1.1                          A bill for an act
  1.2             relating to education; providing enhanced funding for 
  1.3             integration purposes; creating an exemption for 
  1.4             metropolitan magnet school programs; authorizing the 
  1.5             sale of bonds; appropriating money; amending Minnesota 
  1.6             Statutes 1996, section 124C.498, subdivisions 1 and 3; 
  1.7             Laws 1994, chapter 647, article 7, section 18, 
  1.8             subdivisions 2 and 3; proposing coding for new law in 
  1.9             Minnesota Statutes, chapter 124. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [124.316] [DESEGREGATION MAGNET SCHOOL 
  1.12  FUNDING.] 
  1.13     Subdivision 1.  [OPERATING AID.] Each year, a school 
  1.14  district is eligible for magnet school operating aid equal to 
  1.15  $1,000 times the number of resident pupils in average daily 
  1.16  membership attending a metropolitan magnet school. 
  1.17     Subd. 2.  [CAPITAL AID.] Each year, a school district is 
  1.18  eligible for magnet school capital aid equal to $180 times the 
  1.19  number of resident pupils attending a metropolitan magnet school.
  1.20     Subd. 3.  [REVENUE RESERVE.] All state aid earned under 
  1.21  this section must be transferred by the resident school district 
  1.22  to the fiscal agent operating the metropolitan magnet school. 
  1.23     Sec. 2.  [STATUTORY OPERATING DEBT; PARTICIPATING 
  1.24  DISTRICTS.] 
  1.25     A school district that had an operating deficit in the net 
  1.26  unappropriated balance in the general fund of the district, 
  1.27  determined as of June 30, 1996, is eligible for desegregation 
  2.1   magnet replacement aid equal to the basic formula allowance for 
  2.2   that year times the number of resident pupils in average daily 
  2.3   membership attending a metropolitan magnet school times: 
  2.4      (1) 1.0 in the first fiscal year a pupil from the district 
  2.5   is attending a metropolitan magnet school; 
  2.6      (2) .75 in the second fiscal year a pupil from the district 
  2.7   is attending a metropolitan magnet school; 
  2.8      (3) .50 in the third fiscal year a pupil from the district 
  2.9   is attending a metropolitan magnet school; and 
  2.10     (4) .25 in the fourth fiscal year a pupil from the district 
  2.11  is attending a metropolitan magnet school. 
  2.12     Sec. 3.  Minnesota Statutes 1996, section 124C.498, 
  2.13  subdivision 1, is amended to read: 
  2.14     Subdivision 1.  [POLICY AND PURPOSE.] (a) A metropolitan 
  2.15  magnet school grant program is established for the purpose of 
  2.16  promoting integrated education for students in prekindergarten 
  2.17  through grade 12, increase mutual understanding among all 
  2.18  students, and address the inability of local school districts to 
  2.19  provide required construction funds through local property 
  2.20  taxes.  The program seeks to encourage school districts located 
  2.21  in whole or in part within the seven-county metropolitan area to 
  2.22  make available to school age children residing in the 
  2.23  metropolitan area those educational programs, services, and 
  2.24  facilities that are essential to meeting all children's needs 
  2.25  and abilities.  The program anticipates using the credit of the 
  2.26  state, to a limited degree, to provide grants to metropolitan 
  2.27  area school districts to improve the educational opportunities 
  2.28  and academic achievement of disadvantaged children and the 
  2.29  facilities that are available to those children.  
  2.30     (b) Metropolitan magnet school programs established under 
  2.31  this section are exempt from the same statutes and rules 
  2.32  applicable to a school under section 120.064. 
  2.33     Sec. 4.  Minnesota Statutes 1996, section 124C.498, 
  2.34  subdivision 3, is amended to read: 
  2.35     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
  2.36  school districts that meets the criteria required under 
  3.1   paragraph (b)(i) may apply for a magnet school grant in an 
  3.2   amount not to exceed $10,000,000 $15,000,000 for the approved 
  3.3   costs of a magnet school facility. 
  3.4      (b)(i) Any group of districts that submits an application 
  3.5   for a grant shall submit a proposal to the commissioner for 
  3.6   review and comment under section 121.15, and the commissioner 
  3.7   shall prepare a review and comment on the proposed magnet school 
  3.8   facility, regardless of the amount of the capital expenditure 
  3.9   required to design, acquire, construct, remodel, improve, 
  3.10  furnish, or equip the facility.  The commissioner must not 
  3.11  approve an application for a magnet school grant for any 
  3.12  facility unless the facility receives a favorable review and 
  3.13  comment under section 121.15 and the participating districts: 
  3.14     (1) establish a joint powers board under section 471.59 to 
  3.15  represent all participating districts and govern the magnet 
  3.16  school facility; 
  3.17     (2) design the planned magnet school facility to meet the 
  3.18  applicable requirements contained in Minnesota Rules, chapter 
  3.19  3535; 
  3.20     (3) submit a statement of need, including reasons why the 
  3.21  magnet school will facilitate integration and improve learning; 
  3.22     (4) prepare an educational plan that includes input from 
  3.23  both community and professional staff; and 
  3.24     (5) develop an education program that will improve learning 
  3.25  opportunities for students attending the magnet school. 
  3.26     (ii) The districts may develop a plan that permits social 
  3.27  service, health, and other programs serving students and 
  3.28  community residents to be located within the magnet school 
  3.29  facility.  The commissioner shall consider this plan when 
  3.30  preparing a review and comment on the proposed facility.  
  3.31     (c) When two or more districts enter into an agreement 
  3.32  establishing a joint powers board to govern the magnet school 
  3.33  facility, all member districts shall have the same powers.  
  3.34     (d) A joint powers board of participating school districts 
  3.35  established under paragraphs (b) and (c) that intends to apply 
  3.36  for a grant shall adopt a resolution stating the costs of the 
  4.1   proposed project, the purpose for which the debt is to be 
  4.2   incurred, and an estimate of the dates when the contracts for 
  4.3   the proposed project will be completed.  A copy of the 
  4.4   resolution must accompany any application for a state grant 
  4.5   under this section. 
  4.6      (e)(i) The commissioner shall examine and consider all 
  4.7   grant applications.  If the commissioner finds that any joint 
  4.8   powers district is not a qualified grant applicant, the 
  4.9   commissioner shall promptly notify that joint powers board.  The 
  4.10  commissioner shall make awards to no more than two qualified 
  4.11  applicants whose applications have been on file with the 
  4.12  commissioner more than 30 days.  
  4.13     (ii) A grant award is subject to verification by the joint 
  4.14  powers board under paragraph (f).  A grant award must not be 
  4.15  made until the participating districts determine the site of the 
  4.16  magnet school facility.  If the total amount of the approved 
  4.17  applications exceeds the amount of grant funding that is or can 
  4.18  be made available, the commissioner shall allot the available 
  4.19  amount equally between the approved applicant districts.  The 
  4.20  commissioner shall promptly certify to each qualified joint 
  4.21  powers board the amount, if any, of the grant awarded to it. 
  4.22     (f) Each grant must be evidenced by a contract between the 
  4.23  joint powers board and the state acting through the 
  4.24  commissioner.  The contract obligates the state to pay to the 
  4.25  joint powers board an amount computed according to paragraph 
  4.26  (e)(ii) and a schedule, and terms and conditions acceptable to 
  4.27  the commissioner of finance. 
  4.28     Sec. 5.  Laws 1994, chapter 647, article 7, section 18, 
  4.29  subdivision 2, is amended to read: 
  4.30     Subd. 2.  [ELIGIBILITY; APPLICATION.] A school district or 
  4.31  a group of school districts that have entered into a joint 
  4.32  powers agreement under Minnesota Statutes, section 471.59, to 
  4.33  provide for a magnet school or magnet program is eligible to 
  4.34  apply for an educational performance improvement grant.  The 
  4.35  application shall be on a form approved by the commissioner of 
  4.36  education.  The commissioner shall make recommendations to the 
  5.1   state board of education on which districts should be considered 
  5.2   for a grant contract.  The commissioner shall give priority to 
  5.3   school districts: 
  5.4      (1) in which at least one school has received a school 
  5.5   improvement incentive grant under Minnesota Statutes 1993 
  5.6   Supplement, section 121.602, subdivision 5; and 
  5.7      (2) that demonstrate a commitment to increasing 
  5.8   accountability by using a results-oriented system for measuring 
  5.9   student achievement. 
  5.10     Sec. 6.  Laws 1994, chapter 647, article 7, section 18, 
  5.11  subdivision 3, is amended to read: 
  5.12     Subd. 3.  [CONTRACT.] The state board of education may 
  5.13  enter into a one-year contract with a school district or group 
  5.14  of school districts for the purpose of awarding an educational 
  5.15  performance improvement grant.  The state board shall award a 
  5.16  grant only for measurable gains in student achievement.  The 
  5.17  terms of the contract shall at minimum address: 
  5.18     (1) the criteria and assessments to be used in measuring 
  5.19  student achievement; 
  5.20     (2) the district's baseline level of student achievement 
  5.21  for the district or group of districts; 
  5.22     (3) the level of student achievement, desegregation or 
  5.23  diversity, or improved operations to be reached under the 
  5.24  contract; 
  5.25     (4) a timeline for determining whether the contract goals 
  5.26  have been met; and 
  5.27     (5) at the discretion of the state board, provisions 
  5.28  governing the award of a partial grant to the district or group 
  5.29  of districts if the contract goals are not fully met. 
  5.30     Sec. 7.  [METROPOLITAN MAGNET SCHOOLS.] 
  5.31     $30,000,000 is appropriated from the bond proceeds fund to 
  5.32  the commissioner of children, families, and learning in order to 
  5.33  make grants under Minnesota Statutes, section 124C.498. 
  5.34     Sec. 8.  [BOND PROCEEDS FUND.] 
  5.35     To provide the money appropriated in this act from the bond 
  5.36  proceeds fund, the commissioner of finance, on the request of 
  6.1   the governor, shall sell and issue bonds of the state in an 
  6.2   amount up to $30,000,000 in the manner, upon the terms, and with 
  6.3   the effect prescribed by Minnesota Statutes, sections 16A.631 to 
  6.4   16A.675, and by the Minnesota Constitution, article XI, sections 
  6.5   4 to 7. 
  6.6      Sec. 9.  [APPROPRIATIONS.] 
  6.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  6.8   LEARNING.] The sums indicated in this section are appropriated 
  6.9   from the general fund to the department of children, families, 
  6.10  and learning for the fiscal years designated. 
  6.11     Subd. 2.  [INTERDISTRICT DESEGREGATION TRANSPORTATION 
  6.12  GRANT.] For grants according to Laws 1995, First Special Session 
  6.13  chapter 3, article 2, section 50: 
  6.14       $  800,000     .....     1998 
  6.15       $1,400,000     .....     1999 
  6.16     Any balance remaining in the first year does not cancel but 
  6.17  is available in the second year. 
  6.18     Subd. 3.  [INTERDISTRICT DESEGREGATION MAGNET SCHOOL AID.] 
  6.19  For operating and capital aid according to section 1: 
  6.20       $  530,000     .....     1998 
  6.21       $1,870,000     .....     1999 
  6.22     Any balance remaining in the first year does not cancel but 
  6.23  is available in the second year. 
  6.24     Subd. 4.  [REPLACEMENT REVENUE.] For replacement revenue 
  6.25  according to section 2: 
  6.26       $205,000       .....     1999 
  6.27     Subd. 5.  [MAGNET SCHOOL GRANTS.] For magnet school and 
  6.28  program grants: 
  6.29       $3,000,000     .....     1998 
  6.30       $3,000,000     .....     1999 
  6.31     These amounts may be used for one-time start-up costs 
  6.32  incurred in planning, designing, and equipping a magnet school, 
  6.33  and for other costs directly attributable to magnet schools and 
  6.34  magnet programs. 
  6.35     Subd. 6.  [EDUCATION PERFORMANCE IMPROVEMENT GRANTS.] For 
  6.36  additional grants under Laws 1994, chapter 647, article 7, 
  7.1   section 18, as amended: 
  7.2        $1,600,000     .....     1998 
  7.3      Consistent with the provisions of Laws 1994, chapter 647, 
  7.4   article 7, section 18, as amended, a grant recipient that is a 
  7.5   group of school districts that have entered into a joint powers 
  7.6   agreement may use the grant proceeds to enhance student 
  7.7   achievement and metropolitan desegregation. 
  7.8      This appropriation is available until June 30, 1999. 
  7.9      Subd. 7.  [INTEGRATION PROGRAMS.] For the following grants: 
  7.10  minority fellowship grants under Laws 1994, chapter 647, article 
  7.11  8, section 29; minority teacher incentives under Minnesota 
  7.12  Statutes, section 124.278; teachers of color grants under 
  7.13  Minnesota Statutes, section 125.623; and cultural exchange 
  7.14  grants under Minnesota Statutes, section 126.43: 
  7.15       $2,000,000     .....     1998 
  7.16       $2,000,000     .....     1999 
  7.17     Any balance in the first year does not cancel but is 
  7.18  available in the second year. 
  7.19     In awarding teacher of color grants, priority must be given 
  7.20  to districts that have students who are currently in the process 
  7.21  of completing their academic program. 
  7.22     Sec. 10.  [REPEALER.] 
  7.23     Section 2 is repealed June 30, 2001, for revenue for fiscal 
  7.24  years 2002 and later.