1.1                          A bill for an act
  1.2             relating to education; increasing the general 
  1.3             education basic formula allowance; enhancing funding 
  1.4             for pupil transportation; removing the referendum 
  1.5             subtraction; including lease payments in the 
  1.6             calculation of debt service equalization aid; 
  1.7             lengthening the school year; lowering the age of 
  1.8             compulsory instruction; reestablishing a separate 
  1.9             capital fund; appropriating money; amending Minnesota 
  1.10            Statutes 1996, sections 120.101, subdivision 5, and by 
  1.11            adding a subdivision; 120.105; 121.904, subdivision 
  1.12            4a; 124.225, subdivisions 1, 3a, 7b, 7d, and 8a; 
  1.13            124.226, subdivisions 4 and 9; 124.2725, subdivision 
  1.14            16; 124.95, subdivision 1; 124.961; 124A.22, 
  1.15            subdivisions 1, 2, as amended, 8, and 13b; 124A.225, 
  1.16            subdivision 4; and 298.28, subdivision 4; proposing 
  1.17            coding for new law in Minnesota Statutes, chapter 
  1.18            124A; repealing Minnesota Statutes 1996, sections 
  1.19            124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, 
  1.20            subdivisions 1, 3, 3a, and 10; 124A.03, subdivisions 
  1.21            3b and 3c; and 124A.22, subdivisions 10, 11, 11a, 12, 
  1.22            13, and 13a. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 1996, section 120.101, 
  1.25  subdivision 5, is amended to read: 
  1.26     Subd. 5.  [AGES AND TERMS.] For the 1988-1989 school year 
  1.27  and the school years thereafter, every child between seven and 
  1.28  16 years of age shall receive instruction for at least the 
  1.29  number of days each year required under subdivision 5b 5d.  For 
  1.30  the 2000-2001 school year and later school years, every child 
  1.31  between seven and 18 years of age shall receive instruction for 
  1.32  at least the number of days each year required under subdivision 
  1.33  5b.  Every child under the age of seven who is enrolled in a 
  1.34  half-day kindergarten, or a full-day kindergarten program on 
  2.1   alternate days, or other kindergarten programs shall receive 
  2.2   instruction at least equivalent to half of each day for the 
  2.3   number of days each year set out in subdivision 5b 5d.  Except 
  2.4   as provided in subdivision 5a, a parent may withdraw a child 
  2.5   under the age of seven from enrollment at any time. 
  2.6      Sec. 2.  Minnesota Statutes 1996, section 120.101, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 5d.  [INSTRUCTIONAL DAYS.] Every child required to 
  2.9   receive instruction according to subdivision 5 shall receive 
  2.10  instruction for at least 170 days during the 1997-1998 school 
  2.11  year.  For each year thereafter, the number of instructional 
  2.12  days shall be increased by two, until the days of instruction 
  2.13  reaches 190 days. 
  2.14     Sec. 3.  Minnesota Statutes 1996, section 120.105, is 
  2.15  amended to read: 
  2.16     120.105 [EDUCATION STATEMENT.] 
  2.17     Each year every school, as defined in section 120.101, 
  2.18  subdivision 4, offering a kindergarten program must ensure that 
  2.19  the school principal, kindergarten teacher, or other 
  2.20  professional, discusses and distributes the following statement 
  2.21  to every parent, guardian, or other person enrolling a child in 
  2.22  kindergarten:  
  2.23     "The state of Minnesota requires that every child entering 
  2.24  kindergarten this school year must graduate from high school or 
  2.25  remain in high school or in an alternative program until age 
  2.26  18 16.  Only those who have been accepted in the military or an 
  2.27  institution of higher learning can leave school before they are 
  2.28  18 16 years old."  
  2.29     The department of children, families, and learning must 
  2.30  make appropriate provisions to accommodate those children who 
  2.31  newly enroll in a public school after kindergarten.  All other 
  2.32  schools must make similar provisions.  
  2.33     Sec. 4.  Minnesota Statutes 1996, section 121.904, 
  2.34  subdivision 4a, is amended to read: 
  2.35     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.36  settlement revenue" means the current, delinquent, and 
  3.1   manufactured home property tax receipts collected by the county 
  3.2   and distributed to the school district, including distributions 
  3.3   made pursuant to section 279.37, subdivision 7, and excluding 
  3.4   the amount levied pursuant to section 124.914, subdivision 1. 
  3.5      (b) In June of each year, the school district shall 
  3.6   recognize as revenue, in the fund for which the levy was made, 
  3.7   the lesser of:  
  3.8      (1) the May, June, and July school district tax settlement 
  3.9   revenue received in that calendar year; or 
  3.10     (2) the sum of the state aids and credits enumerated in 
  3.11  section 124.155, subdivision 2, which are for the fiscal year 
  3.12  payable in that fiscal year plus an amount equal to the levy 
  3.13  recognized as revenue in June of the prior year plus 31 percent 
  3.14  for fiscal year 1996 and thereafter of the amount of the levy 
  3.15  certified in the prior calendar year according to section 
  3.16  124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  3.17  including levy portions that are assumed by the state; or 
  3.18     (3) 18.1 percent for fiscal year 1996, the zero percent 
  3.19  determined under Laws 1996, chapter 461, section 3, for fiscal 
  3.20  year 1997 and that same percent thereafter of the amount of the 
  3.21  levy certified in the prior calendar year, plus or minus 
  3.22  auditor's adjustments, not including levy portions that are 
  3.23  assumed by the state, which remains after subtracting, by fund, 
  3.24  the amounts levied for the following purposes:  
  3.25     (i) reducing or eliminating projected deficits in the 
  3.26  reserved fund balance accounts for unemployment insurance and 
  3.27  bus purchases; 
  3.28     (ii) statutory operating debt pursuant to section 124.914, 
  3.29  subdivision 1; 
  3.30     (iii) retirement and severance pay pursuant to sections 
  3.31  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  3.32  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  3.33  1975, chapter 261, section 4; 
  3.34     (iv) amounts levied for bonds issued and interest thereon, 
  3.35  amounts levied for debt service loans and capital loans, amounts 
  3.36  levied for down payments under section 124.82, subdivision 3; 
  4.1   and 
  4.2      (v) amounts levied under section 124.755.  
