Key: (1) language to be deleted (2) new language
Laws of Minnesota 1991 CHAPTER 130-S.F.No. 417 An act relating to education; making noncontroversial clarifications and modifications to certain school district and department of education provisions; amending Minnesota Statutes 1990, sections 120.062, subdivisions 4 and 6; 120.0752, subdivision 2; 121.612, subdivisions 2 and 5; 122.23, subdivision 18; 123.932, subdivision 3; 124.14, subdivision 1; 124.155, subdivision 2; 124.195, subdivisions 2, 3, 3a, 10, and 11; 124.2139; 124.214, subdivisions 2 and 3; 124.244, subdivision 3; 124.83, subdivisions 1 and 5; 124A.036, subdivision 5; 124A.24; 124B.03, subdivision 2; 124C.03, subdivision 14; 124C.49; 125.12, subdivision 6b; 125.60, subdivision 3; 275.065, subdivision 6; 275.125, subdivisions 4, 11d, 18, and 20; 275.16; and 354.094, subdivision 1; and Laws 1991, chapter 2, article 2, section 2; repealing Minnesota Statutes 1990, sections 119.01; 119.02; 119.03; 119.04, subdivisions 1, 2, and 3; 119.05; 119.06; 119.07; 119.08; 119.09; 121.933, subdivision 2; 122.23, subdivision 17; 123.932, subdivision 4; 124A.02, subdivision 19; 124C.21; 275.125, subdivisions 1, 4a, and 8d; and 354.094, subdivisions 1a and 1b. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 1990, section 120.062, subdivision 4, is amended to read: Subd. 4. [PUPIL APPLICATION PROCEDURES.] In order that a pupil may attend a school or program in a nonresident district, the pupil's parent or guardian must submit an application to the nonresident district. Before submitting an application, the pupil and the pupil's parent or guardian must explore with a school guidance counselor, or other appropriate staff member employed by the district the pupil is currently attending, the pupil's academic or other reason for applying to enroll in a nonresident district. The pupil's application must identify the reason for enrolling in the nonresident district. The parent or guardian of a pupil must submit an application by January115 for initial enrollment beginning the following school year. The application shall be on a form provided by the department of education. A particular school or program may be requested by the parent. Once enrolled in a nonresident district, the pupil may remain enrolled and is not required to submit annual or periodic applications. To return to the resident district or to transfer to a different nonresident district, the parent or guardian of the pupil must provide notice to the resident district or apply to a different nonresident district by January115 for enrollment beginning the following school year. Sec. 2. Minnesota Statutes 1990, section 120.062, subdivision 6, is amended to read: Subd. 6. [NONRESIDENT DISTRICT PROCEDURES.] A district that does not exclude nonresident pupils, according to subdivision 3, shall notify the parent or guardian in writing by February115 whether the application has been accepted or rejected. If an application is rejected, the district must state in the notification the reason for rejection. The parent or guardian shall notify the nonresident district byFebruary 15March 1 whether the pupil intends to enroll in the nonresident district. Notice of intent to enroll in the nonresident district obligates the pupil to attend the nonresident district during the following school year, unless the school boards of the resident and the nonresident districts agree in writing to allow the pupil to transfer back to the resident district, or the pupil's parents or guardians change residence to another district. If a parent or guardian does not notify the nonresident district, the pupil may not enroll in that nonresident district during the following school year, unless the school boards of the resident and nonresident district agree otherwise. The nonresident district shall notify the resident district by March115 of the pupil's intent to enroll in the nonresident district. The same procedures apply to a pupil who applies to transfer from one participating nonresident district to another participating nonresident district. Sec. 3. Minnesota Statutes 1990, section 120.0752, subdivision 2, is amended to read: Subd. 2. The pupil's parent or guardian must receive the approval of the school board of the nonresident district and the school board of the resident district.The approval shall be ona form provided by the department of education. Thesuperintendent of the nonresident district shall forward a copyof this form to the department of education within ten days ofits approval. If the student withdraws from the nonresidentdistrict the superintendent of that district shall report thefact to the department of education.The nonresident school board shall notify the resident school board of the approval. Sec. 4. Minnesota Statutes 1990, section 121.612, subdivision 2, is amended to read: Subd. 2. [CREATION OF FOUNDATION.] There is created the Minnesota academic excellence foundation. The purpose of the foundation shall be to promote academic excellence in Minnesota public and nonpublic schools through public-private partnerships. The foundation shall be a nonprofit organization. The board of directors of the foundation and foundation activities are under the direction of the state board of education. Sec. 5. Minnesota Statutes 1990, section 121.612, subdivision 5, is amended to read: Subd. 5. [POWERS AND DUTIES.] The foundation may: (1) establish and collect membership fees; (2) publish brochures or booklets relating to the purposes of the foundation and collect reasonable fees for the publications; (3) receive money, grants, and in-kind goods or services from nonstate sources for the purposes of the foundation, without complying with section 7.09, subdivision 1; (4) contract with consultants;and(5) expend money for awards and other forms of recognition and appreciation; and (6) determine procedures and expenditures for awards and recognitions to teachers, students, donors, and other people who are not employees of the executive branch. Sec. 6. Minnesota Statutes 1990, section 122.23, subdivision 18, is amended to read: Subd. 18. (a)If no board is provided for under theforegoing provision, upon receipt of the assigned identificationnumber,The county auditor shall determine a date, not less than 20 nor more than 60 days from the dateof the receipt of thethat theassigned identification numberorder setting the effective date of the consolidation according to subdivision 13 was issued, upon which date shall be held a special election in the district for the purpose of electing a board of six members for terms as follows: two until the July 1 one year after the effective date of the consolidation, two until the expiration of one year from said July 1, and two until the expiration of two years from said July 1, to hold office until a successor is elected and qualifies according to provisions of law governing the election of board members in independent districts. If the resolution or petition for consolidation pursuant to subdivision 2 proposed that the board of the newly created district consists of seven members, then seven members shall be elected at this election for the terms provided in this clause except that three members shall hold office until the expiration of two years from said July 1. If the resolution or petition for consolidation pursuant to subdivision 2 proposed the establishment of separate election districts, these members shall be elected from separate election districts according to the provisions of that resolution or petition and of chapter 205A. (b) The county auditor shall give ten days' posted notice of election in the area in which the election is to be held and also if there be a newspaper published in the proposed new district, one weeks' published notice shall be given. The notice shall specify the time, place, and purpose of the election. (c)The county may pay the election judges not to exceed $1per hour for their services.