1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12; 
  1.3             providing for general education; special education; 
  1.4             interagency services and lifelong learning; facilities 
  1.5             and organization; policies promoting academic 
  1.6             excellence; education policy issues; libraries; state 
  1.7             agencies; appropriating money; amending Minnesota 
  1.8             Statutes 1996, sections 43A.17, subdivisions 9 and 10; 
  1.9             120.03, subdivision 1; 120.06, subdivision 2a; 
  1.10            120.064, subdivisions 5 and 11; 120.101, subdivision 
  1.11            3; 120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 9, and 
  1.12            15; 120.1701, subdivisions 2, 5, 11, and 17; 120.173, 
  1.13            subdivisions 1 and 6; 120.73, subdivision 1; 121.1115, 
  1.14            by adding subdivisions; 121.908, subdivisions 2 and 3; 
  1.15            122.23, subdivision 6; 123.35, subdivision 19a; 
  1.16            123.39, subdivision 1, and by adding a subdivision; 
  1.17            123.935, subdivisions 1 and 2; 124.14, subdivision 7, 
  1.18            and by adding a subdivision; 124.17, subdivision 2, 
  1.19            and by adding a subdivision; 124.248, subdivisions 1 
  1.20            and 1a; 124.2713, subdivision 6a; 124.273, by adding a 
  1.21            subdivision; 124.32, by adding a subdivision; 
  1.22            124.3201, subdivision 5; 124.323, by adding 
  1.23            subdivisions; 124.646, subdivision 4; 124.755, 
  1.24            subdivision 1; 124.95, subdivision 6; 124A.03, 
  1.25            subdivision 3c; 124A.034, subdivision 2; 124A.036, 
  1.26            subdivisions 1a, 4, 6, and by adding a subdivision; 
  1.27            124A.22, by adding a subdivision; 124A.292, 
  1.28            subdivision 3; 124A.30; 124C.45, subdivision 2; 
  1.29            124C.47; 124C.48, by adding a subdivision; 125.191; 
  1.30            126.237; 127.27, subdivisions 2 and 4; 256B.0625, 
  1.31            subdivision 26; 260.015, subdivision 19; and 260.132, 
  1.32            subdivision 4; Minnesota Statutes 1997 Supplement, 
  1.33            sections 120.101, subdivision 5; 120.1701, subdivision 
  1.34            3; 120.181; 121.11, subdivision 7c; 121.1113, 
  1.35            subdivision 1; 121.904, subdivision 4a; 124.17, 
  1.36            subdivisions 1d, 6, and 7; 124.248, subdivisions 2a 
  1.37            and 6; 124.2601, subdivisions 3 and 6; 124.2711, 
  1.38            subdivision 2a; 124.2713, subdivision 6; 124.3111, 
  1.39            subdivisions 2 and 3; 124.3201, subdivisions 1, 2, and 
  1.40            4; 124.6475; 124.648, subdivision 3; 124.91, 
  1.41            subdivisions 1 and 5; 124.916, subdivision 2; 
  1.42            124A.036, subdivision 5; 124A.22, subdivisions 1 and 
  1.43            11; 124A.23, subdivision 1; 124A.28, subdivisions 1 
  1.44            and 1a; 124C.46, subdivisions 1 and 2; 126.79, 
  1.45            subdivisions 3, 6, 7, 8, and 9; 127.27, subdivisions 
  1.46            10 and 11; 127.281; 127.31, subdivision 15; 127.32; 
  2.1             127.36, subdivision 1; and 127.38; Laws 1992, chapter 
  2.2             499, article 7, section 31; Laws 1997, First Special 
  2.3             Session chapter 4, article 1, section 58; article 1, 
  2.4             section 61, subdivision 3; article 2, section 51, 
  2.5             subdivisions 2, 4, 5, and 29; article 3, section 23, 
  2.6             by adding a subdivision; article 3, section 25, 
  2.7             subdivisions 2 and 4; article 4, section 35, 
  2.8             subdivision 9; article 5, section 24, subdivision 4; 
  2.9             article 5, section 28, subdivisions 4, 9, and 12; 
  2.10            article 6, section 20, subdivision 4; article 8, 
  2.11            section 4, subdivision 3; article 9, section 11; 
  2.12            article 9, section 12, subdivision 8; article 10, 
  2.13            section 3, subdivision 2; article 10, section 4; and 
  2.14            article 10, section 5; proposing coding for new law in 
  2.15            Minnesota Statutes, chapters 120; 124A; and 126; 
  2.16            repealing Minnesota Statutes 1996, sections 124.2713, 
  2.17            subdivision 6b; 124.647; 124A.292, subdivisions 2 and 
  2.18            4; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711, 
  2.19            subdivision 1; 124A.72; 124A.73; and 126.12; Minnesota 
  2.20            Statutes 1997 Supplement, sections 124.2601, 
  2.21            subdivisions 4 and 5; 124.912, subdivisions 2 and 3; 
  2.22            124A.711, subdivision 2; and 135A.081; Laws 1993, 
  2.23            chapter 146, article 5, section 20, as amended; Laws 
  2.24            1997, chapter 231, article 1, section 17; Minnesota 
  2.25            Rules, part 3525.2750, subpart 1, item B. 
  2.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.27                             ARTICLE 1 
  2.28                         GENERAL EDUCATION 
  2.29     Section 1.  Minnesota Statutes 1997 Supplement, section 
  2.30  121.904, subdivision 4a, is amended to read: 
  2.31     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.32  settlement revenue" means the current, delinquent, and 
  2.33  manufactured home property tax receipts collected by the county 
  2.34  and distributed to the school district, including distributions 
  2.35  made pursuant to section 279.37, subdivision 7, and excluding 
  2.36  the amount levied pursuant to section 124.914, subdivision 1. 
  2.37     (b) In June of each year, the school district shall 
  2.38  recognize as revenue, in the fund for which the levy was made, 
  2.39  the lesser of:  
  2.40     (1) the May, June, and July school district tax settlement 
  2.41  revenue received in that calendar year; or 
  2.42     (2) the sum of the state aids and credits enumerated in 
  2.43  section 124.155, subdivision 2, which are for the fiscal year 
  2.44  payable in that fiscal year plus an amount equal to the levy 
  2.45  recognized as revenue in June of the prior year plus 31 percent 
  2.46  of the amount of the levy certified in the prior calendar year 
  2.47  according to section 124A.03, subdivision 2; or 
  2.48     (3)(i) ~~7.0~~ 6.8 percent of the lesser of the amount of the 
  3.1   general education levy certified in the prior calendar year 
  3.2   according to section 124A.23, subdivision 2, or the difference 
  3.3   between the amount of the total general fund levy certified in 
  3.4   the prior calendar year and the sum of the amounts certified in 
  3.5   the prior calendar year according to sections 124A.03, 
  3.6   subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
  3.7   paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
  3.8   paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  3.9      (ii) 31 percent of the referendum levy certified in the 
  3.10  prior calendar year according to section 124A.03, subdivision 2; 
  3.11  plus 
  3.12     (iii) the entire amount of the levy certified in the prior 
  3.13  calendar year according to sections 124.315, subdivision 4; 
  3.14  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
  3.15  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  3.16  124.918, subdivision 6. 
  3.17     (c) In July of each year, the school district shall 
  3.18  recognize as revenue that portion of the school district tax 
  3.19  settlement revenue received in that calendar year and not 
  3.20  recognized as revenue for the previous fiscal year pursuant to 
  3.21  clause (b).  
  3.22     (d) All other school district tax settlement revenue shall 
  3.23  be recognized as revenue in the fiscal year of the settlement. 
  3.24  Portions of the school district levy assumed by the state, 
  3.25  including prior year adjustments and the amount to fund the 
  3.26  school portion of the reimbursement made pursuant to section 
  3.27  273.425, shall be recognized as revenue in the fiscal year 
  3.28  beginning in the calendar year for which the levy is payable. 
  3.29     Sec. 2.  Minnesota Statutes 1996, section 121.908, 
  3.30  subdivision 2, is amended to read: 
  3.31     Subd. 2.  Each district shall submit to the commissioner by 
  3.32  ~~August~~ September 15 of each year ~~an~~ unaudited financial 
  3.33  ~~statement~~ data for the preceding fiscal year.  This ~~statement~~ 
  3.34  financial data shall be submitted ~~on forms~~ in the format 
  3.35  prescribed by the commissioner. 
  3.36     Sec. 3.  Minnesota Statutes 1996, section 121.908, 
  4.1   subdivision 3, is amended to read: 
  4.2      Subd. 3.  By ~~December 31~~ November 30 of the calendar year 
  4.3   of the submission of the unaudited financial ~~statement~~ data, the 
  4.4   district shall provide to the commissioner ~~and state auditor an~~ 
  4.5   audited financial data for the preceding fiscal year.  An 
  4.6   audited financial statement prepared in a form which will allow 
  4.7   comparison with and correction of material differences in the 
  4.8   unaudited ~~statement~~ financial data shall be submitted to the 
  4.9   commissioner and the state auditor by November 30.  The audited 
  4.10  financial statement must also provide a statement of assurance 
  4.11  pertaining to uniform financial accounting and reporting 
  4.12  standards compliance and a copy of the management letter 
  4.13  submitted to the district by the school district's auditor. 
  4.14     Sec. 4.  Minnesota Statutes 1996, section 123.39, 
  4.15  subdivision 1, is amended to read: 
  4.16     Subdivision 1.  The board may provide for the 
  4.17  transportation of pupils to and from school and for any other 
  4.18  purpose.  The board may also provide for the transportation of 
  4.19  pupils to schools in other districts for grades and departments 
  4.20  not maintained in the district, including high school, at the 
  4.21  expense of the district, when funds are available therefor and 
  4.22  if agreeable to the district to which it is proposed to 
  4.23  transport the pupils, for the whole or a part of the school 
  4.24  year, as it may deem advisable, and subject to its rules.  In 
  4.25  any school district, the board shall arrange for the attendance 
  4.26  of all pupils living two miles or more from the school, except 
  4.27  pupils whose transportation privileges have been revoked under 
  4.28  section 123.805, subdivision 1, clause (6), or 123.7991, 
  4.29  paragraph (b), through suitable provision for transportation or 
  4.30  through the boarding and rooming of the pupils who may be more 
  4.31  economically and conveniently provided for by that 
  4.32  means.  Arrangement for attendance may include a requirement 
  4.33  that the student's parent or guardian request transportation 
  4.34  services from the school district.  The board shall provide 
  4.35  transportation to and from the home of a child with a disability 
  4.36  not yet enrolled in kindergarten when special instruction and 
  5.1   services under sections 120.17 and 120.1701 are provided in a 
  5.2   location other than in the child's home.  When transportation is 
  5.3   provided, scheduling of routes, establishment of the location of 
  5.4   bus stops, manner and method of transportation, control and 
  5.5   discipline of school children and any other matter relating 
  5.6   thereto shall be within the sole discretion, control, and 
  5.7   management of the school board.  The district may provide for 
  5.8   the transportation of pupils or expend a reasonable amount for 
  5.9   room and board of pupils whose attendance at school can more 
  5.10  economically and conveniently be provided for by that means or 
  5.11  who attend school in a building rented or leased by a district 
  5.12  within the confines of an adjacent district. 
  5.13     Sec. 5.  Minnesota Statutes 1996, section 123.39, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 1a.  [VOLUNTARY SURRENDER OF TRANSPORTATION 
  5.16  PRIVILEGES.] The parent or guardian of a secondary student may 
  5.17  voluntarily surrender the secondary student's to and from school 
  5.18  transportation privileges granted under subdivision 1.  A 
  5.19  district may reduce parking fees or offer other incentives to a 
  5.20  student who voluntarily waives these transportation privileges.  
  5.21  The school district shall inform each secondary student who has 
  5.22  voluntarily surrendered transportation privileges of the 
  5.23  location of the nearest school bus stop and establish a policy 
  5.24  allowing the student to ride the bus on an occasional basis.  
  5.25  The district must also establish a process to allow a student to 
  5.26  regain transportation privileges if the student's circumstances 
  5.27  change during the school year. 
  5.28     Sec. 6.  Minnesota Statutes 1996, section 124.14, 
  5.29  subdivision 7, is amended to read: 
  5.30     Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
  5.31  appropriation from the general fund to the department of 
  5.32  children, families, and learning for any education aid or grant 
  5.33  authorized in this chapter and chapters 121, 123, 124A, 124C, 
  5.34  125, 126, and 134, excluding appropriations under sections 
  5.35  124.255, 124.26, 124.2601, 124.2605, 124.261, 124.2615, 
  5.36  124.2711, 124.2712, 124.2713, 124.2714, 124.2715, and 124.2716, 
  6.1   exceeds the amount required, the commissioner of children, 
  6.2   families, and learning may transfer the excess to any education 
  6.3   aid or grant appropriation that is insufficient.  However, 
  6.4   section 124A.032 applies to a deficiency in the direct 
  6.5   appropriation for general education aid.  Excess appropriations 
  6.6   shall be allocated proportionately among aids or grants that 
  6.7   have insufficient appropriations.  The commissioner of finance 
  6.8   shall make the necessary transfers among appropriations 
  6.9   according to the determinations of the commissioner of children, 
  6.10  families, and learning.  If the amount of the direct 
  6.11  appropriation for the aid or grant plus the amount transferred 
  6.12  according to this subdivision is insufficient, the commissioner 
  6.13  shall prorate the available amount among eligible districts.  
  6.14  The state is not obligated for any additional amounts.  
  6.15     Sec. 7.  Minnesota Statutes 1996, section 124.14, is 
  6.16  amended by adding a subdivision to read: 
  6.17     Subd. 7a.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
  6.18  PROGRAMS.] If a direct appropriation from the general fund to 
  6.19  the department of children, families, and learning for an 
  6.20  education aid or grant authorized under section 124.255, 124.26, 
  6.21  124.2601, 124.2605, 124.261, 124.2615, 124.2711, 124.2712, 
  6.22  124.2713, 124.2714, 124.2715, or 124.2716 exceeds the amount 
  6.23  required, the commissioner of children, families, and learning 
  6.24  may transfer the excess to any education aid or grant 
  6.25  appropriation that is insufficiently funded under these sections.
  6.26  Excess appropriations shall be allocated proportionately among 
  6.27  aids or grants that have insufficient appropriations.  The 
  6.28  commissioner of finance shall make the necessary transfers among 
  6.29  appropriations according to the determinations of the 
  6.30  commissioner of children, families, and learning.  If the amount 
  6.31  of the direct appropriation for the aid or grant plus the amount 
  6.32  transferred according to this subdivision is insufficient, the 
  6.33  commissioner shall prorate the available amount among eligible 
  6.34  districts.  The state is not obligated for any additional 
  6.35  amounts. 
  6.36     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  7.1   124.17, subdivision 1d, is amended to read: 
  7.2      Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  7.3   revenue pupil units for fiscal year 1998 and thereafter must be 
  7.4   computed according to this subdivision.  
  7.5      (a) The compensation revenue concentration percentage for 
  7.6   each building in a district equals the product of 100 times the 
  7.7   ratio of:  
  7.8      (1) the sum of the number of pupils enrolled in the 
  7.9   building eligible to receive free lunch plus one-half of the 
  7.10  pupils eligible to receive reduced priced lunch on October 1 of 
  7.11  the previous fiscal year; to 
  7.12     (2) the number of pupils enrolled in the building on 
  7.13  October 1 of the previous fiscal year. 
  7.14     (b) The compensation revenue pupil weighting factor for a 
  7.15  building equals the lesser of one or the quotient obtained by 
  7.16  dividing the building's compensation revenue concentration 
  7.17  percentage by 80.0.  
  7.18     (c) The compensation revenue pupil units for a building 
  7.19  equals the product of:  
  7.20     (1) the sum of the number of pupils enrolled in the 
  7.21  building eligible to receive free lunch and one-half of the 
  7.22  pupils eligible to receive reduced priced lunch on October 1 of 
  7.23  the previous fiscal year times the equity adjustment factor; 
  7.24  times 
  7.25     (2) the compensation revenue pupil weighting factor for the 
  7.26  building times the equity adjustment factor; times 
  7.27     (3) .60. 
  7.28     (d) For fiscal years 1999 and later, a district qualifies 
  7.29  for the equity adjustment factor if the district served more 
  7.30  than 5,000 pupils eligible to receive free or reduced price 
  7.31  lunch during the previous fiscal year and if the district's 
  7.32  percentage of pupils eligible to receive free or reduced price 
  7.33  lunch during the previous fiscal year is less than the statewide 
  7.34  average percentage for that year.  The equity adjustment factor 
  7.35  equals the ratio of the statewide percentage of pupils eligible 
  7.36  to receive free or reduced price lunch during the previous 
  8.1   fiscal year to the district's percentage of pupils eligible to 
  8.2   receive free or reduced price lunch. 
  8.3      (e) Notwithstanding paragraphs (a) to (c), for charter 
  8.4   schools and contracted alternative programs in the first year of 
  8.5   operation, compensation revenue pupil units shall be computed 
  8.6   using data for the current fiscal year.  If the charter school 
  8.7   or contracted alternative program begins operation after October 
  8.8   1, compensatory revenue pupil units shall be computed based on 
  8.9   pupils enrolled on an alternate date determined by the 
  8.10  commissioner, and the compensation revenue pupil units shall be 
  8.11  prorated based on the ratio of the number of days of student 
  8.12  instruction to 170 days. 
  8.13     (f) The percentages in this subdivision must be based on 
  8.14  the count of individual pupils and not on a building average or 
  8.15  minimum. 
  8.16     Sec. 9.  Minnesota Statutes 1996, section 124.17, is 
  8.17  amended by adding a subdivision to read: 
  8.18     Subd. 5a.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 
  8.19  pupil who has not passed an assessment of basic graduation 
  8.20  standards in reading, writing, or mathematics is enrolled in a 
  8.21  mastery of basic skills summer school program that is not a part 
  8.22  of the regular school term and the student has a total 
  8.23  enrollment time of more than 1,020 hours in a school year, the 
  8.24  pupil may be counted as more than one pupil in average daily 
  8.25  membership for purposes of this subdivision only.  The amount in 
  8.26  excess of one pupil must be determined by the ratio of the 
  8.27  number of hours of instruction provided to that pupil in excess 
  8.28  of 1,020 hours.  For each pupil, only the amount of summer 
  8.29  school enrollment time attributable to basic skills instruction 
  8.30  may be used to calculate the additional hours in the school 
  8.31  year.  Basic skills instruction is defined as in Minnesota's 
  8.32  rules on graduation standards and includes reading, writing, and 
  8.33  mathematics.  Hours that occur after the close of the 
  8.34  instructional year in June are attributable to the following 
  8.35  fiscal year.  A pupil for whom payment is made under this 
  8.36  subdivision may be counted by a district only for the 
  9.1   computation of basic revenue, according to section 124A.22, 
  9.2   subdivision 2. 
  9.3      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  9.4   124.17, subdivision 6, is amended to read: 
  9.5      Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
  9.6   commissioner shall determine the number of children eligible to 
  9.7   receive either a free or reduced priced lunch on October 1 each 
  9.8   year.  Children enrolled in a building on October 1 and 
  9.9   determined to be eligible to receive free or reduced price lunch 
  9.10  by January 15 of the following year shall be counted as eligible 
  9.11  on October 1 for purposes of subdivision 1d.  The commissioner 
  9.12  may use federal definitions for these purposes and may adjust 
  9.13  these definitions as appropriate.  The commissioner may adopt 
  9.14  reporting guidelines to assure accuracy of data counts and 
  9.15  eligibility.  Districts shall use any guidelines adopted by the 
  9.16  commissioner. 
  9.17     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
  9.18  124.17, subdivision 7, is amended to read: 
  9.19     Subd. 7.  [LEP PUPIL UNITS.] (a) Limited English 
  9.20  proficiency pupil units for fiscal year 1998 and thereafter 
  9.21  shall be determined according to this subdivision. 
  9.22     (b) The limited English proficiency concentration 
  9.23  percentage for a district equals the product of 100 times the 
  9.24  ratio of: 
  9.25     (1) the number of pupils of limited English proficiency 
  9.26  enrolled in the district during the current fiscal year; to 
  9.27     (2) the number of pupils in average daily membership 
  9.28  enrolled in the district. 
  9.29     (c) The limited English proficiency pupil units for each 
  9.30  pupil enrolled in a program for pupils of limited English 
  9.31  proficiency in accordance with sections 126.261 to 126.269 
  9.32  equals the lesser of one or the quotient obtained by dividing 
  9.33  the limited English proficiency concentration percentage for the 
  9.34  pupil's district of enrollment by 11.5. 
  9.35     (d) Limited English proficiency pupil units shall be 
  9.36  counted by the district of enrollment. 
 10.1      (e) Notwithstanding paragraph (d), for the purposes of this 
 10.2   subdivision, pupils enrolled in a cooperative or intermediate 
 10.3   school district shall be counted by the district of residence. 
 10.4      Sec. 12.  Minnesota Statutes 1996, section 124.248, 
 10.5   subdivision 1, is amended to read: 
 10.6      Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 10.7   education revenue shall be paid to a charter school as though it 
 10.8   were a school district.  The general education revenue for each 
 10.9   pupil unit is the state average general education revenue per 
 10.10  pupil unit minus ~~$170~~ an amount equal to the product of the 
 10.11  formula allowance according to section 124A.22, subdivision 2, 
 10.12  times .0485, calculated without ~~compensatory~~ basic skills 
 10.13  revenue, transportation sparsity revenue, and the transportation 
 10.14  portion of the transition revenue adjustment, plus ~~compensatory~~ 
 10.15  basic skills revenue as though the school were a school district.
 10.16     Sec. 13.  Minnesota Statutes 1996, section 124.248, 
 10.17  subdivision 1a, is amended to read: 
 10.18     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 10.19  shall be paid to a charter school that provides transportation 
 10.20  services according to section 120.064, subdivision 15, according 
 10.21  to this subdivision.  Transportation aid shall equal 
 10.22  transportation revenue.  
 10.23     ~~(a)~~ In addition to the revenue under subdivision 1, a 
 10.24  charter school providing transportation services shall receive 
 10.25  general education aid for each pupil unit equal to the sum of 
 10.26  ~~$170~~ an amount equal to the product of the formula allowance 
 10.27  according to section 124A.22, subdivision 2, times .0485, plus 
 10.28  the transportation sparsity allowance for the school district in 
 10.29  which the charter school is located, plus the transportation 
 10.30  transition allowance for the school district in which the 
 10.31  charter school is located.  
 10.32     ~~(b) For the first two years that a charter school is~~ 
 10.33  ~~providing transportation services, the special programs~~ 
 10.34  ~~transportation revenue equals the charter school's actual cost~~ 
 10.35  ~~in the current school year for transportation services for~~ 
 10.36  ~~children with disabilities under section 124.223, subdivisions~~ 
 11.1   ~~4, 5, 7, and 8.  For the third year of transportation services~~ 
 11.2   ~~and later fiscal years, the special programs transportation~~ 
 11.3   ~~revenue shall be computed according to section 124.225,~~ 
 11.4   ~~subdivision 14.~~  
 11.5      Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 11.6   124.248, subdivision 2a, is amended to read: 
 11.7      Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
 11.8   finds it economically advantageous to rent or lease a building 
 11.9   or land for any instructional purposes and it determines that 
 11.10  the total operating capital revenue under section 124A.22, 
 11.11  subdivision 10, is insufficient for this purpose, it may apply 
 11.12  to the commissioner for building lease aid for this purpose.  
 11.13  Criteria for aid approval and revenue uses shall be as defined 
 11.14  for the building lease levy in section 124.91, subdivision 1, 
 11.15  paragraphs (a) and (b).  The amount of building lease aid per 
 11.16  pupil unit served for a charter school for any year shall not 
 11.17  exceed the lesser of (a) 80 percent of the approved cost or (b) 
 11.18  the product of the ~~actual~~ pupil units served for the current 
 11.19  school year times the sum of the state average debt redemption 
 11.20  fund revenue plus capital revenue, according to section 124.91, 
 11.21  per ~~actual~~ pupil unit served for the current fiscal year. 
 11.22     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 11.23  124.248, subdivision 6, is amended to read: 
 11.24     Subd. 6.  [START-UP COSTS.] During the first two years of a 
 11.25  charter school's operation, the charter school is eligible for 
 11.26  aid to pay for start-up costs and additional operating costs. 
 11.27  Start-up cost aid equals the greater of: 
 11.28     (1) $50,000 per charter school; or 
 11.29     (2) $500 times the charter school's pupil units served for 
 11.30  that year. 
 11.31     Sec. 16.  Minnesota Statutes 1996, section 124.3201, 
 11.32  subdivision 5, is amended to read: 
 11.33     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 11.34  A school district's special education revenue for fiscal year 
 11.35  1996 and later equals the state total special education revenue, 
 11.36  minus the amount determined under paragraph (b), times the ratio 
 12.1   of the district's adjusted special education base revenue to the 
 12.2   state total adjusted special education base revenue.  If the 
 12.3   state board of education modifies its rules for special 
 12.4   education in a manner that increases a school district's special 
 12.5   education obligations or service requirements, the commissioner 
 12.6   of children, families, and learning shall annually increase each 
 12.7   district's special education revenue by the amount necessary to 
 12.8   compensate for the increased service requirements.  The 
 12.9   additional revenue equals the cost in the current year 
 12.10  attributable to rule changes not reflected in the computation of 
 12.11  special education base revenue, multiplied by the appropriate 
 12.12  percentages from subdivision 2. 
 12.13     (b) Notwithstanding paragraph (a), if the special education 
 12.14  base revenue for a district equals zero, the special education 
 12.15  revenue equals the amount computed according to subdivision 2 
 12.16  using current year data.  
 12.17     (c) Notwithstanding paragraphs (a) and (b), if the special 
 12.18  education base revenue for a district is greater than zero, and 
 12.19  the base year amount for the district under subdivision 2, 
 12.20  paragraph (a), clause (7), equals zero, the special education 
 12.21  revenue equals the sum of the amount computed according to 
 12.22  paragraph (a), plus the amount computed according to subdivision 
 12.23  2, paragraph (a), clause (7), using current year data. 
 12.24     Sec. 17.  Minnesota Statutes 1996, section 124A.03, 
 12.25  subdivision 3c, is amended to read: 
 12.26     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
 12.27  year 1998 and later, a district's referendum allowance for 
 12.28  referendum authority under subdivision 1c is reduced as provided 
 12.29  in this subdivision.  
 12.30     (a) For referendum revenue authority approved before June 
 12.31  1, 1996, and effective for fiscal year 1997, the reduction 
 12.32  equals the amount of the reduction computed for fiscal year 1997 
 12.33  under subdivision 3b.  
 12.34     (b) For referendum revenue authority approved before June 
 12.35  1, 1996, and effective beginning in fiscal year 1998, the 
 12.36  reduction equals the amount of the reduction computed for fiscal 
 13.1   year 1998 under subdivision 3b. 
 13.2      (c) For referendum revenue authority approved after May 31, 
 13.3   1996, there is no reduction.  
 13.4      (d) For districts with more than one referendum authority, 
 13.5   the reduction shall be computed separately for each authority.  
 13.6   The reduction shall be applied first to authorities levied 
 13.7   against tax capacity, and then to authorities levied against 
 13.8   referendum market value.  For districts with more than one 
 13.9   authority levied against net tax capacity or against referendum 
 13.10  market value, the referendum allowance reduction shall be 
 13.11  applied first to the authority with the earliest expiration date.
 13.12     (e) When referendum authority approved before June 1, 1996, 
 13.13  expires, the referendum allowance reduction for a district shall 
 13.14  be decreased by the amount of the decrease in the district's 
 13.15  total referendum allowance under subdivision 1c.  For districts 
 13.16  with more than one referendum authority remaining after the 
 13.17  expiration, the amount of any remaining allowance reduction 
 13.18  shall be reallocated among the remaining referendum authority 
 13.19  approved before June 1, 1996, according to paragraph (d). 
 13.20     (f) For a newly reorganized district created after July 1, 
 13.21  1996, the referendum revenue reduction equals the lesser of the 
 13.22  amount calculated for the combined district, or the sum of the 
 13.23  amounts by which each of the reorganizing district's 
 13.24  supplemental revenue reduction exceeds its respective 
 13.25  supplemental revenue allowances calculated for the year 
 13.26  preceding the year of reorganization. 
 13.27     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 13.28  124A.036, subdivision 5, is amended to read: 
 13.29     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 13.30  education aid for districts must be adjusted for each pupil 
 13.31  attending a nonresident district under sections 120.062, 
 13.32  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 13.33  The adjustments must be made according to this subdivision. 
 13.34     (a) General education aid paid to a resident district must 
 13.35  be reduced by an amount equal to the general education revenue 
 13.36  exclusive of ~~compensatory~~ basic skills revenue attributable to 
 14.1   the pupil in the resident district. 
 14.2      (b) General education aid paid to a district serving a 
 14.3   pupil in programs listed in this subdivision shall be increased 
 14.4   by an amount equal to the general education revenue exclusive of 
 14.5   ~~compensatory~~ basic skills revenue attributable to the pupil in 
 14.6   the nonresident district.  
 14.7      (c) If the amount of the reduction to be made from the 
 14.8   general education aid of the resident district is greater than 
 14.9   the amount of general education aid otherwise due the district, 
 14.10  the excess reduction must be made from other state aids due the 
 14.11  district. 
 14.12     (d) The district of residence shall pay tuition to a 
 14.13  district or an area learning center, operated according to 
 14.14  paragraph (e), providing special instruction and services to a 
 14.15  pupil with a disability, as defined in section 120.03, or a 
 14.16  pupil, as defined in section 120.181, who is enrolled in a 
 14.17  program listed in this subdivision.  The tuition shall be equal 
 14.18  to (1) the actual cost of providing special instruction and 
 14.19  services to the pupil, including a proportionate amount for debt 
 14.20  service and for capital expenditure facilities and equipment, 
 14.21  and debt service but not including any amount for 
 14.22  transportation, minus (2) the amount of general education aid 
 14.23  and special education aid, attributable to that pupil, that is 
 14.24  received by the district providing special instruction and 
 14.25  services. 
 14.26     (e) An area learning center operated by a service 
 14.27  cooperative, intermediate district, education district, or a 
 14.28  joint powers cooperative may elect through the action of the 
 14.29  constituent boards to charge tuition for pupils rather than to 
 14.30  calculate general education aid adjustments under paragraph (a), 
 14.31  (b), or (c).  The tuition must be equal to the greater of the 
 14.32  average general education revenue per pupil unit attributable to 
 14.33  the pupil, or the actual cost of providing the instruction, 
 14.34  excluding transportation costs, if the pupil meets the 
 14.35  requirements of section 120.03 or 120.181. 
 14.36     Sec. 19.  Minnesota Statutes 1996, section 124A.036, 
 15.1   subdivision 6, is amended to read: 
 15.2      Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 15.3   for districts must be adjusted for each pupil attending a 
 15.4   charter school under section 120.064.  The adjustments must be 
 15.5   made according to this subdivision. 
 15.6      (b) General education aid paid to a resident district must 
 15.7   be reduced by an amount equal to the general education revenue 
 15.8   exclusive of ~~compensatory~~ basic skills revenue. 
 15.9      (c) General education aid paid to a district in which a 
 15.10  charter school not providing transportation according to section 
 15.11  120.064, subdivision 15, is located shall be increased by an 
 15.12  amount equal to the product of:  (1) the sum of ~~$170~~ an amount 
 15.13  equal to the product of the formula allowance according to 
 15.14  section 124A.22, subdivision 2, times .0485, plus the 
 15.15  transportation sparsity allowance for the district, plus the 
 15.16  transportation transition allowance for the district; times (2) 
 15.17  the pupil units attributable to the pupil.  
 15.18     (d) If the amount of the reduction to be made from the 
 15.19  general education aid of the resident district is greater than 
 15.20  the amount of general education aid otherwise due the district, 
 15.21  the excess reduction must be made from other state aids due the 
 15.22  district. 
 15.23     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 15.24  124A.22, subdivision 1, is amended to read: 
 15.25     Subdivision 1.  [GENERAL EDUCATION REVENUE.] ~~(a) For fiscal~~ 
 15.26  ~~years 1997 and 1998, the general education revenue for each~~ 
 15.27  ~~district equals the sum of the district's basic revenue,~~ 
 15.28  ~~compensatory education revenue, secondary sparsity revenue,~~ 
 15.29  ~~elementary sparsity revenue, transportation sparsity revenue,~~ 
 15.30  ~~total operating capital revenue, transition revenue, and~~ 
 15.31  ~~supplemental revenue.~~ 
 15.32     ~~(b)~~ For fiscal year 1999 and thereafter, the general 
 15.33  education revenue for each district equals the sum of the 
 15.34  district's basic revenue, basic skills revenue, training and 
 15.35  experience revenue, secondary sparsity revenue, elementary 
 15.36  sparsity revenue, transportation sparsity revenue, total 
 16.1   operating capital revenue, graduation standards implementation 
 16.2   revenue, transition revenue, and supplemental revenue. 
 16.3      Sec. 21.  Minnesota Statutes 1996, section 124A.22, is 
 16.4   amended by adding a subdivision to read: 
 16.5      Subd. 14.  [GRADUATION STANDARDS IMPLEMENTATION 
 16.6   REVENUE.] (a) A school district's graduation standards 
 16.7   implementation revenue is equal to $63 times its actual pupil 
 16.8   units for fiscal year 1999 and $36 per pupil unit for fiscal 
 16.9   year 2000 and later.  Graduation standards implementation 
 16.10  revenue is reserved and must be used according to paragraphs (b) 
 16.11  and (c). 
 16.12     (b) For fiscal year 1999, revenue must be reserved for 
 16.13  programs according to clauses (1) to (3). 
 16.14     (1) $36 per actual pupil unit must be allocated to school 
 16.15  sites in proportion to the number of students enrolled at each 
 16.16  school site weighted according to section 124.17, subdivision 1, 
 16.17  and is reserved for programs designed to enhance the 
 16.18  implementation of the graduation rule through intensive staff 
 16.19  development and decentralized decision making. 
 16.20     (2) At least $5 per actual pupil unit is reserved for 
 16.21  gifted and talented programs that are integrated with the 
 16.22  graduation rule.  This aid must supplement, not supplant, money 
 16.23  spent on gifted and talented programs authorized under Laws 
 16.24  1997, First Special Session chapter 4, article 5, section 24. 
 16.25     (3) Any remaining aid under this paragraph must be used for 
 16.26  either class size reduction or for technology purchases related 
 16.27  to the graduation rule consistent with subdivision 11, clauses 
 16.28  (15), (18), (19), (23), and (24). 
 16.29     (c) For fiscal year 2000 and later, revenue must be 
 16.30  allocated to school sites and reserved for programs designed to 
 16.31  enhance the implementation of the graduation rule through either 
 16.32  staff development programs or class size reduction programs 
 16.33  based at the school site. 
 16.34     (d) To the extent possible, school districts shall make 
 16.35  opportunities for graduation standards implementation available 
 16.36  to teachers employed by intermediate school districts.  If the 
 17.1   commissioner determines that the supplemental appropriation made 
 17.2   for this subdivision under section 37, subdivision 2, is in 
 17.3   excess of the amount needed for this subdivision, the 
 17.4   commissioner shall make equal payments of one-third of the 
 17.5   excess to each intermediate school district for the purpose of 
 17.6   paragraph (a). 
 17.7      Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 17.8   124A.23, subdivision 1, is amended to read: 
 17.9      Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 17.10  commissioner shall establish the general education tax rate by 
 17.11  July 1 of each year for levies payable in the following year.  
 17.12  The general education tax capacity rate shall be a rate, rounded 
 17.13  up to the nearest hundredth of a percent, that, when applied to 
 17.14  the adjusted net tax capacity for all districts, raises the 
 17.15  amount specified in this subdivision.  The general education tax 
 17.16  rate shall be the rate that raises ~~$1,359,000,000 for fiscal~~ 
 17.17  ~~year 1998 and~~ $1,385,500,000 for fiscal year 1999 ~~and~~, 
 17.18  $1,328,000,000 for fiscal year 2000, and $1,325,100,000 for 
 17.19  fiscal year 2001, and later fiscal years.  The general education 
 17.20  tax rate may not be changed due to changes or corrections made 
 17.21  to a district's adjusted net tax capacity after the tax rate has 
 17.22  been established.  If the levy target for fiscal year 1999 or 
 17.23  fiscal year 2000 is changed by another law enacted during the 
 17.24  1997 or 1998 session, the commissioner shall reduce the general 
 17.25  education levy target in this ~~bill~~ section by the amount of the 
 17.26  reduction in the enacted law. 
