001. 
131.15     Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
131.16  grants to regional public library systems under Minnesota 
131.17  Statutes, section 125B.20, subdivision 3: 
131.18       $1,700,000     .....     2000 
131.19       $1,700,000     .....     2001 
131.20     Any balance in the first year does not cancel but is 
131.21  available in the second year. 
131.22     Subd. 5.  [BUS ADVERTISING REVENUE ALLOCATION.] For school 
131.23  district expenses under Minnesota Statutes, section 125B.22: 
131.24       $2,500,000     .....     2000 
131.25       $2,500,000     .....     2001
131.26     The commissioner must proportionally reduce this 
131.27  appropriation if the revenue in any year under Minnesota 
131.28  Statutes, section 123B.93, is less than the appropriation.  The 
131.29  commissioner also may use a portion of the appropriation to 
131.30  reimburse districts that demonstrate they incurred excess costs 
131.31  in implementing Minnesota Statutes, section 123B.93. 
131.32     Sec. 7.  [REPEALER.] 
131.33     Minnesota Statutes 1998, section 134.155, is repealed.  
131.34  Laws 1997, First Special Session chapter 4, article 3, section 
131.35  5; and article 8, section 5, are repealed. 
131.36                             ARTICLE 9
132.1                           EDUCATION POLICY
132.2      Section 1.  Minnesota Statutes 1998, section 13.46, 
132.3   subdivision 2, is amended to read: 
132.4      Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
132.5   a statute specifically provides a different classification, data 
132.6   on individuals collected, maintained, used, or disseminated by 
132.7   the welfare system is private data on individuals, and shall not 
132.8   be disclosed except:  
132.9      (1) according to section 13.05; 
132.10     (2) according to court order; 
132.11     (3) according to a statute specifically authorizing access 
132.12  to the private data; 
132.13     (4) to an agent of the welfare system, including a law 
132.14  enforcement person, attorney, or investigator acting for it in 
132.15  the investigation or prosecution of a criminal or civil 
132.16  proceeding relating to the administration of a program; 
132.17     (5) to personnel of the welfare system who require the data 
132.18  to determine eligibility, amount of assistance, and the need to 
132.19  provide services of additional programs to the individual; 
132.20     (6) to administer federal funds or programs; 
132.21     (7) between personnel of the welfare system working in the 
132.22  same program; 
132.23     (8) the amounts of cash public assistance and relief paid 
132.24  to welfare recipients in this state, including their names, 
132.25  social security numbers, income, addresses, and other data as 
132.26  required, upon request by the department of revenue to 
132.27  administer the property tax refund law, supplemental housing 
132.28  allowance, early refund of refundable tax credits, and the 
132.29  income tax.  "Refundable tax credits" means the dependent care 
132.30  credit under section 290.067, the Minnesota working family 
132.31  credit under section 290.0671, the property tax refund under 
132.32  section 290A.04, and, if the required federal waiver or waivers 
132.33  are granted, the federal earned income tax credit under section 
132.34  32 of the Internal Revenue Code; 
132.35     (9) between the department of human services and the 
132.36  Minnesota department of economic security for the purpose of 
133.1   monitoring the eligibility of the data subject for reemployment 
133.2   insurance, for any employment or training program administered, 
133.3   supervised, or certified by that agency, for the purpose of 
133.4   administering any rehabilitation program, whether alone or in 
133.5   conjunction with the welfare system, or to monitor and evaluate 
133.6   the statewide Minnesota family investment program by exchanging 
133.7   data on recipients and former recipients of food stamps, cash 
133.8   assistance under chapter 256, 256D, 256J, or 256K, child care 
133.9   assistance under chapter 119B, or medical programs under chapter 
133.10  256B, 256D, or 256L; 
133.11     (10) to appropriate parties in connection with an emergency 
133.12  if knowledge of the information is necessary to protect the 
133.13  health or safety of the individual or other individuals or 
133.14  persons; 
133.15     (11) data maintained by residential programs as defined in 
133.16  section 245A.02 may be disclosed to the protection and advocacy 
133.17  system established in this state according to Part C of Public 
