1.1                          A bill for an act 
  1.2             relating to education; eliminating the state board of 
  1.3             education; creating a state education advisory 
  1.4             council; transferring certain state board of education 
  1.5             duties to the department of education; amending 
  1.6             Minnesota Statutes 1994, sections 16B.43, subdivision 
  1.7             2; 120.064, subdivisions 3, 4, 8, 10, 14, 17, 21, and 
  1.8             24; 120.17, subdivisions 1, 3, 3b, and 7a; 120.65; 
  1.9             120.66; 121.02; 121.05; 121.14; 121.148, subdivision 
  1.10            3; 121.16, subdivision 1, and by adding subdivisions; 
  1.11            121.48; 121.585, subdivisions 2 and 8; 121.612, 
  1.12            subdivisions 2, 3, 6, 7, and 9; 121.914, subdivision 
  1.13            3; 122.23, subdivision 3; 122.242, subdivisions 1 and 
  1.14            2; 123.38, subdivision 3; 123.39, subdivision 8a; 
  1.15            123.58, subdivision 9; 123.933, subdivision 1; 
  1.16            123.947; 124.14, subdivisions 1 and 4; 124.15, 
  1.17            subdivisions 2, 2a, 4, 5, and 7; 124.223, subdivision 
  1.18            11; 124.41, subdivision 2; 124.431, subdivision 7; 
  1.19            124.48; 124.573, subdivisions 3 and 3a; 124.574, 
  1.20            subdivisions 4 and 5; 124.625; 124C.12, subdivisions 
  1.21            1, 4, and 5; 124C.46, subdivision 3; 125.05, 
  1.22            subdivisions 1, 1c, 2, and 4; 125.09, subdivisions 1 
  1.23            and 4; 125.121, subdivisions 1 and 2; 125.1885, 
  1.24            subdivisions 1, 4, and 5; 125.702, subdivision 2; 
  1.25            126.019; 126.36, subdivision 4; 126.49, subdivision 4; 
  1.26            126.52, subdivision 5; 126.531; 126.82; 127.44; 
  1.27            128A.02; 128A.022; 128A.023; 128A.024, subdivision 2; 
  1.28            128A.025, subdivision 2; 128A.026, subdivision 1; 
  1.29            128A.05, subdivision 3; 128A.07, subdivision 2; 
  1.30            128A.09, subdivision 3; 134.201, subdivision 1; 
  1.31            134.22; 134.32, subdivision 8; 134.34, subdivision 3; 
  1.32            134.351, subdivision 1; 134.36; 136A.041; 136D.75; 
  1.33            138.054, subdivision 2; 169.448, subdivision 2; 
  1.34            169.974, subdivision 2; 171.04, subdivision 1; 
  1.35            216C.13; 248.07, subdivision 3; 465.797, subdivision 
  1.36            1; and 471.18; repealing Minnesota Statutes 1994, 
  1.37            sections 15.014, subdivision 3; 121.02, subdivision 4; 
  1.38            121.03; 121.04; 121.06; 121.11; 121.15, subdivision 5; 
  1.39            123.78, subdivision 3; 124.431, subdivision 6; 126.22, 
  1.40            subdivision 5; 126.665; and 128A.023, subdivision 1. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42     Section 1.  Minnesota Statutes 1994, section 16B.43, 
  1.43  subdivision 2, is amended to read: 
  2.1      Subd. 2.  [FURNISHING STAFF AND ASSISTANCE.] To the extent 
  2.2   permitted by available resources, the commissioner may furnish 
  2.3   staff and other assistance to the department, the state board, 
  2.4   the ESV computer council, and the Minnesota educational 
  2.5   computing consortium in conjunction with their performance of 
  2.6   the duties imposed by sections 121.931 to 121.936.  
  2.7      Sec. 2.  Minnesota Statutes 1994, section 120.064, 
  2.8   subdivision 3, is amended to read: 
  2.9      Subd. 3.  [SPONSOR.] A school board may sponsor one or more 
  2.10  outcome-based schools. 
  2.11     A school board may authorize a maximum of five 
  2.12  outcome-based schools. 
  2.13     No more than a total of 35 outcome-based schools may be 
  2.14  authorized.  The state board commissioner of education shall 
  2.15  advise potential sponsors when the maximum number of 
  2.16  outcome-based schools has been authorized. 
  2.17     Sec. 3.  Minnesota Statutes 1994, section 120.064, 
  2.18  subdivision 4, is amended to read: 
  2.19     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
  2.20  authorize one or more licensed teachers under section 125.05, 
  2.21  subdivision 1, to operate an outcome-based school subject to 
  2.22  approval by the state board commissioner of education.  If a 
  2.23  school board elects not to sponsor an outcome-based school, the 
  2.24  applicant may appeal the school board's decision to the state 
  2.25  board commissioner of education if two members of the school 
  2.26  board voted to sponsor the school.  If the state board 
  2.27  commissioner authorizes the school, the state board commissioner 
  2.28  shall sponsor the school according to this section.  The school 
  2.29  shall be organized and operated as a cooperative under chapter 
  2.30  308A or nonprofit corporation under chapter 317A.  
  2.31     (b) Before the operators may form and operate a school, the 
  2.32  sponsor must file an affidavit with the state board commissioner 
  2.33  of education stating its intent to authorize an outcome-based 
  2.34  school.  The affidavit must state the terms and conditions under 
  2.35  which the sponsor would authorize an outcome-based school.  
  2.36  The state board commissioner must approve or disapprove the 
  3.1   sponsor's proposed authorization within 30 days of receipt of 
  3.2   the affidavit.  Failure to obtain state board the commissioner's 
  3.3   approval precludes a sponsor from authorizing the outcome-based 
  3.4   school that was the subject of the affidavit.  
  3.5      (c) The operators authorized to organize and operate a 
  3.6   school shall hold an election for members of the school's board 
  3.7   of directors in a timely manner after the school is operating.  
  3.8   Any staff members who are employed at the school, including 
  3.9   teachers providing instruction under a contract with a 
  3.10  cooperative, and all parents of children enrolled in the school 
  3.11  may participate in the election.  Licensed teachers employed at 
  3.12  the school, including teachers providing instruction under a 
  3.13  contract with a cooperative, must be a majority of the members 
  3.14  of the board of directors.  A provisional board may operate 
  3.15  before the election of the school's board of directors.  
  3.16     Sec. 4.  Minnesota Statutes 1994, section 120.064, 
  3.17  subdivision 8, is amended to read: 
  3.18     Subd. 8.  [REQUIREMENTS.] (a) An outcome-based school shall 
  3.19  meet all applicable state and local health and safety 
  3.20  requirements. 
  3.21     (b) The school must be located in the sponsoring district, 
  3.22  unless another school board agrees to locate an outcome-based 
  3.23  school sponsored by another district in its boundaries.  If a 
  3.24  school board denies a request to locate within its boundaries an 
  3.25  outcome-based school sponsored by another district, the 
  3.26  sponsoring district may appeal to the state board commissioner 
  3.27  of education.  If the state board commissioner authorizes the 
  3.28  school, the state board commissioner shall sponsor the school. 
  3.29     (c) The school must be nonsectarian in its programs, 
  3.30  admission policies, employment practices, and all other 
  3.31  operations.  A sponsor may not authorize an outcome-based school 
  3.32  or program that is affiliated with a nonpublic sectarian school 
  3.33  or a religious institution. 
  3.34     (d) The primary focus of the school must be to provide a 
  3.35  comprehensive program of instruction for at least one grade or 
  3.36  age group from five through 18 years of age.  Instruction may be 
  4.1   provided to people younger than five years and older than 18 
  4.2   years of age. 
  4.3      (e) The school may not charge tuition. 
  4.4      (f) The school is subject to and shall comply with chapter 
  4.5   363 and section 126.21. 
  4.6      (g) The school is subject to and shall comply with the 
  4.7   pupil fair dismissal act, sections 127.26 to 127.39, and the 
  4.8   Minnesota public school fee law, sections 120.71 to 120.76. 
  4.9      (h) The school is subject to the same financial audits, 
  4.10  audit procedures, and audit requirements as a school district.  
  4.11  The audit must be consistent with the requirements of sections 
  4.12  121.904 to 121.917, except to the extent deviations are 
  4.13  necessary because of the program at the school.  The department 
  4.14  of education, state auditor, or legislative auditor may conduct 
  4.15  financial, program, or compliance audits. 
  4.16     (i) The school is a school district for the purposes of 
  4.17  tort liability under chapter 466. 
  4.18     Sec. 5.  Minnesota Statutes 1994, section 120.064, 
  4.19  subdivision 10, is amended to read: 
  4.20     Subd. 10.  [PUPIL PERFORMANCE.] An outcome-based school 
  4.21  must design its programs to at least meet the outcomes adopted 
  4.22  by the state board of education required by state law.  In the 
  4.23  absence of state board requirements, the school must meet the 
  4.24  outcomes contained in the contract with the sponsor.  The 
  4.25  achievement levels of the outcomes contained in the contract may 
  4.26  exceed the achievement levels of any outcomes adopted by the in 
  4.27  state board law. 
  4.28     Sec. 6.  Minnesota Statutes 1994, section 120.064, 
  4.29  subdivision 14, is amended to read: 
  4.30     Subd. 14.  [REPORTS.] An outcome-based school must report 
  4.31  at least annually to its sponsor and the state board 
  4.32  commissioner of education the information required by the 
  4.33  sponsor or the state board.  The reports are public data under 
  4.34  chapter 13. 
  4.35     Sec. 7.  Minnesota Statutes 1994, section 120.064, 
  4.36  subdivision 17, is amended to read: 
  5.1      Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
  5.2   school before the applicant has secured its space, equipment, 
  5.3   facilities, and personnel if the applicant indicates the 
  5.4   authority is necessary for it to raise working capital.  A 
  5.5   sponsor may not authorize a school before the state board 
  5.6   commissioner of education has approved the authorization. 
  5.7      Sec. 8.  Minnesota Statutes 1994, section 120.064, 
  5.8   subdivision 21, is amended to read: 
  5.9      Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
  5.10  duration of the contract with a sponsor shall be for the term 
  5.11  contained in the contract according to subdivision 5.  The 
  5.12  sponsor may or may not renew a contract at the end of the term 
  5.13  for any ground listed in paragraph (b).  A sponsor may 
  5.14  unilaterally terminate a contract during the term of the 
  5.15  contract for any ground listed in paragraph (b).  At least 60 
  5.16  days before not renewing or terminating a contract, the sponsor 
  5.17  shall notify the board of directors of the school of the 
  5.18  proposed action in writing.  The notice shall state the grounds 
  5.19  for the proposed action in reasonable detail and that the 
  5.20  school's board of directors may request in writing an informal 
  5.21  hearing before the sponsor within 14 days of receiving notice of 
  5.22  nonrenewal or termination of the contract.  Failure by the board 
  5.23  of directors to make a written request for a hearing within the 
  5.24  14-day period shall be treated as acquiescence to the proposed 
  5.25  action.  Upon receiving a timely written request for a hearing, 
  5.26  the sponsor shall give reasonable notice to the school's board 
  5.27  of directors of the hearing date.  The sponsor shall conduct an 
  5.28  informal hearing before taking final action.  The sponsor shall 
  5.29  take final action to renew or not renew a contract by the last 
  5.30  day of classes in the school year.  If the sponsor is a local 
  5.31  school board, the school's board of directors may appeal the 
  5.32  sponsor's decision to the state board commissioner of education. 
  5.33     (b) A contract may be terminated or not renewed upon any of 
  5.34  the following grounds: 
  5.35     (1) failure to meet the requirements for pupil performance 
  5.36  contained in the contract; 
  6.1      (2) failure to meet generally accepted standards of fiscal 
  6.2   management; 
  6.3      (3) for violations of law; or 
  6.4      (4) other good cause shown. 
  6.5      If a contract is terminated or not renewed, the school 
  6.6   shall be dissolved according to the applicable provisions of 
  6.7   chapter 308A or 317A. 
  6.8      Sec. 9.  Minnesota Statutes 1994, section 120.064, 
  6.9   subdivision 24, is amended to read: 
  6.10     Subd. 24.  [IMMUNITY.] The state board commissioner of 
  6.11  education, members of the state board, a sponsor, members of the 
  6.12  board of a sponsor in their official capacity, and employees of 
  6.13  a sponsor are immune from civil or criminal liability with 
  6.14  respect to all activities related to an outcome-based school 
  6.15  they approve or sponsor.  The board of directors shall obtain at 
  6.16  least the amount of and types of insurance required by the 
  6.17  contract, according to subdivision 5. 
  6.18     Sec. 10.  Minnesota Statutes 1994, section 120.17, 
  6.19  subdivision 1, is amended to read: 
  6.20     Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
  6.21  DISABILITY.] Every district shall provide special instruction 
  6.22  and services, either within the district or in another district, 
  6.23  for children with a disability who are residents of the district 
  6.24  and who are disabled as set forth in section 120.03.  
  6.25  Notwithstanding any age limits in laws to the contrary, special 
  6.26  instruction and services must be provided from birth until 
  6.27  September 1 after the child with a disability becomes 22 years 
  6.28  old but shall not extend beyond secondary school or its 
  6.29  equivalent, except as provided in section 126.22, subdivision 
  6.30  2.  Local health, education, and social service agencies shall 
  6.31  refer children under age five who are known to need or suspected 
  6.32  of needing special instruction and services to the school 
  6.33  district.  Districts with less than the minimum number of 
  6.34  eligible children with a disability as determined by the state 
  6.35  board commissioner of education shall cooperate with other 
  6.36  districts to maintain a full range of programs for education and 
  7.1   services for children with a disability.  This subdivision does 
  7.2   not alter the compulsory attendance requirements of section 
  7.3   120.101. 
  7.4      Sec. 11.  Minnesota Statutes 1994, section 120.17, 
  7.5   subdivision 3, is amended to read: 
  7.6      Subd. 3.  [RULES OF THE STATE BOARD COMMISSIONER OF 
  7.7   EDUCATION.] (a) The state board commissioner shall promulgate 
  7.8   rules relative to qualifications of essential personnel, courses 
  7.9   of study, methods of instruction, pupil eligibility, size of 
  7.10  classes, rooms, equipment, supervision, parent consultation, and 
  7.11  any other rules it the commissioner deems necessary for 
  7.12  instruction of children with a disability.  These rules shall 
  7.13  provide standards and procedures appropriate for the 
  7.14  implementation of and within the limitations of subdivisions 3a 
  7.15  and 3b.  These rules shall also provide standards for the 
  7.16  discipline, control, management and protection of children with 
  7.17  a disability.  The state board commissioner shall not adopt 
  7.18  rules for pupils served in level 1, 2, or 3, as defined in 
  7.19  Minnesota Rules, part 3525.2340, establishing either case loads 
  7.20  or the maximum number of pupils that may be assigned to special 
  7.21  education teachers.  The state board commissioner, in 
  7.22  consultation with the departments of health and human services, 
  7.23  shall adopt permanent rules for instruction and services for 
  7.24  children under age five and their families.  These rules are 
  7.25  binding on state and local education, health, and human services 
  7.26  agencies.  The state board commissioner shall adopt rules to 
  7.27  determine eligibility for special education services.  The rules 
  7.28  shall include procedures and standards by which to grant 
  7.29  variances for experimental eligibility criteria.  The state 
  7.30  board commissioner shall, according to section 14.05, 
  7.31  subdivision 4, notify a district applying for a variance from 
  7.32  the rules within 45 calendar days of receiving the request 
  7.33  whether the request for the variance has been granted or 
  7.34  denied.  If a request is denied, the board commissioner shall 
  7.35  specify the program standards used to evaluate the request and 
  7.36  the reasons for denying the request.  