  4.3      Notwithstanding the foregoing, the levy recognition 
  4.4   percentage for the referendum levy certified according to 
  4.5   section 124A.03, subdivision 2, is 31 percent. 
  4.6      (c) In July of each year, the school district shall 
  4.7   recognize as revenue that portion of the school district tax 
  4.8   settlement revenue received in that calendar year and not 
  4.9   recognized as revenue for the previous fiscal year pursuant to 
  4.10  clause (b).  
  4.11     (d) All other school district tax settlement revenue shall 
  4.12  be recognized as revenue in the fiscal year of the settlement. 
  4.13  Portions of the school district levy assumed by the state, 
  4.14  including prior year adjustments and the amount to fund the 
  4.15  school portion of the reimbursement made pursuant to section 
  4.16  273.425, shall be recognized as revenue in the fiscal year 
  4.17  beginning in the calendar year for which the levy is payable. 
  4.18     Sec. 5.  Minnesota Statutes 1996, section 124.225, 
  4.19  subdivision 1, is amended to read: 
  4.20     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  4.21  section, the terms defined in this subdivision have the meanings 
  4.22  given to them. 
  4.23     (a) "FTE" means a full-time equivalent pupil whose 
  4.24  transportation is authorized for aid purposes by section 124.223.
  4.25     (b) "Authorized cost for regular transportation" 
  4.26  means "Actual expenditure per pupil transported in the regular 
  4.27  and excess transportation categories" means the quotient 
  4.28  obtained by dividing: 
  4.29     (1) the sum of: 
  4.30     (1) (i) all expenditures for transportation in the regular 
  4.31  category, as defined in paragraph (c), clause (1), for which aid 
  4.32  is authorized in section 124.223 and the excess category, as 
  4.33  defined in paragraph (b), clause (2), plus 
  4.34     (2) (ii) an amount equal to one year's depreciation on the 
  4.35  district's school bus fleet and mobile units computed on a 
  4.36  straight line basis at the rate of 15 percent per year for 
  5.1   districts operating a program under section 121.585 for grades 1 
  5.2   to 12 for all students in the district and 12-1/2 percent per 
  5.3   year for other districts of the cost of the fleet, plus 
  5.4      (3) an amount equal to one year's depreciation on district 
  5.5   school buses reconditioned by the department of corrections 
  5.6   computed on a straight line basis at the rate of 33-1/3 percent 
  5.7   per year of the cost to the district of the reconditioning, plus 
  5.8      (4) (iii) an amount equal to one year's depreciation on the 
  5.9   district's type three school buses, as defined in section 
  5.10  169.01, subdivision 6, clause (5), which must be used a majority 
  5.11  of the time for the pupil transportation purposes in sections 
  5.12  124.223 and 124.226, subdivisions 5, 8, and 9, and were 
  5.13  purchased after July 1, 1982, for authorized transportation of 
  5.14  pupils, computed on a straight line basis at the rate of 20 
  5.15  percent per year of the cost of the type three school buses by: 
  5.16     (2) the number of pupils eligible for transportation in the 
  5.17  regular category, as defined in paragraph (c), clause (1), and 
  5.18  the excess category, as defined in paragraph (c), clause (2).  
  5.19     (c) "Transportation category" means a category of 
  5.20  transportation service provided to pupils as follows:  
  5.21     (1) Regular transportation is transportation services 
  5.22  provided during the regular school year under section 124.223, 
  5.23  subdivisions 1 and 2, excluding the following transportation 
  5.24  services provided under section 124.223, subdivision 1:  
  5.25  transportation between schools; transportation to and from 
  5.26  service-learning programs; noon transportation to and from 
  5.27  school for kindergarten pupils attending half-day sessions; 
  5.28  transportation of pupils to and from schools located outside 
  5.29  their normal attendance areas under the provisions of a plan for 
  5.30  desegregation mandated by the state board of education or under 
  5.31  court order; and transportation of elementary pupils to and from 
  5.32  school within a mobility zone.: 
  5.33     (i) transportation to and from school during the regular 
  5.34  school year for resident elementary pupils residing one mile or 
  5.35  more from the public or nonpublic school they attend, and 
  5.36  resident secondary pupils residing two miles or more from the 
  6.1   public or nonpublic school they attend, excluding desegregation 
  6.2   transportation and noon kindergarten transportation; but with 
  6.3   respect to transportation of pupils to and from nonpublic 
  6.4   schools, only to the extent permitted by sections 123.76 to 
  6.5   123.79; 
  6.6      (ii) transportation of resident pupils to and from language 
  6.7   immersion programs; 
  6.8      (iii) transportation of a pupil who is a custodial parent 
  6.9   and that pupil's child between the pupil's home and the child 
  6.10  care provider and between the provider and the school, if the 
  6.11  home and provider are within the attendance area of the school; 
  6.12  and 
  6.13     (iv) transportation to and from or board and lodging in 
  6.14  another district, of resident pupils of a district without a 
  6.15  secondary school. 
  6.16     For the purposes of this paragraph, a district may 
  6.17  designate a licensed day care facility, respite care facility, 
  6.18  the residence of a relative, or the residence of a person chosen 
  6.19  by the pupil's parent or guardian as the home of a pupil for 
  6.20  part or all of the day, if requested by the pupil's parent or 
  6.21  guardian, and if that facility or residence is within the 
  6.22  attendance area of the school the pupil attends. 
  6.23     (2) Nonregular transportation is: 
  6.24     (i) transportation services provided under section 124.223, 
  6.25  subdivision 1, that are excluded from the regular 
  6.26  category between schools a resident pupil attends for 
  6.27  instructional classes or to and from a service learning program 
  6.28  under section 124.223, subdivision 1, paragraph (a); 
  6.29     (ii) transportation of an elementary pupil within a 
  6.30  mobility zone under section 124.223, subdivision 1, paragraphs 
  6.31  (c), (d), and (e); and 
  6.32     (iii) transportation services provided under section 
  6.33  124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
  6.34     (3) Excess transportation is transportation to and from 
  6.35  school during the regular school year for secondary pupils 
  6.36  residing at least one mile but less than two miles from the 
  7.1   public school they could attend or from the nonpublic school 
  7.2   actually attended they attend, and transportation to and from 
  7.3   school for pupils residing less than one mile from school who 
  7.4   are transported because of extraordinary traffic, drug, or crime 
  7.5   hazards. 