133.18  Law Number 98-527 to protect the legal and human rights of 
133.19  persons with mental retardation or other related conditions who 
133.20  live in residential facilities for these persons if the 
133.21  protection and advocacy system receives a complaint by or on 
133.22  behalf of that person and the person does not have a legal 
133.23  guardian or the state or a designee of the state is the legal 
133.24  guardian of the person; 
133.25     (12) to the county medical examiner or the county coroner 
133.26  for identifying or locating relatives or friends of a deceased 
133.27  person; 
133.28     (13) data on a child support obligor who makes payments to 
133.29  the public agency may be disclosed to the higher education 
133.30  services office to the extent necessary to determine eligibility 
133.31  under section 136A.121, subdivision 2, clause (5); 
133.32     (14) participant social security numbers and names 
133.33  collected by the telephone assistance program may be disclosed 
133.34  to the department of revenue to conduct an electronic data match 
133.35  with the property tax refund database to determine eligibility 
133.36  under section 237.70, subdivision 4a; 
134.1      (15) the current address of a recipient of aid to families 
134.2   with dependent children or Minnesota family investment 
134.3   program-statewide may be disclosed to law enforcement officers 
134.4   who provide the name of the recipient and notify the agency that:
134.5      (i) the recipient: 
134.6      (A) is a fugitive felon fleeing to avoid prosecution, or 
134.7   custody or confinement after conviction, for a crime or attempt 
134.8   to commit a crime that is a felony under the laws of the 
134.9   jurisdiction from which the individual is fleeing; or 
134.10     (B) is violating a condition of probation or parole imposed 
134.11  under state or federal law; 
134.12     (ii) the location or apprehension of the felon is within 
134.13  the law enforcement officer's official duties; and 
134.14     (iii)  the request is made in writing and in the proper 
134.15  exercise of those duties; 
134.16     (16) the current address of a recipient of general 
134.17  assistance or general assistance medical care may be disclosed 
134.18  to probation officers and corrections agents who are supervising 
134.19  the recipient and to law enforcement officers who are 
134.20  investigating the recipient in connection with a felony level 
134.21  offense; 
134.22     (17) information obtained from food stamp applicant or 
134.23  recipient households may be disclosed to local, state, or 
134.24  federal law enforcement officials, upon their written request, 
134.25  for the purpose of investigating an alleged violation of the 
134.26  Food Stamp Act, according to Code of Federal Regulations, title 
134.27  7, section 272.1(c); 
134.28     (18) the address, social security number, and, if 
134.29  available, photograph of any member of a household receiving 
134.30  food stamps shall be made available, on request, to a local, 
134.31  state, or federal law enforcement officer if the officer 
134.32  furnishes the agency with the name of the member and notifies 
134.33  the agency that:  
134.34     (i) the member: 
134.35     (A) is fleeing to avoid prosecution, or custody or 
134.36  confinement after conviction, for a crime or attempt to commit a 
135.1   crime that is a felony in the jurisdiction the member is 
135.2   fleeing; 
135.3      (B) is violating a condition of probation or parole imposed 
135.4   under state or federal law; or 
135.5      (C) has information that is necessary for the officer to 
135.6   conduct an official duty related to conduct described in subitem 
135.7   (A) or (B); 
135.8      (ii) locating or apprehending the member is within the 
135.9   officer's official duties; and 
135.10     (iii) the request is made in writing and in the proper 
135.11  exercise of the officer's official duty; 
135.12     (19) certain information regarding child support obligors 
135.13  who are in arrears may be made public according to section 
135.14  518.575; 
135.15     (20) data on child support payments made by a child support 
135.16  obligor and data on the distribution of those payments excluding 
135.17  identifying information on obligees may be disclosed to all 
135.18  obligees to whom the obligor owes support, and data on the 
135.19  enforcement actions undertaken by the public authority, the 
135.20  status of those actions, and data on the income of the obligor 
135.21  or obligee may be disclosed to the other party; 
135.22     (21) data in the work reporting system may be disclosed 