(d)Any person desiring to be a candidate for a school election shall file an application with the county auditor to have the applicant's name placed on the ballot for such office, specifying the term for which the application is made. The application shall be filed not less than 12 days before the election.(e)(d) The county auditor shall prepare, at the expense of the county, necessary ballots for the election of officers, placing thereon the names of the proposed candidates for each office. The ballots shall be marked and signed as official ballots and shall be used exclusively at the election. The county auditor shall determine the number of voting precincts and the boundaries of each. The county auditor shall determine the location of polling places and the hours the polls shall be open and shall appoint three election judges for each polling place who shall act as clerks of election. Election judges shall certify ballots and results to the county auditor for tabulation and canvass.(f)(e) After making a canvass and tabulation, the county auditor shall issue a certificate of election to the candidate for each office who received the largest number of votes cast for the office. The county auditor shall deliver such certificate to the person entitled thereto by certified mail, and each person so certified shall file an acceptance and oath of office with the county auditor within 30 days of the date of mailing of the certificate. A person who fails to qualify prior to the time specified shall be deemed to have refused to serve, but such filing may be made at any time before action to fill vacancy has been taken.(g)(f) The board of each district included in the new enlarged district shall continue to maintain school therein until the effective date of the consolidation. Such boards shall have power and authority only to make such contracts, to do such things as are necessary to maintain properly the schools for the period prior to that date, and to certify to the county auditor according to levy limitations applicable to the component districts the taxes collectible in the calendar year when the consolidation becomes effective.(h)(g) It shall be the immediate duty of the newly elected board of the new enlarged district, when the members thereof have qualified and the board has been organized, to plan for the maintenance of the school or schools of the new district for the next school year, to enter into the necessary negotiations and contracts for the employment of personnel, purchase of equipment and supplies, and other acquisition and betterment purposes, when authorized by the voters to issue bonds under the provisions of chapter 475; and on the effective date of the consolidation to assume the full duties of the care, management and control of the new enlarged district. The board of the new enlarged district shall give due consideration to the feasibility of maintaining such existing attendance centers and of establishing such other attendance centers, especially in rural areas, as will afford equitable and efficient school administration and assure the convenience and welfare of the pupils residing in the enlarged district. The obligations of the new board to teachers employed by component districts shall be governed by the provisions of section 122.532. Sec. 7. Minnesota Statutes 1990, section 123.932, subdivision 3, is amended to read: Subd. 3. [NONPUBLIC SCHOOL DEFINED.] "Nonpublic school" means any schoolwithin the state other than a publicschool, church or religious organization, or home school wherein a resident of Minnesota may legally fulfill the compulsoryschool attendanceinstruction requirements of section 120.101, which is located within the state, and which meets the requirements of Title VI of the Civil Rights Act of 1964 (Public Law Number 88-352). It does not mean a public school. Sec. 8. Minnesota Statutes 1990, section 124.14, subdivision 1, is amended to read: Subdivision 1. The state board shall supervise distribution of school aids and grants in accordance with law. It may make rules consistent with law for the distribution to enable districts to perform efficiently the services required by law and further education in the state, including reasonable requirements for the reports and accounts to it as will assure accurate and lawful apportionment of aids. State and federal aids and discretionary or entitlement grants distributed by the state board shall not be subject to the contract approval procedures of the commissioner of administration or to chapter1616A or 16B. The commissioner of education shall adopt internal procedures for administration and monitoring of aids and grants. Sec. 9. Minnesota Statutes 1990, section 124.155, subdivision 2, is amended to read: Subd. 2. [ADJUSTMENT TO AIDS.] The amount specified in subdivision 1 shall be used to adjust the following state aids and credits in the order listed: (a) general education aid authorized in sections 124A.23 and 124B.20; (b) secondary vocational aid authorized in section 124.573; (c) special education aid authorized in section 124.32; (d) secondary vocational aid for handicapped children authorized in section 124.574; (e) aid for pupils of limited English proficiency authorized in section 124.273; (f) transportation aid authorized in section 124.225; (g) community education programs aid authorized in section 124.2713; (h) adult education aid authorized in section 124.26; (i) early childhood family education aid authorized in section 124.2711; (j) capital expenditure aid authorized in sections 124.243, 124.244, and 124.83; (k) education district aid according to section 124.2721; (l) secondary vocational cooperative aid according to section 124.575; (m) assurance of mastery aid according to section 124.311; (n) individual learning and development aid according to section 124.331; (o) homestead credit under section 273.13 for taxes payable in 1989 and additional homestead and agricultural credit guarantee under section 273.1398, subdivision 5, for taxes payable in 1990 and thereafter;(n)(p) agricultural credit under section 273.132 for taxes payable in 1989 and additional homestead and agricultural credit guarantee under section 273.1398, subdivision 5, for taxes payable in 1990 and thereafter;(o)(q) homestead and agricultural credit aid and disparity reduction aid authorized in section 273.1398, subdivision 2; and(p)(r) attached machinery aid authorized in section 273.138, subdivision 3. The commissioner of education shall schedule the timing of the adjustments to state aids and credits specified in subdivision 1, as close to the end of the fiscal year as possible. Sec. 10. Minnesota Statutes 1990, section 124.195, subdivision 2, is amended to read: Subd. 