  8.1      (b) The state's regulatory scheme should support schools by 
  8.2   assuring that all state special education rules adopted by the 
  8.3   state board commissioner of education result in one or more of 
  8.4   the following outcomes: 
  8.5      (1) increased time available to teachers for educating 
  8.6   students through direct and indirect instruction; 
  8.7      (2) consistent and uniform access to effective education 
  8.8   programs for students with disabilities throughout the state; 
  8.9      (3) reduced inequalities, conflict, and court actions 
  8.10  related to the delivery of special education instruction and 
  8.11  services for students with disabilities; 
  8.12     (4) clear expectations for service providers and for 
  8.13  students with disabilities; 
  8.14     (5) increased accountability for all individuals and 
  8.15  agencies that provide instruction and other services to students 
  8.16  with disabilities; 
  8.17     (6) greater focus for the state and local resources 
  8.18  dedicated to educating students with disabilities; and 
  8.19     (7) clearer standards for evaluating the effectiveness of 
  8.20  education and support services for students with disabilities. 
  8.21     Sec. 12.  Minnesota Statutes 1994, section 120.17, 
  8.22  subdivision 3b, is amended to read: 
  8.23     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
  8.24  utilize at least the following procedures for decisions 
  8.25  involving identification, assessment, and educational placement 
  8.26  of children with a disability: 
  8.27     (a) Parents and guardians shall receive prior written 
  8.28  notice of:  
  8.29     (1) any proposed formal educational assessment or proposed 
  8.30  denial of a formal educational assessment of their child; 
  8.31     (2) a proposed placement of their child in, transfer from 
  8.32  or to, or denial of placement in a special education program; or 
  8.33     (3) the proposed provision, addition, denial or removal of 
  8.34  special education services for their child; 
  8.35     (b) The district shall not proceed with the initial formal 
  8.36  assessment of a child, the initial placement of a child in a 
  9.1   special education program, or the initial provision of special 
  9.2   education services for a child without the prior written consent 
  9.3   of the child's parent or guardian.  The refusal of a parent or 
  9.4   guardian to consent may be overridden by the decision in a 
  9.5   hearing held pursuant to clause (e) at the district's 
  9.6   initiative; 
  9.7      (c) Parents and guardians shall have an opportunity to meet 
  9.8   with appropriate district staff in at least one conciliation 
  9.9   conference if they object to any proposal of which they are 
  9.10  notified pursuant to clause (a).  The conciliation process shall 
  9.11  not be used to deny or delay a parent or guardian's right to a 
  9.12  due process hearing.  If the parent or guardian refuses efforts 
  9.13  by the district to conciliate the dispute with the school 
  9.14  district, the requirement of an opportunity for conciliation 
  9.15  shall be deemed to be satisfied; 
  9.16     (d) The commissioner shall establish a mediation process to 
  9.17  assist parents, school districts, or other parties to resolve 
  9.18  disputes arising out of the identification, assessment, or 
  9.19  educational placement of children with a disability.  The 
  9.20  mediation process must be offered as an informal alternative to 
  9.21  the due process hearing provided under clause (e), but must not 
  9.22  be used to deny or postpone the opportunity of a parent or 
  9.23  guardian to obtain a due process hearing. 
  9.24     (e) Parents, guardians, and the district shall have an 
  9.25  opportunity to obtain an impartial due process hearing initiated 
  9.26  and conducted by and in the school district responsible for 
  9.27  assuring that an appropriate program is provided in accordance 
  9.28  with state board rules, if the parent or guardian continues to 
  9.29  object to:  
  9.30     (1) a proposed formal educational assessment or proposed 
  9.31  denial of a formal educational assessment of their child; 
  9.32     (2) the proposed placement of their child in, or transfer 
  9.33  of their child to a special education program; 
  9.34     (3) the proposed denial of placement of their child in a 
  9.35  special education program or the transfer of their child from a 
  9.36  special education program; 
 10.1      (4) the proposed provision or addition of special education 
 10.2   services for their child; or 
 10.3      (5) the proposed denial or removal of special education 
 10.4   services for their child. 
 10.5      At least five calendar days before the hearing, the 
 10.6   objecting party shall provide the other party with a brief 
 10.7   written statement of the objection and the reasons for the 
 10.8   objection.  
 10.9      The hearing shall take place before an impartial hearing 
 10.10  officer mutually agreed to by the school board and the parent or 
 10.11  guardian.  If the school board and the parent or guardian are 
 10.12  unable to agree on a hearing officer, the school board shall 
 10.13  request the commissioner to appoint a hearing officer.  The 
 10.14  hearing officer shall not be a school board member or employee 
 10.15  of the school district where the child resides or of the child's 
 10.16  school district of residence, an employee of any other public 
 10.17  agency involved in the education or care of the child, or any 
 10.18  person with a personal or professional interest which would 
 10.19  conflict with the person's objectivity at the hearing.  A person 
 10.20  who otherwise qualifies as a hearing officer is not an employee 
 10.21  of the district solely because the person is paid by the 
 10.22  district to serve as a hearing officer.  If the hearing officer 
 10.23  requests an independent educational assessment of a child, the 
 10.24  cost of the assessment shall be at district expense.  The 
 10.25  proceedings shall be recorded and preserved, at the expense of 
 10.26  the school district, pending ultimate disposition of the action. 
 10.27     (f) The decision of the hearing officer pursuant to clause 
 10.28  (e) shall be rendered not more than 45 calendar days from the 
 10.29  date of the receipt of the request for the hearing.  A hearing 
 10.30  officer may grant specific extensions of time beyond the 45-day 
 10.31  period at the request of either party.  The decision of the 
 10.32  hearing officer shall be binding on all parties unless appealed 
 10.33  to the hearing review officer by the parent, guardian, or the 
 10.34  school board of the district where the child resides pursuant to 
 10.35  clause (g). 
 10.36     The local decision shall: 
 11.1      (1) be in writing; 
 11.2      (2) state the controlling facts upon which the decision is 
 11.3   made in sufficient detail to apprise the parties and the hearing 
 11.4   review officer of the basis and reason for the decision; 
 11.5      (3) state whether the special education program or special 
 11.6   education services appropriate to the child's needs can be 
 11.7   reasonably provided within the resources available to the 
 11.8   responsible district or districts; 
 11.9      (4) state the amount and source of any additional district 
 11.10  expenditure necessary to implement the decision; and 
 11.11     (5) be based on the standards set forth in subdivision 3a 
 11.12  and the rules of the state board. 
 11.13     (g) Any local decision issued pursuant to clauses (e) and 
 11.14  (f) may be appealed to the hearing review officer within 30 
 11.15  calendar days of receipt of that written decision, by the 
 11.16  parent, guardian, or the school board of the district 
 11.17  responsible for assuring that an appropriate program is provided 
 11.18  in accordance with state board department of education rules. 
 11.19     If the decision is appealed, a written transcript of the 
 11.20  hearing shall be made by the school district and shall be 
 11.21  accessible to the parties involved within five calendar days of 
 11.22  the filing of the appeal.  The hearing review officer shall 
 11.23  issue a final independent decision based on an impartial review 
 11.24  of the local decision and the entire record within 30 calendar 
 11.25  days after the filing of the appeal.  The hearing review officer 
 11.26  shall seek additional evidence if necessary and may afford the 
 11.27  parties an opportunity for written or oral argument; provided 
 11.28  any hearing held to seek additional evidence shall be an 
 11.29  impartial due process hearing but shall be deemed not to be a 
 11.30  contested case hearing for purposes of chapter 14.  The hearing 
 11.31  review officer may grant specific extensions of time beyond the 
 11.32  30-day period at the request of any party. 
 11.33     The final decision shall: 
 11.34     (1) be in writing; 
 11.35     (2) include findings and conclusions; and 
 11.36     (3) be based upon the standards set forth in subdivision 3a 
 12.1   and in the rules of the state board. 
 12.2      (h) The decision of the hearing review officer shall be 
 12.3   final unless appealed by the parent or guardian or school board 
 12.4   to the court of appeals.  The judicial review shall be in 
 12.5   accordance with chapter 14.  
 12.6      (i) The commissioner of education shall select an 
 12.7   individual who has the qualifications enumerated in this 
 12.8   paragraph to serve as the hearing review officer: 
 12.9      (1) the individual must be knowledgeable and impartial; 
 12.10     (2) the individual must not have a personal interest in or 
 12.11  specific involvement with the student who is a party to the 
 12.12  hearing; 
 12.13     (3) the individual must not have been employed as an 
 12.14  administrator by the district that is a party to the hearing; 
 12.15     (4) the individual must not have been involved in the 
 12.16  selection of the administrators of the district that is a party 
 12.17  to the hearing; 
 12.18     (5) the individual must not have a personal, economic, or 
 12.19  professional interest in the outcome of the hearing other than 
 12.20  the proper administration of the federal and state laws, rules, 
 12.21  and policies; 
 12.22     (6) the individual must not have substantial involvement in 
 12.23  the development of a state or local policy or procedures that 
 12.24  are challenged in the appeal; and 
 12.25     (7) the individual is not a current employee or board 
 12.26  member of a Minnesota public school district, education 
 12.27  district, intermediate unit or regional education agency, the 
 12.28  state department of education, the state board of education, or 
 12.29  a parent advocacy organization or group.  
 12.30     (j) In all appeals, the parent or guardian of the pupil 
 12.31  with a disability or the district that is a party to the hearing 
 12.32  may challenge the impartiality or competence of the proposed 
 12.33  hearing review officer by applying to the state board of 
 12.34  education appealing under sections 14.50 to 14.53.  
 12.35     (k) Pending the completion of proceedings pursuant to this 
 12.36  subdivision, unless the district and the parent or guardian of 
 13.1   the child agree otherwise, the child shall remain in the child's 
 13.2   current educational placement and shall not be denied initial 
 13.3   admission to school. 
 13.4      (l) The child's school district of residence, a resident 
 13.5   district, and providing district shall receive notice of and may 
 13.6   be a party to any hearings or appeals under this subdivision. 
 13.7      Sec. 13.  Minnesota Statutes 1994, section 120.17, 
 13.8   subdivision 7a, is amended to read: 
 13.9      Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
 13.10  Responsibility for special instruction and services for a 
 13.11  visually disabled or hearing impaired child attending the 
 13.12  Minnesota state academy for the deaf or the Minnesota state 
 13.13  academy for the blind shall be determined in the following 
 13.14  manner: 
 13.15     (a) The legal residence of the child shall be the school 
 13.16  district in which the child's parent or guardian resides. 
 13.17     (b) When it is determined pursuant to section 128A.05, 
 13.18  subdivision 1 or 2, that the child is entitled to attend either 
 13.19  school, the state board commissioner shall provide the 
 13.20  appropriate educational program for the child.  The state board 
 13.21  commissioner shall make a tuition charge to the child's district 
 13.22  of residence for the cost of providing the program.  The amount 
 13.23  of tuition charged shall not exceed the basic revenue of the 
 13.24  district for that child, for the amount of time the child is in 
 13.25  the program.  For purposes of this subdivision, "basic revenue" 
 13.26  has the meaning given it in section 124A.22, subdivision 2.  The 
 13.27  district of the child's residence shall pay the tuition and may 
 13.28  claim general education aid for the child.  Tuition received by 
 13.29  the state board, except for tuition received under clause (c), 
 13.30  shall be deposited in the state treasury as provided in clause 
 13.31  (g). 
 13.32     (c) In addition to the tuition charge allowed in clause 
 13.33  (b), the academies may charge the child's district of residence 
 13.34  for the academy's unreimbursed cost of providing an 
 13.35  instructional aide assigned to that child, if that aide is 
 13.36  required by the child's individual education plan.  Tuition 
 14.1   received under this clause must be used by the academies to 
 14.2   provide the required service. 
 14.3      (d) When it is determined that the child can benefit from 
 14.4   public school enrollment but that the child should also remain 
 14.5   in attendance at the applicable school, the school district 
 14.6   where the institution is located shall provide an appropriate 
 14.7   educational program for the child and shall make a tuition 
 14.8   charge to the state board for the actual cost of providing the 
 14.9   program, less any amount of aid received pursuant to section 
 14.10  124.32.  The state board commissioner shall pay the tuition and 
 14.11  other program costs including the unreimbursed transportation 
 14.12  costs.  Aids for children with a disability shall be paid to the 
 14.13  district providing the special instruction and services.  
 14.14  Special transportation shall be provided by the district 
 14.15  providing the educational program and the state shall reimburse 
 14.16  such district within the limits provided by law.  
 14.17     (e) Notwithstanding the provisions of clauses (b) and (d), 
 14.18  the state board commissioner may agree to make a tuition charge 
 14.19  for less than the amount specified in clause (b) for pupils 
 14.20  attending the applicable school who are residents of the 
 14.21  district where the institution is located and who do not board 
 14.22  at the institution, if that district agrees to make a tuition 
 14.23  charge to the state board for less than the amount specified in 
 14.24  clause (d) for providing appropriate educational programs to 
 14.25  pupils attending the applicable school. 
 14.26     (f) Notwithstanding the provisions of clauses (b) and (d), 
 14.27  the state board commissioner may agree to supply staff from the 
 14.28  Minnesota state academy for the deaf and the Minnesota state 
 14.29  academy for the blind to participate in the programs provided by 
 14.30  the district where the institutions are located when the 
 14.31  programs are provided to students in attendance at the state 
 14.32  schools.  
 14.33     (g) On May 1 of each year, the state board commissioner 
 14.34  shall count the actual number of Minnesota resident kindergarten 
 14.35  and elementary students and the actual number of Minnesota 
 14.36  resident secondary students enrolled and receiving education 
 15.1   services at the Minnesota state academy for the deaf and the 
 15.2   Minnesota state academy for the blind.  The state board 
 15.3   commissioner shall deposit in the state treasury an amount equal 
 15.4   to all tuition received less:  
 15.5      (1) the total number of students on May 1 less 175, times 
 15.6   the ratio of the number of kindergarten and elementary students 
 15.7   to the total number of students on May 1, times the general 
 15.8   education formula allowance; plus 
 15.9      (2) the total number of students on May 1 less 175, times 
 15.10  the ratio of the number of secondary students on May 1 to the 
 15.11  total number of students on May 1, times 1.3, times the general 
 15.12  education formula allowance.  
 15.13     (h) The sum provided by the calculation in clause (g), 
 15.14  subclauses (1) and (2), must be deposited in the state treasury 
 15.15  and credited to the general operation account of the academy for 
 15.16  the deaf and the academy for the blind.  
 15.17     (i) There is annually appropriated to the department of 
 15.18  education for the Faribault academies the tuition amounts 
 15.19  received and credited to the general operation account of the 
 15.20  academies under this section.  A balance in an appropriation 
 15.21  under this paragraph does not cancel but is available in 
 15.22  successive fiscal years. 
 15.23     Sec. 14.  Minnesota Statutes 1994, section 120.65, is 
 15.24  amended to read: 
 15.25     120.65 [ESTABLISHMENT AND APPROVAL.] 
 15.26     The state board commissioner of education shall: 
 15.27     (1) establish standards and requirements for the 
 15.28  qualification of districts which may operate on a flexible 
 15.29  learning year basis; 
 15.30     (2) establish standards and evaluation criteria for 
 15.31  flexible learning year programs; 
 15.32     (3) prepare and distribute all necessary forms for 
 15.33  application by any district for state authorization for a 
 15.34  flexible learning year program; 
 15.35     (4) review the proposed flexible learning year program of 
 15.36  any qualified district as to conformity to standards and the 
 16.1   evaluation of appropriateness of priorities, workability of 
 16.2   procedure and overall value; 
 16.3      (5) approve or disapprove proposed flexible learning year 
 16.4   programs.  
 16.5      Sec. 15.  Minnesota Statutes 1994, section 120.66, is 
 16.6   amended to read: 
 16.7      120.66 [POWERS AND DUTIES OF THE STATE BOARD COMMISSIONER 
 16.8   OF EDUCATION.] 
 16.9      Subdivision 1.  The state board commissioner of education 
 16.10  shall: 
 16.11     (1) Promulgate rules necessary to the operation of sections 
 16.12  120.59 to 120.67; 
 16.13     (2) Cooperate with and provide supervision of flexible 
 16.14  learning year programs to determine compliance with the 
 16.15  provisions of sections 120.59 to 120.67, the state board 
 16.16  department standards and qualifications, and the proposed 
 16.17  program as submitted and approved; 
 16.18     (3) Provide any necessary adjustments of (a) attendance and 
 16.19  membership computations and (b) the dates and percentages of 
 16.20  apportionment of state aids; 
 16.21     (4) Consistent with the definition of "average daily 
 16.22  membership" in section 124.17, subdivision 2, furnish the board 
 16.23  of a district implementing a flexible learning year program with 
 16.24  a formula for computing average daily membership.  This formula 
 16.25  shall be computed so that tax levies to be made by the district, 
 16.26  state aids to be received by the district, and any and all other 
 16.27  formulas based upon average daily membership are not affected 
 16.28  solely as a result of adopting this plan of instruction. 