135.23  under section 256.998, subdivision 7; 
135.24     (22) to the department of children, families, and learning 
135.25  for the purpose of matching department of children, families, 
135.26  and learning student data with public assistance data to 
135.27  determine students eligible for free and reduced price meals, 
135.28  meal supplements, and free milk according to United States Code, 
135.29  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; ~~to~~ 
135.30  ~~produce accurate numbers of students receiving aid to families~~ 
135.31  ~~with dependent children or Minnesota family investment~~ 
135.32  ~~program-statewide as required by section 126C.06;~~ to allocate 
135.33  federal and state funds that are distributed based on income of 
135.34  the student's family; and to verify receipt of energy assistance 
135.35  for the telephone assistance plan; 
135.36     (23) the current address and telephone number of program 
136.1   recipients and emergency contacts may be released to the 
136.2   commissioner of health or a local board of health as defined in 
136.3   section 145A.02, subdivision 2, when the commissioner or local 
136.4   board of health has reason to believe that a program recipient 
136.5   is a disease case, carrier, suspect case, or at risk of illness, 
136.6   and the data are necessary to locate the person; 
136.7      (24) to other state agencies, statewide systems, and 
136.8   political subdivisions of this state, including the attorney 
136.9   general, and agencies of other states, interstate information 
136.10  networks, federal agencies, and other entities as required by 
136.11  federal regulation or law for the administration of the child 
136.12  support enforcement program; 
136.13     (25) to personnel of public assistance programs as defined 
136.14  in section 256.741, for access to the child support system 
136.15  database for the purpose of administration, including monitoring 
136.16  and evaluation of those public assistance programs; or 
136.17     (26) to monitor and evaluate the statewide Minnesota family 
136.18  investment program by exchanging data between the departments of 
136.19  human services and children, families, and learning, on 
136.20  recipients and former recipients of food stamps, cash assistance 
136.21  under chapter 256, 256D, 256J, or 256K, child care assistance 
136.22  under chapter 119B, or medical programs under chapter 256B, 
136.23  256D, or 256L.  
136.24     (b) Information on persons who have been treated for drug 
136.25  or alcohol abuse may only be disclosed according to the 
136.26  requirements of Code of Federal Regulations, title 42, sections 
136.27  2.1 to 2.67. 
136.28     (c) Data provided to law enforcement agencies under 
136.29  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
136.30  (b), are investigative data and are confidential or protected 
136.31  nonpublic while the investigation is active.  The data are 
136.32  private after the investigation becomes inactive under section 
136.33  13.82, subdivision 5, paragraph (a) or (b). 
136.34     (d) Mental health data shall be treated as provided in 
136.35  subdivisions 7, 8, and 9, but is not subject to the access 
136.36  provisions of subdivision 10, paragraph (b). 
137.1      Sec. 2.  Minnesota Statutes 1998, section 43A.18, 
137.2   subdivision 4a, is amended to read: 
137.3      Subd. 4a.  [COMPENSATION REPORTS.] On July 1 of each 
137.4   odd-numbered year the state agricultural society, the World 
137.5   Trade Center corporation board of directors~~,~~ and the Minnesota 
137.6   Technology, Inc. board of directors~~, and the governing board of~~ 
137.7   ~~the Minnesota state high school league~~ shall each submit a 
137.8   report to the legislative commission on employee relations on 
137.9   the total compensation plan for their employees. 
137.10     <i>(Effective Date: Section 2 (43A.18, subdivision 4a) is</i> 
137.11  <i>effective for the 1999-2000 school year and later.)</i> 
137.12     Sec. 3.  [120B.015] [ENSURING FREEDOM OF CHOICE IN 
137.13  EDUCATION.] 
137.14     (a) The state shall not prescribe graduation standards for 
137.15  nonpublic schools except as described in Minnesota Statutes 
137.16  1998, section 120A.22, and related provisions. 
137.17     (b) The state shall not enter into any contract with the 
137.18  federal government involving the Goals 2000: Educate America 
137.19  Act, the Improving America's Schools Act of 1994, the 
137.20  School-to-Work Opportunities Act of 1994 or the Workforce 
137.21  Investment Act of 1998 if a term in any such contract violates 
137.22  paragraph (a). 