2. [DEFINITIONS.] (a) The term "other district receipts" means payments by county treasurers pursuant to section 276.10, apportionments from the school endowment fund pursuant to section 124.09, apportionments by the county auditor pursuant to section 124.10, subdivision 2, and payments to school districts by the commissioner of revenue pursuant to chapter 298. (b) The term "cumulative amount guaranteed" means the sum of the following: (1) one-third of the final adjustment payment according to subdivision 6; plus (2) the product of (i) the cumulative disbursement percentage shown in subdivision 3; times (ii) the sum of 85 percent of the estimated aid and credit entitlements paid according to subdivision 10; plus 100 percent of the entitlements paid according to subdivisions 8 and 9; plus the other district receipts; plus the final adjustment payment according to subdivision 6. (c) The term "payment date" means the date on which state payments to school districts are made by the electronic funds transfer method. If a payment date falls on a Saturday, the payment shall be made on the immediately preceding business day. If a payment date falls on a Sunday, the payment shall be made on the immediately following business day. If a payment date falls on a weekday which is a legal holiday, the payment shall be made on the immediately preceding business day. The commissioner of education may make payments on dates other than those listed in subdivision 3, but only for portions of payments from any preceding payment dates which could not be processed by the electronic funds transfer method due to documented extenuating circumstances. Sec. 11. Minnesota Statutes 1990, section 124.195, subdivision 3, is amended to read: Subd. 3. [PAYMENT DATES AND PERCENTAGES.] The commissioner of education shall pay to a school district on the dates indicated an amount computed as follows: the cumulative amount guaranteed minus the sum of (a) the district's other district receipts through the current payment, and (b) the aid and credit payments through the immediately preceding payment. For purposes of this computation, the payment dates and the cumulative disbursement percentages are as follows:Payment date Percentage Payment 1 First business day prior toJuly 15: 2.25 Payment 2First business day prior toJuly 30: 4.50 Payment 3First business day prior toAugust 15: 6.75 Payment 4First business day prior toAugust 30: 9.0 Payment 5First business day prior toSeptember 15: the greater of (a) one-half of the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392, or (b) the amount needed to provide 12.75 percent Payment 6First business day prior toSeptember 30: the greater of (a) one-half of the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392, or (b) the amount needed to provide 16.5 percent Payment 7First business day prior toOctober 15: the greater of (a) one-half of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits, or (b) the amount needed to provide 20.75 percent Payment 8First business day prior toOctober 30: the greater of (a) one-half of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits, or (b) the amount needed to provide 25.0 percent Payment 9First business day prior toNovember 15: 31.0 Payment 10First business day prior toNovember 30: 37.0 Payment 11First business day prior toDecember 15: 40.0 Payment 12First business day prior toDecember 30: 43.0 Payment 13First business day prior toJanuary 15: 47.25 Payment 14First business day prior toJanuary 30: 51.5 Payment 15First business day prior toFebruary 15: 56.0 Payment 16First business day prior toFebruary 28: 60.5 Payment 17First business day prior toMarch 15: 65.25 Payment 18First business day prior toMarch 30: 70.0 Payment 19First business day prior toApril 15: 73.0 Payment 20First business day prior toApril 30: 79.0 Payment 21First business day prior toMay 15: 82.0 Payment 22First business day prior toMay 30: 90.0 Payment 23First business day prior toJune 20: 100.0 Sec. 12. Minnesota Statutes 1990, section 124.195, subdivision 3a, is amended to read: Subd. 3a. [APPEAL.] The commissioner may revise the payment dates and percentages in subdivision 3and Laws 1986,First Special Session chapter 1, article 5, section 9for a district if it is determined that there is an emergency or there are serious cash flow problems in the district that cannot be resolved by issuing warrants or other forms of indebtedness. The commissioner shall establish a process and criteria for school districts to appeal the payment dates and percentages established in subdivision 3and Laws 1986, First SpecialSession chapter 1 article 5, section 9. Sec. 13. Minnesota Statutes 1990, section 124.195, subdivision 10, is amended to read: Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in subdivisions 8and, 9, and 11, each fiscal year, all education aids and credits in this chapter and chapters 121, 123, 124A, 124B, 125, 126, 134, and section 273.1392,except post-secondaryvocationalshall be paid at 85 percent of the estimated entitlement during the fiscal year of the entitlement, unless a higher rate has been established according to section 121.904, subdivision 4d. The amount of the actual entitlement, after adjustment for actual data, minus the payments made during the fiscal year of the entitlement shall be paid as the final adjustment payment according to subdivision 6. Sec. 14. Minnesota Statutes 1990, section 124.195, subdivision 11, is amended to read: Subd. 11. [NONPUBLIC AIDS.] The state shall pay aid according to sections 123.931 to 123.947 for pupils attending nonpublic schoolsby October 31 of each fiscal year.as follows: (1) an advance payment by November 30 equal to 85 percent of the estimated entitlement for the current fiscal year; and (2) a final payment by October 31 of the following fiscal year, adjusted for actual data. If a payment advance to meet cash flow needs is requested by a district and approved by the commissioner, the state shall pay basic transportation aid according to section 124.225,subdivision 8battributable to pupils attending nonpublic schools by October 31.This subdivision applies to both thefinal adjustment payment for the prior fiscal year and thepayment for the current fiscal year, as established insubdivision 10.Sec. 15. Minnesota Statutes 1990, section 124.2139, is amended to read: 124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.] The commissioner of revenue shall reducethe homesteadcredit payments under section 273.13 for fiscal year 1990, andthe sum of the additional homestead and agricultural credit guarantee, homestead and agricultural credit aid, and disparity reduction aid payments under section 273.1398for fiscal years1991 and thereaftermade to school districts by the product of: (1) the district's fiscal year 1984 payroll for coordinated plan members of the public employees retirement association, times (2) the difference between the employer contribution rate in effect prior to July 1, 1984, and the total employer contribution rate in effect after June 30, 1984. Sec. 16. Minnesota Statutes 1990, section 124.214, subdivision 2, is amended to read: Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, sections 270.07, 375.192, or otherwise, the net tax capacity of any school district for any taxable year is changed after the taxes for that year have been spread by the