 16.29     Subd. 2.  Sections 120.59 to 120.67 shall not be construed 
 16.30  to authorize the state board commissioner to require the 
 16.31  establishment of a flexible learning year program in any 
 16.32  district in which the board has not voted to establish, 
 16.33  maintain, and operate such a program. 
 16.34     Sec. 16.  Minnesota Statutes 1994, section 121.02, is 
 16.35  amended to read: 
 16.36     121.02 [STATE BOARD DEPARTMENT OF EDUCATION; STATE 
 17.1   EDUCATION ADVISORY COUNCIL.] 
 17.2      Subdivision 1.  [STATE DEPARTMENT OF EDUCATION.] A state 
 17.3   department of education is hereby created which shall be 
 17.4   maintained under the direction of a state board the commissioner 
 17.5   of education composed of nine representative citizens of the 
 17.6   state, at least one of whom shall reside in each congressional 
 17.7   district in the state. 
 17.8      Of the nine representative citizens of the state who are 
 17.9   appointed to the state board of education not less than three 
 17.10  members thereof shall previously thereto have served as an 
 17.11  elected member of a board of education of a school district 
 17.12  however organized. 
 17.13     The members of the state board shall be appointed by the 
 17.14  governor, with the advice and consent of the senate.  One member 
 17.15  shall be chosen annually as president, but no member shall serve 
 17.16  as president more than three consecutive years.  The state board 
 17.17  shall hold its annual meeting in August.  It shall hold meetings 
 17.18  on dates and at places as it designates.  No member shall hold 
 17.19  any public office, or represent or be employed by any board of 
 17.20  education or school district, public or private, and shall not 
 17.21  voluntarily have any personal financial interest in any contract 
 17.22  with a board of education or school district, or be engaged in 
 17.23  any capacity where a conflict of interest may arise. 
 17.24     Subd. 2a.  [STATE EDUCATION ADVISORY COUNCIL.] A state 
 17.25  education advisory council is created and composed of nine 
 17.26  representative citizens of the state, at least one of whom shall 
 17.27  reside in each congressional district in the state.  The council 
 17.28  members shall be appointed by the governor and shall serve at 
 17.29  the pleasure of the governor.  One member shall be chosen 
 17.30  annually as president, but no member shall serve as president 
 17.31  more than three consecutive years.  No member shall hold any 
 17.32  public office or represent or be employed by any board of 
 17.33  education or school district, public or private, and shall not 
 17.34  voluntarily have any personal financial interest in any contract 
 17.35  with a board of education or school district or be engaged in 
 17.36  any capacity where a conflict of interest may arise.  The 
 18.1   council shall meet at least monthly and shall advise the 
 18.2   governor, legislature, and commissioner of education on 
 18.3   education issues of statewide importance and interest.  At the 
 18.4   council's request, the commissioner may assign department of 
 18.5   education staff or other resources to assist the council in its 
 18.6   duties.  The commissioner shall explain to the council in 
 18.7   writing any reason for delaying or refusing a request.  The 
 18.8   membership terms, compensation, removal of members, and filling 
 18.9   of vacancies on the board shall be as provided in 
 18.10  section 15.0575 15.059, except that members shall serve 
 18.11  three-year terms. 
 18.12     Subd. 3.  If a member ceases to be a resident of the 
 18.13  congressional district from which appointed the member shall 
 18.14  cease to be a member of the board council.  The governor shall 
 18.15  appoint a successor within six months thereafter. 
 18.16     Subd. 4.  [BOARD STAFF.] The state board may appoint a 
 18.17  staff assistant who shall serve in the unclassified service. 
 18.18     Sec. 17.  Minnesota Statutes 1994, section 121.05, is 
 18.19  amended to read: 
 18.20     121.05 [CONTRACTS WITH FEDERAL GOVERNMENT.] 
 18.21     Subdivision 1.  [RULES GOVERNING.] The state board 
 18.22  commissioner of education shall prescribe rules under which 
 18.23  contracts, agreements, or arrangements may be made with agencies 
 18.24  of the federal government for funds, services, commodities, or 
 18.25  equipment to be made available to the public tax-supported 
 18.26  schools, school systems and educational institutions under the 
 18.27  supervision or control of the state board commissioner of 
 18.28  education.  
 18.29     Subd. 2.  [RULES PRESCRIBED BY STATE BOARD COMMISSIONER.] 
 18.30  All contracts, agreements or arrangements made by public 
 18.31  tax-supported schools, school systems or educational 
 18.32  institutions under the supervision or control of the state board 
 18.33  department of education involving funds, services, commodities, 
 18.34  or equipment which may be provided by agencies of the federal 
 18.35  government shall be entered into in accordance with rules 
 18.36  prescribed by the state board commissioner and in no other 
 19.1   manner.  
 19.2      Sec. 18.  Minnesota Statutes 1994, section 121.14, is 
 19.3   amended to read: 
 19.4      121.14 [RECOMMENDATIONS; BUDGET.] 
 19.5      The state board and the commissioner of education shall 
 19.6   recommend to the governor and legislature such modification and 
 19.7   unification of laws relating to the state system of education as 
 19.8   shall make those laws more readily understood and more effective 
 19.9   in execution.  The commissioner of education shall prepare a 
 19.10  biennial education budget which shall be submitted to the 
 19.11  governor and legislature, such budget to contain a complete 
 19.12  statement of finances pertaining to the maintenance of the state 
 19.13  department and to the distribution of state aid.  
 19.14     Sec. 19.  Minnesota Statutes 1994, section 121.148, 
 19.15  subdivision 3, is amended to read: 
 19.16     Subd. 3.  [NEGATIVE REVIEW AND COMMENT.] (a) If the 
 19.17  commissioner submits a negative review and comment for a 
 19.18  proposal according to section 121.15, the following steps must 
 19.19  be taken: 
 19.20     (1) the commissioner must notify the school board of the 
 19.21  proposed negative review and comment and schedule a public 
 19.22  meeting within 60 days of the notification within that school 
 19.23  district to discuss the proposed negative review and comment on 
 19.24  the school facility; and 
 19.25     (2) the school board shall appoint an advisory task force 
 19.26  of up to five members to advise the school board and the 
 19.27  commissioner on the advantages, disadvantages, and alternatives 
 19.28  to the proposed facility at the public meeting.  One member of 
 19.29  the advisory task force must also be a member of the county 
 19.30  facilities group. 
 19.31     (b) After attending the public meeting, the commissioner 
 19.32  shall reconsider the proposal.  If the commissioner submits a 
 19.33  negative review and comment, the school board may appeal that 
 19.34  decision to the state board of education under sections 14.50 to 
 19.35  14.53.  The state board of education may either uphold the 
 19.36  commissioner's negative review and comment or instruct the 
 20.1   commissioner to submit a positive or unfavorable review and 
 20.2   comment on the proposed facility. 
 20.3      (c) A school board may not proceed with construction if the 
 20.4   state board of education upholds the commissioner's negative 
 20.5   review and comment is upheld or if the commissioner's negative 
 20.6   review and comment is not appealed. 
 20.7      Sec. 20.  Minnesota Statutes 1994, section 121.16, 
 20.8   subdivision 1, is amended to read: 
 20.9      Subdivision 1.  The department shall be under the 
 20.10  administrative control of the commissioner of education which 
 20.11  office is established.  The commissioner shall be the secretary 
 20.12  of the state board.  The governor shall appoint the commissioner 
 20.13  under the provisions of section 15.06.  
 20.14     The commissioner shall be a person who possesses 
 20.15  educational attainment and breadth of experience in the 
 20.16  administration of public education and of the finances 
 20.17  pertaining thereto commensurate with the spirit and intent of 
 20.18  this code.  Notwithstanding any other law to the contrary, the 
 20.19  commissioner may appoint two deputy commissioners who shall 
 20.20  serve in the unclassified service.  The commissioner shall also 
 20.21  appoint other employees as may be necessary for the organization 
 20.22  of the department.  The commissioner shall perform such duties 
 20.23  as the law and the rules of the state board may provide and be 
 20.24  held responsible for the efficient administration and discipline 
 20.25  of the department.  The commissioner shall make recommendations 
 20.26  to the board and be charged with the execution of powers and 
 20.27  duties which the state board may prescribe, from time to time, 
 20.28  to promote public education in the state, to safeguard the 
 20.29  finances pertaining thereto, and to enable the state board to 
 20.30  carry out its duties.  
 20.31     Sec. 21.  Minnesota Statutes 1994, section 121.16, is 
 20.32  amended by adding a subdivision to read: 
 20.33     Subd. 4.  [UNIFORM SYSTEM OF RECORDS AND OF ACCOUNTING.] 
 20.34  The commissioner of education shall prepare a uniform system of 
 20.35  records for public schools, require reports from superintendents 
 20.36  and principals of schools, teachers, school officers, and the 
 21.1   chief officers of public and other educational institutions, to 
 21.2   give such facts as may deem of public value. 
 21.3      Sec. 22.  Minnesota Statutes 1994, section 121.16, is 
 21.4   amended by adding a subdivision to read: 
 21.5      Subd. 5.  [LICENSURE RULES.] The commissioner may adopt 
 21.6   rules relating to licensure of school personnel not licensed by 
 21.7   the board of teaching. 
 21.8      Sec. 23.  Minnesota Statutes 1994, section 121.16, is 
 21.9   amended by adding a subdivision to read: 
 21.10     Subd. 6.  [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 
 21.11  commissioner of finance shall establish for the department of 
 21.12  education a revolving fund for deposit of storage and handling 
 21.13  charges paid by recipients of donated foods shipped by the 
 21.14  school lunch section of the department of education.  These 
 21.15  funds are to be used only to pay storage and related charges as 
 21.16  they are incurred for United States Department of Agriculture 
 21.17  foods. 
 21.18     The commissioner of finance shall also establish a 
 21.19  revolving fund for the department of education to deposit 
 21.20  charges paid by recipients of processed commodities and for any 
 21.21  authorized appropriation transfers for the purpose of this 
 21.22  subdivision.  These funds are to be used only to pay for 
 21.23  commodity processing and related charges as they are incurred 
 21.24  using United States Department of Agriculture donated 
 21.25  commodities. 
 21.26     Sec. 24.  Minnesota Statutes 1994, section 121.16, is 
 21.27  amended by adding a subdivision to read: 
 21.28     Subd. 7.  [CERTAIN LICENSURE RULES.] The commissioner of 
 21.29  education shall adopt and maintain as its rules for licensure of 
 21.30  adult vocational education teachers, supervisory, and support 
 21.31  personnel the rules of the state board of technical colleges.  
 21.32     Sec. 25.  Minnesota Statutes 1994, section 121.48, is 
 21.33  amended to read: 
 21.34     121.48 [PURCHASE OF ANNUITY FOR EMPLOYEES.] 
 21.35     Subdivision 1.  At the request of an employee, the state 
 21.36  board commissioner of education may negotiate and purchase an 
 22.1   individual annuity contract from a company licensed to do 
 22.2   business in the state of Minnesota for an employee for 
 22.3   retirement or other purposes and may allocate a portion of the 
 22.4   compensation otherwise payable to the employee as salary for the 
 22.5   purpose of paying the entire premium due or to become due under 
 22.6   such contract.  The allocation shall be made in a manner which 
 22.7   will qualify the annuity premiums, or a portion thereof, for the 
 22.8   benefit afforded under section 403(b) of the current federal 
 22.9   Internal Revenue Code or any equivalent provision of subsequent 
 22.10  federal income tax law. The employee shall own such contract and 
 22.11  the employee's rights thereunder shall be nonforfeitable except 
 22.12  for failure to pay premiums. 
 22.13     Subd. 2.  All amounts so allocated shall be deposited in an 
 22.14  annuity account which is hereby established in the state 
 22.15  treasury.  There is annually appropriated from the annuity 
 22.16  account in the state treasury to the state board commissioner of 
 22.17  education all moneys deposited therein for the payment of 
 22.18  annuity premiums when due or for other application in accordance 
 22.19  with the salary agreement entered into between the employee and 
 22.20  the state board commissioner of education.  The moneys in the 
 22.21  annuity account in the state treasury are not subject to the 
 22.22  budget, allotment, and incumbrance system provided for in 
 22.23  chapter 16A and any act amendatory thereof. 
 22.24     Sec. 26.  Minnesota Statutes 1994, section 121.585, 
 22.25  subdivision 2, is amended to read: 
 22.26     Subd. 2.  [STATE BOARD COMMISSIONER DESIGNATION.] An area 
 22.27  learning center designated by the state commissioner of 
 22.28  education must be a site.  To be designated, a district or 
 22.29  center must demonstrate to the commissioner of education that it 
 22.30  will: 
 22.31     (1) provide a program of instruction that permits pupils to 
 22.32  receive instruction throughout the entire year; and 
 22.33     (2) maintain a record system that, for purposes of section 
 22.34  124.17, permits identification of membership attributable to 
 22.35  pupils participating in the program.  The record system and 
 22.36  identification must ensure that the program will not have the 
 23.1   effect of increasing the total number of pupil units 
 23.2   attributable to an individual pupil as a result of a learning 
 23.3   year program.  
 23.4      Sec. 27.  Minnesota Statutes 1994, section 121.585, 
 23.5   subdivision 8, is amended to read: 
 23.6      Subd. 8.  [EXEMPTION.] To operate the pilot program, 
 23.7   the state board commissioner of education may exempt the 
 23.8   district from specific rules relating to student and financial 
 23.9   accounting, reporting, and revenue computation.  
 23.10     Sec. 28.  Minnesota Statutes 1994, section 121.612, 
 23.11  subdivision 2, is amended to read: 
 23.12     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
 23.13  Minnesota academic excellence foundation.  The purpose of the 
 23.14  foundation shall be to promote academic excellence in Minnesota 
 23.15  public and nonpublic schools and communities through 
 23.16  public-private partnerships.  The foundation shall be a 
 23.17  nonprofit organization.  The board of directors of the 
 23.18  foundation and foundation activities are under the direction of 
 23.19  the state board commissioner of education. 
 23.20     Sec. 29.  Minnesota Statutes 1994, section 121.612, 
 23.21  subdivision 3, is amended to read: 
 23.22     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
 23.23  the foundation shall consist of the commissioner of education, a 
 23.24  member of the state board of education education advisory 
 23.25  council selected by the state board council who shall serve as 
 23.26  chair and 20 members to be appointed by the governor.  Of the 20 
 23.27  members appointed by the governor, eight shall represent a 
 23.28  variety of education groups and 12 shall represent a variety of 
 23.29  business groups.  The commissioner of education shall serve as 
 23.30  secretary for the board of directors and provide administrative 
 23.31  support to the foundation.  An executive committee of the 
 23.32  foundation board composed of the board officers and chairs of 
 23.33  board committees, may only advise and make recommendations to 
 23.34  the foundation board. 
 23.35     Sec. 30.  Minnesota Statutes 1994, section 121.612, 
 23.36  subdivision 6, is amended to read: 
 24.1      Subd. 6.  [CONTRACTS.] The foundation board shall review 
 24.2   and approve each contract of the board.  Each contract of the 
 24.3   foundation board shall be subject to the same review and 
 24.4   approval procedures as a contract of the state board department 
 24.5   of education. 
 24.6      Sec. 31.  Minnesota Statutes 1994, section 121.612, 
 24.7   subdivision 7, is amended to read: 
 24.8      Subd. 7.  [FOUNDATION STAFF.] (a) The state board 
 24.9   commissioner shall appoint the executive director and other 
 24.10  staff who shall perform duties and have responsibilities solely 
 24.11  related to the foundation.  
