1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education; special 
  1.4             education; interagency service; lifelong learning; 
  1.5             technology; facilities and organization; academic 
  1.6             excellence; education policy; state agencies; 
  1.7             appropriating money; amending Minnesota Statutes 1996, 
  1.8             sections 15.014, subdivision 3; 119B.20, subdivisions 
  1.9             5, 8, and 12; 120.03, subdivisions 1 and 5; 120.06, 
  1.10            subdivision 2a; 120.062, subdivision 5; 120.064, 
  1.11            subdivisions 4, 5, 9, 14, 17, 21, and 24; 120.101, 
  1.12            subdivisions 3, 7, and 8; 120.102, subdivision 3; 
  1.13            120.17, subdivisions 1, 2, 3, 3a, 3b, 7a, 9, and 15; 
  1.14            120.1701, subdivisions 2, 5, 11, and 17; 120.173, 
  1.15            subdivisions 1 and 6; 120.66, subdivisions 1 and 2; 
  1.16            120.73, subdivision 1; 120.74, subdivision 1; 121.02, 
  1.17            subdivision 1; 121.11, subdivision 7d; 121.1115, 
  1.18            subdivision 1, and by adding a subdivision; 121.14; 
  1.19            121.148, subdivision 3; 121.16, by adding 
  1.20            subdivisions; 121.1601, subdivision 2; 121.612, 
  1.21            subdivisions 2, 3, 6, 7, and 9; 121.908, subdivisions 
  1.22            2 and 3; 121.932, subdivision 5, and by adding a 
  1.23            subdivision; 122.23, subdivisions 2b and 6; 123.34, 
  1.24            subdivision 9; 123.35, subdivision 19a; 123.3514, by 
  1.25            adding a subdivision; 123.39, subdivision 1, and by 
  1.26            adding a subdivision; 123.805, subdivision 1; 123.935, 
  1.27            subdivisions 1 and 2; 124.078; 124.17, subdivision 2; 
  1.28            124.225, subdivisions 7f and 8m; 124.239, as amended; 
  1.29            124.248, subdivisions 1 and 1a; 124.26, subdivision 
  1.30            1c; 124.2713, subdivision 6a; 124.2727, subdivisions 
  1.31            6a and 6c; 124.273, by adding a subdivision; 124.32, 
  1.32            by adding a subdivision; 124.3201, subdivision 5; 
  1.33            124.646, subdivision 4; 124.755, subdivision 1; 
  1.34            124.83, subdivision 8; 124.84, subdivisions 3 and 4; 
  1.35            124.85, subdivision 4; 124.91, subdivisions 2, 4, and 
  1.36            6; 124.95, as amended; 124A.03, subdivision 3c; 
  1.37            124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 
  1.38            6, and by adding a subdivision; 124A.22, by adding a 
  1.39            subdivision; 124A.29, subdivision 1; 124A.292, 
  1.40            subdivision 3; 124A.30; 124C.45, subdivision 2; 
  1.41            124C.47; 124C.48, by adding a subdivision; 125.05, 
  1.42            subdivisions 4 and 8; 125.183, subdivisions 1 and 3; 
  1.43            125.1885, subdivisions 1, 4, and 5; 125.191; 126.237; 
  1.44            126.70, subdivision 2a; 127.27, subdivision 2; 
  1.45            128A.02, subdivisions 1, 3, 3b, 5, 6, and by adding 
  1.46            subdivisions; 128A.022; 128A.023, subdivisions 1 and 
  2.1             2; 128A.026, subdivisions 1 and 3; 128A.07, 
  2.2             subdivision 2; 169.448, subdivision 2; 169.451, 
  2.3             subdivision 5; 256B.0625, subdivision 26; 268.665, 
  2.4             subdivision 3; and 471.18; Minnesota Statutes 1997 
  2.5             Supplement, sections 16B.465, subdivision 4; 120.05, 
  2.6             subdivision 2; 120.064, subdivisions 3, 8, 10, and 
  2.7             14a; 120.1045, subdivision 1; 120.1701, subdivision 3; 
  2.8             121.1113, subdivision 1; 121.15, subdivision 6; 
  2.9             121.615, subdivisions 2, 6, 7, and 10; 121.904, 
  2.10            subdivision 4a; 124.17, subdivisions 1d, 4, 6, and 7; 
  2.11            124.195, subdivision 7; 124.248, subdivisions 2a and 
  2.12            6; 124.26, subdivision 2; 124.2601, subdivisions 3 and 
  2.13            6; 124.2711, subdivision 2a; 124.2713, subdivision 6; 
  2.14            124.3111, subdivision 2; 124.6475; 124.648, 
  2.15            subdivision 3; 124.91, subdivisions 1, 5, and 7, as 
  2.16            amended; 124.961; 124A.036, subdivision 5; 124A.22, 
  2.17            subdivisions 2, 11, and 13b; 124A.23, subdivision 1; 
  2.18            124A.28, subdivisions 1 and 1a; 124C.46, subdivisions 
  2.19            1 and 2; 125.05, subdivisions 1c and 2; 126.79, 
  2.20            subdivisions 6, 7, 8, and 9; 127.27, subdivisions 10 
  2.21            and 11; 127.31, subdivision 15; 127.32; 127.36, 
  2.22            subdivision 1; 127.38; 128A.02, subdivision 7; 169.01, 
  2.23            subdivision 6; 169.974, subdivision 2; 268.665, 
  2.24            subdivision 2; and 290.0674, subdivision 1; Laws 1992, 
  2.25            chapter 499, article 7, section 31; Laws 1993, chapter 
  2.26            224, article 3, section 32; Laws 1997, chapter 157, 
  2.27            section 71; Laws 1997, First Special Session chapter 
  2.28            4, article 1, section 61, subdivision 3; article 2, 
  2.29            section 51, subdivisions 15, 25, 29, and 33; article 
  2.30            3, section 25, subdivision 4; article 4, sections 33, 
  2.31            34, and 35, subdivision 9; article 5, section 28, 
  2.32            subdivisions 9, 10, 11, and 12; article 6, section 20, 
  2.33            subdivision 4; article 8, section 4, subdivision 3; 
  2.34            article 9, section 11; article 10, sections 3, 
  2.35            subdivision 2; 4, and 5; proposing coding for new law 
  2.36            in Minnesota Statutes, chapters 120; 123; and 124A; 
  2.37            repealing Minnesota Statutes 1996, sections 121.02, 
  2.38            subdivisions 2a, 3, and 4; 121.11, subdivisions 5, 7, 
  2.39            7b, 7d, 9, 11, 12, and 14; 121.904, subdivision 4c; 
  2.40            124.2601, subdivision 4; 124.2713, subdivision 6b; 
  2.41            124.2727, subdivision 6b; 124.32, subdivision 13; 
  2.42            124.491; 124.492; 124.493; 124.494; 124.4945; 
  2.43            124.4946; 124.495; 124.647; 124.82; 124.83, 
  2.44            subdivisions 4, 5, and 7; 124A.292, subdivisions 2 and 
  2.45            4; 124C.55; 124C.56; 124C.57; 124C.60, subdivision 2; 
  2.46            124C.71; 124C.72; 124C.73; and 126.12; Minnesota 
  2.47            Statutes 1997 Supplement, sections 120.1015; 121.11, 
  2.48            subdivision 7e; 124.155, subdivisions 1 and 2; 
  2.49            124.2601, subdivision 5; 124.825, subdivisions 3 and 
  2.50            4; 124.912, subdivisions 2 and 3; 124C.60, 
  2.51            subdivisions 1 and 3; and 169.452; Laws 1997, chapter 
  2.52            231, article 1, section 17; Minnesota Rules, part 
  2.53            3525.2750, subpart 1, item B. 
  2.54  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.55                             ARTICLE 1
  2.56                         GENERAL EDUCATION
  2.57     Section 1.  Minnesota Statutes 1997 Supplement, section 
  2.58  121.904, subdivision 4a, is amended to read: 
  2.59     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.60  settlement revenue" means the current, delinquent, and 
  2.61  manufactured home property tax receipts collected by the county 
  2.62  and distributed to the school district, including distributions 
  3.1   made pursuant to section 279.37, subdivision 7, and excluding 
  3.2   the amount levied pursuant to section 124.914, subdivision 1. 
  3.3      (b) In June of each year, the school district shall 
  3.4   recognize as revenue, in the fund for which the levy was made, 
  3.5   the lesser of:  
  3.6      (1) the May, June, and July school district tax settlement 
  3.7   revenue received in that calendar year; or 
  3.8      (2) the sum of: the state aids and credits enumerated in 
  3.9   section 124.155, subdivision 2, which are for the fiscal year 
  3.10  payable in that fiscal year plus an amount equal to the levy 
  3.11  recognized as revenue in June of the prior year plus 31 percent 
  3.12  of the amount of the levy certified in the prior calendar year 
  3.13  according to section 124A.03, subdivision 2; or 
  3.14     (3)(i) 7.0 percent of the lesser of the amount of the 
  3.15  general education levy certified in the prior calendar year 
  3.16  according to section 124A.23, subdivision 2, or the difference 
  3.17  between the amount of the total general fund levy certified in 
  3.18  the prior calendar year and the sum of the amounts certified in 
  3.19  the prior calendar year according to sections 124A.03, 
  3.20  subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
  3.21  paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
  3.22  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  3.23     (ii) 31 percent of the referendum levy certified in the 
  3.24  prior calendar year according to section 124A.03, subdivision 2; 
  3.25  plus 
  3.26     (iii) the entire amount of the levy certified in the prior 
  3.27  calendar year according to sections 124.315, subdivision 4; 
  3.28  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
  3.29  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  3.30  124.918, subdivision 6. 
  3.31     (i) for levies authorized before January 1, 1998, 31 
  3.32  percent of the referendum levy certified in the prior calendar 
  3.33  year according to section 124A.03, subdivision 2; plus 
  3.34     (ii) the entire amount of the levy certified in the prior 
  3.35  calendar year according to sections 124.912, subdivisions 1, 
  3.36  paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 
  4.1   subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  4.2   124.918, subdivision 6. 
  4.3      (c) In July of each year, the school district shall 
  4.4   recognize as revenue that portion of the school district tax 
  4.5   settlement revenue received in that calendar year and not 
  4.6   recognized as revenue for the previous fiscal year pursuant to 
  4.7   clause (b).  
  4.8      (d) All other school district tax settlement revenue shall 
  4.9   be recognized as revenue in the fiscal year of the settlement. 
  4.10  Portions of the school district levy assumed by the state, 
  4.11  including prior year adjustments and the amount to fund the 
  4.12  school portion of the reimbursement made pursuant to section 
  4.13  273.425, shall be recognized as revenue in the fiscal year 
  4.14  beginning in the calendar year for which the levy is payable. 
  4.15     Sec. 2.  Minnesota Statutes 1996, section 121.908, 
  4.16  subdivision 2, is amended to read: 
  4.17     Subd. 2.  Each district shall submit to the commissioner by 
  4.18  August September 15 of each year an unaudited financial 
  4.19  statement data for the preceding fiscal year.  This statement 
  4.20  These financial data shall be submitted on forms in the format 
  4.21  prescribed by the commissioner. 
  4.22     Sec. 3.  Minnesota Statutes 1996, section 121.908, 
  4.23  subdivision 3, is amended to read: 
  4.24     Subd. 3.  By December 31 November 30 of the calendar year 
  4.25  of the submission of the unaudited financial statement data, the 
  4.26  district shall provide to the commissioner and state auditor an 
  4.27  audited financial data for the preceding fiscal year.  An 
  4.28  audited financial statement prepared in a form which will allow 
  4.29  comparison with and correction of material differences in the 
  4.30  unaudited statement financial data shall be submitted to the 
  4.31  commissioner and the state auditor by November 30.  The audited 
  4.32  financial statement must also provide a statement of assurance 
  4.33  pertaining to uniform financial accounting and reporting 
  4.34  standards compliance and a copy of the management letter 
  4.35  submitted to the district by the school district's auditor. 
  4.36     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  5.1   124.17, subdivision 1d, is amended to read: 
  5.2      Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  5.3   revenue pupil units for fiscal year 1998 and thereafter must be 
  5.4   computed according to this subdivision.  
  5.5      (a) The compensation revenue concentration percentage for 
  5.6   each building in a district equals the product of 100 times the 
  5.7   ratio of:  
  5.8      (1) the sum of the number of pupils enrolled in the 
  5.9   building eligible to receive free lunch plus one-half of the 
  5.10  pupils eligible to receive reduced priced lunch on October 1 of 
  5.11  the previous fiscal year; to 
  5.12     (2) the number of pupils enrolled in the building on 
  5.13  October 1 of the previous fiscal year. 
  5.14     (b) The compensation revenue pupil weighting factor for a 
  5.15  building equals the lesser of one or the quotient obtained by 
  5.16  dividing the building's compensation revenue concentration 
  5.17  percentage by 80.0.  
  5.18     (c) The compensation revenue pupil units for a building 
  5.19  equals the product of:  
  5.20     (1) the sum of the number of pupils enrolled in the 
  5.21  building eligible to receive free lunch and one-half of the 
  5.22  pupils eligible to receive reduced priced lunch on October 1 of 
  5.23  the previous fiscal year; times 
  5.24     (2) the compensation revenue pupil weighting factor for the 
  5.25  building; times 
  5.26     (3) .60. 
  5.27     (d) Notwithstanding paragraphs (a) to (c), for charter 
  5.28  schools and contracted alternative programs in the first year of 
  5.29  operation, compensation revenue pupil units shall be computed 
  5.30  using data for the current fiscal year.  If the charter school 
  5.31  or contracted alternative program begins operation after October 
  5.32  1, compensatory revenue pupil units shall be computed based on 
  5.33  pupils enrolled on an alternate date determined by the 
  5.34  commissioner, and the compensation revenue pupil units shall be 
  5.35  prorated based on the ratio of the number of days of student 
  5.36  instruction to 170 days. 
  6.1      (e) The percentages in this subdivision must be based on 
  6.2   the count of individual pupils and not on a building average or 
  6.3   minimum. 
  6.4      (f) For a school district in which the number of pupils 
  6.5   enrolled on October 1 of the current fiscal year exceeds the 
  6.6   number of pupils enrolled on October 1 of the previous fiscal 
  6.7   year by more than ten percent, the compensation revenue pupil 
  6.8   units for each building equals the product of the compensation 
  6.9   revenue pupil units according to paragraph (c) times an amount 
  6.10  equal to the difference between (i) the ratio of the number of 
  6.11  pupils enrolled in the district on October 1 of the current 
  6.12  fiscal year to the number of pupils enrolled in the district on 
  6.13  October 1 of the previous fiscal year and (ii) .10. 
  6.14     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  6.15  124.17, subdivision 4, is amended to read: 
  6.16     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  6.17  enrolled in a learning year program under section 121.585, an 
  6.18  area learning center under sections 124C.45 and 124C.46, or an 
  6.19  alternative program approved by the commissioner, or a contract 
  6.20  alternative program under section 126.22, subdivision 3, 
  6.21  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
  6.22  school year for a secondary student, more than 935 hours in a 
  6.23  school year for an elementary student, or more than 425 hours in 
  6.24  a school year for a kindergarten student without a disability, 
  6.25  that pupil may be counted as more than one pupil in average 
  6.26  daily membership.  The amount in excess of one pupil must be 
  6.27  determined by the ratio of the number of hours of instruction 
  6.28  provided to that pupil in excess of:  (i) the greater of 1,020 
  6.29  hours or the number of hours required for a full-time secondary 
  6.30  pupil in the district to 1,020 for a secondary pupil; (ii) the 
  6.31  greater of 935 hours or the number of hours required for a 
  6.32  full-time elementary pupil in the district to 935 for an 
  6.33  elementary pupil in grades 1 through 6; and (iii) the greater of 
  6.34  425 hours or the number of hours required for a full-time 
  6.35  kindergarten student without a disability in the district to 425 
  6.36  for a kindergarten student without a disability.  Hours that 
  7.1   occur after the close of the instructional year in June shall be 
  7.2   attributable to the following fiscal year.  A kindergarten 
  7.3   student must not be counted as more than 1.2 pupils in average 
  7.4   daily membership under this subdivision. 
  7.5      (b)(i) To receive general education revenue for a pupil in 
  7.6   an alternative program that has an independent study component, 
  7.7   a school district must meet the requirements in this paragraph.  
  7.8   The school district must develop with the pupil a continual 
  7.9   learning plan for the pupil.  A district must allow a minor 
  7.10  pupil's parent or guardian to participate in developing the 
  7.11  plan, if the parent or guardian wants to participate.  The plan 
  7.12  must identify the learning experiences and expected outcomes 
  7.13  needed for satisfactory credit for the year and for graduation.  
  7.14  The plan must be updated each year.  Each school district that 
  7.15  has a state-approved public alternative program must reserve 
  7.16  revenue in an amount equal to at least 90 percent of the 
  7.17  district average general education revenue per pupil unit less 
  7.18  compensatory revenue per pupil unit times the number of pupil 
  7.19  units generated by students attending a state-approved public 
  7.20  alternative program.  The amount of reserved revenue available 
  7.21  under this subdivision may only be spent for program costs 
  7.22  associated with the state-approved public alternative program.  
  7.23  Compensatory revenue must be allocated according to section 
  7.24  124A.28, subdivision 1a. 
  7.25     (ii) General education revenue for a pupil in an approved 
  7.26  alternative program without an independent study component must 
  7.27  be prorated for a pupil participating for less than a full year, 
  7.28  or its equivalent.  Each school district that has a 
  7.29  state-approved public alternative program must reserve revenue 
  7.30  in an amount equal to at least 90 percent of the district 
  7.31  average general education revenue per pupil unit less 
  7.32  compensatory revenue per pupil unit times the number of pupil 
  7.33  units generated by students attending a state-approved public 
  7.34  alternative program.  The amount of reserved revenue available 
  7.35  under this subdivision may only be spent for program costs 
  7.36  associated with the state-approved public alternative program.  
  8.1   Compensatory revenue must be allocated according to section 
  8.2   124A.28, subdivision 1a.  
  8.3      (iii) General education revenue for a pupil in an approved 
  8.4   alternative program that has an independent study component must 
  8.5   be paid for each hour of teacher contact time and each hour of 
  8.6   independent study time completed toward a credit or graduation 
  8.7   standards necessary for graduation.  Average daily membership 
  8.8   for a pupil shall equal the number of hours of teacher contact 
  8.9   time and independent study time divided by 1,020. 
  8.10     (iv) For an alternative program having an independent study 
  8.11  component, the commissioner shall require a description of the 
  8.12  courses in the program, the kinds of independent study involved, 
  8.13  the expected learning outcomes of the courses, and the means of 
  8.14  measuring student performance against the expected outcomes.  
  8.15     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  8.16  124.17, subdivision 6, is amended to read: 
  8.17     Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
  8.18  commissioner shall determine the number of children eligible to 
  8.19  receive either a free or reduced priced lunch on October 1 each 
  8.20  year.  Children enrolled in a building on October 1 and 
  8.21  determined to be eligible to receive free or reduced price lunch 
  8.22  by January 15 of the following year shall be counted as eligible 
  8.23  on October 1 for purposes of subdivision 1d.  The commissioner 
  8.24  may use federal definitions for these purposes and may adjust 
  8.25  these definitions as appropriate.  The commissioner may adopt 
  8.26  reporting guidelines to assure accuracy of data counts and 
  8.27  eligibility.  Districts shall use any guidelines adopted by the 
  8.28  commissioner. 
  8.29     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  8.30  124.17, subdivision 7, is amended to read: 
  8.31     Subd. 7.  [LEP PUPIL UNITS.] (a) Limited English 
  8.32  proficiency pupil units for fiscal year 1998 and thereafter 
  8.33  shall be determined according to this subdivision. 
  8.34     (b) The limited English proficiency concentration 
  8.35  percentage for a district equals the product of 100 times the 
  8.36  ratio of: 
  9.1      (1) the number of pupils of limited English proficiency 
  9.2   enrolled in the district during the current fiscal year; to 
  9.3      (2) the number of pupils in average daily membership 
  9.4   enrolled in the district. 
  9.5      (c) The limited English proficiency pupil units for each 
  9.6   pupil enrolled in a program for pupils of limited English 
  9.7   proficiency in accordance with sections 126.261 to 126.269 
  9.8   equals the lesser of one or the quotient obtained by dividing 
  9.9   the limited English proficiency concentration percentage for the 
  9.10  pupil's district of enrollment by 11.5. 
  9.11     (d) Limited English proficiency pupil units shall be 
  9.12  counted by the district of enrollment. 
  9.13     (e) Notwithstanding paragraph (d), for the purposes of this 
  9.14  subdivision, pupils enrolled in a cooperative or intermediate 
  9.15  school district shall be counted by the district of residence. 
  9.16     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  9.17  124.195, subdivision 7, is amended to read: 
  9.18     Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  9.19  fiscal year state general fund payments for a district 
  9.20  nonoperating fund shall be made at 90 percent of the estimated 
  9.21  entitlement during the fiscal year of the entitlement.  This 
  9.22  amount shall be paid in 12 equal monthly installments.  The 
  9.23  amount of the actual entitlement, after adjustment for actual 
  9.24  data, minus the payments made during the fiscal year of the 
  9.25  entitlement shall be paid prior to October 31 of the following 
  9.26  school year.  The commissioner may make advance payments of debt 
  9.27  service equalization aid or homestead and agricultural credit 
  9.28  aid for a district's debt service fund earlier than would occur 
  9.29  under the preceding schedule if the district submits evidence 
  9.30  showing a serious cash flow problem in the fund.  The 
  9.31  commissioner may make earlier payments during the year and, if 
  9.32  necessary, increase the percent of the entitlement paid to 
  9.33  reduce the cash flow problem. 
  9.34     Sec. 9.  Minnesota Statutes 1996, section 124.248, 
  9.35  subdivision 1, is amended to read: 
  9.36     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 10.1   education revenue shall be paid to a charter school as though it 
 10.2   were a school district.  The general education revenue for each 
 10.3   pupil unit is the state average general education revenue per 
 10.4   pupil unit minus $170 an amount equal to the product of the 
 10.5   formula allowance according to section 124A.22, subdivision 2, 
 10.6   times .0485, calculated without compensatory basic skills 
 10.7   revenue, transportation sparsity revenue, and the transportation 
 10.8   portion of the transition revenue adjustment, plus compensatory 
 10.9   basic skills revenue as though the school were a school district.
 10.10     Sec. 10.  Minnesota Statutes 1996, section 124.248, 
 10.11  subdivision 1a, is amended to read: 
 10.12     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 10.13  shall be paid to a charter school that provides transportation 
 10.14  services according to section 120.064, subdivision 15, according 
 10.15  to this subdivision.  Transportation aid shall equal 
 10.16  transportation revenue.  
 10.17     (a) In addition to the revenue under subdivision 1, a 
 10.18  charter school providing transportation services shall receive 
 10.19  general education aid for each pupil unit equal to the sum of 
 10.20  $170 an amount equal to the product of the formula allowance 
 10.21  according to section 124A.22, subdivision 2, times .0485, plus 
 10.22  the transportation sparsity allowance for the school district in 
 10.23  which the charter school is located, plus the transportation 
 10.24  transition allowance for the school district in which the 
 10.25  charter school is located.  
 10.26     (b) For the first two years that a charter school is 
 10.27  providing transportation services, the special programs 
 10.28  transportation revenue equals the charter school's actual cost 
 10.29  in the current school year for transportation services for 
 10.30  children with disabilities under section 124.223, subdivisions 
 10.31  4, 5, 7, and 8.  For the third year of transportation services 
 10.32  and later fiscal years, the special programs transportation 
 10.33  revenue shall be computed according to section 124.225, 
 10.34  subdivision 14.  
 10.35     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 10.36  124.248, subdivision 2a, is amended to read: 
 11.1      Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
 11.2   finds it economically advantageous to rent or lease a building 
 11.3   or land for any instructional purposes and it determines that 
 11.4   the total operating capital revenue under section 124A.22, 
 11.5   subdivision 10, is insufficient for this purpose, it may apply 
 11.6   to the commissioner for building lease aid for this purpose.  
 11.7   Criteria for aid approval and revenue uses shall be as defined 
 11.8   for the building lease levy in section 124.91, subdivision 1, 
 11.9   paragraphs (a) and (b).  The amount of building lease aid per 
 11.10  pupil unit served for a charter school for any year shall not 
 11.11  exceed the lesser of (a) 80 percent of the approved cost or (b) 
 11.12  the product of the actual pupil units served for the current 
 11.13  school year times the sum of the state average debt redemption 
 11.14  fund revenue plus capital revenue, according to section 124.91, 
 11.15  per actual pupil unit served for the current fiscal year. 
 11.16     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 11.17  124.248, subdivision 6, is amended to read: 
 11.18     Subd. 6.  [START-UP COSTS.] During the first two years of a 
 11.19  charter school's operation, the charter school is eligible for 
 11.20  aid to pay for start-up costs and additional operating costs. 
 11.21  Start-up cost aid equals the greater of: 
 11.22     (1) $50,000 per charter school; or 
 11.23     (2) $500 times the charter school's pupil units served for 
 11.24  that year. 
 11.25     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 11.26  124.2601, subdivision 3, is amended to read: 
 11.27     Subd. 3.  [REVENUE AID.] Adult basic education revenue aid 
 11.28  for each approved program equals 65 percent of the general 
 11.29  education formula allowance times the number of full-time 
 11.30  equivalent students in its adult basic education program. 
 11.31     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 11.32  124.2601, subdivision 6, is amended to read: 
 11.33     Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
 11.34  adult basic education program that receives less state aid under 
 11.35  subdivisions 3 and 7 than from the aid formula for fiscal year 
 11.36  1992 shall receive the amount of aid it received in fiscal year 
 12.1   1992. 
 12.2      (b) For 1995, 1996, and 1997 fiscal years, an adult basic 
 12.3   education program that receives aid shall receive at least the 
 12.4   amount of aid it received in fiscal year 1992 under subdivisions 
 12.5   3 and 7, plus aid equal to the amount of revenue that would have 
 12.6   been raised for taxes payable in 1994 under Minnesota Statutes 
 12.7   1992, section 124.2601, subdivision 4, minus the amount raised 
 12.8   under subdivision 4. 
 12.9      (c) For fiscal year 1998, any adult basic education program 
 12.10  that receives less state aid than in fiscal year 1997 shall 
 12.11  receive additional aid equal to 80 percent of the difference 
 12.12  between its 1997 aid and the amount of aid under section 
 12.13  124.2601, subdivision 5.  For fiscal year 1999 and later, 
 12.14  additional aid under this paragraph must be reduced by 20 
 12.15  percent each year equals 80 percent of the additional aid 
 12.16  computed for fiscal year 1998.  For fiscal year 2000, the 
 12.17  additional aid under this paragraph equals 60 percent of the 
 12.18  additional aid computed for fiscal year 1998.  For fiscal year 
 12.19  2001, the additional aid under this paragraph equals 40 percent 
 12.20  of the additional aid computed for fiscal year 1998.  For fiscal 
 12.21  year 2002, the additional aid under this paragraph equals 20 
 12.22  percent of the additional aid computed for fiscal year 1998.  
 12.23  For fiscal year 2003 and later, the additional aid under this 
 12.24  paragraph equals zero. 
 12.25     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 12.26  124.2711, subdivision 2a, is amended to read: 
 12.27     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 12.28  obtain early childhood family education revenue, a district may 
 12.29  levy an amount equal to the tax rate of .653 .45 percent times 
 12.30  the adjusted tax capacity of the district for the year preceding 
 12.31  the year the levy is certified.  If the amount of the early 
 12.32  childhood family education levy would exceed the early childhood 
 12.33  family education revenue, the early childhood family education 
 12.34  levy shall equal the early childhood family education revenue. 
 12.35     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 12.36  124.2713, subdivision 6, is amended to read: 
 13.1      Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
 13.2   education revenue, a district may levy the amount raised by a 
 13.3   tax rate of 1.09 .41 percent times the adjusted net tax capacity 
 13.4   of the district.  If the amount of the community education levy 
 13.5   would exceed the community education revenue, the community 
 13.6   education levy shall be determined according to subdivision 6a. 
 13.7      Sec. 17.  Minnesota Statutes 1996, section 124.2713, 
 13.8   subdivision 6a, is amended to read: 
 13.9      Subd. 6a.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
 13.10  FORMULA.] If the amount of the community education levy for a 
 13.11  district exceeds the district's community education revenue, the 
 13.12  amount of the community education levy is limited to the sum of: 
 13.13     (1) the district's community education revenue according to 
 13.14  subdivision 1; plus. 
 13.15     (2) the amount of the aid reduction for the same fiscal 
 13.16  year according to subdivision 6b.  
 13.17     For purposes of statutory cross-reference, a levy made 
 13.18  according to this subdivision is the levy made according to 
 13.19  subdivision 6.  
 13.20     Sec. 18.  Minnesota Statutes 1996, section 124.2727, 
 13.21  subdivision 6a, is amended to read: 
 13.22     Subd. 6a.  [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] 
 13.23  A district's cooperation revenue for fiscal year 1999 is equal 
 13.24  to the greater of $67 times the actual pupil units or $25,000. 
 13.25     Sec. 19.  Minnesota Statutes 1996, section 124.2727, 
 13.26  subdivision 6c, is amended to read: 
 13.27     Subd. 6c.  [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A 
 13.28  district's cooperation aid for fiscal year 1999 is the 
 13.29  difference between its district cooperation revenue and its 
 13.30  district cooperation levy.  If a district does not levy the 
 13.31  entire amount permitted, aid must be reduced in proportion to 
 13.32  the actual amount levied. 
 13.33     Sec. 20.  Minnesota Statutes 1996, section 124.273, is 
 13.34  amended by adding a subdivision to read: 
 13.35     Subd. 8.  [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 
 13.36  purposes of this section and section 124.321, pupils of limited 
 14.1   English proficiency enrolled in a cooperative or intermediate 
 14.2   school district unit shall be counted by the school district of 
 14.3   residence, and the cooperative unit shall allocate its approved 
 14.4   expenditures for limited English proficiency programs among 
 14.5   participating school districts.  Limited English proficiency aid 
 14.6   for services provided by a cooperative or intermediate school 
 14.7   district shall be paid to the participating school districts. 
 14.8      Sec. 21.  Minnesota Statutes 1996, section 124.85, 
 14.9   subdivision 4, is amended to read: 
 14.10     Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
 14.11  guaranteed energy savings contract with a qualified provider if, 
 14.12  after review of the report and the commissioner's evaluation if 
 14.13  requested, the board finds that the amount it would spend on the 
 14.14  energy conservation measures recommended in the report is not 
 14.15  likely to exceed the amount to be saved in energy and operation 
 14.16  costs over 15 years from the date of installation if the 
 14.17  recommendations in the report were followed, and the qualified 
 14.18  provider provides a written guarantee that the energy or 
 14.19  operating cost savings will meet or exceed the costs of the 
 14.20  system.  The guaranteed energy savings contract may provide for 
 14.21  payments over a period of time, not to exceed 15 years.  
 14.22  Notwithstanding section 121.912, a district annually may 
 14.23  transfer from the general fund to the capital expenditure fund 
 14.24  reserve for operating capital account an amount up to the amount 
 14.25  saved in energy and operation costs as a result of guaranteed 
 14.26  energy savings contracts. 
 14.27     Sec. 22.  Minnesota Statutes 1996, section 124.3201, 
 14.28  subdivision 5, is amended to read: 
 14.29     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 14.30  A school district's special education revenue for fiscal year 
 14.31  1996 and later equals the state total special education revenue, 
 14.32  minus the amount determined under paragraph (b), times the ratio 
 14.33  of the district's adjusted special education base revenue to the 
 14.34  state total adjusted special education base revenue.  If the 
 14.35  state board of education modifies its rules for special 
 14.36  education in a manner that increases a school district's special 
 15.1   education obligations or service requirements, the commissioner 
 15.2   of children, families, and learning shall annually increase each 
 15.3   district's special education revenue by the amount necessary to 
 15.4   compensate for the increased service requirements.  The 
 15.5   additional revenue equals the cost in the current year 
 15.6   attributable to rule changes not reflected in the computation of 
 15.7   special education base revenue, multiplied by the appropriate 
 15.8   percentages from subdivision 2. 
 15.9      (b) Notwithstanding paragraph (a), if the special education 
 15.10  base revenue for a district equals zero, the special education 
 15.11  revenue equals the amount computed according to subdivision 2 
 15.12  using current year data.  
 15.13     (c) Notwithstanding paragraphs (a) and (b), if the special 
 15.14  education base revenue for a district is greater than zero, and 
 15.15  the base year amount for the district under subdivision 2, 
 15.16  paragraph (a), clause (7), equals zero, the special education 
 15.17  revenue equals the sum of the amount computed according to 
 15.18  paragraph (a), plus the amount computed according to subdivision 
 15.19  2, paragraph (a), clause (7), using current year data. 
 15.20     Sec. 23.  Minnesota Statutes 1996, section 124A.03, 
 15.21  subdivision 3c, is amended to read: 
 15.22     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] (a) For fiscal 
 15.23  year 1998 and later, a district's referendum allowance for 
 15.24  referendum authority under subdivision 1c is reduced as provided 
 15.25  in this subdivision paragraph.  
 15.26     (a) (1) For referendum revenue authority approved before 
 15.27  June 1, 1996, and effective for fiscal year 1997, the reduction 
 15.28  equals the amount of the reduction computed for fiscal year 1997 
 15.29  under subdivision 3b.  
 15.30     (b) (2) For referendum revenue authority approved before 
 15.31  June 1, 1996, and effective beginning in fiscal year 1998, the 
 15.32  reduction equals the amount of the reduction computed for fiscal 
 15.33  year 1998 under subdivision 3b. 
 15.34     (b) For fiscal year 1999 and later, a district's referendum 
 15.35  allowance for referendum authority under subdivision 1c equals 
 15.36  the amount of the reduction computed for fiscal year 1998 under 
 16.1   paragraph (a) times the lesser of one or the ratio of the 
 16.2   referendum allowance for the district to the amount determined 
 16.3   in subdivision 1c, clause (2), for fiscal year 1999. 
 16.4      (c) For referendum revenue authority approved after May 31, 
 16.5   1996, there is no reduction.  
 16.6      (d) For districts with more than one referendum authority, 
 16.7   the reduction shall be computed separately for each authority.  
 16.8   The reduction shall be applied first to authorities levied 
 16.9   against tax capacity, and then to authorities levied against 
 16.10  referendum market value.  For districts with more than one 
 16.11  authority levied against net tax capacity or against referendum 
 16.12  market value, the referendum allowance reduction shall be 
 16.13  applied first to the authority with the earliest expiration date.
 16.14     (e) When referendum authority approved before June 1, 1996, 
 16.15  expires, the referendum allowance reduction for a district shall 
 16.16  be decreased by the amount of the decline in the district's 
 16.17  total referendum allowance under subdivision 1c.  For districts 
 16.18  with more than one referendum authority remaining after the 
 16.19  expiration, the amount of any remaining allowance reduction 
 16.20  shall be reallocated among the remaining referendum authority 
 16.21  approved before June 1, 1996, according to paragraph (d). 
 16.22     (f) For a newly reorganized district created after July 1, 
 16.23  1996, the referendum revenue reduction equals the lesser of the 
 16.24  amount calculated for the combined district, or the sum of the 
 16.25  amounts by which each of the reorganizing district's 
 16.26  supplemental revenue reduction exceeds its respective 
 16.27  supplemental revenue allowances calculated for the year 
 16.28  preceding the year of reorganization. 
 16.29     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 16.30  124A.036, subdivision 5, is amended to read: 
 16.31     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 16.32  education aid for districts must be adjusted for each pupil 
 16.33  attending a nonresident district under sections 120.062, 
 16.34  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 16.35  The adjustments must be made according to this subdivision. 
 16.36     (a) General education aid paid to a resident district must 
 17.1   be reduced by an amount equal to the general education revenue 
 17.2   exclusive of compensatory basic skills revenue attributable to 
 17.3   the pupil in the resident district. 
 17.4      (b) General education aid paid to a district serving a 
 17.5   pupil in programs listed in this subdivision shall be increased 
 17.6   by an amount equal to the general education revenue exclusive of 
 17.7   compensatory basic skills revenue attributable to the pupil in 
 17.8   the nonresident district.  
 17.9      (c) If the amount of the reduction to be made from the 
 17.10  general education aid of the resident district is greater than 
 17.11  the amount of general education aid otherwise due the district, 
 17.12  the excess reduction must be made from other state aids due the 
 17.13  district. 
 17.14     (d) The district of residence shall pay tuition to a 
 17.15  district or an area learning center, operated according to 
 17.16  paragraph (e), providing special instruction and services to a 
 17.17  pupil with a disability, as defined in section 120.03, or a 
 17.18  pupil, as defined in section 120.181, who is enrolled in a 
 17.19  program listed in this subdivision.  The tuition shall be equal 
 17.20  to (1) the actual cost of providing special instruction and 
 17.21  services to the pupil, including a proportionate amount for debt 
 17.22  service and for capital expenditure facilities and equipment, 
 17.23  and debt service but not including any amount for 
 17.24  transportation, minus (2) the amount of general education aid 
 17.25  and special education aid, attributable to that pupil, that is 
 17.26  received by the district providing special instruction and 
 17.27  services. 
 17.28     (e) An area learning center operated by a service 
 17.29  cooperative, intermediate district, education district, or a 
 17.30  joint powers cooperative may elect through the action of the 
 17.31  constituent boards to charge tuition for pupils rather than to 
 17.32  calculate general education aid adjustments under paragraph (a), 
 17.33  (b), or (c).  The tuition must be equal to the greater of the 
 17.34  average general education revenue per pupil unit attributable to 
 17.35  the pupil, or the actual cost of providing the instruction, 
 17.36  excluding transportation costs, if the pupil meets the 
 18.1   requirements of section 120.03 or 120.181. 
 18.2      Sec. 25.  Minnesota Statutes 1996, section 124A.036, 
 18.3   subdivision 6, is amended to read: 
 18.4      Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 18.5   for districts must be adjusted for each pupil attending a 
 18.6   charter school under section 120.064.  The adjustments must be 
 18.7   made according to this subdivision. 
 18.8      (b) General education aid paid to a resident district must 
 18.9   be reduced by an amount equal to the general education revenue 
 18.10  exclusive of compensatory basic skills revenue. 
 18.11     (c) General education aid paid to a district in which a 
 18.12  charter school not providing transportation according to section 
 18.13  120.064, subdivision 15, is located shall be increased by an 
 18.14  amount equal to the product of:  (1) the sum of $170 an amount 
 18.15  equal to the product of the formula allowance according to 
 18.16  section 124A.22, subdivision 2, times .0485, plus the 
 18.17  transportation sparsity allowance for the district, plus the 
 18.18  transportation transition allowance for the district; times (2) 
 18.19  the pupil units attributable to the pupil.  
 18.20     (d) If the amount of the reduction to be made from the 
 18.21  general education aid of the resident district is greater than 
 18.22  the amount of general education aid otherwise due the district, 
 18.23  the excess reduction must be made from other state aids due the 
 18.24  district. 
 18.25     Sec. 26.  Minnesota Statutes 1996, section 124A.22, is 
 18.26  amended by adding a subdivision to read: 
 18.27     Subd. 2b.  [WAIVER.] A district receiving less than an 
 18.28  inflationary increase as determined by the Consumer Price Index, 
 18.29  in revenue per pupil in average daily membership, excluding 
 18.30  capital bond proceeds, in the current biennium over the previous 
 18.31  biennium is exempt from compliance with state statutes and rules 
 18.32  applicable to schools and school districts until the district 
 18.33  receives an increase in revenue per pupil in average daily 
 18.34  membership equal to or greater than the rate of inflation.  An 
 18.35  exempted school district must comply with the requirements for 
 18.36  charter schools in section 120.064, subdivisions 8 and 10.  An 
 19.1   exempted district must comply with chapter 179A, and sections 
 19.2   125.12 and 125.17. 
 19.3      Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 19.4   124A.22, subdivision 2, is amended to read: 
 19.5      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 19.6   district equals the formula allowance times the actual pupil 
 19.7   units for the school year.  The formula allowance for fiscal 
 19.8   year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 19.9   is $3,581 and the formula allowance for fiscal year 1999 and 
 19.10  subsequent fiscal years is $3,530.  The formula allowance for 
 19.11  fiscal year 2000 and subsequent fiscal years is $3,597. 
 19.12     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 19.13  124A.22, subdivision 13b, is amended to read: 
 19.14     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 19.15  transportation transition allowance for fiscal year 1998 and 
 19.16  later equals the result of the following: 
 19.17     (1) if the result in subdivision 13a, paragraph (a), clause 
 19.18  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 19.19  base allowance, the transportation transition allowance equals 
 19.20  the fiscal year 1996 base allowance minus the result in 
 19.21  subdivision 13a, paragraph (a), clause (iii); or 
 19.22     (2) if the result in subdivision 13a, paragraph (a), clause 
 19.23  (iii), for fiscal year 1998 and later is greater than or equal 
 19.24  to the fiscal year 1996 base allowance, the transportation 
 19.25  transition allowance equals zero. 
 19.26     (b) For fiscal years 1997 and 1998, a district's training 
 19.27  and experience transition allowance is equal to the training and 
 19.28  experience revenue the district would have received under 
 19.29  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 19.30  by the actual pupil units for fiscal year 1997 minus $130.  For 
 19.31  fiscal year 1999 and later, a district's training and experience 
 19.32  transition allowance equals zero.  
 19.33     If the training and experience transition allowance is less 
 19.34  than zero, the reduction shall be determined according to the 
 19.35  following schedule: 
 19.36     (1) for fiscal year 1997, the reduction is equal to .9 
 20.1   times the amount initially determined; 
 20.2      (2) for fiscal year 1998, the reduction is equal to .75 
 20.3   times the amount initially determined; and 
 20.4      (c) A district's transition compensatory transition 
 20.5   allowance equals the greater of zero or the difference between:  
 20.6      (1) the amount of compensatory revenue the district would 
 20.7   have received under subdivision 3 for fiscal year 1998 computed 
 20.8   using a basic formula allowance of $3,281; and 
 20.9      (2) the amount the district receives under subdivision 3; 
 20.10  divided by 
 20.11     (3) the district's actual pupil units for fiscal year 1998. 
 20.12     (c) A district's cooperation transition allowance for 
 20.13  fiscal year 2000 and later equals the greater of zero or the 
 20.14  difference between:  
 20.15     (1) $25,000; and 
 20.16     (2) $67 times the district's actual pupil units for fiscal 
 20.17  year 2000. 
 20.18     (d) A district's transition allowance for fiscal year 1998 
 20.19  is equal to the sum of its transportation transition allowance, 
 20.20  its training and experience transition allowance, and its 
 20.21  transition compensatory allowance.  A district's transition 
 20.22  allowance for fiscal year 1999 and thereafter is equal to the 
 20.23  sum of its transportation transition allowance and its 
 20.24  transition compensatory transition allowance.  A district's 
 20.25  transition allowance for fiscal year 2000 and thereafter is 
 20.26  equal to the sum of its transportation transition allowance, its 
 20.27  compensatory transition allowance, and its cooperation 
 20.28  transition allowance. 
 20.29     Sec. 29.  [124A.226] [RESERVED REVENUE FOR DISTRICT 
 20.30  COOPERATION.] 
 20.31     A district that was a member of an intermediate school 
 20.32  district organized pursuant to chapter 136D on July 1, 1996, 
 20.33  must place a portion of its general education revenue in a 
 20.34  reserved account for instructional services from entities formed 
 20.35  for cooperative services for special education programs and 
 20.36  secondary vocational programs.  The amount reserved is equal to 
 21.1   the levy made according to Minnesota Statutes 1993, section 
 21.2   124.2727, subdivision 6, for taxes payable in 1994 divided by 
 21.3   the actual pupil units in the intermediate school district for 
 21.4   fiscal year 1995 times the number of actual pupil units in the 
 21.5   school district in 1995.  The district must use 5/11 of the 
 21.6   revenue for special education and 6/11 of the revenue for 
 21.7   secondary vocational education.  The district must demonstrate 
 21.8   that the revenue is being used to provide the full range of 
 21.9   special education and secondary vocational programs and services 
 21.10  available to each child served by the intermediate.  The 
 21.11  secondary vocational programs and services must meet the 
 21.12  requirements established in an articulation agreement developed 
 21.13  between the state board of education and the board of trustees 
 21.14  of the Minnesota state colleges and universities. 
 21.15     A district that was a member of an education district 
 21.16  organized pursuant to section 122.91 on July 1, 1999, must place 
 21.17  a portion of its general education revenue in a reserve account 
 21.18  for instructional services from entities formed for cooperative 
 21.19  services.  Services may include secondary vocational programs, 
 21.20  special education programs, staff development, and gifted and 
 21.21  talented instruction.  The amount reserved is equal to $50 per 
 21.22  pupil unit times the actual number of pupil units in the 
 21.23  district. 
 21.24     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
 21.25  124A.23, subdivision 1, is amended to read: 
 21.26     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 21.27  commissioner shall establish the general education tax rate by 
 21.28  July 1 of each year for levies payable in the following year.  
 21.29  The general education tax capacity rate shall be a rate, rounded 
 21.30  up to the nearest hundredth of a percent, that, when applied to 
 21.31  the adjusted net tax capacity for all districts, raises the 
 21.32  amount specified in this subdivision.  The general education tax 
 21.33  rate shall be the rate that raises $1,359,000,000 for fiscal 
 21.34  year 1998 and $1,385,500,000 for fiscal year 1999 
 21.35  and $1,331,200,000 for fiscal year 2000 and later fiscal years.  
 21.36  The general education tax rate may not be changed due to changes 
 22.1   or corrections made to a district's adjusted net tax capacity 
 22.2   after the tax rate has been established.  If the levy target for 
 22.3   fiscal year 1999 2000 is changed by another law enacted during 
 22.4   the 1997 1998 session, the commissioner shall reduce the target 
 22.5   in this bill by the amount of the reduction in the enacted law. 
 22.6      Sec. 31.  Minnesota Statutes 1996, section 124A.292, 
 22.7   subdivision 3, is amended to read: 
 22.8      Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
 22.9   equals its revenue times the lesser of one or the ratio of: 
 22.10     (1) the quotient derived by dividing the district's 
 22.11  adjusted net tax capacity for the year before the year the levy 
 22.12  is certified by the district's actual pupil units for the school 
 22.13  year to which the levy is attributable, to 
 22.14     (2) the equalizing factor for the school year to which the 
 22.15  levy is attributable the number of teachers at the site times 
 22.16  $8.15. 
 22.17     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 22.18  124A.28, subdivision 1, is amended to read: 
 22.19     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 22.20  education revenue under section 124A.22, subdivision 3, and the 
 22.21  portion of the transition revenue adjustment under section 
 22.22  124A.22, subdivision 13c, attributable to the compensatory 
 22.23  transition allowance under section 124A.22, subdivision 13b, 
 22.24  paragraph (b), must be used to meet the educational needs of 
 22.25  pupils who enroll under-prepared to learn and whose progress 
 22.26  toward meeting state or local content or performance standards 
 22.27  is below the level that is appropriate for learners of their 
 22.28  age.  Any of the following may be provided to meet these 
 22.29  learners' needs: 
 22.30     (1) direct instructional services under the assurance of 
 22.31  mastery program according to section 124.3111; 
 22.32     (2) remedial instruction in reading, language arts, 
 22.33  mathematics, other content areas, or study skills to improve the 
 22.34  achievement level of these learners; 
 22.35     (3) additional teachers and teacher aides to provide more 
 22.36  individualized instruction to these learners through individual 
 23.1   tutoring, lower instructor-to-learner ratios, or team teaching; 
 23.2      (4) a longer school day or week during the regular school 
 23.3   year or through a summer program that may be offered directly by 
 23.4   the site or under a performance-based contract with a 
 23.5   community-based organization; 
 23.6      (5) comprehensive and ongoing staff development consistent 
 23.7   with district and site plans according to section 126.70, for 
 23.8   teachers, teacher aides, principals, and other personnel to 
 23.9   improve their ability to identify the needs of these learners 
 23.10  and provide appropriate remediation, intervention, 
 23.11  accommodations, or modifications; 
 23.12     (6) instructional materials and technology appropriate for 
 23.13  meeting the individual needs of these learners; 
 23.14     (7) programs to reduce truancy, encourage completion of 
 23.15  high school, enhance self-concept, provide health services, 
 23.16  provide nutrition services, provide a safe and secure learning 
 23.17  environment, provide coordination for pupils receiving services 
 23.18  from other governmental agencies, provide psychological services 
 23.19  to determine the level of social, emotional, cognitive, and 
 23.20  intellectual development, and provide counseling services, 
 23.21  guidance services, and social work services; 
 23.22     (8) bilingual programs, bicultural programs, and programs 
 23.23  for learners of limited English proficiency; 
 23.24     (9) all day kindergarten; 
 23.25     (10) extended school day and extended school year programs; 
 23.26     (11) substantial parent involvement in developing and 
 23.27  implementing remedial education or intervention plans for a 
 23.28  learner, including learning contracts between the school, the 
 23.29  learner, and the parent that establish achievement goals and 
 23.30  responsibilities of the learner and the learner's parent or 
 23.31  guardian; and 
 23.32     (12) other methods to increase achievement, as needed.  
 23.33     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 23.34  124A.28, subdivision 1a, is amended to read: 
 23.35     Subd. 1a.  [BUILDING ALLOCATION.] A district must allocate 
 23.36  revenue to each school building in the district where the 
 24.1   children who have generated the revenue are served.  For the 
 24.2   purposes of this section and section 124.17, subdivision 1d, 
 24.3   "building" means education site as defined in section 123.951, 
 24.4   subdivision 1. 
 24.5      If the pupil is served at a site other than one owned and 
 24.6   operated by the district, the revenue shall be paid to the 
 24.7   district and used for services for pupils who generate the 
 24.8   revenue. 
 24.9      Sec. 34.  Minnesota Statutes 1996, section 124A.30, is 
 24.10  amended to read: 
 24.11     124A.30 [STATEWIDE AVERAGE REVENUE.] 
 24.12     By October 1 of each year the commissioner shall estimate 
 24.13  the statewide average adjusted general education revenue per 
 24.14  actual pupil unit and the range disparity in adjusted general 
 24.15  education revenue among pupils and districts by computing the 
 24.16  difference between the fifth and the ratio of the ninety-fifth 
 24.17  percentiles percentile to the fifth percentile of adjusted 
 24.18  general education revenue.  The commissioner must provide that 
 24.19  information to all school districts. 
 24.20     If the disparity in adjusted general education revenue as 
 24.21  measured by the difference between the fifth and ratio of the 
 24.22  ninety-fifth percentiles percentile to the fifth percentile 
 24.23  increases in any year, the commissioner must propose a shall 
 24.24  recommend to the legislature options for change in the general 
 24.25  education formula that will limit the disparity in adjusted 
 24.26  general education revenue to no more than the disparity for the 
 24.27  previous school year.  The commissioner must submit the proposal 
 24.28  recommended options to the education committees of the 
 24.29  legislature by January 15. 
 24.30     For purposes of this section, adjusted general revenue 
 24.31  means the sum of basic revenue under section 124A.22, 
 24.32  subdivision 2; supplemental revenue under section 124A.22, 
 24.33  subdivisions 8 and 9; transition revenue under section 124.22, 
 24.34  subdivision 13c; and referendum revenue under section 124A.03. 
 24.35     Sec. 35.  Laws 1997, First Special Session chapter 4, 
 24.36  article 1, section 61, subdivision 3, is amended to read: 
 25.1      Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 25.2   adjust each equalizing factor established using adjusted net tax 
 25.3   capacity per actual pupil unit under Minnesota Statutes, 
 25.4   chapters 124 and 124A, by dividing the equalizing factor by the 
 25.5   ratio of the statewide tax capacity as calculated using the 
 25.6   class rates in effect for assessment year 1996 to the statewide 
 25.7   tax capacity using the class rates for that assessment year. 
 25.8      Sec. 36.  Laws 1992, chapter 499, article 7, section 31, is 
 25.9   amended to read: 
 25.10     Sec. 31.  [REPEALER.] 
 25.11     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 25.12  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 25.13  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 25.14  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 25.15  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 25.16  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 25.17  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 25.18  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 25.19  1999 2000; Laws 1991, chapter 265, article 7, section 35, is 
 25.20  repealed. 
 25.21     Sec. 37.  [BUS LEVY.] 
 25.22     Subdivision 1.  [MAHTOMEDI.] In addition to other levies, 
 25.23  independent school district No. 832, Mahtomedi, a district that 
 25.24  was in statutory operating debt, according to Minnesota 
 25.25  Statutes, section 121.914, subdivisions 1 and 2, may levy an 
 25.26  amount up to $110,000 for the purchase of four type III school 
 25.27  buses.  This amount may be levied over a period of three years. 
 25.28     Subd. 2.  [KASSON-MANTORVILLE.] In addition to other 
 25.29  levies, independent school district No. 204, Kasson-Mantorville, 
 25.30  may levy an amount up to $157,100 for the deficit that occurred 
 25.31  in the capital equipment fund when a prior bus purchase was 
 25.32  delayed and paid for after June 30, 1996. 
 25.33     Sec. 38.  [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 
 25.34     Notwithstanding Minnesota Statutes, section 124.17, 
 25.35  subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 
 25.36  only, compensation revenue pupil units for buildings with no 
 26.1   free or reduced price lunch counts for fiscal year 1997 because 
 26.2   the site did not participate in the national school lunch 
 26.3   program, or for a contracted alternative program for which no 
 26.4   count was reported to the department of children, families, and 
 26.5   learning, shall be computed using data for the current fiscal 
 26.6   year. 