county auditor and the local tax rate as determined by the county auditor based upon the original net tax capacity is applied upon the changed net tax capacities, the county auditor shall, prior to February 1 of each year, certify to the commissioner of education the amount of any resulting net revenue loss that accrued to the school district during the preceding year. Each year, the commissioner shall pay an abatement adjustment to the district in an amount calculated according to the provisions of this subdivision. This amount shall be deducted from the amount of the levy authorized by section 275.48.The abatement adjustmentshall be recognized as revenue in the fiscal year in which it isreceived.The amount of the abatement adjustment shall be the product of: (1) the net revenue loss as certified by the county auditor, times (2) the ratio of: (a) the sum of the amounts of the district's certified levy in the precedingOctoberyear according to the following: (i) section 124A.23 if the district receives general education aid according to that section, or section 124B.20, if the education district of which the district is a member receives general education aid according to that section; (ii) section 275.125, subdivisions 5 and 5c, if the district receives transportation aid according to section 124.225; (iii) section 124.243, if the district receives capital expenditure facilities aid according to that section; (iv) section 124.244, if the district receives capital expenditure equipment aid according to that section; (v) section 124.83, if the district receives health and safety aid according to that section; (vi)section 275.125, subdivision 8, clauses (a) and(b)sections 124.2713, 124.2714, and 124.2715, if the district receivescommunity educationaid for community education programs according tosection 124.271any of those sections; and (vii) section 275.125, subdivision 8b, if the district receives early childhood family education aid according to section 124.2711;and(viii) section 275.125, subdivision 6f, if the districtreceives exceptional need aid according to section 124.217;(b) to the total amount of the district's certified levy in the preceding October, plus or minus auditor's adjustments. Sec. 17. Minnesota Statutes 1990, section 124.214, subdivision 3, is amended to read: Subd. 3. [EXCESS TAX INCREMENT.] If a return of excess tax increment is made to a school district pursuant to section 469.176, subdivision 2, or upon decertification of a tax increment district, the school district's aid and levy limitations must be adjusted for the fiscal year in which the excess tax increment is paid under the provisions of this subdivision. (a) An amount must be subtracted from the school district's aid for the current fiscal year equal to the product of: (1) the amount of the payment of excess tax increment to the school district, times (2) the ratio of: (A) the sum of the amounts of the school district's certified levy for the fiscal year in which the excess tax increment is paid according to the following: (i) section 124A.23, if the district receives general education aid according to that section, or section 124B.20, if the education district of which the district is a member receives general education aid according to that section; (ii) section 275.125, subdivisions 5 and 5c, if the school district receives transportation aid according to section 124.225; (iii) section 124.243, if the district receives capital expenditure facilities aid according to that section; (iv) section 124.244, if the district receives capital expenditure equipment aid according to that section; (v) section 124.83, if the district receives health and safety aid according to that section; (vi)section 275.125, subdivision 8, clauses (a) and(b)sections 124.2713, 124.2714, and 124.2715, if the district receivescommunity educationaid for community education programs according tosection 124.271any of those sections; and (vii) section 275.125, subdivision 8b, if the district receives early childhood family education aid according to section 124.2711;and(viii) section 275.125, subdivision 6f, if the districtreceives exceptional need aid according to section 124.217;(B) to the total amount of the school district's certified levy for the fiscal year, plus or minus auditor's adjustments. (b) An amount must be subtracted from the school district's levy limitation for the next levy certified equal to the difference between: (1) the amount of the distribution of excess increment, and (2) the amount subtracted from aid pursuant to clause (a). If the aid and levy reductions required by this subdivision cannot be made to the aid for the fiscal year specified or to the levy specified, the reductions must be made from aid for subsequent fiscal years, and from subsequent levies. The school district shall use the payment of excess tax increment to replace the aid and levy revenue reduced under this subdivision. This subdivision applies only to the total amount of excess increments received by a school district for a calendar year that exceeds $25,000. Sec. 18. Minnesota Statutes 1990, section 124.244, subdivision 3, is amended to read: Subd. 3. [CAPITAL EXPENDITURE EQUIPMENT AID.] A district's capital expenditure equipment aid is the difference between the capital expenditure equipment revenue and the capital expenditure equipment levy. If a district does not levy the entire amount permitted, capital expenditure equipment aid must be reduced in proportion to the actual amount levied. Capital expenditure equipment aid must not be reduced as a result of a reduction of its capital expenditure equipment levy under section 121.912 or 124.2445. Sec. 19. Minnesota Statutes 1990, section 124.83, subdivision 1, is amended to read: Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive health and safety revenue for any fiscal year a district, including an intermediate district, must submit to the commissioner of education an application for aid and levy byJune 1 in the previous school yearthe date determined by the commissioner. The application may be for hazardous substance removal, fire code compliance, or life safety repairs. The application must include a health and safety program adopted by the school district board. The program must include the estimated cost of the program by fiscal year. Sec. 20. Minnesota Statutes 1990, section 124.83, subdivision 5, is amended to read: Subd. 5. [HEALTH AND SAFETY AID.] A district's health and safety aid is the difference between its health and safety revenue and its health and safety levy. If a district does not levy the entire amount permitted, health and safety aid must be reduced in proportion to the actual amount levied. Health and safety aid may not be reduced as a result of reducing a district's health and safety levy according to section 121.912. Sec. 21. Minnesota Statutes 1990, section 124A.036, subdivision 5, is amended to read: Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general education aid for districts must be adjusted for each pupil, excluding a handicapped pupil as defined in section 120.03 or a nonhandicapped pupil as defined by section 120.181, attending a nonresident district under sections 120.062, 120.075, 120.0751, 120.0752, 123.3515, 124C.45 to 124C.48, and 126.22. The adjustments must be made according to this