137.23     <i>(Effective Date:  Section 3 (120B.015) is effective</i> 
137.24  <i>immediately.)</i> 
137.25     Sec. 4.  Minnesota Statutes 1998, section 121A.15, 
137.26  subdivision 1, is amended to read: 
137.27     Subdivision 1.  (a) Except as provided in subdivisions 3, 
137.28  4, and 10, no person over two months old may be allowed to 
137.29  enroll or remain enrolled in any elementary or secondary school 
137.30  or child care facility in this state until the person has 
137.31  submitted to the administrator or other person having general 
137.32  control and supervision of the school or child care facility, 
137.33  one of the following statements: 
137.34     (1) a statement from a physician or a public clinic which 
137.35  provides immunizations stating that the person has received 
137.36  immunization, consistent with medically acceptable standards, 
138.1   against measles after having attained the age of 12 months, 
138.2   rubella, diphtheria, tetanus, pertussis, polio, mumps, 
138.3   haemophilus influenza type b, and hepatitis B; or 
138.4      (2) a statement from a physician or a public clinic which 
138.5   provides immunizations stating that the person has received 
138.6   immunizations, consistent with medically acceptable standards, 
138.7   against measles after having attained the age of 12 months, 
138.8   rubella, mumps, and haemophilus influenza type b and that the 
138.9   person has commenced a schedule of immunizations for diphtheria, 
138.10  tetanus, pertussis, polio, and hepatitis B and which indicates 
138.11  the month and year of each immunization received.  
138.12     (b) The administrator or other person having general 
138.13  control and supervision of the school or child care facility 
138.14  must inform the parent or guardian of the person seeking to 
138.15  enroll or remain enrolled of the exemptions from immunizations 
138.16  permitted under subdivision 3. 
138.17     Sec. 5.  [121A.24] [RESTRICTION ON DISTRIBUTION OF 
138.18  CONTRACEPTIVES.] 
138.19     A public school may not distribute or allow to be 
138.20  distributed on school property contraceptives or a voucher or 
138.21  prescription for contraceptives to a student without the written 
138.22  permission of that student's parent or guardian. 
138.23     Sec. 6.  Minnesota Statutes 1998, section 121A.45, 
138.24  subdivision 2, is amended to read: 
138.25     Subd. 2.  [GROUNDS FOR DISMISSAL.] A pupil may be dismissed 
138.26  on any of the following grounds: 
138.27     (a) willful violation of any reasonable school board 
138.28  regulation.  Such regulation must be clear and definite to 
138.29  provide notice to pupils that they must conform their conduct to 
138.30  its requirements; 
138.31     (b) willful conduct that ~~materially and substantially~~ 
138.32  significantly disrupts the rights of others to an education, 
138.33  including conduct that interferes with a teacher's ability to 
138.34  teach or communicate effectively with students in a class or 
138.35  with the ability of other students to learn; ~~or~~ 
138.36     (c) willful conduct that disrupts a classroom, the school 
139.1   environment, or the functions of a school; or 
139.2      (d) willful conduct that endangers the pupil or other 
139.3   pupils, or surrounding persons, including school district 
139.4   employees, or property of the school. 
139.5      <i>(Effective Date:  Section 6 (121A.45, subdivision 2) is</i> 
139.6   <i>effective for the 1999-2000 school year and thereafter.)</i> 
139.7      Sec. 7.  Minnesota Statutes 1998, section 121A.61, 
139.8   subdivision 2, is amended to read: 
139.9      Subd. 2.  [GROUNDS FOR REMOVAL FROM CLASS.] The policy must 
139.10  establish the various grounds for which a student may be removed 
139.11  from a class in the district for a period of time ~~pursuant~~ 
139.12  ~~to~~ under the procedures specified in the policy.  The grounds in 
139.13  the policy must include at least the following provisions, as 
139.14  well as other grounds determined appropriate by the board:  
139.15     (a) willful conduct ~~which materially and substantially~~ that 
139.16  disrupts the rights of others to an education, including conduct 
139.17  that interferes with a teacher's ability to teach or communicate 
139.18  effectively with students in a class or with the ability of 
139.19  other students to learn; 
139.20     (b) willful conduct ~~which~~ that endangers surrounding 
139.21  persons, including school district employees, the student or 
139.22  other students, or the property of the school; and 
139.23     (c) willful violation of any rule of conduct specified in 
139.24  the discipline policy adopted by the board.  
139.25     <i>(Effective Date:  Section 7 (121A.61, subdivision 2) is</i> 
139.26  <i>effective for the 1999-2000 school year and thereafter.)</i> 
139.27     Sec. 8.  Minnesota Statutes 1998, section 128C.01, 
139.28  subdivision 4, is amended to read: 
139.29     Subd. 4.  [BOARD.] (a) The league must have a 20-member 
139.30  governing board. 
