1.1                          A bill for an act 
  1.2             relating to education; establishing an annual 
  1.3             statewide achievement report; establishing average 
  1.4             student achievement standards; adjusting school 
  1.5             district net tax capacities; reducing school district 
  1.6             referendum allowances; providing for school district 
  1.7             discretionary revenue; establishing income-based 
  1.8             referendum authority; establishing market value 
  1.9             referendum levies; modifying provisions for training 
  1.10            and experience revenue; modifying learning and 
  1.11            development revenue use; modifying staff development 
  1.12            and parental involvement revenue; establishing a state 
  1.13            education tax base and levy; modifying core 
  1.14            instructional aid; defining support services; 
  1.15            modifying local revenue; establishing vocational and 
  1.16            applied learning programs; establishing an educational 
  1.17            performance improvement grant program; providing for a 
  1.18            school referendum income tax; providing for reductions 
  1.19            in certain aids to local governments; establishing a 
  1.20            youth employer grant program; requiring reports; 
  1.21            appropriating money; amending Minnesota Statutes 1994, 
  1.22            sections 121.11, subdivision 7c, and by adding a 
  1.23            subdivision; 124.2131, subdivision 1; 124A.02, 
  1.24            subdivision 3a; 124A.03, subdivisions 2, 3b, and by 
  1.25            adding subdivisions; 124A.032; 124A.04, subdivision 2; 
  1.26            124A.225, subdivision 4; 124A.29, subdivision 1; 
  1.27            124A.697; 124A.698; 124A.70, subdivisions 2 and 5; 
  1.28            124A.711, subdivisions 1 and 2; 124A.72; 275.08, 
  1.29            subdivision 1b; 290A.04, subdivision 2h; 473F.02, 
  1.30            subdivision 5; 477A.013, subdivision 1; and 477A.0132, 
  1.31            by adding a subdivision; proposing coding for new law 
  1.32            in Minnesota Statutes, chapters 124A; 124C; 126B; 290; 
  1.33            and 473F; repealing Minnesota Statutes 1994, sections 
  1.34            124A.70, subdivision 5; and 124A.71; Laws 1993, 
  1.35            chapter 224, article 15, section 3, as amended. 
  1.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.37     Section 1.  Minnesota Statutes 1994, section 121.11, is 
  1.38  amended by adding a subdivision to read: 
  1.39     Subd. 5a.  [STATEWIDE ACHIEVEMENT REPORT.] Annually, the 
  1.40  state board shall develop an accountability report.  The report 
  2.1   must include at least the following: 
  2.2      (1) data on average student achievement using indicators 
  2.3   from the profile of learning as adopted by rule; 
  2.4      (2) data on standardized achievement tests; 
  2.5      (3) data on general educational indicators such as dropout 
  2.6   rates, graduation rates, and other measures the board 
  2.7   determines; 
  2.8      (4) data on the financial status of school districts; 
  2.9      (5) measures indicating the results of educational reform 
  2.10  efforts; and 
  2.11     (6) data on ongoing social and economic barriers to 
  2.12  learning. 
  2.13     Sec. 2.  Minnesota Statutes 1994, section 121.11, 
  2.14  subdivision 7c, is amended to read: 
  2.15     Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
  2.16  legislature is committed to establishing a rigorous, 
  2.17  results-oriented graduation rule for Minnesota's public school 
  2.18  students.  To that end, the state board shall use its rulemaking 
  2.19  authority under subdivision 7b to adopt a statewide, 
  2.20  results-oriented graduation rule to be implemented starting with 
  2.21  students beginning ninth grade in the 1996-1997 school year.  
  2.22  The board shall not prescribe in rule or otherwise the delivery 
  2.23  system, form of instruction, or a single statewide form of 
  2.24  assessment that local sites must use to meet the requirements 
  2.25  contained in this rule. 
  2.26     (b) Assessments used to measure knowledge required by all 
  2.27  students for graduation must be developed according to the most 
  2.28  current version of professional standards for educational 
  2.29  testing. 
  2.30     (c) The content of the graduation rule must differentiate 
  2.31  between minimum competencies and rigorous standards. 
  2.32     (d) The state board shall periodically review and report on 
  2.33  the assessment process with the expectation of expanding high 
  2.34  school graduation requirements. 
  2.35     (e) The state board shall report to the legislature 
  2.36  annually by January 15 on its progress in developing and 
  3.1   implementing the graduation requirements until such time as all 
  3.2   the graduation requirements are implemented. 
  3.3      (f) In conjunction with the rule, the board must adopt 
  3.4   standards of average student achievement against which school 
  3.5   districts will be measured.  If a district fails to meet the 
  3.6   standard set by the board, it must develop a correction plan 
  3.7   that contains clear strategies for improving student performance.
  3.8      Sec. 3.  Minnesota Statutes 1994, section 124.2131, 
  3.9   subdivision 1, is amended to read: 
  3.10     Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a) 
  3.11  [COMPUTATION.] The department of revenue shall annually conduct 
  3.12  an assessment/sales ratio study of the taxable property in each 
  3.13  school district in accordance with the procedures in paragraphs 
  3.14  (b) and (c).  Based upon the results of this assessment/sales 
  3.15  ratio study, the department of revenue shall determine an 
  3.16  aggregate equalized net tax capacity for the various classes of 
  3.17  taxable property in each school district, which tax capacity 
  3.18  shall be designated as the adjusted net tax capacity.  Effective 
  3.19  for taxes payable in 1999 and later years, the department of 
  3.20  revenue shall exclude property included in the education tax 
  3.21  base under section 124A.40, subdivision 1, in determining a 
  3.22  school district's adjusted net tax capacity.  For taxes payable 
  3.23  in 1996, 1997, and 1998, the department of revenue shall exclude 
  3.24  from a school district's adjusted net tax capacity that portion 
  3.25  of the property included in the education tax base as adjusted 
  3.26  according to section 124A.40, subdivision 3.  The adjusted net 
  3.27  tax capacities shall be determined using the net tax capacity 
  3.28  percentages in effect for the assessment year following the 
  3.29  assessment year of the study.  The department of revenue shall 
  3.30  make whatever estimates are necessary to account for changes in 
  3.31  the classification system.  The department of revenue may incur 
  3.32  the expense necessary to make the determinations.  The 
  3.33  commissioner of revenue may reimburse any county or governmental 
  3.34  official for requested services performed in ascertaining the 
  3.35  adjusted net tax capacity.  On or before March 15 annually, the 
  3.36  department of revenue shall file with the chair of the tax 
  4.1   committee of the house of representatives and the chair of the 
  4.2   committee on taxes and tax laws of the senate a report of 
  4.3   adjusted net tax capacities.  On or before June 15 annually, the 
  4.4   department of revenue shall file its final report on the 
  4.5   adjusted net tax capacities established by the previous year's 
  4.6   assessments and the current year's net tax capacity percentages 
  4.7   with the commissioner of education and each county auditor for 
  4.8   those school districts for which the auditor has the 
  4.9   responsibility for determination of local tax rates.  A copy of 
  4.10  the report so filed shall be mailed to the clerk of each 
  4.11  district involved and to the county assessor or supervisor of 
  4.12  assessments of the county or counties in which each district is 
  4.13  located. 
  4.14     (b)  [METHODOLOGY.] In making its annual assessment/sales 
  4.15  ratio studies, the department of revenue shall use a methodology 
  4.16  consistent with the most recent Standard on Assessment Ratio 
  4.17  Studies published by the assessment standards committee of the 
  4.18  International Association of Assessing Officers.  The 
  4.19  commissioner of revenue shall supplement this general 
  4.20  methodology with specific procedures necessary for execution of 
  4.21  the study in accordance with other Minnesota laws impacting the 
  4.22  assessment/sales ratio study.  The commissioner shall document 
  4.23  these specific procedures in writing and shall publish the 
  4.24  procedures in the State Register, but these procedures will not 
  4.25  be considered "rules" pursuant to the Minnesota administrative 
  4.26  procedure act.  For purposes of this section, sections 270.12, 
  4.27  subdivision 2, clause (8), and 278.05, subdivision 4, the 
  4.28  commissioner of revenue shall exclude from the assessment/sales 
  4.29  ratio study the sale of any nonagricultural property which does 
  4.30  not contain an improvement, if (1) the statutory basis on which 
  4.31  the property's taxable value as most recently assessed is less 
  4.32  than market value as defined in section 273.11, or (2) the 
  4.33  property has undergone significant physical change or a change 
  4.34  of use since the most recent assessment.  
  4.35     (c)  [AGRICULTURAL LANDS.] For purposes of determining the 
  4.36  adjusted net tax capacity of agricultural lands for the 
  5.1   calculation of adjusted net tax capacities, the market value of 
  5.2   agricultural lands shall be the price for which the property 
  5.3   would sell in an arms length transaction. 
  5.4      (d)  [FORCED SALES.] The commissioner may include forced 
  5.5   sales in the assessment/sales ratio studies if it is determined 
  5.6   by the commissioner that these forced sales indicate true market 
  5.7   value. 
  5.8      (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
  5.9   market value to be used in calculating sales ratios shall be the 
  5.10  value established by the assessor before any stipulations 
  5.11  resulting from appeals by property owners and before any 
  5.12  abatement unless the abatement was granted for the purpose of 
  5.13  correcting mere clerical errors. 