subdivision. (a) General education aid paid to a resident district must be reduced by an amount equal to the general education revenue exclusive of compensatory revenue attributable to the pupil in the resident district. (b) General education aid paid to a district serving a pupil in programs listed in this subdivision shall be increased by an amount equal to the general education revenue exclusive of compensatory revenue attributable to the pupil in the nonresident district. (c) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district. (d) The district of residence shall pay tuition to a district or an area learning center, operated according to paragraph (e), providing special instruction and services to a handicapped pupil, as defined in section 120.03, or a pupil, as defined in section 120.181, who is enrolled in a program listed in this subdivision. The tuition shall be equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for debt service and for capital expenditure facilities and equipment, and debt service but not including any amount for transportation, minus (2) the amount of special education aid, attributable to that pupil, that is received by the district providing special instruction and services. (e) An area learning center operated by an educational cooperative service unit, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge tuition fornonhandicappedpupils rather than to calculate general education aid adjustments under paragraph (a), (b), or (c). The tuition must be equal to the greater of the average general education revenue per pupil unit attributable to thestudentpupil, or theaverage per pupil cost of operating the area learningcenteractual cost of providing the instruction, excluding transportation costs, if the pupil meets the requirements of section 120.03 or 120.181whichever is less. Sec. 22. Minnesota Statutes 1990, section 124A.24, is amended to read: 124A.24 [GENERAL EDUCATION LEVY EQUITY.] If a district's general education levy is determined according to section 124A.23, subdivision 3, an amount must be deducted from state aid authorized in this chapter andchapterchapters 124 and 124B, receivable for the same school year, and from other state payments receivable for the same school year authorized in chapter 273. The aid in section 124.646 must not be reduced. The amount of the deduction equals the difference between: (1) the general education tax rate, according to section 124A.23, times the district's adjusted net tax capacity used to determine the general education aid for the same school year; and (2) the district's general education revenue, excluding supplemental revenue, for the same school year, according to section 124A.22. However, for fiscal year 1989, the amount of the deduction shall be one-fourth of the difference between clauses (1) and (2); for fiscal year 1990, the amount of the deduction shall be one-third of the difference between clauses (1) and (2); for fiscal year 1991, the amount of the deduction shall be one-half of the difference between clauses (1) and (2); for fiscal year 1992, the amount of the deduction shall be four-sixths of the difference between clauses (1) and (2); and for fiscal year 1993, the amount of the deduction shall be five-sixths of the difference between clauses (1) and (2). Sec. 23. Minnesota Statutes 1990, section 124B.03, subdivision 2, is amended to read: Subd. 2. [REFERENDUM LEVY.] (a) The amount of general education revenue certified by an education district board under section 124B.10 may be increased in any amount that is approved by the voters of the education district at a referendum called for the purpose. The referendum may be called by the education district board or must be called by the education district board upon written petition of qualified voters of the education district. The referendum must be held on the first Tuesday after the first Monday in November. The ballot shall state the maximum amount of the increased levy as a percentage of net tax capacity, the amount that will be raised by that local tax rate in the first year it is to be levied, and that the local tax rate must be used to finance school operations. The ballot shall designate a specific number of years for which the referendum authorization applies. The ballot may contain a text with the information required in this subdivision and a question stating substantially the following: "Shall the increase in the levy proposed by (petition to) the board of ........., Education District No. .., be approved?" (b) If approved, the amount provided by the approved local tax rate applied to the net tax capacity for the year before the year the levy is certified is authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the education district at a later referendum. (c) The education district board shall prepare and deliver by first class mail at least 15 days but no more than 30 days prior to the day of the election to each taxpayer at the address listed on each member district's current year's assessment roll, a notice of the referendum and the proposed levy increase. For the purpose of giving mailed notice under this subdivision, owners shall be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer shall be deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of increase in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the education district. (d) The notice must include the following statement: "In 1989, the legislature reduced property taxes for education by increasing the state share of funding for education. However, state aid for cities and townships was reduced by a corresponding amount. As a result, property taxes for cities and townships may increase. Passage of this referendum will result in an increase in your property taxes." (e) A referendum on the question of revoking or reducing the increased levy amount authorized under paragraph (a) may be called by the education district board and must be called by the education district board upon the written petition of qualified voters of the education district. A levy approved by the voters of the education district under paragraph (a) must be made at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one election may be held to revoke or reduce a levy for any specific year and for later years. (f) A petition authorized by paragraph (a) or (e) shall be effective if signed by a number of qualified voters in excess of 15 percent of the average number of voters at the two most recent districtwide school elections in all the member school districts. A referendum invoked by petition must be held on the day specified in paragraph (a). (g) The approval of 50 percent plus one of those voting on the question is required to pass a referendum. (h)Within 30At least 15 daysafterbefore the referendum, the education districtholds a referendum according to thissubdivision, the education districtshallnotifysubmit a copy of the notice required under paragraph (c) to the commissioner of educationof. Within 15 days after the results of the referendum have been certified by the education district board, or in the case of a recount, after the certification of the results of the recount by the canvassing board, the education district shall notify the commissioner of education of the results of the referendum. (i) The department shall allocate the