139.31     (1) The governor must appoint four members according to 
139.32  section 15.0597.  Each of the four appointees must be a parent.  
139.33  At least one of them must be an American Indian, an Asian, a 
139.34  Black, or a Hispanic. 
139.35     (2) The Minnesota association of secondary school 
139.36  principals must appoint two of its members. 
140.1      (3) The remaining 14 members must be selected according to 
140.2   league bylaws.  
140.3      (b) The terms, compensation, removal of members, and the 
140.4   filling of membership vacancies are governed by section 15.0575, 
140.5   except that the four-year terms begin on August 1 and end on 
140.6   July 31.  As provided by section 15.0575, members who are 
140.7   full-time state employees or full-time employees of school 
140.8   districts or other political subdivisions of the state may not 
140.9   receive any per diem payment for service on the board. 
140.10     <i>(Effective Date: Section 8 (128C.01, subdivision 4) is</i> 
140.11  <i>effective immediately.)</i> 
140.12     Sec. 9.  Minnesota Statutes 1998, section 128C.01, 
140.13  subdivision 5, is amended to read: 
140.14     Subd. 5.  [CERTAIN COMMERCIAL RELATIONSHIPS PROHIBITED.] 
140.15  The board may ~~not~~ enter into corporate partnerships or similar 
140.16  agreements. ~~with any business or commercial organization that~~ 
140.17  ~~sells products or services used by student or adult participants~~ 
140.18  ~~in league activities while they participate in activities~~ 
140.19  ~~regulated by the league.~~  The board may sell advertising to any 
140.20  such business or organization if the advertising is clearly 
140.21  identified as advertising paid for by the business or commercial 
140.22  organization. 
140.23     <i>(Effective Date: Section 9 (128C.01, subdivision 5) is</i> 
140.24  <i>effective for the 1999-2000 school year.)</i> 
140.25     Sec. 10.  [128C.015] [OMBUDSPERSON.] 
140.26     The state high school league shall appoint an ombudsperson 
140.27  who shall be available for persons concerned about league 
140.28  bylaws, policies, rules, or other issues and who feel that their 
140.29  concerns have not received proper attention.  The ombudsperson 
140.30  also may investigate issues such as a student's eligibility and 
140.31  may advocate on behalf of parents and students before the 
140.32  league's representative assembly.  The league and the 
140.33  commissioner must publicize the availability of the 
140.34  ombudsperson's services using means reasonably calculated to 
140.35  inform interested persons.  One form of notice must be the 
140.36  Internet where the league must include on its Internet website 
141.1   the name, address, and telephone number of the ombudsperson. 
141.2      <i>(Effective Date: Section 10 (128C.015) is effective for the</i> 
141.3   <i>1999-2000 school year and later.)</i> 
141.4      Sec. 11.  Minnesota Statutes 1998, section 128C.02, is 
141.5   amended by adding a subdivision to read: 
141.6      Subd. 9.  [PURCHASING.] In purchasing goods and services, 
141.7   the league must follow all laws that apply to school districts 
141.8   under sections 123B.52 and 471.345. 
141.9      <i>(Effective Date: Section 11 (128C.02, subdivision 9) is</i> 
141.10  <i>effective for the 1999-2000 school year and later.)</i> 
141.11     Sec. 12.  Minnesota Statutes 1998, section 128C.12, 
141.12  subdivision 1, is amended to read: 
141.13     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
141.14  auditor annually must examine the accounts of, and audit all 
141.15  money paid to, the state high school league by its members.  The 
141.16  audit must include financial and compliance issues.  The state 
141.17  auditor must also audit all money derived from any event 
141.18  sponsored by the league.  ~~League audits must include audits of~~ 
141.19  The state auditor may audit administrative regions of the league.
141.20  ~~The league and its~~ Administrative regions of the league may ~~not~~ 
141.21  contract with private auditors.  The scope of the state 
141.22  auditor's examinations of the league must be agreed upon by the 
141.23  board and the state auditor, provided that all requirements of 
141.24  this section must be met. 