  7.6      (4) Desegregation transportation is transportation within 
  7.7   and outside of the district during the regular school year of 
  7.8   pupils to and from schools located outside their normal 
  7.9   attendance areas under a plan for desegregation mandated by the 
  7.10  state board or under court order.  
  7.11     (5) Handicapped transportation is transportation provided 
  7.12  under section 124.223, subdivision 4, for pupils with a 
  7.13  disability between home or a respite care facility and school or 
  7.14  other buildings where special instruction required by sections 
  7.15  120.17 and 120.1701 is provided. "Transportation services for 
  7.16  pupils with disabilities" is: 
  7.17     (i) transportation of pupils with disabilities who cannot 
  7.18  be transported on a regular school bus between home or a respite 
  7.19  care facility and school; 
  7.20     (ii) necessary transportation of pupils with disabilities 
  7.21  from home or from school to other buildings, including centers 
  7.22  such as developmental achievement centers, hospitals, and 
  7.23  treatment centers where special instruction or services required 
  7.24  by sections 120.17 and 120.1701 are provided, within or outside 
  7.25  the district where services are provided; 
  7.26     (iii) necessary transportation for resident pupils with 
  7.27  disabilities required by sections 120.17, subdivision 4a, and 
  7.28  120.1701; 
  7.29     (iv) board and lodging for pupils with disabilities in a 
  7.30  district maintaining special classes; 
  7.31     (v) transportation from one educational facility to another 
  7.32  within the district for resident pupils enrolled on a 
  7.33  shared-time basis in educational programs, and necessary 
  7.34  transportation required by sections 120.17, subdivision 9, and 
  7.35  120.1701, for resident pupils with disabilities who are provided 
  7.36  special instruction and services on a shared-time basis; 
  8.1      (vi) transportation for resident pupils with disabilities 
  8.2   to and from board and lodging facilities when the pupil is 
  8.3   boarded and lodged for educational purposes; and 
  8.4      (vii) services described in clauses (i) to (vi), when 
  8.5   provided for pupils with disabilities in conjunction with a 
  8.6   summer instructional program that relates to the pupil's 
  8.7   individual education plan or in conjunction with a learning year 
  8.8   program established under section 121.585. 
  8.9      (d) "Mobile unit" means a vehicle or trailer designed to 
  8.10  provide facilities for educational programs and services, 
  8.11  including diagnostic testing, guidance and counseling services, 
  8.12  and health services.  A mobile unit located off nonpublic school 
  8.13  premises is a neutral site as defined in section 123.932, 
  8.14  subdivision 9. 
  8.15     (e) "Current year" means the school year for which aid will 
  8.16  be paid.  
  8.17     (f) "Base year" means the second school year preceding the 
  8.18  school year for which aid will be paid.  
  8.19     (g) "Base cost" means the ratio of: 
  8.20     (1) the sum of the authorized cost in the base year for 
  8.21  regular transportation as defined in paragraph (b) plus the 
  8.22  actual cost in the base year for excess transportation as 
  8.23  defined in paragraph (c); 
  8.24     (2) to the sum of the number of weighted FTE's in the 
  8.25  regular and excess categories in the base year. 
  8.26     (h) "Pupil weighting factor" for the excess transportation 
  8.27  category for a school district means the lesser of one, or the 
  8.28  result of the following computation: 
  8.29     (1) Divide the square mile area of the school district by 
  8.30  the number of FTE's in the regular and excess categories in the 
  8.31  base year. 
  8.32     (2) Raise the result in clause (1) to the one-fifth power. 
  8.33     (3) Divide four-tenths by the result in clause (2). 
  8.34     The pupil weighting factor for the regular transportation 
  8.35  category is one.  
  8.36     (i) "Weighted FTE's"  means the number of FTE's in each 
  9.1   transportation category multiplied by the pupil weighting factor 
  9.2   for that category. 
  9.3      (j) "Sparsity index" for a school district means the 
  9.4   greater of .005 or the ratio of the square mile area of the 
  9.5   school district to the sum of the number of weighted FTE's by 
  9.6   the district in the regular and excess categories in the base 
  9.7   year. 
  9.8      (k) "Density index" for a school district means the greater 
  9.9   of one or the result obtained by subtracting the product of the 
  9.10  district's sparsity index times 20 from two. 
  9.11     (l) "Contract transportation index" for a school district 
  9.12  means the greater of one or the result of the following 
  9.13  computation: 
  9.14     (1) Multiply the district's sparsity index by 20. 
  9.15     (2) Select the lesser of one or the result in clause (1). 
  9.16     (3) Multiply the district's percentage of regular FTE's in 
  9.17  the current year using vehicles that are not owned by the school 
  9.18  district by the result in clause (2). 
  9.19     (m) "Adjusted predicted base cost" means the predicted base 
  9.20  cost as computed in subdivision 3a as adjusted under subdivision 
  9.21  7a. 
  9.22     (n) "Regular transportation allowance" means the adjusted 
  9.23  predicted base cost, inflated and adjusted under subdivision 7b. 
  9.24     Sec. 6.  Minnesota Statutes 1996, section 124.225, 
  9.25  subdivision 3a, is amended to read: 
  9.26     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
  9.27  base cost equals the result of the following computation:  
  9.28     (a) Multiply the transportation formula allowance by the 
  9.29  district's sparsity index raised to the one-fourth power.  The 
  9.30  transportation formula allowance is $477 $521 for the 1993-1994 
  9.31  1996-1997 base year.  
  9.32     (b) Multiply the result in paragraph (a) by the district's 
  9.33  density index raised to the 1/2 power.  
  9.34     (c) Multiply the result in paragraph (b) by the district's 
  9.35  contract transportation index raised to the 1/20 power. 
  9.36     Sec. 7.  Minnesota Statutes 1996, section 124.225, 
 10.1   subdivision 7b, is amended to read: 
 10.2      Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
 10.3   base cost determined for a district under subdivision 7a for the 
 10.4   base year must be increased by zero six percent to determine the 
 10.5   district's regular transportation allowance for the 1995-1996 
 10.6   current school year. 