 24.12     (b) As part of the annual plan of work, the foundation, 
 24.13  under the direction of the state board commissioner, may appoint 
 24.14  up to three employees.  The employees appointed under this 
 24.15  paragraph are not state employees under chapter 43A, but are 
 24.16  covered under section 3.736.  At the foundation board's 
 24.17  discretion, the employees may participate in the state health 
 24.18  and state insurance plans for employees in unclassified 
 24.19  service.  The employees shall be supervised by the executive 
 24.20  director. 
 24.21     Sec. 32.  Minnesota Statutes 1994, section 121.612, 
 24.22  subdivision 9, is amended to read: 
 24.23     Subd. 9.  [REPORT.] The board of directors of the 
 24.24  foundation shall submit an annual report to the state board 
 24.25  commissioner of education on the progress of its activities.  
 24.26  The annual report shall contain a financial report for the 
 24.27  preceding year, including all receipts and expenditures of the 
 24.28  foundation. 
 24.29     Sec. 33.  Minnesota Statutes 1994, section 121.914, 
 24.30  subdivision 3, is amended to read: 
 24.31     Subd. 3.  The commissioner shall establish a uniform 
 24.32  auditing or other verification procedure for school districts to 
 24.33  determine whether a statutory operating debt exists in any 
 24.34  Minnesota school district as of June 30, 1977.  This procedure 
 24.35  shall also identify all interfund transfers made during fiscal 
 24.36  year 1977 from a fund included in computing statutory operating 
 25.1   debt to a fund not included in computing statutory operating 
 25.2   debt.  The standards for this uniform auditing or verification 
 25.3   procedure shall be promulgated by the state board pursuant to 
 25.4   chapter 14.  If a school district applies to the commissioner 
 25.5   for a statutory operating debt verification or if the unaudited 
 25.6   financial statement for the school year ending June 30, 1977 
 25.7   reveals that a statutory operating debt might exist, the 
 25.8   commissioner shall require a verification of the amount of the 
 25.9   statutory operating debt which actually does exist. 
 25.10     Sec. 34.  Minnesota Statutes 1994, section 122.23, 
 25.11  subdivision 3, is amended to read: 
 25.12     Subd. 3.  A supporting statement to accompany the plat 
 25.13  shall be prepared by the county auditor.  The statement shall 
 25.14  contain: 
 25.15     (a) The adjusted net tax capacity of property in the 
 25.16  proposed district, 
 25.17     (b) If a part of any district is included in the proposed 
 25.18  new district, the adjusted net tax capacity of the property and 
 25.19  the approximate number of pupils residing in the part of the 
 25.20  district included shall be shown separately and the adjusted net 
 25.21  tax capacity of the property and the approximate number of 
 25.22  pupils residing in the part of the district not included shall 
 25.23  also be shown, 
 25.24     (c) The reasons for the proposed consolidation, including a 
 25.25  statement that at the time the plat is submitted to the state 
 25.26  board commissioner of education, no proceedings are pending to 
 25.27  dissolve any district involved in the plat unless all of the 
 25.28  district to be dissolved and all of each district to which 
 25.29  attachment is proposed is included in the plat, 
 25.30     (d) A statement showing that the jurisdictional fact 
 25.31  requirements of subdivision 1 are met by the proposal, 
 25.32     (e) Any proposal contained in the resolution or petition 
 25.33  regarding the disposition of the bonded debt, outstanding energy 
 25.34  loans made according to section 216C.37 or sections 298.292 to 
 25.35  298.298, capital loan obligations, or referendum levies of 
 25.36  component districts, 
 26.1      (f) Any other information the county auditor desires to 
 26.2   include, and 
 26.3      (g) The signature of the county auditor. 
 26.4      Sec. 35.  Minnesota Statutes 1994, section 122.242, 
 26.5   subdivision 1, is amended to read: 
 26.6      Subdivision 1.  [ADOPTION AND STATE BOARD COMMISSIONER 
 26.7   REVIEW.] Each school board must adopt, by resolution, a plan for 
 26.8   cooperation and combination.  The plan must address each item in 
 26.9   this section.  The plan must be specific for any item that will 
 26.10  occur within three years and may be general or set forth 
 26.11  alternative resolutions for an item that will occur in more than 
 26.12  three years.  The plan must be submitted to the state board 
 26.13  commissioner of education for review and comment.  Significant 
 26.14  modifications and specific resolutions of items must be 
 26.15  submitted to the state board commissioner for review and 
 26.16  comment.  In the official newspaper of each district proposed 
 26.17  for combination, the school board must publish at least a 
 26.18  summary of the adopted plans, each significant modification and 
 26.19  resolution of items, and each state board review and comment. 
 26.20     Sec. 36.  Minnesota Statutes 1994, section 122.242, 
 26.21  subdivision 2, is amended to read: 
 26.22     Subd. 2.  [RULE EXEMPTIONS.] The plan must identify the 
 26.23  rules of the state board department of education from which the 
 26.24  district intends to request exemption, according to Minnesota 
 26.25  Rules, part 3500.1000.  The plan may provide information about 
 26.26  state laws that deter or impair cooperation or combination.  
 26.27     Sec. 37.  Minnesota Statutes 1994, section 123.38, 
 26.28  subdivision 3, is amended to read: 
 26.29     Subd. 3.  The board may enter into a contract providing for 
 26.30  the payment of cash benefits or the rendering or payment of 
 26.31  hospital and medical benefits, or both to school children 
 26.32  injured while participating in activities of the school, such 
 26.33  contract to make the payment of such benefits or the rendering 
 26.34  thereof the direct and sole obligation of the association or 
 26.35  company entering into such contract with the district. 
 26.36     If the board deems it advisable, it may authorize employees 
 27.1   to collect fees from the pupils enrolled in said school who are 
 27.2   to be or are covered by such contract, and to make payment of 
 27.3   the premium or other charge for such contract or protection.  
 27.4   The payment of such premium or other charge may be made from 
 27.5   funds received from the federal government or from the state or 
 27.6   any governmental subdivision thereof, or from funds derived by a 
 27.7   tax levy or the issuance of bonds. 
 27.8      The payment of any fees, premium or other charge by such 
 27.9   child shall not thereby make the district liable for any 
 27.10  injuries incurred from such school activities. 
 27.11     The state board commissioner of education may purchase 
 27.12  medical insurance coverage for the benefit of students of the 
 27.13  Minnesota state academy for the deaf or the Minnesota state 
 27.14  academy for the blind in the same manner and with the same 
 27.15  effect as a school district board may do for its students under 
 27.16  this subdivision.  
 27.17     Sec. 38.  Minnesota Statutes 1994, section 123.39, 
 27.18  subdivision 8a, is amended to read: 
 27.19     Subd. 8a.  Notwithstanding the provisions of section 
 27.20  221.021, any public school district or school bus contractor 
 27.21  providing transportation services to a school district on a 
 27.22  regular basis in this state may operate school buses, excluding 
 27.23  motor coach buses, for the purpose of providing transportation 
 27.24  to nonpupils of the school district attending school events, as 
 27.25  defined in section 123.38, subdivision 2a or 2b, provided that 
 27.26  no carrier having a charter carrier permit has its principal 
 27.27  office and place of business or bus garage within 12 miles of 
 27.28  the principal office of the school district.  School district 
 27.29  owned buses and the operators thereof shall otherwise comply 
 27.30  with the provisions of this section and the rules of the state 
 27.31  board of education department of public safety and shall be 
 27.32  insured in at least the amounts stated in section 466.04, 
 27.33  subdivision 1.  In all cases the total cost of providing such 
 27.34  services, as determined by sound accounting procedures, shall be 
 27.35  paid by charges made against those using the buses. 
 27.36     Sec. 39.  Minnesota Statutes 1994, section 123.58, 
 28.1   subdivision 9, is amended to read: 
 28.2      Subd. 9.  [FINANCIAL SUPPORT FOR THE EDUCATIONAL 
 28.3   COOPERATIVE SERVICE UNITS.] (a) Financial support for ECSU 
 28.4   programs and services shall be provided by participating local 
 28.5   school districts and nonpublic school administrative units with 
 28.6   private, state and federal financial support supplementing as 
 28.7   available.  The ECSU board of directors may, in each year, for 
 28.8   the purpose of paying any administrative, planning, operating, 
 28.9   or capital expenses incurred or to be incurred, assess and 
 28.10  certify to each participating school district and nonpublic 
 28.11  school administrative unit its proportionate share of any and 
 28.12  all expenses.  This share shall be based upon the extent of 
 28.13  participation by each district or nonpublic school 
 28.14  administrative unit and shall be in the form of a service fee.  
 28.15  Each participating district and nonpublic school administrative 
 28.16  unit shall remit its assessment to the ECSU board as provided in 
 28.17  the ECSU bylaws.  The assessments shall be paid within the 
 28.18  maximum levy limitations of each participating district.  No 
 28.19  participating school district or nonpublic school administrative 
 28.20  unit shall have any additional liability for the debts or 
 28.21  obligations of the ECSU except that assessment which has been 
 28.22  certified as its proportionate share any other liability the 
 28.23  school district or nonpublic school administrative unit assumes 
 28.24  under section 123.35, subdivision 19b. 
 28.25     (b) Any property acquired by the ECSU board is public 
 28.26  property to be used for essential public and governmental 
 28.27  purposes which shall be exempt from all taxes and special 
 28.28  assessments levied by a city, county, state or political 
 28.29  subdivision thereof.  If the ECSU is dissolved, its property 
 28.30  must be distributed to the member public school districts at the 
 28.31  time of the dissolution. 
 28.32     (c) A school district or nonpublic school administrative 
 28.33  unit may elect to withdraw from participation in the ECSU by a 
 28.34  majority vote of its full board membership and upon compliance 
 28.35  with the applicable withdrawal provisions of the ECSU 
 28.36  organizational agreement.  The withdrawal shall be effective on 
 29.1   the June 30 following receipt by the board of directors of 
 29.2   written notification of the withdrawal by February 1 of the same 
 29.3   year.  Notwithstanding the withdrawal, the proportionate share 
 29.4   of any expenses already certified to the withdrawing school 
 29.5   district or nonpublic school administrative unit for the ECSU 
 29.6   shall be paid to the ECSU board. 
 29.7      (d) The ECSU is a public corporation and agency and its 
 29.8   board of directors may make application for, accept and expend 
 29.9   private, state and federal funds that are available for programs 
 29.10  of educational benefit approved by the commissioner in 
 29.11  accordance with rules adopted by the state board of education 
 29.12  pursuant to chapter 14.  The commissioner shall not distribute 
 29.13  special state aid or federal aid directly to an ECSU in lieu of 
 29.14  distribution to a school district within the ECSU which would 
 29.15  otherwise qualify for and be entitled to this aid without the 
 29.16  consent of the school board of that district. 
 29.17     (e) The ECSU is a public corporation and agency and as 
 29.18  such, no earnings or interests of the ECSU may inure to the 
 29.19  benefit of an individual or private entity. 
 29.20     Sec. 40.  Minnesota Statutes 1994, section 123.933, 
 29.21  subdivision 1, is amended to read: 
 29.22     Subdivision 1.  The state board of education shall 
 29.23  promulgate rules under the provisions of chapter 14 requiring 
 29.24  that in each school year, Based upon formal requests by or on 
 29.25  behalf of nonpublic school pupils in a nonpublic school, the 
 29.26  local school districts or intermediary service areas shall 
 29.27  purchase or otherwise acquire textbooks, individualized 
 29.28  instructional materials and standardized tests and loan or 
 29.29  provide them for use by children enrolled in that nonpublic 
 29.30  school.  These textbooks, individualized instructional materials 
 29.31  and standardized tests shall be loaned or provided free to the 
 29.32  children for the school year for which requested.  The loan or 
 29.33  provision of the textbooks, individualized instructional 
 29.34  materials and standardized tests shall be subject to rules 
 29.35  prescribed by the state board of education. 
 29.36     Sec. 41.  Minnesota Statutes 1994, section 123.947, is 
 30.1   amended to read: 
 30.2      123.947 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
 30.3      (a) The commissioner shall assure that textbooks and 
 30.4   individualized instructional materials loaned to nonpublic 
 30.5   school pupils are secular, neutral, nonideological and that they 
 30.6   are incapable of diversion for religious use.  
 30.7      (b) Textbooks and individualized instructional materials 
 30.8   shall not be used in religious courses, devotional exercises, 
 30.9   religious training or any other religious activity.  
 30.10     (c) Textbooks and individualized instructional materials 
 30.11  shall be loaned only to individual pupils upon the request of a 
 30.12  parent or guardian or the pupil on a form designated for this 
 30.13  use by the commissioner.  The request forms shall provide for 
 30.14  verification by the parent or guardian or pupil that the 
 30.15  requested textbooks and individualized instructional materials 
 30.16  are for the use of the individual pupil in connection with a 
 30.17  program of instruction in the pupil's elementary or secondary 
 30.18  school.  
 30.19     (d) The servicing school district or the intermediary 
 30.20  service area shall take adequate measures to ensure an accurate 
 30.21  and periodic inventory of all textbooks and individualized 
 30.22  instructional materials loaned to elementary and secondary 
 30.23  school pupils attending nonpublic schools.  The state board 
 30.24  commissioner of education shall promulgate rules under the 
 30.25  provisions of chapter 14 to may terminate the eligibility of any 
 30.26  nonpublic school pupil if the commissioner determines, after 
 30.27  notice and opportunity for hearing, that the textbooks or 
 30.28  individualized instructional materials have been used in a 
 30.29  manner contrary to the provisions of section 123.932, 
 30.30  subdivision 1e, 123.933, or this section or any rules 
 30.31  promulgated by the state board of education. 
 30.32     (e) Nothing contained in section 123.932, subdivision 1e, 
 30.33  123.933, or this section shall be construed to authorize the 
 30.34  making of any payments to a nonpublic school or its faculty, 
 30.35  staff or administrators for religious worship or instruction or 
 30.36  for any other purpose.  
 31.1      Sec. 42.  Minnesota Statutes 1994, section 124.14, 
 31.2   subdivision 1, is amended to read: 
 31.3      Subdivision 1.  The commissioner shall supervise 
 31.4   distribution of school aids and grants in accordance with law.  
 31.5   It The commissioner may make rules consistent with law for the 
 31.6   distribution to enable districts to perform efficiently the 
 31.7   services required by law and further education in the state, 
 31.8   including reasonable requirements for the reports and accounts 
 31.9   to it as will assure accurate and lawful apportionment of aids.  
 31.10  State and federal aids and discretionary or entitlement grants 
 31.11  distributed by the commissioner shall not be subject to the 
 31.12  contract approval procedures of the commissioner of 
 31.13  administration or to chapter 16A or 16B.  The commissioner shall 
 31.14  adopt internal procedures for administration and monitoring of 
 31.15  aids and grants. 
 31.16     Sec. 43.  Minnesota Statutes 1994, section 124.14, 
 31.17  subdivision 4, is amended to read: 
 31.18     Subd. 4.  [FINAL DECISION AND RECORDS.] A reduction of aid 
 31.19  under this section may be appealed to the state board of 
 31.20  education commissioner of finance and its the decision shall be 
 31.21  final.  Public schools shall at all times be open to the 
 31.22  inspection of the commissioner of education, and the accounts 
 31.23  and records of any district shall be open to inspection by the 
 31.24  state auditor, the state board, or the commissioner of education 
 31.25  for the purpose of audits conducted under this section.  Each 
 31.26  district shall keep for a minimum of three years at least the 
 31.27  following:  (1) identification of the annual session days held, 
 31.28  together with a record of the length of each session day, (2) a 
 31.29  record of each pupil's daily attendance, with entrance and 
 31.30  withdrawal dates, and (3) identification of the pupils 
 31.31  transported who are reported for transportation aid.  
