1.1                          A bill for an act 
  1.2             relating to education; permitting advertising on 
  1.3             school buses; adjusting pupil weightings; providing 
  1.4             employer-paid insurance benefits; appropriating money; 
  1.5             amending Minnesota Statutes 1996, sections 124.17, 
  1.6             subdivision 1; 124.2615, subdivision 2; and 124A.225, 
  1.7             subdivision 1; proposing coding for new law in 
  1.8             Minnesota Statutes, chapter 123. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [123.807] [ADVERTISING ON SCHOOL BUSES.] 
  1.11     Subdivision 1.  [AUTHORIZATION.] A district may transport 
  1.12  school children on a school bus that has advertising, if: 
  1.13     (1) the advertising attached to the school bus does not 
  1.14  interfere with bus identification under section 169.441; 
  1.15     (2) the bus with attached advertising meets the school bus 
  1.16  equipment standards under sections 169.4501 to 169.4504; and 
  1.17     (3) the school district has adopted an advertising policy 
  1.18  under subdivision 2. 
  1.19     Subd. 2.  [ADVERTISING POLICY.] Before transporting 
  1.20  students on a school bus with advertising, a school district 
  1.21  must adopt an advertising policy with guidelines and advertising 
  1.22  standards.  At a minimum, the policy must prohibit advertising 
  1.23  and advertising images that: 
  1.24     (1) solicit the sale of, or promote the use of, alcoholic 
  1.25  beverages and tobacco products; 
  1.26     (2) are discriminatory in nature or content; 
  1.27     (3) imply or declare an endorsement of the product or 
  2.1   service by the school district; 
  2.2      (4) contain obscene material; 
  2.3      (5) are false, misleading, or deceptive; or 
  2.4      (6) relate to an illegal activity or antisocial behavior. 
  2.5      Subd. 3.  [REVENUE USE.] Revenue received under this 
  2.6   section must be deposited into the general fund and used for 
  2.7   employment transition programs under sections 126B.03 and 
  2.8   126B.10 or for post-secondary education under sections 123.3513 
  2.9   and 123.3514. 
  2.10     Sec. 2.  Minnesota Statutes 1996, section 124.17, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  2.13  pupil in average daily membership shall be counted according to 
  2.14  this subdivision.  
  2.15     (a) A prekindergarten pupil with a disability who is 
  2.16  enrolled in a program approved by the commissioner and has an 
  2.17  individual education plan is counted as the ratio of the number 
  2.18  of hours of assessment and education service to 825 with a 
  2.19  minimum of 0.28, but not more than one. 
  2.20     (b) A prekindergarten pupil who is assessed but determined 
  2.21  not to be handicapped is counted as the ratio of the number of 
  2.22  hours of assessment service to 825.  
  2.23     (c) A kindergarten pupil with a disability who is enrolled 
  2.24  in a program approved by the commissioner is counted as the 
  2.25  ratio of the number of hours of assessment and education 
  2.26  services required in the fiscal year by the pupil's individual 
  2.27  education program plan to 875, but not more than one. 
  2.28     (d) A kindergarten pupil who is not included in paragraph 
  2.29  (c) is counted as .53 of a pupil unit for fiscal year years 1995 
  2.30  and thereafter through 1998, .54 for fiscal year 1999, .59 for 
  2.31  fiscal year 2000, and .65 for fiscal year 2001 and thereafter. 
  2.32     (e) A pupil who is in any of grades 1 to 6 is counted as 
  2.33  1.06 pupil units for fiscal year 1995 and thereafter.  A pupil 
  2.34  who is in grades 1 to 3 is counted as 1.09 pupil units in fiscal 
  2.35  year 1999, 1.13 pupil units in fiscal year 2000, and 1.17 pupil 
  2.36  units in fiscal year 2001 and thereafter. 
  3.1      (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
  3.2   is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
  3.3   fiscal year 1998 1999, a pupil who is in any of grades 7 to 
  3.4   grade 12 is counted as 1.25 1.10 pupil units.  For fiscal year 
  3.5   1999 and later years, a pupil who is in any of grades 7 to 12 is 
  3.6   counted as 1.2 pupil units 2000, a pupil who is in grade 12 is 
  3.7   counted as .9 pupil units.  For fiscal year 2001 and thereafter, 
  3.8   a pupil in grade 12 is counted as .5 pupil units. 