 10.7      (b) Notwithstanding paragraph (a), the regular 
 10.8   transportation allowance for a district for the 1995-1996 
 10.9   current school year cannot be less than the district's minimum 
 10.10  regular transportation allowance according to Minnesota Statutes 
 10.11  1990, section 124.225, subdivision 1, paragraph (t). 
 10.12     Sec. 8.  Minnesota Statutes 1996, section 124.225, 
 10.13  subdivision 7d, is amended to read: 
 10.14     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
 10.15  for each district equals the sum of the district's regular 
 10.16  transportation revenue and the district's nonregular 
 10.17  transportation revenue. 
 10.18     (a) The regular transportation revenue for each district 
 10.19  equals the district's regular transportation allowance according 
 10.20  to subdivision 7b times the sum of the number of FTE's by the 
 10.21  district in the regular, desegregation, and handicapped 
 10.22  categories in the current school year. 
 10.23     (b) For the 1995-1996 school year, The nonregular 
 10.24  transportation revenue for each district equals the lesser of 
 10.25  the district's actual cost in the current school year for 
 10.26  nonregular transportation services or the product of the 
 10.27  district's actual cost in the base year for nonregular 
 10.28  transportation services as defined for the current year in 
 10.29  subdivision 1, paragraph (c), times the ratio of the district's 
 10.30  average daily membership for the current year to the district's 
 10.31  average daily membership for the base year according to section 
 10.32  124.17, subdivision 2, times the nonregular transportation 
 10.33  inflation factor for the current year, minus the amount of 
 10.34  regular transportation revenue attributable to FTE's in the 
 10.35  desegregation and handicapped categories in the current school 
 10.36  year, plus the excess nonregular transportation revenue for the 
 11.1   current year according to subdivision 7e.  The nonregular 
 11.2   transportation inflation factor is 1.0 1.06 for the 1995-1996 
 11.3   1998-1999 and later school year years.  
 11.4      Sec. 9.  Minnesota Statutes 1996, section 124.225, 
 11.5   subdivision 8a, is amended to read: 
 11.6      Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
 11.7   transportation aid equals the product of: 
 11.8      (1) the difference between the transportation revenue and 
 11.9   the sum of: 
 11.10     (i) the maximum basic transportation levy for that school 
 11.11  year under section 124.226, subdivision 1, plus 
 11.12     (ii) the maximum nonregular transportation levy for that 
 11.13  school year under section 124.226, subdivision 4, plus 
 11.14     (iii) (ii) the contracted services aid reduction under 
 11.15  subdivision 8k, 
 11.16     (2) times the ratio of the sum of the actual amounts levied 
 11.17  under section 124.226, subdivisions 1 and subdivision 4, to the 
 11.18  sum of the permitted maximum levies under section 
 11.19  124.226, subdivisions 1 and subdivision 4. 
 11.20     (b) If the total appropriation for transportation aid for 
 11.21  any fiscal year is insufficient to pay all districts the full 
 11.22  amount of aid earned, the department of children, families, and 
 11.23  learning shall reduce each district's aid in proportion to the 
 11.24  number of resident pupils in average daily membership in the 
 11.25  district to the state total average daily membership, and shall 
 11.26  reduce the transportation levy of off-formula districts in the 
 11.27  same proportion. 
 11.28     Sec. 10.  Minnesota Statutes 1996, section 124.226, 
 11.29  subdivision 4, is amended to read: 
 11.30     Subd. 4.  [NONREGULAR TRANSPORTATION.] A school district 
 11.31  may also make a levy for unreimbursed nonregular transportation 
 11.32  costs pursuant to this subdivision.  
 11.33     For the 1995-1996 school year, The amount of the levy shall 
 11.34  be the result of the following computation: 
 11.35     (1) multiply 
 11.36     (i) the amount of the district's nonregular transportation 
 12.1   revenue under section 124.225, subdivision 7d, that is more than 
 12.2   the product of $65 times the district's average daily 
 12.3   membership, by 
 12.4      (ii) 50 percent; 
 12.5      (2) subtract the result in clause (1) from the district's 
 12.6   total nonregular transportation revenue; 
 12.7      (3) multiply the result in clause (2) by the lesser of one 
 12.8   or the ratio of 
 12.9      (i) the quotient derived by dividing the adjusted net tax 
 12.10  capacity of the district for the year before the year the levy 
 12.11  is certified by the average daily membership in the district for 
 12.12  the school year to which the levy is attributable, to 
 12.13     (ii) $8,000. 
 12.14     Sec. 11.  Minnesota Statutes 1996, section 124.226, 
 12.15  subdivision 9, is amended to read: 
 12.16     Subd. 9.  [LATE ACTIVITY BUSES.] (a) For taxes payable in 
 12.17  1996, A school district may levy an amount equal to the lesser 
 12.18  of: 
 12.19     (1) the actual cost of late transportation home from 
 12.20  school, between schools within a district, or between schools in 
 12.21  one or more districts that have an agreement under sections 
 12.22  122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
 12.23  involved in after school activities for the that school year 
 12.24  beginning in the year the levy is certified; or 
 12.25     (2) two percent of the sum of the district's regular 
 12.26  transportation revenue and the district's nonregular 
 12.27  transportation revenue for that school year according to section 
 12.28  124.225, subdivision 7d. 
 12.29     (b) A district that levies under this section must provide 
 12.30  late transportation from school for students participating in 
 12.31  any academic-related activities provided by the district if 
 12.32  transportation is provided for students participating in 
 12.33  athletic activities. 
 12.34     (c) Notwithstanding section 121.904, 50 percent of the levy 
 12.35  certified for taxes payable in 1994, and for each year 
 12.36  thereafter the entire amount of this levy, shall be recognized 
 13.1   as revenue for the fiscal year in which the levy is certified. 
 13.2      Sec. 12.  Minnesota Statutes 1996, section 124.2725, 
 13.3   subdivision 16, is amended to read: 
 13.4      Subd. 16.  [EXCLUSION FROM FUND BALANCE.] Revenue received 
 13.5   by a district under this section for each year of cooperation 
 13.6   and the first three years of combination shall be excluded from 
 13.7   the net unreserved operating fund balance, for the purposes 
 13.8   of sections 124A.03, subdivision 3b, paragraph (c), and section 
 13.9   124A.26.  