 31.32     Sec. 44.  Minnesota Statutes 1994, section 124.15, 
 31.33  subdivision 2, is amended to read: 
 31.34     Subd. 2.  Whenever the board of the district authorizes or 
 31.35  permits within the district violations of law by: 
 31.36     (1) employment in a public school of the district of a 
 32.1   teacher who does not hold a valid teaching license or permit, or 
 32.2      (2) noncompliance with a mandatory rule of general 
 32.3   application promulgated by the state board commissioner of 
 32.4   education in accordance with statute in the absence of special 
 32.5   circumstances making enforcement thereof inequitable, contrary 
 32.6   to the best interest of, or imposing an extraordinary hardship 
 32.7   on, the district affected, or 
 32.8      (3) continued performance by the district of a contract 
 32.9   made for the rental of rooms or buildings for school purposes or 
 32.10  for the rental of any facility owned or operated by or under the 
 32.11  direction of any private organization, which contract has been 
 32.12  disapproved where time for review of the determination of 
 32.13  disapproval has expired and no proceeding for review is pending, 
 32.14  or 
 32.15     (4) any practice which is a violation of sections 1 and 2 
 32.16  of article 13 of the Constitution of the state of Minnesota, or 
 32.17     (5) failure to provide reasonably for the school attendance 
 32.18  to which a resident pupil is entitled under Minnesota Statutes, 
 32.19  or 
 32.20     (6) noncompliance with state laws prohibiting 
 32.21  discrimination because of race, color, creed, religion, national 
 32.22  origin, sex, age, marital status, status with regard to public 
 32.23  assistance or disability, as defined in section 363.03, 
 32.24     the special state aid to which a district is otherwise 
 32.25  entitled for any school year shall be reduced in the amount and 
 32.26  upon the procedure provided in this section or, in the case of 
 32.27  the violation stated in clause (1), upon the procedure provided 
 32.28  in section 124.19, subdivision 3. 
 32.29     Sec. 45.  Minnesota Statutes 1994, section 124.15, 
 32.30  subdivision 2a, is amended to read: 
 32.31     Subd. 2a.  After consultation with the commissioner of 
 32.32  human rights, the state board of education shall adopt rules in 
 32.33  conformance with chapter 14 which direct School districts to 
 32.34  shall file with the commissioner of education assurances of 
 32.35  compliance with state and federal laws prohibiting 
 32.36  discrimination and which specify the information required to be 
 33.1   submitted in support of the assurances supporting information.  
 33.2   The commissioner of education shall provide copies of the 
 33.3   assurances and the supportive information to the commissioner of 
 33.4   human rights.  If, after reviewing the assurances and the 
 33.5   supportive information it appears that one or more violations of 
 33.6   the Minnesota human rights act are occurring in the district, 
 33.7   the commissioner of human rights shall notify the commissioner 
 33.8   of education of the violations, and the commissioner of 
 33.9   education may then proceed pursuant to subdivision 3. 
 33.10     Sec. 46.  Minnesota Statutes 1994, section 124.15, 
 33.11  subdivision 4, is amended to read: 
 33.12     Subd. 4.  The board to which such notice is given may by a 
 33.13  majority vote of the whole board decide to dispute that the 
 33.14  specified violation exists or that the time allowed is 
 33.15  reasonable or the correction specified is correct, or that the 
 33.16  commissioner may reduce aids, in which case written notice of 
 33.17  such decision shall be given the commissioner.  If the 
 33.18  commissioner, after such further investigation as the 
 33.19  commissioner deems necessary, adheres to the previous notice, 
 33.20  such board shall be entitled to a hearing by the state board, in 
 33.21  which event a time and place shall be set therefor and notice be 
 33.22  given by mail to the board of the district under sections 14.50 
 33.23  to 14.53.  The state board shall adopt rules governing the 
 33.24  proceedings for hearings which shall be designed to give a full 
 33.25  and fair hearing and permit interested parties an opportunity to 
 33.26  produce evidence relating to the issues involved.  Such rules 
 33.27  may provide that any question of fact to be determined upon such 
 33.28  review may be referred to one or more members of the board or to 
 33.29  an employee of the state board acting as a referee to hear 
 33.30  evidence and report to the state board the testimony taken. The 
 33.31  state board, or any person designated to receive evidence upon a 
 33.32  review under this act, shall have the same right to issue 
 33.33  subpoenas and administer oaths and parties to the review shall 
 33.34  have the same right to subpoenas issued as are accorded with 
 33.35  respect to proceedings before the industrial commission.  There 
 33.36  shall be a stenographic record made of all testimony given and 
 34.1   other proceedings during such hearing, and as far as practicable 
 34.2   rules governing reception of evidence in courts shall obtain.  
 34.3   The decision of the state board shall be in writing and the 
 34.4   controlling facts upon which the decision is made shall be 
 34.5   stated in sufficient detail to apprise the parties and the 
 34.6   reviewing court the basis and reason of the decision.  The 
 34.7   decision shall be confined to whether or not the specified 
 34.8   violations or any of them existed at the date of the 
 34.9   commissioner's first notice, whether such violations as did 
 34.10  exist were corrected within the time permitted, and whether such 
 34.11  violations require reduction of the state aids under this 
 34.12  section. 
 34.13     Sec. 47.  Minnesota Statutes 1994, section 124.15, 
 34.14  subdivision 5, is amended to read: 
 34.15     Subd. 5.  [VIOLATION; AID REDUCTION.] If the violation 
 34.16  specified is corrected within the time permitted, or if the 
 34.17  commissioner on being notified of the district board's decision 
 34.18  to dispute decides the violation does not exist, or if the state 
 34.19  board decides after hearing no violation specified in the 
 34.20  commissioner's notice is found to have existed at the time of 
 34.21  it, or that any that existed were corrected within the time 
 34.22  permitted, there shall be no reduction of state aids payable to 
 34.23  the school district.  Otherwise state aids payable to the 
 34.24  district for the year in which the violation occurred shall be 
 34.25  reduced as follows:  The total amount of state aids to which the 
 34.26  district may be entitled shall be reduced in the proportion that 
 34.27  the period during which a specified violation continued, 
 34.28  computed from the last day of the time permitted for correction, 
 34.29  bears to the total number of days school is held in the district 
 34.30  during the year in which a violation exists, multiplied by 60 
 34.31  percent of the basic revenue, as defined in section 124A.22, 
 34.32  subdivision 2, of the district for that year. 
 34.33     Sec. 48.  Minnesota Statutes 1994, section 124.15, 
 34.34  subdivision 7, is amended to read: 
 34.35     Subd. 7.  [APPEAL.] A decision of the state board under 
 34.36  this section may be appealed in accordance with chapter 14.  
 35.1      Sec. 49.  Minnesota Statutes 1994, section 124.223, 
 35.2   subdivision 11, is amended to read: 
 35.3      Subd. 11.  [RULES.] The state board commissioner of 
 35.4   education may amend rules relating to transportation aid and 
 35.5   data. 
 35.6      Sec. 50.  Minnesota Statutes 1994, section 124.41, 
 35.7   subdivision 2, is amended to read: 
 35.8      Subd. 2.  [APPLICATION FORMS; RULES.] The commissioner, 
 35.9   with the assistance of the attorney general or a designated 
 35.10  assistant, shall prepare forms of applications for debt service 
 35.11  loans and capital loans and instruments evidencing the loans.  
 35.12  The state board shall promulgate rules to facilitate the 
 35.13  commissioner's operations in compliance with sections 124.36 to 
 35.14  124.46.  The rules shall be subject to the procedure set forth 
 35.15  in sections 14.02, 14.04 to 14.36, 14.38, 14.44 to 14.45, and 
 35.16  14.57 to 14.62. 
 35.17     Sec. 51.  Minnesota Statutes 1994, section 124.431, 
 35.18  subdivision 7, is amended to read: 
 35.19     Subd. 7.  [RECOMMENDATIONS OF THE COMMISSIONER.] The 
 35.20  commissioner shall examine and consider applications for capital 
 35.21  loans that have been approved by the state board of education, 
 35.22  and promptly notify any district rejected by the state board of 
 35.23  the state board's decision may either approve or reject an 
 35.24  application for a capital loan.  
 35.25     The commissioner shall report each capital loan that has 
 35.26  been approved by the state board and that has received voter 
 35.27  approval to the education committees of the legislature by 
 35.28  February 1 of each year.  The commissioner must not report a 
 35.29  capital loan that has not received voter approval.  The 
 35.30  commissioner shall also report on the money remaining in the 
 35.31  capital loan account and, if necessary, request that another 
 35.32  bond issue be authorized. 
 35.33     Sec. 52.  Minnesota Statutes 1994, section 124.48, is 
 35.34  amended to read: 
 35.35     124.48 [INDIAN SCHOLARSHIPS.] 
 35.36     Subdivision 1.  [AWARDS.] The state board commissioner of 
 36.1   education, with the advice and counsel of the Minnesota Indian 
 36.2   scholarship committee, may award scholarships to any Minnesota 
 36.3   resident student who is of one-fourth or more Indian ancestry, 
 36.4   who has applied for other existing state and federal scholarship 
 36.5   and grant programs, and who, in the opinion of the board 
 36.6   commissioner, has the capabilities to benefit from further 
 36.7   education.  Scholarships shall be for advanced or specialized 
 36.8   education in accredited or approved colleges or in business, 
 36.9   technical or vocational schools.  Scholarships shall be used to 
 36.10  defray the total cost of education including tuition, incidental 
 36.11  fees, books, supplies, transportation, other related school 
 36.12  costs and the cost of board and room and shall be paid directly 
 36.13  to the college or school concerned.  The total cost of education 
 36.14  includes all tuition and fees for each student enrolling in a 
 36.15  public institution and the portion of tuition and fees for each 
 36.16  student enrolling in a private institution that does not exceed 
 36.17  the tuition and fees at a comparable public institution.  Each 
 36.18  student shall be awarded a scholarship based on the total cost 
 36.19  of the student's education and a standardized need analysis.  
 36.20  The amount and type of each scholarship shall be determined 
 36.21  through the advice and counsel of the Minnesota Indian 
 36.22  scholarship committee.  
 36.23     When an Indian student satisfactorily completes the work 
 36.24  required by a certain college or school in a school year the 
 36.25  student is eligible for additional scholarships, if additional 
 36.26  training is necessary to reach the student's educational and 
 36.27  vocational objective.  Scholarships may not be given to any 
 36.28  Indian student for more than five years of study without special 
 36.29  approval of the Minnesota Indian scholarship committee. 
 36.30     Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
 36.31  Indian scholarship committee is established.  Members shall be 
 36.32  appointed by the state board with the assistance of the Indian 
 36.33  affairs council as provided in section 3.922, subdivision 6.  
 36.34  Members shall be reimbursed for expenses as provided in section 
 36.35  15.059, subdivision 6.  The state board commissioner shall 
 36.36  determine the membership terms and duration of the committee, 
 37.1   which expires no later than June 30, 1997.  The committee shall 
 37.2   provide advice to the state board commissioner in awarding 
 37.3   scholarships to eligible American Indian students and in 
 37.4   administering the state board's commissioner's duties regarding 
 37.5   awarding of American Indian post-secondary preparation grants to 
 37.6   school districts. 
 37.7      Sec. 53.  Minnesota Statutes 1994, section 124.573, 
 37.8   subdivision 3, is amended to read: 
 37.9      Subd. 3.  [COMPLIANCE WITH RULES.] Aid shall be paid under 
 37.10  this section only for services rendered or for costs incurred in 
 37.11  secondary vocational education programs approved by the 
 37.12  commissioner and operated in accordance with rules promulgated 
 37.13  by the state board commissioner.  These rules shall provide 
 37.14  minimum student-staff ratios required for a secondary vocational 
 37.15  education program area to qualify for this aid.  The rules must 
 37.16  not require the collection of data at the program or course 
 37.17  level to calculate secondary vocational aid.  The rules shall 
 37.18  not require any minimum number of administrative staff, any 
 37.19  minimum period of coordination time or extended employment for 
 37.20  secondary vocational education personnel, or the availability of 
 37.21  vocational student activities or organizations for a secondary 
 37.22  vocational education program to qualify for this aid.  The 
 37.23  requirement in these rules that program components be available 
 37.24  for a minimum number of hours shall not be construed to prevent 
 37.25  pupils from enrolling in secondary vocational education courses 
 37.26  on an exploratory basis for less than a full school year.  The 
 37.27  state board commissioner shall not require a school district to 
 37.28  offer more than four credits or 560 hours of vocational 
 37.29  education course offerings in any school year.  Rules relating 
 37.30  to secondary vocational education programs shall not incorporate 
 37.31  the provisions of the state plan for vocational education by 
 37.32  reference.  This aid shall be paid only for services rendered 
 37.33  and for costs incurred by essential, licensed personnel who meet 
 37.34  the work experience requirements for licensure pursuant to the 
 37.35  rules of the state board.  Licensed personnel means persons 
 37.36  holding a valid secondary vocational license issued by the 
 38.1   commissioner, except that when an average of five or fewer 
 38.2   secondary full-time equivalent students are enrolled per teacher 
 38.3   in an approved post-secondary program at intermediate district 
 38.4   No. 287, 916, or 917, licensed personnel means persons holding a 
 38.5   valid vocational license issued by the commissioner or the state 
 38.6   board for vocational technical education.  Notwithstanding 
 38.7   section 124.15, the commissioner may modify or withdraw the 
 38.8   program or aid approval and withhold aid under this section 
 38.9   without proceeding under section 124.15 at any time.  To do so, 
 38.10  the commissioner must determine that the program does not comply 
 38.11  with the rules of the state board or that any facts concerning 
 38.12  the program or its budget differ from the facts in the 
 38.13  district's approved application. 
 38.14     Sec. 54.  Minnesota Statutes 1994, section 124.573, 
 38.15  subdivision 3a, is amended to read: 
 38.16     Subd. 3a.  [AID FOR CONTRACTED SERVICES.] In addition to 
 38.17  the provisions of subdivisions 2 and 3, a school district or 
 38.18  cooperative center may contract with a public or private agency 
 38.19  other than a Minnesota school district or cooperative center for 
 38.20  the provision of secondary vocational education services.  The 
 38.21  state board shall promulgate rules relating to program approval 
 38.22  procedures and criteria for these contracts and Aid shall be 
 38.23  paid only for contracts approved by the commissioner of 
 38.24  education.  For the purposes of subdivision 4, the district or 
 38.25  cooperative center contracting for these services shall be 
 38.26  construed to be providing the services.  
 38.27     Sec. 55.  Minnesota Statutes 1994, section 124.574, 
 38.28  subdivision 4, is amended to read: 
 38.29     Subd. 4.  [AID FOR CONTRACTED SERVICES.] In addition to the 
 38.30  provisions of subdivisions 2b and 3, a school district may 
 38.31  contract with a public or private agency other than a Minnesota 
 38.32  school district or cooperative center for the provision of 
 38.33  secondary vocational education programs for children with a 
 38.34  disability.  The formula for payment of aids for these contracts 
 38.35  shall be that provided in section 124.32, subdivision 1d.  The 
 38.36  state board shall promulgate rules relating to approval 
 39.1   procedures and criteria for these contracts and Aid shall be 
 39.2   paid only for contracts approved by the commissioner of 
 39.3   education.  For the purposes of subdivision 6, the district or 
 39.4   cooperative center contracting for these services shall be 
 39.5   construed to be providing these services.  
 39.6      Sec. 56.  Minnesota Statutes 1994, section 124.574, 
 39.7   subdivision 5, is amended to read: 
 39.8      Subd. 5.  The aid provided pursuant to this section shall 
 39.9   be paid only for services rendered as designated in subdivision 
 39.10  2 or for the costs designated in subdivision 3 which are 
 39.11  incurred in secondary vocational education programs for children 
 39.12  with a disability which are approved by the commissioner of 
 39.13  education and operated in accordance with rules promulgated by 
 39.14  the state board commissioner.  These rules shall be subject to 
 39.15  the restrictions provided in section 124.573, subdivision 3.  
 39.16  The procedure for application for approval of these programs 
 39.17  shall be as provided in section 124.32, subdivisions 7 and 10, 
 39.18  and the application review process shall be conducted by the 
 39.19  vocational education section of the state department. 