amount certified by the education district board under paragraph (a) or subdivision 1 proportionately among the member districts based on net tax capacity. The member districts shall levy the amount allocated. (j) Each year, a member district shall transfer referendum revenue to the education district board according to this subdivision. By June 20 and November 30 of each year, an amount must be transferred equal to: (1) 50 percent times (2) the amount certified in this subdivision minus homestead and agricultural credit aid allocated for that levy according to section 273.1398, subdivision 6. Sec. 24. Minnesota Statutes 1990, section 124C.03, subdivision 14, is amended to read: Subd. 14. [GRANT SCHEDULE.] The commissioner of the state planning agencymustshall awardinitialgrantsby April 1, 1990.Beginning in 1991, grants must be awardedbyJulySeptember 1ofeach year. Grants may be awarded for a period not to exceed 24 months. Sec. 25. Minnesota Statutes 1990, section 124C.49, is amended to read: 124C.49 [DESIGNATION AS CENTER.] The commissioner of education, in cooperation with the state board of education, shall establish a process for state designation and approval of area learning centers that meet the provisions of sections 124C.45 to 124C.48.The four area learning centers designated in 1988 asexemplary shall be subject to the state approval processbeginning July 1, 1990.Area learning center designation shall begin July 1, 1988.Sec. 26. Minnesota Statutes 1990, section 125.12, subdivision 6b, is amended to read: Subd. 6b. [UNREQUESTED LEAVE OF ABSENCE.] The school board may place on unrequested leave of absence, without pay or fringe benefits, as many teachers as may be necessary because of discontinuance of position, lack of pupils, financial limitations, or merger of classes caused by consolidation of districts. The unrequested leave shall be effective at the close of the school year. In placing teachers on unrequested leave, the board shall be governed by the following provisions: (a) The board may place probationary teachers on unrequested leave first in the inverse order of their employment. No teacher who has acquired continuing contract rights shall be placed on unrequested leave of absence while probationary teachers are retained in positions for which the teacher who has acquired continuing contract rights is licensed; (b) Teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed in the inverse order in which they were employed by the school district. In the case of equal seniority, the order in which teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed shall be negotiable; (c) Notwithstanding the provisions of clause (b), no teacher shall be entitled to exercise any seniority when that exercise results in that teacher being retained by the district in a field for which the teacher holds only a provisional license, as defined by the board of teaching, unless that exercise of seniority results in the placement on unrequested leave of absence of another teacher who also holds a provisional license in the same field. The provisions of this clause shall not apply to vocational education licenses; (d) Notwithstanding clauses (a), (b) and (c), if the placing of a probationary teacher on unrequested leave before a teacher who has acquired continuing rights, the placing of a teacher who has acquired continuing contract rights on unrequested leave before another teacher who has acquired continuing contract rights but who has greater seniority, or the restriction imposed by the provisions of clause (c) would place the district in violation of its affirmative action program, the district may retain the probationary teacher, the teacher with less seniority, or the provisionally licensed teacher; (e) Teachers placed on unrequested leave of absence shall be reinstated to the positions from which they have been given leaves of absence or, if not available, to other available positions in the school district in fields in which they are licensed. Reinstatement shall be in the inverse order of placement on leave of absence. No teacher shall be reinstated to a position in a field in which the teacher holds only a provisional license, other than a vocational education license, while another teacher who holds a nonprovisional license in the same field remains on unrequested leave. The order of reinstatement of teachers who have equal seniority and who are placed on unrequested leave in the same school year shall be negotiable; (f) No appointment of a new teacher shall be made while there is available, on unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the teacher fails to advise the school board within 30 days of the date of notification that a position is available to that teacher who may return to employment and assume the duties of the position to which appointed on a future date determined by the board; (g) A teacher placed on unrequested leave of absence may engage in teaching or any other occupation during the period of this leave; (h) The unrequested leave of absence shall not impair the continuing contract rights of a teacher or result in a loss of credit for previous years of service; (i)The unrequested leave of absence of a teacher who isplaced on unrequested leave of absence prior to January 1, 1978and who is not reinstated shall continue for a period of twoyears after which the right to reinstatement shall terminate.The unrequested leave of absence of a teacher who is placed on unrequested leave of absenceon or after January 1, 1978and who is not reinstated shall continue for a period of five years, after which the right to reinstatement shall terminate; provided the teacher's right to reinstatement shall also terminate if the teacher fails to file with the board by April 1 of any year a written statement requesting reinstatement; (j) The same provisions applicable to terminations of probationary or continuing contracts in subdivisions 3 and 4 shall apply to placement on unrequested leave of absence; (k) Nothing in this subdivision shall be construed to impair the rights of teachers placed on unrequested leave of absence to receive unemployment compensation if otherwise eligible. Sec. 27. Minnesota Statutes 1990, section 125.60, subdivision 3, is amended to read: Subd. 3. [REINSTATEMENT.] Except as provided in subdivisions 6a and 6b, a teacher on an extended leave of absence pursuant to this section shall have the right to be reinstated to a position for which the teacher is licensed at the beginning of any school year which immediately follows a year of the extended leave of absence, unless the teacher fails to give the required notice of intention to return or is discharged or placed on unrequested leave of absence or the contract is terminated pursuant to section 125.12 or 125.17 while the teacher is on the extended leave. The board shall not be obligated to reinstate any teacher who is on an extended leave of absence pursuant to this section, unless the teacher advises the board of the intention to return before February 1 in the school year preceding the school year in which the teacher wishes to return or by February 1 in the calendar year in which the leave is scheduled to terminate.The board shallnotify the commissioner within 30 days of being notified that ateacher intends to return from an extended leave.Sec. 