 13.10     Sec. 13.  Minnesota Statutes 1996, section 124.95, 
 13.11  subdivision 1, is amended to read: 
 13.12     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 13.13  section, the eligible debt service revenue of a district is 
 13.14  defined as follows: 
 13.15     (1) the amount needed to produce between five and six 
 13.16  percent in excess of the amount needed to meet when due the 
 13.17  principal and interest payments on the obligations of the 
 13.18  district for eligible projects according to subdivision 2, 
 13.19  including the amounts necessary for repayment of energy loans 
 13.20  according to section 216C.37 or sections 298.292 to 298.298, 
 13.21  debt service loans and capital loans, lease payments and lease 
 13.22  purchase payments under section 124.91, subdivisions 1, 2, and 3 
 13.23  7, alternative facilities levies under section 124.239, 
 13.24  subdivision 5, minus 
 13.25     (2) the amount of debt service excess levy reduction for 
 13.26  that school year calculated according to the procedure 
 13.27  established by the commissioner. 
 13.28     (b) The obligations in this paragraph are excluded from 
 13.29  eligible debt service revenue: 
 13.30     (1) obligations under section 124.2445; 
 13.31     (2) the part of debt service principal and interest paid 
 13.32  from the taconite environmental protection fund or northeast 
 13.33  Minnesota economic protection trust; 
 13.34     (3) obligations issued under Laws 1991, chapter 265, 
 13.35  article 5, section 18, as amended by Laws 1992, chapter 499, 
 13.36  article 5, section 24; and 
 14.1      (4) obligations under section 124.2455. 
 14.2      (c) For purposes of this section, if a preexisting school 
 14.3   district reorganized under section 122.22, 122.23, or 122.241 to 
 14.4   122.248 is solely responsible for retirement of the preexisting 
 14.5   district's bonded indebtedness, capital loans or debt service 
 14.6   loans, debt service equalization aid must be computed separately 
 14.7   for each of the preexisting school districts. 
 14.8      Sec. 14.  Minnesota Statutes 1996, section 124.961, is 
 14.9   amended to read: 
 14.10     124.961 [DEBT SERVICE APPROPRIATION.] 
 14.11     (a) $30,054,000 in fiscal year 1996, $28,162,000 in fiscal 
 14.12  year 1997, and $33,948,000 $33,995,000 in fiscal year 1998, 
 14.13  $36,251,000 in fiscal year 1999, and $36,791,000 in fiscal year 
 14.14  2000 and each year thereafter is appropriated from the general 
 14.15  fund to the commissioner of children, families, and learning for 
 14.16  payment of debt service equalization aid under section 124.95.  
 14.17  The 1998 appropriation includes $4,970,000 for 1997 and 
 14.18  $28,978,000 for 1998 is based on an aid entitlement of 
 14.19  $34,091,000.  The 1999 appropriation is based on an aid 
 14.20  entitlement of $36,791,000. 
 14.21     (b) The appropriations in paragraph (a) must be reduced by 
 14.22  the amount of any money specifically appropriated for the same 
 14.23  purpose in any year from any state fund. 
 14.24     Sec. 15.  Minnesota Statutes 1996, section 124A.22, 
 14.25  subdivision 1, is amended to read: 
 14.26     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 14.27  year 1996, the general education revenue for each district 
 14.28  equals the sum of the district's basic revenue, compensatory 
 14.29  education revenue, training and experience revenue, secondary 
 14.30  sparsity revenue, elementary sparsity revenue, and supplemental 
 14.31  revenue. 
 14.32     (b) For fiscal year 1997 1999 and thereafter, the general 
 14.33  education revenue for each district equals the sum of the 
 14.34  district's basic revenue, compensatory education revenue, 
 14.35  secondary sparsity revenue, elementary sparsity revenue, 
 14.36  transportation sparsity, total operating capital revenue, 
 15.1   transition revenue, and supplemental revenue. 
 15.2      Sec. 16.  Minnesota Statutes 1996, section 124A.22, 
 15.3   subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
 15.4   amended to read: 
 15.5      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 15.6   district equals the formula allowance times the actual pupil 
 15.7   units for the school year.  The formula allowance for fiscal 
 15.8   year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 15.9   is $3,205.  The formula allowance for fiscal year 1997 and 
 15.10  subsequent fiscal years is $3,505.  The formula allowance for 
 15.11  fiscal year 1998 is $3,605.  The formula allowance for fiscal 
 15.12  year 1999 and subsequent years is $3,535. 
 15.13     Sec. 17.  Minnesota Statutes 1996, section 124A.22, 
 15.14  subdivision 8, is amended to read: 
 15.15     Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 15.16  supplemental revenue allowance for fiscal year 1994 and later 
 15.17  fiscal years equals the district's supplemental revenue for 
 15.18  fiscal year 1993 divided by the district's 1992-1993 actual 
 15.19  pupil units. 
 15.20     (b) A district's supplemental revenue allowance is reduced 
 15.21  for fiscal year 1995 and later according to subdivision 9. 
 15.22     (c) A district's supplemental revenue equals the 
 15.23  supplemental revenue allowance, if any, times its actual pupil 
 15.24  units for that year.  
 15.25     (d) A school district may cancel its supplemental revenue 
 15.26  by notifying the commissioner of education prior to June 30, 
 15.27  1994.  A school district that is reorganizing under section 
 15.28  122.22, 122.23, or 122.241 may cancel its supplemental revenue 
 15.29  by notifying the commissioner of children, families, and 
 15.30  learning prior to July 1 of the year of the reorganization.  If 
 15.31  a district cancels its supplemental revenue according to this 
 15.32  paragraph, its supplemental revenue allowance for fiscal year 
 15.33  1993 for purposes of subdivision 9 and section 124A.03, 
 15.34  subdivision 3b, equals zero. 
 15.35     Sec. 18.  Minnesota Statutes 1996, section 124A.22, 
 15.36  subdivision 13b, is amended to read: 
 16.1      Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 16.2   transportation transition allowance for fiscal year 1997 equals 
 16.3   the result of the following computation: 
 16.4      (1) if the result in subdivision 13a, paragraph (a), clause 
 16.5   (iii), for fiscal year 1997 is less than the fiscal year 1996 
 16.6   base allowance, the transportation transition allowance equals 
 16.7   the fiscal year 1996 base allowance minus the result in 
 16.8   subdivision 13a, paragraph (a), clause (iii). 