 17.27     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
 17.28  124A.28, subdivision 1, is amended to read: 
 17.29     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 17.30  education revenue under section 124A.22, subdivision 3, and the 
 17.31  portion of the transition revenue adjustment under section 
 17.32  124A.22, subdivision 13c, attributable to the compensatory 
 17.33  transition allowance under section 124A.22, subdivision 13b, 
 17.34  paragraph (b), must be used to meet the educational needs of 
 17.35  pupils whose progress toward meeting state or local content or 
 17.36  performance standards is below the level that is appropriate for 
 18.1   learners of their age.  Any of the following may be provided to 
 18.2   meet these learners' needs: 
 18.3      (1) direct instructional services under the assurance of 
 18.4   mastery program according to section 124.3111; 
 18.5      (2) remedial instruction in reading, language arts, 
 18.6   mathematics, other content areas, or study skills to improve the 
 18.7   achievement level of these learners; 
 18.8      (3) additional teachers and teacher aides to provide more 
 18.9   individualized instruction to these learners through individual 
 18.10  tutoring, lower instructor-to-learner ratios, or team teaching; 
 18.11     (4) a longer school day or week during the regular school 
 18.12  year or through a summer program that may be offered directly by 
 18.13  the site or under a performance-based contract with a 
 18.14  community-based organization; 
 18.15     (5) comprehensive and ongoing staff development consistent 
 18.16  with district and site plans according to section 126.70, for 
 18.17  teachers, teacher aides, principals, and other personnel to 
 18.18  improve their ability to identify the needs of these learners 
 18.19  and provide appropriate remediation, intervention, 
 18.20  accommodations, or modifications; 
 18.21     (6) instructional materials and technology appropriate for 
 18.22  meeting the individual needs of these learners; 
 18.23     (7) programs to reduce truancy, encourage completion of 
 18.24  high school, enhance self-concept, provide health services, 
 18.25  provide nutrition services, provide a safe and secure learning 
 18.26  environment, provide coordination for pupils receiving services 
 18.27  from other governmental agencies, provide psychological services 
 18.28  to determine the level of social, emotional, cognitive, and 
 18.29  intellectual development, and provide counseling services, 
 18.30  guidance services, and social work services; 
 18.31     (8) bilingual programs, bicultural programs, and programs 
 18.32  for learners of limited English proficiency; 
 18.33     (9) all day kindergarten; 
 18.34     (10) extended school day and extended school year programs; 
 18.35     (11) substantial parent involvement in developing and 
 18.36  implementing remedial education or intervention plans for a 
 19.1   learner, including learning contracts between the school, the 
 19.2   learner, and the parent that establish achievement goals and 
 19.3   responsibilities of the learner and the learner's parent or 
 19.4   guardian; and 
 19.5      (12) other methods to increase achievement, as needed.  
 19.6      Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 19.7   124A.28, subdivision 1a, is amended to read: 
 19.8      Subd. 1a.  [BUILDING ALLOCATION.] (a) For fiscal years 1999 
 19.9   and later, a district must allocate ~~revenue~~ any increase in its 
 19.10  compensatory revenue over the amount of compensatory revenue 
 19.11  that would have been earned in fiscal year 1998, as calculated 
 19.12  under section 124A.22, subdivision 13b, paragraph (c), clause 
 19.13  (1), to each school building in the district where the children 
 19.14  who have generated the revenue are served.  
 19.15     (b) A district may allocate compensatory revenue not 
 19.16  otherwise allocated under paragraph (a) to school sites 
 19.17  according to a plan adopted by the school board. 
 19.18     (c) For the purposes of this section and section 124.17, 
 19.19  subdivision 1d, "building" means education site as defined in 
 19.20  section 123.951, subdivision 1. 
 19.21     (d) If the pupil is served at a site other than one owned 
 19.22  and operated by the district, the revenue shall be paid to the 
 19.23  district and used for services for pupils who generate the 
 19.24  revenue. 
 19.25     Sec. 25.  Minnesota Statutes 1996, section 124A.30, is 
 19.26  amended to read: 
 19.27     124A.30 [STATEWIDE AVERAGE REVENUE.] 
 19.28     By October 1 of each year the commissioner shall estimate 
 19.29  the statewide average adjusted general ~~education~~ revenue per 
 19.30  actual pupil unit and the ~~range~~ disparity in adjusted general 
 19.31  ~~education~~ revenue among pupils and districts by computing ~~the~~ 
 19.32  ~~difference between the fifth and~~ the ratio of the ninety-fifth 
 19.33  ~~percentiles~~ percentile to the fifth percentile of adjusted 
 19.34  general ~~education~~ revenue.  The commissioner must provide that 
 19.35  information to all school districts. 
 19.36     If the disparity in adjusted general ~~education~~ revenue as 
 20.1   measured by the ~~difference between the fifth and~~ ratio of the 
 20.2   ninety-fifth ~~percentiles~~ percentile to the fifth percentile 
 20.3   increases in any year, the commissioner ~~must propose a~~ shall 
 20.4   recommend to the legislature options for change in the general 
 20.5   education formula that will limit the disparity in adjusted 
 20.6   general ~~education~~ revenue to no more than the disparity for the 
 20.7   previous school year.  The commissioner must submit the ~~proposal~~ 
 20.8   recommended options to the education committees of the 
 20.9   legislature by January 15. 
 20.10     For purposes of this section, adjusted general revenue 
 20.11  means the sum of basic revenue under section 124A.22, 
 20.12  subdivision 2; supplemental revenue under section 124A.22, 
 20.13  subdivisions 8 and 9; transition revenue under section 124.22, 
 20.14  subdivision 13c; and referendum revenue under section 124A.03. 
 20.15     Sec. 26.  [124A.32] [IN-SCHOOL SUSPENSION REVENUE.] 
 20.16     A school site shall receive $4 per pupil per school day for 
 20.17  each pupil the school site suspends and places in an in-school 
 20.18  suspension program or alternative to an out-of-school suspension 
 20.19  program instead of prohibiting the pupil from attending school.  
 20.20  The school site shall use the revenue for the increased costs of 
 20.21  having a licensed teacher instruct a pupil placed in an 
 20.22  in-school suspension program or alternative to an out-of-school 
 20.23  suspension program. 
 20.24     Sec. 27.  Laws 1992, chapter 499, article 7, section 31, is 
 20.25  amended to read: 
 20.26     Sec. 31.  [REPEALER.] 
 20.27     ~~Minnesota Statutes 1990, sections 124A.02, subdivision 24;~~ 
 20.28  ~~124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3;~~ 
 20.29  ~~124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota~~ 
 20.30  ~~Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and~~ 
 20.31  ~~23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i;~~ 
 20.32  ~~124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9;~~ 
 20.33  ~~124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision~~ 
 20.34  ~~1; and 124A.29, subdivision 1, are repealed effective June 30,~~ 
 20.35  ~~1999;~~ Laws 1991, chapter 265, article 7, section 35, is repealed.
 20.36     Sec. 28.  Laws 1997, First Special Session chapter 4, 
 21.1   article 1, section 58, is amended to read: 
 21.2      Sec. 58.  [BUS PURCHASE LEVY.] 
 21.3      (a) For 1997 taxes payable in 1998, a school district may 
 21.4   levy the amount necessary to eliminate the deficit in the 
 21.5   reserved fund balance account for bus purchases in its 
 21.6   transportation fund as of June 30, 1996. 
 21.7      (b) For 1998 taxes payable in 1999, a school district that 
 21.8   had a positive balance in the reserved fund balance account for 
 21.9   bus purchases in its transportation fund as of June 30, 1996, 
 21.10  but that had already entered into a contract for new buses or 
 21.11  ordered new buses that had not been received prior to June 30, 
 21.12  1996, may levy an amount equal to the difference between the 
 21.13  purchase price of the buses and its balance in the reserve 
 21.14  account for bus purchases. 
 21.15     Sec. 29.  Laws 1997, First Special Session chapter 4, 
 21.16  article 1, section 61, subdivision 3, is amended to read: 
 21.17     Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 21.18  adjust each equalizing factor established using adjusted net tax 
 21.19  capacity per actual pupil unit under Minnesota Statutes, 
 21.20  chapters 124 and 124A, by dividing the equalizing factor by the 
 21.21  ratio of the statewide tax capacity as calculated using the 
 21.22  class rates in effect for assessment year 1996 to the statewide 
 21.23  tax capacity using the class rates for that assessment year. 
 21.24     Sec. 30.  Laws 1997, First Special Session chapter 4, 
 21.25  article 2, section 51, subdivision 29, is amended to read: 
 21.26     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 21.27  the first grade preparedness program under Minnesota Statutes, 
 21.28  section 124.2613, and for school sites that have provided a 
 21.29  full-day kindergarten option for kindergarten students enrolled 
 21.30  in fiscal years 1996 and 1997: 
 21.31       $5,000,000     .....     1998 
 21.32       ~~$5,000,000~~ $5,500,000    .....     1999 
 21.33     (b) To be a qualified site, licensed teachers must have 
 21.34  taught the optional full-day kindergarten classes.  A district 
 21.35  that charged a fee for students participating in an optional 
 21.36  full-day program is eligible to receive the grant to provide 
 22.1   full-day kindergarten for all students as required by Minnesota 
 22.2   Statutes, section 124.2613, subdivision 4.  Districts with 
 22.3   eligible sites must apply to the commissioner of children, 
 22.4   families, and learning for a grant. 
 22.5      (c) This appropriation must first be used to fund programs 
 22.6   operating during the 1996-1997 school year under paragraph (b) 
 22.7   and Minnesota Statutes, section 124.2613.  Any remaining funds 
 22.8   may be used to expand the number of sites providing first grade 
 22.9   preparedness programs. 
 22.10     Sec. 31.  Laws 1997, First Special Session chapter 4, 
 22.11  article 5, section 28, subdivision 12, is amended to read: 
 22.12     Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
 22.13  AID.] For graduation rule implementation: 
 22.14       $10,000,000     .....     1998
 22.15     (a) This appropriation shall be paid to districts according 
 22.16  to paragraph (b).  The purpose of the aid is to accelerate the 
 22.17  implementation of the graduation rule throughout all education 
 22.18  sites in the district through intensive staff development and 
 22.19  decentralized decision making.  The board shall work with the 
 22.20  teaching staff in the district to determine the most effective 
 22.21  staff development processes to assure an acceleration of the 
 22.22  implementation.  This appropriation is one-time only. 
 22.23     (b) A district shall receive aid equal to $10 times the 
 22.24  number of fund balance pupil units in the district for fiscal 
 22.25  year 1998 excluding pupil units attributable to shared time 
 22.26  pupils.  At least 30 percent must be used for the purposes of 
 22.27  paragraph (a). 
 22.28     Sec. 32.  Laws 1997, First Special Session chapter 4, 
 22.29  article 9, section 11, is amended to read: 
 22.30     Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
 22.31     (a) For fiscal year 1998 only, the allowance in Minnesota 
 22.32  Statutes, section 124A.22, subdivision 10, paragraph (a), is 
 22.33  increased by: 
 22.34     (1) $24 per pupil unit; or 
 22.35     (2) the lesser of $25,000 or $80 per pupil unit. 
 22.36     Revenue received under this section must be used according 
 23.1   to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
 23.2   (15), (18), (19), (23), and (24). 
 23.3      (b) For the purposes of paragraph (a), "pupil unit" means 
 23.4   fund balance pupil unit as defined in Minnesota Statutes, 
 23.5   section 124A.26, subdivision 1, excluding pupil units 
 23.6   attributable to shared time pupils. 
 23.7      Sec. 33.  [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 
 23.8      Notwithstanding Minnesota Statutes, section 124.17, 
 23.9   subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 
 23.10  only, compensation revenue pupil units for buildings with no 
 23.11  free or reduced price lunch counts for fiscal year 1997 because 
 23.12  the site did not participate in the national school lunch 
 23.13  program, or for a contracted alternative program for which no 
 23.14  count was reported to the department of children, families, and 
 23.15  learning, shall be computed using data for the current fiscal 
 23.16  year. 
 23.17     Sec. 34.  [SUPPLEMENTAL REVENUE.] 
 23.18     Supplemental revenue for fiscal years 1998 and later under 
 23.19  Minnesota Statutes, section 124A.22, subdivision 8, is increased 
 23.20  by the following amounts: 
 23.21     (1) for independent school district No. 593, Crookston, 
 23.22  $117,000; 
 23.23     (2) for independent school district No. 361, International 
 23.24  Falls, $107,000; 
 23.25     (3) for independent school district No. 706, Virginia, 
 23.26  $43,000; and 
 23.27     (4) for independent school district No. 2154, 
 23.28  Eveleth-Gilbert, $8,000. 
 23.29     Supplemental revenue increased under this section is not 
 23.30  subject to reduction under Minnesota Statutes, section 124A.22, 
 23.31  subdivision 9. 
 23.32     Sec. 35.  [MODEL TRANSPORTATION AND SCHOOL START TIME 
 23.33  POLICY.] 
 23.34     Subdivision 1.  [TRANSPORTATION EFFICIENCY.] Independent 
 23.35  school district No. 270, Hopkins, shall establish a task force 
 23.36  consisting of community members, school board members, parents, 
 24.1   teachers, and administrators to examine its existing pupil 
 24.2   transportation system.  The task force shall examine all manner 
 24.3   of school bus transportation efficiencies, including: 
 24.4      (1) state transportation mandates; 
 24.5      (2) school bus route design; 
 24.6      (3) school bus stop locations; 
 24.7      (4) school bus student pick-up times; and 
 24.8      (5) changes to peak-hour highway policies for school buses, 
 24.9   with particular attention paid to the effects of metered ramps 
 24.10  on school bus efficiency. 
 24.11     The task force shall also evaluate alternative 
 24.12  transportation methods such as metropolitan transit commission 
 24.13  bus service, student carpools, and other manners of student 
 24.14  transportation to and from school. 
 24.15     Subd. 2.  [SCHOOL START TIME.] The task force shall 
 24.16  evaluate the effect of transportation decisions on school start 
 24.17  times and make recommendations about school start times for 
 24.18  elementary and secondary students. 
 24.19     Subd. 3.  [REPORT.] Independent school district No. 270, 
 24.20  Hopkins, shall summarize the activities of the task force and 
 24.21  prepare a report to be presented by March 1, 1999, to the 1999 
 24.22  legislature. 
 24.23     Sec. 36.  [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 
 24.24  COUNTY CENTRAL; REFERENDUM AUTHORITY.] 
 24.25     Subdivision 1.  [REFERENDUM REVENUE ADJUSTMENT.] 
 24.26  Notwithstanding Minnesota Statutes, section 124A.03, referendum 
 24.27  equalization aid for fiscal year 1998 for independent school 
 24.28  district No. 2862, Jackson County Central, is $72,000, and the 
 24.29  district's net tax capacity referendum levy is $61,000. 
 24.30     Subd. 2.  [AID ADJUSTMENT.] The department of children, 
 24.31  families, and learning shall adjust the aid payments for fiscal 
 24.32  year 1998 to independent school district No. 2862, Jackson 
 24.33  County Central, according to subdivision 1. 
 24.34     Subd. 3.  [LEVY ADJUSTMENT.] For taxes payable in 1999, the 
 24.35  department of children, families, and learning shall make a levy 
 24.36  adjustment for the independent school district No. 2862, Jackson 
 25.1   County Central, referendum levy authority for fiscal year 1998, 
 25.2   according to subdivision 1. 
 25.3      Sec. 37.  [APPROPRIATION.] 
 25.4      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 25.5   LEARNING.] The sums indicated in this section are appropriated 
 25.6   from the general fund to the department of children, families, 
 25.7   and learning for the fiscal years designated. 
 25.8      Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 25.9   aid: 
 25.10          $185,000     .....     1998 
 25.11       $59,787,000     .....     1999 
 25.12     This aid is in addition to any other aid appropriated for 
 25.13  this purpose. 
 25.14     Subd. 3.  [HOPKINS.] For a grant to independent school 
 25.15  district No. 270, Hopkins, for the purposes of section 35: 
 25.16          $50,000     .....     1999 
 25.17     Subd. 4.  [IN-SCHOOL SUSPENSION COSTS.] For in-school 
 25.18  suspension costs that school sites incur under Minnesota 
 25.19  Statutes, section 124A.32: 
 25.20         $300,000     .....     1999 
 25.21     Subd. 5.  [TECHNOLOGY INTEGRATION PROJECT.] For a grant to 
 25.22  independent school district No. 62, Ortonville, to implement a 
 25.23  technology integration program: 
 25.24         $200,000     .....     1999 
 25.25     The purpose of the technology integration pilot project is 
 25.26  to demonstrate successful and effective uses of technology for 
 25.27  students, teachers, guidance counselors, administrators, and 
 25.28  parents to implement Minnesota's graduation standards and track 
 25.29  student performance in meeting the standards. 
 25.30     Sec. 38.  [REPEALER.] 
 25.31     (a) Minnesota Statutes 1997 Supplement, section 124.912, 
 25.32  subdivisions 2 and 3, are repealed effective for taxes payable 
 25.33  in 1998. 
 25.34     (b) Minnesota Statutes 1996, sections 124A.697; 124A.698; 
 25.35  124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; and 124A.73; 
 25.36  and Minnesota Statutes 1997 Supplement, section 124A.711, 
 26.1   subdivision 2, are repealed. 
 26.2      Sec. 39.  [EFFECTIVE DATE.] 
 26.3      (a) Sections 1, 2, 4, 5, 25, 28, 30, and 35 are effective 
 26.4   July 1, 1998. 
 26.5      (b) Section 3 is effective July 1, 1999. 
 26.6      (c) Sections 8, 22, 27, and 36 are effective the day 
 26.7   following final enactment. 
 26.8      (d) Sections 9, 12, 13, 16, 18, 19, 20, 21, 23, 24, and 26 
 26.9   are effective for revenue for fiscal year 1999. 
 26.10     (e) Sections 6, 7, 11, 14, 15, 16, 17, 29, 31, 32, 33, and 
 26.11  34 are effective for revenue for fiscal year 1998. 
 26.12     (f) Section 10 is effective retroactively to July 1, 1997, 
 26.13  for revenue for fiscal year 1999. 
 26.14                             ARTICLE 2 
 26.15                         SPECIAL EDUCATION 
 26.16     Section 1.  Minnesota Statutes 1996, section 120.03, 
 26.17  subdivision 1, is amended to read: 
 26.18     Subdivision 1.  Every child who has a hearing impairment, 
 26.19  visual disability, speech or language impairment, physical 
 26.20  handicap, other health impairment, mental handicap, 
 26.21  emotional/behavioral disorder, specific learning 
 26.22  disability, autism, traumatic brain injury, or deaf/blind 
 26.23  disability and needs special instruction and services, as 
 26.24  determined by the standards of the state board, is a child with 
 26.25  a disability.  In addition, every child ~~under~~ up to age ~~five~~ 
 26.26  three, and at local district discretion from age three to seven, 
 26.27  who needs special instruction and services, as determined by the 
 26.28  standards of the state board, because the child has a 
 26.29  substantial delay or has an identifiable physical or mental 
 26.30  condition known to hinder normal development is a child with a 
 26.31  disability. 
 26.32     Sec. 2.  [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 
 26.33  MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 
 26.34     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 26.35  cooperative unit has the meaning given in section 123.35, 
 26.36  subdivision 19b, paragraph (d). 
 27.1      Subd. 2.  [PROVIDING ASSISTANCE AND TRAINING.] The 
 27.2   commissioner, in cooperation with the commissioner of human 
 27.3   services, shall develop a statewide data management system using 
 27.4   the educational data reporting system or other existing data 
 27.5   management system for school districts and cooperative units to 
 27.6   use to maximize medical assistance reimbursement for health and 
 27.7   health-related services provided under individual education 
 27.8   plans and individual family service plans.  The statewide data 
 27.9   management system must enable school district and cooperative 
 27.10  unit staff to: 
 27.11     (1) establish medical assistance billing systems or improve 
 27.12  existing systems; 
 27.13     (2) understand the appropriate medical assistance billing 
 27.14  codes for services provided under individual education plans and 
 27.15  individual family service plans; 
 27.16     (3) comply with the Individuals with Disabilities Education 
 27.17  Act, Public Law Number 105-17; 
 27.18     (4) contract with billing agents; and 
 27.19     (5) carry out other activities necessary to maximize 
 27.20  medical assistance reimbursement. 
 27.21     Sec. 3.  Minnesota Statutes 1996, section 120.06, 
 27.22  subdivision 2a, is amended to read: 
 27.23     Subd. 2a.  [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 
 27.24  Notwithstanding subdivision 1, a school district must not deny 
 27.25  free admission to a homeless person of school age solely because 
 27.26  the school district cannot determine that the person is a 
 27.27  resident of the school district.  
 27.28     (b) The school district of residence for a homeless person 
 27.29  of school age shall be the school district in which the homeless 
 27.30  shelter or other program, center, or facility assisting the 
 27.31  homeless person is located.  The educational services a school 
 27.32  district provides to a homeless person must allow the person to 
 27.33  work toward meeting the graduation standards under section 
 27.34  121.11, subdivision 7c.  
 27.35     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
 27.36  subdivision 5, is amended to read: 
 28.1      Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 28.2   charter school shall be in the form of a written contract signed 
 28.3   by the sponsor and the board of directors of the charter 
 28.4   school.  The contract for a charter school shall be in writing 
 28.5   and contain at least the following: 
 28.6      (1) a description of a program that carries out one or more 
 28.7   of the purposes in subdivision 1; 
 28.8      (2) specific outcomes pupils are to achieve under 
 28.9   subdivision 10; 
 28.10     (3) admission policies and procedures; 
 28.11     (4) management and administration of the school; 
 28.12     (5) requirements and procedures for program and financial 
 28.13  audits; 
 28.14     (6) how the school will comply with subdivisions 8, 13, 15, 
 28.15  and 21; 
 28.16     (7) assumption of liability by the charter school; 
 28.17     (8) types and amounts of insurance coverage to be obtained 
 28.18  by the charter school; ~~and~~ 
 28.19     (9) the term of the contract, which may be up to three 
 28.20  years; and 
 28.21     (10) if the board of directors or the operators of the 
 28.22  charter school provide special instruction and services for 
 28.23  children with a disability under section 120.17, a description 
 28.24  of the financial parameters within which the charter school will 
 28.25  operate to provide the special instruction and services to 
 28.26  children with a disability. 
 28.27     Sec. 5.  Minnesota Statutes 1996, section 120.101, 
 28.28  subdivision 3, is amended to read: 
 28.29     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
 28.30  sections 120.101 to 120.103, "parent" means a parent, guardian, 
 28.31  or other person having legal custody of a child.  
 28.32     (b) In section 120.17, "parent" means a parent, guardian, 
 28.33  or other person having legal custody of a child under age 18.  
 28.34  For an unmarried pupil age 18 or over, "parent" means the pupil 
 28.35  unless a guardian or conservator has been appointed, in which 
 28.36  case it means the guardian or conservator. 
 29.1      (c) For purposes of section 120.17, the school district of 
 29.2   residence for an unmarried pupil age 18 or over who is a parent 
 29.3   under paragraph (b) and who is placed in a center for care and 
 29.4   treatment, shall be the school district in which the pupil's 
 29.5   biological or adoptive parent or designated guardian resides. 
 29.6      (d) For a married pupil age 18 or over, the school district 
 29.7   of residence is the school district in which the married pupil 
 29.8   resides. 
 29.9      Sec. 6.  Minnesota Statutes 1996, section 120.17, 
 29.10  subdivision 1, is amended to read: 
 29.11     Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 29.12  DISABILITY.] (a) As defined in paragraph (b), to the extent 
 29.13  required in federal law as of July 1, 1999, every district shall 
 29.14  provide special instruction and services, either within the 
 29.15  district or in another district, for children with a disability 
 29.16  who are residents of the district and who are disabled as set 
 29.17  forth in section 120.03.  
 29.18     (b) Notwithstanding any age limits in laws to the contrary, 
 29.19  special instruction and services must be provided from birth 
 29.20  until September 1 after the child with a disability becomes 22 
 29.21  years old but shall not extend beyond secondary school or its 
 29.22  equivalent, except as provided in section 126.22, subdivision 
 29.23  2.  Local health, education, and social service agencies shall 
 29.24  refer children under age five who are known to need or suspected 
 29.25  of needing special instruction and services to the school 
 29.26  district.  Districts with less than the minimum number of 
 29.27  eligible children with a disability as determined by the state 
 29.28  board shall cooperate with other districts to maintain a full 
 29.29  range of programs for education and services for children with a 
 29.30  disability.  This subdivision does not alter the compulsory 
 29.31  attendance requirements of section 120.101. 
 29.32     Sec. 7.  Minnesota Statutes 1996, section 120.17, 
 29.33  subdivision 2, is amended to read: 
 29.34     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 
 29.35  in this subdivision, to the extent required by federal law as of 
 29.36  July 1, 1999, special instruction and services for children with 
 30.1   a disability must be based on the assessment and individual 
 30.2   education plan.  The instruction and services may be provided by 
 30.3   one or more of the following methods: 
 30.4      (1) in connection with attending regular elementary and 
 30.5   secondary school classes; 
 30.6      (2) establishment of special classes; 
 30.7      (3) at the home or bedside of the child; 
 30.8      (4) in other districts; 
 30.9      (5) instruction and services by special education 
 30.10  cooperative centers established under this section, or in 
 30.11  another member district of the cooperative center to which the 
 30.12  resident district of the child with a disability belongs; 
 30.13     (6) in a state residential school or a school department of 
 30.14  a state institution approved by the commissioner; 
 30.15     (7) in other states; 
 30.16     (8) by contracting with public, private or voluntary 
 30.17  agencies; 
 30.18     (9) for children under age five and their families, 
 30.19  programs and services established through collaborative efforts 
 30.20  with other agencies; 
 30.21     (10) for children under age five and their families, 
 30.22  programs in which children with a disability are served with 
 30.23  children without a disability; and 
 30.24     (11) any other method approved by the commissioner. 
 30.25     (b) Preference shall be given to providing special 
 30.26  instruction and services to children under age three and their 
 30.27  families in the residence of the child with the parent or 
 30.28  primary caregiver, or both, present. 
 30.29     (c) The primary responsibility for the education of a child 
 30.30  with a disability shall remain with the district of the child's 
 30.31  residence regardless of which method of providing special 
 30.32  instruction and services is used.  If a district other than a 
 30.33  child's district of residence provides special instruction and 
 30.34  services to the child, then the district providing the special 
 30.35  instruction and services shall notify the child's district of 
 30.36  residence before the child's individual education plan is 
 31.1   developed and shall provide the district of residence an 
 31.2   opportunity to participate in the plan's development.  The 
 31.3   district of residence must inform the parents of the child about 
 31.4   the methods of instruction that are available. 
 31.5      (d) Paragraphs (e) to (i) may be cited as the "Blind 
 31.6   Persons' Literacy Rights and Education Act." 
 31.7      (e) The following definitions apply to paragraphs (f) to 
 31.8   (i). 
 31.9      "Blind student" means an individual who is eligible for 
 31.10  special educational services and who: 
 31.11     (1) has a visual acuity of 20/200 or less in the better eye 
 31.12  with correcting lenses or has a limited field of vision such 
 31.13  that the widest diameter subtends an angular distance of no 
 31.14  greater than 20 degrees; or 
 31.15     (2) has a medically indicated expectation of visual 
 31.16  deterioration. 
 31.17     "Braille" means the system of reading and writing through 
 31.18  touch commonly known as standard English Braille.  
 31.19     ~~"Individualized education plan" means a written statement~~ 
 31.20  ~~developed for a student eligible for special education and~~ 
 31.21  ~~services pursuant to this section and section 602(a)(20) of part~~ 
 31.22  ~~A of the Individuals with Disabilities Education Act, United~~ 
 31.23  ~~States Code, title 20, section 1401(a).~~ 
 31.24     (f) In developing an individualized education plan for each 
 31.25  blind student the presumption must be that proficiency in 
 31.26  Braille reading and writing is essential for the student to 
 31.27  achieve satisfactory educational progress.  The assessment 
 31.28  required for each student must include a Braille skills 
 31.29  inventory, including a statement of strengths and deficits.  
 31.30  Braille instruction and use are not required by this paragraph 
 31.31  if, in the course of developing the student's individualized 
 31.32  education program, team members concur that the student's visual 
 31.33  impairment does not affect reading and writing performance 
 31.34  commensurate with ability.  This paragraph does not require the 
 31.35  exclusive use of Braille if other special education services are 
 31.36  appropriate to the student's educational needs.  The provision 
 32.1   of other appropriate services does not preclude Braille use or 
 32.2   instruction.  Instruction in Braille reading and writing shall 
 32.3   be available for each blind student for whom the 
 32.4   multidisciplinary team has determined that reading and writing 
 32.5   is appropriate. 
 32.6      (g) Instruction in Braille reading and writing must be 
 32.7   sufficient to enable each blind student to communicate 
 32.8   effectively and efficiently with the same level of proficiency 
 32.9   expected of the student's peers of comparable ability and grade 
 32.10  level.  
 32.11     (h) The student's individualized education plan must 
 32.12  specify: 
 32.13     (1) the results obtained from the assessment required under 
 32.14  paragraph (f); 
 32.15     (2) how Braille will be implemented through integration 
 32.16  with other classroom activities; 
 32.17     (3) the date on which Braille instruction will begin; 
 32.18     (4) the length of the period of instruction and the 
 32.19  frequency and duration of each instructional session; 
 32.20     (5) the level of competency in Braille reading and writing 
 32.21  to be achieved by the end of the period and the objective 
 32.22  assessment measures to be used; and 
 32.23     (6) if a decision has been made under paragraph (f) that 
 32.24  Braille instruction or use is not required for the student:  
 32.25     (i) a statement that the decision was reached after a 
 32.26  review of pertinent literature describing the educational 
 32.27  benefits of Braille instruction and use; and 
 32.28     (ii) a specification of the evidence used to determine that 
 32.29  the student's ability to read and write effectively without 
 32.30  Braille is not impaired. 
 32.31     (i) Instruction in Braille reading and writing is a service 
 32.32  for the purpose of special education and services under this 
 32.33  section. 
 32.34     (j) Paragraphs (e) to (i) shall not be construed to 
 32.35  supersede any rights of a parent or guardian of a child with a 
 32.36  disability under federal or state law. 
 33.1      Sec. 8.  Minnesota Statutes 1996, section 120.17, 
 33.2   subdivision 3, is amended to read: 
 33.3      Subd. 3.  [RULES OF THE STATE BOARD.] (a) As defined in 
 33.4   this paragraph, but not to exceed the extent required by federal 
 33.5   law as of July 1, 1999, the state board shall promulgate rules 
 33.6   relative to qualifications of essential personnel, courses of 
 33.7   study, methods of instruction, pupil eligibility, size of 
 33.8   classes, rooms, equipment, supervision, parent consultation, and 
 33.9   ~~any~~ other ~~rules it deems~~ necessary rules for instruction of 
 33.10  children with a disability.  These rules shall provide standards 
 33.11  and procedures appropriate for the implementation of and within 
 33.12  the limitations of subdivisions 3a and 3b.  These rules shall 
 33.13  also provide standards for the discipline, control, management 
 33.14  and protection of children with a disability.  The state board 
 33.15  shall not adopt rules for pupils served ~~in level 1, 2, or 3, as~~ 
 33.16  ~~defined in Minnesota Rules, part 3525.2340,~~ primarily in the 
 33.17  regular classroom establishing either case loads or the maximum 
 33.18  number of pupils that may be assigned to special education 
 33.19  teachers.  The state board, in consultation with the departments 
 33.20  of health and human services, shall adopt permanent rules for 
 33.21  instruction and services for children under age five and their 
 33.22  families.  These rules are binding on state and local education, 
 33.23  health, and human services agencies.  The state board shall 
 33.24  adopt rules to determine eligibility for special education 
 33.25  services.  The rules shall include procedures and standards by 
 33.26  which to grant variances for experimental eligibility criteria.  
 33.27  The state board shall, according to section 14.05, subdivision 
 33.28  4, notify a district applying for a variance from the rules 
 33.29  within 45 calendar days of receiving the request whether the 
 33.30  request for the variance has been granted or denied.  If a 
 33.31  request is denied, the board shall specify the program standards 
 33.32  used to evaluate the request and the reasons for denying the 
 33.33  request.  
 33.34     (b) As provided in this paragraph, but not to exceed the 
 33.35  extent required by federal law as of July 1, 1999, the state's 
 33.36  regulatory scheme should support schools by assuring that all 
 34.1   state special education rules adopted by the state board of 
 34.2   education result in one or more of the following outcomes: 
 34.3      (1) increased time available to teachers and, where 
 34.4   appropriate, to support staff including school nurses for 
 34.5   educating students through direct and indirect instruction; 
 34.6      (2) consistent and uniform access to effective education 
 34.7   programs for students with disabilities throughout the state; 
 34.8      (3) reduced inequalities~~,~~ and conflict, appropriate due 
 34.9   process hearing procedures and reduced court actions related to 
 34.10  the delivery of special education instruction and services for 
 34.11  students with disabilities; 
 34.12     (4) clear expectations for service providers and for 
 34.13  students with disabilities; 
 34.14     (5) increased accountability for all individuals and 
 34.15  agencies that provide instruction and other services to students 
 34.16  with disabilities; 
 34.17     (6) greater focus for the state and local resources 
 34.18  dedicated to educating students with disabilities; and 
 34.19     (7) clearer standards for evaluating the effectiveness of 
 34.20  education and support services for students with disabilities. 
 34.21     Sec. 9.  Minnesota Statutes 1996, section 120.17, 
 34.22  subdivision 3a, is amended to read: 
 34.23     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 
 34.24  this subdivision, to the extent required by federal law as of 
 34.25  July 1, 1999, every district shall ensure that: 
 34.26     (1) all students with disabilities are provided the special 
 34.27  instruction and services which are appropriate to their needs.  
 34.28  Where the individual education plan team has determined 
 34.29  appropriate goals and objectives based on the student's needs, 
 34.30  including the extent to which the student can be included in the 
 34.31  least restrictive environment, and where there are essentially 
 34.32  equivalent and effective instruction, related services, or 
 34.33  assistive technology devices available to meet the student's 
 34.34  needs, cost to the school district may be among the factors 
 34.35  considered by the team in choosing how to provide the 
 34.36  appropriate services, instruction, or devices that are to be 
 35.1   made part of the student's individual education plan.  The 
 35.2   student's needs and the special education instruction and 
 35.3   services to be provided shall be agreed upon through the 
 35.4   development of an individual education plan.  The plan shall 
 35.5   address the student's need to develop skills to live and work as 
 35.6   independently as possible within the community.  By grade 9 or 
 35.7   age 14, the plan shall address the student's needs for 
 35.8   transition from secondary services to post-secondary education 
 35.9   and training, employment, community participation, recreation, 
 35.10  and leisure and home living.  The plan must include a statement 
 35.11  of the needed transition services, including a statement of the 
 35.12  interagency responsibilities or linkages or both before 
 35.13  secondary services are concluded; 
 35.14     (2) children with a disability under age five and their 
 35.15  families are provided special instruction and services 
 35.16  appropriate to the child's level of functioning and needs; 
 35.17     (3) children with a disability and their parents or 
 35.18  guardians are guaranteed procedural safeguards and the right to 
 35.19  participate in decisions involving identification, assessment 
 35.20  including assistive technology assessment, and educational 
 35.21  placement of children with a disability; 
 35.22     (4) eligibility and needs of children with a disability are 
 35.23  determined by an initial assessment or reassessment, which may 
 35.24  be completed using existing data under United States Code, title 
 35.25  20, section 33, et seq.; 
 35.26     (5) to the maximum extent appropriate, children with a 
 35.27  disability, including those in public or private institutions or 
 35.28  other care facilities, are educated with children who are not 
 35.29  disabled, and that special classes, separate schooling, or other 
 35.30  removal of children with a disability from the regular 
 35.31  educational environment occurs only when and to the extent that 
 35.32  the nature or severity of the disability is such that education 
 35.33  in regular classes with the use of supplementary services cannot 
 35.34  be achieved satisfactorily; 
 35.35     ~~(5)~~ (6) in accordance with recognized professional 
 35.36  standards, testing and evaluation materials, and procedures 
 36.1   utilized for the purposes of classification and placement of 
 36.2   children with a disability are selected and administered so as 
 36.3   not to be racially or culturally discriminatory; and 
 36.4      ~~(6)~~ (7) the rights of the child are protected when the 
 36.5   parents or guardians are not known or not available, or the 
 36.6   child is a ward of the state. 
 36.7      (b) For paraprofessionals employed to work in programs for 
 36.8   students with disabilities, the school board in each district 
 36.9   shall ensure that: 
 36.10     (1) before or immediately upon employment, each 
 36.11  paraprofessional develops sufficient knowledge and skills in 
 36.12  emergency procedures, building orientation, roles and 
 36.13  responsibilities, confidentiality, vulnerability, and 
 36.14  reportability, among other things, to begin meeting the needs of 
 36.15  the students with whom the paraprofessional works; 
 36.16     (2) annual training opportunities are available to enable 
 36.17  the paraprofessional to continue to further develop the 
 36.18  knowledge and skills that are specific to the students with whom 
 36.19  the paraprofessional works, including understanding 
 36.20  disabilities, following lesson plans, and implementing follow-up 
 36.21  instructional procedures and activities; and 
 36.22     (3) a districtwide process obligates each paraprofessional 
 36.23  to work under the ongoing direction of a licensed teacher and, 
 36.24  where appropriate and possible, the supervision of a school 
 36.25  nurse. 
 36.26     Sec. 10.  Minnesota Statutes 1996, section 120.17, 
 36.27  subdivision 3b, is amended to read: 
 36.28     Subd. 3b.  [PROCEDURES FOR DECISIONS.] As defined in this 
 36.29  paragraph, but not to exceed the extent required by federal law 
 36.30  as of July 1, 1999, every district shall utilize ~~at least~~ the 
 36.31  following procedures for decisions involving identification, 
 36.32  assessment, and educational placement of children with a 
 36.33  disability: 
 36.34     (a) Parents and guardians shall receive prior written 
 36.35  notice of:  
 36.36     (1) any proposed formal educational assessment or proposed 
 37.1   denial of a formal educational assessment of their child; 
 37.2      (2) a proposed placement of their child in, transfer from 
 37.3   or to, or denial of placement in a special education program; or 
 37.4      (3) the proposed provision, addition, denial or removal of 
 37.5   special education services for their child~~;~~. 
 37.6      (b) The district shall not proceed with the initial formal 
 37.7   assessment of a child, the initial placement of a child in a 
 37.8   special education program, or the initial provision of special 
 37.9   education services for a child without the prior written consent 
 37.10  of the child's parent or guardian.  The refusal of a parent or 
 37.11  guardian to consent may be overridden by the decision in a 
 37.12  hearing held pursuant to ~~clause~~ paragraph (e) at the district's 
 37.13  initiative~~;~~. 