28. Minnesota Statutes 1990, section 275.065, subdivision 6, is amended to read: Subd. 6. [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] Between November 15 and December 20, the governing bodies of the city and county shall each hold a public hearing to adopt its final budget and property tax levy for taxes payable in the following year, and the governing body of the school district shall hold a public hearing to adopt its property tax levy for taxes payable in the following year. At the hearing, the taxing authority, other than a school district, may amend the proposed budget and property tax levy and must adopt a final budget and property tax levy, and the school district may amend the proposed property tax levy and must adopt a final property tax levy. The property tax levy certified under section 275.07 by a city, county, or school district must not exceed the proposed levy determined under subdivision 1, except by an amount up to the sum of the following amounts: (1) the amount of a school district levy whose voters approved a referendum to increase taxes under section 124A.03, subdivision 2, 124B.03, subdivision 2, or 124.82, subdivision 3, after the proposed levy was certified; (2) the amount of a city or county levy approved by the voters under section 275.58 after the proposed levy was certified; (3) the amount of a levy to pay principal and interest on bonds issued or approved by the voters under section 475.58 after the proposed levy was certified; (4) the amount of a levy to pay costs due to a natural disaster occurring after the proposed levy was certified, if that amount is approved by the commissioner of revenue under subdivision 6a; (5) the amount of a levy to pay tort judgments against a taxing authority that become final after the proposed levy was certified, if the amount is approved by the commissioner of revenue under subdivision 6a; and (6) the amount of an increase in levy limits certified to the taxing authority by the commissioner of revenue or the commissioner of education after the proposed levy was certified. At the hearing the percentage increase in property taxes proposed by the taxing authority, if any, and the specific purposes for which property tax revenues are being increased must be discussed. During the discussion, the governing body shall hear comments regarding a proposed increase and explain the reasons for the proposed increase. The public shall be allowed to speak and to ask questions prior to adoption of any measures by the governing body. The governing body, other than the governing body school districts, shall adopt its final property tax levy prior to adopting its final budget. The hearing must be held after 5:00 p.m. if scheduled on a day other than Saturday. No hearing may be held on a Sunday. The county auditor shall provide for the coordination of hearing dates for all taxing authorities within the county. By August 1, the county auditor shall notify the clerk of each school district within the county of the dates that the county board has designated for its hearing and any continuation under subdivision 3. By August 15, each school board shall certify to the county auditors of the counties in which the school district is located the dates on which it elects to hold its hearings and any continuations under subdivision 3. If a school board does not certify the dates by August 15, the auditor will assign the hearing date. The dates elected or assigned must not conflict with the county hearing dates. By August 20, the county auditor shall notify the clerks of the cities within the county of the dates on which the county and school districts have elected to hold their hearings. At the time a city certifies its proposed levy under subdivision 1 it shall certify the dates on which it elects to hold its hearings and any continuations under subdivision 3. The city must not select dates that conflict with those elected by or assigned to the counties and school districts in which the city is located. The hearing dates so elected or assigned must be designated on the notices required under subdivision 3. This subdivision does not apply to towns and special taxing districts. Sec. 29. Minnesota Statutes 1990, section 275.125, subdivision 4, is amended to read: Subd. 4. [MISCELLANEOUS LEVY AUTHORIZATIONS.] (a) A school district may levy the amounts necessary to make payments for bonds issued and for interest thereon, including the bonds and interest thereon, issued as authorized by Minnesota Statutes 1974, section 275.125, subdivision 3, clause (7)(C); the amounts necessary for repayment of debt service loans and capital loans; the amounts necessary to pay the district's obligations under section 6.62; the amount authorized for liabilities of dissolved districts pursuant to section 122.45; the amounts necessary to pay the district's obligations under section 268.06, subdivision 25; the amounts necessary to pay for job placement services offered to employees who may become eligible for benefits pursuant to section 268.08; the amounts necessary to pay the district's obligations under section 127.05; the amounts authorized by section 122.531; the amounts necessary to pay the district's obligations under section 122.533; and for severance pay required bythis sectionsections 120.08, subdivision 3, andsection122.535, subdivision 6. (b) An education district that negotiates a collective bargaining agreement for teachers under section 122.937 may certify to the department of education the amount necessary to pay all of the member districts' obligations and the education district's obligations under section 268.06, subdivision 25. The department of education must allocate the levy amount proportionately among the member districts based on adjusted net tax capacity. The member districts must levy the amount allocated. (c) Each year, a member district of an education district that levies under this subdivision must transfer the amount of revenue certified under paragraph (b) to the education district board according to this subdivision. By June 20 and November 30 of each year, an amount must be transferred equal to: (1) 50 percent times (2) the amount certified in paragraph (b) minus homestead and agricultural credit aid allocated for that levy according to section 273.1398, subdivision 6. Sec. 30. Minnesota Statutes 1990, section 275.125, subdivision 11d, is amended to read: Subd. 11d. [EXTRA CAPITAL EXPENDITURE LEVY FOR LEASING BUILDINGS.] When a district finds it economically advantageous to rent or lease a building for any instructional purposes and it determines that the capital expenditure facilities revenues authorized under section 124.243 are insufficient for this purpose, it may apply to the commissioner for permission to make an additional capital expenditure levy for this purpose. An application for permission to levy under this subdivision must contain financial justification for the proposed levy, the terms and conditions of the proposed lease, and a description of the space to be leased and its proposed use. The criteria for approval of applications to levy under this subdivision must include: the reasonableness of the price, the appropriateness of the space to the proposed activity, the feasibility of transporting pupils to the leased building, conformity of the lease to the laws and rules of