141.25     <i>(Effective Date: Section 12 (128C.12, subdivision 1) is</i> 
141.26  <i>effective for the 1999-2000 school year and later.)</i> 
141.27     Sec. 13.  Minnesota Statutes 1998, section 128C.20, is 
141.28  amended to read: 
141.29     128C.20 [COMMISSIONER REVIEW OF LEAGUE.] 
141.30     Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
141.31  children, families, and learning shall ~~obtain~~ submit a written 
141.32  report to the legislature after obtaining and ~~review~~ reviewing 
141.33  the following information about the league: 
141.34     (1) an accurate and concise summary of the annual financial 
141.35  and compliance audit prepared by the state auditor that includes 
141.36  information about the compensation of and the expenditures by 
142.1   the executive director of the league and league staff; 
142.2      (2) a list of all complaints filed with the league and all 
142.3   lawsuits filed against the league and the disposition of those 
142.4   complaints and lawsuits; 
142.5      (3) an explanation of the executive director's performance 
142.6   review; 
142.7      (4) information about the extent to which the league has 
142.8   implemented its affirmative action policy, its comparable worth 
142.9   plan, and its sexual harassment and violence policy and rules; 
142.10  and 
142.11     (5) an evaluation of any proposed changes in league bylaws 
142.12  and policy.  Copies of the commissioner's report must be 
142.13  provided to the representative assembly and the board of 
142.14  directors before a change in the league's bylaws or policies. 
142.15     Subd. 2.  [RECOMMEND LAWS.] The commissioner may recommend 
142.16  to the legislature whether any legislation is made necessary by 
142.17  league activities.  
142.18     Subd. 3.  [ISSUE REVIEW.] The commissioner of children, 
142.19  families, and learning may examine league-related issues, at the 
142.20  discretion of the commissioner. 
142.21     <i>(Effective Date: Section 13 (128C.20) is effective for the</i> 
142.22  <i>1999-2000 school year and later.)</i> 
142.23     Sec. 14.  [TRANSITION.] 
142.24     Notwithstanding Minnesota Statutes, section 15.0597, the 
142.25  terms of persons who are members appointed by the governor 
142.26  before the effective date of section 8, shall have their term 
142.27  end on July 31 of the year following the last year of their 
142.28  appointment. 
142.29     <i>(Effective Date: Section 14 (transition) is effective</i> 
142.30  <i>immediately.)</i> 
142.31     Sec. 15.  [REVISOR INSTRUCTION.] 
142.32     In the next and subsequent editions of Minnesota Statutes 
142.33  and Minnesota Rules, the revisor shall change all references of 
142.34  the "Lola and Rudy Perpich Minnesota center for arts education" 
142.35  to the "Perpich center for arts education." 
142.36     Sec. 16.  [EFFECTIVE DATES.] 
143.1      When preparing the prekindergarten through grade 12 
143.2   education conference committee report for adoption by the 
143.3   legislature, the revisor shall combine all effective date 
143.4   notations in this article into this effective dates section. 
143.5                              ARTICLE 10 
143.6                            STATE AGENCIES 
143.7      Section 1.  Minnesota Statutes 1998, section 119A.01, 
143.8   subdivision 1, is amended to read: 
143.9      Subdivision 1.  [ABOLISHMENT.] The position of commissioner 
143.10  of education and the department of education are abolished.  The 
143.11  employees of the department of education are transferred to the 
143.12  department of education, children, and families~~, and learning~~ 
143.13  under section 15.039, subdivision 7. 
143.14     Sec. 2.  Minnesota Statutes 1998, section 119A.01, 
143.15  subdivision 2, is amended to read: 
143.16     Subd. 2.  [ESTABLISHMENT.] The department of education, 
143.17  children, and families~~, and learning~~ is established. 
143.18     Sec. 3.  [EXEMPTION TO LABOR DAY SCHOOL START RESTRICTION.] 
143.19     Notwithstanding Minnesota Statutes, section 120A.40, the 
143.20  Lola and Rudy Perpich Minnesota Center for Arts Education may 
143.21  begin the 1999-2000 and 2000-2001 school years any day prior to 
143.22  Labor Day. 
143.23     <i>(Effective Date:  Section 3 (Exemption to School Start) is</i> 
143.24  <i>effective the day following final enactment.)</i> 
143.25     Sec. 4.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
143.26  AND LEARNING.] 
143.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
143.28  LEARNING.] The sums in this section are appropriated from the 
143.29  general fund unless otherwise indicated to the department of 
143.30  children, families, and learning for the fiscal years designated.