 37.14     (c) Parents and guardians shall have an opportunity to meet 
 37.15  with appropriate district staff in at least one conciliation 
 37.16  conference, mediation, or other method of alternative dispute 
 37.17  resolution that the parties agree to, if they object to any 
 37.18  proposal of which they are notified pursuant to ~~clause~~ 
 37.19  paragraph (a).  The intent of the state is to encourage parties 
 37.20  to resolve disputes through mediation or other form of 
 37.21  alternative dispute resolution.  A school district and a parent 
 37.22  or guardian must participate in mediation using the mediation 
 37.23  services of MNSEMS, which is free to both parties, unless a 
 37.24  parent or guardian objects to the mediation.  Mediation under 
 37.25  this paragraph shall not affect parties' subsequent rights to a 
 37.26  due process hearing.  All mediation is subject to the 
 37.27  confidentiality requirements under rule 114.08 of the general 
 37.28  rules of practice for the district courts.  The conciliation 
 37.29  process or other form of alternative dispute resolution shall 
 37.30  not be used to deny or delay a parent or guardian's right to a 
 37.31  due process hearing.  If the parent or guardian refuses efforts 
 37.32  by the district to conciliate the dispute with the school 
 37.33  district, the requirement of an opportunity for conciliation or 
 37.34  other alternative dispute resolution shall be deemed to be 
 37.35  satisfied.  Notwithstanding other law, in any proceeding 
 37.36  following a conciliation conference, the school district must 
 38.1   not offer a conciliation conference memorandum into evidence, 
 38.2   except for any portions that describe the district's final 
 38.3   proposed offer of service.  Otherwise, with respect to forms of 
 38.4   dispute resolution, mediation, or conciliation, Minnesota Rule 
 38.5   of Evidence 408 applies.  The department of children, families, 
 38.6   and learning may reimburse the districts or directly pay the 
 38.7   costs of lay advocates, not to exceed $150 per dispute, used in 
 38.8   conjunction with alternative dispute resolution. 
 38.9      (d) The commissioner shall establish a mediation process to 
 38.10  assist parents, school districts, or other parties to resolve 
 38.11  disputes arising out of the identification, assessment, or 
 38.12  educational placement of children with a disability.  The 
 38.13  mediation process must be offered as an informal alternative to 
 38.14  the due process hearing provided under ~~clause~~ paragraph (e), but 
 38.15  must not be used to deny or postpone the opportunity of a parent 
 38.16  or guardian to obtain a due process hearing. 
 38.17     (e) Parents, guardians, and the district shall have an 
 38.18  opportunity to obtain an impartial due process hearing initiated 
 38.19  and conducted by and in the school district responsible for 
 38.20  assuring that an appropriate program is provided in accordance 
 38.21  with state board rules, if the parent or guardian continues to 
 38.22  object to:  
 38.23     (1) a proposed formal educational assessment or proposed 
 38.24  denial of a formal educational assessment of their child; 
 38.25     (2) the proposed placement of their child in, or transfer 
 38.26  of their child to a special education program; 
 38.27     (3) the proposed denial of placement of their child in a 
 38.28  special education program or the transfer of their child from a 
 38.29  special education program; 
 38.30     (4) the proposed provision or addition of special education 
 38.31  services for their child; or 
 38.32     (5) the proposed denial or removal of special education 
 38.33  services for their child.  
 38.34     Unless otherwise agreed to by its parties, an impartial due 
 38.35  process hearing is limited to eight hours, with a maximum of 
 38.36  four hours available to each party.  The party requesting the 
 39.1   hearing shall plead with specificity as to what issues are in 
 39.2   dispute and all issues not pleaded with specificity are deemed 
 39.3   waived.  Parties to a hearing are encouraged to present only 
 39.4   essential witnesses to prove a claim.  A hearing review officer, 
 39.5   at the officer's discretion, may exclude cumulative evidence. 
 39.6      Within five business days after the request for a hearing, 
 39.7   or as directed by the hearing officer, the objecting party shall 
 39.8   provide the other party with a brief written statement of 
 39.9   particulars of the objection, the reasons for the objection, and 
 39.10  the specific remedies sought.  The other party shall provide the 
 39.11  objecting party with a written response to the statement of 
 39.12  objections within five business days of receipt of the statement.
 39.13     The hearing shall take place before an impartial hearing 
 39.14  officer mutually agreed to by the school board and the parent or 
 39.15  guardian.  Within four business days of the receipt of the 
 39.16  request for the hearing, if the parties have not agreed on the 
 39.17  hearing officer, the school board shall request the commissioner 
 39.18  to appoint a hearing officer from a list maintained for that 
 39.19  purpose.  A retired judge, retired court referee, or retired 
 39.20  federal magistrate judge who is otherwise qualified under this 
 39.21  section and wishes to be a hearing officer must be put on the 
 39.22  list.  The school board shall include with the request the name 
 39.23  of the person requesting the hearing, the name of the student, 
 39.24  the attorneys involved, if any, and the date the hearing request 
 39.25  was received.  The hearing officer shall not be a school board 
 39.26  member or employee of the school district where the child 
 39.27  resides or of the child's school district of residence, an 
 39.28  employee of any other public agency involved in the education or 
 39.29  care of the child, or any person with a personal or professional 
 39.30  interest which would conflict with the person's objectivity at 
 39.31  the hearing.  A person who otherwise qualifies as a hearing 
 39.32  officer is not an employee of the district solely because the 
 39.33  person is paid by the district to serve as a hearing 
 39.34  officer.  Any party to a hearing, except an expedited hearing 
 39.35  under federal law, may make and serve upon the opposing party 
 39.36  and the commissioner a notice to remove a hearing officer 
 40.1   appointed by the commissioner.  The notice shall be served and 
 40.2   filed within two business days after the party receives notice 
 40.3   of the appointment of the hearing officer by the commissioner, 
 40.4   but not later than the commencement of the hearing. 
 40.5      No such notice may be filed by a party against a hearing 
 40.6   officer who has presided at a motion or any other proceeding of 
 40.7   which the party had notice.  A hearing officer who has presided 
 40.8   at a motion or other proceeding may not be removed except upon 
 40.9   an affirmative showing of prejudice on the part of the hearing 
 40.10  officer.  
 40.11     After the party has once disqualified a hearing officer as 
 40.12  a matter of right, that party may disqualify the substitute 
 40.13  hearing officer only by making an affirmative showing of 
 40.14  prejudice or bias to the commissioner, or to the chief 
 40.15  administrative law judge if the hearing officer is an 
 40.16  administrative law judge. 
 40.17     Upon the filing of a notice to remove or if a party makes 
 40.18  an affirmative showing of prejudice against a substitute hearing 
 40.19  officer, the commissioner shall assign any other hearing officer 
 40.20  to hear the matter. 
 40.21     If the hearing officer requests an independent educational 
 40.22  assessment of a child, the cost of the assessment shall be at 
 40.23  district expense.  The proceedings shall be recorded and 
 40.24  preserved, at the expense of the school district, pending 
 40.25  ultimate disposition of the action. 
 40.26     (f) The decision of the hearing officer pursuant to ~~clause~~ 
 40.27  paragraph (e) shall be rendered not more than 45 calendar days 
 40.28  from the date of the receipt of the request for the hearing, 
 40.29  except that hearing officers may exclude from the 45 calendar 
 40.30  days the time required for mediation under paragraph (c) and are 
 40.31  encouraged to accelerate the timeline to 30 days for children 
 40.32  birth through two whose needs change rapidly and require quick 
 40.33  resolution of complaints.  A hearing officer may not grant 
 40.34  specific extensions of time beyond the 45-day period unless 
 40.35  requested by either party for good cause shown on the record.  
 40.36  The decision of the hearing officer shall be binding on all 
 41.1   parties unless appealed to the commissioner by the parent; 
 41.2   guardian; school board of the district where the child resides 
 41.3   pursuant to ~~clause (g)~~ paragraph (h); and also in the case of 
 41.4   children birth through two, by the county board. 
 41.5      The local decision shall: 
 41.6      (1) be in writing; 
 41.7      (2) state the controlling facts upon which the decision is 
 41.8   made in sufficient detail to apprise the parties and the hearing 
 41.9   review officer of the basis and reason for the decision; and 
 41.10     (3) be based on the standards set forth in subdivision 3a 
 41.11  and the rules of the state board. 
 41.12     (g) The hearing officer may require the resident school 
 41.13  district to provide compensatory educational services to the 
 41.14  child if the hearing officer finds that the school district has 
 41.15  not offered or made available to the child a free appropriate 
 41.16  public education in the child's educational program and that the 
 41.17  child has suffered a loss of educational benefit.  Such services 
 41.18  shall take the form of direct and indirect special education and 
 41.19  related services designed to address any loss of educational 
 41.20  benefit that may have occurred.  The hearing officer's finding 
 41.21  shall be based on a present determination of whether the child 
 41.22  has suffered a loss of educational benefit. 
 41.23     ~~(g)~~ (h) Any local decision issued pursuant to ~~clauses~~ 
 41.24  paragraphs (e) and (f) may be appealed to the commissioner 
 41.25  within 30 calendar days of receipt of that written decision, by 
 41.26  the parent, guardian, or the school board of the district 
 41.27  responsible for assuring that an appropriate program is provided 
 41.28  in accordance with state board rules.  The appealing party shall 
 41.29  note the specific parts of the hearing decision being appealed. 
 41.30     If the decision is appealed, a written transcript of the 
 41.31  hearing shall be made by the school district and provided by the 
 41.32  district to the parties involved and the hearing review officer 
 41.33  within five calendar days of the filing of the appeal.  The 
 41.34  hearing review officer shall conduct an appellate review and 
 41.35  issue a final independent decision based on an impartial review 
 41.36  of the local decision and the entire record within 30 calendar 
 42.1   days after the filing of the appeal.  However, the hearing 
 42.2   review officer shall seek additional evidence if necessary and 
 42.3   may afford the parties an opportunity for written or oral 
 42.4   argument; provided any hearing held to seek additional evidence 
 42.5   shall be an impartial due process hearing but shall be deemed 
 42.6   not to be a contested case hearing for purposes of chapter 14.  
 42.7   The hearing review officer may grant specific extensions of time 
 42.8   beyond the 30-day period at the request of any party for good 
 42.9   cause shown on the record. 
 42.10     The final decision shall: 
 42.11     (1) be in writing; 
 42.12     (2) include findings and conclusions; and 
 42.13     (3) be based upon the standards set forth in subdivision 3a 
 42.14  and in the rules of the state board. 
 42.15     ~~(h)~~ (i) The decision of the hearing review officer shall be 
 42.16  final unless appealed by the parent or guardian or school board 
 42.17  to the Minnesota court of appeals or federal district court as 
 42.18  provided by federal law.  State judicial review shall be in 
 42.19  accordance with chapter 14.  
 42.20     ~~(i)~~ (j) The commissioner of children, families, and 
 42.21  learning shall select an individual who has the qualifications 
 42.22  enumerated in this paragraph to serve as the hearing review 
 42.23  officer: 
 42.24     (1) the individual must be knowledgeable and impartial; 
 42.25     (2) the individual must not have a personal interest in or 
 42.26  specific involvement with the student who is a party to the 
 42.27  hearing; 
 42.28     (3) the individual must not have been employed as an 
 42.29  administrator by the district that is a party to the hearing; 
 42.30     (4) the individual must not have been involved in the 
 42.31  selection of the administrators of the district that is a party 
 42.32  to the hearing; 
 42.33     (5) the individual must not have a personal, economic, or 
 42.34  professional interest in the outcome of the hearing other than 
 42.35  the proper administration of the federal and state laws, rules, 
 42.36  and policies; 
 43.1      (6) the individual must not have substantial involvement in 
 43.2   the development of a state or local policy or procedures that 
 43.3   are challenged in the appeal; 
 43.4      (7) the individual is not a current employee or board 
 43.5   member of a Minnesota public school district, education 
 43.6   district, intermediate unit or regional education agency, the 
 43.7   department of children, families, and learning, the state board 
 43.8   of education; and 
 43.9      (8) the individual is not a current employee or board 
 43.10  member of a disability advocacy organization or group.  
 43.11     ~~(j)~~ (k) In all appeals, the parent or guardian of the pupil 
 43.12  with a disability or the district that is a party to the hearing 
 43.13  may challenge the impartiality or competence of the proposed 
 43.14  hearing review officer by applying to the hearing review officer.
 43.15     ~~(k)~~ (l) Pending the completion of proceedings pursuant to 
 43.16  this subdivision, unless the district and the parent or guardian 
 43.17  of the child agree otherwise, the child shall remain in the 
 43.18  child's current educational placement and shall not be denied 
 43.19  initial admission to school. 
 43.20     ~~(l)~~ (m) The child's school district of residence, a 
 43.21  resident district, and providing district shall receive notice 
 43.22  of and may be a party to any hearings or appeals under this 
 43.23  subdivision. 
 43.24     ~~(m)~~ (n) A school district is not liable for harmless 
 43.25  technical violations of this subdivision or rules implementing 
 43.26  this subdivision if the school district can demonstrate on a 
 43.27  case-by-case basis that the violations did not harm the 
 43.28  student's educational progress or the parent or guardian's right 
 43.29  to notice, participation, or due process. 
 43.30     ~~(n)~~ (o) Within ten calendar days after appointment, the 
 43.31  hearing officer shall schedule and hold a prehearing 
 43.32  conference.  At that conference, or later, the hearing officer 
 43.33  may take any appropriate action that a court might take under 
 43.34  Rule 16 of Minnesota Rules of Civil Procedure including, but not 
 43.35  limited to, scheduling, jurisdiction, and listing witnesses 
 43.36  including expert witnesses. 
 44.1      ~~(o)~~ (p) A hearing officer or hearing review officer 
 44.2   appointed under this subdivision shall be deemed to be an 
 44.3   employee of the state under section 3.732 for the purposes of 
 44.4   section 3.736 only. 
 44.5      ~~(p)~~ (q) In order to be eligible for selection, hearing 
 44.6   officers and hearing review officers shall participate in 
 44.7   training and follow procedures as designated by the commissioner.
 44.8      ~~(q)~~ (r) The hearing officer may admit all evidence which 
 44.9   possesses probative value, including hearsay, if it is the type 
 44.10  of evidence on which reasonable, prudent persons are accustomed 
 44.11  to rely in the conduct of their serious affairs.  The hearing 
 44.12  officer shall give effect to the rules of privilege recognized 
 44.13  by law.  Evidence which is incompetent, irrelevant, immaterial, 
 44.14  or unduly repetitious shall be excluded. 
 44.15     Sec. 11.  Minnesota Statutes 1996, section 120.17, 
 44.16  subdivision 6, is amended to read: 
 44.17     Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 44.18  The responsibility for special instruction and services for a 
 44.19  child with a disability temporarily placed in another district 
 44.20  for care and treatment shall be determined in the following 
 44.21  manner: 
 44.22     (a) The school district of residence of a child shall be 
 44.23  the district in which the child's parent resides, if living, or 
 44.24  the child's guardian, or the district designated by the 
 44.25  commissioner of children, families, and learning if neither 
 44.26  parent nor guardian is living within the state. 
 44.27     (b) When a child is temporarily placed for care and 
 44.28  treatment in a day program located in another district and the 
 44.29  child continues to live within the district of residence during 
 44.30  the care and treatment, the district of residence is responsible 
 44.31  for providing transportation and an appropriate educational 
 44.32  program for the child.  The district may provide the educational 
 44.33  program at a school within the district of residence, at the 
 44.34  child's residence, or in the district in which the day treatment 
 44.35  center is located by paying tuition to that district. 
 44.36     (c) When a child is temporarily placed in a residential 
 45.1   program for care and treatment, the nonresident district in 
 45.2   which the child is placed is responsible for providing an 
 45.3   appropriate educational program for the child and necessary 
 45.4   transportation while the child is attending the educational 
 45.5   program; and shall bill the district of the child's residence 
 45.6   for the actual cost of providing the program, as outlined in 
 45.7   subdivision 4, except that the board, lodging, and treatment 
 45.8   costs incurred in behalf of a child with a disability placed 
 45.9   outside of the school district of residence by the commissioner 
 45.10  of human services or the commissioner of corrections or their 
 45.11  agents, for reasons other than for making provision for the 
 45.12  child's special educational needs shall not become the 
 45.13  responsibility of either the district providing the instruction 
 45.14  or the district of the child's residence.  For the purposes of 
 45.15  this section, the state correctional facilities operated on a 
 45.16  fee-for-service basis are considered to be residential programs 
 45.17  for care and treatment. 
 45.18     (d) The district of residence shall pay tuition and other 
 45.19  program costs, not including transportation costs, to the 
 45.20  district providing the instruction and services.  The district 
 45.21  of residence may claim general education aid for the child as 
 45.22  provided by law.  Transportation costs shall be paid by the 
 45.23  district responsible for providing the transportation and the 
 45.24  state shall pay transportation aid to that district. 
 45.25     Sec. 12.  Minnesota Statutes 1996, section 120.17, 
 45.26  subdivision 7, is amended to read: 
 45.27     Subd. 7.  [PLACEMENT IN STATE INSTITUTION; RESPONSIBILITY.] 
 45.28  Responsibility for special instruction and services for a child 
 45.29  with a disability placed in a state institution on a temporary 
 45.30  basis shall be determined in the following manner: 
 45.31     (a) The legal residence of such child shall be the school 
 45.32  district in which the child's parent resides, if living, or the 
 45.33  child's guardian.  
 45.34     (b) When the educational needs of such child can be met 
 45.35  through the institutional program, the costs for such 
 45.36  instruction shall be paid by the department to which the 
 46.1   institution is assigned with exception of children placed in 
 46.2   fee-for-service facilities operated by the commissioner of 
 46.3   corrections whose cost for such instruction shall be paid as 
 46.4   outlined in subdivision 6.  
 46.5      (c) When it is determined that such child can benefit from 
 46.6   public school enrollment, provision for such instruction shall 
 46.7   be made in the following manner: 
 46.8      (1) determination of eligibility for special instruction 
 46.9   and services shall be made by the commissioner of children, 
 46.10  families, and learning and the commissioner of the department 
 46.11  responsible for the institution; 
 46.12     (2) the school district where the institution is located 
 46.13  shall be responsible for providing transportation and an 
 46.14  appropriate educational program for the child and shall make a 
 46.15  tuition charge to the child's district of residence for the 
 46.16  actual cost of providing the program; 
 46.17     (3) the district of the child's residence shall pay the 
 46.18  tuition and other program costs excluding transportation costs 
 46.19  and may claim general education aid for the child.  
 46.20  Transportation costs shall be paid by the district where the 
 46.21  institution is located and the state shall pay transportation 
 46.22  aid to that district. 
 46.23     Sec. 13.  Minnesota Statutes 1996, section 120.17, 
 46.24  subdivision 9, is amended to read: 
 46.25     Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 46.26  who is eligible for special instruction and services ~~pursuant to~~ 
 46.27  under this section shall be denied ~~provision of this~~ instruction 
 46.28  and service on a shared time basis consistent with section 
 46.29  124A.034, subdivision 2, because of ~~attendance at~~ attending a 
 46.30  nonpublic school defined in section 123.932, subdivision 3.  If 
 46.31  a resident pupil with a disability attends a nonpublic school 
 46.32  located within the district of residence, the district shall 
 46.33  provide necessary transportation for that pupil within the 
 46.34  district between the nonpublic school and the educational 
 46.35  facility where special instruction and services are provided on 
 46.36  a shared time basis.  If a resident pupil with a disability 
 47.1   attends a nonpublic school located in another district and if no 
 47.2   agreement exists ~~pursuant to~~ under section 124A.034, subdivision 
 47.3   1 or 1a, for ~~the provision of~~ providing special instruction and 
 47.4   services on a shared time basis to that pupil by the district of 
 47.5   attendance and where the special instruction and services are 
 47.6   provided within the district of residence, the district of 
 47.7   residence shall provide necessary transportation for that pupil 
 47.8   between the boundary of the district of residence and the 
 47.9   educational facility.  The district of residence may provide 
 47.10  necessary transportation for that pupil between its boundary and 
 47.11  the nonpublic school attended, but the nonpublic school shall 
 47.12  pay the cost of transportation provided outside the district 
 47.13  boundary. 
 47.14     Sec. 14.  Minnesota Statutes 1996, section 120.17, 
 47.15  subdivision 15, is amended to read: 
 47.16     Subd. 15.  [THIRD PARTY PAYMENT.] (a) Nothing in this 
 47.17  section relieves an insurer or similar third party from an 
 47.18  otherwise valid obligation to pay, or changes the validity of an 
 47.19  obligation to pay, for services rendered to a child with a 
 47.20  disability, and the child's family.  A school district may pay 
 47.21  or reimburse copayments, coinsurance, deductibles, and other 
 47.22  enrollee cost-sharing amounts, on behalf of the student or 
 47.23  family, in connection with health and related services provided 
 47.24  under an individual educational plan.  
 47.25     (b) Beginning July 1, 1999, districts shall seek 
 47.26  reimbursement from insurers and similar third parties for the 
 47.27  cost of services provided by the district whenever the services 
 47.28  provided by the district are otherwise covered by the child's 
 47.29  health coverage.  Districts shall request, but may not require, 
 47.30  the child's family to provide information about the child's 
 47.31  health coverage when a child with a disability begins to receive 
 47.32  services from the district of a type that may be reimbursable, 
 47.33  and shall request, but may not require, updated information 
 47.34  after that as needed.  Districts shall request, but may not 
 47.35  require, the child's parent or legal representative to sign a 
 47.36  consent form, permitting the school district to apply for and 
 48.1   receive reimbursement directly from the insurer or other similar 
 48.2   third party, to the extent permitted by the insurer or other 
 48.3   third party. 
 48.4      (c) Of the reimbursements received, districts may: 
 48.5      (1) retain an amount sufficient to compensate the district 
 48.6   for its administrative costs of obtaining reimbursements; 
 48.7      (2) regularly obtain from education- and health-related 
 48.8   entities training and other appropriate technical assistance 
 48.9   designed to improve the district's ability to determine which 
 48.10  services are reimbursable and to seek timely reimbursement in a 
 48.11  cost-effective manner; or 
 48.12     (3) reallocate reimbursements for the benefit of students 
 48.13  with special needs in the district. 
 48.14     (d) To the extent required by federal law, a school 
 48.15  district may not require parents of children with disabilities, 
 48.16  if they would incur a financial cost, to use private or public 
 48.17  health coverage to pay for the services that must be provided 
 48.18  under an individual education plan. 
 48.19     (e) When obtaining informed consent, consistent with 
 48.20  sections 13.05, subdivision 4, paragraph (d); and 256B.77, 
 48.21  subdivision 2, paragraph (p), to bill health plans for covered 
 48.22  services, the school district must notify the legal 
 48.23  representative (1) that the cost of the person's health 
 48.24  insurance premium may increase due to providing the covered 
 48.25  service in the school setting, (2) that the school district may 
 48.26  pay certain health plan expenses, health plan expenses include, 
 48.27  but are not limited to, an enrollee's copayments, coinsurance, 
 48.28  deductibles, monthly premium increases or other enrollee 
 48.29  cost-sharing amounts for health and related services required by 
 48.30  an individual service plan, or individual family service plan, 
 48.31  and (3) that the school's billing for each type of covered 
 48.32  service may affect service limits and prior authorization 
 48.33  thresholds.  The informed consent may be revoked in writing at 
 48.34  any time by the person authorizing the billing of the health 
 48.35  plan. 
 48.36     (f) To the extent required by federal law, no school 
 49.1   district may withhold or delay any service that must be provided 
 49.2   under an individual education plan because a family has refused 
 49.3   to provide informed consent to bill a health plan for services 
 49.4   or a health plan company has refused to pay any, all, or a 
 49.5   portion of the cost of services billed. 
 49.6      (g) A school district may disclose information contained in 
 49.7   a student's individual education plan, consistent with section 
 49.8   13.32, subdivision 3(a), including records of the student's 
 49.9   diagnosis and treatment, to a health plan company only with the 
 49.10  signed and dated consent of the student's parent, or other 
 49.11  legally authorized individual.  The school district shall 
 49.12  disclose only that information necessary for the health plan 
 49.13  company to decide matters of payment.  A health plan company may 
 49.14  use the information only for making decisions regarding payment, 
 49.15  and any other use of the information and dissemination of the 
 49.16  information is prohibited. 
 49.17     Sec. 15.  Minnesota Statutes 1996, section 120.1701, 
 49.18  subdivision 17, is amended to read: 
 49.19     Subd. 17.  [MEDIATION PROCEDURE.] The commissioner, or the 
 49.20  commissioner's designee, of the state lead agency shall use 
 49.21  federal funds to provide mediation for the activities in 
 49.22  paragraphs (a) and (b). 
 49.23     (a) A parent may resolve a dispute regarding issues in 
 49.24  subdivision 16, paragraph (b), clause (5), through mediation.  
 49.25  If the parent chooses mediation, all public agencies involved in 
 49.26  the dispute shall participate in the mediation process.  The 
 49.27  parent and the public agencies must complete the mediation 
 49.28  process within ~~20~~ 30 calendar days of the date the ~~commissioner~~ 
 49.29  office of dispute resolution receives a parent's written request 
 49.30  for mediation.  The mediation process may not be used to delay a 
 49.31  parent's right to a due process hearing.  The resolution of the 
 49.32  mediation is not binding on any party. 
 49.33     (b) Resolution of a dispute through mediation, or other 
 49.34  form of alternative dispute resolution, is not limited to formal 
 49.35  disputes arising from the objection of a parent or guardian and 
 49.36  is not limited to the period following a request for a due 
 50.1   process hearing. 
 50.2      (c) The commissioner shall provide training and resources 
 50.3   to school districts to facilitate early identification of 
 50.4   disputes and access to mediation. 
 50.5      ~~(b)~~ (d) The local primary agency may request mediation on 
 50.6   behalf of involved agencies when there are disputes between 
 50.7   agencies regarding responsibilities to coordinate, provide, pay 
 50.8   for, or facilitate payment for early intervention services. 
 50.9      Sec. 16.  Minnesota Statutes 1996, section 120.173, 
 50.10  subdivision 1, is amended to read: 
 50.11     Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
 50.12  of children, families, and learning may approve applications 
 50.13  from school districts to provide prevention services as an 
 50.14  alternative to special education and other compensatory programs 
 50.15  ~~during three school years~~.  A district with an approved program 
 50.16  may provide instruction and services in a regular education 
 50.17  classroom, or an area learning center, to eligible pupils.  
 50.18  Pupils eligible to participate in the program are low-performing 
 50.19  pupils who, based on documented experience, the professional 
 50.20  judgment of a classroom teacher, or a team of licensed 
 50.21  professionals, would eventually qualify for special education 
 50.22  instruction or related services under section 120.17 if the 
 50.23  intervention services authorized by this section were 
 50.24  unavailable.  Pupils may be provided services during extended 
 50.25  school days and throughout the entire year and through the 
 50.26  assurance of mastery program under section 124.3111. 
 50.27     Sec. 17.  Minnesota Statutes 1996, section 120.173, 
 50.28  subdivision 6, is amended to read: 
 50.29     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 50.30  program must be individually evaluated according to the pupil's 
 50.31  actual abilities and needs.  A pupil who is eligible for 
 50.32  services under section 120.17 is entitled to procedural 
 50.33  protections provided under ~~Public Law Number 94-142~~ United 
 50.34  States Code, title 20, section 33, in any matter that affects 
 50.35  the identification, evaluation, placement, or change in 
 50.36  placement of a pupil.  The district must ensure the protection 
 51.1   of a pupil's civil rights, provide equal educational 
 51.2   opportunities, and prohibit discrimination.  Failure to comply 
 51.3   with this subdivision will at least cause a district to become 
 51.4   ineligible to participate in the program.  Notwithstanding rules 
 51.5   of the state board of education, a pupil's rights under this 
 51.6   section cannot be waived by the state board. 
 51.7      Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 51.8   120.181, is amended to read: 
 51.9      120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 51.10  EDUCATION AND TRANSPORTATION.] 
 51.11     The responsibility for providing instruction and 
 51.12  transportation for a pupil without a disability who has a 
 51.13  short-term or temporary physical or emotional illness or 
 51.14  disability, as determined by the standards of the state board, 
 51.15  and who is temporarily placed for care and treatment for that 
 51.16  illness or disability, shall be determined as provided in this 
 51.17  section.  
 51.18     (a) The school district of residence of the pupil shall be 
 51.19  the district in which the pupil's parent or guardian resides, or 
 51.20  when neither the pupil's parent nor guardian resides within the 
 51.21  state and tuition has been denied, the district designated by 
 51.22  the commissioner of children, families, and learning.  
 51.23     (b) Prior to the placement of a pupil for care and 
 51.24  treatment, the district of residence shall be notified and 
 51.25  provided an opportunity to participate in the placement 
 51.26  decision.  When an immediate emergency placement is necessary 
 51.27  and time does not permit resident district participation in the 
 51.28  placement decision, the district in which the pupil is 
 51.29  temporarily placed, if different from the district of residence, 
 51.30  shall notify the district of residence of the emergency 
 51.31  placement within 15 days of the placement.  
 51.32     (c) When a pupil without a disability is temporarily placed 
 51.33  for care and treatment in a day program and the pupil continues 
 51.34  to live within the district of residence during the care and 
 51.35  treatment, the district of residence shall provide instruction 
 51.36  and necessary transportation for the pupil.  The district may 
 52.1   provide the instruction at a school within the district of 
 52.2   residence, at the pupil's residence, or in the case of a 
 52.3   placement outside of the resident district, in the district in 
 52.4   which the day treatment program is located by paying tuition to 
 52.5   that district.  The district of placement may contract with a 
 52.6   facility to provide instruction by teachers licensed by the 
 52.7   state board of teaching.  
 52.8      (d) When a pupil without a disability is temporarily placed 
 52.9   in a residential program for care and treatment, the district in 
 52.10  which the pupil is placed shall provide instruction for the 
 52.11  pupil and necessary transportation while the pupil is receiving 
 52.12  instruction, and in the case of a placement outside of the 
 52.13  district of residence, the nonresident district shall bill the 
 52.14  district of residence for the actual cost of providing the 
 52.15  instruction for the regular school year and for summer school, 
 52.16  excluding transportation costs.  When a pupil without a 
 52.17  disability is temporarily placed in a residential program 
 52.18  outside the district of residence, the administrator of the 
 52.19  court placing the pupil shall send timely written notice of the 
 52.20  placement to the district of residence.  The district of 
 52.21  placement may contract with a residential facility to provide 
 52.22  instruction by teachers licensed by the state board of 
 52.23  teaching.  For purposes of this section, the state correctional 
 52.24  facilities operated on a fee-for-service basis are considered to 
 52.25  be residential programs for care and treatment. 
 52.26     (e) The district of residence shall include the pupil in 
 52.27  its residence count of pupil units and pay tuition as provided 
 52.28  in section 124.18 to the district providing the instruction.  
 52.29  Transportation costs shall be paid by the district providing the 
 52.30  transportation and the state shall pay transportation aid to 
 52.31  that district.  For purposes of computing state transportation 
 52.32  aid, pupils governed by this subdivision shall be included in 
 52.33  the disabled transportation category. 
 52.34     Sec. 19.  Minnesota Statutes 1996, section 123.935, 
 52.35  subdivision 1, is amended to read: 
 52.36     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
 53.1   education shall promulgate rules under the provisions of chapter 
 53.2   14 requiring each school district or other intermediary service 
 53.3   area:  (a) to provide each year upon formal request by a 
 53.4   specific date by or on behalf of a nonpublic school pupil 
 53.5   enrolled in a nonpublic school located in that district or area, 
 53.6   the same specific health services as are provided for public 
 53.7   school pupils by the district where the nonpublic school is 
 53.8   located; and (b) to provide each year upon formal request by a 
 53.9   specific date by or on behalf of a nonpublic school secondary 
 53.10  pupil enrolled in a nonpublic school located in that district or 
 53.11  area, the same specific guidance and counseling services as are 
 53.12  provided for public school secondary pupils by the district 
 53.13  where the nonpublic school is located.  The district where the 
 53.14  nonpublic school is located shall provide the necessary 
 53.15  transportation within the district boundaries between the 
 53.16  nonpublic school and a public school or neutral site for 
 53.17  nonpublic school pupils who are provided pupil support services 
 53.18  ~~pursuant to~~ under this section if the district elects to provide 
 53.19  pupil support services at a site other than the nonpublic school.
 53.20  Each request for pupil support services shall set forth the 
 53.21  guidance and counseling or health services requested by or on 
 53.22  behalf of all eligible nonpublic school pupils enrolled in a 
 53.23  given nonpublic school.  No district or intermediary service 
 53.24  area shall expend an amount for these pupil support services 
 53.25  which exceeds the amount allotted to it under this section. 
 53.26     Sec. 20.  Minnesota Statutes 1996, section 123.935, 
 53.27  subdivision 2, is amended to read: 
 53.28     Subd. 2.  [LOCATION OF SERVICES.] Health and guidance and 
 53.29  counseling services may be provided to nonpublic school 
 53.30  pupils ~~pursuant to~~ under this section at a public school, a 
 53.31  neutral site, the nonpublic school or any other suitable 
 53.32  location.  ~~Guidance and counseling services may be provided to~~ 
 53.33  ~~nonpublic school pupils pursuant to this section only at a~~ 
 53.34  ~~public school or a neutral site.~~  District or intermediary 
 53.35  service area personnel and representatives of the nonpublic 
 53.36  school pupils receiving pupil support services shall hold an 
 54.1   annual consultation regarding the type of services, provider of 
 54.2   services, and the location of the provision of these services.  
 54.3   The district board or intermediary service area governing board 
 54.4   shall make the final decision on the location of the provision 
 54.5   of these services. 
 54.6      Sec. 21.  Minnesota Statutes 1996, section 124.17, 
 54.7   subdivision 2, is amended to read: 
 54.8      Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
 54.9   in grades kindergarten through 12 and for prekindergarten pupils 
 54.10  with disabilities shall mean the number of pupils on the current 
 54.11  roll of the school, counted from the date of entry until 
 54.12  withdrawal.  The date of withdrawal shall mean the day the pupil 
 54.13  permanently leaves the school or the date it is officially known 
 54.14  that the pupil has left or has been legally excused.  However, a 
 54.15  pupil, regardless of age, who has been absent from school for 15 
 54.16  consecutive school days during the regular school year or for 
 54.17  five consecutive school days during summer school or 
 54.18  intersession classes of flexible school year programs without 
 54.19  receiving instruction in the home or hospital shall be dropped 
 54.20  from the roll and classified as withdrawn.  Nothing in this 
 54.21  section shall be construed as waiving the compulsory attendance 
 54.22  provisions cited in section 120.101.  Average daily membership 
 54.23  shall equal the sum for all pupils of the number of days of the 
 54.24  school year each pupil is enrolled in the district's schools 
 54.25  divided by the number of days the schools are in session.  Days 
 54.26  of summer school or intersession classes of flexible school year 
 54.27  programs shall only be included in the computation of membership 
 54.28  for pupils with a disability not appropriately served ~~at level~~ 
 54.29  ~~4, 5, or 6 of the continuum of placement model described in~~ 
 54.30  ~~Minnesota Rules, part 3525.0200~~ primarily in the regular 
 54.31  classroom. 
 54.32     Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 54.33  124.3111, subdivision 2, is amended to read: 
 54.34     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 54.35  services through an assurance of mastery program if the pupil 
 54.36  has not demonstrated progress toward mastering the required 
 55.1   graduation standards, after receiving instruction that was 
 55.2   designed to enable the pupil to make progress toward mastering 
 55.3   the required graduation standards in a regular classroom 
 55.4   setting.  A pupil also is eligible to receive services through 
 55.5   an assurance of mastery program if the pupil, based on the 
 55.6   professional judgment of a classroom teacher or a team of 
 55.7   licensed professionals, demonstrates a need for alternative 
 55.8   instructional strategies or interventions.  To determine pupil 
 55.9   eligibility, a district must use a process adopted by the school 
 55.10  board to review curriculum and instruction, for the subjects and 
 55.11  at the grade level at which the district uses the revenue. 
 55.12     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
 55.13  124.3111, subdivision 3, is amended to read: 
 55.14     Subd. 3.  [ELIGIBLE SERVICES.] (a) Assurance of mastery 
 55.15  programs may provide direct instructional services to an 
 55.16  eligible pupil, or a group of eligible pupils, under the 
 55.17  following conditions in paragraphs (b) to ~~(d)~~ (e). 
 55.18     (b) Instruction may be provided at one or more grade levels 
 55.19  from kindergarten to grade 8 and for students in grades 9 
 55.20  through 12 who have failed the basic skills tests.  If an 
 55.21  assessment of pupils' needs within a district demonstrates that 
 55.22  the eligible pupils in grades kindergarten to grade 8 are being 
 55.23  appropriately served, a district may serve eligible pupils in 
 55.24  grades 9 to 12. 
 55.25     (c) Instruction must be provided under the supervision of 
 55.26  the eligible pupil's regular classroom teacher.  Instruction may 
 55.27  be provided by the eligible pupil's classroom teacher, by 
 55.28  another teacher, by a team of teachers, or by an education 
 55.29  assistant or aide.  A special education teacher may provide 
 55.30  instruction, but instruction that is provided under this section 
 55.31  is not eligible for aid under section 124.3201. 
 55.32     (d) The instruction that is provided must differ from the 
 55.33  initial instruction the pupil received in the regular classroom 
 55.34  setting.  The instruction may differ by presenting different 
 55.35  curriculum than was initially presented in the regular classroom 
 55.36  or by presenting the same curriculum: 
 56.1      (1) at a different rate or in a different sequence than it 
 56.2   was initially presented; 
 56.3      (2) using different teaching methods or techniques than 
 56.4   were used initially; or 
 56.5      (3) using different instructional materials than were used 
 56.6   initially. 