the state of Minnesota, and the appropriateness of the proposed lease to the space needs and the financial condition of the district. The commissioner must not authorize a levy under this subdivision in an amount greater than the cost to the district of renting or leasing a building for approved purposes. The proceeds of this levy must not be usedfor leasing or renting a facility owned by a district orfor custodial or other maintenance services. A district may not levy under this subdivision for the purpose of leasing or renting a district-owned building to itself. Sec. 31. Minnesota Statutes 1990, section 275.125, subdivision 18, is amended to read: Subd. 18. [LEVY INFORMATION.] By September 15 of each year each district shall notify the commissioner of education of the proposed levies in compliance with the levy limitations of this section and chapters 124, 124A,and124B, 136C, and 136D. By January 15 of each year each district shall notify the commissioner of education of the final levies certified. The commissioner of education shall prescribe the form of these notifications and may request any additional information necessary to compute certified levy amounts. Sec. 32. Minnesota Statutes 1990, section 275.125, subdivision 20, is amended to read: Subd. 20. [ESTIMATES.] The computation of levy limitations pursuant to this section andchapterchapters 124, 124A, 124B, 136C, and 136D shall be based on estimates where necessary. If as a result of using estimates for these computations the amount of any levy is different from the amount which could actually have been levied if actual data had been available, levy limitations in the first year when the actual data is known shall be adjusted to reflect for this difference. The amount of any adjustment to levy limitations pursuant to this subdivision shall be recognized as revenue in the school year when the levy for which the levy limitation is so adjusted is recognized as revenue. Sec. 33. Minnesota Statutes 1990, section 275.16, is amended to read: 275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] If any such municipality shall return to the county auditor a levy greater than permitted by chapters 124, 124A, 124B, 136C, and 136D and sections 275.124 to 275.16, such county auditor shall extend only such amount of taxes as the limitations herein prescribed will permit; provided, if such levy shall include any levy for the payment of bonded indebtedness or judgments, such levies for bonded indebtedness or judgments shall be extended in full, and the remainder of the levies shall be reduced so that the total thereof, including levies for bonds and judgments, shall not exceed such amount as the limitations herein prescribed will permit. Sec. 34. Minnesota Statutes 1990, section 354.094, subdivision 1, is amended to read: Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] A member granted an extended leave of absence pursuant to section 125.60 or 136.88 may pay employee contributions and receive allowable service credit toward annuities and other benefits under this chapter, for each year of the leave provided the member and the employing board make the required employer contribution in any proportion they may agree upon, during the period of the leave which shall not exceed five years.The state shall not payemployer contributions into the fund for any year for which amember is on extended leave.The employee and employer contributions shall be based upon the rates of contribution prescribed by section 354.42 for the salary received during the year immediately preceding the extended leave. Payments for the years for which a member is receiving service credit while on extended leave shall be made on or before the later of June 30 of each fiscal year for which service credit is received or within 30 days after first notification of the amount due, if requested by the member, is given by the association. No payment is permitted after the following September 30. Payments received after June 30 must include six percent interest from June 30 through the end of the month in which payment is received. Sec. 35. Laws 1991, chapter 2, article 2, section 2, is amended to read: Sec. 2. APPROPRIATION REDUCTIONSThe general fund appropriations in Laws 1989, chapter 329, as amended by Laws 1990, chapter 562, articles 6, 7, and 9, are reduced by the listed amounts. All reductions are for fiscal year 1991 only. (a) Transportation aid for enrollment options (25,400)(25,300) (b) Summer special education aid (759,800)(727,900) (c) Secondary vocational handicapped aid (1,500,400)(1,836,400) (d) Assurance of mastery aid (849,000)(659,300) (e) Individualized learning and development aid (429,000)(350,500) (f) Adult graduation aid (426,000)(527,000) (g) Health and developmental screening aid (1,360,800)(1,232,900) (h) Secondary vocational cooperative aid (5,300)(200) (i) Cooperation and combination aid(2,900)(j) PER process aid(500)(k)Tobacco use prevention aid(2,700)(2,300) (l)(j) Career teacher aid (222,600)(m)(k) Educational cooperative service unit loans (500,000)(n)(l) Adult education - basic skills evaluation (75,000)(o)(m) Department of education (136,000)None of this reduction shall be taken from the appropriations for the Faribault academies. (p)(n) Minnesota center for arts education (200,000)(q)(o) Task force on mathematics, science, technology, and international education (33,000) Sec. 36. [MECC SALES OR USE TAXES.] Any sales or use taxes collected by the commissioner of revenue from the Minnesota Educational Computing Consortium with respect to transactions occurring prior to January 5, 1991 shall be deposited in the permanent school fund. Sec. 37. [INSTRUCTION TO REVISOR.] In the next edition of Minnesota Statutes, the revisor of statutes shall recodify: (1) section 124C.01 as a section in chapter 120; (2) sections 124C.22 to 124C.25 as sections in chapter 120, 121, or 126; (3) sections 124C.26 to 124C.31 as sections in chapter 120, 121, or 125; (4) section 124C.61 as a section in chapter 126; (5) section 275.125, subdivisions 5, 5a, 5b, 5c, 5e, 5f, 5g, and 5h, as section 124.226; and (6) section 275.125, subdivisions 4, 6a, 6e, 6h, 6i, 8c, 8e, 9, 9a, 9b, 9c, 10, 11d, 11e, 11f, 12a, 14a, 15, 17, 18, 20, and 21, as a section in chapter 124. The revisor shall change all cross-references to the recodified subdivisions and sections. Sec. 38. [REPEALER.] Subdivision 1. [GENERAL PROVISIONS.] Minnesota Statutes 1990, sections 121.933, subdivision 2; 122.23, subdivision 17; 123.932, subdivision 4; 124A.02, subdivision 19; 124C.21; 275.125, subdivisions 1, 4a, and 8d; 354.094, subdivisions 1a and 1b, are repealed. Subd. 2. [MECC REPEAL.] Minnesota Statutes 1990, sections 119.01; 119.02; 119.03; 119.04, subdivisions 1, 2, and 3; 119.05; 119.06; 119.07; 119.08; and 119.09, are repealed. The repeal of the sections in this subdivision shall not be construed to mean that the commissioner of finance, on behalf of the state of Minnesota, does not have the right to seek any legal remedy to enforce the rights granted in any agreements entered into according to the sections repealed. Sec. 39. [EFFECTIVE DATE.] Sections 9, 10, 11, and 35 are effective the day following final enactment. Presented to the governor May 17, 1991 Signed by the governor May 21, 1991, 5:15 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes