1.1                          A bill for an act
  1.2             relating to education; increasing the basic formula 
  1.3             allowance; modifying compensatory revenue; extending 
  1.4             supplemental revenue; modifying nonpublic pupil 
  1.5             transportation aid; creating new funding for 
  1.6             unreimbursed costs associated with transporting 
  1.7             charter school pupils; increasing funding for limited 
  1.8             English proficiency programs; increasing special 
  1.9             education funding; modifying the lease levy; restoring 
  1.10            the training and experience formula; creating ongoing 
  1.11            technology revenue; authorizing local bonding; 
  1.12            extending school district contract authority; 
  1.13            qualifying certificates of participation for state 
  1.14            guarantee; appropriating money; amending Minnesota 
  1.15            Statutes 1996, sections 123.35, subdivision 19a; 
  1.16            124.225, by adding a subdivision; 124.323, by adding 
  1.17            subdivisions; 124.755, subdivision 1; 124A.22, by 
  1.18            adding a subdivision; 354A.31, subdivision 3a; 
  1.19            Minnesota Statutes 1997 Supplement, sections 124.17, 
  1.20            subdivision 1d; 124.225, subdivision 16; 124.315, 
  1.21            subdivision 3; 124.323, subdivision 2; 124.91, 
  1.22            subdivision 1; 124.912, subdivision 6; 124A.04, 
  1.23            subdivision 2; 124A.22, subdivisions 1, 2, 3a, and 
  1.24            13b; and 124A.28, subdivisions 1a and 1b; Laws 1995, 
  1.25            First Special Session chapter 3, article 1, section 
  1.26            56, as amended; Laws 1997, First Special Session 
  1.27            chapter 4, article 2, section 51, subdivision 14; 
  1.28            article 5, section 28, subdivisions 9 and 12; 
  1.29            repealing Minnesota Statutes 1996, section 124A.22, 
  1.30            subdivision 2a. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32     Section 1.  Minnesota Statutes 1996, section 123.35, 
  1.33  subdivision 19a, is amended to read: 
  1.34     Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
  1.35  SUPPORT.] (a) No school district shall be required by any type 
  1.36  of formal or informal agreement except an agreement to provide 
  1.37  building space according to paragraph (f), including a joint 
  1.38  powers agreement, or membership in any cooperative unit defined 
  2.1   in subdivision 19b, paragraph (d), to participate in or provide 
  2.2   financial support for the purposes of the agreement for a time 
  2.3   period in excess of ~~one~~ four fiscal ~~year~~ years, or the time 
  2.4   period set forth in this subdivision.  Any agreement, part of an 
  2.5   agreement, or other type of requirement to the contrary is void. 
  2.6      (b) This subdivision shall not affect the continued 
  2.7   liability of a school district for its share of bonded 
  2.8   indebtedness or other debt incurred as a result of any agreement 
  2.9   before July 1, 1993.  The school district is liable only until 
  2.10  the obligation or debt is discharged and only according to the 
  2.11  payment schedule in effect on July 1, 1993, except that the 
  2.12  payment schedule may be altered for the purpose of restructuring 
  2.13  debt or refunding bonds outstanding on July 1, 1993, if the 
  2.14  annual payments of the school district are not increased and if 
  2.15  the total obligation of the school district for its share of 
  2.16  outstanding bonds or other debt is not increased. 
  2.17     (c) To cease participating in or providing financial 
  2.18  support for any of the services or activities relating to the 
  2.19  agreement or to terminate participation in the agreement, the 
  2.20  school board shall adopt a resolution and notify other parties 
  2.21  to the agreement of its decision on or before February 1 of any 
  2.22  year.  The cessation or withdrawal shall be effective June 30 of 
  2.23  the same year except that for a member of an education district 
  2.24  organized under sections 122.91 to 122.95 or an intermediate 
  2.25  district organized under chapter 136D, cessation or withdrawal 
  2.26  shall be effective June 30 of the following fiscal year.  At the 
  2.27  option of the school board, cessation or withdrawal may be 
  2.28  effective June 30 of the following fiscal year for a district 
  2.29  participating in any type of agreement.  
  2.30     (d) Before issuing bonds or incurring other debt, the 
  2.31  governing body responsible for implementing the agreement shall 
  2.32  adopt a resolution proposing to issue bonds or incur other debt 
  2.33  and the proposed financial effect of the bonds or other debt 
  2.34  upon each participating district.  The resolution shall be 
  2.35  adopted within a time sufficient to allow the school board to 
  2.36  adopt a resolution within the time permitted by this paragraph 
  3.1   and to comply with the statutory deadlines set forth in sections 
  3.2   122.895, 125.12, and 125.17.  The governing body responsible for 
  3.3   implementing the agreement shall notify each participating 
  3.4   school board of the contents of the resolution.  Within 120 days 
  3.5   of receiving the resolution of the governing body, the school 
  3.6   board of the participating district shall adopt a resolution 
  3.7   stating: 
  3.8      (1) its concurrence with issuing bonds or incurring other 
  3.9   debt; 
  3.10     (2) its intention to cease participating in or providing 
  3.11  financial support for the service or activity related to the 
  3.12  bonds or other debt; or 
  3.13     (3) its intention to terminate participation in the 
  3.14  agreement. 
  3.15     A school board adopting a resolution according to clause 
  3.16  (1) is liable for its share of bonded indebtedness or other debt 
  3.17  as proposed by the governing body implementing the agreement.  A 
  3.18  school board adopting a resolution according to clause (2) is 
  3.19  not liable for the bonded indebtedness or other debt, as 
  3.20  proposed by the governing body, related to the services or 
  3.21  activities in which the district ceases participating or 
  3.22  providing financial support.  A school board adopting a 
  3.23  resolution according to clause (3) is not liable for the bonded 
  3.24  indebtedness or other debt proposed by the governing body 
  3.25  implementing the agreement. 
  3.26     (e) After July 1, 1993, a district is liable according to 
  3.27  paragraph (d) for its share of bonded indebtedness or other debt 
  3.28  incurred by the governing body implementing the agreement to the 
  3.29  extent that the bonds or other debt are directly related to the 
  3.30  services or activities in which the district participates or for 
  3.31  which the district provides financial support.  The district has 
  3.32  continued liability only until the obligation or debt is 
  3.33  discharged and only according to the payment schedule in effect 
  3.34  at the time the governing body implementing the agreement 
  3.35  provides notice to the school board, except that the payment 
  3.36  schedule may be altered for the purpose of refunding the 
  4.1   outstanding bonds or restructuring other debt if the annual 
  4.2   payments of the district are not increased and if the total 
  4.3   obligation of the district for the outstanding bonds or other 
  4.4   debt is not increased. 
  4.5      (f) A school district that is a member of a cooperative 
  4.6   unit as defined in subdivision 19b, paragraph (d), may obligate 
  4.7   itself to participate in and provide financial support for an 
  4.8   agreement with a cooperative unit to provide school building 
  4.9   space for a term not to exceed two years with an option on the 
  4.10  part of the district to renew for an additional two years. 
  4.11     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  4.12  124.17, subdivision 1d, is amended to read: 
  4.13     Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  4.14  revenue pupil units for fiscal year ~~1998~~ 1999 and thereafter 
  4.15  must be computed according to this subdivision.  
  4.16     (a) The compensation revenue concentration percentage for 
  4.17  each building in a district equals the product of 100 times the 
  4.18  ratio of:  
  4.19     (1) the sum of the number of pupils enrolled in the 
  4.20  building eligible to receive free lunch plus one-half of the 
  4.21  pupils eligible to receive reduced priced lunch on October 1 of 
  4.22  the previous fiscal year; to 
  4.23     (2) the number of pupils enrolled in the building on 
  4.24  October 1 of the previous fiscal year. 
  4.25     (b) The compensation revenue pupil weighting factor for a 
  4.26  building equals the lesser of one or the quotient obtained by 
  4.27  dividing the building's compensation revenue concentration 
  4.28  percentage by 80.0.  
  4.29     (c) The compensation revenue pupil units for a building 
  4.30  equals the product of:  
  4.31     (1) the sum of the number of pupils enrolled in the 
  4.32  building eligible to receive free lunch and one-half of the 
  4.33  pupils eligible to receive reduced priced lunch on October 1 of 
  4.34  the previous fiscal year; times 
  4.35     (2) the compensation revenue pupil weighting factor for the 
  4.36  building; times 
  5.1      (3) ~~.60~~ 1.0; times 
  5.2      (4) the pupil weighting factor of 1.0 for kindergarten and 
  5.3   elementary pupils and 1.3 for secondary pupils. 
  5.4      The percentages in this subdivision must be based on the 
  5.5   count of individual pupils and not on a building average or 
  5.6   minimum. 
  5.7      Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  5.8   124.225, subdivision 16, is amended to read: 
  5.9      Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
  5.10  district's nonpublic pupil transportation aid for the ~~1996-1997~~ 
  5.11  1998-1999 and later school years for transportation services for 
  5.12  nonpublic school pupils according to sections 123.39, 123.76 to 
  5.13  123.78, and this section, equals the sum of the amounts computed 
  5.14  in paragraphs (b) and (c).  This aid does not limit the 
  5.15  obligation to transport pupils under sections 123.76 to 123.79. 
  5.16     (b) For regular and excess transportation according to 
  5.17  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
  5.18  equal to the product of: 
  5.19     (1) the district's actual expenditure per nonpublic pupil 
  5.20  transported in the regular and excess transportation categories 
  5.21  during the second preceding school year; times 
  5.22     (2) the number of nonpublic school pupils residing in the 
  5.23  district who receive regular or excess transportation service or 
  5.24  reimbursement for the current school year; times 
  5.25     (3) the ratio of the formula allowance pursuant to section 
  5.26  124A.22, subdivision 2, for the current school year to the 
  5.27  formula allowance pursuant to section 124A.22, subdivision 2, 
  5.28  for the second preceding school year. 
  5.29     (c) For nonpublic nonregular transportation according to 
  5.30  subdivision 1, paragraph (b), clause (5), an amount equal to the 
  5.31  product of: 
  5.32     (1) the district's actual expenditure for nonpublic 
  5.33  nonregular transportation during the second preceding school 
  5.34  year; times 
  5.35     (2) the ratio of the formula allowance pursuant to section 
  5.36  124A.22, subdivision 2, for the current school year to the 
  6.1   formula allowance pursuant to section 124A.22, subdivision 2, 
  6.2   for the second preceding school year. 
  6.3      (d) Notwithstanding the amount of the formula allowance for 
  6.4   fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
  6.5   the commissioner shall use the amount of the formula allowance 
  6.6   for the current year less $300 in determining the nonpublic 
  6.7   pupil transportation revenue in paragraphs (b) and (c) for 
  6.8   fiscal years 1997 and 1998. 
  6.9      Sec. 4.  Minnesota Statutes 1996, section 124.225, is 
  6.10  amended by adding a subdivision to read: 
  6.11     Subd. 18.  [UNREIMBURSED CHARTER SCHOOL TRANSPORTATION 
  6.12  AID.] A school district that provides transportation services to 
  6.13  charter school pupils is eligible for charter school pupil 
  6.14  transportation aid equal to the greater of zero or the 
  6.15  district's actual expenditures per charter school pupil 
  6.16  transported less $170 times the number of charter school pupils 
  6.17  transported. 
  6.18     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  6.19  124.315, subdivision 3, is amended to read: 
  6.20     Subd. 3.  [INTEGRATION REVENUE.] (a) For fiscal year 1999 
  6.21  ~~and later fiscal years~~, integration revenue equals the following 
  6.22  amounts: 
  6.23     (1) for independent school district No. 709, Duluth, $193 
  6.24  times the actual pupil units for the school year; 
  6.25     (2) for independent school district No. 625, St. Paul, $427 
  6.26  times the actual pupil units for the school year; 
  6.27     (3) for special school district No. 1, Minneapolis, $523 
  6.28  times the actual pupil units for the school year; and 
  6.29     (4) for a district not listed in clause (1), (2), or (3) 
  6.30  that is required to implement a plan according to the 
  6.31  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
  6.32  the lesser of the actual cost of implementing the plan during 
  6.33  the fiscal year or $93 times the actual pupil units for the 
  6.34  school year.  
  6.35     (b) For fiscal years 2000 and later, the amounts in 
  6.36  paragraph (a) are increased by the increase from the second 
  7.1   preceding year to the preceding year in the Consumer Price Index 
  7.2   for urban consumers, as prepared by the United States Bureau of 
  7.3   Labor Statistics. 
  7.4      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  7.5   124.323, subdivision 2, is amended to read: 
  7.6      Subd. 2.  [EXCESS COST REVENUE.] ~~For 1997 and later fiscal~~ 
  7.7   ~~years,~~ A district's special education excess cost revenue equals 
  7.8   the greatest of: 
  7.9      (a) 70 percent of the difference between (1) the district's 
  7.10  unreimbursed special education cost and (2) ~~5.7~~ 5.0 percent for 
  7.11  fiscal year 1997 and later years of the district's general 
  7.12  revenue; 
  7.13     (b) 70 percent of the difference between (1) the increase 
  7.14  in the district's unreimbursed special education cost between 
  7.15  the base year as defined in section 124.3201, subdivision 1, and 
  7.16  the current year and (2) 1.6 percent of the district's general 
  7.17  revenue; or 
  7.18     (c) zero.  
  7.19     The percentages in paragraphs (a) and (b) are increased by 
  7.20  ten percentage points for fiscal years 1999, 2000, and 2001. 
  7.21     Sec. 7.  Minnesota Statutes 1996, section 124.323, is 
  7.22  amended by adding a subdivision to read: 
  7.23     Subd. 4.  [TUITION.] Notwithstanding section 120.17, for 
  7.24  nonresident children receiving services under section 124.3201, 
  7.25  subdivisions 1 and 2 that are placed in the serving school 
  7.26  district by court action, the serving school district shall 
  7.27  submit unreimbursed tuition bills for eligible services to the 
  7.28  department of children, families, and learning instead of the 
  7.29  resident school district. 
  7.30     Sec. 8.  Minnesota Statutes 1996, section 124.323, is 
  7.31  amended by adding a subdivision to read: 
  7.32     Subd. 5.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
  7.33  purposes of reimbursing serving school districts under 
  7.34  subdivision 4, $5,000,000 is annually appropriated from the 
  7.35  general fund to the commissioner of children, families, and 
  7.36  learning for unreimbursed eligible expenditures attributable to 
  8.1   children who have been placed in the serving school district by 
  8.2   court action. 
  8.3      Sec. 9.  Minnesota Statutes 1996, section 124.755, 
  8.4   subdivision 1, is amended to read: 
  8.5      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  8.6   section, the term "debt obligation" means ~~either~~: (1) a tax or 
  8.7   aid anticipation certificate of indebtedness; (2) a certificate 
  8.8   of participation issued under section 124.91, subdivision 7; or 
  8.9   (3) a general obligation bond.  
  8.10     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  8.11  124.91, subdivision 1, is amended to read: 
  8.12     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
  8.13  district finds it economically advantageous to rent or lease a 
  8.14  building or land for administrative purposes, any instructional 
  8.15  purposes or for school storage or furniture repair, and it 
  8.16  determines that the operating capital revenue authorized under 
  8.17  section 124A.22, subdivision 10, is insufficient for this 
  8.18  purpose, it may apply to the commissioner for permission to make 
  8.19  an additional capital expenditure levy for this purpose.  An 
  8.20  application for permission to levy under this subdivision must 
  8.21  contain financial justification for the proposed levy, the terms 
  8.22  and conditions of the proposed lease, and a description of the 
  8.23  space to be leased and its proposed use.  
  8.24     (b) The criteria for approval of applications to levy under 
  8.25  this subdivision must include:  the reasonableness of the price, 
  8.26  the appropriateness of the space to the proposed activity, the 
  8.27  feasibility of transporting pupils to the leased building or 
  8.28  land, conformity of the lease to the laws and rules of the state 
  8.29  of Minnesota, and the appropriateness of the proposed lease to 
  8.30  the space needs and the financial condition of the district.  
  8.31  The commissioner must not authorize a levy under this 
  8.32  subdivision in an amount greater than the cost to the district 
  8.33  of renting or leasing a building or land for approved purposes.  
  8.34  The proceeds of this levy must not be used for custodial or 
  8.35  other maintenance services.  A district may not levy under this 
  8.36  subdivision for the purpose of leasing or renting a 
  9.1   district-owned building to itself. 
  9.2      (c) For agreements finalized after July 1, 1997, a district 
  9.3   may not levy under this subdivision for the purpose of leasing:  
  9.4   (1) a newly constructed building used primarily for regular 
  9.5   kindergarten, elementary, or secondary instruction; or (2) a 
  9.6   newly constructed building addition or additions used primarily 
  9.7   for regular kindergarten, elementary, or secondary instruction 
  9.8   that contains more than 20 percent of the square footage of the 
  9.9   previously existing building. 
  9.10     (d) The total levy under this subdivision for a district 
  9.11  for any year must not exceed $100 times the actual pupil units 
  9.12  for the fiscal year to which the levy is attributable. 
  9.13     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
  9.14  124.912, subdivision 6, is amended to read: 
  9.15     Subd. 6.  [CRIME-RELATED COSTS.] ~~For taxes levied in 1991~~ 
  9.16  ~~and subsequent years, payable in 1992 and subsequent years,~~ (a) 
  9.17  Each year, a school district may make a levy on all taxable 
  9.18  property located within the school district for the purposes 
  9.19  specified in this subdivision.  The maximum amount which may be 
  9.20  levied for all costs under this subdivision shall be equal 
  9.21  to ~~$1.50~~ $3 multiplied by the population of the school 
  9.22  district.  For purposes of this subdivision, "population" of the 
  9.23  school district means the same as contained in section 275.14.  
  9.24     (b) At least half of the proceeds of the levy must be used 
  9.25  for reimbursing the cities and counties who contract with the 
  9.26  school district for the following purposes:  (1) to pay the 
  9.27  costs incurred for the salaries, benefits, and transportation 
  9.28  costs of peace officers and sheriffs for liaison services in the 
  9.29  district's middle and secondary schools; (2) to pay the costs 
  9.30  for a drug abuse prevention program as defined in Minnesota 
  9.31  Statutes 1991 Supplement, section 609.101, subdivision 3, 
  9.32  paragraph (f), in the elementary schools; or (3) to pay the 
  9.33  costs for a gang resistance education training curriculum in the 
  9.34  middle schools.  The school district must initially attempt to 
  9.35  contract for these services with the police department of each 
  9.36  city or the sheriff's department of the county within the school 
 10.1   district containing the school receiving the services.  If a 
 10.2   local police department or a county sheriff's department does 
 10.3   not wish to provide the necessary services, the district may 
 10.4   contract for these services with any other police or sheriff's 
 10.5   department located entirely or partially within the school 
 10.6   district's boundaries.  
 10.7      (c) Up to one-half of the proceeds of the levy may be used 
 10.8   for school security measures including, but not limited to, 
 10.9   security fences, security doors, student identification systems, 
 10.10  and surveillance equipment. 
 10.11     (d) The levy authorized under this subdivision is not 
 10.12  included in determining the school district's levy limitations. 
 10.13     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 10.14  124A.04, subdivision 2, is amended to read: 
 10.15     Subd. 2.  [1999 AND LATER.] The training and experience 
 10.16  index for fiscal year 1999 and later must be constructed in the 
 10.17  following manner:  
 10.18     (a) The department shall construct a matrix that classifies 
 10.19  teachers by the extent of training received in accredited 
 10.20  institutions of higher education and by the years of experience 
 10.21  that districts take into account in determining teacher salaries.
 10.22     (b) The average salary for each cell of the matrix must be 
 10.23  computed as follows using data from the current fiscal year ~~1997~~:
 10.24     (1) For each school district, multiply the salary paid to 
 10.25  full-time equivalent teachers with that combination of training 
 10.26  and experience according to the district's teacher salary 
 10.27  schedule by the number of actual pupil units in that district.  
 10.28     (2) Add the amounts computed in clause (1) for all 
 10.29  districts in the state and divide the resulting sum by the total 
 10.30  number of actual pupil units in all districts in the state that 
 10.31  employ teachers.  
 10.32     (c) For each cell in the matrix, compute the ratio of the 
 10.33  average salary in that cell to the average salary for all 
 10.34  teachers in the state during the current fiscal year ~~1997~~.  
 10.35     (d) The index for each district that employs teachers 
 10.36  equals the sum of~~:  (i) for teachers employed in that district~~ 
 11.1   ~~during fiscal year 1997 and the current fiscal year,~~ the ratios 
 11.2   for each teacher computed using data for the current fiscal year 
 11.3   ~~1997; and (ii) for teachers employed in that district during the~~ 
 11.4   ~~current fiscal year but not during fiscal year 1997, the ratio~~ 
 11.5   ~~for teachers who are in their first year of teaching and who~~ 
 11.6   ~~have no additional credits or degrees above a bachelor's degree~~ 
 11.7   divided by the number of teachers in that district.  The index 
 11.8   for a district that employs no teachers is zero. 
 11.9      Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 11.10  124A.22, subdivision 1, is amended to read: 
 11.11     Subdivision 1.  [GENERAL EDUCATION REVENUE.] ~~(a) For fiscal~~ 
 11.12  ~~years 1997 and 1998, the general education revenue for each~~ 
 11.13  ~~district equals the sum of the district's basic revenue,~~ 
 11.14  ~~compensatory education revenue, secondary sparsity revenue,~~ 
 11.15  ~~elementary sparsity revenue, transportation sparsity revenue,~~ 
 11.16  ~~total operating capital revenue, transition revenue, and~~ 
 11.17  ~~supplemental revenue.~~ 
 11.18     ~~(b)~~ For fiscal year 1999 and thereafter, the general 
 11.19  education revenue for each district equals the sum of the 
 11.20  district's basic revenue, basic skills revenue, training and 
 11.21  experience revenue, secondary sparsity revenue, elementary 
 11.22  sparsity revenue, transportation sparsity revenue, total 
 11.23  operating capital revenue, technology revenue, transition 
 11.24  revenue, and supplemental revenue. 
 11.25     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 11.26  124A.22, subdivision 2, is amended to read: 
 11.27     Subd. 2.  [BASIC REVENUE.] (a) The basic revenue for each 
 11.28  district equals the formula allowance times the actual pupil 
 11.29  units for the school year.  The formula allowance for fiscal 
 11.30  year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 11.31  is $3,581 ~~and~~, the formula allowance for fiscal year 1999 ~~and~~ 
 11.32  ~~subsequent fiscal years~~ is $3,530, and the formula allowance for 
 11.33  fiscal year 2000 and subsequent fiscal years is equal to the 
 11.34  formula allowance for the previous year times the ratio of the 
 11.35  Consumer Price Index for urban consumers, as prepared by the 
 11.36  United States Bureau of Labor Statistics, for the second 
 12.1   preceding year to the preceding year.  
 12.2      (b) The formula allowance under paragraph (a) is increased 
 12.3   by $60 beginning in fiscal year 1999 to fund the three 
 12.4   additional instructional days required under section 120.1015. 
 12.5      Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 12.6   124A.22, subdivision 3a, is amended to read: 
 12.7      Subd. 3a.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 12.8   thereafter, a school district's basic skills revenue equals the 
 12.9   sum of: 
 12.10     (1) compensatory revenue under subdivision 3; plus 
 12.11     (2) limited English proficiency revenue according to 
 12.12  section 124.273, subdivision 1g; plus 
 12.13     (3) ~~$190~~ $380 times the limited English proficiency pupil 
 12.14  units according to section 124.17, subdivision 7; plus 
 12.15     (4) the lesser of:  (i) $22.50 times the number of fund 
 12.16  balance pupil units in kindergarten to grade 8; or (ii) the 
 12.17  amount of district money provided to match basic skills revenue 
 12.18  for the purposes described in section 124A.28. 
 12.19     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 12.20  124A.22, subdivision 13b, is amended to read: 
 12.21     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 12.22  transportation transition allowance for fiscal year ~~1998~~ 1999 
 12.23  and later equals the result of the following: 
 12.24     (1) if the result in subdivision 13a, paragraph (a), clause 
 12.25  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 12.26  base allowance, the transportation transition allowance equals 
 12.27  the fiscal year 1996 base allowance minus the result in 
 12.28  subdivision 13a, paragraph (a), clause (iii); or 
 12.29     (2) if the result in subdivision 13a, paragraph (a), clause 
 12.30  (iii), for fiscal year 1998 and later is greater than or equal 
 12.31  to the fiscal year 1996 base allowance, the transportation 
 12.32  transition allowance equals zero. 
 12.33     (b) ~~For fiscal years 1997 and 1998, a district's training~~ 
 12.34  ~~and experience transition allowance is equal to the training and~~ 
 12.35  ~~experience revenue the district would have received under~~ 
 12.36  ~~Minnesota Statutes 1994, section 124A.22, subdivision 4, divided~~ 
 13.1   ~~by the actual pupil units for fiscal year 1997 minus $130.  For~~ 
 13.2   ~~fiscal year 1999 and later, a district's training and experience~~ 
 13.3   ~~transition allowance equals zero.~~  
 13.4      ~~If the training and experience transition allowance is less~~ 
 13.5   ~~than zero, the reduction shall be determined according to the~~ 
 13.6   ~~following schedule:~~ 
 13.7      ~~(1) for fiscal year 1997, the reduction is equal to .9~~ 
 13.8   ~~times the amount initially determined;~~ 
 13.9      ~~(2) for fiscal year 1998, the reduction is equal to .75~~ 
 13.10  ~~times the amount initially determined; and~~ 
 13.11     ~~(c) A district's~~ For a district with average test scores 
 13.12  for 1997 on both the Minnesota basic standards tests in reading 
 13.13  and mathematics in excess of the state average test scores for 
 13.14  1997, its transition compensatory allowance equals the greater 
 13.15  of zero or the difference between:  
 13.16     (1) the amount of compensatory revenue the district would 
 13.17  have received under subdivision 3 for fiscal year 1998 computed 
 13.18  using a basic formula allowance of $3,281; and 
 13.19     (2) the amount the district receives under subdivision 3; 
 13.20  divided by 
 13.21     (3) the district's actual pupil units for fiscal year 1998. 
 13.22     (c) For a district with average test scores for 1997 on the 
 13.23  Minnesota basic standards tests in reading or mathematics below 
 13.24  the state average test scores for 1997, its transition 
 13.25  compensatory allowance equals the greater of zero or the 
 13.26  difference between: 
 13.27     (1) the amount of compensatory revenue the district would 
 13.28  have received under subdivision 3 for fiscal year 1998 computed 
 13.29  using a basic formula allowance of $3,281 plus $50; and 
 13.30     (2) the amount the district receives under subdivision 3; 
 13.31  divided by 
 13.32     (3) the district's actual pupil units for fiscal year 1998. 
 13.33     (d) ~~A district's transition allowance for fiscal year 1998~~ 
 13.34  ~~is equal to the sum of its transportation transition allowance,~~ 
 13.35  ~~its training and experience transition allowance, and its~~ 
 13.36  ~~transition compensatory allowance.~~  A district's transition 
 14.1   allowance for fiscal year 1999 and thereafter is equal to the 
 14.2   sum of its transportation transition allowance and its 
 14.3   transition compensatory allowance. 
 14.4      Sec. 17.  Minnesota Statutes 1996, section 124A.22, is 
 14.5   amended by adding a subdivision to read: 
 14.6      Subd. 14.  [TECHNOLOGY REVENUE.] Technology revenue for 
 14.7   each school district equals $24 per pupil unit.  Technology 
 14.8   revenue must be used according to subdivision 11, clauses (15), 
 14.9   (18), (19), (23), and (24). 
 14.10     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 14.11  124A.28, subdivision 1a, is amended to read: 
 14.12     Subd. 1a.  [BUILDING ALLOCATION.] (a) A district must 
 14.13  allocate at least 75 percent of its compensatory revenue to each 
 14.14  school building in the district where the children who have 
 14.15  generated the revenue are served. 
 14.16     (b) A district may use up to 25 percent of its compensatory 
 14.17  revenue for districtwide, site-based compensatory education 
 14.18  programs if the school board notifies each school site 
 14.19  decision-making team of its intent prior to adopting a written 
 14.20  resolution to use the revenue for districtwide, site-based 
 14.21  compensatory education programs. 
 14.22     (c) If the pupil is served at a site other than one owned 
 14.23  and operated by the district, the revenue shall be paid to the 
 14.24  district and used for services for pupils who generate the 
 14.25  revenue. 
 14.26     Sec. 19.  Minnesota Statutes 1997 Supplement, section 
 14.27  124A.28, subdivision 1b, is amended to read: 
 14.28     Subd. 1b.  [RECOMMENDATION.] A school site decision-making 
 14.29  team, as defined in section 123.951, subdivision 3, paragraph 
 14.30  (a), or the instruction and curriculum advisory committee under 
 14.31  section 123.972, if the school has no school site decision team, 
 14.32  shall recommend how the revenue will be used to carry out the 
 14.33  purpose of this section.  A school site decision-making team 
 14.34  shall establish an accountability plan for the uses of the 
 14.35  compensatory revenue and submit that plan to the district. 
 14.36     Sec. 20.  Minnesota Statutes 1996, section 354A.31, 
 15.1   subdivision 3a, is amended to read: 
 15.2      Subd. 3a.  [NO ANNUITY REDUCTION.] (a) The annuity 
 15.3   reduction provisions of subdivision 3 do not apply to a person 
 15.4   who: 
 15.5      (1) retires from the technical college system or from the 
 15.6   Minneapolis, St. Paul, or Duluth school district with at least 
 15.7   ten years of service credit in the system from which the person 
 15.8   retires; 
 15.9      (2) was employed on a full-time basis immediately preceding 
 15.10  retirement as a technical college faculty member for a retiree 
 15.11  from the technical college system or as a teacher for a retiree 
 15.12  from the Minneapolis, St. Paul, or Duluth school district; 
 15.13     (3) begins drawing an annuity from a first class city 
 15.14  teachers retirement association; and 
 15.15     (4) returns to work on not less than a one-third time basis 
 15.16  and not more than a two-thirds time basis in the technical 
 15.17  college system or school district from which the person retired 
 15.18  under an agreement in which the person may not earn a salary of 
 15.19  more than $35,000 in a calendar year from the ~~technical college~~ 
 15.20  ~~system~~ employer. 
 15.21     (b) Initial participation, the amount of time worked, and 
 15.22  the duration of participation under this section must be 
 15.23  mutually agreed upon by the employer and the employee.  The 
 15.24  employer may require up to a one-year notice of intent to 
 15.25  participate in the program as a condition of participation under 
 15.26  this section.  The employer shall determine the time of year the 
 15.27  employee shall work. 
 15.28     (c) Notwithstanding any law to the contrary, a person 
 15.29  eligible under paragraphs (a) and (b) may not earn further 
 15.30  service credit in a first class city teachers retirement 
 15.31  association and is not eligible to participate in the individual 
 15.32  retirement account plan or the supplemental retirement plan 
 15.33  established in chapter 354B as a result of service under this 
 15.34  section.  No employer or employee contribution to any of these 
 15.35  plans may be made on behalf of such a person. 
 15.36     Sec. 21.  Laws 1995, First Special Session chapter 3, 
 16.1   article 1, section 56, as amended by Laws 1997, First Special 
 16.2   Session chapter 4, article 1, section 53, is amended to read: 
 16.3      Sec. 56.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 16.4      ~~For fiscal years 1998 and 1999,~~ If a district's ratio of 
 16.5   1992 adjusted net tax capacity divided by 1994-1995 actual pupil 
 16.6   units to $9,025 is less than or equal to .25, then the 
 16.7   difference under Minnesota Statutes, section 124A.22, 
 16.8   subdivision 9, clause (2), is equal to $0 for purposes of 
 16.9   computing the district's supplemental revenue under Minnesota 
 16.10  Statutes, section 124A.22, subdivision 8.  For purposes of 
 16.11  computing the referendum allowance reduction under Minnesota 
 16.12  Statutes, section 124A.03, subdivision 3b, the supplemental 
 16.13  revenue reduction shall be computed according to Minnesota 
 16.14  Statutes, section 124A.22, subdivision 9. 
 16.15     Sec. 22.  Laws 1997, First Special Session chapter 4, 
 16.16  article 2, section 51, subdivision 14, is amended to read: 
 16.17     Subd. 14.  [INTEGRATION PROGRAMS.] For grants according to: 
 16.18  minority fellowship grants according to Laws 1994, chapter 647, 
 16.19  article 8, section 29; minority teacher incentives according to 
 16.20  Minnesota Statutes, section 124.278; teachers of color grants 
 16.21  according to Minnesota Statutes, section 125.623; and cultural 
 16.22  exchange grants according to Minnesota Statutes, section 126.43: 
 16.23       $1,000,000     .....     1998
 16.24       ~~$1,000,000~~ $1,500,000    .....     1999
 16.25     Any balance in the first year does not cancel but is 
 16.26  available in the second year. 
 16.27     In awarding teacher of color grants, priority must be given 
 16.28  to districts that have students who are currently in the process 
 16.29  of completing their academic program. 
 16.30     Sec. 23.  Laws 1997, First Special Session chapter 4, 
 16.31  article 5, section 28, subdivision 9, is amended to read: 
 16.32     Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
 16.33  grants to collaborative urban educator programs that prepare and 
 16.34  license people of color to teach: 
 16.35       $895,000     .....     1998
 16.36       $895,000     .....     1999 
 17.1      This appropriation is available until June 30, 1999. 
 17.2      Sec. 24.  Laws 1997, First Special Session chapter 4, 
 17.3   article 5, section 28, subdivision 12, is amended to read: 
 17.4      Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
 17.5   AID.] For graduation rule implementation: 
 17.6        $10,000,000     .....     1998
 17.7        $30,000,000     .....     1999 
 17.8      (a) This appropriation shall be paid to districts according 
 17.9   to paragraph (b).  The purpose of the aid is to accelerate the 
 17.10  implementation of the graduation rule throughout all education 
 17.11  sites in the district through intensive staff development and 
 17.12  decentralized decision making.  The board shall work with the 
 17.13  teaching staff in the district to determine the most effective 
 17.14  staff development processes to assure an acceleration of the 
 17.15  implementation.  This appropriation is ~~one-time~~ for fiscal years 
 17.16  1998 and 1999 only. 
 17.17     (b) A district shall receive aid equal to $10 times the 
 17.18  number of pupil units ~~in~~ served by the district for fiscal year 
 17.19  1998 and $30 times the number of pupil units served in fiscal 
 17.20  year 1999.  At least 30 percent must be used for the purposes of 
 17.21  paragraph (a). 
 17.22     Sec. 25.  [BONDING AUTHORIZATION.] 
 17.23     To provide funds for the acquisition or betterment of 
 17.24  school facilities, independent school district No. 625, St. 
 17.25  Paul, may by two-thirds majority vote of all the members of the 
 17.26  board of directors issue general obligation bonds in one or more 
 17.27  series in calendar years 1998 to 2002, both inclusive, as 
 17.28  provided in this section.  The aggregate principal amount of any 
 17.29  bonds issued under this section for each calendar year must not 
 17.30  exceed $15,000,000.  Issuance of the bonds is not subject to 
 17.31  Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
 17.32  otherwise be issued as provided in Minnesota Statutes, chapter 
 17.33  475.  The authority to issue bonds under this section is in 
 17.34  addition to any bonding authority authorized by Minnesota 
 17.35  Statutes, chapter 124, or other law.  The amount of bonding 
 17.36  authority authorized under this section must be disregarded in 
 18.1   calculating the bonding limit of Minnesota Statutes, chapter 
 18.2   124, or any other law other than Minnesota Statutes, section 
 18.3   475.53, subdivision 4. 
 18.4      Sec. 26.  [TAX LEVY FOR DEBT SERVICE.] 
 18.5      To pay the principal of and interest on bonds issued under 
 18.6   section 5, independent school district No. 625, St. Paul, must 
 18.7   levy a tax annually in an amount sufficient under Minnesota 
 18.8   Statutes, section 475.61, subdivisions 1 and 3, to pay the 
 18.9   principal of and interest on the bonds.  The tax authorized 
 18.10  under this section is in addition to the taxes authorized to be 
 18.11  levied under Minnesota Statutes, chapter 124A or 275, or other 
 18.12  law. 
 18.13     Sec. 27.  [SITE-BASED MANAGEMENT TASK FORCE.] 
 18.14     Subdivision 1.  [ESTABLISHMENT.] A task force of ten 
 18.15  members is established to make recommendations regarding 
 18.16  site-based management.  Eight members must be appointed by the 
 18.17  commissioner of children, families, and learning.  The 
 18.18  commissioner shall appoint representatives from the Minnesota 
 18.19  school boards association, the Minnesota education association, 
 18.20  the Minnesota federation of teachers, the secondary school 
 18.21  principals association, the association of school 
 18.22  administrators, the association of school business officials, 
 18.23  and two other individuals at the commissioner's discretion.  The 
 18.24  speaker of the house shall appoint one member and the senate 
 18.25  rules committee subcommittee on committees shall appoint one 
 18.26  member. 
 18.27     Subd. 2.  [DUTIES.] The task force must make 
 18.28  recommendations and propose legislative solutions for problems 
 18.29  associated with site-based school funding proposals including, 
 18.30  but not limited to, site-based funding implications related to 
 18.31  Public Employment Labor Relations Act, data privacy, personnel 
 18.32  issues, school district liability, local site accountability, 
 18.33  salary differentials, and the provision of federal and state 
 18.34  mandates including special needs services such as Title 1 and 
 18.35  special education. 
 18.36     Subd. 3.  [REPORT.] The task force shall make a report to 
 19.1   the 1999 legislature by February 1, 1999. 
 19.2      Sec. 28.  [ELLIS ISLAND DEMONSTRATION PROJECT.] 
 19.3      Subdivision 1.  [ESTABLISHMENT.] A school district may 
 19.4   establish a school center to identify, process, and place newly 
 19.5   arrived students with special language needs. 
 19.6      Subd. 2.  [DUTIES.] A district that establishes a center 
 19.7   must notify newly enrolled students of the center's existence 
 19.8   and encourage new students to report directly to the center.  
 19.9   The center must: 
 19.10     (1) obtain the student's prior records; 
 19.11     (2) develop or obtain a health history for the student; 
 19.12     (3) administer immunization shots, if necessary; 
 19.13     (4) perform a language skills evaluation, and make a 
 19.14  recommendation about an appropriate school placement based on 
 19.15  the student's language needs; 
 19.16     (5) register the student in classes at the school that the 
 19.17  student chooses or that best matches the student's needs; and 
 19.18     (6) advise the student and the student's family on 
 19.19  community resources available to ease the transition into a new 
 19.20  culture. 
 19.21     Subd. 3.  [FUNDING.] A school district that establishes a 
 19.22  center for newly arrived students is eligible for revenue equal 
 19.23  to $100 times each student that is processed through the center. 
 19.24     Sec. 29.  [APPROPRIATIONS.] 
 19.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 19.26  LEARNING.] The sums indicated in this section are appropriated 
 19.27  from the general fund to the department of children, families, 
 19.28  and learning for the fiscal years designated. 
 19.29     Subd. 2.  [ELLIS ISLAND DEMONSTRATION PROJECT.] For the 
 19.30  Ellis Island demonstration project under section 28: 
 19.31       $1,000,000     .....     1999 
 19.32     The commissioner may select up to six districts to 
 19.33  participate in this project.  At least two of the districts must 
 19.34  be located outside of the seven-county metropolitan area. 
 19.35     Subd. 3.  [EXTENDED INSTRUCTIONAL TIME.] For grants to 
 19.36  school districts for extended instructional programming through 
 20.1   longer school days, longer school weeks, longer school years, or 
 20.2   summer school programs: 
 20.3        $20,000,000     .....     1999 
 20.4      The commissioner may award grants of up to $2 per pupil to 
 20.5   school districts for each hour of additional instruction, up to 
 20.6   a maximum of 100 additional hours of instruction. 
 20.7      Subd. 4.  [TECHNOLOGY GRANTS.] For a technology grant to 
 20.8   special school district No. 1, Minneapolis, to develop and 
 20.9   implement a World Wide Web application that permits students and 
 20.10  parents to: 
 20.11     (1) initiate the enrollment process for any elementary 
 20.12  school, middle school, or secondary school in the district; 
 20.13     (2) follow graduation rule elements; 
 20.14     (3) initiate enrollment in the post-secondary enrollment 
 20.15  options program; 
 20.16     (4) initiate enrollment in other public higher education 
 20.17  system options; and 
 20.18     (5) access school site improvement plans, performance data, 
 20.19  and test scores. 
 20.20       $4,000,000     .....     1999 
 20.21     The Minneapolis school district must make a joint 
 20.22  application in partnership with a post-secondary institution and 
 20.23  a library system and demonstrate that the district will achieve 
 20.24  significant cost-savings from the computer vendor chosen for the 
 20.25  project. 
 20.26     Subd. 5.  [ARTS INTEGRATION ANNENBERG CHALLENGE GRANT.] For 
 20.27  a grant to special school district No. 1, Minneapolis, to match 
 20.28  an Annenberg challenge grant for integration of arts education 
 20.29  into the curriculum: 
 20.30       $3,200,000     .....     1999 
 20.31     This grant is contingent upon the district demonstrating to 
 20.32  the department that it has met the public and private match 
 20.33  requirements of the challenge grant.  The school district must 
 20.34  raise $3,200,000 in private matching funds to qualify for the 
 20.35  state grant. 
 20.36     Subd. 6.  [STORM DAMAGE.] For a grant to special school 
 21.1   district No. 1, Minneapolis, for reimbursement of claims of 
 21.2   damage to school facilities caused by the summer storms of 1997 
 21.3   that were not paid for by insurance or through Federal Emergency 
 21.4   Management Assistance funds.  
 21.5      This money may not be used for the portion of the damage 
 21.6   not covered by the insurance policy deductibles. 
 21.7        $1,000,000     .....     1999
 21.8      Sec. 30.  [REPEALER.] 
 21.9      Minnesota Statutes 1996, section 124A.22, subdivision 2a, 
 21.10  is repealed July 1, 1999. 
 21.11     Sec. 31.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
 21.12     (a) Sections 1, 5, 9, 10, 18, 19, 20, and 27 are effective 
 21.13  July 1, 1998.  
 21.14     (b) Sections 2, 3, 4, 6, 7, 8, 12, 13, 14, 15, 16, 17, 22, 
 21.15  23, 24, and 28 are effective July 1, 1998, for revenue for 
 21.16  fiscal years 1999 and later. 
 21.17     (c) Sections 25 and 26 are effective the day after the 
 21.18  governing body of independent school district No. 625, St. Paul, 
 21.19  complies with Minnesota Statutes, section 645.021, subdivision 3.
 21.20     (d) Sections 11 and 21 are effective for revenue for fiscal 
 21.21  year 2000.