 56.7      (e) Instruction must focus on preventive measures that meet 
 56.8   students' individual needs. 
 56.9      Sec. 24.  Minnesota Statutes 1996, section 124.32, is 
 56.10  amended by adding a subdivision to read: 
 56.11     Subd. 13.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 56.12  year 1999 and thereafter, the commissioner of children, 
 56.13  families, and learning, or the commissioner's designee, shall 
 56.14  use federal funds to reimburse school districts for the 
 56.15  administrative costs of a due process hearing incurred under 
 56.16  section 120.17, subdivision 3b, paragraphs (e), (h), and (i), 
 56.17  including hearing officer fees, court reporter fees, mileage 
 56.18  costs, transcript costs, and rental of hearing rooms, but not 
 56.19  including district legal or attorney fees.  In order to receive 
 56.20  federal aid under this paragraph, a school district shall submit 
 56.21  to the commissioner at the end of each school year itemized 
 56.22  actual costs for fees and other expenses under this paragraph.  
 56.23  Federal funds used for aid to school districts under this 
 56.24  paragraph shall be based on costs districts submitted during the 
 56.25  previous school year. 
 56.26     (b) For fiscal year 1999 and thereafter, a school district, 
 56.27  to the extent to which it prevails as prescribed by Rule 68 of 
 56.28  the Federal Rules of Civil Procedure, shall receive state aid 
 56.29  for litigation costs incurred after a request for a due process 
 56.30  hearing is served upon the parties based on 50 percent of the 
 56.31  costs associated with a due process hearing under section 
 56.32  120.17, subdivision 3b, paragraphs (e), (h), and (i), not 
 56.33  covered under paragraph (a), including hearing officer fees, 
 56.34  court reporter fees, expert witness fees, mileage costs, 
 56.35  transcript costs, cost of outside evaluations ordered by the 
 56.36  hearing officer, rental of hearing rooms, and district legal or 
 57.1   attorney fees.  No more than 60 percent of the aid a school 
 57.2   district receives under this paragraph shall be for the costs of 
 57.3   district legal or attorney fees, which shall be available only 
 57.4   if the district can satisfactorily demonstrate to the 
 57.5   commissioner that it is the prevailing party under Rule 68 of 
 57.6   the Federal Rules of Civil Procedure, and the district has made 
 57.7   a good faith effort to resolve the dispute through mediation.  
 57.8   To receive aid under this paragraph, a school district shall 
 57.9   submit to the commissioner at the end of each school year 
 57.10  itemized actual costs associated with due process hearing and 
 57.11  indicate those costs for which federal funds are available under 
 57.12  paragraph (a).  Aid under this paragraph for each school 
 57.13  district is based on costs submitted from the previous school 
 57.14  year.  
 57.15     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 57.16  124.3201, subdivision 1, is amended to read: 
 57.17     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 57.18  section and section 124.321, the definitions in this subdivision 
 57.19  apply. 
 57.20     (a) "Base year" for fiscal year ~~1998~~ 2000 and later fiscal 
 57.21  years means the ~~second~~ fiscal year preceding the fiscal year for 
 57.22  which aid will be paid. 
 57.23     (b) "Basic revenue" has the meaning given it in section 
 57.24  124A.22, subdivision 2.  For the purposes of computing basic 
 57.25  revenue pursuant to this section, each child with a disability 
 57.26  shall be counted as prescribed in section 124.17, subdivision 1. 
 57.27     (c) "Essential personnel" means teachers, related services, 
 57.28  and support services staff providing direct services to students.
 57.29     (d) "Average daily membership" has the meaning given it in 
 57.30  section 124.17. 
 57.31     (e) "Program growth factor" means 1.00 for fiscal year 2000 
 57.32  and later. 
 57.33     (f) "Aid percentage factor" means 60 percent for fiscal 
 57.34  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 57.35  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 57.36  percent for fiscal years 2000 and later. 
 58.1      (g) "Levy percentage factor" means 100 minus the aid 
 58.2   percentage factor for that year. 
 58.3      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 58.4   124.3201, subdivision 2, is amended to read: 
 58.5      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 58.6   education base revenue equals the sum of the following amounts 
 58.7   computed using base year data: 
 58.8      (1) 68 percent of the salary of each essential person 
 58.9   employed in the district's program for children with a 
 58.10  disability during the ~~regular school~~ fiscal year, whether the 
 58.11  person is employed by one or more districts or a Minnesota 
 58.12  correctional facility operating on a fee-for-service basis; 
 58.13     (2) for the Minnesota state academy for the deaf or the 
 58.14  Minnesota state academy for the blind, 68 percent of the salary 
 58.15  of each instructional aide assigned to a child attending the 
 58.16  academy, if that aide is required by the child's individual 
 58.17  education plan; 
 58.18     (3) for special instruction and services provided to any 
 58.19  pupil by contracting with public, private, or voluntary agencies 
 58.20  other than school districts, in place of special instruction and 
 58.21  services provided by the district, 52 percent of the difference 
 58.22  between the amount of the contract and the basic revenue of the 
 58.23  district for that pupil for the fraction of the school day the 
 58.24  pupil receives services under the contract; 
 58.25     (4) for special instruction and services provided to any 
 58.26  pupil by contracting for services with public, private, or 
 58.27  voluntary agencies other than school districts, that are 
 58.28  supplementary to a full educational program provided by the 
 58.29  school district, 52 percent of the amount of the contract for 
 58.30  that pupil; 
 58.31     (5) for supplies and equipment purchased or rented for use 
 58.32  in the instruction of children with a disability an amount equal 
 58.33  to 47 percent of the sum actually expended by the district, or a 
 58.34  Minnesota correctional facility operating on a fee-for-service 
 58.35  basis, but not to exceed an average of $47 in any one school 
 58.36  year for each child with a disability receiving instruction; 
 59.1      (6) for fiscal years 1997 and later, special education base 
 59.2   revenue shall include amounts under clauses (1) to (5) for 
 59.3   special education summer programs provided during the base year 
 59.4   for that fiscal year; and 
 59.5      (7) for fiscal years 1999 and later, the cost of providing 
 59.6   transportation services for children with disabilities under 
 59.7   section 124.225, subdivision 1, paragraph (b), clause (4).  
 59.8      (b) If requested by a school district operating a special 
 59.9   education program during the base year for less than the full 
 59.10  ~~school~~ fiscal year, or a school district in which is located a 
 59.11  Minnesota correctional facility operating on a fee-for-service 
 59.12  basis for less than the full fiscal year, the commissioner may 
 59.13  adjust the base revenue to reflect the expenditures that would 
 59.14  have occurred during the base year had the program been operated 
 59.15  for the full ~~school~~ fiscal year. 
 59.16     (c) Notwithstanding paragraphs (a) and (b), the portion of 
 59.17  a school district's base revenue attributable to a Minnesota 
 59.18  correctional facility operating on a fee-for-service basis 
 59.19  during the facilities first year of operating on a 
 59.20  fee-for-service basis shall be computed using current year data. 
 59.21     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 59.22  124.3201, subdivision 4, is amended to read: 
 59.23     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] (a) The 
 59.24  state total special education revenue for fiscal year 1998 
 59.25  equals $358,542,000.  The state total special education revenue 
 59.26  for fiscal year 1999 equals $435,322,000.  The state total 
 59.27  special education revenue for later fiscal years equals:  
 59.28     (1) the state total special education revenue for the 
 59.29  preceding fiscal year; times 
 59.30     (2) the program growth factor; times 
 59.31     (3) the ratio of the state total average daily membership 
 59.32  for the current fiscal year to the state total average daily 
 59.33  membership for the preceding fiscal year. 
 59.34     (b) For fiscal years 2000 and later, the commissioner shall 
 59.35  increase the state total special education revenue amount by the 
 59.36  amount of any decrease in the excess cost aid program due to 
 60.1   eliminating the two-year lag under subdivision 1. 
 60.2      Sec. 28.  Minnesota Statutes 1996, section 124.3201, 
 60.3   subdivision 5, is amended to read: 
 60.4      Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 60.5   A school district's special education revenue for fiscal year 
 60.6   1996 and later equals the state total special education revenue, 
 60.7   minus the amount determined under paragraph (b), times the ratio 
 60.8   of the district's adjusted special education base revenue to the 
 60.9   state total adjusted special education base revenue.  If the 
 60.10  state board of education modifies its rules for special 
 60.11  education in a manner that increases a school district's special 
 60.12  education obligations or service requirements, the commissioner 
 60.13  of children, families, and learning shall annually increase each 
 60.14  district's special education revenue by the amount necessary to 
 60.15  compensate for the increased service requirements.  The 
 60.16  additional revenue equals the cost in the current year 
 60.17  attributable to rule changes not reflected in the computation of 
 60.18  special education base revenue, multiplied by the appropriate 
 60.19  percentages from subdivision 2. 
 60.20     (b) Notwithstanding paragraph (a), if the special education 
 60.21  base revenue for a district equals zero, the special education 
 60.22  revenue equals the amount computed according to subdivision 2 
 60.23  using current year data.  
 60.24     (c) If the state special education base revenue is not 
 60.25  known during the current year, the department of children, 
 60.26  families, and learning shall initially calculate school district 
 60.27  special education revenue based on 95 percent of the state total 
 60.28  special education revenue established in subdivision 4 until the 
 60.29  special education base revenue is known.  
 60.30     Sec. 29.  Minnesota Statutes 1996, section 124.323, is 
 60.31  amended by adding a subdivision to read: 
 60.32     Subd. 4.  [TUITION.] Notwithstanding section 120.17, for 
 60.33  children who are nonresidents of Minnesota, receive services 
 60.34  under section 124.3201, subdivisions 1 and 2, and are placed in 
 60.35  the serving school district by court action, the serving school 
 60.36  district shall submit unreimbursed tuition bills for eligible 
 61.1   services to the department of children, families, and learning 
 61.2   instead of the resident school district.  To be eligible for 
 61.3   reimbursement, the serving school district, as part of its child 
 61.4   intake procedures, must demonstrate good faith effort to obtain 
 61.5   from the placing agency a financial commitment to pay tuition 
 61.6   costs. 
 61.7      Sec. 30.  Minnesota Statutes 1996, section 124.323, is 
 61.8   amended by adding a subdivision to read: 
 61.9      Subd. 5.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 61.10  purposes of reimbursing serving school districts under 
 61.11  subdivision 4, $300,000 is annually appropriated from the 
 61.12  general fund to the commissioner of children, families, and 
 61.13  learning for unreimbursed eligible expenditures attributable to 
 61.14  children who have been placed in the serving school district by 
 61.15  court action. 
 61.16     Sec. 31.  Minnesota Statutes 1996, section 124A.034, 
 61.17  subdivision 2, is amended to read: 
 61.18     Subd. 2.  [LOCATION OF SERVICES.] (a) Public school 
 61.19  programs that provide instruction in core curriculum may be 
 61.20  provided to shared time pupils only at a public school building; 
 61.21  ~~provided, however, that special instruction and services for~~ 
 61.22  ~~children with a disability required pursuant to section 120.17~~ 
 61.23  ~~may also be provided at a neutral site as defined in section~~ 
 61.24  ~~123.932,~~ public school programs, excluding programs that provide 
 61.25  instruction in core curriculum, may be provided to shared time 
 61.26  pupils at a public school building, a neutral site, the 
 61.27  nonpublic school, or any other suitable location.  Guidance and 
 61.28  counseling and diagnostic and health services required ~~pursuant~~ 
 61.29  ~~to~~ under section 120.17 may ~~also~~ be provided at a nonpublic 
 61.30  school building.  As used in this subdivision, "diagnostic 
 61.31  services" means speech, hearing, vision, psychological, medical 
 61.32  and dental diagnostic services and "health services" means 
 61.33  physician, nursing or optometric services provided to pupils in 
 61.34  the field of physical and mental health.  
 61.35     (b) For those children with a disability under section 
 61.36  120.17 who attend nonpublic school and for whom a free and 
 62.1   appropriate education is available at a public school, a school 
 62.2   district may provide special instruction and services at the 
 62.3   nonpublic school building only to the extent required under the 
 62.4   Individuals with Disabilities Education Act, Public Law Number 
 62.5   105-17, as amended.  A school district may provide special 
 62.6   instruction and services for such children at a neutral site as 
 62.7   defined in section 123.932, subdivision 9. 
 62.8      Sec. 32.  Minnesota Statutes 1996, section 124A.036, 
 62.9   subdivision 1a, is amended to read: 
 62.10     Subd. 1a.  [REPORTING; REVENUE FOR HOMELESS.] For all 
 62.11  school purposes, unless otherwise specifically provided by law, 
 62.12  a homeless pupil ~~must be considered~~ is a resident of the school 
 62.13  district ~~that enrolls the pupil~~ in which the homeless shelter or 
 62.14  other program, center, or facility assisting the homeless pupil 
 62.15  or the pupil's family is located. 
 62.16     Sec. 33.  Minnesota Statutes 1996, section 124A.036, is 
 62.17  amended by adding a subdivision to read: 
 62.18     Subd. 1b.  [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 
 62.19  In those instances when the divorced parents share joint 
 62.20  physical custody of the child and the divorced parents reside in 
 62.21  different school districts, for all school purposes, unless 
 62.22  otherwise specifically provided by law, the child must be 
 62.23  considered a resident of the school district in which the child 
 62.24  resides for the majority of the school year, as indicated by the 
 62.25  child's parents.  
 62.26     (b) When the child of divorced parents under paragraph (a) 
 62.27  resides with each parent on alternate weeks, the parents shall 
 62.28  transport the child to the border of the resident school 
 62.29  district during those weeks when the child resides in the 
 62.30  nonresident school district. 
 62.31     Sec. 34.  Minnesota Statutes 1996, section 124A.036, 
 62.32  subdivision 4, is amended to read: 
 62.33     Subd. 4.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
 62.34  agency or a court of the state desires to place a child in a 
 62.35  school district which is not the child's district of 
 62.36  residence or to place a pupil who is a parent under section 
 63.1   120.101, subdivision 3, in a school district which is not the 
 63.2   school district in which the pupil's biological or adoptive 
 63.3   parent or designated guardian resides, that agency or court 
 63.4   shall, prior to placement, allow the district of residence an 
 63.5   opportunity to participate in the placement decision and notify 
 63.6   the district of residence, the district of attendance and the 
 63.7   commissioner of children, families, and learning of the 
 63.8   placement decision.  When a state agency or court determines 
 63.9   that an immediate emergency placement is necessary and that time 
 63.10  does not permit district participation in the placement decision 
 63.11  or notice to the districts and the commissioner of children, 
 63.12  families, and learning of the placement decision prior to the 
 63.13  placement, the agency or court may make the decision and 
 63.14  placement without that participation or prior notice.  The 
 63.15  agency or court shall notify the district of residence, the 
 63.16  district of attendance and the commissioner of children, 
 63.17  families, and learning of an emergency placement within 15 days 
 63.18  of the placement.  
 63.19     Sec. 35.  Minnesota Statutes 1996, section 124C.45, 
 63.20  subdivision 2, is amended to read: 
 63.21     Subd. 2.  [ACCESS TO SERVICES.] A center shall have access 
 63.22  to the district's regular education programs, special education 
 63.23  programs, technology facilities, and staff.  It may contract 
 63.24  with individuals or post-secondary institutions.  It shall seek 
 63.25  the involvement of community education programs, post-secondary 
 63.26  institutions, interagency collaboratives, community resources, 
 63.27  businesses, and other federal, state, and local public agencies. 
 63.28     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
 63.29  124C.46, subdivision 1, is amended to read: 
 63.30     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 63.31  services of a center must focus on academic and learning skills, 
 63.32  applied learning opportunities, trade and vocational skills, 
 63.33  work-based learning opportunities, work experience, youth 
 63.34  service to the community, and transition services.  Applied 
 63.35  learning, work-based learning, and service learning may best be 
 63.36  developed in collaboration with a local education and 
 64.1   transitions partnership.  In addition to offering programs, the 
 64.2   center shall coordinate the use of other available educational 
 64.3   services, special education services, social services, health 
 64.4   services, and post-secondary institutions in the community and 
 64.5   services area.  
 64.6      (b) Consistent with the requirements of sections 127.26 to 
 64.7   127.39, a school district may provide an alternative education 
 64.8   program for a student who is within the compulsory attendance 
 64.9   age under section 120.06 and who is involved in severe or 
 64.10  repeated disciplinary action.  
 64.11     (c) Area learning centers are encouraged to offer 
 64.12  extended-day and extended-year programs to pupils who are at 
 64.13  risk of not meeting state graduation standards. 
 64.14     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
 64.15  124C.46, subdivision 2, is amended to read: 
 64.16     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 64.17  programs for secondary pupils and adults.  A center may also 
 64.18  provide programs and services for elementary and secondary 
 64.19  pupils who are not attending the center to assist them in being 
 64.20  successful in school.  An individual education plan team may 
 64.21  identify a center as an appropriate placement to the extent a 
 64.22  center can provide the student with the appropriate special 
 64.23  education services described in the student's plan.  Pupils 
 64.24  eligible to be served are those age five to adults ~~21~~ 22 and 
 64.25  older who qualify under the graduation incentives program in 
 64.26  section 126.22, subdivision 2, or those pupils who are eligible 
 64.27  to receive special education services under section 120.17. 
 64.28     Sec. 38.  Minnesota Statutes 1996, section 124C.47, is 
 64.29  amended to read: 
 64.30     124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 
 64.31     An area learning center must serve as a resource for other 
 64.32  districts, educational, community, and business organizations.  
 64.33  The center may charge a fee for these services.  The following 
 64.34  services shall be provided for a region or the state:  
 64.35     (1) information and research for alternative programs; 
 64.36     (2) regional or state workshops on awareness, 
 65.1   identification, programs, and support for these pupils; ~~and~~ 
 65.2      (3) recommendations for staff qualifications to ensure the 
 65.3   most qualified staff can be selected for the programs; and 
 65.4      (4) recommendations for successful learning programs for 
 65.5   special education students placed in an alternative setting. 
 65.6      Sec. 39.  Minnesota Statutes 1996, section 124C.48, is 
 65.7   amended by adding a subdivision to read: 
 65.8      Subd. 3.  [SPECIAL EDUCATION REVENUE.] Payment of special 
 65.9   education revenue for nonresident pupils enrolled in the center 
 65.10  must be made according to section 120.17, subdivision 6. 
 65.11     Sec. 40.  Minnesota Statutes 1996, section 126.237, is 
 65.12  amended to read: 
 65.13     126.237 [ALTERNATE INSTRUCTION REQUIRED.] 
 65.14     (a) Before a pupil is referred for a special education 
 65.15  assessment, the district must conduct and document at least two 
 65.16  instructional strategies, alternatives, or interventions while 
 65.17  the pupil is in the regular classroom.  The pupil's teacher must 
 65.18  provide the documentation.  A special education assessment team 
 65.19  may waive this requirement when they determine the pupil's need 
 65.20  for the assessment is urgent.  This section may not be used to 
 65.21  deny a pupil's right to a special education assessment. 
 65.22     (b) A school district shall adopt procedures for using 
 65.23  alternative intervention services, including the assurance of 
 65.24  mastery program under section 124.3111 and the first grade 
 65.25  preparedness program under section 124.2613, to serve at-risk 
 65.26  students who demonstrate a need for alternative instructional 
 65.27  strategies or interventions. 
 65.28     Sec. 41.  Minnesota Statutes 1996, section 127.27, 
 65.29  subdivision 2, is amended to read: 
 65.30     Subd. 2.  [DISMISSAL.] "Dismissal" means the denial of the 
 65.31  ~~appropriate~~ current educational program to any pupil, including 
 65.32  exclusion, expulsion, and suspension.  It does not include 
 65.33  removal from class.  
 65.34     Sec. 42.  Minnesota Statutes 1996, section 127.27, 
 65.35  subdivision 4, is amended to read: 
 65.36     Subd. 4.  [EXCLUSION.] "Exclusion" means an action taken by 
 66.1   the school board to prevent enrollment or reenrollment of a 
 66.2   pupil for a period that shall not extend beyond the end of the 
 66.3   current school year. 
 66.4      Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 66.5   127.27, subdivision 10, is amended to read: 
 66.6      Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 66.7   the school administration, under rules promulgated by the school 
 66.8   board, prohibiting a pupil from attending school for a period of 
 66.9   no more than ten school days.  If a suspension is longer than 
 66.10  five days, the suspending administrator must provide the 
 66.11  superintendent with a reason for the longer suspension.  This 
 66.12  definition does not apply to dismissal from school for one 
 66.13  school day or less, except as provided in federal law for a 
 66.14  student with a disability.  Each suspension action ~~shall~~ may 
 66.15  include a readmission plan.  The readmission plan shall include, 
 66.16  where appropriate, a provision for implementing alternative 
 66.17  educational services upon readmission and may not be used to 
 66.18  extend the current suspension.  The school administration may 
 66.19  not impose consecutive suspensions against the same pupil for 
 66.20  the same course of conduct, or incident of misconduct, except 
 66.21  where the pupil will create an immediate and substantial danger 
 66.22  to self or to surrounding persons or property, or where the 
 66.23  district is in the process of initiating an expulsion, in which 
 66.24  case the school administration may extend the suspension ~~up~~ to a 
 66.25  total of 15 days.  In the case of a pupil with a disability, ~~a~~ 
 66.26  ~~suspension may not exceed ten school days~~ school districts must 
 66.27  comply with applicable federal law.  The school administration 
 66.28  shall implement alternative educational services ~~to the extent~~ 
 66.29  ~~that~~ when the suspension exceeds ~~five~~ ten days.  A separate 
 66.30  administrative conference is required for each period of 
 66.31  suspension. 
 66.32     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
 66.33  127.27, subdivision 11, is amended to read: 
 66.34     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
 66.35  educational services" may include, but are not limited to, 
 66.36  special tutoring, modified curriculum, modified instruction, 
 67.1   other modifications or adaptations, instruction through 
 67.2   electronic media, special education services as indicated by 
 67.3   appropriate assessment, homebound instruction, supervised 
 67.4   homework, or enrollment in another district or in an alternative 
 67.5   learning center under section 124C.45 selected to allow the 
 67.6   pupil to progress toward meeting graduation standards under 
 67.7   section 121.11, subdivision 7c, although in a different setting. 
 67.8      Sec. 45.  Minnesota Statutes 1997 Supplement, section 
 67.9   127.281, is amended to read: 
 67.10     127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
 67.11  DISABILITY.] 
 67.12     When a pupil who has an individual education plan is 
 67.13  excluded or expelled under sections 127.26 to 127.39 for 
 67.14  misbehavior that is not a manifestation of the pupil's 
 67.15  disability, the district shall continue to provide special 
 67.16  education and related services after a period of suspension, if 
 67.17  suspension is imposed.  The district shall initiate a review of 
 67.18  the individual education plan within ~~five~~ ten school days of 
 67.19  commencing an expulsion, exclusion, or a suspension. 
 67.20     Sec. 46.  Minnesota Statutes 1997 Supplement, section 
 67.21  127.31, subdivision 15, is amended to read: 
 67.22     Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school 
 67.23  administrator shall prepare and enforce an admission or 
 67.24  readmission plan for any pupil who is ~~suspended,~~ excluded~~,~~ or 
 67.25  expelled from school.  The plan may include measures to improve 
 67.26  the pupil's behavior and require parental involvement in the 
 67.27  admission or readmission process, and may indicate the 
 67.28  consequences to the pupil of not improving the pupil's behavior. 
 67.29     Sec. 47.  Minnesota Statutes 1997 Supplement, section 
 67.30  127.32, is amended to read: 
 67.31     127.32 [APPEAL.] 
 67.32     A party to an exclusion or expulsion decision made under 
 67.33  sections 127.26 to 127.39 may appeal the decision to the 
 67.34  commissioner of children, families, and learning within 21 
 67.35  calendar days of school board action.  Upon being served with a 
 67.36  notice of appeal, the district shall provide the commissioner 
 68.1   and the parent or guardian with a complete copy of the hearing 
 68.2   record within five days of its receipt of the notice of appeal.  
 68.3   All written submissions by the appellant must be submitted and 
 68.4   served on the respondent within ten days of its actual receipt 
 68.5   of the transcript.  All written submissions by the respondent 
 68.6   must be submitted and served on the appellant within ten days of 
 68.7   its actual receipt of the written submissions of the appellant.  
 68.8   The decision of the school board must be implemented during the 
 68.9   appeal to the commissioner. 
 68.10     In an appeal under this section, the commissioner may 
 68.11  affirm the decision of the agency, may remand the decision for 
 68.12  additional findings, or may reverse or modify the decision if 
 68.13  the substantial rights of the petitioners ~~may~~ have been 
 68.14  prejudiced because the administrative findings, inferences, 
 68.15  conclusions, or decisions are: 
 68.16     (1) in violation of constitutional provisions; 
 68.17     (2) in excess of the statutory authority or jurisdiction of 
 68.18  the school district; 
 68.19     (3) made upon unlawful procedure, except as provided in 
 68.20  section 127.311; 
 68.21     (4) affected by other error of law; 
 68.22     (5) unsupported by substantial evidence in view of the 
 68.23  entire record submitted; or 
 68.24     (6) arbitrary or capricious. 
 68.25  The commissioner or the commissioner's representative shall make 
 68.26  a final decision based upon the record ~~of evidence presented at~~ 
 68.27  ~~the hearing~~.  The commissioner shall issue a decision within 30 
 68.28  calendar days of receiving the entire record and the parties' 
 68.29  written submission on appeal.  The commissioner's decision shall 
 68.30  be final and binding upon the parties after the time for appeal 
 68.31  expires under section 127.33. 
 68.32     Sec. 48.  Minnesota Statutes 1997 Supplement, section 
 68.33  127.36, subdivision 1, is amended to read: 
 68.34     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 68.35  board shall report each exclusion or expulsion within 30 days of 
 68.36  the effective date of the action to the commissioner of 
 69.1   children, families, and learning.  This report shall include a 
 69.2   statement of alternative educational services given the pupil 
 69.3   ~~before beginning exclusion or expulsion proceedings,~~ and the 
 69.4   reason for, the effective date, and the duration of the 
 69.5   exclusion or expulsion.  
 69.6      Sec. 49.  Minnesota Statutes 1997 Supplement, section 
 69.7   127.38, is amended to read: 
 69.8      127.38 [POLICIES TO BE ESTABLISHED.] 
 69.9      (a) The commissioner of children, families, and learning 
 69.10  shall promulgate guidelines to assist each school board.  Each 
 69.11  school board shall establish uniform criteria for dismissal and 
 69.12  adopt written policies and rules to effectuate the purposes of 
 69.13  sections 127.26 to 127.39.  The policies shall emphasize 
 69.14  preventing dismissals through early detection of problems and 
 69.15  shall be designed to address students' inappropriate behavior 
 69.16  from recurring.  The policies shall recognize the continuing 
 69.17  responsibility of the school for the education of the pupil 
 69.18  during the dismissal period.  The alternative educational 
 69.19  services, if the pupil wishes to take advantage of them, must be 
 69.20  adequate to allow the pupil to make progress towards meeting the 
 69.21  graduation standards adopted under section 121.11, subdivision 
 69.22  7c, and, at a minimum, appropriate to the grade level the pupil 
 69.23  would have been enrolled in if the pupil had not been dismissed, 
 69.24  and help prepare the pupil for readmission.  
 69.25     (b) An area learning center under section 124C.45 may not 
 69.26  prohibit an expelled or excluded pupil from enrolling solely 
 69.27  because a district expelled or excluded the pupil.  The board of 
 69.28  the area learning center may use the provisions of The Pupil 
 69.29  Fair Dismissal Act to exclude a pupil or to require an admission 
 69.30  plan. 
 69.31     (c) The commissioner shall actively encourage and assist 
 69.32  school districts to cooperatively establish alternative 
 69.33  educational services within school buildings or at alternative 
 69.34  program sites that offer instruction to pupils who are dismissed 
 69.35  from school for willfully engaging in dangerous, disruptive, or 
 69.36  violent behavior, including for possessing a firearm in a school 
 70.1   zone. 
 70.2      Sec. 50.  Minnesota Statutes 1996, section 256B.0625, 
 70.3   subdivision 26, is amended to read: 
 70.4      Subd. 26.  [SPECIAL EDUCATION SERVICES.] Medical assistance 
 70.5   covers medical services identified in a recipient's 
 70.6   individualized education plan and covered under the medical 
 70.7   assistance state plan.  The services may be provided by a 
 70.8   Minnesota school district that is enrolled as a medical 
 70.9   assistance provider or its subcontractor, and only if the 
 70.10  services meet all the requirements otherwise applicable if the 
 70.11  service had been provided by a provider other than a school 
 70.12  district, in the following areas:  medical necessity, 
 70.13  physician's orders, documentation, personnel qualifications, and 
 70.14  prior authorization requirements.  Services of a speech-language 
 70.15  pathologist provided under this section are covered 
 70.16  notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 
 70.17  L, if the person: 
 70.18     (1) holds a masters degree in speech-language pathology; 
 70.19     (2) is licensed by the Minnesota board of teaching as an 
 70.20  educational speech-language pathologist; and 
 70.21     (3) either has a certificate of clinical competence from 
 70.22  the American Speech and Hearing Association, has completed the 
 70.23  equivalent educational requirements and work experience 
 70.24  necessary for the certificate or has completed the academic 
 70.25  program and is acquiring supervised work experience to qualify 
 70.26  for the certificate.  Medical assistance coverage for medically 
 70.27  necessary services provided under other subdivisions in this 
 70.28  section may not be denied solely on the basis that the same or 
 70.29  similar services are covered under this subdivision. 
 70.30     Sec. 51.  Laws 1997, First Special Session chapter 4, 
 70.31  article 2, section 51, subdivision 2, is amended to read: 
 70.32     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 70.33  For grants to American Indian language and culture education 
 70.34  programs according to Minnesota Statutes, section 126.54, 
 70.35  subdivision 1: 
 70.36       $591,000     .....     1998
 71.1        ~~$591,000~~ $716,000    .....     1999
 71.2      The 1998 appropriation includes $59,000 for 1997 and 
 71.3   $532,000 for 1998.  
 71.4      The 1999 appropriation includes $59,000 for 1998 and 
 71.5   ~~$532,000~~ $657,000 for 1999.  
 71.6      Any balance in the first year does not cancel but is 
 71.7   available in the second year. 
 71.8      Sec. 52.  Laws 1997, First Special Session chapter 4, 
 71.9   article 2, section 51, subdivision 4, is amended to read: 
 71.10     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 71.11  GRANTS.] For American Indian post-secondary preparation grants 
 71.12  according to Minnesota Statutes, section 124.481: 
 71.13       $857,000     .....     1998
 71.14       ~~$857,000~~   $982,000    .....     1999
 71.15     Any balance in the first year does not cancel but is 
 71.16  available in the second year. 
 71.17     Sec. 53.  Laws 1997, First Special Session chapter 4, 
 71.18  article 2, section 51, subdivision 5, is amended to read: 
 71.19     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 71.20  Indian scholarships according to Minnesota Statutes, section 
 71.21  124.48: 
 71.22       $1,600,000     .....     1998 
 71.23       ~~$1,600,000~~ $1,725,000    .....     1999 
 71.24     Any balance in the first year does not cancel but is 
 71.25  available in the second year. 
 71.26     Sec. 54.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
 71.27  AND SERVICES.] 
 71.28     (a) The state board of education must amend all rules 
 71.29  relating to providing special instruction and services to 
 71.30  children with a disability so that the rules do not impose 
 71.31  requirements that exceed federal law.  The state board, with the 
 71.32  assistance of the department of children, families, and 
 71.33  learning, shall provide a written report to the education 
 71.34  committees of the legislature by January 1, 1999, identifying 
 71.35  and explaining those state special education rules that exceed 
 71.36  federal special education requirements by improving services or 
 72.1   efficiency or reducing state or district costs.  The state board 
 72.2   may use the expedited process under Minnesota Statutes, section 
 72.3   14.389, to amend these rules. 
 72.4      (b) As of July 1, 1999, any rules relating to providing 
 72.5   special instruction and services to children with a disability 
 72.6   are invalid to the extent they exceed the requirements in 
 72.7   federal law unless a law is enacted before July 1, 1999, 
 72.8   indicating the intent of the state to exceed one or more federal 
 72.9   requirements. 
 72.10     Sec. 55.  [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 
 72.11  DISCIPLINE POLICIES.] 
 72.12     Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
 72.13  year 1999 is established to develop, implement, and evaluate 
 72.14  school discipline policies, consistent with the Pupil Fair 
 72.15  Dismissal Act of 1974 under Minnesota Statutes, sections 127.26 
 72.16  to 127.39 and 127.40 to 127.48.  Discipline policies developed 
 72.17  under this section should be designed to enable students to 
 72.18  successfully return to the regular classroom setting after being 
 72.19  disciplined for misbehavior.  Discipline policies should focus 
 72.20  on early intervention strategies that limit the need to provide 
 72.21  regular education students with additional special programs or 
 72.22  services. 
 72.23     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 72.24  school site, school district, charter school, or provider of an 
 72.25  alternative education program.  To be eligible for a grant, the 
 72.26  grant applicant must meet all of the following criteria: 
 72.27     (1) develop a plan to establish a school site mediation 
 72.28  board under Minnesota Statutes, sections 127.411 to 127.42, to 
 72.29  mediate issues relating to district or school site codes of 
 72.30  conduct that apply to regular and special education students; 
 72.31     (2) include in the code of conduct a plan to remove from 
 72.32  the regular classroom setting those students who violate the 
 72.33  code; 
 72.34     (3) provide students who violate the code with an 
 72.35  alternative education setting within the school or program site; 
 72.36  and 
 73.1      (4) make the alternative education setting a constructive 
 73.2   experience by using instructional materials tied to educational 
 73.3   standards, placing students in an alternative setting outside 
 73.4   the normal school day, involving parents in effecting 
 73.5   discipline, or developing intervention techniques such as 
 73.6   timeouts, among other alternatives. 
 73.7      Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
 73.8   implement constructive school discipline policies, a grant 
 73.9   applicant must submit an application to the commissioner of 
 73.10  children, families, and learning in the form and manner the 
 73.11  commissioner establishes.  The application must describe how the 
 73.12  applicant will meet the eligibility criteria under subdivision 
 73.13  2.  The commissioner may require the applicant to provide 
 73.14  additional information. 
 73.15     Subd. 4.  [GRANT AWARDS.] The commissioner may award up to 
 73.16  five grants of up to $50,000.  Grant recipients must be located 
 73.17  throughout the state and have diverse experiences with student 
 73.18  disciplinary matters.  The amount of the grant shall be based on 
 73.19  the number of students the grant recipient anticipates will be 
 73.20  disciplined and on the alternative education settings the grant 
 73.21  recipient proposes to use.  Grant recipients must use the grant 
 73.22  proceeds to accomplish the purposes of this section. 
 73.23     Subd. 5.  [EVALUATION.] The commissioner shall evaluate the 
 73.24  grant sites and selected control sites to determine the impact 
 73.25  of the constructive discipline policy grant program on measures 
 73.26  of student behavior and performance, including at least, student 
 73.27  achievement and attendance, and the impact of the program on the 
 73.28  school site, student body, classroom, and school faculty.  The 
 73.29  evaluation must also address the financial impact of the program 
 73.30  on the district and the school site.  Upon implementing a 
 73.31  student code of conduct consistent with this section, the grant 
 73.32  recipient must cooperate in evaluating the impact of code 
 73.33  policies.  As a part of the evaluation process, the grant 
 73.34  recipient must document student and parent response to code 
 73.35  policies over at least a three-year period.  The commissioner 
 73.36  shall compile for the education committees of the legislature a 
 74.1   progress report by February 1, 1999, and a final report by 
 74.2   February 1, 2001, on the effectiveness and impact of discipline 
 74.3   policies. 
 74.4      Sec. 56.  [SPEECH-LANGUAGE PATHOLOGISTS.] 
 74.5      The board of teaching shall allow individuals who hold a 
 74.6   certificate of clinical competence from the American 
 74.7   Speech-Language-Hearing Association to be licensed as 
 74.8   speech-language pathologists. 
 74.9      Sec. 57.  [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 
 74.10  SERVICES.] 
 74.11     The board of teaching, in order to comply with section 56, 
 74.12  shall by rule allow individuals who hold a certificate of 
 74.13  clinical competence from the American Speech-Language-Hearing 
 74.14  Association to be licensed as speech-language pathologists. 
 74.15     Sec. 58.  [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 
 74.16     Special education base revenue for independent school 
 74.17  district No. 535, Rochester, is increased by $150,000 per year 
 74.18  for fiscal years 1998 and 1999 to reflect the increased special 
 74.19  education costs associated with the opening of a new facility 
 74.20  for juvenile offenders in Olmsted county. 
 74.21     Sec. 59.  [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 
 74.22  EDUCATION LAW.] 
 74.23     The commissioner of children, families, and learning shall 
 74.24  prepare a report comparing existing and currently proposed 
 74.25  federal laws and regulations and state laws and rules governing 
 74.26  special education, indicating those state laws and rules 
 74.27  governing special education that exceed or expand upon minimum 
 74.28  requirements under federal special education law or regulations 
 74.29  and the rationale for the state to exceed or expand upon those 
 74.30  federal requirements.  The commissioner shall make the report 
 74.31  available to the public, the education committees of the 
 74.32  legislature, and the state board by September 30, 1998, for 
 74.33  consideration in amending state rules under section 54. 
 74.34     Sec. 60.  [APPROPRIATIONS.] 
 74.35     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 74.36  LEARNING.] The sums indicated in this section are appropriated 
 75.1   from the general fund to the department of children, families, 
 75.2   and learning for the fiscal years designated. 
 75.3      Subd. 2.  [CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.] For 
 75.4   grants to develop, implement, and evaluate school discipline 
 75.5   policies under section 55: 
 75.6          $250,000     .....     1999 
 75.7      Grant recipients may expend grant proceeds over a 
 75.8   three-year period.  Of this amount, $13,500 is for performing an 
 75.9   evaluation. 
 75.10     Subd. 3.  [STATEWIDE THIRD-PARTY BILLING SYSTEM; 
 75.11  ASSISTANCE.] For developing and implementing an effective and 
 75.12  efficient statewide third-party billing system under section 2: 
 75.13         $200,000     .....     1999 
 75.14     Funds remain available until expended. 
 75.15     Subd. 4.  [LITIGATION COSTS.] For paying 50 percent of the 
 75.16  litigation costs a district actually incurs under section 24, 
 75.17  paragraph (b): 
 75.18         $300,00      .....     1999
 75.19     If the amount appropriated is insufficient to fully fund 
 75.20  the aid for hearing and litigation costs under Minnesota 
 75.21  Statutes, section 124.32, subdivision 13, paragraph (b), the 
 75.22  commissioner shall prorate the appropriation to school districts 
 75.23  based on the amount of aid calculated for each district. 
 75.24     Subd. 5.  [PROVIDING TECHNICAL ASSISTANCE.] For department 
 75.25  staff to provide technical assistance and training to school 
 75.26  districts and cooperative units under section 2: 
 75.27          $50,000     .....     1999 
 75.28     Subd. 6.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 75.29  reimbursing serving school districts for unreimbursed eligible 
 75.30  expenditures attributable to children placed in the serving 
 75.31  school district by court action under Minnesota Statutes, 
 75.32  section 124.323: 
 75.33         $300,000     .....     1999
 75.34     Sec. 61.  [PROVIDING TECHNICAL ASSISTANCE.] 
 75.35     $50,000 is appropriated in fiscal year 1999 from the 
 75.36  general fund to the commissioner of human services to provide 
 76.1   technical assistance and training under section 2. 
 76.2      Sec. 62.  [REPEALER.] 
 76.3      Minnesota Rules, part 3525.2750, subpart 1, item B, is 
 76.4   repealed. 
 76.5      Sec. 63.  [EFFECTIVE DATE.] 
 76.6      Sections 9, 22, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 
 76.7   57, and 58 are effective the day following final enactment. 
 76.8                              ARTICLE 3 
 76.9              INTERAGENCY SERVICES AND LIFELONG LEARNING 
 76.10     Section 1.  Minnesota Statutes 1996, section 120.1701, 
 76.11  subdivision 2, is amended to read: 
 76.12     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 76.13  the following terms have the meaning given them.  
 76.14     (a) "Coordinate" means to provide ready access to a 
 76.15  community's services and resources to meet child and family 
 76.16  needs.  
 76.17     (b) "Core early intervention services" means services that 
 76.18  are available at no cost to children and families.  These 
 76.19  services include: 
 76.20     (1) identification and referral; 
 76.21     (2) screening; 
 76.22     (3) evaluation; 
 76.23     (4) assessment; 
 76.24     (5) service coordination; 
 76.25     (6) special education and related services provided under 
 76.26  section 120.17, subdivision 3a, and United States Code, title 
 76.27  20, section 1401; and 
 76.28     (7) protection of parent and child rights by means of 
 76.29  procedural safeguards. 
 76.30     (c) "County board" means a county board established under 
 76.31  chapter 375. 
 76.32     (d) "Early intervention record" means any personally 
 76.33  identifiable information about a child or the child's family 
 76.34  that is generated by the early intervention system, and that 
 76.35  pertains to evaluation and assessment, development of an 
 76.36  individualized family service plan, and the delivery of early 
 77.1   intervention services. 
 77.2      (e) "Early intervention services" means services provided 
 77.3   in conformity with an individualized family service plan that 
 77.4   are designed to meet the special developmental needs of a child 
 77.5   eligible under Code of Federal Regulations, title 34, part 303, 
 77.6   and the needs of the child's family related to enhancing the 
 77.7   child's development and that are selected in collaboration with 
 77.8   the parent.  These services include core early intervention 
 77.9   services and additional early intervention services listed in 
 77.10  subdivision 4 and services defined in Code of Federal 
 77.11  Regulations, title 34, section 303, et seq. 
 77.12     (f) "Early intervention system" means the total effort in 
 77.13  the state to meet the needs of eligible children and their 
 77.14  families, including, but not limited to: 
 77.15     (1) any public agency in the state that receives funds 
 77.16  under the Individuals with Disabilities Education Act, United 
 77.17  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 77.18  Number 102-119); 
 77.19     (2) other state and local agencies administering programs 
 77.20  involved in the provision of early intervention services, 
 77.21  including, but not limited to: 
 77.22     (i) the Maternal and Child Health program under title V of 
 77.23  the Social Security Act, United States Code, title 42, sections 
 77.24  701 to 709; 
 77.25     (ii) the Individuals with Disabilities Education Act, 
 77.26  United States Code, title 20, sections 1411 to 1420 (Part B); 
 77.27     (iii) medical assistance under the Social Security Act, 
 77.28  United States Code, title 42, section 1396 et seq.; 
 77.29     (iv) the Developmental Disabilities Assistance and Bill of 
 77.30  Rights Act, United States Code, title 42, sections 6021 to 6030 
 77.31  (Part B); and 
 77.32     (v) the Head Start Act, United States Code, title 42, 
 77.33  sections 9831 to 9852; and 
 77.34     (3) services provided by private groups or third-party 
 77.35  payers in conformity with an individualized family service plan. 
 77.36     (g) "Eligibility for Part H" means eligibility for early 
 78.1   childhood special education under section 120.03 and Minnesota 
 78.2   Rules, part 3525.2335, subpart 1, items A and B. 
 78.3      (h) "Facilitate payment" means helping families access 
 78.4   necessary public or private assistance that provides payment for 
 78.5   services required to meet needs identified in a service plan, 
 78.6   individual education plan (IEP), individual service plan (ISP), 
 78.7   or individualized family service plan (IFSP), according to time 
 78.8   frames required by the plan.  This may also include activities 
 78.9   to collect fees for services provided on a sliding fee basis, 
 78.10  where permitted by state law. 
 78.11     (i) "Individualized family service plan" or "IFSP" means a 
 78.12  written plan for providing services to a child and the child's 
 78.13  family.  
 78.14     (j) "Interagency child find systems" means activities 
 78.15  developed on an interagency basis with the involvement of 
 78.16  interagency early intervention committees and other relevant 
 78.17  community groups to actively seek out, identify, and refer 
 78.18  infants and young children with, or at risk of, disabilities, 
 78.19  and their families. 
 78.20     (k) "Local primary agency" means the agency designated 
 78.21  jointly by the school and county board under subdivision 4. 
 78.22     (l) "Natural environments" means the child's home and 
 78.23  community settings in which children without disabilities 
 78.24  participate. 
 78.25     (m) "Parent" means the biological parent with parental 
 78.26  rights, adoptive parent, legal guardian, or surrogate parent. 
 78.27     ~~(m)~~ (n) "Part H state plan" means the annual state plan 
 78.28  application approved by the federal government under the 
 78.29  Individuals with Disabilities Education Act, United States Code, 
 78.30  title 20, section 1471 et seq. (Part H, Public Law Number 
 78.31  102-119). 
 78.32     ~~(n)~~ (o) "Pay for" means using federal, state, local, and 
 78.33  private dollars available for early intervention services. 
 78.34     ~~(o)~~ (p) "Respite" means short-term, temporary care provided 
 78.35  to a child with a disability due to the temporary absence or 
 78.36  need for relief of the family member or members or primary 
 79.1   caregiver, normally providing the care. 
 79.2      ~~(p)~~ (q) "State lead agency" means the state agency 
 79.3   receiving federal funds under the Individuals with Disabilities 
 79.4   Education Act, United States Code, title 20, section 1471 et 
 79.5   seq. (Part H, Public Law Number 102-119). 
 79.6      ~~(q)~~ (r) "Surrogate parent" means a person appointed by the 
 79.7   local education agency to assure that the rights of the child to 
 79.8   early intervention services are protected.  A person cannot be a 
 79.9   surrogate parent to a child for whom the person provides early 
 79.10  intervention services. 
 79.11     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
 79.12  120.1701, subdivision 3, is amended to read: 
 79.13     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 79.14  interagency coordinating council of at least 17, but not more 
 79.15  than 25 members is established, in compliance with Public Law 
 79.16  Number 102-119, section 682.  The members shall be appointed by 
 79.17  the governor.  Council members shall elect the council chair.  
 79.18  The representative of the commissioner of children, families, 
 79.19  and learning may not serve as the chair.  The council shall be 
 79.20  composed of at least five parents, including persons of color, 
 79.21  of children with disabilities under age 12, including at least 
 79.22  three parents of a child with a disability under age seven, five 
 79.23  representatives of public or private providers of services for 
 79.24  children with disabilities under age five, including a special 
 79.25  education director, county social service director, local Head 
 79.26  Start director, and a community health services or public health 
 79.27  nursing administrator, one member of the senate, one member of 
 79.28  the house of representatives, one representative of teacher 
 79.29  preparation programs in early childhood-special education or 
 79.30  other preparation programs in early childhood intervention, at 
 79.31  least one representative of advocacy organizations for children 
 79.32  with disabilities under age five, one physician who cares for 
 79.33  young children with special health care needs, one 
 79.34  representative each from the commissioners of commerce, 
 79.35  children, families, and learning, health, human services, ~~and~~ 
 79.36  ~~economic security~~ a representative from the state agency 
 80.1   responsible for child care, and a representative from Indian 
 80.2   health services or a tribal council.  Section 15.059, 
 80.3   subdivisions 2 to 5, apply to the council.  The council shall 
 80.4   meet at least quarterly.  
 80.5      The council shall address methods of implementing the state 
 80.6   policy of developing and implementing comprehensive, 
 80.7   coordinated, multidisciplinary interagency programs of early 
 80.8   intervention services for children with disabilities and their 
 80.9   families. 
 80.10     The duties of the council include recommending policies to 
 80.11  ensure a comprehensive and coordinated system of all state and 
 80.12  local agency services for children under age five with 
 80.13  disabilities and their families.  The policies must address how 
 80.14  to incorporate each agency's services into a unified state and 
 80.15  local system of multidisciplinary assessment practices, 
 80.16  individual intervention plans, comprehensive systems to find 
 80.17  children in need of services, methods to improve public 
 80.18  awareness, and assistance in determining the role of interagency 
 80.19  early intervention committees.  
 80.20     Each year by June 1, the council shall recommend to the 
 80.21  governor and the commissioners of children, families, and 
 80.22  learning, health, human services, commerce, and economic 
 80.23  security policies for a comprehensive and coordinated system. 
 80.24     Notwithstanding any other law to the contrary, the state 
 80.25  interagency coordinating council shall expire on June 30, 2001. 
 80.26     Sec. 3.  Minnesota Statutes 1996, section 120.1701, 
 80.27  subdivision 5, is amended to read: 
 80.28     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 80.29  A school district, group of districts, or special education 
 80.30  cooperative, in cooperation with the health and human service 
 80.31  agencies located in the county or counties in which the district 
 80.32  or cooperative is located, shall establish an interagency early 
 80.33  intervention committee for children with disabilities under age 
 80.34  five and their families under this section, and for children 
 80.35  with disabilities ages three to 22 consistent with the 
 80.36  requirements under sections 120.1703 and 120.1705.  Committees 
 81.1   shall include representatives of local and regional health, 
 81.2   education, and county human service agencies; county boards; 
 81.3   school boards; early childhood family education programs; 
 81.4   parents of young children with disabilities under age 12; 
 81.5   current service providers; and may also include representatives 
 81.6   from other private or public agencies and school nurses.  The 
 81.7   committee shall elect a chair from among its members and shall 
 81.8   meet at least quarterly. 
 81.9      (b) The committee shall develop and implement interagency 
 81.10  policies and procedures concerning the following ongoing duties: 
 81.11     (1) develop public awareness systems designed to inform 
 81.12  potential recipient families of available programs and services; 
 81.13     (2) implement interagency child find systems designed to 
 81.14  actively seek out, identify, and refer infants and young 
 81.15  children with, or at risk of, disabilities and their families; 
 81.16     (3) establish and evaluate the identification, referral, 
 81.17  child and family assessment systems, procedural safeguard 
 81.18  process, and community learning systems to recommend, where 
 81.19  necessary, alterations and improvements; 
 81.20     (4) assure the development of individualized family service 
 81.21  plans for all eligible infants and toddlers with disabilities 
 81.22  from birth through age two, and their families, and individual 
 81.23  education plans and individual service plans when necessary to 
 81.24  appropriately serve children with disabilities, age three and 
 81.25  older, and their families and recommend assignment of financial 
 81.26  responsibilities to the appropriate agencies.  Agencies are 
 81.27  encouraged to develop individual family service plans for 
 81.28  children with disabilities, age three and older; 
 81.29     (5) implement a process for assuring that services involve 
 81.30  cooperating agencies at all steps leading to individualized 
 81.31  programs; 
 81.32     (6) facilitate the development of a transitional plan if a 
 81.33  service provider is not recommended to continue to provide 
 81.34  services; 
 81.35     (7) identify the current services and funding being 
 81.36  provided within the community for children with disabilities 
 82.1   under age five and their families; 
 82.2      (8) develop a plan for the allocation and expenditure of 
 82.3   additional state and federal early intervention funds under 
 82.4   United States Code, title 20, section 1471 et seq. (Part H, 
 82.5   Public Law Number 102-119) and United States Code, title 20, 
 82.6   section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 82.7      (9) develop a policy that is consistent with section 13.05, 
 82.8   subdivision 9, and federal law to enable a member of an 
 82.9   interagency early intervention committee to allow another member 
 82.10  access to data classified as not public. 
 82.11     (c) The local committee shall also: 
 82.12     (1) participate in needs assessments and program planning 
 82.13  activities conducted by local social service, health and 
 82.14  education agencies for young children with disabilities and 
 82.15  their families; 
 82.16     (2) review and comment on the early intervention section of 
 82.17  the total special education system for the district, the county 
 82.18  social service plan, the section or sections of the community 
 82.19  health services plan that address needs of and service 
 82.20  activities targeted to children with special health care needs, 
 82.21  and the section of the maternal and child health special project 
 82.22  grants that address needs of and service activities targeted to 
 82.23  children with chronic illness and disabilities; and 
 82.24     (3) prepare a yearly summary on the progress of the 
 82.25  community in serving young children with disabilities, and their 
 82.26  families, including the expenditure of funds~~, the identification~~ 
 82.27  ~~of unmet service needs identified on the individual family~~ 
 82.28  ~~services plan and other individualized plans, and local, state,~~ 
 82.29  ~~and federal policies impeding the implementation of this section~~.
 82.30     (d) The summary must be organized following a format 
 82.31  prescribed by the commissioner of the state lead agency and must 
 82.32  be submitted to each of the local agencies and to the state 
 82.33  interagency coordinating council by October 1 of each year. 
 82.34     The departments of children, families, and learning, 
 82.35  health, and human services must provide assistance to the local 
 82.36  agencies in developing cooperative plans for providing services. 
 83.1      Sec. 4.  Minnesota Statutes 1996, section 120.1701, 
 83.2   subdivision 11, is amended to read: 
 83.3      Subd. 11.  [PAYOR OF LAST RESORT.] ~~(a) For fiscal years~~ 
 83.4   ~~1995 and 1996,~~ The state lead agency shall ~~establish~~ maintain a 
 83.5   reserve account from federal sources to pay for services in 
 83.6   dispute or to pay for early intervention services when local 
 83.7   agencies have exhausted all other public and private funds 
 83.8   available for Part H eligible children. 
 83.9      ~~(b) The lead agency shall report to the legislature by~~ 
 83.10  ~~January 1, 1996, regarding county board expenditures for early~~ 
 83.11  ~~intervention services and the continuing need and funding of the~~ 
 83.12  ~~reserve account.~~  
 83.13     Sec. 5.  Minnesota Statutes 1996, section 120.1701, 
 83.14  subdivision 17, is amended to read: 
 83.15     Subd. 17.  [MEDIATION PROCEDURE.] The commissioner or 
 83.16  designee of the state lead agency shall use federal funds to 
 83.17  provide mediation for the activities in paragraphs (a) and (b). 
 83.18     (a) A parent may resolve a dispute regarding issues in 
 83.19  subdivision 16, paragraph (b), clause (5), through mediation.  
 83.20  If the parent chooses mediation, all public agencies involved in 
 83.21  the dispute shall participate in the mediation process.  The 
 83.22  parent and the public agencies must complete the mediation 
 83.23  process within 20 calendar days of the date the commissioner 
 83.24  receives a parent's written request for mediation.  The 
 83.25  mediation process may not be used to delay a parent's right to a 
 83.26  due process hearing.  The resolution of the mediation is not 
 83.27  binding on any party. 
 83.28     (b) The local primary agency may request mediation on 
 83.29  behalf of involved agencies when there are disputes between 
 83.30  agencies regarding responsibilities to coordinate, provide, pay 
 83.31  for, or facilitate payment for early intervention services. 
 83.32     Sec. 6.  [120.1703] [COORDINATED INTERAGENCY SERVICES.] 
 83.33     Subdivision 1.  [CITATION.] Sections 120.1703 and 120.1705 
 83.34  shall be cited as the "Interagency Services for Children with 
 83.35  Disabilities Act." 
 83.36     Subd. 2.  [PURPOSE.] It is the policy of the state to 
 84.1   develop and implement a coordinated, multidisciplinary, 
 84.2   interagency intervention service system for children ages three 
 84.3   to 22 with disabilities. 
 84.4      Subd. 3.  [DEFINITIONS.] For purposes of sections 120.1703 
 84.5   and 120.1705, the following terms have the meanings given them: 
 84.6      (a) "Health plan" means: 
 84.7      (1) a health plan under section 62Q.01, subdivision 3; 
 84.8      (2) a county-based purchasing plan under section 256B.692; 
 84.9      (3) a self-insured health plan established by a local 
 84.10  government under section 471.617; or 
 84.11     (4) self-insured health coverage provided by the state to 
 84.12  its employees or retirees. 
 84.13     (b) For purposes of this section, "health plan company" 
 84.14  means an entity that issues a health plan as defined in 
 84.15  paragraph (a). 
 84.16     (c) "Individual interagency intervention plan" means a 
 84.17  standardized written plan describing those programs or services 
 84.18  and the accompanying funding sources available to eligible 
 84.19  children with disabilities. 
 84.20     (d) "Interagency intervention service system" means a 
 84.21  system that coordinates services and programs required in state 
 84.22  and federal law to meet the needs of eligible children with 
 84.23  disabilities ages three to 22, including: 
 84.24     (1) services provided under the following programs or 
 84.25  initiatives administered by state or local agencies: 
 84.26     (i) the maternal and child health program under title V of 
 84.27  the Social Security Act, United States Code, title 42, sections 
 84.28  701 to 709; 
 84.29     (ii) the Individuals with Disabilities Education Act under 
 84.30  United States Code, title 20, chapter 33, subchapter II, 
 84.31  sections 1411 to 1420; 
 84.32     (iii) medical assistance under the Social Security Act, 
 84.33  United States Code, title 42, chapter 7, subchapter XIX, section 
 84.34  1396, et seq.; 
 84.35     (iv) the Developmental Disabilities Assistance and Bill of 
 84.36  Rights Act, United States Code, title 42, chapter 75, subchapter 
 85.1   II, sections 6021 to 6030, Part B; 
 85.2      (v) the Head Start Act, United States Code, title 42, 
 85.3   chapter 105, subchapter II, sections 9831 to 9852; 
 85.4      (vi) rehabilitation services provided under chapter 268A; 
 85.5      (vii) juvenile court act services provided under sections 
 85.6   260.011 to 260.301; 
 85.7      (viii) the children's mental health collaboratives under 
 85.8   section 245.493; 
 85.9      (ix) the family service collaboratives under section 
 85.10  121.8355; 
 85.11     (x) the family community support plan under section 
 85.12  245.4881, subdivision 4; 
 85.13     (xi) the Minnesota care program under chapter 256L; 
 85.14     (xii) the community health services grants under chapter 
 85.15  145; 
 85.16     (xiii) the community social services act funding under the 
 85.17  Social Security Act, United States Code, title 42, sections 1397 
 85.18  to 1397f; and 
 85.19     (xiv) the community interagency transition committees under 
 85.20  section 120.17, subdivision 16; 
 85.21     (2) services provided under a health plan in conformity 
 85.22  with an individual family service plan or an individual 
 85.23  education plan; and 
 85.24     (3) additional appropriate services that local agencies and 
 85.25  counties provide on an individual need basis upon determining 
 85.26  eligibility and receiving a request from the interagency early 
 85.27  intervention committee and the child's parent. 
 85.28     (e) "Children with disabilities" has the meaning given in 
 85.29  section 120.03. 
 85.30     (f) A "standardized written plan" means those individual 
 85.31  services or programs available through the interagency 
 85.32  intervention service system to an eligible child other than the 
 85.33  services or programs described in the child's individual 
 85.34  education plan or the child's individual family service plan. 
 85.35     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 85.36  shall convene by July 1, 1998, an 18-member interagency 
 86.1   committee to develop and implement a coordinated, 
 86.2   multidisciplinary, interagency intervention service system for 
 86.3   children with disabilities ages three to 22.  The commissioners 
 86.4   of commerce, children, families, and learning, health, human 
 86.5   rights, human services, economic security, and corrections shall 
 86.6   each appoint two committee members from their departments; the 
 86.7   association of Minnesota counties shall appoint two county 
 86.8   representatives, one of whom shall be an elected official, as 
 86.9   committee members; and the Minnesota school boards association 
 86.10  and the school nurse association of Minnesota shall each appoint 
 86.11  one committee member.  The committee shall select a chair from 
 86.12  among its members.  The committee shall meet at least monthly. 
 86.13     (b) The committee shall: 
 86.14     (1) identify and assist in removing state and federal 
 86.15  barriers to local coordination of services provided to children 
 86.16  with disabilities; 
 86.17     (2) ensure adequate, equitable, and flexible funding 
 86.18  sources to streamline these services; 
 86.19     (3) develop guidelines for implementing policies that 
 86.20  ensure a comprehensive and coordinated system of all state and 
 86.21  local agency services, including multidisciplinary assessment 
 86.22  practices for children with disabilities ages three to 22; 
 86.23     (4) develop, consistent with federal law, a standardized 
 86.24  written plan for providing services to a child with 
 86.25  disabilities; 
 86.26     (5) identify how current systems for dispute resolution can 
 86.27  be coordinated and develop guidelines for that coordination; 
 86.28     (6) develop an evaluation process to measure the success of 
 86.29  state and local interagency efforts in improving the quality and 
 86.30  coordination of services to children with disabilities ages 
 86.31  three to 22; 
 86.32     (7) develop guidelines to assist the governing boards of 
 86.33  the interagency early intervention committees in carrying out 
 86.34  the duties assigned in section 120.1705, subdivision 1, 
 86.35  paragraph (b); and 
 86.36     (8) carry out other duties necessary to develop and 
 87.1   implement within communities a coordinated, multidisciplinary, 
 87.2   interagency intervention service system for children with 
 87.3   disabilities. 
 87.4      (c) The committee shall consult on an ongoing basis with 
 87.5   the state education advisory committee for special education and 
 87.6   the governor's interagency coordinating council in carrying out 
 87.7   its duties under this section, including assisting the governing 
 87.8   boards of the interagency early intervention committees. 
 87.9      Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 87.10  state interagency committee shall issue a request for proposals 
 87.11  by January 1, 1999, to provide grants to the governing boards of 
 87.12  interagency intervention committees under section 120.1705 or a 
 87.13  combination of one or more counties and school districts to 
 87.14  establish five voluntary interagency intervention demonstration 
 87.15  projects.  One grant shall be used to implement a coordinated 
 87.16  service system for all eligible children with disabilities up to 
 87.17  age five who received services under section 120.1701.  Each 
 87.18  project must be operational by July 1, 1999.  The governing 
 87.19  boards of the interagency early intervention committees and the 
 87.20  counties and school districts receiving project grants must 
 87.21  develop efficient ways to coordinate services and funding for 
 87.22  children with disabilities ages three to 22, consistent with the 
 87.23  requirements of this section and section 120.1705 and the 
 87.24  guidelines developed by the state interagency committee under 
 87.25  this section. 
 87.26     (b) The state interagency committee shall evaluate the 
 87.27  demonstration projects and provide the evaluation results to 
 87.28  interagency early intervention committees. 
 87.29     Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in this section 
 87.30  and section 120.1705 relieves a health plan company, third-party 
 87.31  administrator or other third-party payer of an obligation to pay 
 87.32  for, or changes the validity of an obligation to pay for, 
 87.33  services provided to children with disabilities ages three to 22 
 87.34  and their families. 
 87.35     Subd. 7.  [AGENCY OBLIGATION.] Nothing in this section and 
 87.36  section 120.1705 removes the obligation of the state, counties, 
 88.1   local school districts, a regional agency, or a local agency or 
 88.2   organization to comply with any federal or state law that 
 88.3   mandates responsibility for finding, assessing, delivering, 
 88.4   assuring, or paying for education or related services for 
 88.5   children with disabilities and their families. 
 88.6      Sec. 7.  [120.1705] [INTERAGENCY EARLY INTERVENTION 
 88.7   COMMITTEE RESPONSIBILITIES.] 
 88.8      Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 88.9   boards of the interagency early intervention committees are 
 88.10  responsible for developing and implementing interagency policies 
 88.11  and procedures to coordinate services at the local level for 
 88.12  children with disabilities ages three to 22 under guidelines 
 88.13  established by the state interagency committee under section 
 88.14  120.1703, subdivision 4.  Consistent with the requirements in 
 88.15  this section and section 120.1703, the governing boards of the 
 88.16  interagency early intervention committees shall organize as a 
 88.17  joint powers board under section 471.59 or enter into an 
 88.18  interagency agreement that establishes a governance structure. 
 88.19     (b) The governing board of each interagency early 
 88.20  intervention committee as defined in section 120.1701, 
 88.21  subdivision 5, paragraph (a), which may include a juvenile 
 88.22  justice professional, shall: 
 88.23     (1) identify and assist in removing state and federal 
 88.24  barriers to local coordination of services provided to children 
 88.25  with disabilities; 
 88.26     (2) ensure adequate, equitable, and flexible use of funding 
 88.27  by local agencies for these services; 
 88.28     (3) implement policies that ensure a comprehensive and 
 88.29  coordinated system of all state and local agency services, 
 88.30  including multidisciplinary assessment practices, for children 
 88.31  with disabilities ages three to 22; 
 88.32     (4) use a standardized written plan for providing services 
 88.33  to a child with disabilities developed under section 120.1703; 
 88.34     (5) access the coordinated dispute resolution system and 
 88.35  incorporate the guidelines for coordinating services at the 
 88.36  local level, consistent with section 120.1703; 
 89.1      (6) use the evaluation process to measure the success of 
 89.2   the local interagency effort in improving the quality and 
 89.3   coordination of services to children with disabilities ages 
 89.4   three to 22 consistent with section 120.1703; 
 89.5      (7) develop a transitional plan for children moving from 
 89.6   the interagency early childhood intervention system under 
 89.7   section 120.1701 into the interagency intervention service 
 89.8   system under this section; 
 89.9      (8) coordinate services and facilitate payment for services 
 89.10  from public and private institutions, agencies, and health plan 
 89.11  companies; and 
 89.12     (9) share needed information consistent with state and 
 89.13  federal data practices requirements. 
 89.14     Subd. 2.  [SERVICES.] (a) Consistent with their training 
 89.15  and experience, physicians, other health care professionals 
 89.16  including school nurses, and education and human services 
 89.17  providers jointly must, with full participation of parents, 
 89.18  determine appropriate and medically necessary services for 
 89.19  eligible children with disabilities ages three to 22.  The 
 89.20  services provided to the child under this section must conform 
 89.21  with the child's standardized written plan.  The governing board 
 89.22  of an interagency early intervention committee must provide 
 89.23  those services contained in a child's individual education plan 
 89.24  and those services for which a legal obligation exists to the 
 89.25  extent funding is available. 
 89.26     (b) Nothing in this section and section 120.1703 increases 
 89.27  or decreases the obligation of the state, county, regional 
 89.28  agency, local school district, or local agency or organization 
 89.29  to pay for education, health care, or social services.  
 89.30     (c) A health plan may not exclude any medically necessary 
 89.31  covered service solely because the service is or could be 
 89.32  identified in a child's individual family service plan, 
 89.33  individual education plan, a plan established under section 504 
 89.34  of the federal Rehabilitation Act of 1973, or a student's 
 89.35  individual health plan.  This paragraph reaffirms the obligation 
 89.36  of a health plan company to provide or pay for certain medically 
 90.1   necessary covered services, and encourages a health plan company 
 90.2   to coordinate this care with any other providers of similar 
 90.3   services.  Also, a health plan company may not exclude from a 
 90.4   health plan any medically necessary covered service such as an 
 90.5   assessment or physical examination solely because the resulting 
 90.6   information may be used for an individual education plan or a 
 90.7   standardized written plan. 
 90.8      Subd. 3.  [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 
 90.9   all governing boards of interagency early intervention 
 90.10  committees statewide must implement a coordinated service system 
 90.11  for children with disabilities up to age five consistent with 
 90.12  the requirements of this section and section 120.1703 and the 
 90.13  evaluation results from the demonstration projects under section 
 90.14  120.1703, subdivision 5.  Children with disabilities up to the 
 90.15  age of 22 shall be eligible for coordinated services and their 
 90.16  eligibility to receive such services under this section shall be 
 90.17  phased in over a four-year period as follows: 
 90.18     (1) July 1, 2001, children up to age nine become eligible; 
 90.19     (2) July 1, 2002, children up to age 14 become eligible; 
 90.20     (3) July 1, 2003, children up to age 18 become eligible; 
 90.21  and 
 90.22     (4) July 1, 2004, children up to age 22 become eligible. 
 90.23     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 90.24  126.79, subdivision 3, is amended to read: 
 90.25     Subd. 3.  [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 
 90.26  AWARDS.] The commissioner shall make grants to eligible 
 90.27  applicants to establish local learn and earn programs.  Each 
 90.28  program shall operate for at least a four-year period.  A local 
 90.29  program shall select its participants from among eligible 
 90.30  students who are entering or are in the ninth grade at the 
 90.31  inception of the program.  A program may not refill a program 
 90.32  slot with another student if a student drops out of the program. 
 90.33  Students selected to participate in the program shall be 
 90.34  considered part of the program class and students who drop out 
 90.35  may return to the program at any time prior to graduation. 
 90.36     The commissioner shall establish the application procedure 
 91.1   for awarding grants under this section.  The commissioner shall 
 91.2   begin awarding grants by ~~September 1, 1997~~ May 1, 1998. 
 91.3      Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 91.4   126.79, subdivision 6, is amended to read: 
 91.5      Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 91.6   graduation achievement program must provide the opportunity for 
 91.7   participating students to complete: 
 91.8      (1) 250 hours each year, not including regular required 
 91.9   classroom hours, in basic education competency skills; 
 91.10     (2) 250 hours each year of service to the community 
 91.11  ~~service~~; and 
 91.12     (3) 250 hours each year of cultural enrichment and personal 
 91.13  development, including but not limited to adult mentoring; 
 91.14  participating in community cultural events; developing life 
 91.15  skills for use in the home, workplace, and community; and 
 91.16  learning to set goals, manage time, and make appropriate 
 91.17  behavior choices for varying social situations. 
 91.18     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 91.19  126.79, subdivision 7, is amended to read: 
 91.20     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 91.21  student shall receive a monetary stipend for each hour spent in 
 91.22  a program component activity, plus a bonus upon completion of 
 91.23  each component during each year of the program. 
 91.24     (b) An additional amount equal to or greater than each 
 91.25  student's earned stipends and bonuses must be deposited for the 
 91.26  student in a post-secondary opportunities ~~interest-bearing~~ 
 91.27  account, established by the commissioner through the higher 
 91.28  education services office.  A student may, upon graduation from 
 91.29  high school, use the funds accumulated for the student toward 
 91.30  the costs, including tuition, books, and lab fees, of attending 
 91.31  a Minnesota post-secondary institution or ~~participating in a~~ 
 91.32  ~~Minnesota post-secondary program~~ in a career training program.  
 91.33  Funds accumulated for a student shall be available to the 
 91.34  student from the time the student graduates from high school 
 91.35  until ten years after the date the student entered the learn and 
 91.36  earn graduation achievement program.  After ten years, the 
 92.1   commissioner shall close the student's account and any remaining 
 92.2   money in the account shall revert to the general fund. 
 92.3      The commissioner shall establish a procedure for providing 
 92.4   the monetary stipends and bonuses to students.  The commissioner 
 92.5   may delegate this authority to grantees. 
 92.6      Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 92.7   126.79, subdivision 8, is amended to read: 
 92.8      Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 92.9   program coordinator must maintain contact with all participating 
 92.10  students and their families; work with the school to link 
 92.11  students with the resources needed to improve their educational 
 92.12  skills; arrange for service to the community ~~service~~ and 
 92.13  cultural enrichment opportunities for students; maintain records 
 92.14  regarding student completion of program component hours; and 
 92.15  perform other administrative duties as necessary.  A program 
 92.16  coordinator must, to the extent possible, agree to remain with 
 92.17  the program for four years to provide continuity of adult 
 92.18  contact to the participating students. 
 92.19     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 92.20  126.79, subdivision 9, is amended to read: 
 92.21     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 92.22  collect information about participating students and a 
 92.23  demographically similar control group and shall evaluate the 
 92.24  short-term and long-term benefits participating students receive 
 92.25  from the learn and earn graduation achievement program, based on 
 92.26  the outcome measures specified in subdivision 2, and any other 
 92.27  criteria established by the commissioner as part of the grant 
 92.28  application process.  The evaluation must include a statistical 
 92.29  comparison of students participating in the program and the 
 92.30  control group.  The commissioner shall ~~track~~ follow 
 92.31  participating students and the control group for a minimum of 
 92.32  six years from the start of the program.  The commissioner shall 
 92.33  submit a preliminary report to the governor and the chairs of 
 92.34  the senate and house committees having jurisdiction over 
 92.35  education and crime prevention by December 15, ~~2000~~ 2001, 
 92.36  regarding continuation of the learn and earn graduation 
 93.1   achievement program for participating schools and expansion of 
 93.2   the program to additional schools.  The commissioner shall 
 93.3   submit a final report by December 15, ~~2002~~ 2003. 
 93.4      Sec. 13.  Laws 1997, First Special Session chapter 4, 
 93.5   article 3, section 23, is amended by adding a subdivision to 
 93.6   read: 
 93.7      Subd. 4a.  [PLANNING AND DESIGN GRANT.] (a) An eligible 
 93.8   lifework learning site applicant may apply for a one-time grant 
 93.9   to plan and design a lifework learning facility.  The planning 
 93.10  and design grant shall not exceed $200,000 for a site. 
 93.11     (b) A planning and design grant recipient shall report to 
 93.12  the commissioner of children, families, and learning on the 
 93.13  planning and design of the lifework learning facility and the 
 93.14  ability to start up the site and maintain the facility. 
 93.15     Sec. 14.  Laws 1997, First Special Session chapter 4, 
 93.16  article 3, section 25, subdivision 2, is amended to read: 
 93.17     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 93.18  secondary vocational education aid according to Minnesota 
 93.19  Statutes, section 124.573: 
 93.20       ~~$11,617,000~~ $12,718,000    .....     1998 
 93.21       ~~$11,596,000~~ $12,844,000    .....     1999 
 93.22     The 1998 appropriation includes $1,180,000 for 1997 and 
 93.23  ~~$10,437,000~~ $11,538,000 for 1998.  
 93.24     The 1999 appropriation includes ~~$1,159,000~~ $1,282,000 for 
 93.25  1998 and ~~$10,437,000~~ $11,562,000 for 1999.  
 93.26     Sec. 15.  Laws 1997 First Special Session, chapter 4, 
 93.27  article 3, section 25, subdivision 4, is amended to read: 
 93.28     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 93.29  GRANTS.] For education and employment transitions program: 
 93.30       $4,750,000      .....      1998
 93.31       $4,750,000      .....      1999 
 93.32     $500,000 each year is for development of MnCEPs, an 
 93.33  Internet-based education and employment information system.  
 93.34  These are one-time funds. 
 93.35     $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 
 93.36  year 1999 is for a rebate program for qualifying employers who 
 94.1   employ less than 250 employees, who offer youth internships to 
 94.2   educators.  An employer may apply for a rebate of up to $500 for 
 94.3   each paid youth internship and each educator internship, and up 
 94.4   to $3,000 for each paid youth apprenticeship.  The commissioner 
 94.5   shall determine the application and payment process. 
 94.6      $450,000 each year is for youth apprenticeship program 
 94.7   grants. 
 94.8      $225,000 each year is for youth entrepreneurship grants 
 94.9   under Minnesota Statutes, section 121.72.  Of this amount, 
 94.10  $25,000 each year is for the high school student 
 94.11  entrepreneurship program in independent school district No. 175, 
 94.12  Westbrook.  This appropriation shall be used for expenses, 
 94.13  including, but not limited to, salaries, travel, seminars, 
 94.14  equipment purchases, contractual expenses, and other expenses 
 94.15  related to the student-run business. 
 94.16     $125,000 each year is for youth employer grants under Laws 
 94.17  1995, First Special Session chapter 3, article 4, section 28. 
 94.18     $150,000 each year is for parent and community awareness 
 94.19  training. 
 94.20     $825,000 each year is for the development of career 
 94.21  assessment benchmarks, lifework portfolios, industry skill 
 94.22  standards, curriculum development, career academies, and career 
 94.23  programs for elementary, middle school, and at-risk learners. 
 94.24     $400,000 each year is for state level activities, including 
 94.25  the governor's workforce council. 
 94.26     $275,000 each year is for development of occupational 
 94.27  information. 
 94.28     $300,000 each year is for a grant to be made available to a 
 94.29  county government that has established school-to-work projects 
 94.30  with schools located in a city of the first class.  These grants 
 94.31  must be used to expand the number of at-risk students 
 94.32  participating in these school-to-work projects.  Priority must 
 94.33  be given to projects that demonstrate collaboration between 
 94.34  private employers, collective bargaining representatives, school 
 94.35  officials, and the county government and which prepare at-risk 
 94.36  students for long-term employment with private sector employers 
 95.1   paying a minimum of 150 percent of the federal poverty level for 
 95.2   a family of four and with the majority of their employees in 
 95.3   collective bargaining units. 
 95.4      $250,000 each year is for agricultural school-to-work 
 95.5   grants. 
 95.6      $25,000 is for a grant to the Minnesota Historical Society 
 95.7   for money canceled in fiscal year 1997. 
 95.8      Any balance remaining in the first year does not cancel but 
 95.9   is available in the second year. 
 95.10     Sec. 16.  [APPROPRIATIONS.] 
 95.11     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 95.12  LEARNING.] The sums indicated in this section are appropriated 
 95.13  from the general fund to the department of children, families, 
 95.14  and learning for the fiscal years designated.  
 95.15     Subd. 2.  [INTERVENTION DEMONSTRATION PROJECTS.] For 
 95.16  establishing five voluntary interagency intervention 
 95.17  demonstration projects under section 6, subdivision 5: 
 95.18       $  250,000     .....     1999 
 95.19     The commissioner shall allocate the grant awards according 
 95.20  to the implementation needs of the grant recipients. 
 95.21     Subd. 3.  [PLANNING AND DESIGN GRANT.] For one-time grants 
 95.22  to plan and design a lifework learning facility under section 13:
 95.23       $  450,000     .....     1999 
 95.24     Sec. 17.  [REPEALER.] 
 95.25     Laws 1993, chapter 146, article 5, section 20, as amended 
 95.26  by Laws 1997, First Special Session chapter 4, article 3, 
 95.27  section 20, is repealed. 
 95.28     Sec. 18.  [EFFECTIVE DATE.] 
 95.29     Sections 6, 8, 10, 13, 14, and 15 are effective the day 
 95.30  following final enactment. 
 95.31                             ARTICLE 4
 95.32                    FACILITIES AND ORGANIZATION
 95.33     Section 1.  Minnesota Statutes 1996, section 122.23, 
 95.34  subdivision 6, is amended to read: 
 95.35     Subd. 6.  The commissioner shall, upon receipt of a plat, 
 95.36  forthwith examine it and approve, modify or reject it.  The 
 96.1   commissioner shall also approve or reject any proposal contained 
 96.2   in the resolution or petition regarding the disposition of the 
 96.3   bonded debt of the component districts.  If the plat shows the 
 96.4   boundaries of proposed separate election districts and if the 
 96.5   commissioner modifies the plat, the commissioner shall also 
 96.6   modify the boundaries of the proposed separate election 
 96.7   districts.  The commissioner shall conduct a ~~hearing~~ public 
 96.8   meeting at the nearest county seat in the area upon reasonable 
 96.9   notice to the affected districts and county boards if requested 
 96.10  within 20 days after submission of the plat.  ~~Such a hearing~~ The 
 96.11  public meeting may be requested by the board of any affected 
 96.12  district, a county board of commissioners, or the petition of 20 
 96.13  resident voters living within the area proposed for 
 96.14  consolidation.  The commissioner shall endorse on the plat 
 96.15  action regarding any proposal for the disposition of the bonded 
 96.16  debt of component districts and the reasons for these actions 
 96.17  and ~~within~~ after a minimum of 20 days, but no more than 60 days 
 96.18  of the date of the receipt of the plat, the commissioner shall 
 96.19  return it to the county auditor who submitted it.  The 
 96.20  commissioner shall furnish a copy of that plat, and the 
 96.21  supporting statement and its endorsement to the auditor of each 
 96.22  county containing any land area of the proposed new district.  
 96.23  If land area of a particular county was included in the plat, as 
 96.24  submitted by the county auditor, and all of such land area is 
 96.25  excluded in the plat as modified and approved, the commissioner 
 96.26  shall also furnish a copy of the modified plat, supporting 
 96.27  statement, and any endorsement to the auditor of such county. 
 96.28     Sec. 2.  Minnesota Statutes 1996, section 123.35, 
 96.29  subdivision 19a, is amended to read: 
 96.30     Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
 96.31  SUPPORT.] (a) No school district shall be required by any type 
 96.32  of formal or informal agreement except an agreement to provide 
 96.33  building space according to paragraph (f), including a joint 
 96.34  powers agreement, or membership in any cooperative unit defined 
 96.35  in subdivision 19b, paragraph (d), to participate in or provide 
 96.36  financial support for the purposes of the agreement for a time 
 97.1   period in excess of ~~one~~ four fiscal ~~year~~ years, or the time 
 97.2   period set forth in this subdivision.  Any agreement, part of an 
 97.3   agreement, or other type of requirement to the contrary is void. 
 97.4      (b) This subdivision shall not affect the continued 
 97.5   liability of a school district for its share of bonded 
 97.6   indebtedness or other debt incurred as a result of any agreement 
 97.7   before July 1, 1993.  The school district is liable only until 
 97.8   the obligation or debt is discharged and only according to the 
 97.9   payment schedule in effect on July 1, 1993, except that the 
 97.10  payment schedule may be altered for the purpose of restructuring 
 97.11  debt or refunding bonds outstanding on July 1, 1993, if the 
 97.12  annual payments of the school district are not increased and if 
 97.13  the total obligation of the school district for its share of 
 97.14  outstanding bonds or other debt is not increased. 
 97.15     (c) To cease participating in or providing financial 
 97.16  support for any of the services or activities relating to the 
 97.17  agreement or to terminate participation in the agreement, the 
 97.18  school board shall adopt a resolution and notify other parties 
 97.19  to the agreement of its decision on or before February 1 of any 
 97.20  year.  The cessation or withdrawal shall be effective June 30 of 
 97.21  the same year except that for a member of an education district 
 97.22  organized under sections 122.91 to 122.95 or an intermediate 
 97.23  district organized under chapter 136D, cessation or withdrawal 
 97.24  shall be effective June 30 of the following fiscal year.  At the 
 97.25  option of the school board, cessation or withdrawal may be 
 97.26  effective June 30 of the following fiscal year for a district 
 97.27  participating in any type of agreement.  
 97.28     (d) Before issuing bonds or incurring other debt, the 
 97.29  governing body responsible for implementing the agreement shall 
 97.30  adopt a resolution proposing to issue bonds or incur other debt 
 97.31  and the proposed financial effect of the bonds or other debt 
 97.32  upon each participating district.  The resolution shall be 
 97.33  adopted within a time sufficient to allow the school board to 
 97.34  adopt a resolution within the time permitted by this paragraph 
 97.35  and to comply with the statutory deadlines set forth in sections 
 97.36  122.895, 125.12, and 125.17.  The governing body responsible for 
 98.1   implementing the agreement shall notify each participating 
 98.2   school board of the contents of the resolution.  Within 120 days 
 98.3   of receiving the resolution of the governing body, the school 
 98.4   board of the participating district shall adopt a resolution 
 98.5   stating: 
 98.6      (1) its concurrence with issuing bonds or incurring other 
 98.7   debt; 
 98.8      (2) its intention to cease participating in or providing 
 98.9   financial support for the service or activity related to the 
 98.10  bonds or other debt; or 
 98.11     (3) its intention to terminate participation in the 
 98.12  agreement. 
 98.13     A school board adopting a resolution according to clause 
 98.14  (1) is liable for its share of bonded indebtedness or other debt 
 98.15  as proposed by the governing body implementing the agreement.  A 
 98.16  school board adopting a resolution according to clause (2) is 
 98.17  not liable for the bonded indebtedness or other debt, as 
 98.18  proposed by the governing body, related to the services or 
 98.19  activities in which the district ceases participating or 
 98.20  providing financial support.  A school board adopting a 
 98.21  resolution according to clause (3) is not liable for the bonded 
 98.22  indebtedness or other debt proposed by the governing body 
 98.23  implementing the agreement. 
 98.24     (e) After July 1, 1993, a district is liable according to 
 98.25  paragraph (d) for its share of bonded indebtedness or other debt 
 98.26  incurred by the governing body implementing the agreement to the 
 98.27  extent that the bonds or other debt are directly related to the 
 98.28  services or activities in which the district participates or for 
 98.29  which the district provides financial support.  The district has 
 98.30  continued liability only until the obligation or debt is 
 98.31  discharged and only according to the payment schedule in effect 
 98.32  at the time the governing body implementing the agreement 
 98.33  provides notice to the school board, except that the payment 
 98.34  schedule may be altered for the purpose of refunding the 
 98.35  outstanding bonds or restructuring other debt if the annual 
 98.36  payments of the district are not increased and if the total 
 99.1   obligation of the district for the outstanding bonds or other 
 99.2   debt is not increased. 
 99.3      (f) A school district that is a member of a cooperative 
 99.4   unit as defined in subdivision 19b, paragraph (d), may obligate 
 99.5   itself to participate in and provide financial support for an 
 99.6   agreement with a cooperative unit to provide school building 
 99.7   space for a term not to exceed two years with an option on the 
 99.8   part of the district to renew for an additional two years. 
 99.9      (g) Notwithstanding any limitations imposed under this 
 99.10  subdivision, a school district may, according to section 123.36, 
 99.11  subdivision 10, enter into a lease of all or a portion of a 
 99.12  schoolhouse that is not needed for school purposes, including, 
 99.13  but not limited to, a lease with a term of more than one year. 
 99.14     Sec. 3.  Minnesota Statutes 1996, section 124.273, is 
 99.15  amended by adding a subdivision to read: 
 99.16     Subd. 8.  [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 
 99.17  purposes of this section and section 124.321, pupils of limited 
 99.18  English proficiency enrolled in a cooperative or intermediate 
 99.19  school district unit shall be counted by the school district of 
 99.20  residence, and the cooperative unit shall allocate its approved 
 99.21  expenditures for limited English proficiency programs among 
 99.22  participating school districts.  Limited English proficiency aid 
 99.23  for services provided by a cooperative or intermediate school 
 99.24  district shall be paid to the participating school districts. 
 99.25     Sec. 4.  Minnesota Statutes 1996, section 124.755, 
 99.26  subdivision 1, is amended to read: 
 99.27     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 99.28  section, the term "debt obligation" means ~~either~~: 
 99.29     (1) a tax or aid anticipation certificate of indebtedness; 
 99.30     (2) a certificate of participation issued under section 
 99.31  124.91, subdivision 7; or 
 99.32     (3) a general obligation bond.  
 99.33     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 99.34  124.91, subdivision 1, is amended to read: 
 99.35     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
 99.36  district finds it economically advantageous to rent or lease a 
100.1   building or land for any instructional purposes or for school 
100.2   storage or furniture repair, and it determines that the 
100.3   operating capital revenue authorized under section 124A.22, 
100.4   subdivision 10, is insufficient for this purpose, it may apply 
100.5   to the commissioner for permission to make an additional capital 
100.6   expenditure levy for this purpose.  An application for 
100.7   permission to levy under this subdivision must contain financial 
100.8   justification for the proposed levy, the terms and conditions of 
100.9   the proposed lease, and a description of the space to be leased 
100.10  and its proposed use.  
100.11     (b) The criteria for approval of applications to levy under 
100.12  this subdivision must include:  the reasonableness of the price, 
100.13  the appropriateness of the space to the proposed activity, the 
100.14  feasibility of transporting pupils to the leased building or 
100.15  land, conformity of the lease to the laws and rules of the state 
100.16  of Minnesota, and the appropriateness of the proposed lease to 
100.17  the space needs and the financial condition of the district.  
100.18  The commissioner must not authorize a levy under this 
100.19  subdivision in an amount greater than the cost to the district 
100.20  of renting or leasing a building or land for approved purposes.  
100.21  The proceeds of this levy must not be used for custodial or 
100.22  other maintenance services.  A district may not levy under this 
100.23  subdivision for the purpose of leasing or renting a 
100.24  district-owned building or site to itself. 
100.25     (c) For agreements finalized after July 1, 1997, a district 
100.26  may not levy under this subdivision for the purpose of leasing:  
100.27  (1) a newly constructed building used primarily for regular 
100.28  kindergarten, elementary, or secondary instruction; or (2) a 
100.29  newly constructed building addition or additions used primarily 
100.30  for regular kindergarten, elementary, or secondary instruction 
100.31  that contains more than 20 percent of the square footage of the 
100.32  previously existing building. 
100.33     (d) The total levy under this subdivision for a district 
100.34  for any year must not exceed $100 times the actual pupil units 
100.35  for the fiscal year to which the levy is attributable. 
100.36     (e) For agreements finalized after April 1, 1998, the term 
101.1   "instructional purpose" as used in this subdivision excludes 
101.2   expenditures on stadiums. 
101.3      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
101.4   124.91, subdivision 5, is amended to read: 
101.5      Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
101.6   with its central administrative office located within economic 
101.7   development region one, two, three, four, five, six, seven, 
101.8   eight, nine, and ten may apply to the commissioner of children, 
101.9   families, and learning for ITV revenue up to the greater of .5 
101.10  percent of the adjusted net tax capacity of the district or 
101.11  $25,000.  Eligible interactive television expenditures include 
101.12  the construction, maintenance, and lease costs of an interactive 
101.13  television system for instructional purposes.  An eligible 
101.14  school district that has completed the construction of its 
101.15  interactive television system may also purchase computer 
101.16  hardware and software used primarily for instructional purposes 
101.17  and access to the Internet provided that its total expenditures 
101.18  for interactive television maintenance and lease costs and for 
101.19  computer hardware and software under this subdivision do not 
101.20  exceed its interactive television revenue for fiscal year 1998.  
101.21  The approval by the commissioner of children, families, and 
101.22  learning and the application procedures set forth in subdivision 
101.23  1 shall apply to the revenue in this subdivision.  In granting 
101.24  the approval, the commissioner must consider whether the 
101.25  district is maximizing efficiency through peak use and off-peak 
101.26  use pricing structures. 
101.27     (b) To obtain ITV revenue, a district may levy an amount 
101.28  not to exceed the district's ITV revenue times the lesser of one 
101.29  or the ratio of: 
101.30     (1) the quotient derived by dividing the adjusted net tax 
101.31  capacity of the district for the year before the year the levy 
101.32  is certified by the actual pupil units in the district for the 
101.33  year to which the levy is attributable; to 
101.34     (2) ~~100 percent of the equalizing factor as defined in~~ 
101.35  ~~section 124A.02, subdivision 8, for the year to which the levy~~ 
101.36  ~~is attributable~~ $10,000. 
102.1      (c) A district's ITV aid is the difference between its ITV 
102.2   revenue and the ITV levy. 
102.3      (d) The revenue in the first year after reorganization for 
102.4   a district that has reorganized under section 122.22, 122.23, or 
102.5   122.241 to 122.247 shall be the greater of: 
102.6      (1) the revenue computed for the reorganized district under 
102.7   paragraph (a), or 
102.8      (2)(i) for two districts that reorganized, 75 percent of 
102.9   the revenue computed as if the districts involved in the 
102.10  reorganization were separate, or 
102.11     (ii) for three or more districts that reorganized, 50 
102.12  percent of the revenue computed as if the districts involved in 
102.13  the reorganization were separate. 
102.14     (e) The revenue in paragraph (d) is increased by the 
102.15  difference between the initial revenue and ITV lease costs for 
102.16  leases that had been entered into by the preexisting districts 
102.17  on the effective date of the consolidation or combination and 
102.18  with a term not exceeding ten years.  This increased revenue is 
102.19  only available for the remaining term of the lease.  However, in 
102.20  no case shall the revenue exceed the amount available had the 
102.21  preexisting districts received revenue separately. 
102.22     (f) Effective for fiscal year 2000, the revenue under this 
102.23  section shall be 75 percent of the amount determined in 
102.24  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
102.25  paragraph (a); and for fiscal year 2002, 25 percent of the 
102.26  amount in paragraph (a). 
102.27     (g) This section expires effective for revenue for fiscal 
102.28  year 2003, or when leases in existence on the effective date of 
102.29  Laws 1997, First Special Session chapter 4, expire.  
102.30     Sec. 7.  Minnesota Statutes 1996, section 124.95, 
102.31  subdivision 6, is amended to read: 
102.32     Subd. 6.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
102.33  Debt service equalization aid must be paid as follows:  30 
102.34  percent before September 15, 30 percent before December 15, ~~25~~ 
102.35  30 percent before March 15, and a final payment of ~~15~~ 10 percent 
102.36  by July 15 of the subsequent fiscal year. 
103.1      Sec. 8.  Minnesota Statutes 1997 Supplement, section 
103.2   124A.22, subdivision 11, is amended to read: 
103.3      Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
103.4   operating capital revenue may be used only for the following 
103.5   purposes: 
103.6      (1) to acquire land for school purposes; 
103.7      (2) to acquire or construct buildings for school purposes~~,~~ 
103.8   ~~up to $400,000~~; 
103.9      (3) to rent or lease buildings, including the costs of 
103.10  building repair or improvement that are part of a lease 
103.11  agreement; 
103.12     (4) to improve and repair school sites and buildings, and 
103.13  equip or reequip school buildings with permanent attached 
103.14  fixtures; 
103.15     (5) for a surplus school building that is used 
103.16  substantially for a public nonschool purpose; 
103.17     (6) to eliminate barriers or increase access to school 
103.18  buildings by individuals with a disability; 
103.19     (7) to bring school buildings into compliance with the 
103.20  uniform fire code adopted according to chapter 299F; 
103.21     (8) to remove asbestos from school buildings, encapsulate 
103.22  asbestos, or make asbestos-related repairs; 
103.23     (9) to clean up and dispose of polychlorinated biphenyls 
103.24  found in school buildings; 
103.25     (10) to clean up, remove, dispose of, and make repairs 
103.26  related to storing heating fuel or transportation fuels such as 
103.27  alcohol, gasoline, fuel oil, and special fuel, as defined in 
103.28  section 296.01; 
103.29     (11) for energy audits for school buildings and to modify 
103.30  buildings if the audit indicates the cost of the modification 
103.31  can be recovered within ten years; 
103.32     (12) to improve buildings that are leased according to 
103.33  section 123.36, subdivision 10; 
103.34     (13) to pay special assessments levied against school 
103.35  property but not to pay assessments for service charges; 
103.36     (14) to pay principal and interest on state loans for 
104.1   energy conservation according to section 216C.37 or loans made 
104.2   under the Northeast Minnesota Economic Protection Trust Fund Act 
104.3   according to sections 298.292 to 298.298; 
104.4      (15) to purchase or lease interactive telecommunications 
104.5   equipment; 
104.6      (16) by school board resolution, to transfer money into the 
104.7   debt redemption fund to:  (i) pay the amounts needed to meet, 
104.8   when due, principal and interest payments on certain obligations 
104.9   issued according to chapter 475; or (ii) pay principal and 
104.10  interest on debt service loans or capital loans according to 
104.11  section 124.44; 
104.12     (17) to pay capital expenditure equipment-related 
104.13  assessments of any entity formed under a cooperative agreement 
104.14  between two or more districts; 
104.15     (18) to purchase or lease computers and related materials, 
104.16  copying machines, telecommunications equipment, and other 
104.17  noninstructional equipment; 
104.18     (19) to purchase or lease assistive technology or equipment 
104.19  for instructional programs; 
104.20     (20) to purchase textbooks; 
104.21     (21) to purchase new and replacement library books; 
104.22     (22) to purchase vehicles; 
104.23     (23) to purchase or lease telecommunications equipment, 
104.24  computers, and related equipment for integrated information 
104.25  management systems for: 
104.26     (i) managing and reporting learner outcome information for 
104.27  all students under a results-oriented graduation rule; 
104.28     (ii) managing student assessment, services, and achievement 
104.29  information required for students with individual education 
104.30  plans; and 
104.31     (iii) other classroom information management needs; and 
104.32     (24) to pay personnel costs directly related to the 
104.33  acquisition, operation, and maintenance of telecommunications 
104.34  systems, computers, related equipment, and network and 
104.35  applications software. 
104.36     Sec. 9.  Laws 1997, First Special Session chapter 4, 
105.1   article 4, section 35, subdivision 9, is amended to read: 
105.2      Subd. 9.  [FLOOD LOSSES.] For grants and loans to 
105.3   independent school district Nos. 2854, Ada-Borup; 2176, 
105.4   Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 
105.5   and other districts affected by the 1997 floods for expenses 
105.6   associated with the floods not covered by insurance or state or 
105.7   federal disaster relief: 
105.8      $4,700,000     .....     1998
105.9      The commissioner shall award grants and loans to school 
105.10  districts to cover expenses associated with the 1997 floods.  
105.11  The grants or loans may be for capital losses or for 
105.12  extraordinary operating expenses resulting from the floods.  
105.13  School districts shall repay any loan or grant amounts to the 
105.14  department if those amounts are otherwise funded from other 
105.15  sources.  The commissioner shall establish the terms and 
105.16  conditions of any loans and may request any necessary 
105.17  information from school districts before awarding a grant or 
105.18  loan.  This appropriation shall also be used to fund aid under 
105.19  sections 33 and 34. 
105.20     This appropriation is available until June 30, 1999. 
105.21     Sec. 10.  Laws 1997, First Special Session chapter 4, 
105.22  article 9, section 12, subdivision 8, is amended to read: 
105.23     Subd. 8.  [INTERACTIVE TELEVISION (ITV) AID.] For 
105.24  interactive television (ITV) aid under Minnesota Statutes, 
105.25  section 124.91, subdivision 5: 
105.26       ~~$4,030,000~~ $4,569,000    .....     1998
105.27       ~~$4,052,000~~ $6,050,000    .....     1999
105.28     The 1998 appropriation includes $384,000 for 1997 and 
105.29  ~~$3,646,000~~ $4,185,000 for 1998. 
105.30     The 1999 appropriation includes ~~$405,000~~ $465,000 for 1998 
105.31  and ~~$3,647,000~~ $5,585,000 for 1999. 
105.32     Sec. 11.  [ENHANCED PAIRING COOPERATION AND COMBINATION 
105.33  AID.] 
105.34     Subdivision 1.  [DISTRICT ELIGIBILITY.] A group of 
105.35  districts participating in an enhanced pairing agreement under 
105.36  Laws 1995, First Special Session chapter 3, article 6, section 
106.1   17, is eligible for a grant for cooperation and combination. 
106.2      Subd. 2.  [AID AMOUNT.] A district that is participating in 
106.3   an enhanced pairing agreement is eligible for consolidation 
106.4   transition revenue under Minnesota Statutes, section 124.2726 
106.5   and is also eligible for additional state aid equal to $100 
106.6   times the number of pupil units enrolled in an enhanced paired 
106.7   district in the year prior to consolidation. 
106.8      Subd. 3.  [AID USES.] A district receiving aid under this 
106.9   section must use the aid consistent with the purposes listed 
106.10  under Minnesota Statutes, section 124.2725, subdivision 11, or 
106.11  other purposes related to combination of the individual 
106.12  districts as determined by the school board.  If, after receipt 
106.13  of state aid under this section the districts choose not to 
106.14  combine and receive aid under Minnesota Statutes, section 
106.15  124.2726, the commissioner of children, families, and learning 
106.16  must recover aid equal to $25 times the number of pupil units in 
106.17  the enhanced paired district. 
106.18     Sec. 12.  [LEASE LEVY FOR ADMINISTRATIVE SPACE; SOUTH ST. 
106.19  PAUL AND MANKATO.] 
106.20     Each year, special school district No. 6, South St. Paul, 
106.21  and independent school district No. 77, Mankato, may levy the 
106.22  amounts necessary to rent or lease administrative space so that 
106.23  space previously used for administrative purposes may be used 
106.24  for instructional purposes. 
106.25     Sec. 13.  [BONDING AUTHORIZATION.] 
106.26     To provide funds for the acquisition or betterment of 
106.27  school facilities, independent school district No. 625, St. 
106.28  Paul, may by two-thirds majority vote of all the members of the 
106.29  board of directors issue general obligation bonds in one or more 
106.30  series in calendar years 1998 to 2002, both inclusive, as 
106.31  provided in this section.  The aggregate principal amount of any 
106.32  bonds issued under this section for each calendar year must not 
106.33  exceed $15,000,000.  Issuance of the bonds is not subject to 
106.34  Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
106.35  otherwise be issued as provided in Minnesota Statutes, chapter 
106.36  475.  The authority to issue bonds under this section is in 
107.1   addition to any bonding authority authorized by Minnesota 
107.2   Statutes, chapter 124, or other law.  The amount of bonding 
107.3   authority authorized under this section must be disregarded in 
107.4   calculating the bonding limit of Minnesota Statutes, chapter 
107.5   124, or any other law other than Minnesota Statutes, section 
107.6   475.53, subdivision 4. 
107.7      Sec. 14.  [TAX LEVY FOR DEBT SERVICE.] 
107.8      To pay the principal of and interest on bonds issued under 
107.9   section 13, independent school district No. 625, St. Paul, must 
107.10  levy a tax annually in an amount sufficient under Minnesota 
107.11  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
107.12  principal of and interest on the bonds.  The tax authorized 
107.13  under this section is in addition to the taxes authorized to be 
107.14  levied under Minnesota Statutes, chapter 124A or 275, or other 
107.15  law. 
107.16     Sec. 15.  [LEVY MODIFICATION.] 
107.17     Independent school district No. 625, St. Paul, shall submit 
107.18  a revised schedule for capital expenditure health and safety 
107.19  projects to the commissioner of children, families, and 
107.20  learning.  The schedule must show a decrease in the district's 
107.21  health and safety revenue projects commensurate with the 
107.22  increase in its debt service levy attributable to the enactment 
107.23  of sections 13 and 14 for taxes payable in 1999 and taxes 
107.24  payable in 2000. 
107.25     Sec. 16.  [MODEL TECHNOLOGY PROGRAM.] 
107.26     Subdivision 1.  [PROGRAM.] A school district may develop a 
107.27  model technology program.  The program must provide for a 
107.28  systematic implementation of the district's technology plan.  
107.29  The plan must include a schedule of hardware and software 
107.30  purchases as well as provide for the technical support and staff 
107.31  development necessary to fully utilize the technology. 
107.32     Subd. 2.  [EQUIPMENT LEASING.] Notwithstanding any other 
107.33  law to the contrary, a school district may enter into an 
107.34  arrangement to lease hardware and software for a period of time 
107.35  mutually agreed upon by the school board and the contractor. 
107.36     Sec. 17.  [APPROPRIATION.] 
108.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
108.2   LEARNING.] The sums indicated in this section are appropriated 
108.3   from the general fund to the department of children, families, 
108.4   and learning for the fiscal years designated.  
108.5      Subd. 2.  [CROW RIVER AND MEEKER AND WRIGHT SPECIAL 
108.6   EDUCATION COOPERATIVES.] For a grant to special education 
108.7   cooperatives No. 52-937, Crow River, and No. 52-938, Meeker and 
108.8   Wright, for disability access improvements to conform to the 
108.9   Americans with Disabilities Act and for code compliance in 
108.10  school building space for the students served by the 
108.11  cooperatives: 
108.12       $  100,000     .....     1999 
108.13     Subd. 3.  [CARLTON PLANNING GRANT.] For a grant to 
108.14  independent school district No. 93, Carlton, to develop a plan 
108.15  to coordinate district buildings and services: 
108.16       $   10,000     .....     1999 
108.17     The school district shall collaborate with the city of 
108.18  Carlton and Carlton county in developing the plan. 
108.19     Subd. 4.  [CALEDONIA PLANNING GRANT.] (a) For a grant to 
108.20  perform a management assistance study for independent school 
108.21  district No. 299, Caledonia: 
108.22       $   40,000     .....     1999 
108.23     (b) The study shall include an analysis of facility needs, 
108.24  enrollment trends, and instructional opportunities available to 
108.25  pupils of independent school district No. 299, Caledonia.  The 
108.26  department may consult with neighboring school districts, as 
108.27  appropriate.  The department shall complete the management 
108.28  assistance study by December 31, 1998. 
108.29     (c) This appropriation is available until June 30, 1999. 
108.30     Subd. 5.  [COORDINATED FACILITIES PLAN; MAPLE RIVER.] For a 
108.31  grant to independent school district No. 2135, Maple River: 
108.32       $  200,000     .....     1999 
108.33     The grant shall be used to examine and coordinate the 
108.34  district's building needs.  The district must evaluate how the 
108.35  current use of its facilities is affecting its educational 
108.36  services and examine cost efficiencies that may result from a 
109.1   coordinated facilities plan.  The grant may be used for 
109.2   operating purposes, transportation purposes, or facilities 
109.3   purposes that lead to greater program efficiencies. 
109.4      Subd. 6.  [ENHANCED PAIRING COMBINATION AID.] For a grant 
109.5   to a group of school districts participating in the enhanced 
109.6   pairing program that intend to combine into a single school 
109.7   district: 
109.8        $  135,000     .....     1999 
109.9      Sec. 18.  [EFFECTIVE DATE.] 
109.10     (a) Sections 1, 2, 3, and 12 are effective July 1, 1998. 
109.11     (b) Section 4 is effective retroactively for revenue for 
109.12  fiscal year 1997. 
109.13     (c) Section 6 is effective for revenue for fiscal year 1999.
109.14     (d) Section 7 is effective for revenue for fiscal year 1998.
109.15     (e) Sections 8, 9, and 10 are effective the day following 
109.16  final enactment. 
109.17     (f) Sections 13 and 14 are effective the day after the 
109.18  governing body of independent school district No. 625, St. Paul, 
109.19  complies with Minnesota Statutes, section 645.021, subdivision 3.
109.20                             ARTICLE 5 
109.21               POLICIES PROMOTING ACADEMIC EXCELLENCE 
109.22     Section 1.  Minnesota Statutes 1996, section 43A.17, 
109.23  subdivision 9, is amended to read: 
109.24     Subd. 9.  [POLITICAL SUBDIVISION COMPENSATION LIMIT.] The 
109.25  salary and the value of all other forms of compensation of a 
109.26  person employed by a statutory or home rule charter city, 
109.27  county, town, ~~school district,~~ metropolitan or regional agency, 
109.28  or other political subdivision of this state excluding a school 
109.29  district, or employed under section 422A.03, may not exceed 95 
109.30  percent of the salary of the governor as set under section 
109.31  15A.082, except as provided in this subdivision.  Deferred 
109.32  compensation and payroll allocations to purchase an individual 
109.33  annuity contract for an employee are included in determining the 
109.34  employee's salary.  Other forms of compensation which shall be 
109.35  included to determine an employee's total compensation are all 
109.36  other direct and indirect items of compensation which are not 
110.1   specifically excluded by this subdivision.  Other forms of 
110.2   compensation which shall not be included in a determination of 
110.3   an employee's total compensation for the purposes of this 
110.4   subdivision are: 
110.5      (1) employee benefits that are also provided for the 
110.6   majority of all other full-time employees of the political 
110.7   subdivision, vacation and sick leave allowances, health and 
110.8   dental insurance, disability insurance, term life insurance, and 
110.9   pension benefits or like benefits the cost of which is borne by 
110.10  the employee or which is not subject to tax as income under the 
110.11  Internal Revenue Code of 1986; 
110.12     (2) dues paid to organizations that are of a civic, 
110.13  professional, educational, or governmental nature; and 
110.14     (3) reimbursement for actual expenses incurred by the 
110.15  employee which the governing body determines to be directly 
110.16  related to the performance of job responsibilities, including 
110.17  any relocation expenses paid during the initial year of 
110.18  employment. 
110.19     The value of other forms of compensation shall be the 
110.20  annual cost to the political subdivision for the provision of 
110.21  the compensation.  The salary of a medical doctor or doctor of 
110.22  osteopathy occupying a position that the governing body of the 
110.23  political subdivision has determined requires an M.D. or D.O. 
110.24  degree is excluded from the limitation in this subdivision.  The 
110.25  commissioner may increase the limitation in this subdivision for 
110.26  a position that the commissioner has determined requires special 
110.27  expertise necessitating a higher salary to attract or retain a 
110.28  qualified person.  The commissioner shall review each proposed 
110.29  increase giving due consideration to salary rates paid to other 
110.30  persons with similar responsibilities in the state and nation.  
110.31  The commissioner may not increase the limitation until the 
110.32  commissioner has presented the proposed increase to the 
110.33  legislative coordinating commission and received the 
110.34  commission's recommendation on it.  The recommendation is 
110.35  advisory only.  If the commission does not give its 
110.36  recommendation on a proposed increase within 30 days from its 
111.1   receipt of the proposal, the commission is deemed to have 
111.2   recommended approval. 
111.3      Sec. 2.  Minnesota Statutes 1996, section 43A.17, 
111.4   subdivision 10, is amended to read: 
111.5      Subd. 10.  [LOCAL ELECTED OFFICIALS; CERTAIN COMPENSATION 
111.6   PROHIBITED.] The compensation plan for an elected official of a 
111.7   statutory or home rule charter city, county, or town~~, or school~~ 
111.8   ~~district~~ may not include a provision for vacation or sick 
111.9   leave.  The salary of an official covered by this subdivision 
111.10  may not be diminished because of the official's absence from 
111.11  official duties because of vacation or sickness. 
111.12     Sec. 3.  Minnesota Statutes 1996, section 120.064, 
111.13  subdivision 11, is amended to read: 
111.14     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] (a) A 
111.15  charter school shall employ or contract with necessary teachers, 
111.16  as defined by section 125.03, subdivision 1, who hold valid 
111.17  licenses to perform the particular service for which they are 
111.18  employed in the school.  The school may employ necessary 
111.19  employees who are not required to hold teaching licenses to 
111.20  perform duties other than teaching and may contract for other 
111.21  services.  The school may discharge teachers and nonlicensed 
111.22  employees. 
111.23     (b) A charter school may enter into a contract for teaching 
111.24  or administrative services related to instruction only with: 
111.25     (1) an individual teacher for the teaching services of that 
111.26  teacher; 
111.27     (2) an individual administrator for the administrative 
111.28  services of that administrator; or 
111.29     (3) a nonprofit entity not controlled by or under common 
111.30  control with a related organization as defined in section 
111.31  317A.011, subdivision 18, that is other than a nonprofit 
111.32  corporation. 
111.33     Nothing in this subdivision shall prevent a charter school 
111.34  from contracting with other entities for administrative or 
111.35  instructional services if those services do not constitute the 
111.36  entire administration or operation of the charter school.  
112.1      (c) The board of directors also shall decide matters 
112.2   related to the operation of the school, including budgeting, 
112.3   curriculum and operating procedures. 
112.4      Sec. 4.  Minnesota Statutes 1997 Supplement, section 
112.5   120.101, subdivision 5, is amended to read: 
112.6      Subd. 5.  [AGES AND TERMS.] (a) Every child between seven 
112.7   and 16 years of age shall receive instruction.  Every child 
112.8   under the age of seven who is enrolled in a half-day 
112.9   kindergarten, or a full-day kindergarten program on alternate 
112.10  days, or other kindergarten programs shall receive instruction.  
112.11  Except as provided in subdivision 5a, a parent may withdraw a 
112.12  child under the age of seven from enrollment at any time. 
112.13     (b) A school district by annual board action may require 
112.14  children subject to this subdivision to receive instruction in 
112.15  summer school.  A district that acts to require children to 
112.16  receive instruction in summer school shall establish at the time 
112.17  of its action the criteria for determining which children must 
112.18  receive instruction. 
112.19     Sec. 5.  Minnesota Statutes 1996, section 120.73, 
112.20  subdivision 1, is amended to read: 
112.21     Subdivision 1.  A school board is authorized to require 
112.22  payment of fees in the following areas: 
112.23     ~~(a)~~ (1) in any program where the resultant product, in 
112.24  excess of minimum requirements and at the pupil's option, 
112.25  becomes the personal property of the pupil; 
112.26     ~~(b)~~ (2) admission fees or charges for extra curricular 
112.27  activities, where attendance is optional and where the admission 
112.28  fees or charges a student must pay to attend or participate in 
112.29  an extracurricular activity is the same for all students, 
112.30  regardless of whether the student is enrolled in a public or a 
112.31  home school; 
112.32     ~~(c)~~ (3) a security deposit for the return of materials, 
112.33  supplies, or equipment; 
112.34     ~~(d)~~ (4) personal physical education and athletic equipment 
112.35  and apparel, although any pupil may personally provide it if it 
112.36  meets reasonable requirements and standards relating to health 
113.1   and safety established by the school board; 
113.2      ~~(e)~~ (5) items of personal use or products which a student 
113.3   has an option to purchase such as student publications, class 
113.4   rings, annuals, and graduation announcements; 
113.5      ~~(f)~~ (6) fees specifically permitted by any other statute, 
113.6   including but not limited to section 171.04, subdivision 1, 
113.7   clause (1); 
113.8      ~~(g)~~ (7) field trips considered supplementary to a district 
113.9   educational program; 
113.10     ~~(h)~~ (8) any authorized voluntary student health and 
113.11  accident benefit plan; 
113.12     ~~(i)~~ (9) for the use of musical instruments owned or rented 
113.13  by the district, a reasonable rental fee not to exceed either 
113.14  the rental cost to the district or the annual depreciation plus 
113.15  the actual annual maintenance cost for each instrument; 
113.16     ~~(j)~~ (10) transportation of pupils to and from extra 
113.17  curricular activities conducted at locations other than school, 
113.18  where attendance is optional; 
113.19     ~~(k)~~ (11) transportation of pupils to and from school for 
113.20  which aid for fiscal year 1996 is not authorized under Minnesota 
113.21  Statutes 1994, section 124.223, subdivision 1, and for which 
113.22  levy for fiscal year 1996 is not authorized under Minnesota 
113.23  Statutes 1994, section 124.226, subdivision 5, if a district 
113.24  charging fees for transportation of pupils establishes 
113.25  guidelines for that transportation to ensure that no pupil is 
113.26  denied transportation solely because of inability to pay; 
113.27     ~~(l)~~ (12) motorcycle classroom education courses conducted 
113.28  outside of regular school hours; provided the charge shall not 
113.29  exceed the actual cost of these courses to the school district; 
113.30     ~~(m)~~ (13) transportation to and from post-secondary 
113.31  institutions for pupils enrolled under the post-secondary 
113.32  enrollment options program under section 123.39, subdivision 
113.33  16.  Fees collected for this service must be reasonable and 
113.34  shall be used to reduce the cost of operating the route.  
113.35  Families who qualify for mileage reimbursement under section 
113.36  123.3514, subdivision 8, may use their state mileage 
114.1   reimbursement to pay this fee.  If no fee is charged, districts 
114.2   shall allocate costs based on the number of pupils riding the 
114.3   route. 
114.4      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
114.5   121.11, subdivision 7c, is amended to read: 
114.6      Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
114.7   legislature is committed to establishing a rigorous, 
114.8   results-oriented graduation rule for Minnesota's public school 
114.9   students.  To that end, the state board shall use its rulemaking 
114.10  authority under subdivision 7b to adopt a statewide, 
114.11  results-oriented graduation rule to be implemented starting with 
114.12  students beginning ninth grade in the 1996-1997 school year.  
114.13  The board shall not prescribe in rule or otherwise the delivery 
114.14  system or form of instruction that local sites must use to meet 
114.15  the requirements contained in this rule. 
114.16     (b) To successfully accomplish paragraph (a), the state 
114.17  board shall set in rule high academic standards for all 
114.18  students.  The standards must contain the foundational skills in 
114.19  the three core curricular areas of reading, writing, and 
114.20  mathematics while meeting requirements for high school 
114.21  graduation.  The standards must also provide an opportunity for 
114.22  students to excel by meeting higher academic standards through a 
114.23  profile of learning that uses curricular requirements to allow 
114.24  students to expand their knowledge and skills beyond the 
114.25  foundational skills.  All state board actions regarding the rule 
114.26  must be premised on the following:  
114.27     (1) the rule is intended to raise academic expectations for 
114.28  students, teachers, and schools; 
114.29     (2) any state action regarding the rule must evidence 
114.30  consideration of school district autonomy; and 
114.31     (3) the department of children, families, and learning, 
114.32  with the assistance of school districts, must make available 
114.33  information about all state initiatives related to the rule to 
114.34  students and parents, teachers, and the general public in a 
114.35  timely format that is appropriate, comprehensive, and readily 
114.36  understandable. 
115.1      (c) For purposes of adopting the rule, the state board, in 
115.2   consultation with the department, recognized psychometric 
115.3   experts in assessment, and other interested and knowledgeable 
115.4   educators, using the most current version of professional 
115.5   standards for educational testing, shall evaluate the 
115.6   alternative approaches to assessment.  
115.7      (d) The content of the graduation rule must differentiate 
115.8   between minimum competencies reflected in the basic requirements 
115.9   assessment and rigorous profile of learning standards.  When 
115.10  fully implemented, the requirements for high school graduation 
115.11  in Minnesota must include both basic requirements and the 
115.12  required profile of learning.  The profile of learning must 
115.13  measure student performance using performance-based assessments 
115.14  compiled over time that integrate higher academic standards, 
115.15  higher order thinking skills, and application of knowledge from 
115.16  a variety of content areas.  The profile of learning shall 
115.17  include a broad range of academic experience and accomplishment 
115.18  necessary to achieve the goal of preparing students to function 
115.19  effectively as purposeful thinkers, effective communicators, 
115.20  self-directed learners, productive group participants, and 
115.21  responsible citizens.  The commissioner, with the assistance of 
115.22  the office of educational accountability, the clearinghouse of 
115.23  best educational practices, and the technical quality review 
115.24  advisory panel under section 121.1115, shall develop and 
115.25  disseminate to school districts a uniform form and method for 
115.26  districts to use in measuring and reporting student performance 
115.27  on the profile of learning at the school, district, and state 
115.28  levels beginning with the 1999-2000 school year and thereafter. 
115.29     (e) The state board shall periodically review and report on 
115.30  the assessment process and student achievement with the 
115.31  expectation of raising the standards and expanding high school 
115.32  graduation requirements. 
115.33     (f) The state board shall report in writing to the 
115.34  legislature annually by January 15 on its progress in developing 
115.35  and implementing the graduation requirements according to the 
115.36  requirements of this subdivision and section 123.97 until such 
116.1   time as all the graduation requirements are implemented. 
116.2      Sec. 7.  Minnesota Statutes 1997 Supplement, section 
116.3   121.1113, subdivision 1, is amended to read: 
116.4      Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
116.5   with advice from experts with appropriate technical 
116.6   qualifications and experience and stakeholders, shall include in 
116.7   the comprehensive assessment system, for each grade level to be 
116.8   tested, a single statewide norm-referenced or 
116.9   criterion-referenced test, or a combination of a norm-referenced 
116.10  and a criterion-referenced test, which shall be highly 
116.11  correlated with the state's graduation standards and 
116.12  administered annually to all students in the third, fifth, and 
116.13  eighth grades.  The commissioner shall establish one or more 
116.14  months during which schools shall administer the tests to 
116.15  students each school year.  The Minnesota basic skills tests in 
116.16  reading and mathematics shall fulfill students' eighth grade 
116.17  testing requirements.  School districts shall continue to 
116.18  administer official state basic skills tests in reading and 
116.19  mathematics between one and three times per year to a student 
116.20  until the student receives a passing score on those state tests, 
116.21  thereby fulfilling the student's eighth grade testing 
116.22  requirements.  Other testing options do not fulfill the 
116.23  student's eighth grade testing requirements for a passing state 
116.24  notation.  
116.25     (b) In addition, at the secondary level, districts shall 
116.26  assess student performance in all required learning areas and 
116.27  selected required standards within each area of the profiles of 
116.28  learning.  The testing instruments and testing process shall be 
116.29  determined by the commissioner.  The results shall be aggregated 
116.30  at the site and district level.  The testing shall be 
116.31  administered beginning in the 1999-2000 school year and 
116.32  thereafter. 
116.33     (c) The comprehensive assessment system shall include an 
116.34  evaluation of school site and school district performance levels 
116.35  during the 1997-1998 school year and thereafter using an 
116.36  established performance baseline developed from students' test 
117.1   scores under this section that records, at a minimum, students' 
117.2   unweighted mean test scores in each tested subject, a second 
117.3   performance baseline that reports, at a minimum, the same 
117.4   unweighted mean test scores of only those students enrolled in 
117.5   the school by January 1 of the previous school year, and a third 
117.6   performance baseline that reports the same unweighted test 
117.7   scores of all students except those students receiving limited 
117.8   English proficiency instruction.  The evaluation also shall 
117.9   record separately, in proximity to the performance baselines, 
117.10  the percentages of students who are eligible to receive a free 
117.11  or reduced price school meal, demonstrate limited English 
117.12  proficiency, or are eligible to receive special education 
117.13  services. 
117.14     (d) In addition to the testing and reporting requirements 
117.15  under paragraphs (a), (b), and (c), the commissioner, in 
117.16  consultation with the state board of education, shall include 
117.17  the following components in the statewide educational 
117.18  accountability and public reporting system: 
117.19     (1) uniform statewide testing of all third, fifth, eighth, 
117.20  and post-eighth grade students with exemptions, only with parent 
117.21  or guardian approval, from the testing requirement only for 
117.22  those very few students for whom the student's individual 
117.23  education plan team under section 120.17, subdivision 2, 
117.24  determines that the student is incapable of taking a statewide 
117.25  test, or a limited English proficiency student under section 
117.26  126.262, subdivision 2, if the student has been in the United 
117.27  States for fewer than 12 months and for whom special language 
117.28  barriers exist, such as the student's native language does not 
117.29  have a written form or the district does not have access to 
117.30  appropriate interpreter services for the student's native 
117.31  language; 
117.32     (2) educational indicators that can be aggregated and 
117.33  compared across school districts and across time on a statewide 
117.34  basis; 
117.35     (3) students' scores on the American College Test; 
117.36     (4) participation in the National Assessment of Educational 
118.1   Progress so that the state can benchmark its performance against 
118.2   the nation and other states, and, where possible, against other 
118.3   countries, and contribute to the national effort to monitor 
118.4   achievement; and 
118.5      (5) basic skills and advanced competencies connecting 
118.6   teaching and learning to high academic standards, assessment, 
118.7   and transitions to citizenship and employment. 
118.8      (e) Districts must report exemptions under paragraph (d), 
118.9   clause (1), to the commissioner consistent with a format 
118.10  provided by the commissioner. 
118.11     Sec. 8.  Minnesota Statutes 1996, section 121.1115, is 
118.12  amended by adding a subdivision to read: 
118.13     Subd. 1b.  [EDUCATIONAL ACCOUNTABILITY.] (a) In realizing 
118.14  its purpose under Laws 1997, First Special Session chapter 4, 
118.15  article 5, section 28, subdivision 2, the office of educational 
118.16  accountability shall advise the education committees of the 
118.17  legislature at least on a biennial basis, on the degree to which 
118.18  the statewide educational accountability and reporting system 
118.19  includes a comprehensive, performance-based assessment framework 
118.20  that makes schools accountable for students achieving the goals 
118.21  described in the state's high school graduation rule.  The 
118.22  office shall consider whether the statewide system of 
118.23  educational accountability provides useful comparative and 
118.24  contextual data on students, schools, districts, and the state, 
118.25  and whether it includes: 
118.26     (1) public reporting on the condition of the educational 
118.27  system using multiple indicators that are essential to 
118.28  describing and understanding the needs of children and youth and 
118.29  apply to all students; 
118.30     (2) a core set of educational indicators that are 
118.31  comparable and capable of being aggregated across school 
118.32  districts and across time on a statewide basis; 
118.33     (3) public reporting on the condition of the educational 
118.34  system that supports the direction of state educational policy; 
118.35     (4) a public reporting system that is flexible and permits 
118.36  the adding, modifying, and deleting of measures as policies and 
119.1   circumstances change; 
119.2      (5) a public reporting system that aligns conceptually and 
119.3   in practice with the information needs of local school districts 
119.4   and contains measures that local communities and schools can 
119.5   influence; 
119.6      (6) reports of performance information that ensure all 
119.7   students' privacy and confidentiality; 
119.8      (7) student performance indicators that contain clearly 
119.9   articulated standards of student performance and have broad 
119.10  community support; 
119.11     (8) reports of educational performance that reflect current 
119.12  results and trends over time; 
119.13     (9) a reporting system that reduces and consolidates the 
119.14  existing reporting burden on school districts by better using 
119.15  existing information and building on current data reporting 
119.16  systems at the state and district levels; and 
119.17     (10) a reporting system that is managed in a nonpartisan 
119.18  and highly competent manner to ensure the public's use and 
119.19  confidence and minimizes the reporting burden on school 
119.20  districts.  To the extent the statewide educational 
119.21  accountability and reporting system does not include a 
119.22  comprehensive, performance-based assessment framework that makes 
119.23  schools accountable for students achieving the goals described 
119.24  in the state's high school graduation rule, or does not provide 
119.25  useful comparative and contextual data on students, schools, 
119.26  districts, and the state, the office shall recommend to the 
119.27  legislature ways to improve the accountability and reporting 
119.28  system. 
119.29     (b) When the office reviews the statewide educational 
119.30  accountability and reporting system, it shall also: 
119.31     (1) consider the objectivity and neutrality of the state's 
119.32  educational accountability system; 
119.33     (2) develop strong relationships with other policy actors 
119.34  and with leaders outside government; and 
119.35     (3) consider the impact of a high stakes testing program on 
119.36  school curriculum and student learning. 
120.1      (c) A technical quality review advisory panel is 
120.2   established to assist the office of educational accountability 
120.3   in clearly articulating the criteria for judging the statewide 
120.4   education accountability and reporting system.  Among other 
120.5   things, the criteria shall measure the extent to which the 
120.6   system: 
120.7      (1) creates intended and unintended consequences; 
120.8      (2) is fairly administered; 
120.9      (3) evaluates the desired and appropriate complex 
120.10  intellectual processes; 
120.11     (4) is relevant and meaningful to teachers, students, and 
120.12  parents; 
120.13     (5) evaluates skills that are transferable; 
120.14     (6) is cost-efficient; and 
120.15     (7) is comprehensive in its coverage of content. 
120.16     Panel members shall include psychometricians and other 
120.17  experts in the field of student assessment, an elementary school 
120.18  teacher employed in a state public school, a secondary school 
120.19  teacher employed in a state public school, a curriculum and 
120.20  instruction director employed in a state public school, and a 
120.21  local public school administrator.  Panel members are appointed 
120.22  by and serve at the pleasure of the speaker of the house, the 
120.23  house minority leader, the majority leader of the senate, and 
120.24  the senate minority leader.  Panel members shall receive 
120.25  compensation according to section 15.059, subdivision 3. 
120.26     (d) The office of educational accountability shall report 
120.27  at least biennially by November 1 preceding the first year of 
120.28  the state's biennial legislative session to the education 
120.29  committees of the legislature on the status of the statewide 
120.30  system of educational accountability. 
120.31     Sec. 9.  Minnesota Statutes 1996, section 121.1115, is 
120.32  amended by adding a subdivision to read: 
120.33     Subd. 1c.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES; 
120.34  DIRECTOR.] (a) To provide practical, effective assistance to 
120.35  schools with academically at-risk students, a clearinghouse of 
120.36  best educational practices is established to make available to 
121.1   interested school districts human and informational resources 
121.2   for improving student performance.  The clearinghouse shall: 
121.3      (1) conduct research and collect information on the best 
121.4   educational practices affecting a school's management, 
121.5   operation, financing, personnel, and instruction; 
121.6      (2) train quality intervention teams composed of highly 
121.7   qualified educators to assist a school's staff in working to 
121.8   improve the educational performance of academically at-risk 
121.9   students by addressing a school's management, operation, 
121.10  financing, personnel, and instruction practices; 
121.11     (3) develop and make available to interested school 
121.12  districts a model for an independent educational audit that 
121.13  evaluates a school's performance strengths and weaknesses and 
121.14  makes specific recommendations for reinforcing performance 
121.15  strengths and improving performance weaknesses cited in the 
121.16  audit; 
121.17     (4) using the comprehensive, performance-based assessment 
121.18  framework under subdivision 1b, paragraph (a), and with the 
121.19  assistance of the office of educational accountability, develop 
121.20  student and school performance indicators schools may use to 
121.21  reliably measure school improvement over time; and 
121.22     (5) provide staff development opportunities to assist 
121.23  teachers and other educators in integrating educational reform 
121.24  measures into a school's best practices. 
121.25  The clearinghouse shall assist school districts under this 
121.26  subdivision at district request. 
121.27     (b) The office of educational accountability, in 
121.28  consultation with organizations representing the state's 
121.29  kindergarten through grade 12 public school teachers, shall 
121.30  appoint a licensed kindergarten through grade 12 teacher as 
121.31  director of the clearinghouse.  The director shall receive a 
121.32  one-year sabbatical leave to serve as clearinghouse director and 
121.33  may receive additional one-year sabbatical leaves for this 
121.34  purpose. 
121.35     Sec. 10.  Minnesota Statutes 1996, section 125.191, is 
121.36  amended to read: 
122.1      125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 
122.2      Notwithstanding section 125.03, subdivision 1, a school 
122.3   district may employ as a head varsity coach of an 
122.4   interscholastic sport at its secondary school a person who does 
122.5   not have a license as head varsity coach of interscholastic 
122.6   sports and who does not have a bachelor's degree if: 
122.7      (1) in the judgment of the school board, the person has the 
122.8   knowledge and experience necessary to coach the sport; 
122.9      (2) ~~the position has been posted as a vacancy within the~~ 
122.10  ~~present teaching staff for a period of 30 days and no licensed~~ 
122.11  ~~coaches have applied for the position;~~ 
122.12     ~~(3) the person~~ can verify completion of six quarter 
122.13  credits, or the equivalent, or 60 clock hours of instruction in 
122.14  first aid and the care and prevention of athletic injuries; and 
122.15     ~~(4) the person~~ (3) can verify completion of a coaching 
122.16  methods or theory course. 
122.17     Notwithstanding section 125.121, a person employed as a 
122.18  head varsity coach under this section has an annual contract as 
122.19  a coach that the school board may or may not renew as the board 
122.20  sees fit~~, after annually posting the position as required in~~ 
122.21  ~~clause (2) and no licensed coach has applied for the position~~. 
122.22     Sec. 11.  [126.238] [ACCELERATED INSTRUCTION FOR HIGH 
122.23  SCORING STUDENTS.] 
122.24     Every district shall provide accelerated instruction to all 
122.25  enrolled elementary and secondary students who score three 
122.26  standard deviations above the norm on a standardized achievement 
122.27  test.  Each high scoring student shall have a written 
122.28  accelerated learning plan developed by an accelerated learning 
122.29  plan team that includes the student's teachers, parents, and 
122.30  school counselor and may include other qualified educators and 
122.31  the student if the student is a secondary school student.  The 
122.32  plan shall state the educational outcomes the student will work 
122.33  to achieve, indicating the curricular content of the educational 
122.34  outcomes and the instructional strategies to be used in 
122.35  providing curricula.  Cost to the school district may be among 
122.36  the factors the team considers in choosing how to provide the 
123.1   accelerated instruction contained in the student's plan.  The 
123.2   school district shall make the final decision about the contents 
123.3   of a plan.  Plan contents shall be consistent with and enhance 
123.4   the requirements of the state's results-oriented high school 
123.5   graduation rule.  The accelerated learning plan of each 
123.6   secondary student shall provide for a transition from secondary 
123.7   school to post-secondary education, employment, or community 
123.8   service.  The district shall evaluate a student's success in 
123.9   achieving the educational outcomes stated in the accelerated 
123.10  learning plan and the contents of the plan at least once per 
123.11  school year.  School districts with a small number of high 
123.12  scoring students may cooperate with other districts in providing 
123.13  the students with sufficient opportunities for accelerated 
123.14  instruction as stated in the student's accelerated learning plan.
123.15     Sec. 12.  Minnesota Statutes 1996, section 260.015, 
123.16  subdivision 19, is amended to read: 
123.17     Subd. 19.  [HABITUAL TRUANT.] "Habitual truant" means a 
123.18  child under the age of 16 years who is absent from attendance at 
123.19  school without lawful excuse for seven school days if the child 
123.20  is in elementary school or for one or more class periods on 
123.21  seven school days if the child is in middle school, junior high 
123.22  school, or high school, or a child who is 16 or 17 years of age 
123.23  who is absent from attendance at school without lawful excuse 
123.24  for one or more class periods on seven school days and who has 
123.25  not lawfully withdrawn from school under section 120.101, 
123.26  subdivision 5d.  
123.27     Sec. 13.  Minnesota Statutes 1996, section 260.132, 
123.28  subdivision 4, is amended to read: 
123.29     Subd. 4.  [TRUANT.] When a peace officer or probation 
123.30  officer has probable cause to believe that a child is ~~currently~~ 
123.31  ~~under age 16~~ subject to compulsory instruction requirements 
123.32  under section 120.101, subdivisions 5 and 5d, and is absent from 
123.33  school without lawful excuse, the officer may transport the 
123.34  child to the child's home and deliver the child to the custody 
123.35  of the child's parent or guardian, transport the child to the 
123.36  child's school of enrollment and deliver the child to the 
124.1   custody of a school superintendent or teacher or transport the 
124.2   child to a truancy service center under section 260A.04, 
124.3   subdivision 3. 
124.4      Sec. 14.  Laws 1997, First Special Session chapter 4, 
124.5   article 5, section 24, subdivision 4, is amended to read: 
124.6      Subd. 4.  [GRANT AWARDS.] A school district or any group of 
124.7   districts may receive a grant in the amount of $25 per pupil per 
124.8   year.  ~~The grant recipient must match one local dollar for every~~ 
124.9   ~~state dollar received.  The local match may include in kind~~ 
124.10  ~~contributions.~~  In awarding grants, the commissioner shall 
124.11  consider which students will benefit most from these programs. 
124.12  No grant recipient shall use the grant award to supplant 
124.13  existing funding for gifted and talented programs. 
124.14     Sec. 15.  Laws 1997, First Special Session chapter 4, 
124.15  article 5, section 28, subdivision 4, is amended to read: 
124.16     Subd. 4.  [ADVANCED PLACEMENT AND INTERNATIONAL 
124.17  BACCALAUREATE PROGRAMS.] For the state advanced placement and 
124.18  international baccalaureate programs: 
124.19       $1,875,000     .....     1998 
124.20       $1,875,000     .....     1999 
124.21     Notwithstanding Minnesota Statutes, section 126.239, 
124.22  subdivisions 1 and 2, $200,000 each year is for teachers to 
124.23  attend subject matter summer training programs and follow-up 
124.24  support workshops approved by the advanced placement or 
124.25  international baccalaureate programs.  The amount of the subsidy 
124.26  for each teacher attending an advanced placement or 
124.27  international baccalaureate summer training program or workshop 
124.28  shall be the same.  The commissioner shall determine the payment 
124.29  process and the amount of the subsidy. 
124.30     Notwithstanding Minnesota Statutes, section 126.239, 
124.31  subdivision 3, in each year to the extent of available 
124.32  appropriations, the commissioner shall pay all examination fees 
124.33  for all students sitting for an advanced placement examination, 
124.34  international baccalaureate examination, or both.  If this 
124.35  amount is not adequate, the commissioner may pay less than the 
124.36  full examination fee. 
125.1      $300,000 each year is for student scholarships.  A student 
125.2   scholarship shall be awarded to a student scoring three or 
125.3   better on one or more advanced placement examinations or a four 
125.4   or better on one or more international baccalaureate 
125.5   examinations.  The amount of each scholarship shall range from 
125.6   ~~$150~~ $75 to $500 based on the student's score on the exams.  The 
125.7   scholarships shall be awarded only to students who are enrolled 
125.8   in a Minnesota public or private college or university.  The 
125.9   total amount of each scholarship shall be paid directly to the 
125.10  student's designated college or university and must be used by 
125.11  the student only for tuition, required fees, and books in 
125.12  nonsectarian courses or programs.  The higher education services 
125.13  office, in consultation with the commissioner, shall determine 
125.14  the payment process, the amount of the scholarships, and 
125.15  provisions for unused scholarships.  
125.16     In order to be eligible to receive advanced placement or 
125.17  international baccalaureate scholarships on behalf of the 
125.18  qualifying students, the college or university must have an 
125.19  advanced placement, international baccalaureate, or both, credit 
125.20  and placement policy for the scholarship recipients.  In 
125.21  addition, each college or university must certify these policies 
125.22  to the department each year.  The department must provide each 
125.23  secondary school in the state with a copy of the post-secondary 
125.24  advanced placement and international baccalaureate policies each 
125.25  year. 
125.26     $375,000 each year is for teacher stipends.  A teacher who 
125.27  teaches an advanced placement or international baccalaureate 
125.28  course shall receive a stipend for each student in that 
125.29  teacher's course who receives a three or better on the advanced 
125.30  placement or a four or better on the international baccalaureate 
125.31  examination that covers the subject matter of the course.  The 
125.32  commissioner shall determine the payment process and the amount 
125.33  of the teacher stipend ranging from $25 to $50 for each student 
125.34  receiving a qualifying score. 
125.35     A stipend awarded to a teacher under this subdivision shall 
125.36  not be a mandatory subject of bargaining under Minnesota 
126.1   Statutes, chapter 179A, or any other law and shall not be a term 
126.2   or condition of employment.  The amount of any award shall be 
126.3   final and shall not be subject to review by an arbitrator 
126.4   through any grievance or other process or by a court through any 
126.5   appeal process.  
126.6      Any balance in the first year does not cancel but is 
126.7   available in the second year. 
126.8      Sec. 16.  Laws 1997, First Special Session chapter 4, 
126.9   article 5, section 28, subdivision 9, is amended to read: 
126.10     Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
126.11  grants to collaborative urban educator programs that prepare and 
126.12  license people of color to teach: 
126.13       $895,000     .....     1998
126.14       $150,000     .....     1999 
126.15     This appropriation is available until June 30, 1999. 
126.16     Sec. 17.  [RULE REVISION.] 
126.17     The state board of education shall amend or repeal those 
126.18  portions of Minnesota Rules, parts 3501.0010 to 3501.0180, 
126.19  necessary to conform with the basic skills testing requirements 
126.20  in reading and mathematics under Minnesota Statutes, section 
126.21  121.1113, subdivision 1. 
126.22     Sec. 18.  [EXEMPTION.] 
126.23     Any contract entered into during the 1996-1997 school year 
126.24  authorizing a charter school under Minnesota Statutes, section 
126.25  120.064, subdivision 5, is exempt from the amended requirements 
126.26  of Minnesota Statutes, section 120.064, subdivision 11, only as 
126.27  long as the sponsor of the charter school finds and can 
126.28  adequately demonstrate to the state board of education that the 
126.29  charter school continues without interruption to satisfactorily 
126.30  meet all its performance outcomes.  If either the charter school 
126.31  sponsor or the state board of education determines that the 
126.32  charter school under this section is not satisfactorily meeting 
126.33  one or more of its performance outcomes, the amended 
126.34  requirements of Minnesota Statutes, section 120.064, subdivision 
126.35  11, apply to that charter school. 
126.36     Sec. 19.  [REPORT ON COOPERATIVE SPONSORSHIPS.] 
127.1      A school district shall immediately transmit to the 
127.2   commissioner of children, families, and learning information 
127.3   about each decision to deny a home school a cooperative 
127.4   sponsorship under state high school league rules or to otherwise 
127.5   deny a home school student an opportunity to participate in the 
127.6   district's extracurricular activities.  The school district 
127.7   shall transmit the information in the form and manner the 
127.8   commissioner requires.  The commissioner shall prepare an 
127.9   interim written report by February 1, 1999, and a final written 
127.10  report by February 1, 2000, for the speaker of the house, the 
127.11  senate majority leader, and the chairs of the house and senate 
127.12  education committees detailing by school district the instances 
127.13  when a school district denies a home school a cooperative 
127.14  sponsorship or a home school student an opportunity to 
127.15  participate in an extracurricular activity and the district 
127.16  rationale for the denial. 
127.17     Sec. 20.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 
127.18  PROGRAM.] 
127.19     (a) Consistent with the terms for receiving program grants 
127.20  under Laws 1995, First Special Session chapter 3, article 7, 
127.21  section 4, as amended by Laws 1996, chapter 412, article 7, 
127.22  section 13, independent school district No. 241, Albert Lea, is 
127.23  eligible to receive additional grant funding for its year-round 
127.24  school/extended week or day pilot program. 
127.25     (b) The commissioner of children, families, and learning, 
127.26  with the assistance of independent school district No. 241, 
127.27  Albert Lea, shall evaluate the efficacy of the district's 
127.28  program and submit a report to the education committees of the 
127.29  legislature by February 1, 2001.  The commissioner shall include 
127.30  in the report sufficient information to permit other school 
127.31  districts to readily replicate the program if the commissioner 
127.32  determines that the program is successful.  
127.33     Sec. 21.  [COUNSELOR ASSESSMENT.] 
127.34     The department of children, families, and learning, in 
127.35  consultation with affected groups, shall conduct an assessment 
127.36  of the need for expanding the number of counselors in school 
128.1   districts.  As part of the assessment, the department shall 
128.2   consider recommended ratios and the costs of meeting these, 
128.3   alternative strategies for collaboration to provide counseling 
128.4   services to pupils especially in small districts, mechanisms to 
128.5   strengthen collaboration between school districts and local 
128.6   colleges and universities in providing information and 
128.7   experience to pupils, and suggestions for meeting the needs of 
128.8   pupils for counseling that is focused on academic and career 
128.9   needs and planning.  The department shall report its findings 
128.10  and recommendations to the education committees of the house and 
128.11  senate as part of its 2000-2001 biennial budget request. 
128.12     Sec. 22.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] 
128.13     (a) A demonstration athletic grant program through special 
128.14  school district No. 1, Minneapolis, and the Minneapolis park and 
128.15  recreation board is established for children ages seven to 14 at 
128.16  Waite Park school.  The goal of the demonstration program is to 
128.17  develop a neighborhood-based athletic program that teaches 
128.18  sports fundamentals to students that will lead to their 
128.19  participation in high school level athletics.  The program shall 
128.20  be year-round and shall require both in-school and after-school 
128.21  participation by students.  A student who satisfactorily 
128.22  completes the program curriculum shall receive secondary course 
128.23  credit and the credit shall count towards the student's 
128.24  graduation requirements consistent with Minnesota Statutes, 
128.25  section 126.83. 
128.26     (b) The program shall be established at Waite Park school 
128.27  in Minneapolis where the school facility and park and recreation 
128.28  facility are jointly located and where the school district has 
128.29  established a neighborhood-based school for enrollment 
128.30  purposes.  The school district and the park and recreation board 
128.31  shall recruit at-risk students and those students who have not 
128.32  participated in current after-school park programs to 
128.33  participate in the demonstration project. 
128.34     (c) The program funds shall be used for recreational 
128.35  professionals at the park board to coordinate the program and 
128.36  licensed teachers employed in the district; internships for 
129.1   students at the University of Minnesota, Augsburg College, or 
129.2   other post-secondary institutions to work in the program; master 
129.3   coaches to train coaches; transportation costs; facilities' 
129.4   costs; and assistance to neighborhood park athletic councils.  
129.5      (d) The school district and the park board shall report to 
129.6   the commissioner of children, families, and learning on the 
129.7   outcome of the program.  The commissioner shall report to the 
129.8   education committees of the legislature on the program and the 
129.9   advisability of creating a statewide program by March 15, 1999. 
129.10     Sec. 23.  [RESIDENTIAL ACADEMY PROGRAM.] 
129.11     Subdivision 1.  [PUBLIC GRANT RECIPIENT.] The commissioner 
129.12  of children, families, and learning may award grants to a public 
129.13  organization for start-up costs for residential academies for 
129.14  students in grades 4 through 12 who express a desire to attend a 
129.15  residential academy that provides a secure and nurturing 
129.16  learning environment, have demonstrated an interest in learning 
129.17  and a potential for academic achievement, and who: 
129.18     (1) perform or are at risk of performing below the academic 
129.19  performance level for pupils of the same age; 
129.20     (2) are at least one year behind in satisfactorily 
129.21  completing coursework or obtaining credits for graduation; or 
129.22     (3) have experienced homelessness or an unstable home 
129.23  environment. 
129.24     Subd. 2.  [ORGANIZATIONAL STRUCTURE.] The public grant 
129.25  recipient may collaborate with other organizations in effecting 
129.26  this subdivision. 
129.27     (a) Enrollment is voluntary.  A student may be referred to 
129.28  an academy by a parent or guardian, the student's county of 
129.29  residence, the student's school, health care provider, or the 
129.30  judicial system.  
129.31     (b) A residential academy must provide an education program 
129.32  for the resident students to: 
129.33     (1) increase school attendance; 
129.34     (2) increase academic achievement; 
129.35     (3) enable secondary students to earn a high school 
129.36  diploma; and 
130.1      (4) improve for secondary students the transition to 
130.2   post-secondary education or the transition from school to work. 
130.3      The academy may collaborate with a school district or 
130.4   charter school to provide the education program. 
130.5      (c) To the extent allowed in law, education and social 
130.6   services funding shall follow each child from the child's school 
130.7   district or county of residence to the academy. 
130.8      (d) The cost of residential care for a student may be 
130.9   covered under a sliding fee program based on student need.  
130.10     (e) An academy may receive any gift, grant, bequest, or 
130.11  devise.  
130.12     (f) The commissioner of children, families, and learning 
130.13  shall prescribe the form and manner of applications.  The 
130.14  commissioner shall consider the academy's location, the 
130.15  composition of the academy's governance structure and board, 
130.16  collaborative effort among various organizations, family and 
130.17  community involvement, provision of social services, quality of 
130.18  education program, after-school enrichment, and provision of 
130.19  instruction throughout the entire year in awarding grants.  The 
130.20  commissioner shall evaluate the residential academy program and 
130.21  report to the education committees of the legislature by 
130.22  February 15, 2000. 
130.23     Sec. 24.  [SARTELL; SCHOOL YEAR START DATE.] 
130.24     Notwithstanding Minnesota Statutes, section 126.12, 
130.25  subdivision 1, and Laws 1997, First Special Session chapter 4, 
130.26  article 7, section 49, subdivision 1, independent school 
130.27  district No. 748, Sartell, may begin the 1998-1999 school year 
130.28  before Labor Day only by the number of days necessary to 
130.29  accommodate the district building construction project. 
130.30     Sec. 25.  [HOLDINGFORD; SCHOOL YEAR START DATE.] 
130.31     Notwithstanding Minnesota Statutes, section 126.12, 
130.32  subdivision 1, and Laws 1997, First Special Session chapter 4, 
130.33  article 7, section 49, subdivision 1, independent school 
130.34  district No. 738, Holdingford, may begin the 1998-1999 school 
130.35  year on the Monday prior to Labor Day. 
130.36     Sec. 26.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
131.1   LEARNING.] 
131.2      The commissioner of children, families, and learning shall 
131.3   designate a staff member as a resource person for gifted and 
131.4   talented programs to provide assistance to parents and school 
131.5   districts.  The commissioner shall pay all costs for that staff 
131.6   member out of existing department appropriations. 
131.7      Sec. 27.  [RESIDENCY REQUIREMENT.] 
131.8      The downtown Minneapolis magnet school that is part of the 
131.9   western metropolitan education program may enroll in the magnet 
131.10  school only those otherwise qualified students who reside within 
131.11  one of the nine participating school districts.  No student 
131.12  residing in any other district and participating in a program 
131.13  under Minnesota Statutes, section 120.062, may enroll in the 
131.14  magnet school. 
131.15     Sec. 28.  [TASK FORCE ON KINDERGARTEN THROUGH GRADE 12 
131.16  EDUCATION GOVERNANCE STRUCTURE.] 
131.17     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
131.18  kindergarten through grade 12 education governance structure is 
131.19  established to examine alternatives for governing the state's 
131.20  kindergarten through grade 12 education system. 
131.21     Subd. 2.  [MEMBERSHIP.] The task force shall consist of 15 
131.22  members.  The department of children, families, and learning 
131.23  shall provide staff support for task force activities.  Task 
131.24  force members, appointed by the panel under subdivision 3, must 
131.25  include five people directly involved in public education, five 
131.26  people who represent state or local governments, and five people 
131.27  who are public members, including parents, business leaders, 
131.28  labor leaders, and others who have demonstrated a commitment to 
131.29  excellence in Minnesota public schools.  Membership terms and 
131.30  removal are governed by Minnesota Statutes, section 15.059. 
131.31     Subd. 3.  [PANEL.] A panel, composed of one person 
131.32  appointed by the governor, one person appointed by the speaker 
131.33  of the house of representatives, and one person appointed by the 
131.34  subcommittee on committees of the senate committee on rules and 
131.35  administration, shall appoint the members of the task force.  
131.36  The panel shall consider gender and geographical and racial 
132.1   diversity in making the appointments.  The commissioner of 
132.2   children, families, and learning shall convene the first meeting 
132.3   of the panel.  The panel must make the first appointments to the 
132.4   task force by July 15, 1998. 
132.5      Subd. 4.  [TASK FORCE ACTIVITIES.] The task force shall 
132.6   examine alternatives for governing the state's kindergarten 
132.7   through grade 12 education system by considering at least the 
132.8   following: 
132.9      (1) the roles of the legislature, governor's office, state 
132.10  board of education, and the commissioner of children, families, 
132.11  and learning in making statewide policy and administrative 
132.12  decisions affecting kindergarten through grade 12 education; 
132.13     (2) the extent to which the current structure of regional 
132.14  and local government units, including service units, education 
132.15  districts, school districts, city councils, and county boards, 
132.16  promotes or inhibits intergovernmental collaboration; 
132.17     (3) how to facilitate broad-based collaboration between 
132.18  schools and state and county-based social service agencies 
132.19  serving the same or similar populations of children and 
132.20  families; and 
132.21     (4) how to best accommodate changing educational needs and 
132.22  demands. 
132.23     Subd. 5.  [REPORT.] The task force shall submit a report of 
132.24  its findings and recommendations to the chairs of the education 
132.25  committees in the house and the senate by February 15, 1999. 
132.26     Subd. 6.  [EXPIRATION.] The task force expires on June 1, 
132.27  1999. 
132.28     Sec. 29.  [RECOMMENDATIONS ON A CENTRAL DEPOSITORY OF 
132.29  EMPLOYMENT DATA.] 
132.30     Subdivision 1.  [WORKING GROUP.] The commissioner of 
132.31  children, families, and learning shall convene a working group 
132.32  to recommend data management policies and appropriate organizing 
132.33  structures and operational practices for a central depository of 
132.34  data containing licensing and employment information about 
132.35  elementary and secondary school teachers employed in Minnesota 
132.36  school districts.  The purpose of the depository is to help 
133.1   protect K-12 students and their teachers.  The working group 
133.2   must include one representative from each of the following 
133.3   organizations:  the state board of teaching; the teacher 
133.4   licensing division in the department of children, families, and 
133.5   learning; the Minnesota school boards association; the Minnesota 
133.6   education association; the Minnesota federation of teachers; the 
133.7   public information policy analysis division of the state 
133.8   department of administration; the association of school 
133.9   personnel administrators; the Minnesota association of school 
133.10  business officials; and any other groups the commissioner 
133.11  determines are relevant.  By February 1, 1999, the commissioner 
133.12  shall submit the group's recommendations concerning establishing 
133.13  and operating a central depository of teachers' employment data, 
133.14  including recommended statutory changes, to the education 
133.15  committees of the legislature.  The commissioner shall convene 
133.16  the working group beginning June 15, 1998. 
133.17     Subd. 2.  [ISSUES TO RESOLVE.] In recommending how to 
133.18  establish and operate a central depository of teachers' 
133.19  employment data, the working group must address at least the 
133.20  following: 
133.21     (1) whether the state board of teaching or other state 
133.22  entity is the most appropriate depository of employment-related 
133.23  data; 
133.24     (2) what kinds of state and local employment-related data 
133.25  on elementary and secondary school teachers should be gathered 
133.26  and stored; 
133.27     (3) what mechanisms should be developed for reporting state 
133.28  and school district data on teachers to ensure that stored data 
133.29  are timely and accurate; 
133.30     (4) what policies should be adopted to ensure the integrity 
133.31  and privacy of the data; 
133.32     (5) what policies should govern the access of individuals 
133.33  and organizations to the data, including the release of 
133.34  personnel data to prospective employers; 
133.35     (6) what should be the extent of liability and immunity 
133.36  from liability for individuals and organizations that release 
134.1   data; and 
134.2      (7) other related matters affecting the collecting, 
134.3   accessing, or releasing of data and the need to protect students 
134.4   and teachers. 
134.5      Sec. 30.  [APPROPRIATION; BOARD OF REGENTS.] 
134.6      $500,000 is appropriated in fiscal year 1999 from the 
134.7   general fund to the board of regents of the University of 
134.8   Minnesota for the purposes of Minnesota Statutes, section 
134.9   121.1115, subdivisions 1b and 1c. 
134.10     Sec. 31.  [APPROPRIATIONS.] 
134.11     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
134.12  LEARNING.] The sums indicated in this section are appropriated 
134.13  from the general fund to the department of children, families, 
134.14  and learning for the fiscal years designated. 
134.15     Subd. 2.  [REMOTE SITE CONSULTING SERVICES; MINNESOTA 
134.16  LEARNING RESOURCE CENTER.] To expand attention and reading 
134.17  readiness programs and providing remote site consulting services:
134.18       $  150,000     .....     1999 
134.19     This appropriation is available to the New Visions program 
134.20  for two purposes:  a grant for remote-site consulting services 
134.21  for replicating charter school No. 4011, New Visions program at 
134.22  two other school sites; and neurophysiological models, including 
134.23  Boost-Up, EEG neurofeedback, developmental optometry, and 
134.24  auditory stimulation for assessing, treating, and teaching 
134.25  children with learning problems to improve their attention 
134.26  skills, classroom behavior, and academic performance, to acquire 
134.27  the space and technology needed to establish and equip the 
134.28  Minnesota learning resource center. 
134.29     Subd. 3.  [NONTRADITIONAL CAREERS FOR GIRLS AND WOMEN.] (a) 
134.30  For grants to organizations for programs that encourage and 
134.31  assist girls and women to enter nontraditional careers in the 
134.32  trades and in manual and technical occupations: 
134.33       $   20,000     .....     1999 
134.34     The appropriation is available until June 30, 1999.  
134.35     (b) To be eligible for a grant under this section, a 
134.36  program must include outreach to girls and women through public 
135.1   and private elementary, junior high, and high schools, 
135.2   appropriate community organizations that work directly with 
135.3   girls and women, or existing state and county employment and 
135.4   training programs.  The outreach must consist of general 
135.5   information concerning opportunities for women in the trades, 
135.6   manual, and technical occupations, including specific fields 
135.7   where worker shortage exists, and specific information about 
135.8   training programs offered.  The outreach must also include 
135.9   mentoring and hands-on opportunities for girls to learn about 
135.10  nontraditional careers.  The outreach may include printed or 
135.11  recorded information, presentations to girls and women, or 
135.12  ongoing contact with the appropriate staff. 
135.13     Subd. 4.  [STUDY ON ENCOURAGING SCHOOL DISTRICTS TO ACCEPT 
135.14  ACADEMICALLY AT-RISK STUDENTS UNDER OPEN ENROLLMENT.] For 
135.15  developing recommendations on how the state's open enrollment 
135.16  program under Minnesota Statutes, section 120.062, can be 
135.17  amended to encourage school districts that limit open enrollment 
135.18  of nonresident students to give priority to accepting at-risk 
135.19  nonresident students: 
135.20       $   20,000     .....     1999 
135.21     The commissioner shall include in the recommendations, 
135.22  among other things:  a definition of at-risk student; an 
135.23  incentive for encouraging school districts to accept nonresident 
135.24  at-risk students, including accepting a minimum number of such 
135.25  students from a single attendance area; a mechanism for 
135.26  transporting the students to the nonresident school district; a 
135.27  process for providing timely, useful, and accessible information 
135.28  to families of at-risk students; a method for ensuring that 
135.29  nonresident at-risk students receive ongoing student counseling 
135.30  services while attending the nonresident school district; and a 
135.31  funding structure to accommodate the recommendations.  The 
135.32  commissioner shall present the written recommendations by 
135.33  February 1, 1999, to the education committees of the legislature.
135.34     Subd. 5.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 
135.35  PROGRAM.] For independent school district No. 241, Albert Lea, 
135.36  for an additional year-round school/extended week or day pilot 
136.1   program grant under section 20: 
136.2        $   60,000     .....     1999 
136.3      The appropriation is available until June 30, 2000. 
136.4      Subd. 6.  [UNLIMITED POSSIBILITIES PLAN.] For a grant to a 
136.5   nonprofit agency representing the private alternative schools: 
136.6        $  100,000     .....     1999 
136.7      The purpose of the grant is to support the Unlimited 
136.8   Possibilities Plan to assist student transition from secondary 
136.9   school to college or gainful employment including mentoring 
136.10  programs, post-secondary training, career exploration, and 
136.11  placement services.  The grant recipient must match state funds 
136.12  with an equal amount of funds raised from nonpublic sources.  
136.13     This appropriation does not cancel but is available until 
136.14  June 30, 2000. 
136.15     Subd. 7.  [MINNESOTA COUNCIL ON ECONOMIC EDUCATION.] For a 
136.16  grant to the Minnesota Council on Economic Education to provide 
136.17  staff development to teachers for implementing of the state 
136.18  graduation standards in learning areas relating to economic 
136.19  education: 
136.20       $  200,000     .....     1999 
136.21     The commissioner and the council must develop the expected 
136.22  results of the staff development, the eligible participants, the 
136.23  evaluation plan, and the amount of direct and in-kind 
136.24  contributions of the council. 
136.25     Subd. 8.  [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a 
136.26  grant to special school district No. 1, Minneapolis, and the 
136.27  Minneapolis park and recreation board to establish a youth 
136.28  athletic demonstration program under section 22: 
136.29       $  100,000     .....     1999 
136.30     Subd. 9.  [MODEL DISTANCE LEARNING GRANT; LAKE OF THE 
136.31  WOODS.] For a grant to independent school district No. 390, Lake 
136.32  of the Woods, for developing a model distance learning program: 
136.33       $  250,000     .....     1999 
136.34     The model program must address students' curriculum needs 
136.35  for vocational programs, advanced collegiate level courses, 
136.36  gifted and talented programming, programming for students with 
137.1   disabilities, and other areas of programming made more difficult 
137.2   because of the school district's geographic isolation. 
137.3      Subd. 10.  [SCHOOL RESTRUCTURING GRANT.] For a school 
137.4   restructuring grant to a nonstate organization to develop 
137.5   systemic site decision-making models and implement systemic site 
137.6   decision-making in school districts: 
137.7        $  500,000     .....     1999 
137.8      Sec. 32.  [REPEALER.] 
137.9      (a) Minnesota Statutes 1996, section 126.12, is repealed. 
137.10     (b) Minnesota Statutes 1997 Supplement, section 135A.081, 
137.11  is repealed. 
137.12     Sec. 33.  [EFFECTIVE DATES.] 
137.13     (a) Consistent with the requirements in Minnesota Statutes, 
137.14  section 123.34, subdivision 9, sections 1 and 2 are effective 
137.15  for superintendents' contracts negotiated to apply beginning the 
137.16  first day of instruction for the 1998-1999 school year and 
137.17  thereafter. 
137.18     (b) Sections 3, 4, 5, 7, 11, 12, 13, 14, and 18 are 
137.19  effective for the 1998-1999 school year and thereafter. 
137.20     (c) Sections 19, 20, 22, 23, 28, and 32, paragraph (b), are 
137.21  effective the day following final enactment. 
137.22     (d) Section 32, paragraph (a), is effective for the 
137.23  2000-2001 school year and thereafter. 
137.24                             ARTICLE 6
137.25                      EDUCATION POLICY ISSUES
137.26     Section 1.  Minnesota Statutes 1997 Supplement, section 
137.27  124.2601, subdivision 3, is amended to read: 
137.28     Subd. 3.  [~~REVENUE~~ AID.] Adult basic education ~~revenue~~ aid 
137.29  for each approved program equals 65 percent of the general 
137.30  education formula allowance times the number of full-time 
137.31  equivalent students in its adult basic education program. 
137.32     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
137.33  124.2601, subdivision 6, is amended to read: 
137.34     Subd. 6.  [AID GUARANTEE.] ~~(a) For fiscal year 1994, any~~ 
137.35  ~~adult basic education program that receives less state aid under~~ 
137.36  ~~subdivisions 3 and 7 than from the aid formula for fiscal year~~ 
138.1   ~~1992 shall receive the amount of aid it received in fiscal year~~ 
138.2   ~~1992.~~ 
138.3      ~~(b) For 1995, 1996, and 1997 fiscal years, an adult basic~~ 
138.4   ~~education program that receives aid shall receive at least the~~ 
138.5   ~~amount of aid it received in fiscal year 1992 under subdivisions~~ 
138.6   ~~3 and 7, plus aid equal to the amount of revenue that would have~~ 
138.7   ~~been raised for taxes payable in 1994 under Minnesota Statutes~~ 
138.8   ~~1992, section 124.2601, subdivision 4, minus the amount raised~~ 
138.9   ~~under subdivision 4.~~ 
138.10     ~~(c)~~ For fiscal year 1998, any adult basic education program 
138.11  that receives less state aid than in fiscal year 1997 shall 
138.12  receive additional aid equal to 80 percent of the difference 
138.13  between its 1997 aid and the amount of aid under Minnesota 
138.14  Statutes 1997 Supplement, section 124.2601, subdivision 5.  For 
138.15  fiscal year 1999 ~~and later~~, additional aid under this 
138.16  paragraph ~~must be reduced by 20 percent each year~~ equals 80 
138.17  percent of the additional aid computed for fiscal year 1998.  
138.18  For fiscal year 2000, the additional aid under this paragraph 
138.19  equals 60 percent of the additional aid computed for fiscal year 
138.20  1998.  For fiscal year 2001, the additional aid under this 
138.21  paragraph equals 40 percent of the additional aid computed for 
138.22  fiscal year 1998.  For fiscal year 2002, the additional aid 
138.23  under this paragraph equals 20 percent of the additional aid 
138.24  computed for fiscal year 1998.  For fiscal year 2003 and later, 
138.25  the additional aid under this paragraph equals zero. 
138.26     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
138.27  124.2711, subdivision 2a, is amended to read: 
138.28     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
138.29  obtain early childhood family education revenue, a district may 
138.30  levy an amount equal to the tax rate of ~~.653~~ .45 percent times 
138.31  the adjusted tax capacity of the district for the year preceding 
138.32  the year the levy is certified.  If the amount of the early 
138.33  childhood family education levy would exceed the early childhood 
138.34  family education revenue, the early childhood family education 
138.35  levy shall equal the early childhood family education revenue. 
138.36     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
139.1   124.2713, subdivision 6, is amended to read: 
139.2      Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
139.3   education revenue, a district may levy the amount raised by a 
139.4   tax rate of ~~1.09~~ .41 percent times the adjusted net tax capacity 
139.5   of the district.  If the amount of the community education levy 
139.6   would exceed the community education revenue, the community 
139.7   education levy shall be determined according to subdivision 6a. 
139.8      Sec. 5.  Minnesota Statutes 1996, section 124.2713, 
139.9   subdivision 6a, is amended to read: 
139.10     Subd. 6a.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
139.11  FORMULA.] If the amount of the community education levy for a 
139.12  district exceeds the district's community education revenue, the 
139.13  amount of the community education levy is limited to ~~the sum of:~~ 
139.14     ~~(1)~~ the district's community education revenue according to 
139.15  subdivision 1~~; plus~~. 
139.16     ~~(2) the amount of the aid reduction for the same fiscal~~ 
139.17  ~~year according to subdivision 6b.~~  
139.18     ~~For purposes of statutory cross-reference, a levy made~~ 
139.19  ~~according to this subdivision is the levy made according to~~ 
139.20  ~~subdivision 6.~~  
139.21     Sec. 6.  Minnesota Statutes 1996, section 124.646, 
139.22  subdivision 4, is amended to read: 
139.23     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
139.24  described in this subdivision must be recorded as provided in 
139.25  this subdivision. 
139.26     (b) In each school district, the expenses for a school food 
139.27  service program for pupils must be attributed to a school food 
139.28  service fund.  Under a food service program, the school food 
139.29  service may prepare or serve milk, meals, or snacks in 
139.30  connection with school or community service activities. 
139.31     (c) Revenues and expenditures for food service activities 
139.32  must be recorded in the food service fund.  The costs of 
139.33  processing applications, accounting for meals, preparing and 
139.34  serving food, providing kitchen custodial services, and other 
139.35  expenses involving the preparing of meals or the kitchen section 
139.36  of the lunchroom may be charged to the food service fund or to 
140.1   the general fund of the district.  The costs of lunchroom 
140.2   supervision, lunchroom custodial services, lunchroom utilities, 
140.3   and other administrative costs of the food service program must 
140.4   be charged to the general fund. 
140.5      That portion of superintendent and fiscal manager costs 
140.6   that can be documented as attributable to the food service 
140.7   program may be charged to the food service fund provided that 
140.8   the school district does not employ or contract with a food 
140.9   service director or other individual who manages the food 
140.10  service program, or food service management company.  If the 
140.11  cost of the superintendent or fiscal manager is charged to the 
140.12  food service fund, the charge must be at a wage rate not to 
140.13  exceed the statewide average for food service directors as 
140.14  determined by the department of children, families, and learning.
140.15     (d) Capital expenditures for the purchase of food service 
140.16  equipment must be made from the ~~capital~~ general fund and not the 
140.17  food service fund, unless two conditions apply: 
140.18     (1) the unreserved balance in the food service fund at the 
140.19  end of the last fiscal year is greater than the cost of the 
140.20  equipment to be purchased; and 
140.21     (2) the department of children, families, and learning has 
140.22  approved the purchase of the equipment. 
140.23     (e) If the two conditions set out in paragraph (d) apply, 
140.24  the equipment may be purchased from the food service fund. 
140.25     (f) If a deficit in the food service fund exists at the end 
140.26  of a fiscal year, and the deficit is not eliminated by revenues 
140.27  from food service operations in the next fiscal year, then the 
140.28  deficit must be eliminated by a permanent fund transfer from the 
140.29  general fund at the end of that second fiscal year.  However, if 
140.30  a district contracts with a food service management company 
140.31  during the period in which the deficit has accrued, the deficit 
140.32  must be eliminated by a payment from the food service management 
140.33  company. 
140.34     (g) Notwithstanding paragraph (f), a district may incur a 
140.35  deficit in the food service fund for up to three years without 
140.36  making the permanent transfer if the district submits to the 
141.1   commissioner by January 1 of the second fiscal year a plan for 
141.2   eliminating that deficit at the end of the third fiscal year. 
141.3      (h) If a surplus in the food service fund exists at the end 
141.4   of a fiscal year for three successive years, a district may 
141.5   recode for that fiscal year the costs of lunchroom supervision, 
141.6   lunchroom custodial services, lunchroom utilities, and other 
141.7   administrative costs of the food service program charged to the 
141.8   general fund according to paragraph (c) and charge those costs 
141.9   to the food service fund in a total amount not to exceed the 
141.10  amount of surplus in the food service fund. 
141.11     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
141.12  124.6475, is amended to read: 
141.13     124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 
141.14     States funds are available to compensate 
141.15  department-approved summer food program sponsors for reduced 
141.16  federal operating reimbursement rates under Public Law Number 
141.17  104-193, the federal summer food service program.  A sponsor is 
141.18  eligible for summer food service replacement aid equal to the 
141.19  sum of the following amounts: 
141.20     (1) for breakfast service, ~~subtract the current year~~ 
141.21  ~~maximum reimbursement rate from the 1996 maximum reimbursement~~ 
141.22  ~~rate and multiply the result by the number of breakfasts the~~ 
141.23  ~~district served~~ up to four cents per breakfast served by the 
141.24  sponsor during the current ~~school~~ program year; 
141.25     (2) for lunch or supper service, ~~subtract the current year~~ 
141.26  ~~maximum reimbursement rate from the 1996 maximum reimbursement~~ 
141.27  ~~rate and multiply the result by the number of lunches and~~ 
141.28  ~~suppers the district served~~ up to 14 cents per lunch or supper 
141.29  served by the sponsor during the current ~~school~~ program year; 
141.30  and 
141.31     (3) for supplement service, ~~subtract the current year~~ 
141.32  ~~maximum reimbursement rate from the 1996 maximum reimbursement~~ 
141.33  ~~rate and multiply the result by the number of~~ up to ten cents 
141.34  per supplement ~~meals~~ served by the ~~district served~~ sponsor 
141.35  during the current ~~school~~ program year. 
141.36     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
142.1   124.648, subdivision 3, is amended to read: 
142.2      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
142.3   (a) The commissioner shall: 
142.4      (1) encourage all districts to participate in the school 
142.5   milk program for kindergartners; 
142.6      (2) prepare program guidelines, not subject to chapter 14 
142.7   until July 1, 1998, which will effectively and efficiently 
142.8   distribute appropriated and donated money to participating 
142.9   districts; and 
142.10     (3) seek donations and matching funds from appropriate 
142.11  private and public sources. 
142.12     (b) Program guidelines may provide for disbursement to 
142.13  districts through a mechanism of prepayments or by reimbursement 
142.14  for approved program expenses. 
142.15     ~~(c) It is suggested that the benefits of the school milk~~ 
142.16  ~~program may reach the largest number of kindergarten students if~~ 
142.17  ~~districts are allowed to submit annual bids stating the~~ 
142.18  ~~per-serving level of support that would be acceptable to the~~ 
142.19  ~~district for their participation in the program.  The~~ 
142.20  ~~commissioner would review all bids received and approve bids in~~ 
142.21  ~~sufficient number and value to maximize the provision of milk to~~ 
142.22  ~~kindergarten students consistent with available funds.~~ 
142.23     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
142.24  124.916, subdivision 2, is amended to read: 
142.25     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] ~~For taxes~~ 
142.26  ~~payable in 1996, 1997, 1998, and 1999 only~~ Each year, a school 
142.27  district may levy an amount up to the amount the district is 
142.28  required by the collective bargaining agreement in effect on 
142.29  March 30, 1992, to pay for health insurance or unreimbursed 
142.30  medical expenses for licensed and nonlicensed employees who have 
142.31  terminated services in the employing district and withdrawn from 
142.32  active teaching service or other active service, as applicable, 
142.33  before July 1, 1992.  The total amount of the levy each year may 
142.34  not exceed $300,000.  
142.35     Sec. 10.  Minnesota Statutes 1996, section 124A.292, 
142.36  subdivision 3, is amended to read: 
143.1      Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
143.2   equals ~~its revenue times the lesser of one or the ratio of:~~ 
143.3      ~~(1) the quotient derived by dividing the district's~~ 
143.4   ~~adjusted net tax capacity for the year before the year the levy~~ 
143.5   ~~is certified by the district's actual pupil units for the school~~ 
143.6   ~~year to which the levy is attributable, to~~ 
143.7      ~~(2) the equalizing factor for the school year to which the~~ 
143.8   ~~levy is attributable~~ the number of teachers at the site times 
143.9   $8.15. 
143.10     Sec. 11.  Laws 1997, First Special Session chapter 4, 
143.11  article 6, section 20, subdivision 4, is amended to read: 
143.12     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
143.13  school lunch aid according to Minnesota Statutes, section 
143.14  124.646, and Code of Federal Regulations, title 7, section 
143.15  210.17, and for food storage and transportation costs for United 
143.16  States Department of Agriculture donated commodities; and for a 
143.17  temporary transfer to the commodity processing revolving fund to 
143.18  provide cash flow to permit schools and other recipients of 
143.19  donated commodities to take advantage of volume processing rates 
143.20  and for school milk aid according to Minnesota Statutes, section 
143.21  124.648:  
143.22       $7,254,000     .....     1998 
143.23       ~~$7,254,000~~ $7,770,000    .....     1999 
143.24     (b) Any unexpended balance remaining from the 
143.25  appropriations in this subdivision shall be prorated among 
143.26  participating schools based on the number of free, reduced, and 
143.27  fully paid federally reimbursable student lunches served during 
143.28  that school year.  
143.29     (c) If the appropriation amount attributable to either year 
143.30  is insufficient, the rate of payment for each fully paid student 
143.31  lunch shall be reduced and the aid for that year shall be 
143.32  prorated among participating schools so as not to exceed the 
143.33  total authorized appropriation for that year.  
143.34     (d) Any temporary transfer processed in accordance with 
143.35  this subdivision to the commodity processing fund will be 
143.36  returned by June 30 in each year so that school lunch aid and 
144.1   food storage costs can be fully paid as scheduled.  
144.2      (e) Not more than $800,000 of the amount appropriated each 
144.3   year may be used for school milk aid. 
144.4      (f) The commissioner may reduce other future aid and grant 
144.5   payments due to school districts and other organizations for the 
144.6   costs of processing and storage of commodities used by the 
144.7   district or organization. 
144.8      Sec. 12.  [SCHOOL CROSSING GUARDS LEVY; HASTINGS.] 
144.9      In addition to other levies, independent school district No.
144.10  200, Hastings, may levy up to $55,000 for school crossing guards 
144.11  each year.  
144.12     Sec. 13.  [FUND TRANSFERS; REVENUE USES.] 
144.13     Subdivision 1.  [USE OF BOND PROCEEDS; ST. 
144.14  CLOUD.] Notwithstanding Minnesota Statutes, section 475.58, 
144.15  subdivision 4, independent school district No. 742, St. Cloud, 
144.16  upon passage of a written resolution specifying the amount and 
144.17  purpose of the expenditure, may expend up to $800,000 from its 
144.18  building construction fund to purchase a building and site to be 
144.19  used for community education purposes. 
144.20     Subd. 2.  [RESERVED ACCOUNT TRANSFER; 
144.21  LYND.] Notwithstanding Minnesota Statutes, sections 121.912 and 
144.22  121.9121, on June 30, 1998, independent school district No. 415, 
144.23  Lynd, may permanently transfer up to $100,000 from reserve 
144.24  accounts in the general fund to the unreserved general fund.  
144.25  The transfer may be made from the reemployment account and the 
144.26  bus purchase account.  Transfers from the reemployment account 
144.27  may be made without making a levy reduction. 
144.28     Subd. 3.  [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 
144.29  Notwithstanding Minnesota Statutes, section 124.83, subdivision 
144.30  6, independent school district No. 621, Mounds View, is 
144.31  authorized to use up to $300,000 of its health and safety 
144.32  revenue to replace portable classrooms with new construction of 
144.33  classrooms. 
144.34     Subd. 4.  [HEALTH AND SAFETY; ADA-BORUP.] Notwithstanding 
144.35  Minnesota Statutes, section 124.83, subdivision 6, independent 
144.36  school district No. 2854, Ada-Borup, may use up to $90,000 of 
145.1   its health and safety revenue for capital improvements, 
145.2   equipment, or furnishings for new facilities. 
145.3      Subd. 5.  [HEALTH AND SAFETY; EVELETH-GILBERT.] 
145.4   Notwithstanding any law to the contrary, independent school 
145.5   district No. 2154, Eveleth-Gilbert, may include in its health 
145.6   and safety program the amounts necessary to make health and 
145.7   safety improvements to an ice arena located within the district 
145.8   boundaries.  The total amount of revenue approved for this 
145.9   purpose shall not exceed $300,000. 
145.10     Sec. 14.  [OSSEO LEVY.] 
145.11     For taxes payable in 1999 only, independent school district 
145.12  No. 279, Osseo, may levy a tax in an amount not to exceed 
145.13  $800,000.  The proceeds of this levy must be used to provide 
145.14  instructional services for at-risk children. 
145.15     Sec. 15.  [APPROPRIATIONS.] 
145.16     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
145.17  LEARNING.] The sums indicated in this section are appropriated 
145.18  from the general fund to the department of children, families, 
145.19  and learning for the fiscal years designated. 
145.20     Subd. 2.  [HISTORY EDUCATION.] (a) For grants to develop 
145.21  and sustain historical educational programming and curriculum 
145.22  designed primarily for elementary and secondary school students: 
145.23       $  180,000     .....     1999 
145.24     (b) Of the amount appropriated in paragraph (a), $90,000 is 
145.25  for a grant to Murphy's landing living history village for its 
145.26  educational programs including education tours, outreach 
145.27  programs, and immersion camps and $90,000 is for a grant to 
145.28  Ironworld for its historical education programs. 
145.29     (c) This appropriation shall be included in the education 
145.30  base budget estimates for the 2000-2001 biennium. 
145.31     Subd. 3.  [MEDIA SPECIALIST.] For a media specialist for 
145.32  independent school district No. 707, Nett Lake: 
145.33       $   34,000     .....     1999
145.34     Sec. 16.  [REPEALER.] 
145.35     (a) Minnesota Statutes 1997 Supplement, section 124.2601, 
145.36  subdivision 4, is repealed.  
146.1      (b) Minnesota Statutes 1997 Supplement, section 124.2601, 
146.2   subdivision 5, is repealed effective July 1, 1999.  
146.3      (c) Minnesota Statutes 1996, section 124.2713, subdivision 
146.4   6b, is repealed effective for taxes payable in 1999 and revenue 
146.5   for fiscal year 2000.  
146.6      (d) Minnesota Statutes 1996, section 124A.292, subdivisions 
146.7   2 and 4, are repealed effective for revenue for fiscal year 2000.
146.8      (e) Laws 1997, chapter 231, article 1, section 17, is 
146.9   repealed effective the day following final enactment. 
146.10     (f) Minnesota Statutes 1996, section 124.647, is repealed. 
146.11     Sec. 17.  [EFFECTIVE DATE.] 
146.12     (a) Sections 11 and 13 are effective the day following 
146.13  final enactment. 
146.14     (b) Sections 2, 3, 4, 6 to 10, and 14 are effective July 1, 
146.15  1998. 
146.16     (c) Section 1 is effective July 1, 1999. 
146.17     (d) Section 5 is effective for revenue for fiscal year 2000.
146.18                             ARTICLE 7 
146.19                             LIBRARIES 
146.20     Section 1.  Laws 1997, First Special Session chapter 4, 
146.21  article 8, section 4, subdivision 3, is amended to read: 
146.22     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
146.23  subdivision 2 shall provide for a library board of ~~five~~ seven 
146.24  members as follows:  two members appointed by the school board 
146.25  of independent school district No. 319, one member appointed by 
146.26  each town board located within independent school district No. 
146.27  319 boundaries, one member appointed by the council of the city 
146.28  of Nashwauk, and one member appointed by the Itasca county board 
146.29  to represent the unorganized towns within the school district 
146.30  territory. 
146.31     Sec. 2.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
146.32  SCHOOL MEDIA CENTERS.] 
146.33     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
146.34  children, families, and learning shall establish a program to 
146.35  provide statewide licenses to commercial electronic databases of 
146.36  periodicals, encyclopedias, and associated reference materials 
147.1   for school media centers and public libraries.  The 
147.2   commissioner, in consultation with Minitex and in cooperation 
147.3   with the Library Planning Task Force, shall solicit proposals 
147.4   for access licenses to commercial vendors of the databases.  
147.5   Responses to those proposals shall be evaluated by staff of the 
147.6   office of library development and services in the department of 
147.7   children, families, and learning, Minitex staff, and a 
147.8   representative panel of school media specialists and public 
147.9   librarians. 
147.10     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
147.11  shall be made available to a school or school district that is a 
147.12  member of a multicounty, multitype library system as defined in 
147.13  Minnesota Statutes, section 134.001, subdivision 6, or a public 
147.14  library as defined in Minnesota Statutes, section 134.001, 
147.15  subdivision 2, that is a member of a multicounty, multitype 
147.16  library system.  With appropriate authentication any user of an 
147.17  eligible library may have access to the databases from a remote 
147.18  site. 
147.19     Sec. 3.  [APPROPRIATION; DEPARTMENT OF CHILDREN, FAMILIES, 
147.20  AND LEARNING.] 
147.21     Subdivision 1.  [APPROPRIATIONS.] The sums indicated in 
147.22  this section are appropriated from the general fund to the 
147.23  department of children, families, and learning for the fiscal 
147.24  years designated. 
147.25     Subd. 2.  [REGIONAL LIBRARY SYSTEMS.] For regional library 
147.26  systems: 
147.27         $250,000     .....     1999 
147.28  The money must be divided equally among the 12 regional public 
147.29  library systems established under Minnesota Statutes, section 
147.30  134.20, for use in providing library services. 
147.31     Subd. 3.  [LIBRARY FOR THE BLIND; APPROPRIATION.] For the 
147.32  purchase and installation of online catalog software for the 
147.33  Minnesota library for the blind and physically handicapped: 
147.34          $60,000     .....     1999 
147.35     Subd. 4.  [DATABASE ACCESS PROGRAM.] For establishing a 
147.36  database access program for public libraries and school media 
148.1   centers under section 2: 
148.2        $1,200,000     .....     1999 
148.3      Subd. 5.  [METRONET.] To the metropolitan multitype library 
148.4   consortium for copying and making available to the 11 greater 
148.5   Minnesota regional public library systems and the St. Paul and 
148.6   Minneapolis libraries, through the Minnesota Center for the 
148.7   Book, a series of video cassette tapes of interviews with 
148.8   Minnesota authors, for the production and programming costs of 
148.9   the northern lights cable program on which the Minnesota authors 
148.10  are interviewed, and for operating costs the consortium incurs 
148.11  as a result of this provision: 
148.12          $40,000     .....     1999 
148.13     Libraries that receive a copy of the series shall make the 
148.14  video cassettes readily available to teachers and other members 
148.15  of the public interested in learning about the work and lives of 
148.16  Minnesota authors. 
148.17                             ARTICLE 8
148.18                           STATE AGENCIES
148.19     Section 1.  Laws 1997, First Special Session chapter 4, 
148.20  article 10, section 3, subdivision 2, is amended to read: 
148.21     Subd. 2.  [DEPARTMENT.] For the department of children, 
148.22  families, and learning: 
148.23       $24,360,000    .....      1998
148.24       ~~$23,978,000~~ $24,178,000    .....      1999
148.25     (a) Any balance in the first year does not cancel but is 
148.26  available in the second year. 
148.27     (b) $21,000 each year is from the trunk highway fund. 
148.28     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
148.29  academic excellence foundation. 
148.30     Up to $50,000 each year is contingent upon the match of $1 
148.31  in the previous year from private sources consisting of either 
148.32  direct monetary contributions or in-kind contributions of 
148.33  related goods or services, for each $1 of the appropriation.  
148.34  The commissioner of children, families, and learning must 
148.35  certify receipt of the money or documentation for the private 
148.36  matching funds or in-kind contributions.  The unencumbered 
149.1   balance from the amount actually appropriated from the 
149.2   contingent amount in 1998 does not cancel but is available in 
149.3   1999.  The amount carried forward must not be used to establish 
149.4   a larger annual base appropriation for later fiscal years. 
149.5      (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
149.6   board of education. 
149.7      (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
149.8   of teaching. 
149.9      (f) The expenditures of federal grants and aids as shown in 
149.10  the biennial budget document and its supplements are approved 
149.11  and appropriated and shall be spent as indicated. 
149.12     (g) The department of children, families, and learning 
149.13  shall develop a performance report on the quality of its 
149.14  programs and services.  The report must be consistent with the 
149.15  process specified in Minnesota Statutes, sections 15.90 to 
149.16  15.92.  The goals, objectives, and measures of this report must 
149.17  be developed in cooperation with the chairs of the finance 
149.18  divisions of the education committees of the house of 
149.19  representatives and senate, the department of finance, and the 
149.20  office of legislative auditor.  The report must include data to 
149.21  indicate the progress of the department in meeting its goals and 
149.22  objectives. 
149.23     (h) At least $50,000 is to ensure compliance with state and 
149.24  federal laws prohibiting discrimination because of race, 
149.25  religion, or sex.  The department shall use the appropriation to 
149.26  provide state-level leadership on equal education opportunities 
149.27  which promote elimination of discriminatory practices in the 
149.28  areas of race, religion, and sex in public schools and public 
149.29  educational agencies under its general supervision and on 
149.30  activities including, at least, compliance monitoring and 
149.31  voluntary compliance when local school district deficiencies are 
149.32  found. 
149.33     (i) Notwithstanding Minnesota Statutes, section 15.53, 
149.34  subdivision 2, the commissioner of children, families, and 
149.35  learning may contract with a school district for a period no 
149.36  longer than five consecutive years to work in the development or 
150.1   implementation of the graduation rule.  The commissioner may 
150.2   contract for services and expertise as necessary.  The contracts 
150.3   are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
150.4      (j) In preparing the department budget for fiscal years 
150.5   2000-2001, the department shall shift all administrative funding 
150.6   from aids appropriations into the appropriation for the 
150.7   department. 
150.8      (k) Reallocations of excesses under Minnesota Statutes, 
150.9   section 124.14, subdivision 7, from appropriations within this 
150.10  act shall only be made to deficiencies in programs with 
150.11  appropriations contained within this act. 
150.12     (l) $850,000 each year is for litigation costs and may only 
150.13  be used for those purposes.  These appropriations are one-time 
150.14  only. 
150.15     (m) $200,000 in fiscal year 1999 is for mediation expenses 
150.16  associated with school funding lawsuits filed against the state. 
150.17     (n) Collaborative efforts between the department of 
150.18  children, families, and learning and the office of technology, 
150.19  as specified in Minnesota Statutes, section 237A.015, include: 
150.20     (1) advising the commissioner of children, families, and 
150.21  learning on new and emerging technologies, potential business 
150.22  partnerships, and technical standards; 
150.23     (2) assisting the commissioner of children, families, and 
150.24  learning in the sharing of data between state agencies relative 
150.25  to children's programs; and 
150.26     (3) as requested by the commissioner of children, families, 
150.27  and learning, assisting in collaborative efforts for joint 
150.28  prekindergarten through grade 12 and higher education projects, 
150.29  including the learning network. 
150.30  The commissioner of children, families, and learning shall have 
150.31  final approval for prekindergarten through grade 12 programs and 
150.32  lifelong learning programs, grant awards, and funding decisions. 
150.33     Sec. 2.  Laws 1997, First Special Session chapter 4, 
150.34  article 10, section 4, is amended to read: 
150.35     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
150.36  CENTER FOR ARTS EDUCATION.] 
151.1      The sums indicated in this section are appropriated from 
151.2   the general fund to the center for arts education for the fiscal 
151.3   years designated: 
151.4       ~~$5,541,000~~ $5,559,000     .....     1998
151.5       ~~$6,054,000~~ $6,120,000     .....     1999
151.6      Of the fiscal year 1998 appropriation, $154,000 is to fund 
151.7   artist and arts organization participation in the education 
151.8   residency and education technology projects, $75,000 is for 
151.9   school support for the residency project, and $121,000 is for 
151.10  further development of the partners:  arts and school for 
151.11  students (PASS) program, including pilots.  Of the fiscal year 
151.12  1999 appropriation, $154,000 is to fund artist and arts 
151.13  organizations participation in the education residency project, 
151.14  $75,000 is for school support for the residency project, ~~and~~ 
151.15  $121,000 is to fund the PASS program, including additional 
151.16  pilots, and $30,000 is to enhance the implementation of the 
151.17  graduation rule and profile of learning for students attending 
151.18  the center for arts education.  The guidelines for the education 
151.19  residency project and the pass program shall be developed and 
151.20  defined by the center for arts education in cooperation with the 
151.21  Minnesota arts board.  The Minnesota arts board shall 
151.22  participate in the review and allocation process.  The center 
151.23  for arts education and the Minnesota arts board shall cooperate 
151.24  to fund these projects. 
151.25     Any balance in the first year does not cancel but is 
151.26  available in the second year. 
151.27     Sec. 3.  Laws 1997, First Special Session chapter 4, 
151.28  article 10, section 5, is amended to read: 
151.29     Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
151.30     The sums indicated in this section are appropriated from 
151.31  the general fund to the department of children, families, and 
151.32  learning for the Faribault academies for the fiscal years 
151.33  designated:  
151.34       ~~$8,910,000~~ $8,949,000     .....     1998
151.35       ~~$8,908,000~~ $8,986,000     .....     1999 
151.36     Any balance in the first year does not cancel but is 
152.1   available in the second year. 
152.2      In the next biennial budget, the academies must assess 
152.3   their progress in meeting the established performance measures 
152.4   for the Faribault academies and inform the legislature on the 
152.5   content of that assessment.  The information must include an 
152.6   assessment of its progress by consumers and employees. 
152.7      Sec. 4.  [EFFECTIVE DATE.] 
152.8      Sections 1 to 3 are effective the day following final 
152.9   enactment.