  5.14     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
  5.15  shall be calculated for commercial property and for industrial 
  5.16  property.  These two classes shall be combined only in 
  5.17  jurisdictions in which there is not an adequate sample of sales 
  5.18  in each class. 
  5.19     Sec. 4.  Minnesota Statutes 1994, section 124A.02, 
  5.20  subdivision 3a, is amended to read: 
  5.21     Subd. 3a.  [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 
  5.22  capacity" means the net tax capacity of the taxable property of 
  5.23  the school district as adjusted by the commissioner of revenue 
  5.24  under section 124.2131.  For taxes payable in 1996 and later 
  5.25  years, a school district's adjusted net tax capacity shall 
  5.26  exclude the net tax capacity of property that is included in the 
  5.27  education tax base under section 124A.40, subdivision 3.  The 
  5.28  adjusted net tax capacity for any given calendar year shall be 
  5.29  used to compute levy limitations for levies certified in the 
  5.30  succeeding calendar year and aid for the school year beginning 
  5.31  in the second succeeding calendar year. 
  5.32     Sec. 5.  Minnesota Statutes 1994, section 124A.03, 
  5.33  subdivision 2, is amended to read: 
  5.34     Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
  5.35  by section 124A.22, subdivision 1, may be increased in the 
  5.36  amount approved by the voters of the district at a referendum 
  6.1   called for the purpose.  The referendum may be called by the 
  6.2   school board or shall be called by the school board upon written 
  6.3   petition of qualified voters of the district.  The referendum 
  6.4   shall be conducted during the calendar year before the increased 
  6.5   levy authority, if approved, first becomes payable.  The 
  6.6   petition or resolution shall state whether the revenue is to be 
  6.7   raised through an income tax or a tax on market value of 
  6.8   property.  Only one election to approve an increase may be held 
  6.9   in a calendar year.  Unless the referendum is conducted by mail 
  6.10  under paragraph (g), the referendum must be held on the first 
  6.11  Tuesday after the first Monday in November.  The ballot shall 
  6.12  state the maximum amount of the increased revenue per actual 
  6.13  pupil unit, the estimated referendum tax rate as a percentage of 
  6.14  market value or income in the first year it is to be levied 
  6.15  effective, and that the revenue shall be used to finance school 
  6.16  operations.  The ballot may state that existing referendum levy 
  6.17  authority is expiring.  In this case, the ballot may also 
  6.18  compare the proposed levy authority to the existing expiring 
  6.19  levy authority, and express the proposed increase as the amount, 
  6.20  if any, over the expiring referendum levy authority.  The ballot 
  6.21  shall designate the specific number of years, not to exceed ten, 
  6.22  for which the referendum authorization shall apply.  The ballot 
  6.23  may contain a textual portion with the information required in 
  6.24  this subdivision and a question stating substantially the 
  6.25  following:  
  6.26     "Shall the increase in the revenue proposed by (petition 
  6.27  to) the board of ........., School District No. .., be approved?"
  6.28     If approved, an amount equal to the approved revenue per 
  6.29  actual pupil unit times the actual pupil units for the school 
  6.30  year beginning in the year after the levy revenue is certified 
  6.31  shall be authorized for certification for the number of years 
  6.32  approved, if applicable, or until revoked or reduced by the 
  6.33  voters of the district at a subsequent referendum. 
  6.34     (b) The school board shall prepare and deliver by first 
  6.35  class mail at least 15 days but no more than 30 days prior to 
  6.36  the day of the referendum to each taxpayer a notice of the 
  7.1   referendum and the proposed revenue increase.  The school board 
  7.2   need not mail more than one notice to any taxpayer.  For the 
  7.3   purpose of giving mailed notice under this subdivision, owners 
  7.4   shall be those shown to be owners on the records of the county 
  7.5   auditor or, in any county where tax statements are mailed by the 
  7.6   county treasurer, on the records of the county treasurer.  Every 
  7.7   property owner whose name does not appear on the records of the 
  7.8   county auditor or the county treasurer shall be deemed to have 
  7.9   waived this mailed notice unless the owner has requested in 
  7.10  writing that the county auditor or county treasurer, as the case 
  7.11  may be, include the name on the records for this purpose.  The 
  7.12  notice must project the anticipated amount of tax increase in 
  7.13  annual dollars and annual percentage for typical residential 
  7.14  homesteads, agricultural homesteads, apartments, and 
  7.15  commercial-industrial property within the school district.  The 
  7.16  percentage shall be based on income or the market value of 
  7.17  property subject to the tax, whichever applies. 
  7.18     The notice for a referendum may state that an existing 
  7.19  referendum levy is expiring and project the anticipated amount 
  7.20  of increase over the existing referendum levy revenue, if any, 
  7.21  in annual dollars and annual percentage for typical residential 
  7.22  homesteads, agricultural homesteads, apartments, and 
  7.23  commercial-industrial property within the school district.  The 
  7.24  percentage shall be based on income or the market value of 
  7.25  property subject to the tax, whichever applies. 
  7.26     The notice must include the following statement:  "Passage 
  7.27  of this referendum will may result in an increase in your 
  7.28  property taxes." 
  7.29     (c) A referendum on the question of revoking or reducing 
  7.30  the increased revenue amount authorized pursuant to paragraph 
  7.31  (a) may be called by the school board and shall be called by the 
  7.32  school board upon the written petition of qualified voters of 
  7.33  the district.  A referendum to revoke or reduce the levy amount 
  7.34  must be based upon the dollar amount, local tax rate, or amount 
  7.35  per actual pupil unit, that was stated to be the basis for the 
  7.36  initial authorization.  Revenue approved by the voters of the 
  8.1   district pursuant to paragraph (a) must be received at least 
  8.2   once before it is subject to a referendum on its revocation or 
  8.3   reduction for subsequent years.  Only one revocation or 
  8.4   reduction referendum may be held to revoke or reduce referendum 
  8.5   revenue for any specific year and for years thereafter. 
  8.6      (d) A petition authorized by paragraph (a) or (c) shall be 
  8.7   effective if signed by a number of qualified voters in excess of 
  8.8   15 percent of the registered voters of the school district on 
  8.9   the day the petition is filed with the school board.  A 
  8.10  referendum invoked by petition shall be held on the date 
  8.11  specified in paragraph (a). 
  8.12     (e) The approval of 50 percent plus one of those voting on 
  8.13  the question is required to pass a referendum authorized by this 
  8.14  subdivision. 
  8.15     (f) At least 15 days prior to the day of the referendum, 
  8.16  the district shall submit a copy of the notice required under 
  8.17  paragraph (b) to the commissioner of education.  Within 15 days 
  8.18  after the results of the referendum have been certified by the 
  8.19  school board, or in the case of a recount, the certification of 
  8.20  the results of the recount by the canvassing board, the district 
  8.21  shall notify the commissioner of education of the results of the 
  8.22  referendum. 
  8.23     (g) Any referendum under this section held on a day other 
  8.24  than the first Tuesday after the first Monday in November must 
  8.25  be conducted by mail in accordance with section 204B.46.  
  8.26  Notwithstanding paragraph (b) to the contrary, in the case of a 
  8.27  referendum conducted by mail under this paragraph, the notice 
  8.28  required by paragraph (b) shall be prepared and delivered by 
  8.29  first class mail at least 20 days before the referendum. 
  8.30     Sec. 6.  Minnesota Statutes 1994, section 124A.03, 
  8.31  subdivision 3b, is amended to read: 
  8.32     Subd. 3b.  [REFERENDUM ALLOWANCE REDUCTION.] A district's 
  8.33  referendum allowance under subdivision 1c is reduced by the 
  8.34  amounts calculated in paragraphs (a), (b), (c), and (d), and (e).
  8.35     (a) The referendum allowance reduction equals the amount by 
  8.36  which a district's supplemental revenue reduction exceeds the 
  9.1   district's supplemental revenue allowance for fiscal year 1993. 
  9.2      (b) Notwithstanding paragraph (a), if a district's initial 
  9.3   referendum allowance is less than ten percent of the formula 
  9.4   allowance for that year, the reduction equals the lesser of (1) 
  9.5   an amount equal to $100, or (2) the amount calculated in 
  9.6   paragraph (a). 
  9.7      (c) Notwithstanding paragraph (a) or (b), a school 
  9.8   district's referendum allowance reduction equals (1) an amount 
  9.9   equal to $100, times (2) one minus the ratio of 20 percent of 
  9.10  the formula allowance minus the district's initial referendum 
  9.11  allowance limit to 20 percent of the formula allowance for that 
  9.12  year if: 
  9.13     (i) the district's adjusted net tax capacity for assessment 
  9.14  year 1992 per actual pupil unit for fiscal year 1995 is less 
  9.15  than $3,000; 
  9.16     (ii) the district's net unappropriated operating fund 
  9.17  balance as of June 30, 1993, divided by the actual pupil units 
  9.18  for fiscal year 1995 is less than $200; 
  9.19     (iii) the district's supplemental revenue allowance for 
  9.20  fiscal year 1993 is equal to zero; and 
  9.21     (iv) the district's initial referendum revenue authority 
  9.22  for the current year divided by the district's net tax capacity 
  9.23  for assessment year 1992 is greater than ten percent. 
  9.24     (d) Notwithstanding paragraph (a), (b), or (c), the 
  9.25  referendum revenue reduction for a newly reorganized district is 
  9.26  computed as follows: 
  9.27     (1) for a newly reorganized district created effective July 
  9.28  1, 1994, the referendum revenue reduction equals the lesser of 
  9.29  the amount calculated for the combined district under paragraph 
  9.30  (a), (b), or (c), or the sum of the amounts by which each of the 
  9.31  reorganizing district's supplemental revenue reduction exceeds 
  9.32  its respective supplemental revenue allowances calculated for 
  9.33  the districts as if they were still in existence for fiscal year 
  9.34  1995; or 
  9.35     (2) for a newly reorganized district created after July 1, 
  9.36  1994, the referendum revenue reduction equals the lesser of the 
 10.1   amount calculated for the combined district under paragraph (a), 
 10.2   (b), or (c), or the sum of the amounts by which each of the 
 10.3   reorganizing district's supplemental revenue reduction exceeds 
 10.4   its respective supplemental revenue allowances calculated for 
 10.5   the year preceding the year of reorganization. 
 10.6      (e) In addition to the reductions under paragraphs (a) to 
 10.7   (d), for a school referendum levy approved after November 1, 
 10.8   1995, for taxes payable in 1996 and later years, a district's 
 10.9   referendum allowance shall be reduced according to the following:
 10.10     (1) for taxes payable in 1996, an amount equal to the 
 10.11  district's referendum allowance under subdivision 1c times the 
 10.12  ratio of the net tax capacity of property included in the 
 10.13  education tax base under section 124A.40, to the total net tax 
 10.14  capacity of all taxable property in the district, times .25; 
 10.15     (2) for taxes payable in 1997, an amount equal to the 
 10.16  district's referendum allowance under subdivision 1c times the 
 10.17  ratio of the net tax capacity of property included in the 
 10.18  education tax base under section 124A.40, to the total net tax 
 10.19  capacity of all taxable property in the district, times .50; 
 10.20     (3) for taxes payable in 1998, an amount equal to the 
 10.21  district's referendum allowance under subdivision 1c times the 
 10.22  ratio of the net tax capacity of property included in the 
 10.23  education tax base under section 124A.40, to the total net tax 
 10.24  capacity of all taxable property in the district, times .75; and 
 10.25     (4) for taxes payable in 1999 and later years, an amount 
 10.26  equal to the district's referendum allowance under subdivision 
 10.27  1c times the ratio of the net tax capacity of property included 
 10.28  in the education tax base under section 124A.40, to the total 
 10.29  net tax capacity of all taxable property in the district. 
 10.30     Sec. 7.  Minnesota Statutes 1994, section 124A.03, is 
 10.31  amended by adding a subdivision to read: 
 10.32     Subd. 7.  [DISCRETIONARY REVENUE.] A school board may adopt 
 10.33  a resolution to increase the revenue of a district up to .25 
 10.34  times the core formula allowance times the number of pupil units 
 10.35  in the district.  The resolution must be adopted no later than 
 10.36  July 1 of the calendar year preceding the year for which the 
 11.1   revenue is attributable.  The resolution may only be at a 
 11.2   meeting held specifically for that purpose.  The board shall 
 11.3   notify the commissioner of education of the resolution within 
 11.4   ten days of passage.  The resolution must state whether the 
 11.5   revenue will be based on the market value of property or 
 11.6   income.  If the resolution is to base the revenue on income for 
 11.7   the first time, a referendum on the issue must be held according 
 11.8   to subdivision 2. 
 11.9      Sec. 8.  Minnesota Statutes 1994, section 124A.03, is 
 11.10  amended by adding a subdivision to read: 
 11.11     Subd. 8.  [INCOME-BASED REFERENDUM AUTHORITY.] A district's 
 11.12  income-based allowance equals the income-based referendum 
 11.13  authority for that year divided by its actual pupil units for 
 11.14  that school year.  A district's income-based revenue allowance 
 11.15  must not exceed 25 percent of the core formula allowance for the 
 11.16  fiscal year for which it is attributable. 
 11.17     Sec. 9.  Minnesota Statutes 1994, section 124A.03, is 
 11.18  amended by adding a subdivision to read: 
 11.19     Subd. 9.  [PROPERTY TAX RATE.] (a) The commissioner of 
 11.20  education shall annually determine the rate of the tax imposed 
 11.21  under this section as the percentage of market value of property 
 11.22  that is not included in the education tax base under section 
 11.23  124A.40 of the district.  The rate is equal to the sum of the 
 11.24  unpooled and pooled rates determined according to paragraphs (b) 
 11.25  and (c). 
 11.26     (b) ... percent of total market value based referendum 
 11.27  shall be imposed on the property in the district.  This rate is 
 11.28  designated the unpooled rate.  The tax rate is equal to the 
 11.29  property based referendum revenue as a percent of market value. 
 11.30     (c) The pooled market value based school referendum tax 
 11.31  rate is computed as follows: 
 11.32     (1) for each district described in subdivision 1, the 
 11.33  revenue contribution ratio equals the lesser of (i) the ratio of 
 11.34  market value in the district during the previous taxable year, 
 11.35  divided by the actual pupil units, to the equalizing factor, or 
 11.36  (ii) 10/7; 
 12.1      (2) the revenue equalizing factor equals the amount of 
 12.2   market value in all districts subject to this section during the 
 12.3   previous year, divided by actual pupil units for those 
 12.4   districts; or 
 12.5      (3) for each district described in subdivision 1, the tax 
 12.6   rate equals the ratio of (i) the product of the district's total 
 12.7   pooled revenue under this section, times the district's revenue 
 12.8   contribution ratio, to (ii) the market value in the district 
 12.9   during the previous taxable year. 
 12.10     Sec. 10.  Minnesota Statutes 1994, section 124A.03, is 
 12.11  amended by adding a subdivision to read: 
 12.12     Subd. 10.  [REVENUE DISTRIBUTION.] Revenue raised in 
 12.13  subdivision 9, paragraph (b), shall be placed in a special 
 12.14  account in the general fund.  The department shall withhold 
 12.15  state aid otherwise due to a district in an amount equal to its 
 12.16  net contribution to the pool.  The amount necessary to make 
 12.17  payments to school districts is annually appropriated from the 
 12.18  general fund to the commissioner of education and shall be paid 
 12.19  to school districts according to section 124.195.  If the amount 
 12.20  in the account is less than the amount needed to make the 
 12.21  payments, the commissioner shall adjust the revenue equalizing 
 12.22  factor in subdivision 9 the following year by an amount 
 12.23  necessary to raise the shortfall. 
 12.24     Sec. 11.  Minnesota Statutes 1994, section 124A.032, is 
 12.25  amended to read: 
 12.26     124A.032 [ANNUAL FOUNDATION OR GENERAL EDUCATION AID 
 12.27  APPROPRIATION.] 
 12.28     There is annually appropriated from the general fund to the 
 12.29  department of education the amount necessary for general 
 12.30  education aid and aid under this act.  This amount shall be 
 12.31  reduced by the amount of any money specifically appropriated for 
 12.32  the same purpose in any year from any state fund.  
 12.33     Sec. 12.  Minnesota Statutes 1994, section 124A.04, 
 12.34  subdivision 2, is amended to read: 
 12.35     Subd. 2.  [1993 AND LATER.] The training and experience 
 12.36  index must be constructed in the following manner:  
 13.1      (a) The department shall construct a matrix that classifies 
 13.2   teachers by the extent of training received in accredited 
 13.3   institutions of higher education that districts have determined 
 13.4   will lead to increased achievement by students and by the years 
 13.5   of experience that districts take into account in determining 
 13.6   teacher salaries.  The district must certify to the department 
 13.7   that the training has been aligned with the education outcomes 
 13.8   determined under section 126.70, subdivision 2a. 
 13.9      (b) The average salary for each cell of the matrix must be 
 13.10  computed as follows using data from the second year of the 
 13.11  previous biennium:  
 13.12     (1) For each school district, multiply the salary paid to 
 13.13  full-time equivalent teachers with that combination of training 
 13.14  and experience according to the district's teacher salary 
 13.15  schedule by the number of actual pupil units in that district.  
 13.16     (2) Add the amounts computed in clause (1) for all 
 13.17  districts in the state and divide the resulting sum by the total 
 13.18  number of actual pupil units in all districts in the state that 
 13.19  employ teachers.  
 13.20     (c) For each cell in the matrix, compute the ratio of the 
 13.21  average salary in that cell to the average salary for all 
 13.22  teachers in the state.  
 13.23     (d) The index for each district that employs teachers 
 13.24  equals the sum of the ratios for each teacher in that district 
 13.25  divided by the number of teachers in that district.  The index 
 13.26  for a district that employs no teachers is zero. 
 13.27     (e) Beginning with agreements effective July 1, 1997, and 
 13.28  thereafter, all collective bargaining negotiations for teachers 
 13.29  provided for under chapter 179A must give consideration to a 
 13.30  compensation system determined in part by the specific skills 
 13.31  and responsibilities needed to meet the requirements of section 
 13.32  121.11, subdivision 5a. 
 13.33     Sec. 13.  Minnesota Statutes 1994, section 124A.225, 
 13.34  subdivision 4, is amended to read: 
 13.35     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 13.36  to either paragraph (b), (c), or (d). 
 14.1      (b) Revenue shall be used to reduce and maintain the 
 14.2   district's instructor to learner ratios in kindergarten through 
 14.3   grade 6 to a level of 1 to 17 on average.  The district must 
 14.4   prioritize the use of the revenue to attain this level initially 
 14.5   in kindergarten and grade 1 and then through the subsequent 
 14.6   grades as revenue is available.  
 14.7      (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 14.8   district with exceptional need as defined in subdivision 6, 
 14.9   paragraph (a), may use the revenue to reduce and maintain the 
 14.10  district's instructor-to-learner ratios in kindergarten through 
 14.11  grade 6 to a level that is at least 2.0 less than the district's 
 14.12  adopted staffing ratio, if the remaining learning and 
 14.13  development revenue is used to continue or initiate staffing 
 14.14  patterns that meet the needs of a diverse student population.  
 14.15  Programs to meet the needs of a diverse student population may 
 14.16  include programs for at-risk pupils and learning enrichment 
 14.17  programs. 
 14.18     (d) For fiscal year 1995 only, in any school building that 
 14.19  meets the characteristics of exceptional need as defined in 
 14.20  subdivision 6, paragraph (b), a district may use the revenue to 
 14.21  employ education assistants or aides supervised by a learner's 
 14.22  regular instructor to assist learners in those school buildings. 
 14.23     (e) The revenue may be used to prepare and use an 
 14.24  individualized learning plan for each learner.  A district must 
 14.25  not increase the district wide instructor-learner ratios in 
 14.26  other grades as a result of reducing instructor-learner ratios 
 14.27  in kindergarten through grade 6.  Revenue may not be used to 
 14.28  provide instructor preparation time or to provide the district's 
 14.29  share of revenue required under section 124.311.  A school 
 14.30  district may use a portion of the revenue reserved under this 
 14.31  section to employ up to the same number of full-time equivalent 
 14.32  education assistants or aides as the district employed during 
 14.33  the 1992-1993 school year under Minnesota Statutes 1992, section 
 14.34  124.331, subdivision 2. 
 14.35     Sec. 14.  Minnesota Statutes 1994, section 124A.29, 
 14.36  subdivision 1, is amended to read: 
 15.1      Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
 15.2   REVENUE.] (a) Of a district's basic revenue under section 
 15.3   124A.22, subdivision 2, an amount equal to one percent in fiscal 
 15.4   year 1994, Beginning with agreements effective July 1, 1997, and 
 15.5   thereafter, all collective bargaining agreements for teachers 
 15.6   provided for under chapter 179A must include provisions for 
 15.7   staff development programs and resources.  If the parties cannot 
 15.8   agree on the amount of school district resources to be used for 
 15.9   staff development, an amount equal to two percent in fiscal year 
 15.10  1995, and 2.5 percent in fiscal year 1996 and thereafter times 
 15.11  the formula allowance times the number of actual pupil units 
 15.12  shall be reserved from general education revenue and may be used 
 15.13  only for in-service education for programs under section 126.77, 
 15.14  subdivision 2, or for staff development plans, including plans 
 15.15  for challenging instructional activities and experiences under 
 15.16  section 126.70.  Districts may expend an additional amount of 
 15.17  basic revenue for staff development based on their needs.  The 
 15.18  school board shall initially allocate 50 percent of the revenue 
 15.19  to each school site in the district on a per teacher basis, 
 15.20  which shall be retained by the school site until used.  The 
 15.21  board may retain 25 percent to be used for district wide staff 
 15.22  development efforts.  The remaining 25 percent of the revenue 
 15.23  shall be used to make grants to school sites that demonstrate 
 15.24  exemplary use of allocated staff development revenue.  A grant 
 15.25  may be used for any purpose authorized under section 126.70 or 
 15.26  126.77, subdivision 2, and determined by the site 
 15.27  decision-making team.  The site decision-making team must 
 15.28  demonstrate to the school board the extent to which staff at the 
 15.29  site have met the outcomes of the program.  The board may 
 15.30  withhold a portion of initial allocation of revenue if the staff 
 15.31  development outcomes are not being met. 
 15.32     (b) Of a district's basic revenue under section 124A.22, 
 15.33  subdivision 2, an amount equal to $5 times the number of actual 
 15.34  pupil units must be reserved and may be used only to provide 
 15.35  parental involvement programs that implement section 126.69.  
 15.36  Parental involvement programs may include career teacher 
 16.1   programs, programs promoting parental involvement in the PER 
 16.2   process, coordination of volunteer services, participation in 
 16.3   developing, implementing, or evaluating school 
 16.4   desegregation/integration plans, and programs designed to 
 16.5   encourage community involvement. 
 16.6      Sec. 15.  [124A.40] [STATE EDUCATION LEVY.] 
 16.7      Subdivision 1.  [TAX BASE.] The education tax base equals 
 16.8   the sum of the market values of taxable property in the 
 16.9   following property classes: 
 16.10     (1) class 3a and 3b commercial and industrial property, as 
 16.11  defined in section 273.13, subdivision 24; 
 16.12     (2) class 5 property, as defined in section 273.13, 
 16.13  subdivision 31; and 
 16.14     (3) class 2a and 2b, agricultural land and timber land, 
 16.15  excluding the house, garage, and immediately surrounding one 
 16.16  acre of land, as defined in section 273.13, subdivision 23. 
 16.17     Subd. 2.  [ANNUAL LEVY.] Each year, the commissioner of 
 16.18  revenue shall determine the total amount of the education tax 
 16.19  base of the state for that assessment year and the statewide 
 16.20  education tax rate.  The statewide education tax rate for fiscal 
 16.21  year 2000 and later fiscal years shall equal $....... divided by 
 16.22  the total education tax base for the state for that year.  The 
 16.23  statewide education tax rate shall be rounded up to the nearest 
 16.24  tenth of a percent.  By August 1 of each year, the commissioner 
 16.25  of revenue shall certify to each county auditor the amount of 
 16.26  the county's education tax base and the statewide education tax 
 16.27  rate.  The tax levied under this section shall be collected at 
 16.28  the same time and in the same manner as other property taxes 
 16.29  levied and shall be listed on a separate line on the statement 
 16.30  of proposed property taxes under section 275.065, and the 
 16.31  property tax statement under section 276.04.  The county 
 16.32  treasurer shall pay all receipts of the tax levied under this 
 16.33  section to the state treasurer according to section 276.11.  The 
 16.34  state treasurer shall deposit the proceeds of the tax in the 
 16.35  state's general fund. 
 16.36     Subd. 3.  [CONVERSION.] (a) The statewide education tax 
 17.1   rate shall be equal to the following: 
 17.2      (1) for fiscal year 1997, the statewide education tax rate 
 17.3   shall equal $....... divided by the total education tax base for 
 17.4   the state for that year; 
 17.5      (2) for fiscal year 1998, the statewide education tax rate 
 17.6   shall equal $....... divided by the total education tax base for 
 17.7   the state for that year; 
 17.8      (3) for fiscal year 1999, the statewide education tax rate 
 17.9   shall equal $....... divided by the total education tax base for 
 17.10  the state for that year; and 
 17.11     (4) for fiscal year 2000, and later fiscal years, the 
 17.12  statewide education tax rate shall equal $....... divided by the 
 17.13  total education tax base for the state for that year. 
 17.14     (b) Notwithstanding any other law to the contrary, on or 
 17.15  before June 15 of each year, the commissioner of revenue shall 
 17.16  adjust a school district's taxable market value prior to 
 17.17  certifying adjusted net tax capacities to the commissioner of 
 17.18  education for determining school district levy limitations for 
 17.19  levies authorized under chapters 124 and 124A, and market values 
 17.20  for levies certified according to section 124A.03, subdivision 
 17.21  2a.  A district's taxable market value shall be adjusted 
 17.22  according to the following: 
 17.23     (1) for assessment year 1995, 25 percent of the market 
 17.24  value of property included in the education tax base under 
 17.25  subdivision 1, shall be subtracted from the total market value 
 17.26  used for determining net tax capacities under section 273.13, 
 17.27  and taxable market values under section 124A.03, subdivision 2a, 
 17.28  for purposes of determining school district taxes; 
 17.29     (2) for assessment year 1996, 50 percent of the market 
 17.30  value of property included in the education tax base under 
 17.31  subdivision 1, shall be subtracted from the total market value 
 17.32  used for determining net tax capacities under section 273.13, 
 17.33  and taxable market values under section 124A.03, subdivision 2a, 
 17.34  for purposes of determining school district taxes; 
 17.35     (3) for assessment year 1997, 75 percent of the market 
 17.36  value of property included in the education tax base under 
 18.1   subdivision 1, shall be subtracted from the total market value 
 18.2   used for determining net tax capacities under section 273.13, 
 18.3   and taxable market values under section 124A.03, subdivision 2a, 
 18.4   for purposes of determining school district taxes; and 
 18.5      (4) for assessment year 1998 and later years, 100 percent 
 18.6   of the market value of property included in the education tax 
 18.7   base under subdivision 1, shall be subtracted from the total 
 18.8   market value used for determining net tax capacities under 
 18.9   section 273.13, and taxable market values under section 124A.03, 
 18.10  subdivision 2a, for purposes of determining school district 
 18.11  taxes. 
 18.12     Sec. 16.  Minnesota Statutes 1994, section 124A.697, is 
 18.13  amended to read: 
 18.14     124A.697 [TITLE.] 
 18.15     Sections 124A.697 to 124A.73 may be cited as the "Minnesota 
 18.16  education finance act of 1992 1995." 
 18.17     Sec. 17.  Minnesota Statutes 1994, section 124A.698, is 
 18.18  amended to read: 
 18.19     124A.698 [POLICY.] 
 18.20     Financing the education of our children is one of state 
 18.21  government's most important functions.  In performing this 
 18.22  function, the state seeks to provide sufficient funding while 
 18.23  encouraging equity, accountability, and incentives toward 
 18.24  quality improvement.  To help achieve these goals and to help 
 18.25  control future spending growth, the state will fund core 
 18.26  instruction and related support services, will facilitate 
 18.27  improvement in the quality and delivery of programs and 
 18.28  services, and will equalize revenues raised locally for 
 18.29  discretionary purposes. 
 18.30     Sec. 18.  Minnesota Statutes 1994, section 124A.70, 
 18.31  subdivision 2, is amended to read: 
 18.32     Subd. 2.  [AID AMOUNT.] Core instructional aid is equal 
 18.33  to the cost determined necessary by the legislature to achieve 
 18.34  the basic outcomes for each student the core instructional aid 
 18.35  allowance times the number of actual pupil units for the school 
 18.36  year plus support services aid for the district as determined 
 19.1   under section 124A.711.  The core instructional aid allowance 
 19.2   for fiscal year 1998 and thereafter is zero 1996 is $3,682; for 
 19.3   fiscal year 1997, $3,948; for fiscal year 1998, $4,084; and for 
 19.4   fiscal year 1999, and thereafter, $4,224. 
 19.5      Sec. 19.  Minnesota Statutes 1994, section 124A.70, 
 19.6   subdivision 5, is amended to read: 
 19.7      Subd. 5.  [AID USES.] Aid received under this section may 
 19.8   only be used to deliver instructional services needed to assure 
 19.9   that all pupils in the district achieve the basic outcomes 
 19.10  through the following programs and services: 
 19.11     (1) salaries and benefits for licensed and nonlicensed 
 19.12  instructional staff used to instruct or direct instructional 
 19.13  delivery or provide academic instructional support services; 
 19.14     (2) instructional supplies and resources including, but not 
 19.15  limited to, curricular materials, maps, individualized 
 19.16  instructional materials, test materials, and other related 
 19.17  supplies; 
 19.18     (3) payments to other service providers for direct 
 19.19  instruction or instructional materials; 
 19.20     (4) computers, interactive television, and other 
 19.21  technologically related equipment used in the direct delivery of 
 19.22  instruction; 
 19.23     (5) programs and services related to students' academic and 
 19.24  career progression including, but not limited to, community- and 
 19.25  work-based learning through mentoring, community service, and 
 19.26  youth apprenticeships; 
 19.27     (6) early childhood education programs designed to ensure 
 19.28  that students are ready to learn when they enter the education 
 19.29  system ongoing maintenance and repair of facilities used for 
 19.30  instructional purposes excluding the construction in part or 
 19.31  whole of new facilities; and 
 19.32     (7) activities related to measurement of student progress 
 19.33  toward basic outcomes. 
 19.34     Sec. 20.  Minnesota Statutes 1994, section 124A.711, 
 19.35  subdivision 1, is amended to read: 
 19.36     Subdivision 1.  [SUPPORT SERVICES.] "Support services" 
 20.1   means services and programs beyond the core instruction 
 20.2   considered essential to allow students to achieve the basic 
 20.3   outcomes including, but not limited to, the following: 
 20.4      (1) counselors, psychologists, and social workers; 
 20.5      (2) services and programs for students needing special 
 20.6   education and handicapped children aged zero to three; 
 20.7      (3) health care, including early childhood screening; 
 20.8      (4) transportation; 
 20.9      (5) nutrition programs; 
 20.10     (6) libraries and other media and information centers; 
 20.11     (7) programs for specialized curricula relating to programs 
 20.12  such as violence prevention, AIDS awareness and prevention, and 
 20.13  drug abuse prevention; and 
 20.14     (8) programs and services for students judged to be at high 
 20.15  risk of not completing their education or otherwise having a 
 20.16  social or economic problem in excess of other students under the 
 20.17  graduation rule.  
 20.18     Subd. 1a.  [USES OF AID; ACCOUNTS.] A school district shall 
 20.19  use support service aid according to this subdivision and shall 
 20.20  establish the following accounts for deposit of the aid: 
 20.21     (1) General services.  Aid in this account shall be used 
 20.22  for gifted and talented programs and other programs of a general 
 20.23  nature; 
 20.24     (2) Special services.  Aid in this account shall be used 
 20.25  for special education services, programs established for 
 20.26  American Indian children, and programs established for 
 20.27  desegregation.  The districts shall deposit all federal money 
 20.28  for these purposes in the account; 
 20.29     (3) Food service.  All expenditures for breakfast and lunch 
 20.30  programs and other related food service programs shall be made 
 20.31  from this account; 
 20.32     (4) Transportation.  All expenditures for transportation 
 20.33  services that the school board determines shall be offered shall 
 20.34  be made from this account; and 
 20.35     (5) Community service.  All expenditures for community 
 20.36  service programs, adult education programs, and all other 
 21.1   programs directed at children before they enter school and their 
 21.2   families shall be made from this account. 
 21.3      Support services aid may be allocated among the accounts by 
 21.4   the school board. 
 21.5      Sec. 21.  Minnesota Statutes 1994, section 124A.711, 
 21.6   subdivision 2, is amended to read: 
 21.7      Subd. 2.  [DETERMINATION OF AID.] The total amount of 
 21.8   support services aid shall be determined according to indices 
 21.9   for each service recommended by the commissioner of education 
 21.10  after consultations with the legislature, the coalition for 
 21.11  education reform and accountability, appropriate state agencies, 
 21.12  educators, and other interested persons.  The commissioner shall 
 21.13  recommend indices and aid amounts to the legislature by February 
 21.14  1 of each odd-numbered year.  The indices shall reflect the need 
 21.15  for each service based on the economic, geographic, demographic, 
 21.16  and other appropriate characteristics of each district. 
 21.17     Sec. 22.  [124A.712] [REVENUE USE RESTRICTIONS.] 
 21.18     No more than five percent of revenue received under 
 21.19  sections 124A.70 and 124A.711 may be used for school district 
 21.20  administration, administrative facility operations, insurance, 
 21.21  and other related administrative purposes.  Revenue under these 
 21.22  sections may not be used for extracurricular and cocurricula 
 21.23  activities. 
 21.24     Sec. 23.  Minnesota Statutes 1994, section 124A.72, is 
 21.25  amended to read: 
 21.26     124A.72 [LOCAL DISCRETIONARY REVENUE.] 
 21.27     Subdivision 1.  [LOCAL DISCRETIONARY REVENUE.] Local 
 21.28  discretionary revenue is available for districts to implement 
 21.29  programs to offer outcomes or to cover other district operating 
 21.30  expenditures not provided according to sections 124A.697 
 21.31  124A.711 and 124A.70. 
 21.32     Subd. 2.  [REVENUE.] (a) A district's local discretionary 
 21.33  revenue is equal to the amount authorized according to section 
 21.34  124A.03, subdivision 2, paragraph (b).  Revenue may not exceed 
 21.35  zero times the actual pupil units for the year the revenue is 
 21.36  attributable. 
 22.1      (b) A school board may increase local revenue by resolution 
 22.2   up to an amount equal to .25 times the number of pupil units in 
 22.3   the district times the allowance under section 124A.70, 
 22.4   subdivision 2.  The board may increase local revenue above this 
 22.5   amount but may only do so according to section 124A.03, 
 22.6   subdivision 2. 
 22.7      Subd. 3.  [LEVY.] Local discretionary levy is equal to 
 22.8   local discretionary revenue times the lesser of one or the ratio 
 22.9   of: 
 22.10     (1) net tax capacity divided by the number of pupil units 
 22.11  for the year the revenue is attributable, divided by 
 22.12     (2) the equalizing factor. 
 22.13     Subd. 4.  [AID.] Local discretionary aid is equal to local 
 22.14  discretionary revenue minus local discretionary levy.  If a 
 22.15  district levies less than the authorized amount, the aid shall 
 22.16  be reduced proportionately. 
 22.17     Sec. 24.  [124C.80] [EDUCATIONAL PERFORMANCE IMPROVEMENT 
 22.18  GRANT PROGRAM.] 
 22.19     Subdivision 1.  [ESTABLISHMENT.] An educational performance 
 22.20  improvement grant program is established to provide incentives 
 22.21  to school districts to improve student achievement and increase 
 22.22  accountability for results.  The state board of education may 
 22.23  enter into contracts with school districts to award the grants. 
 22.24     Subd. 2.  [ELIGIBILITY; APPLICATION.] A school district is 
 22.25  eligible to apply for an educational performance improvement 
 22.26  grant.  The application shall be on a form approved by the 
 22.27  commissioner of education.  The commissioner shall make 
 22.28  recommendations to the state board of education on which 
 22.29  districts should be considered for a grant contract.  The 
 22.30  commissioner shall give priority to school districts: 
 22.31     (1) in which at least one school has received a school 
 22.32  improvement incentive grant under section 121.602, subdivision 
 22.33  5; and 
 22.34     (2) that demonstrate a commitment to increasing 
 22.35  accountability by using a results-oriented system for measuring 
 22.36  student achievement. 
 23.1      Subd. 3.  [CONTRACT.] The state board of education may 
 23.2   enter into a one-year contract with a school district for the 
 23.3   purpose of awarding an educational performance improvement 
 23.4   grant.  The state board shall award a grant only for measurable 
 23.5   gains in student achievement.  The terms of the contract shall, 
 23.6   at a minimum, include: 
 23.7      (1) the criteria and assessments to be used in measuring 
 23.8   student achievement; 
 23.9      (2) the district's baseline level of student achievement; 
 23.10     (3) the level of student achievement to be reached under 
 23.11  the contract; 
 23.12     (4) a timeline for determining whether the contract goals 
 23.13  have been met; and 
 23.14     (5) at the discretion of the state board, provisions 
 23.15  governing the award of a partial grant to the district if the 
 23.16  contract goals are not fully met. 
 23.17     Subd. 4.  [EDUCATIONAL PERFORMANCE IMPROVEMENT 
 23.18  GRANTS.] $3,300,000 is appropriated annually from the general 
 23.19  fund to the commissioner of education for grants under this 
 23.20  section.  The state board of education shall enter into 
 23.21  contracts to award at least three grants, one each to an urban, 
 23.22  suburban, and rural school district. 
 23.23     Subd. 5.  [EXPIRATION.] This section is repealed effective 
 23.24  July 1, 1999. 
 23.25     Sec. 25.  [126B.10] [VOCATIONAL AND APPLIED LEARNING.] 
 23.26     Subdivision 1.  [ESTABLISHMENT.] Each school district shall 
 23.27  provide instruction designed to introduce the world of work and 
 23.28  to explore career opportunities for students in kindergarten 
 23.29  through grade 12.  A district shall provide students in grades 7 
 23.30  through 12 with comprehensive vocational and applied instruction 
 23.31  that is integrated with the district's academic curriculum and 
 23.32  includes post-secondary education, work-based, and service 
 23.33  learning experiences such as internships, apprenticeships, tech 
 23.34  prep, cooperatives, career academies, youth service, and youth 
 23.35  entrepreneur programs. 
 23.36     Subd. 2.  [SYSTEM STANDARDS.] A district's program for 
 24.1   providing vocational and applied instruction shall include: 
 24.2      (1) a system for providing students with current 
 24.3   information about a variety of career areas, the potential for 
 24.4   future employment, and the skills and knowledge necessary to 
 24.5   succeed in a work area; 
 24.6      (2) a system for providing students with current 
 24.7   information about vocational education opportunities in 
 24.8   post-secondary education institutions, in the workplace, home, 
 24.9   and the community; 
 24.10     (3) extensive opportunities to apply academic knowledge and 
 24.11  skills, including skills needed in the workplace, in multiple 
 24.12  settings including the school, school-based enterprises, the 
 24.13  workplace, home, and the community; 
 24.14     (4) integration of the district's core academic curriculum 
 24.15  and the elements of the profile of learning as adopted by rule, 
 24.16  with the vocational and applied learning opportunities 
 24.17  established by the district; 
 24.18     (5) counseling services at the elementary and secondary 
 24.19  levels for providing extensive guidance about vocational 
 24.20  education and work opportunities, and assistance in developing 
 24.21  individualized educational and school-to-work transition plans; 
 24.22     (6) applied instruction in the use of technology commonly 
 24.23  found in the workplace; 
 24.24     (7) applied instruction in the attitudes and skills 
 24.25  essential for success in the workplace, including cooperative 
 24.26  working, leadership, problem solving, and respect for diversity; 
 24.27     (8) staff development for vocational guidance counselors, 
 24.28  teachers, and other appropriate staff in the importance of 
 24.29  preparing students for the transition to work, and in methods of 
 24.30  providing instruction that incorporate applied learning, 
 24.31  work-based learning, and service learning experiences; 
 24.32     (9) extensive participation by local or regional private 
 24.33  and public employers, post-secondary education institutions, and 
 24.34  other community organizations; 
 24.35     (10) community workplace mentors that may include peers, 
 24.36  parents, employers and employed individuals from the community, 
 25.1   and employers of high school students; 
 25.2      (11) a plan for ensuring the inclusion of students with 
 25.3   disabilities in all elements of a district's vocational and 
 25.4   applied learning program; and 
 25.5      (12) a system for program assessment and accountability 
 25.6   that includes the follow-up studies under section 126B.102. 
 25.7      Sec. 26.  [126B.102] [FOLLOW-UP STUDIES.] 
 25.8      Subdivision 1.  [STUDENT SURVEY.] Each year, a school 
 25.9   district shall conduct a follow-up study of students graduating 
 25.10  from the district to assess the effectiveness of the district's 
 25.11  vocational and applied learning program.  The study shall 
 25.12  include a student survey of a representative sample of students 
 25.13  graduating from the district three years prior to the year of 
 25.14  the study.  The sample shall include, at a minimum, 50 percent 
 25.15  of the students graduating in that year.  The commissioner of 
 25.16  education may grant a district a variance from the minimum 
 25.17  sample size if the district can demonstrate that it made a good 
 25.18  faith effort to survey the required number of students.  The 
 25.19  survey shall be used to gather information concerning: 
 25.20     (1) the student's satisfaction with the adequacy and 
 25.21  relevancy of the program; 
 25.22     (2) the student's participation in post-secondary 
 25.23  education; 
 25.24     (3) the student's participation in other vocational 
 25.25  training or certification programs; 
 25.26     (4) the student's employment experience, including whether 
 25.27  the employment is related to the student's vocational 
 25.28  preparation; and 
 25.29     (5) for students who have developed school-to-work 
 25.30  transition plans, the extent to which students have met the 
 25.31  goals contained in the plan. 
 25.32     Subd. 2.  [EMPLOYER SURVEY.] Every fifth year, a school 
 25.33  district shall conduct a survey of community employers to 
 25.34  determine employers' satisfaction with the academic or 
 25.35  vocational preparation of current or former employees who are 
 25.36  graduates of the school district.  For purposes of this 
 26.1   subdivision, "employee" includes individuals who are paid 
 26.2   employees, apprentices, interns, participants in a cooperative 
 26.3   program, or participants in other similar work-based vocational 
 26.4   education programs at the job site. 
 26.5      Subd. 3.  [ANNUAL REPORT.] A school district shall annually 
 26.6   publish a report to the community on the findings of the survey 
 26.7   required under subdivision 1.  The report shall also include the 
 26.8   findings of the survey required under subdivision 2 in the years 
 26.9   that survey is conducted.  The report shall be published no 
 26.10  later than September 1 of the year following the year in which 
 26.11  the data was collected. 
 26.12     Sec. 27.  [126B.105] [LOCAL VOCATIONAL AND APPLIED LEARNING 
 26.13  PARTNERSHIPS.] 
 26.14     Subdivision 1.  [LOCAL PARTNERSHIPS.] (a) In order to 
 26.15  receive grants for youth apprenticeship programs under section 
 26.16  126B.05, a local or regional vocational and applied learning 
 26.17  partnership shall be established consisting of employers, labor 
 26.18  and professional organizations, at least one school district 
 26.19  with both an elementary and a secondary school, and a 
 26.20  post-secondary education institution.  Local partnerships are 
 26.21  encouraged to collaborate in planning, implementing, and funding 
 26.22  programs established under section 126B.10, with other public or 
 26.23  private community organizations. 
 26.24     (b) Members of a local vocational and applied learning 
 26.25  partnership may provide programming and instruction through an 
 26.26  interactive television network or other means of distance 
 26.27  learning. 
 26.28     Subd. 2.  [BOARD.] A local vocational and applied learning 
 26.29  partnership shall establish a governing board for planning and 
 26.30  implementing vocational and applied learning programs.  The 
 26.31  board shall consist of at least one representative from each 
 26.32  member organization.  The membership shall include at least one 
 26.33  teacher, one vocational guidance counselor, and one secondary 
 26.34  student.  A majority of the board must consist of 
 26.35  representatives of local or regional employers. 
 26.36     Subd. 3.  [DUTIES.] A local vocational and applied learning 
 27.1   partnership shall assess the needs of employers, employees, and 
 27.2   students in order to provide educational and skills training 
 27.3   programs to produce a workforce that meets local, state, and 
 27.4   national standards.  The specific duties of the local 
 27.5   partnership board shall include: 
 27.6      (1) evaluating the educational programs and curriculum of 
 27.7   elementary, secondary, and post-secondary schools for their 
 27.8   effectiveness in preparing students in the skills and knowledge 
 27.9   needed to be successful in the workplace; 
 27.10     (2) identifying barriers to providing effective integrated 
 27.11  vocational instruction and experiences; 
 27.12     (3) developing methods for integrating work-based and other 
 27.13  forms of applied learning into the curriculum and instructional 
 27.14  practices of local school districts and post-secondary 
 27.15  institutions; 
 27.16     (4) identifying and enlisting local and regional employers 
 27.17  who can effectively provide work-based or service learning 
 27.18  opportunities such as apprenticeships, internships, or 
 27.19  mentorships; 
 27.20     (5) identifying current and emerging educational, training, 
 27.21  and employment needs of the area or region, especially 
 27.22  concerning industries with potential for job growth; 
 27.23     (6) evaluating the effectiveness of local vocational and 
 27.24  job training programs, including vocational education, adult 
 27.25  basic education, tech prep, apprenticeship, service learning, 
 27.26  youth entrepreneur, youth training and employment programs 
 27.27  administered by the commissioner of economic security, and local 
 27.28  job training programs under the Job Training Partnership Act, 
 27.29  United States Code, title 29, section 1501, et seq., and making 
 27.30  recommendations for improving the coordination and efficiency of 
 27.31  these programs; 
 27.32     (7) identifying and applying for federal, state, local, and 
 27.33  private sources of funding for vocational and applied learning 
 27.34  programs; and 
 27.35     (8) assisting in planning and implementing the programs and 
 27.36  system standards included under section 126B.10. 
 28.1      Subd. 4.  [ALTERNATIVE GOVERNANCE.] A private industry 
 28.2   council, or another local or regional organization, including an 
 28.3   educational cooperative service unit or an education district, 
 28.4   may serve as the governing board and fiscal agent of a local 
 28.5   work-based and applied learning partnership.  An agreement 
 28.6   between the local or regional organization and the local 
 28.7   partners must ensure substantial input from members of the local 
 28.8   work-based and applied learning partnership and local or 
 28.9   regional employers.  The local or regional organization shall be 
 28.10  responsible for carrying out the duties of the governing board 
 28.11  under subdivision 3. 
 28.12     Sec. 28.  Minnesota Statutes 1994, section 275.08, 
 28.13  subdivision 1b, is amended to read: 
 28.14     Subd. 1b.  (a) The amounts certified under section 275.07 
 28.15  after adjustment under section 275.07, subdivision 3, by an 
 28.16  individual local government unit, except for any amounts 
 28.17  certified under sections 124A.03, subdivision 2a, and 275.61, 
 28.18  shall be divided by the total net tax capacity of all taxable 
 28.19  properties within the local government unit's taxing 
 28.20  jurisdiction.  The resulting ratio, the local government's local 
 28.21  tax rate, multiplied by each property's net tax capacity shall 
 28.22  be each property's tax for that local government unit before 
 28.23  reduction by any credits. 
 28.24     (b) For taxes payable in 1996 and thereafter, the county 
 28.25  auditor shall exclude the net tax capacity of all property that 
 28.26  is included in the education tax base under section 124A.40, 
 28.27  subdivision 3, from the total net tax capacity when fixing the 
 28.28  local school district tax rate and when spreading the local 
 28.29  school district levies. 
 28.30     (c) Any amount certified to the county auditor under 
 28.31  section 124A.03, subdivision 2a, or 275.61, after the dates 
 28.32  given in those sections, shall be divided by the total estimated 
 28.33  market value of all taxable properties within the taxing 
 28.34  district, except that, for taxes payable in 1996 and thereafter, 
 28.35  the county auditor shall exclude all property that is included 
 28.36  in the education tax base under section 124A.40, subdivision 3.  
 29.1   The resulting ratio, the taxing district's new referendum tax 
 29.2   rate, multiplied by each property's estimated market value shall 
 29.3   be each property's new referendum tax before reduction by any 
 29.4   credits. 
 29.5      Sec. 29.  [290.0621] [SCHOOL REFERENDUM TAX.] 
 29.6      Subdivision 1.  [IMPOSITION.] In addition to all other 
 29.7   taxes imposed by this chapter, a tax is imposed on individuals 
 29.8   who reside within the territory of a school district in which 
 29.9   the voters approved a tax increase at a referendum conducted 
 29.10  under section 124A.03 for that purpose.  This tax does not apply 
 29.11  to referendums on bond issues.  Individuals residing in the 
 29.12  district on the last day of the taxable year are subject to the 
 29.13  tax. 
 29.14     Subd. 2.  [RATE.] (a) The commissioner of revenue shall 
 29.15  annually determine the rate of the tax imposed under this 
 29.16  section as the percentage of taxable income of individuals 
 29.17  subject to the tax.  The rate is equal to the sum of the 
 29.18  unpooled and pooled rates determined according to paragraphs (b) 
 29.19  and (c). 
 29.20     (b) ... percent of total income-based referendum shall be 
 29.21  imposed on the individuals in the district.  This is designated 
 29.22  the unpooled rate.  The rate is equal to the income-based 
 29.23  referendum revenue as a percent of taxable income. 
 29.24     (c) The pooled school referendum tax rate is computed as 
 29.25  follows: 
 29.26     (1) for each district described in subdivision 1, the 
 29.27  revenue contribution ratio equals the lesser of (i) the ratio of 
 29.28  taxable income of individuals residing in the district during 
 29.29  the previous taxable year, divided by the actual pupil units, to 
 29.30  the equalizing factor, or (ii) 10/7; 
 29.31     (2) the equalizing factor equals the amount of taxable 
 29.32  income of individuals residing in all districts subject to this 
 29.33  section during the previous taxable year, divided by actual 
 29.34  pupil units for those districts; or 
 29.35     (3) for each district described in subdivision 1, the tax 
 29.36  rate equals the ratio of (i) the product of the district's 
 30.1   pooled income-based revenue, times the district's revenue 
 30.2   contribution ratio, to (ii) the taxable income of individuals 
 30.3   residing in the district during the previous taxable year. 
 30.4      Subd. 3.  [REVENUE DISTRIBUTION.] Revenue raised in 
 30.5   subdivision 1 shall be placed in a special account in the 
 30.6   general fund.  The amount necessary to make payments to school 
 30.7   districts under this section is annually appropriated from the 
 30.8   general fund to the commissioner of education and shall be paid 
 30.9   to school districts according to section 124.195.  If the amount 
 30.10  in the account is less than the amount needed to make the 
 30.11  payments, the commissioner shall adjust the equalizing factor in 
 30.12  subdivision 2 the next year by an amount necessary to raise the 
 30.13  shortfall. 
 30.14     Sec. 30.  Minnesota Statutes 1994, section 290A.04, 
 30.15  subdivision 2h, is amended to read: 
 30.16     Subd. 2h.  (a) If the gross property taxes payable on a 
 30.17  homestead increase more than 12 percent over exceed the net 
 30.18  property taxes payable in the prior year on the same property 
 30.19  that is owned and occupied by the same owner on January 2 of 
 30.20  both years, and the amount of that increase is $100 or more for 
 30.21  taxes payable in 1995 and 1996, a claimant who is a homeowner 
 30.22  shall be allowed an additional refund equal to the amount 
 30.23  determined under clause (1) or (2): 
 30.24     (1) if the claimant's household income is not more than 
 30.25  $......., the amount of the additional refund shall equal the 
 30.26  amount of the increase in the gross property taxes payable over 
 30.27  the prior year's net property taxes payable exceeding ... 
 30.28  percent; and 
 30.29     (2) if the claimant's household income is greater than 
 30.30  $......., and the amount of the increase is $100 or more for 
 30.31  taxes payable in 1995 and 1996, the amount of the additional 
 30.32  refund is equal to 60 percent of the amount of the increase over 
 30.33  the greater of 12 percent of the prior year's net property taxes 
 30.34  payable or $100 for taxes payable in 1995 and 1996.  The maximum 
 30.35  refund allowed under this clause is $1,000. 
 30.36  This subdivision shall not apply to any increase in the gross 
 31.1   property taxes payable attributable to improvements made to the 
 31.2   homestead after the assessment date for the prior year's taxes. 
 31.3      The maximum refund allowed under this subdivision is $1,000.
 31.4      (b) For purposes of this subdivision, the following terms 
 31.5   have the meanings given: 
 31.6      (1) "Net property taxes payable" means property taxes 
 31.7   payable minus refund amounts for which the claimant qualifies 
 31.8   pursuant to subdivision 2 and this subdivision.  
 31.9      (2) "Gross property taxes" means net property taxes payable 
 31.10  determined without regard to the refund allowed under this 
 31.11  subdivision. 
 31.12     (c) In addition to the other proofs required by this 
 31.13  chapter, each claimant under this subdivision shall file with 
 31.14  the property tax refund return a copy of the property tax 
 31.15  statement for taxes payable in the preceding year or other 
 31.16  documents required by the commissioner. 
 31.17     (d) On or before December 1, 1995, the commissioner shall 
 31.18  estimate the cost of making the payments provided by this 
 31.19  subdivision for taxes payable in 1996.  Notwithstanding the open 
 31.20  appropriation provision of section 290A.23, if the estimated 
 31.21  total refund claims for taxes payable in 1996 exceed $5,500,000, 
 31.22  the commissioner shall first reduce the 60 percent refund rate 
 31.23  enough, but to no lower a rate than 50 percent, so that the 
 31.24  estimated total refund claims do not exceed $5,500,000.  If the 
 31.25  commissioner estimates that total claims will exceed $5,500,000 
 31.26  at a 50 percent refund rate, the commissioner shall also reduce 
 31.27  the $1,000 maximum refund amount by enough so that total 
 31.28  estimated refund claims do not exceed $5,500,000. 
 31.29     The determinations of the revised thresholds by the 
 31.30  commissioner are not rules subject to chapter 14.  
 31.31     (e) Upon request, the appropriate county official shall 
 31.32  make available the names and addresses of the property taxpayers 
 31.33  who may be eligible for the additional property tax refund under 
 31.34  this section.  The information shall be provided on a magnetic 
 31.35  computer disk.  The county may recover its costs by charging the 
 31.36  person requesting the information the reasonable cost for 
 32.1   preparing the data.  The information may not be used for any 
 32.2   purpose other than for notifying the homeowner of potential 
 32.3   eligibility and assisting the homeowner, without charge, in 
 32.4   preparing a refund claim. 
 32.5      Sec. 31.  Minnesota Statutes 1994, section 473F.02, 
 32.6   subdivision 5, is amended to read: 
 32.7      Subd. 5.  [GOVERNMENTAL UNIT.] "Governmental unit" means a 
 32.8   county, city, town, school district, or other taxing unit or 
 32.9   body which levies ad valorem taxes in whole or in part within 
 32.10  the area.  For taxes payable in 1999 and later years, a school 
 32.11  district is not a governmental unit for the purposes of this 
 32.12  chapter. 
 32.13     Sec. 32.  [473F.14] [LOCAL TAX RATE ADJUSTMENT.] 
 32.14     For each of taxes payable in years 1996, 1997, and 1998, 
 32.15  the administrative auditor shall subtract from a local taxing 
 32.16  jurisdiction's local tax rate for the preceding year, as defined 
 32.17  in section 473F.02, subdivision 24, an amount equal to the 
 32.18  product of the local school district's tax rate for the 
 32.19  preceding year times .25. 
 32.20     Sec. 33.  Minnesota Statutes 1994, section 477A.013, 
 32.21  subdivision 1, is amended to read: 
 32.22     Subdivision 1.  [TOWNS.] In 1994 each town that had levied 
 32.23  for taxes payable in the prior year a local tax rate of at least 
 32.24  .008 shall receive a distribution equal to the amount it 
 32.25  received in 1993 under this section before any nonpermanent 
 32.26  reductions made under section 477A.0132.  In 1995 each town that 
 32.27  had levied for taxes payable in 1993 a local tax rate of at 
 32.28  least .008 shall receive a distribution equal to 102 percent of 
 32.29  the amount it received in 1994 under this section before any 
 32.30  increases or reductions under sections 16A.711, subdivision 5, 
 32.31  and 477A.0132.  In 1996 and subsequent years each town that had 
 32.32  levied for taxes payable in 1993 a local tax rate of at least 
 32.33  .008 shall receive a distribution equal to the amount it 
 32.34  received in the previous year under this section, adjusted for 
 32.35  inflation as provided under section 477A.03, subdivision 3, and 
 32.36  for any permanent reductions made under section 477A.0132, 
 33.1   subdivision 4. 
 33.2      Sec. 34.  Minnesota Statutes 1994, section 477A.0132, is 
 33.3   amended by adding a subdivision to read: 
 33.4      Subd. 4.  [PERMANENT REDUCTIONS.] (a) Beginning with taxes 
 33.5   payable in 1996, permanent reductions shall be made in aids paid 
 33.6   to local units of government.  Except for the reduction in local 
 33.7   government aid under sections 477A.012 and 477A.013, the 
 33.8   reduction in each aid shall be made first to that portion of the 
 33.9   aid paid to school districts.  If the reduction exceeds the 
 33.10  amount of aid paid to school districts, the remaining amount of 
 33.11  the reduction shall be made to the aid paid to counties, cities, 
 33.12  towns, and special taxing districts in the same proportion as 
 33.13  the amount of the aid paid to the local unit of government to 
 33.14  the total aid paid to all local units of government, excluding 
 33.15  school districts.  Permanent reductions in the amounts specified 
 33.16  shall be made in the following aids: 
 33.17     (1) local government aid under sections 477A.012 and 
 33.18  477A.013 ....... $.......; 
 33.19     (2) homestead and agricultural credit aid under section 
 33.20  273.1398, subdivision 2, ........ $.......; and 
 33.21     (3) disparity reduction aid under section 273.1398, 
 33.22  subdivision 3, ....... $........ 
 33.23     (b) An aid payment may not equal less than $0 following the 
 33.24  reductions under this subdivision. 
 33.25     (c) The permanent aid reductions to local governments under 
 33.26  this subdivision shall equal 25 percent of the amounts 
 33.27  determined in paragraphs (a) and (b) in taxes payable in 1996, 
 33.28  1997, 1998, and 1999. 
 33.29     Sec. 35.  [YOUTH EMPLOYER GRANT PROGRAM.] 
 33.30     Subdivision 1.  [YOUTH EMPLOYER GRANTS.] The education and 
 33.31  employment transitions council shall establish a pilot program 
 33.32  for improving the work-based learning experience of school-aged 
 33.33  youth who are employed.  An employer, in partnership with a 
 33.34  school district, a school, or a post-secondary education 
 33.35  institution that is a member of a local vocational and applied 
 33.36  learning partnership, may apply for a youth employer grant to 
 34.1   the education and employment transitions council.  The education 
 34.2   and employment transitions council shall determine application 
 34.3   procedures and criteria for approving grant awards.  To be 
 34.4   eligible, an employer must have employed at least 50 youth 
 34.5   during the preceding calendar year who were at least 16 years of 
 34.6   age and enrolled in high school. 
 34.7      Subd. 2.  [GRANT APPLICATION.] A grant application shall 
 34.8   include a plan describing how the applicant will: 
 34.9      (1) enhance the work experience of employed youth by 
 34.10  integrating appropriate academic and work skills components; 
 34.11     (2) develop an applied learning plan for each employed 
 34.12  youth that outlines the academic and work skills outcomes to be 
 34.13  achieved by the work-based learning experience and describes how 
 34.14  these outcomes apply toward attainment of high school graduation 
 34.15  requirements; 
 34.16     (3) provide training and support to the employer in 
 34.17  developing a work experience for meeting the goals of the 
 34.18  applied learning plan and for assessing student achievement; and 
 34.19     (4) evaluate the effectiveness of the work-based learning 
 34.20  program. 
 34.21     Subd. 3.  [GRANT AWARDS.] The education and employment 
 34.22  transitions council may award up to ... grants to applicants 
 34.23  eligible under subdivision 1.  Grant recipients should be 
 34.24  geographically distributed throughout the state.  Grant proceeds 
 34.25  may be used for the costs of planning, materials, and training.  
 34.26  The school district, school, or post-secondary education partner 
 34.27  shall be the fiscal agent for the grant. 
 34.28     Sec. 36.  [DEPARTMENT REPORTS.] 
 34.29     The department of education shall report to the education 
 34.30  committees of the legislature by March 1, 1996, about any needed 
 34.31  changes in district data reporting and fund structure and the 
 34.32  related costs of these changes required to implement this act. 
 34.33     Sec. 37.  [GENERAL TRANSITION.] 
 34.34     Revenue for school districts for fiscal years 1997 to 2000 
 34.35  shall be determined according to this section.  For fiscal year 
 34.36  1997, revenue is equal to .75 times the revenue determined under 
 35.1   Minnesota Statutes, chapters 124 and 124A plus .25 times the 
 35.2   revenue determined according to this act.  For fiscal year 1998, 
 35.3   revenue is equal to .50 times the revenue determined under 
 35.4   Minnesota Statutes, chapters 124 and 124A plus .50 times the 
 35.5   revenue determined according to this act.  For fiscal year 1999, 
 35.6   revenue is equal to .25 times the revenue determined under 
 35.7   Minnesota Statutes, chapters 124 and 124A plus .75 times the 
 35.8   revenue determined according to this act.  For fiscal year 2000 
 35.9   and thereafter, revenue is equal to the revenue determined 
 35.10  according to this act. 
 35.11     Sec. 38.  [APPROPRIATIONS.] 
 35.12     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 35.13  indicated in this section are appropriated from the general fund 
 35.14  to the commissioner of education in the fiscal year indicated. 
 35.15     Subd. 2.  [YOUTH EMPLOYER GRANTS.] For youth employer 
 35.16  grants according to section 34:  
 35.17        $.......      .....      1996 
 35.18     The commissioner shall make the grant awards according to 
 35.19  the recommendations of the education and employment transitions 
 35.20  council.  Any unexpended balance remaining in the first year 
 35.21  does not cancel but is available in the second year. 
 35.22     Subd. 3.  [COALITION FOR EDUCATION REFORM AND 
 35.23  ACCOUNTABILITY.] To continue the activities of the coalition for 
 35.24  education reform and accountability as established in Laws 1993, 
 35.25  chapter 224, article 1, section 35:  
 35.26        $.......      .....      1996 
 35.27     The coalition for education reform and accountability shall 
 35.28  evaluate and make recommendations in the following areas: 
 35.29     (1) transforming Minnesota's education system from a 
 35.30  kindergarten to grade 12 system to a system for life-long 
 35.31  learning; 
 35.32     (2) increasing the length of the school day and year; 
 35.33     (3) restructuring school staff compensation and employment 
 35.34  practices; 
 35.35     (4) implementing a performance-based accountability system 
 35.36  for school districts; and 
 36.1      (5) evaluating and reforming state education laws and rules.
 36.2      The coalition for education reform and accountability shall 
 36.3   make a preliminary report on its progress to the education 
 36.4   committees of the legislature by February 15, 1996.  The final 
 36.5   recommendations shall be reported to the education committees of 
 36.6   the legislature by February 15, 1997. 
 36.7      The appropriation is contingent upon the match of $1 in 
 36.8   nonstate funds for every $2 of the appropriation.  Any 
 36.9   unexpended balance remaining in the first year does not cancel 
 36.10  but is available in the second year. 
 36.11     Sec. 39.  [REPEALER.] 
 36.12     Minnesota Statutes 1994, section 124A.70, subdivision 5, is 
 36.13  repealed July 1, 2002. 
 36.14     Minnesota Statutes 1994, section 124A.71, is repealed. 
 36.15     Laws 1993, chapter 224, article 15, section 3, as amended 
 36.16  by Laws 1994, chapter 647, article 1, section 31, is repealed.