 16.9      (2) if the result in subdivision 13a, paragraph (b), for 
 16.10  fiscal year 1997 is greater than the fiscal year 1996 base 
 16.11  allowance and less than 110 percent of the fiscal year 1996 base 
 16.12  allowance, the transportation transition allowance equals zero. 
 16.13     (3) if the result in subdivision 13a, paragraph (b), for 
 16.14  fiscal year 1997 is greater than 110 percent of the fiscal year 
 16.15  1996 base allowance, the transportation transition allowance 
 16.16  equals 110 percent of the fiscal year 1996 base allowance minus 
 16.17  the result in subdivision 13a, paragraph (a), clause (iii). 
 16.18     (b) A district's transportation transition allowance for 
 16.19  fiscal year 1998 equals the result of the following: 
 16.20     (1) if the result in subdivision 13a, paragraph (a), clause 
 16.21  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 16.22  base allowance, the transportation transition allowance equals 
 16.23  the fiscal year 1996 base allowance minus the result in 
 16.24  subdivision 13a, paragraph (a), clause (iii); or 
 16.25     (2) if the result in subdivision 13a, paragraph (a), clause 
 16.26  (iii), for fiscal year 1998 is greater than or equal to the 
 16.27  fiscal year 1996 base allowance, the transportation transition 
 16.28  allowance equals zero. 
 16.29     (c) For fiscal years 1997 and 1998, a district's training 
 16.30  and experience transition allowance is equal to the training and 
 16.31  experience revenue the district would have received under 
 16.32  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 16.33  by the actual pupil units for fiscal year 1997 minus $130.  For 
 16.34  fiscal year 1999 and later, a district's training and experience 
 16.35  transition allowance equals zero.  
 16.36     If the training and experience transition allowance is less 
 17.1   than zero, the reduction shall be determined according to the 
 17.2   following schedule: 
 17.3      (i) for fiscal year 1997, the reduction is equal to .9 
 17.4   times the amount initially determined; 
 17.5      (ii) for fiscal year 1998, the reduction is equal to .75 
 17.6   times the amount initially determined; 
 17.7      (iii) for fiscal year 1999, the reduction is equal to .50 
 17.8   times the amount initially determined; 
 17.9      (iv) for fiscal year 2000, the reduction is equal to .25 
 17.10  times the amount initially determined; and 
 17.11     (v) for fiscal year 2001 and thereafter, the transition 
 17.12  allowance shall not be less than zero.  
 17.13     (d) A district's transition allowance for fiscal year 1997 
 17.14  and thereafter is equal to the sum of its transportation 
 17.15  transition allowance and its training and experience transition 
 17.16  allowance. 
 17.17     Sec. 19.  Minnesota Statutes 1996, section 124A.225, 
 17.18  subdivision 4, is amended to read: 
 17.19     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 17.20  to either paragraph (b), (c), or (d). 
 17.21     (b) Revenue shall be used to reduce and maintain the 
 17.22  district's instructor to learner ratios in kindergarten through 
 17.23  grade 6 to a level of 1 to 17 on average.  The district must 
 17.24  prioritize the use of the revenue to attain this level initially 
 17.25  in kindergarten and grade 1 and then through the subsequent 
 17.26  grades as revenue is available.  
 17.27     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 17.28  district with exceptional need as defined in subdivision 6, 
 17.29  paragraph (a), may use the revenue to reduce and maintain the 
 17.30  district's instructor-to-learner ratios in kindergarten through 
 17.31  grade 6 to a level that is at least 2.0 less than the district's 
 17.32  adopted staffing ratio, if the remaining learning and 
 17.33  development revenue is used to continue or initiate staffing 
 17.34  patterns that meet the needs of a diverse student population.  
 17.35  Programs to meet the needs of a diverse student population may 
 17.36  include programs for at-risk pupils and learning enrichment 
 18.1   programs. 
 18.2      (d) For fiscal year 1995 only, in any school building that 
 18.3   meets the characteristics of exceptional need as defined in 
 18.4   subdivision 6, paragraph (b), a district may use the revenue to 
 18.5   employ education assistants or aides supervised by a learner's 
 18.6   regular instructor to assist learners in those school buildings. 
 18.7      (e) The revenue may be used to prepare and use an 
 18.8   individualized learning plan for each learner.  A district must 
 18.9   not increase the district wide instructor-learner ratios in 
 18.10  other grades as a result of reducing instructor-learner ratios 
 18.11  in kindergarten through grade 6.  Revenue may not be used to 
 18.12  provide instructor preparation time or to provide the district's 
 18.13  share of revenue required under section 124.311.  A school 
 18.14  district may use a portion of the revenue reserved under this 
 18.15  section to employ up to the same number of full-time equivalent 
 18.16  education assistants or aides as the district employed during 
 18.17  the 1992-1993 school year under Minnesota Statutes 1992, section 
 18.18  124.331, subdivision 2. 
 18.19     Sec. 20.  [124A.32] [CAPITAL REVENUE.] 
 18.20     Subdivision 1.  [REVENUE.] (a) For fiscal year 1998 and 
 18.21  thereafter, capital revenue for a district equals the amount 
 18.22  determined under paragraph (b), (c), (d), or (e) plus $68 times 
 18.23  the actual pupil units for the school year.  The revenue must be 
 18.24  placed in a reserved account and may only be used according to 
 18.25  subdivision 2. 
 18.26     (b) For fiscal years 1998 and later, capital revenue for a 
 18.27  district equals $100 times the district's maintenance cost index 
 18.28  times its actual pupil units for the school year. 
 18.29     (c) For fiscal year 1998 the previous formula revenue for a 
 18.30  district equals $128 times its actual pupil units for fiscal 
 18.31  year 1995. 
 18.32     (d) For fiscal year 1998, the capital revenue for each 
 18.33  district equals 75 percent of the amount determined in paragraph 
 18.34  (b) plus 25 percent of the previous formula revenue. 
 18.35     (e) The revenue for a district that operates a program 
 18.36  under section 121.585 is increased by an amount equal to $15 
 19.1   times the number of actual pupil units at the site where the 
 19.2   program is implemented. 
 19.3      Subd. 2.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 19.4   operating capital revenue may be used only for the following 
 19.5   purposes: 
 19.6      (1) to acquire land for school purposes; 
 19.7      (2) to acquire or construct buildings for school purposes, 
 19.8   up to $400,000; 
 19.9      (3) to rent or lease buildings, including the costs of 
 19.10  building repair or improvement that are part of a lease 
 19.11  agreement; 
 19.12     (4) to improve and repair school sites and buildings, and 
 19.13  equip or reequip school buildings with permanent attached 
 19.14  fixtures; 
 19.15     (5) for a surplus school building that is used 
 19.16  substantially for a public nonschool purpose; 
 19.17     (6) to eliminate barriers or increase access to school 
 19.18  buildings by individuals with a disability; 
 19.19     (7) to bring school buildings into compliance with the 
 19.20  uniform fire code adopted according to chapter 299F; 
 19.21     (8) to remove asbestos from school buildings, encapsulate 
 19.22  asbestos, or make asbestos-related repairs; 
 19.23     (9) to clean up and dispose of polychlorinated biphenyls 
 19.24  found in school buildings; 
 19.25     (10) to clean up, remove, dispose of, and make repairs 
 19.26  related to storing heating fuel or transportation fuels such as 
 19.27  alcohol, gasoline, fuel oil, and special fuel, as defined in 
 19.28  section 296.01; 
 19.29     (11) for energy audits for school buildings and to modify 
 19.30  buildings if the audit indicates the cost of the modification 
 19.31  can be recovered within ten years; 
 19.32     (12) to improve buildings that are leased according to 
 19.33  section 123.36, subdivision 10; 
 19.34     (13) to pay special assessments levied against school 
 19.35  property but not to pay assessments for service charges; 
 19.36     (14) to pay principal and interest on state loans for 
 20.1   energy conservation according to section 216C.37 or loans made 
 20.2   under the Northeast Minnesota Economic Protection Trust Fund Act 
 20.3   according to sections 298.292 to 298.298; 
 20.4      (15) to purchase or lease interactive telecommunications 
 20.5   equipment; 
 20.6      (16) by school board resolution, to transfer money into the 
 20.7   debt redemption fund to pay the amounts needed to meet, when 
 20.8   due, principal and interest payments on certain obligations 
 20.9   issued according to chapter 475; 
 20.10     (17) to pay capital expenditure equipment-related 
 20.11  assessments of any entity formed under a cooperative agreement 
 20.12  between two or more districts; 
 20.13     (18) to purchase or lease computers and related materials, 
 20.14  copying machines, telecommunications equipment, and other 
 20.15  noninstructional equipment; 
 20.16     (19) to purchase or lease assistive technology or equipment 
 20.17  for instructional programs; 
 20.18     (20) to purchase textbooks; 
 20.19     (21) to purchase new and replacement library books; 
 20.20     (22) to purchase vehicles; 
 20.21     (23) to purchase or lease telecommunications equipment, 
 20.22  computers, and related equipment for integrated information 
 20.23  management systems for: 
 20.24     (i) managing and reporting learner outcome information for 
 20.25  all students under a results-oriented graduation rule; 
 20.26     (ii) managing student assessment, services, and achievement 
 20.27  information required for students with individual education 
 20.28  plans; and 
 20.29     (iii) other classroom information management needs; and 
 20.30     (24) to pay personnel costs directly related to the 
 20.31  acquisition, operation, and maintenance of telecommunications 
 20.32  systems, computers, related equipment, and network and 
 20.33  applications software.  
 20.34     Subd. 3.  [MAINTENANCE COST INDEX.] (a) A district's 
 20.35  maintenance cost index is equal to the ratio of: 
 20.36     (1) the total weighted square footage for all eligible 
 21.1   district-owned facilities; and 
 21.2      (2) the total unweighted square footage of these facilities.
 21.3      (b) The department shall determine a district's maintenance 
 21.4   cost index annually.  Eligible district-owned facilities shall 
 21.5   include only instructional or administrative square footage 
 21.6   owned by the district.  The commissioner of children, families, 
 21.7   and learning may adjust the age of a building or addition for 
 21.8   major renovation projects. 
 21.9      (c) The square footage weighting factor for each original 
 21.10  building or addition equals the lesser of: 
 21.11     (1) one plus the ratio of the age in years to 100; or 
 21.12     (2) 1.5. 
 21.13     (d) The weighted square footage for each original building 
 21.14  or addition equals the product of the unweighted square footage 
 21.15  times the square footage weighting factor. 
 21.16     Sec. 21.  Minnesota Statutes 1996, section 298.28, 
 21.17  subdivision 4, is amended to read: 
 21.18     Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
 21.19  ton plus the increase provided in paragraph (d) must be 
 21.20  allocated to qualifying school districts to be distributed, 
 21.21  based upon the certification of the commissioner of revenue, 
 21.22  under paragraphs (b) and (c). 
 21.23     (b) 5.5 cents per taxable ton must be distributed to the 
 21.24  school districts in which the lands from which taconite was 
 21.25  mined or quarried were located or within which the concentrate 
 21.26  was produced.  The distribution must be based on the 
 21.27  apportionment formula prescribed in subdivision 2. 
 21.28     (c)(i) 22 cents per taxable ton, less any amount 
 21.29  distributed under paragraph (e), shall be distributed to a group 
 21.30  of school districts comprised of those school districts in which 
 21.31  the taconite was mined or quarried or the concentrate produced 
 21.32  or in which there is a qualifying municipality as defined by 
 21.33  section 273.134 in direct proportion to school district indexes 
 21.34  as follows:  for each school district, its pupil units 
 21.35  determined under section 124.17 for the prior school year shall 
 21.36  be multiplied by the ratio of the average adjusted net tax 
 22.1   capacity per pupil unit for school districts receiving aid under 
 22.2   this clause as calculated pursuant to chapter 124A for the 
 22.3   school year ending prior to distribution to the adjusted net tax 
 22.4   capacity per pupil unit of the district.  Each district shall 
 22.5   receive that portion of the distribution which its index bears 
 22.6   to the sum of the indices for all school districts that receive 
 22.7   the distributions.  
 22.8      (ii) Notwithstanding clause (i), each school district that 
 22.9   receives a distribution under sections 298.018; 298.23 to 
 22.10  298.28, exclusive of any amount received under this clause; 
 22.11  298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
 22.12  imposing a tax on severed mineral values that is less than the 
 22.13  amount of its levy reduction under section 124.918, subdivision 
 22.14  8, for the second year prior to the year of the distribution 
 22.15  shall receive a distribution equal to the difference; the amount 
 22.16  necessary to make this payment shall be derived from 
 22.17  proportionate reductions in the initial distribution to other 
 22.18  school districts under clause (i).  
 22.19     (d) Any school district described in paragraph (c) where a 
 22.20  levy increase pursuant to section 124A.03, subdivision 2, is 
 22.21  authorized by referendum, shall receive a distribution according 
 22.22  to the following formula.  In 1994, the amount distributed per 
 22.23  ton shall be equal to the amount per ton distributed in 1991 
 22.24  under this paragraph increased in the same proportion as the 
 22.25  increase between the fourth quarter of 1989 and the fourth 
 22.26  quarter of 1992 in the implicit price deflator as defined in 
 22.27  section 298.24, subdivision 1.  On July 15, 1995, and subsequent 
 22.28  years, the increase over the amount established for the prior 
 22.29  year shall be determined according to the increase in the 
 22.30  implicit price deflator as provided in section 298.24, 
 22.31  subdivision 1.  Each district shall receive the product of: 
 22.32     (i) $175 times the pupil units identified in section 
 22.33  124.17, subdivision 1, enrolled in the second previous year or 
 22.34  the 1983-1984 school year, whichever is greater, less the 
 22.35  product of 1.8 percent times the district's taxable net tax 
 22.36  capacity in the second previous year; times 
 23.1      (ii) the lesser of: 
 23.2      (A) one, or 
 23.3      (B) the ratio of the sum of the amount certified pursuant 
 23.4   to section 124A.03, subdivision 1g, in the previous year, plus 
 23.5   the amount certified pursuant to section 124A.03, subdivision 
 23.6   1i, in the previous year, plus the referendum aid according to 
 23.7   section 124A.03, subdivision 1h, for the current year, plus an 
 23.8   amount equal to the reduction under section 124A.03, subdivision 
 23.9   3b, to the product of 1.8 percent times the district's taxable 
 23.10  net tax capacity in the second previous year. 
 23.11     If the total amount provided by paragraph (d) is 
 23.12  insufficient to make the payments herein required then the 
 23.13  entitlement of $175 per pupil unit shall be reduced uniformly so 
 23.14  as not to exceed the funds available.  Any amounts received by a 
 23.15  qualifying school district in any fiscal year pursuant to 
 23.16  paragraph (d) shall not be applied to reduce general education 
 23.17  aid which the district receives pursuant to section 124A.23 or 
 23.18  the permissible levies of the district.  Any amount remaining 
 23.19  after the payments provided in this paragraph shall be paid to 
 23.20  the commissioner of iron range resources and rehabilitation who 
 23.21  shall deposit the same in the taconite environmental protection 
 23.22  fund and the northeast Minnesota economic protection trust fund 
 23.23  as provided in subdivision 11. 
 23.24     Each district receiving money according to this paragraph 
 23.25  shall reserve $25 times the number of pupil units in the 
 23.26  district.  It may use the money for early childhood programs or 
 23.27  for outcome-based learning programs that enhance the academic 
 23.28  quality of the district's curriculum.  The outcome-based 
 23.29  learning programs must be approved by the commissioner of 
 23.30  children, families, and learning. 
 23.31     (e) There shall be distributed to any school district the 
 23.32  amount which the school district was entitled to receive under 
 23.33  section 298.32 in 1975. 
 23.34     Sec. 22.  [CAPITAL EXPENDITURE FUNDS; CREATION.] 
 23.35     Effective July 1, 1997, a capital expenditure fund is 
 23.36  created for each school district.  The June 30, 1997, balance of 
 24.1   the general fund reserved for operating capital account shall be 
 24.2   transferred to the capital expenditure fund.  The June 30, 1997, 
 24.3   balance of the reserved for health and safety account shall be 
 24.4   transferred to the capital expenditure fund reserved for health 
 24.5   and safety account.  The June 30, 1997, balance of the reserved 
 24.6   for disabled accessibility account shall be transferred to the 
 24.7   capital expenditure fund reserved for disabled accessibility 
 24.8   account. 
 24.9      Sec. 23.  [APPROPRIATIONS.] 
 24.10     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 24.11  LEARNING.] The sums indicated in this section are appropriated 
 24.12  from the general fund to the department of children, families, 
 24.13  and learning in the fiscal years designated. 
 24.14     Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
 24.15  according to Minnesota Statutes, section 124.225: 
 24.16       $ 75,728,000   .....     1998
 24.17       $232,794,000   .....     1999
 24.18     The 1998 appropriation includes $7,148,000 for fiscal year 
 24.19  1997 and $68,580,000 for fiscal year 1998.  The 1999 
 24.20  appropriation includes $7,619,000 for fiscal year 1998 and 
 24.21  $225,180,000 for fiscal year 1999. 
 24.22     Sec. 24.  [REPEALER.] 
 24.23     Subdivision 1.  [JULY 1, 1997.] Minnesota Statutes 1996, 
 24.24  sections 124A.03, subdivisions 3b and 3c; and 124A.22, 
 24.25  subdivisions 10, 11, 11a, and 12, are repealed July 1, 1997. 
 24.26     Subd. 2.  [FISCAL YEAR 1999.] Minnesota Statutes 1996, 
 24.27  sections 124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, 
 24.28  subdivisions 1, 3, 3a, and 10; 124A.22, subdivisions 13 and 13a, 
 24.29  are repealed effective for revenue for fiscal year 1999. 
 24.30     Sec. 25.  [EFFECTIVE DATE.] 
 24.31     Subdivision 1.  [DAY FOLLOWING FINAL ENACTMENT.] Section 4 
 24.32  is effective the day following final enactment. 
 24.33     Subd. 2.  [JULY 1, 1997.] Sections 1, 2, 3, 19, 20, and 22 
 24.34  are effective July 1, 1997. 
 24.35     Subd. 3.  [REVENUE FOR FISCAL YEAR 1999.] Sections 5, 6, 7, 
 24.36  8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 21 are effective 
 25.1   for fiscal year 1999 and later.