  3.9      (g) For fiscal year 1996 and fiscal year 1997, A pupil who 
  3.10  is in grades 7 through 11 or in the post-secondary enrollment 
  3.11  options program is counted as 1.3 pupil units.  For fiscal year 
  3.12  1998, a pupil who is in the post-secondary enrollment options 
  3.13  program is counted as 1.25 pupil units.  For fiscal year 1999 
  3.14  and later years, a pupil who is in the post-secondary enrollment 
  3.15  options program is counted as 1.2 pupil units. 
  3.16     (h) In fiscal year 1998, the pupil units used in computing 
  3.17  a district's general education revenue and referendum revenue 
  3.18  may not be reduced by more than two percent due to the reduction 
  3.19  in the secondary pupil weight from 1.3 as specified in 
  3.20  paragraphs (f) and (g).  In fiscal year 1999 and later years, 
  3.21  the pupil units used in computing a district's general education 
  3.22  revenue and referendum revenue may not be decreased by more than 
  3.23  four percent due to the reduction in the secondary weight from 
  3.24  1.3 as specified in paragraphs (f) and (g). 
  3.25     Sec. 3.  Minnesota Statutes 1996, section 124.2615, 
  3.26  subdivision 2, is amended to read: 
  3.27     Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
  3.28  receive learning readiness aid if the program plan as required 
  3.29  by subdivision 1 has been approved by the commissioner of 
  3.30  children, families, and learning.  The aid is equal to: 
  3.31     (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
  3.32  times the number of eligible four-year old children residing in 
  3.33  the district, as determined according to section 124.2711, 
  3.34  subdivision 2; plus 
  3.35     (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
  3.36  times the result of; 
  4.1      (3) the ratio of the number of pupils enrolled in the 
  4.2   school district from families eligible for the free or reduced 
  4.3   school lunch program to the total number of pupils enrolled in 
  4.4   the school district; times 
  4.5      (4) the number of children in clause (1). 
  4.6      For fiscal year 1994 and thereafter, A district shall 
  4.7   receive learning readiness aid equal to: 
  4.8      (1) the number of eligible four-year old children in the 
  4.9   district times the ratio of 50 percent of the total learning 
  4.10  readiness aid for that year to the total number of eligible 
  4.11  four-year old children reported to the commissioner for that 
  4.12  year; plus 
  4.13     (2) the number of participating eligible children times the 
  4.14  ratio of 15 percent of the total learning readiness aid for that 
  4.15  year to the total number of participating eligible children for 
  4.16  that year; plus 
  4.17     (3) the number of pupils enrolled in the school district 
  4.18  from families eligible for the free or reduced school lunch 
  4.19  program times the ratio of 35 percent of the total learning 
  4.20  readiness aid for that year to the total number of pupils in the 
  4.21  state from families eligible for the free or reduced school 
  4.22  lunch program. 
  4.23     Sec. 4.  Minnesota Statutes 1996, section 124A.225, 
  4.24  subdivision 1, is amended to read: 
  4.25     Subdivision 1.  [REVENUE.] Of a district's general 
  4.26  education revenue an amount equal to the sum of the number of 
  4.27  elementary fund balance pupils in average daily membership 
  4.28  defined in section 124.17, subdivision 1h 1f, and one-half of 
  4.29  the number of kindergarten fund balance pupils in average daily 
  4.30  membership as defined in section 124.17, subdivision 1h 1f, 
  4.31  times .06 for fiscal year 1995 and thereafter times the formula 
  4.32  allowance must be reserved according to this section.  Beginning 
  4.33  in fiscal year 1998, the reserved amount shall be increased to 
  4.34  reflect the weighting changes in section 2. 