 39.20     Sec. 57.  Minnesota Statutes 1994, section 124.625, is 
 39.21  amended to read: 
 39.22     124.625 [VETERANS TRAINING.] 
 39.23     The commissioner shall continue the veterans training 
 39.24  program.  All receipts to the veterans training revolving fund 
 39.25  for the veterans training program are appropriated to the 
 39.26  commissioner to pay the necessary expenses of operation of the 
 39.27  program.  The department of education shall act as the state 
 39.28  agency for approving educational institutions for purposes of 
 39.29  United States Code, title 38, chapter 36, relating to 
 39.30  educational benefits for veterans and other persons.  The state 
 39.31  board commissioner may adopt rules to fulfill its the 
 39.32  department's obligations as the state approving agency.  All 
 39.33  federal money received for purposes of the veterans training 
 39.34  program shall be deposited in the veterans training revolving 
 39.35  fund and is appropriated to the department for those purposes.  
 39.36     Sec. 58.  Minnesota Statutes 1994, section 124C.12, 
 40.1   subdivision 1, is amended to read: 
 40.2      Subdivision 1.  [ESTABLISHMENT.] A program is established 
 40.3   under the direction of the state board commissioner of 
 40.4   education, with the cooperation of the commissioners 
 40.5   of education, health, and human services.  It is expected that 
 40.6   participants and other districts will become exemplary districts 
 40.7   by the year 2000. 
 40.8      Sec. 59.  Minnesota Statutes 1994, section 124C.12, 
 40.9   subdivision 4, is amended to read: 
 40.10     Subd. 4.  [APPLICATION PROCESS.] To obtain revenue, a 
 40.11  district or districts must submit an application to the state 
 40.12  board commissioner of education in the form and manner 
 40.13  established by the state board commissioner.  Additional 
 40.14  information may be required by the state board commissioner. 
 40.15     Sec. 60.  Minnesota Statutes 1994, section 124C.12, 
 40.16  subdivision 5, is amended to read: 
 40.17     Subd. 5.  [REVENUE.] The state board commissioner may award 
 40.18  revenue to up to four applicants.  The board commissioner may 
 40.19  determine the size of the award based upon the application.  
 40.20  Recipients must be located throughout the state.  
 40.21     Sec. 61.  Minnesota Statutes 1994, section 124C.46, 
 40.22  subdivision 3, is amended to read: 
 40.23     Subd. 3.  [RULES EXEMPTION.] Notwithstanding any law to the 
 40.24  contrary, the center programs must be available throughout the 
 40.25  entire year.  Pupils in a center may receive instruction for 
 40.26  more than or less than the daily number of hours required by the 
 40.27  rules of the state board of education.  However, a pupil must 
 40.28  receive instruction each year for at least the total number of 
 40.29  instructional hours required by statutes and rules.  A center 
 40.30  may petition the state board under Minnesota Rules, part 
 40.31  3500.1000, for exemption from other rules.  
 40.32     Sec. 62.  Minnesota Statutes 1994, section 125.05, 
 40.33  subdivision 1, is amended to read: 
 40.34     Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
 40.35  teaching shall license teachers, as defined in section 125.03, 
 40.36  subdivision 1, except for supervisory personnel, as defined in 
 41.1   section 125.03, subdivision 4. 
 41.2      (b) The state board department of education shall license 
 41.3   supervisory personnel as defined in section 125.03, subdivision 
 41.4   4.  
 41.5      (c) The state board of technical colleges, according to 
 41.6   section 136C.04, shall license post-secondary vocational and 
 41.7   adult vocational teachers, support personnel, and supervisory 
 41.8   personnel in technical colleges. 
 41.9      (d) Licenses under the jurisdiction of the board of 
 41.10  teaching and the state board department of education must be 
 41.11  issued through the licensing section of the department of 
 41.12  education.  
 41.13     Sec. 63.  Minnesota Statutes 1994, section 125.05, 
 41.14  subdivision 1c, is amended to read: 
 41.15     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS.] The 
 41.16  state board department of education shall issue licenses under 
 41.17  its jurisdiction to persons the state board commissioner of 
 41.18  education finds to be qualified and competent for their 
 41.19  respective positions under the rules it the commissioner adopts. 
 41.20     Sec. 64.  Minnesota Statutes 1994, section 125.05, 
 41.21  subdivision 2, is amended to read: 
 41.22     Subd. 2.  [EXPIRATION AND RENEWAL.] Each license issued 
 41.23  through the licensing section of the department of education 
 41.24  must bear the date of issue.  Licenses must expire and be 
 41.25  renewed in accordance with the respective rules adopted by the 
 41.26  board of teaching or the state board commissioner of education.  
 41.27  Requirements for renewal of a license must include production of 
 41.28  satisfactory evidence of successful teaching experience for at 
 41.29  least one school year during the period covered by the license 
 41.30  in grades or subjects for which the license is valid or 
 41.31  completion of such additional preparation as the board of 
 41.32  teaching shall prescribe.  Requirements for renewal of the 
 41.33  licenses of supervisory personnel must be established by 
 41.34  the state board commissioner of education.  
 41.35     Sec. 65.  Minnesota Statutes 1994, section 125.05, 
 41.36  subdivision 4, is amended to read: 
 42.1      Subd. 4.  [HUMAN RELATIONS.] The board of teaching and 
 42.2   the state board department of education shall accept training 
 42.3   programs completed through Peace Corps, VISTA, or Teacher Corps 
 42.4   in lieu of completion of the human relations component of the 
 42.5   training program for purposes of issuing or renewing a license 
 42.6   in education.  
 42.7      Sec. 66.  Minnesota Statutes 1994, section 125.09, 
 42.8   subdivision 1, is amended to read: 
 42.9      Subdivision 1.  [GROUNDS FOR REVOCATION.] The board of 
 42.10  teaching or the state board department of education, whichever 
 42.11  has jurisdiction over a teacher's licensure, may, on the written 
 42.12  complaint of the board employing a teacher, or of a teacher 
 42.13  organization, or of any other interested person, which complaint 
 42.14  shall specify the nature and character of the charges, suspend 
 42.15  or revoke such teacher's license to teach for any of the 
 42.16  following causes: 
 42.17     (1) Immoral character or conduct; 
 42.18     (2) Failure, without justifiable cause, to teach for the 
 42.19  term of the teacher's contract; 
 42.20     (3) Gross inefficiency or willful neglect of duty; or 
 42.21     (4) Failure to meet licensure requirements; or 
 42.22     (5) Fraud or misrepresentation in obtaining a license. 
 42.23     For purposes of this subdivision, the board of teaching is 
 42.24  delegated the authority to suspend or revoke coaching licenses 
 42.25  under the jurisdiction of the state board department of 
 42.26  education. 
 42.27     Sec. 67.  Minnesota Statutes 1994, section 125.09, 
 42.28  subdivision 4, is amended to read: 
 42.29     Subd. 4.  [MANDATORY REPORTING.] A school board shall 
 42.30  report to the board of teaching, the state board department of 
 42.31  education, or the state board of technical colleges, whichever 
 42.32  has jurisdiction over the teacher's license, when its teacher is 
 42.33  discharged or resigns from employment after a charge is filed 
 42.34  with the school board under section 125.17, subdivisions 4, 
 42.35  clauses (1), (2), and (3), and 5, or after charges are filed 
 42.36  that are ground for discharge under section 125.12, subdivision 
 43.1   8, clauses (a), (b), (c), (d), and (e), or when a teacher is 
 43.2   suspended or resigns while an investigation is pending under 
 43.3   section 125.12, subdivision 8, clauses (a), (b), (c), (d), and 
 43.4   (e); 125.17, subdivisions 4, clauses (1), (2), and (3), and 5; 
 43.5   or 626.556.  The report must be made to the board within ten 
 43.6   days after the discharge, suspension, or resignation has 
 43.7   occurred.  The board or department to which the report is made 
 43.8   shall investigate the report for violation of subdivision 1 and 
 43.9   the reporting school board shall cooperate in the investigation. 
 43.10  Notwithstanding any provision in chapter 13 or any law to the 
 43.11  contrary, upon written request from the licensing board or 
 43.12  department having jurisdiction over the teacher's license, a 
 43.13  school board or school superintendent shall provide the 
 43.14  licensing board with information about the teacher from the 
 43.15  school district's files, any termination or disciplinary 
 43.16  proceeding, any settlement or compromise, or any investigative 
 43.17  file.  Upon written request from the appropriate licensing board 
 43.18  or department, a school board or school superintendent may, at 
 43.19  the discretion of the school board or school superintendent, 
 43.20  solicit the written consent of a student and the student's 
 43.21  parent to provide the licensing board entity with information 
 43.22  that may aid the licensing board in its investigation and 
 43.23  license proceedings.  The licensing board's entity's request 
 43.24  need not identify a student or parent by name.  The consent of 
 43.25  the student and the student's parent must meet the requirements 
 43.26  of chapter 13 and Code of Federal Regulations, title 34, section 
 43.27  99.30.  The licensing board entity may provide a consent form to 
 43.28  the school district.  Any data transmitted to any board 
 43.29  licensing entity under this section shall be private data under 
 43.30  section 13.02, subdivision 12, notwithstanding any other 
 43.31  classification of the data when it was in the possession of any 
 43.32  other agency. 
 43.33     The board licensing entity to which a report is made shall 
 43.34  transmit to the attorney general's office any record or data it 
 43.35  receives under this subdivision for the sole purpose of having 
 43.36  the attorney general's office assist that board in its 
 44.1   investigation.  When the attorney general's office has informed 
 44.2   an employee of the appropriate licensing board entity in writing 
 44.3   that grounds exist to suspend or revoke a teacher's license to 
 44.4   teach, that licensing board entity must consider suspending or 
 44.5   revoking or decline to suspend or revoke the teacher's license 
 44.6   within 45 days of receiving a stipulation executed by the 
 44.7   teacher under investigation or a recommendation from an 
 44.8   administrative law judge that disciplinary action be taken. 
 44.9      Sec. 68.  Minnesota Statutes 1994, section 125.121, 
 44.10  subdivision 1, is amended to read: 
 44.11     Subdivision 1.  Before a district terminates the coaching 
 44.12  duties of an employee who is required to hold a license as an 
 44.13  athletic coach from the state board department of education, the 
 44.14  district shall notify the employee in writing and state its 
 44.15  reason for the proposed termination.  Within 14 days of 
 44.16  receiving this notification, the employee may request in writing 
 44.17  a hearing on the termination before the board commissioner of 
 44.18  education.  If a hearing is requested, the board commissioner 
 44.19  shall hold a hearing within 25 days according to the hearing 
 44.20  procedures specified in section 125.12, subdivision 9, and the 
 44.21  termination shall not be final except upon the order of 
 44.22  the board commissioner after the hearing. 
 44.23     Sec. 69.  Minnesota Statutes 1994, section 125.121, 
 44.24  subdivision 2, is amended to read: 
 44.25     Subd. 2.  Within ten days after the hearing, the board 
 44.26  commissioner shall issue a written decision regarding the 
 44.27  termination.  If the board commissioner decides to terminate the 
 44.28  employee's coaching duties, the decision shall state the reason 
 44.29  on which it is based and include findings of fact based upon 
 44.30  competent evidence in the record.  The board commissioner may 
 44.31  terminate the employee's duties or not, as it sees fit, for any 
 44.32  reason which is found to be true based on substantial and 
 44.33  competent evidence in the record. 
 44.34     Sec. 70.  Minnesota Statutes 1994, section 125.1885, 
 44.35  subdivision 1, is amended to read: 
 44.36     Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
 45.1   that is an alternative to a graduate program in education 
 45.2   administration for public school administrators to acquire an 
 45.3   entrance license is established.  The program may be offered in 
 45.4   any administrative field. 
 45.5      (b) To participate in the alternative preparation program, 
 45.6   the candidate must: 
 45.7      (1) have a master's degree in an administrative area; 
 45.8      (2) have been offered an administrative position in a 
 45.9   school district, group of districts, or an education district 
 45.10  approved by the state board department of education to offer an 
 45.11  alternative preparation licensure program; 
 45.12     (3) have five years of experience in a field related to 
 45.13  administration; and 
 45.14     (4) document successful experiences working with children 
 45.15  and adults. 
 45.16     (c) An alternative preparation license is of one year 
 45.17  duration and is issued by the state board department of 
 45.18  education to participants on admission to the alternative 
 45.19  preparation program. 
 45.20     Sec. 71.  Minnesota Statutes 1994, section 125.1885, 
 45.21  subdivision 4, is amended to read: 
 45.22     Subd. 4.  [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 
 45.23  resident mentorship team must prepare for the state board 
 45.24  department of education an evaluation report on the performance 
 45.25  of the alternative preparation licensee during the school year 
 45.26  and a positive or negative recommendation on whether the 
 45.27  alternative preparation licensee shall receive a standard 
 45.28  entrance license. 
 45.29     Sec. 72.  Minnesota Statutes 1994, section 125.1885, 
 45.30  subdivision 5, is amended to read: 
 45.31     Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board 
 45.32  department of education shall issue a standard entrance license 
 45.33  to an alternative preparation licensee who has successfully 
 45.34  completed the school year in the alternative preparation program 
 45.35  and who has received a positive recommendation from the 
 45.36  licensee's mentorship team. 
 46.1      Sec. 73.  Minnesota Statutes 1994, section 125.702, 
 46.2   subdivision 2, is amended to read: 
 46.3      Subd. 2.  [RULES AND RIGHTS.] The state board department of 
 46.4   education may waive school district compliance with its rules 
 46.5   which would prevent implementation of an improved learning 
 46.6   program.  Participation in an improved learning program as a 
 46.7   principal-teacher, counselor-teacher, or career teacher shall 
 46.8   not affect seniority in the district or rights under the 
 46.9   applicable collective bargaining agreement.  
 46.10     Sec. 74.  Minnesota Statutes 1994, section 126.019, is 
 46.11  amended to read: 
 46.12     126.019 [SCHOOL RESTRUCTURING PROGRAM.] 
 46.13     Subdivision 1.  [LEVY AUTHORITY.] (a) The purpose of school 
 46.14  district restructuring pilots is to examine practices and 
 46.15  organizational structure for improvement of student achievement 
 46.16  of education outcomes through site decision-making.  A school 
 46.17  district may submit an application to the department of 
 46.18  education for school district restructuring levy authority.  The 
 46.19  authority may be for up to $50 times the number of actual pupil 
 46.20  units at the site.  The levy is available for the fiscal year 
 46.21  for which the pilot receives approval and for the subsequent 
 46.22  four years.  A district need only apply once for this 
 46.23  authority.  The actual amount of levy authority given shall 
 46.24  depend on the level of power and control delegated to a site 
 46.25  under section 123.951.  The state board commissioner of 
 46.26  education, upon consultation of the education chairs of the 
 46.27  legislature, shall determine criteria for measuring this level 
 46.28  and allocating the appropriate levy authority.  The criteria may 
 46.29  include a provision that would allow the site decision-making 
 46.30  team to request waivers from the master contract between the 
 46.31  school board and the collective bargaining representative in the 
 46.32  district.  Notwithstanding any law to the contrary, the state 
 46.33  board commissioner of education and the state board of teaching 
 46.34  may grant waivers that would apply only to a single site within 
 46.35  the district from any board rule.  The levy authority may be 
 46.36  increased or decreased by the state board commissioner if a 
 47.1   district changes implementation of this section.  Revenue from 
 47.2   the levy must be under the control of local site decision-making 
 47.3   team and may be used for any purpose determined by the team.  
 47.4   All information about education achievement and effective 
 47.5   reduction in elementary learner-instructor ratios at the school 
 47.6   site must be made available to the public.  Each school board 
 47.7   must communicate the availability of this authority to each 
 47.8   school site in the district. 
 47.9      (b) The local levy shall be matched dollar for dollar with 
 47.10  state aid.  The commissioner shall not approve total levy 
 47.11  authority in excess of available state appropriations. 
 47.12     Subd. 2.  [REPORT.] The state board commissioner shall 
 47.13  report on the implementation of this section and learning 
 47.14  improvement results to the education committees of the 
 47.15  legislature on February 1 of each year.  The board department of 
 47.16  education shall also develop model reporting forms for districts 
 47.17  to use to report to local communities.  The board shall develop 
 47.18  these forms in consultation with the department and the chairs 
 47.19  of the education committees of the legislature. 
 47.20     Sec. 75.  Minnesota Statutes 1994, section 126.36, 
 47.21  subdivision 4, is amended to read: 
 47.22     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
 47.23  of licensing bilingual and English as a second language 
 47.24  teachers, the board may approve programs at colleges or 
 47.25  universities designed for their training subject to the approval 
 47.26  of the state board of education. 
 47.27     Sec. 76.  Minnesota Statutes 1994, section 126.49, 
 47.28  subdivision 4, is amended to read: 
 47.29     Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
 47.30  of licensing American Indian language and culture education 
 47.31  teachers, the board may approve programs at colleges or 
 47.32  universities designed for their training subject to the approval 
 47.33  of the state board of education. 
 47.34     Sec. 77.  Minnesota Statutes 1994, section 126.52, 
 47.35  subdivision 5, is amended to read: 
 47.36     Subd. 5.  [COMMUNITY INVOLVEMENT.] The state board 
 48.1   commissioner shall provide for the maximum involvement of the 
 48.2   state committees on American Indian education, parents of 
 48.3   American Indian children, secondary students eligible to be 
 48.4   served, American Indian language and culture education teachers, 
 48.5   American Indian teachers, teachers' aides, representatives of 
 48.6   community groups, and persons knowledgeable in the field of 
 48.7   American Indian education, in the formulation of policy and 
 48.8   procedures relating to the administration of sections 126.45 to 
 48.9   126.55.  
 48.10     Sec. 78.  Minnesota Statutes 1994, section 126.531, is 
 48.11  amended to read: 
 48.12     126.531 [COMMITTEES ON AMERICAN INDIAN EDUCATION PROGRAMS.] 
 48.13     Subdivision 1.  The state board commissioner of education 
 48.14  shall create one or more American Indian education committees.  
 48.15  Members shall include representatives of tribal bodies, 
 48.16  community groups, parents of children eligible to be served by 
 48.17  the programs, American Indian administrators and teachers, 
 48.18  persons experienced in the training of teachers for American 
 48.19  Indian education programs, persons involved in programs for 
 48.20  American Indian children in American Indian schools, and persons 
 48.21  knowledgeable in the field of American Indian education.  
 48.22  Members shall be appointed so as to be representative of 
 48.23  significant segments of the population of American Indians.  
 48.24     Subd. 2.  Each committee on American Indian education 
 48.25  programs shall advise the state board commissioner in the 
 48.26  administration of its the commissioner's duties under sections 
 48.27  126.45 to 126.55 and other programs for the education of 
 48.28  American Indian people, as determined by the state board 
 48.29  commissioner.  
 48.30     Subd. 3.  Each committee shall be reimbursed for expenses 
 48.31  according to section 15.059, subdivision 6.  The state board 
 48.32  commissioner shall determine the membership terms and the 
 48.33  duration of each committee. 
 48.34     Sec. 79.  Minnesota Statutes 1994, section 126.82, is 
 48.35  amended to read: 
 48.36     126.82 [STATE MULTICULTURAL EDUCATION ADVISORY COMMITTEE.] 
 49.1      (a) The commissioner shall appoint a state multicultural 
 49.2   education advisory committee to advise the department and the 
 49.3   state board on multicultural education.  The committee must have 
 49.4   12 members and be composed of representatives from among the 
 49.5   following groups and community organizations:  African-American, 
 49.6   Asian-Pacific, Hispanic, and American Indian. 
 49.7      (b) The state committee shall provide information and 
 49.8   recommendations on: 
 49.9      (1) department procedures for reviewing and approving 
 49.10  district plans and disseminating information on multicultural 
 49.11  education; 
 49.12     (2) department procedures for improving inclusive education 
 49.13  plans, curriculum and instruction improvement plans, and 
 49.14  performance-based assessments; 
 49.15     (3) developing learner outcomes which are multicultural; 
 49.16  and 
 49.17     (4) other recommendations that will further inclusive, 
 49.18  multicultural education. 
 49.19     (c) The committee shall also participate in determining the 
 49.20  criteria for and awarding the grants established under Laws 
 49.21  1993, chapter 224, article 8, section 22, subdivision 8. 
 49.22     Sec. 80.  Minnesota Statutes 1994, section 127.44, is 
 49.23  amended to read: 
 49.24     127.44 [AVERSIVE AND DEPRIVATION PROCEDURES.] 
 49.25     The state board commissioner of education shall adopt rules 
 49.26  governing the use of aversive and deprivation procedures by 
 49.27  school district employees or persons under contract with a 
 49.28  school district.  The rules must: 
 49.29     (1) promote the use of positive approaches and must not 
 49.30  encourage or require the use of aversive or deprivation 
 49.31  procedures; 
 49.32     (2) require that planned application of aversive and 
 49.33  deprivation procedures be a part of an individual education 
 49.34  plan; 
 49.35     (3) require parents or guardians to be notified after the 
 49.36  use of aversive or deprivation procedures in an emergency; 
 50.1      (4) establish health and safety standards for the use of 
 50.2   time-out procedures that require a safe environment, continuous 
 50.3   monitoring of the child, ventilation, and adequate space; and 
 50.4      (5) contain a list of prohibited procedures. 
 50.5      Sec. 81.  Minnesota Statutes 1994, section 128A.02, is 
 50.6   amended to read: 
 50.7      128A.02 [DUTIES OF STATE BOARD COMMISSIONER OF EDUCATION.] 
 50.8      Subdivision 1.  [TO MANAGE.] The state board commissioner 
 50.9   of education must manage the state academy for the deaf and the 
 50.10  state academy for the blind.  
 50.11     Subd. 2.  [RULES.] The state board commissioner must adopt 
 50.12  rules about the operation of the academies and about the 
 50.13  individuals attending the academies. 
 50.14     Subd. 3.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state 
 50.15  board commissioner must do what is necessary to provide the most 
 50.16  beneficial and least restrictive program of education for each 
 50.17  pupil at the academies who is handicapped by visual disability 
 50.18  or hearing impairment.  
 50.19     Subd. 4.  [PLAN.] (a) The state board commissioner must 
 50.20  have a two-year plan for the academies and must update it 
 50.21  annually.  
 50.22     (b) The plan must deal with:  
 50.23     (1) interagency cooperation; 
 50.24     (2) financial accounting; 
 50.25     (3) cost efficiencies; 
 50.26     (4) staff development; 
 50.27     (5) program and curriculum development; 
 50.28     (6) use of technical assistance from the department; 
 50.29     (7) criteria for program and staff evaluation; 
 50.30     (8) pupil performance evaluation; 
 50.31     (9) follow-up study of graduates; 
 50.32     (10) implementing this chapter; 
 50.33     (11) how to communicate with pupils' districts of 
 50.34  residence; and 
 50.35     (12) coordinating instructional and residential programs. 
 50.36     (c) The plan may deal with other matters. 
 51.1      Subd. 5.  [ADVISORY COUNCIL.] The state board commissioner 
 51.2   must have, and appoint members to, an advisory council on 
 51.3   management policies at the state academies.  
 51.4      Subd. 6.  [TRUSTEE OF ACADEMIES' PROPERTY.] The state board 
 51.5   commissioner is the trustee of the academies' property.  
 51.6   Securities and money, including income from the property, must 
 51.7   be deposited in the state treasury according to section 
 51.8   16A.275.  The deposits are subject to the order of the state 
 51.9   board commissioner.  
 51.10     Sec. 82.  Minnesota Statutes 1994, section 128A.022, is 
 51.11  amended to read: 
 51.12     128A.022 [POWERS OF STATE BOARD COMMISSIONER OF EDUCATION.] 
 51.13     Subdivision 1.  [PERSONNEL.] The state board commissioner 
 51.14  of education may employ central administrative staff members and 
 51.15  other personnel necessary to provide and support programs and 
 51.16  services in each academy.  
 51.17     Subd. 2.  [GET HELP FROM DEPARTMENT.] The state board 
 51.18  commissioner may require the department of education to provide 
 51.19  program leadership, program monitoring, and technical assistance 
 51.20  at the academies.  
 51.21     Subd. 3.  [UNCLASSIFIED POSITIONS.] The state board 
 51.22  commissioner may place any position other than residential 
 51.23  academies administrator in the unclassified service.  The 
 51.24  position must meet the criteria in section 43A.08, subdivision 
 51.25  1a.  
 51.26     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
 51.27  The state board commissioner may enter into agreements with 
 51.28  public or private agencies or institutions to provide 
 51.29  residential and building maintenance services.  The state board 
 51.30  commissioner must first decide that contracting for the services 
 51.31  is more efficient and less expensive than not contracting for 
 51.32  them.  
 51.33     Subd. 6.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
 51.34  The state board commissioner may enter into agreements with 
 51.35  teacher-preparing institutions for student teachers to get 
 51.36  practical experience at the academies.  A licensed teacher must 
 52.1   provide appropriate supervision of each student teacher.  
 52.2      (b) The state board commissioner may enter into agreements 
 52.3   with accredited higher education institutions for certain 
 52.4   student trainees to get practical experience at the academies.  
 52.5   The students must be preparing themselves in a professional 
 52.6   field that provides special services to children with a 
 52.7   disability in school programs.  To be a student trainee in a 
 52.8   field, a person must have completed at least two years of an 
 52.9   approved program in the field.  A person who is licensed or 
 52.10  registered in the field must provide appropriate supervision of 
 52.11  each student trainee.  
 52.12     Sec. 83.  Minnesota Statutes 1994, section 128A.023, is 
 52.13  amended to read: 
 52.14     128A.023 [DUTIES OF STATE DEPARTMENTS.] 
 52.15     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The department 
 52.16  of education must assist the state board of education in 
 52.17  preparing reports on the academies.  
 52.18     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
 52.19  department of employee relations, in cooperation with the state 
 52.20  board department of education, must develop a statement of 
 52.21  necessary qualifications and skills for all staff members of the 
 52.22  academies. 
 52.23     Sec. 84.  Minnesota Statutes 1994, section 128A.024, 
 52.24  subdivision 2, is amended to read: 
 52.25     Subd. 2.  [VARIOUS LEVELS OF SERVICE.] The academies must 
 52.26  provide their pupils with the levels of service defined in rules 
 52.27  of the state board commissioner. 
 52.28     Sec. 85.  Minnesota Statutes 1994, section 128A.025, 
 52.29  subdivision 2, is amended to read: 
 52.30     Subd. 2.  [TEACHER STANDARDS.] A teacher at the academies 
 52.31  is subject to the standards of the board of teaching and the 
 52.32  state board department of education.  
 52.33     Sec. 86.  Minnesota Statutes 1994, section 128A.026, 
 52.34  subdivision 1, is amended to read: 
 52.35     Subdivision 1.  [SUBJECTS.] The rules of the state 
 52.36  board commissioner of education authorized in section 128A.02 
 53.1   must establish procedures for:  
 53.2      (1) admission, including short-term admission, to the 
 53.3   academies; 
 53.4      (2) discharge from the academies; 
 53.5      (3) decisions on a pupil's program at the academies; and 
 53.6      (4) evaluation of a pupil's progress at the academies.  
 53.7      Sec. 87.  Minnesota Statutes 1994, section 128A.05, 
 53.8   subdivision 3, is amended to read: 
 53.9      Subd. 3.  [OUT-OF-STATE ADMISSIONS.] An applicant from 
 53.10  another state who can benefit from attending either academy may 
 53.11  be admitted to the academy if the admission does not prevent an 
 53.12  eligible Minnesota resident from being admitted.  The state 
 53.13  board commissioner of education must obtain reimbursement from 
 53.14  the other state for the costs of the out-of-state admission.  
 53.15  The state board commissioner may enter into an agreement with 
 53.16  the appropriate authority in the other state for the 
 53.17  reimbursement.  Money received from another state must be 
 53.18  deposited in the general fund and credited to the general 
 53.19  operating account of the academies.  The money is appropriated 
 53.20  to the academies. 
 53.21     Sec. 88.  Minnesota Statutes 1994, section 128A.07, 
 53.22  subdivision 2, is amended to read: 
 53.23     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
 53.24  liable for support of a pupil cannot support the pupil, the 
 53.25  local social services agency of the county of the pupil's 
 53.26  residence must do so.  The commissioner of education must decide 
 53.27  how much the local social services agency must pay.  The state 
 53.28  board of education must adopt rules that tell how the 
 53.29  commissioner is to fix the amount by rule.  The local social 
 53.30  services agency must make the payment to the superintendent of 
 53.31  the school district of residence.  
 53.32     Sec. 89.  Minnesota Statutes 1994, section 128A.09, 
 53.33  subdivision 3, is amended to read: 
 53.34     Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
 53.35  commissioner may enter into agreements for the academies to 
 53.36  provide respite care and supplemental educational instruction 
 54.1   and services including assessments and counseling.  The 
 54.2   agreements may be made with public or private agencies or 
 54.3   institutions, school districts, education cooperative service 
 54.4   units, or counties.  The board commissioner may authorize the 
 54.5   academies to provide conferences, seminars, nondistrict and 
 54.6   district requested technical assistance, and production of 
 54.7   instructionally related materials. 
 54.8      Sec. 90.  Minnesota Statutes 1994, section 134.201, 
 54.9   subdivision 1, is amended to read: 
 54.10     Subdivision 1.  [ESTABLISHMENT.] Regional public library 
 54.11  districts may be established under this section in the areas of 
 54.12  the existing Great River Regional library system and the East 
 54.13  Central Regional library system.  The geographic boundaries 
 54.14  shall be those established by the state board commissioner of 
 54.15  education under section 134.34, subdivision 3.  
 54.16     Sec. 91.  Minnesota Statutes 1994, section 134.22, is 
 54.17  amended to read: 
 54.18     134.22 [COMPACT ADMINISTRATOR.] 
 54.19     The state board commissioner of education shall designate 
 54.20  an officer or employee of the state department of education as 
 54.21  compact administrator.  The compact administrator shall receive 
 54.22  copies of all agreements entered into by the state or its 
 54.23  political subdivisions and other states or political 
 54.24  subdivisions; consult with, advise, and aid such governmental 
 54.25  units in the formulation of such agreements; make such 
 54.26  recommendations to the governor, legislature, and governmental 
 54.27  agencies and units as the administrator deems desirable to 
 54.28  effectuate the purposes of this compact; and consult and 
 54.29  cooperate with the compact administrators of other party states. 
 54.30     Sec. 92.  Minnesota Statutes 1994, section 134.32, 
 54.31  subdivision 8, is amended to read: 
 54.32     Subd. 8.  (a) The state board commissioner of education 
 54.33  shall promulgate rules consistent with sections 134.32 to 134.35 
 54.34  governing: 
 54.35     (1) applications for these grants; 
 54.36     (2) computation formulas for determining the amounts of 
 55.1   establishment grants and regional library basic system support 
 55.2   grants; and 
 55.3      (3) eligibility criteria for grants. 
 55.4      (b) To the extent allowed under federal law, a construction 
 55.5   grant applicant, in addition to the points received under 
 55.6   Minnesota Rules, part 3530.2632, shall receive an additional 
 55.7   five points if the construction grant is for a project combining 
 55.8   public library services and school district library services at 
 55.9   a single location. 
 55.10     Sec. 93.  Minnesota Statutes 1994, section 134.34, 
 55.11  subdivision 3, is amended to read: 
 55.12     Subd. 3.  [REGIONAL DESIGNATION.] Regional library basic 
 55.13  system support grants shall be made only to those regional 
 55.14  public library systems officially designated by the state board 
 55.15  commissioner of education as the appropriate agency to 
 55.16  strengthen, improve and promote public library services in the 
 55.17  participating areas.  The state board of education commissioner 
 55.18  shall designate no more than one such regional public library 
 55.19  system located entirely within any single development region 
 55.20  existing under sections 462.381 to 462.398 or chapter 473. 
 55.21     Sec. 94.  Minnesota Statutes 1994, section 134.351, 
 55.22  subdivision 1, is amended to read: 
 55.23     Subdivision 1.  [ESTABLISHMENT.] The state board 
 55.24  commissioner of education, upon the advice of the advisory 
 55.25  council to the office of library development and services, may 
 55.26  approve the establishment of multicounty, multitype library 
 55.27  systems and the geographic boundaries of those systems.  
 55.28     Sec. 95.  Minnesota Statutes 1994, section 134.36, is 
 55.29  amended to read: 
 55.30     134.36 [RULES.] 
 55.31     The state board commissioner of education shall promulgate 
 55.32  rules as necessary for implementation of library grant programs. 
 55.33     Sec. 96.  Minnesota Statutes 1994, section 136A.041, is 
 55.34  amended to read: 
 55.35     136A.041 [ANNUAL MEETING OF HIGHER EDUCATION BOARD 
 55.36  MEMBERS.] 
 56.1      The higher education coordinating board shall sponsor an 
 56.2   annual meeting of member representatives of the higher education 
 56.3   coordinating board, the higher education facilities authority, 
 56.4   the state board for community colleges, the state university 
 56.5   board, the state board department of education, and the board of 
 56.6   regents of the University of Minnesota, to provide an 
 56.7   opportunity for discussion of issues of mutual concern and to 
 56.8   facilitate coordination and planning of activities deemed 
 56.9   beneficial to higher education in this state.  The higher 
 56.10  education coordinating board, the higher education facilities 
 56.11  authority, the state board for community colleges, the state 
 56.12  university board, the state board department of education, and 
 56.13  the board of regents shall each designate one person and an 
 56.14  alternate from among its membership to attend each meeting.  
 56.15  Members of the higher education advisory council and any other 
 56.16  person may attend an annual meeting at the invitation of the 
 56.17  higher education coordinating board or the representatives 
 56.18  designated under the provisions of this section.  A summary of 
 56.19  the discussion and any recommendations approved at the meeting 
 56.20  shall be transmitted by the higher education coordinating board 
 56.21  to the appropriate committees and subcommittees of the 
 56.22  legislature. 
 56.23     Sec. 97.  Minnesota Statutes 1994, section 136D.75, is 
 56.24  amended to read: 
 56.25     136D.75 [STATE BOARD COMMISSIONER APPROVAL TO RUN TECHNICAL 
 56.26  COLLEGE, ISSUE BONDS.] 
 56.27     Prior to the commencement of the operation of any technical 
 56.28  college, the intermediate school board shall obtain the approval 
 56.29  of the state board commissioner of education.  Prior to the 
 56.30  issuance of any bonds contemplated by sections 136D.71 to 
 56.31  136D.77 for post-secondary technical education, written approval 
 56.32  by the state board of technical colleges shall be obtained. 
 56.33     Sec. 98.  Minnesota Statutes 1994, section 138.054, 
 56.34  subdivision 2, is amended to read: 
 56.35     Subd. 2.  [ESTABLISHMENT.] (a) There is hereby established 
 56.36  a Minnesota history and government learning center.  
 57.1      (b) The center shall be cosponsored by the Minnesota 
 57.2   historical society, the Minnesota state university board and the 
 57.3   Minnesota state board department of education.  
 57.4      (c) The headquarters of the center shall be the Minnesota 
 57.5   historical society.  
 57.6      (d) The director of the Minnesota historical society shall 
 57.7   appoint the administrator of the center after consultation with 
 57.8   the executive council of the Minnesota historical society, the 
 57.9   chancellor of the state university board and the commissioner of 
 57.10  education. 
 57.11     (e) High school and university students selected for 
 57.12  workshops sponsored by the center shall be apportioned evenly 
 57.13  among the legislative districts of the state. 
 57.14     Sec. 99.  Minnesota Statutes 1994, section 169.448, 
 57.15  subdivision 2, is amended to read: 
 57.16     Subd. 2.  [SCHOOL MOTOR COACHES.] (a) Neither a school 
 57.17  district nor a technical college may acquire a motor coach for 
 57.18  transportation purposes.  
 57.19     (b) A motor coach acquired by a school district or 
 57.20  technical college before March 26, 1986, may be used by it only 
 57.21  to transport students participating in school activities, their 
 57.22  instructors, and supporting personnel to and from school 
 57.23  activities.  A motor coach may not be outwardly equipped and 
 57.24  identified as a school bus.  A motor coach operated under this 
 57.25  subdivision is not a school bus for purposes of section 
 57.26  124.225.  The state board of education department of public 
 57.27  safety shall implement rules governing the equipment, 
 57.28  identification, operation, inspection, and certification of 
 57.29  motor coaches operated under this subdivision.  
 57.30     (c) After January 1, 1998, neither a school district nor a 
 57.31  technical college may own or operate a motor coach for any 
 57.32  purpose.  
 57.33     Sec. 100.  Minnesota Statutes 1994, section 169.974, 
 57.34  subdivision 2, is amended to read: 
 57.35     Subd. 2.  [LICENSE REQUIREMENTS.] No person shall operate a 
 57.36  motorcycle on any street or highway without having a valid 
 58.1   standard driver's license with a two-wheeled vehicle endorsement 
 58.2   as provided by law.  No such two-wheeled vehicle endorsement 
 58.3   shall be issued unless the person applying therefor has in 
 58.4   possession a valid two-wheeled vehicle instruction permit as 
 58.5   provided herein, has passed a written examination and road test 
 58.6   administered by the department of public safety for such 
 58.7   endorsement, and, in the case of applicants under 18 years of 
 58.8   age, shall present a certificate or other evidence of having 
 58.9   successfully completed an approved two-wheeled vehicle driver's 
 58.10  safety course in this or another state, in accordance with rules 
 58.11  promulgated by the state board of education for courses offered 
 58.12  through the public schools, or rules promulgated by the 
 58.13  commissioner of public safety for courses offered by a private 
 58.14  or commercial school or institute.  The commissioner of public 
 58.15  safety may waive the road test for any applicant on determining 
 58.16  that the applicant possesses a valid license to operate a 
 58.17  two-wheeled vehicle issued by a jurisdiction that requires a 
 58.18  comparable road test for license issuance.  A two-wheeled 
 58.19  vehicle instruction permit shall be issued to any person over 16 
 58.20  years of age, who is in possession of a valid driver's license, 
 58.21  who is enrolled in an approved two-wheeled vehicle driver's 
 58.22  safety course, and who has passed a written examination for such 
 58.23  permit and has paid such fee as the commissioner of public 
 58.24  safety shall prescribe.  A two-wheeled vehicle instruction 
 58.25  permit shall be effective for 45 days, and may be renewed under 
 58.26  rules to be prescribed by the commissioner of public safety. 
 58.27     No person who is operating by virtue of a two-wheeled 
 58.28  vehicle instruction permit shall: 
 58.29     (a) Carry any passengers on the streets and highways of 
 58.30  this state on the motorcycle which the person is operating; 
 58.31     (b) Drive the motorcycle at night time; 
 58.32     (c) Drive the motorcycle on any highway marked by the 
 58.33  commissioner as an interstate highway pursuant to title 23 of 
 58.34  the United States Code; or 
 58.35     (d) Drive the motorcycle without wearing protective 
 58.36  headgear that complies with standards established by the 
 59.1   commissioner of public safety. 
 59.2      Notwithstanding the provisions of this subdivision, the 
 59.3   commissioner of public safety may, however, issue a special 
 59.4   motorcycle permit, restricted or qualified in such manner as the 
 59.5   commissioner of public safety shall deem proper, to any person 
 59.6   demonstrating a need therefor and unable to qualify for a 
 59.7   standard driver's license. 
 59.8      Sec. 101.  Minnesota Statutes 1994, section 171.04, 
 59.9   subdivision 1, is amended to read: 
 59.10     Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
 59.11  shall not issue a driver's license hereunder: 
 59.12     (1) To any person who is under the age of 16 years; to any 
 59.13  person under 18 years unless such person shall have successfully 
 59.14  completed a course in driver education, including both classroom 
 59.15  and behind-the-wheel instruction, approved by the state board 
 59.16  department of education for courses offered through the public 
 59.17  schools, or, in the case of a course offered by a private, 
 59.18  commercial driver education school or institute, by the 
 59.19  department of public safety; except when such person has 
 59.20  completed a course of driver education in another state or has a 
 59.21  previously issued valid license from another state or country; 
 59.22  nor to any person under 18 years unless the application of 
 59.23  license is approved by either parent when both reside in the 
 59.24  same household as the minor applicant, otherwise the parent or 
 59.25  spouse of the parent having custody or with whom the minor is 
 59.26  living in the event there is no court order for custody, or 
 59.27  guardian having the custody of such minor, or in the event a 
 59.28  person under the age of 18 has no living father, mother or 
 59.29  guardian, the license shall not be issued to such person unless 
 59.30  the application therefor is approved by the person's employer.  
 59.31  Driver education courses offered in any public school shall be 
 59.32  open for enrollment to persons between the ages of 15 and 18 
 59.33  years residing in the school district or attending school 
 59.34  therein.  Any public school offering driver education courses 
 59.35  may charge an enrollment fee for the driver education course 
 59.36  which shall not exceed the actual cost thereof to the public 
 60.1   school and the school district.  The approval required herein 
 60.2   shall contain a verification of the age of the applicant; 
 60.3      (2) To any person whose license has been suspended during 
 60.4   the period of suspension except that a suspended license may be 
 60.5   reinstated during the period of suspension upon the licensee 
 60.6   furnishing proof of financial responsibility in the same manner 
 60.7   as provided in the Minnesota no-fault automobile insurance act; 
 60.8      (3) To any person whose license has been revoked except 
 60.9   upon furnishing proof of financial responsibility in the same 
 60.10  manner as provided in the Minnesota no-fault automobile 
 60.11  insurance act and if otherwise qualified; 
 60.12     (4) To any person who is a drug dependent person as defined 
 60.13  in section 254A.02, subdivision 5; 
 60.14     (5) To any person who has been adjudged legally incompetent 
 60.15  by reason of mental illness, mental deficiency, or inebriation, 
 60.16  and has not been restored to capacity, unless the department is 
 60.17  satisfied that such person is competent to operate a motor 
 60.18  vehicle with safety to persons or property; 
 60.19     (6) To any person who is required by this chapter to take 
 60.20  an examination, unless such person shall have successfully 
 60.21  passed such examination; 
 60.22     (7) To any person who is required under the provisions of 
 60.23  the Minnesota no-fault automobile insurance act of this state to 
 60.24  deposit proof of financial responsibility and who has not 
 60.25  deposited such proof; 
 60.26     (8) To any person when the commissioner has good cause to 
 60.27  believe that the operation of a motor vehicle on the highways by 
 60.28  such person would be inimical to public safety or welfare; 
 60.29     (9) To any person when, in the opinion of the commissioner, 
 60.30  such person is afflicted with or suffering from such physical or 
 60.31  mental disability or disease as will affect such person in a 
 60.32  manner to prevent the person from exercising reasonable and 
 60.33  ordinary control over a motor vehicle while operating the same 
 60.34  upon the highways; nor to a person who is unable to read and 
 60.35  understand official signs regulating, warning, and directing 
 60.36  traffic; 
 61.1      (10) To a child for whom a court has ordered denial of 
 61.2   driving privileges under section 260.195, subdivision 3a, until 
 61.3   the period of denial is completed; or 
 61.4      (11) To any person whose license has been canceled, during 
 61.5   the period of cancellation. 
 61.6      Sec. 102.  Minnesota Statutes 1994, section 216C.13, is 
 61.7   amended to read: 
 61.8      216C.13 [POST-SECONDARY ENERGY EDUCATION.] 
 61.9      The commissioner, in consultation with the state board of 
 61.10  education, the higher education coordinating board, the state 
 61.11  board for community colleges, the state university board, and 
 61.12  the board of regents of the University of Minnesota, shall 
 61.13  assist in the development and implementation of adult and 
 61.14  post-secondary energy education programs. 
 61.15     Sec. 103.  Minnesota Statutes 1994, section 248.07, 
 61.16  subdivision 3, is amended to read: 
 61.17     Subd. 3.  [SPECIAL ATTENTION.] The commissioner shall give 
 61.18  special attention to the cases of handicapped youth who are 
 61.19  eligible to attend the Minnesota state academy for the blind, 
 61.20  the Minnesota state academy for the deaf, or the public school 
 61.21  classes for handicapped children, but are not in attendance 
 61.22  thereat, or are not receiving adequate instruction elsewhere.  
 61.23  The commissioner shall report all such cases to the school 
 61.24  district of the individual's residence and to the state board 
 61.25  department of education. 
 61.26     Sec. 104.  Minnesota Statutes 1994, section 465.797, 
 61.27  subdivision 1, is amended to read: 
 61.28     Subdivision 1.  [GENERALLY.] (a) Except as provided in 
 61.29  paragraph (b), A local government unit may request the board of 
 61.30  government innovation and cooperation to grant a waiver from one 
 61.31  or more administrative rules or a temporary, limited exemption 
 61.32  from enforcement of state procedural laws governing delivery of 
 61.33  services by the local government unit.  Two or more local 
 61.34  government units may submit a joint application for a waiver or 
 61.35  exemption under this section if they propose to cooperate in 
 61.36  providing a service or program that is subject to the rule or 
 62.1   law.  Before submitting an application to the board, the 
 62.2   governing body of the local government unit must approve, in 
 62.3   concept, the proposed waiver or exemption at a meeting required 
 62.4   to be public under section 471.705.  A local government unit or 
 62.5   two or more units acting jointly may apply for a waiver or 
 62.6   exemption on behalf of a nonprofit organization providing 
 62.7   services to clients whose costs are paid by the unit or units.  
 62.8   A waiver or exemption granted to a nonprofit organization under 
 62.9   this section applies to services provided to all the 
 62.10  organization's clients. 
 62.11     (b) A school district that is granted a variance from rules 
 62.12  of the state board of education under section 121.11, 
 62.13  subdivision 12, need not apply to the board for a waiver of 
 62.14  those rules under this section.  A school district may not seek 
 62.15  a waiver of rules under this section if the state board of 
 62.16  education has authority to grant a variance to the rules under 
 62.17  section 121.11, subdivision 12.  This paragraph does not 
 62.18  preclude a school district from being included in a cooperative 
 62.19  effort with another local government unit under this section.  
 62.20     Sec. 105.  Minnesota Statutes 1994, section 471.18, is 
 62.21  amended to read: 
 62.22     471.18 [STATE BOARD COMMISSIONER OF EDUCATION TO ESTABLISH 
 62.23  QUALIFICATIONS.] 
 62.24     In all cases where school funds or property are utilized, 
 62.25  the state board commissioner of education shall: 
 62.26     (1) Establish minimum qualifications of local recreational 
 62.27  directors and instructors; 
 62.28     (2) Prepare or cause to be prepared, published, and 
 62.29  distributed adequate and appropriate manuals and other materials 
 62.30  as it may deem necessary or suitable to carry out the provisions 
 62.31  of sections 471.15 to 471.19.  
 62.32     Sec. 106.  [REVISOR INSTRUCTION.] 
 62.33     In the next and subsequent editions of Minnesota Statutes 
 62.34  and Minnesota Rules, the revisor shall change the term "state 
 62.35  board of education" or similar terms to the term "department of 
 62.36  education" or similar terms wherever they appear. 
 63.1      The revisor shall prepare a report for the 1996 legislature 
 63.2   showing where these changes were made. 
 63.3      Sec. 107.  [REPEALER.] 
 63.4      Minnesota Statutes 1994, sections 15.014, subdivision 3; 
 63.5   121.02, subdivision 4; 121.03; 121.04; 121.06; 121.11; 121.15, 
 63.6   subdivision 5; 123.78, subdivision 3; 124.431, subdivision 6; 
 63.7   126.22, subdivision 5; 126.665; and 128A.023, subdivision 1, are 
 63.8   repealed.