143.31     Subd. 2.  [DEPARTMENT.] For the department of children, 
143.32  families, and learning: 
143.33       $30,099,000    .....      2000
143.34       $27,385,000    .....      2001
143.35     (a) Any balance in the first year does not cancel but is 
143.36  available in the second year. 
144.1      (b) $21,000 each year is from the trunk highway fund. 
144.2      (c) $634,000 in 2000 and $642,000 in 2001 is for the 
144.3   academic excellence foundation. 
144.4      (d) $255,000 in 2000 is for the state board of education. 
144.5      (e) $687,000 in 2000 and $692,000 in 2001 is for the board 
144.6   of teaching. 
144.7      (f) The expenditures of federal grants and aids as shown in 
144.8   the biennial budget document and its supplements are approved 
144.9   and appropriated and shall be spent as indicated. 
144.10     (g) At least $50,000 is to ensure compliance with state and 
144.11  federal laws prohibiting discrimination because of race, 
144.12  religion, or sex.  The department shall use the appropriation to 
144.13  provide state-level leadership on equal education opportunities 
144.14  which promote elimination of discriminatory practices in the 
144.15  areas of race, religion, and sex in public schools and public 
144.16  educational agencies under its general supervision and on 
144.17  activities including, at least, compliance monitoring and 
144.18  voluntary compliance when local school district deficiencies are 
144.19  found. 
144.20     (h) $2,000,000 in 2000 is for litigation-related costs.  
144.21  This is a one-time appropriation. 
144.22     (i) $78,000 each year is for additional staffing and 
144.23  technology for the Minnesota library for the blind and 
144.24  physically handicapped. 
144.25     Sec. 5.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
144.26  CENTER FOR ARTS EDUCATION.] 
144.27     The sums indicated in this section are appropriated from 
144.28  the general fund to the center for arts education for the fiscal 
144.29  years designated: 
144.30       $6,889,000     .....     2000
144.31       $7,035,000     .....     2001
144.32     Of each year's appropriation, $154,000 is to fund artist 
144.33  and arts organization participation in the education residency 
144.34  and education technology projects, $75,000 is for school support 
144.35  for the residency project, $121,000 is for further development 
144.36  of the partners:  arts and school for students (PASS) program, 
145.1   including pilots, and $220,000 is to fund asset preservation and 
145.2   facility repair.  The center for arts education, in cooperation 
145.3   with the Minnesota arts board, shall develop the guidelines for 
145.4   the education residency project and the PASS program.  The 
145.5   Minnesota arts board shall participate in the review and 
145.6   allocation process.  The center for arts education and the 
145.7   Minnesota arts board shall cooperate to fund these projects. 
145.8      Any balance in the first year does not cancel but is 
145.9   available in the second year. 
145.10     Sec. 6.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
145.11     (a) The sums indicated in this section are appropriated 
145.12  from the general fund to the Faribault academies for the deaf 
145.13  and the blind for the fiscal years designated:  
145.14       $10,025,000    .....     2000
145.15       $10,244,000    .....     2001 
145.16     (b) Of this appropriation, $75,000 in each fiscal year is 
145.17  for asset preservation and facility repair.  
145.18     (c) Any balance in the first year does not cancel but is 
145.19  available in the second year. 
145.20     Sec. 7.  [REVISOR INSTRUCTION.] 
145.21     In the next and subsequent editions of Minnesota Statutes 
145.22  and Minnesota Rules, all references to the commissioner of 
145.23  children, families, and learning shall be changed to the 
145.24  commissioner of education, children, and families and all 
145.25  references to the department of children, families, and learning 
145.26  shall be changed to the department of education, children, and 
145.27  families. 
145.28     Sec. 8.  [EFFECTIVE DATE.] 
145.29     When preparing the prekindergarten through grade 12 
145.30  education conference committee report for adoption by the 
145.31  legislature, the revisor shall combine all effective date 
145.32  notations in this article into this effective date section.