  4.35     Sec. 5.  [EMPLOYER-PAID INSURANCE BENEFITS.] 
  4.36     Subdivision 1.  [DISTRICT EMPLOYEES.] A school district 
  5.1   must provide employer-paid hospital, medical, and dental 
  5.2   insurance benefits to a teacher as defined in Minnesota 
  5.3   Statutes, section 354.05, subdivision 2, or 354A.011, 
  5.4   subdivision 27, who: 
  5.5      (1) during the 1997-1998 school year, was primarily 
  5.6   assigned to teach any of grades 9 through 12 or was 
  5.7   substantially engaged in teaching grade 9, 10, 11, or 12 
  5.8   students; 
  5.9      (2) is eligible for employer-paid hospital, medical, and 
  5.10  dental insurance under the applicable collective bargaining 
  5.11  agreement or personnel plan in effect on May 14, 1998; 
  5.12     (3) has at least 25 years of combined service credit in any 
  5.13  Minnesota public pension plans governed by Minnesota Statutes, 
  5.14  section 356.30, subdivision 3; 
  5.15     (4) has at least as many months of service with the current 
  5.16  employer as the number of months younger than age 65 the person 
  5.17  is at the time of retirement; 
  5.18     (5) upon termination of active teaching service is 
  5.19  immediately eligible for a retirement annuity if the person is a 
  5.20  member of the teachers retirement association or a first class 
  5.21  city teacher retirement fund association; 
  5.22     (6) is at least 55 and is not yet 65 years of age; and 
  5.23     (7) terminates active teaching service and applies for a 
  5.24  retirement annuity on or after May 15, 1998, and before July 21, 
  5.25  1998. 
  5.26     Subd. 2.  [CONDITIONS; COVERAGE.] For the purposes of this 
  5.27  section, a person retires when the person terminates active 
  5.28  employment as a teacher and applies for retirement benefits.  
  5.29  The retired teacher is eligible for the single and dependent 
  5.30  coverages and school district payments to which the person was 
  5.31  entitled immediately before retirement, subject to any 
  5.32  subsequent changes in coverage and school district and employee 
  5.33  premium payments or deductibles through collective bargaining or 
  5.34  personnel plans, for employees in school district positions 
  5.35  equivalent to the position from which the teacher retired.  The 
  5.36  retired employee is not eligible for school district-paid life 
  6.1   insurance.  Eligibility ceases when the retired teacher attains 
  6.2   the age of 65, or when the teacher chooses not to receive the 
  6.3   retirement benefits for which the teacher has applied, or when 
  6.4   the employee is eligible for school district-paid health 
  6.5   insurance from a new employer.  Coverages must be coordinated 
  6.6   with relevant health insurance benefits provided through the 
  6.7   federally sponsored Medicare program.  
  6.8      Subd. 3.  [APPLICATION OF OTHER LAWS.] Unilateral 
  6.9   implementation of this section by a school district is not an 
  6.10  unfair labor practice for purposes of Minnesota Statutes, 
  6.11  chapter 179A.  The authority provided in this section for a 
  6.12  district to pay health insurance costs for certain retired 
  6.13  employees is not subject to the limits in Minnesota Statutes, 
  6.14  section 179A.20, subdivision 2a.  
  6.15     Subd. 4.  [LEVY.] A school district may levy the amount 
  6.16  necessary to make employer premium payments for hospital, 
  6.17  medical, or dental insurance for retired employees under this 
  6.18  section.  Notwithstanding Minnesota Statutes, section 121.904, 
  6.19  50 percent of the amount levied must be recognized as revenue 
  6.20  for the fiscal year in which the levy is certified.  This levy 
  6.21  must not be considered in computing the aid reduction under 
  6.22  Minnesota Statutes, section 124.155.  If a school district 
  6.23  levies according to this section, it may not also levy according 
  6.24  to Minnesota Statutes, section 122.531, subdivision 9, for 
  6.25  eligible employees. 
  6.26     Sec. 6.  [APPROPRIATION.] 
  6.27     $20,000,000 is appropriated in fiscal year 1999 from the 
  6.28  general fund to the commissioner of children, families, and 
  6.29  learning.  $10,000,000 of this amount is for learning readiness 
  6.30  programs under Minnesota Statutes, section 124.2615.  
  6.31  $10,000,000 of this amount is for the Head Start program under 
  6.32  Minnesota Statutes, section 268.912.  These amounts shall be 
  6.33  considered permanent adjustments to the base for these 
  6.34  programs.  When preparing the biennial budget for fiscal years 
  6.35  2000 and 2001, the commissioner shall increase the base amount 
  6.36  for each of these two programs by $10,000,000 in fiscal year 
  7.1   2000 and $20,000,000 in fiscal year 2001.