 26.7      Sec. 39.  [DEFERRED MAINTENANCE PROJECTS.] 
 26.8      By June 30, 1999, a school district, upon formal board 
 26.9   resolution and commissioner of children, families, and learning 
 26.10  approval, may levy for over a five-year period, or issue general 
 26.11  obligation bonds under this section to finance an amount equal 
 26.12  to the combined costs of approved maintenance projects, minus 
 26.13  $200,000.  The total amount financed under this section may not 
 26.14  exceed $60 per resident pupil unit for the year the bonds are 
 26.15  issued or the levy is approved.  Districts may only finance, 
 26.16  under this section, costs related to an approved facility plan 
 26.17  under Minnesota Statutes, section 124.239, subdivision 2.  
 26.18  Districts must comply with Minnesota Statutes, chapter 475, 
 26.19  except Minnesota Statutes, sections 475.58 and 475.59.  The 
 26.20  authority to issue bonds under this section is in addition to 
 26.21  any bonding authority authorized by law.  The bonds must be 
 26.22  payable in not more than five years.  A tax levy must be made 
 26.23  for the payment of the principal and interest on the bonds, in 
 26.24  accordance with Minnesota Statutes, section 475.61.  Districts 
 26.25  must submit projects to the commissioner for review by September 
 26.26  30, 1998.  Projects financed under this section are not eligible 
 26.27  for facilities equalization revenue under Minnesota Statutes, 
 26.28  section 124.95. 
 26.29     Sec. 40.  [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR 
 26.30  TRANSITION.] 
 26.31     For fiscal year 1999 only, the supplemental compensatory 
 26.32  revenue for each school district equals:  the sum of the number 
 26.33  of pupils enrolled in the district eligible to receive free 
 26.34  lunch plus one-half of the pupils eligible to receive reduced 
 26.35  price lunch on October 1, 1997, times $10.  Revenue under this 
 26.36  section is allocated to school districts, and must be used 
 27.1   according to Minnesota Statutes, section 124A.28, subdivision 1. 
 27.2      Sec. 41.  [ELMORE LEVY ADJUSTMENT.] 
 27.3      For property taxes payable in 1999 only, the levy for 
 27.4   independent school district No. 2860, Blue Earth area, must be 
 27.5   reduced by an amount equal to the amount levied by independent 
 27.6   school district No. 219, Elmore, according to Laws 1996, chapter 
 27.7   412, article 5, section 18, subdivision 2, for taxes payable in 
 27.8   1997.  The levy reduction must be applied against all taxable 
 27.9   property in preexisting independent school district No. 219, 
 27.10  Elmore, only. 
 27.11     Sec. 42.  [FISCAL YEAR 1999 REFERENDUM REVENUE AID AND LEVY 
 27.12  CALCULATIONS.] 
 27.13     For fiscal year 1999 only, the increase in referendum 
 27.14  revenue under section 24 must be paid by the department of 
 27.15  children, families, and learning as state aid.  The referendum 
 27.16  levy for fiscal year 1999 shall be computed according to the 
 27.17  referendum allowance reduction under Minnesota Statutes 1996, 
 27.18  section 124A.03, subdivision 3c. 
 27.19     Sec. 43.  [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 
 27.20  COUNTY CENTRAL; REFERENDUM AUTHORITY.] 
 27.21     Subdivision 1.  [REFERENDUM REVENUE ADJUSTMENT.] 
 27.22  Notwithstanding Minnesota Statutes, section 124A.03, referendum 
 27.23  equalization aid for fiscal year 1998 for independent school 
 27.24  district No. 2862, Jackson County Central, is $72,000, and the 
 27.25  district's net tax capacity referendum levy is $61,000. 
 27.26     Subd. 2.  [AID ADJUSTMENT.] The department of children, 
 27.27  families, and learning shall adjust the aid payments for fiscal 
 27.28  year 1999 to independent school district No. 2862, Jackson 
 27.29  County Central, according to subdivision 1. 
 27.30     Subd. 3.  [LEVY ADJUSTMENT.] For taxes payable in 1999, the 
 27.31  department of children, families, and learning shall make a levy 
 27.32  adjustment for the independent school district No. 2862, Jackson 
 27.33  County Central, referendum levy authority for fiscal year 1998 
 27.34  according to subdivision 1. 
 27.35     Sec. 44.  [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.] 
 27.36     For the purpose of calculating debt service equalization, 
 28.1   donations for capital improvements received before December 31, 
 28.2   2000, to independent school district No. 300, La Crescent-Hokah, 
 28.3   must be considered as part of the percentage that is required to 
 28.4   be raised locally under Minnesota Statutes, section 124.95, 
 28.5   subdivision 3. 
 28.6      Sec. 45. [APPROPRIATIONS.] 
 28.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 28.8   LEARNING.] The sums indicated in this section are appropriated 
 28.9   from the general fund to the department of children, families, 
 28.10  and learning for the fiscal years designated. 
 28.11     Subd. 2.  [SHIFT ELIMINATED.] For additional general 
 28.12  education aid for eliminating the property tax recognition shift 
 28.13  under this article: 
 28.14       $90,100,000    .....    1999 
 28.15     Notwithstanding the provisions of Minnesota Statutes, 
 28.16  section 124.195, the commissioner of children, families, and 
 28.17  learning shall pay the fiscal year 1999 appropriation on June 
 28.18  20, 1999.  
 28.19     Subd. 3.  [DISTRICT-LEVEL COMPENSATORY REVENUE.] For 
 28.20  one-time additional district level compensatory revenue:  
 28.21       $1,916,000     .....     1999
 28.22     Sec. 46.  [REPEALER.] 
 28.23     (a) Minnesota Statutes 1997 Supplement, section 124.912, 
 28.24  subdivisions 2 and 3, are repealed effective for taxes payable 
 28.25  in 1998. 
 28.26     (b) Minnesota Statutes 1996, sections 121.904, subdivision 
 28.27  4c; and 124.2601, subdivision 4; Minnesota Statutes 1997 
 28.28  Supplement, section 124.155, subdivisions 1 and 2, are repealed. 
 28.29     (c) Minnesota Statutes 1997 Supplement, section 124.2601, 
 28.30  subdivision 5, is repealed effective July 1, 1999.  
 28.31     (d) Minnesota Statutes 1996, section 124.2713, subdivision 
 28.32  6b, is repealed effective for taxes payable in 1999 and revenue 
 28.33  for fiscal year 2000.  
 28.34     (e) Minnesota Statutes 1996, section 124.2727, subdivision 
 28.35  6b, is repealed effective for taxes payable in 1999.  
 28.36     (f) Minnesota Statutes 1996, section 124A.292, subdivisions 
 29.1   2 and 4, are repealed effective for revenue for fiscal year 2000.
 29.2      (g) Laws 1997, chapter 231, article 1, section 17, is 
 29.3   repealed effective the day following final enactment. 
 29.4      Sec. 47.  [EFFECTIVE DATES.] 
 29.5      Section 3 is effective July 1, 1999.  Section 6 is 
 29.6   effective July 1, 1997, for revenue for fiscal year 1999 
 29.7   relating to free and reduced lunch prices.  Sections 4, 7, 8, 
 29.8   11, 12, and 34 are effective for revenue for fiscal year 1998.  
 29.9   Section 35 is effective for taxes payable in 1998.  Section 13 
 29.10  is effective July 1, 1999.  Section 20 is effective 
 29.11  retroactively for revenue for fiscal year 1997.  Sections 17 and 
 29.12  29 are effective for revenue for fiscal year 2000. 
 29.13                             ARTICLE 2
 29.14                         SPECIAL EDUCATION
 29.15     Section 1.  Minnesota Statutes 1996, section 120.03, 
 29.16  subdivision 1, is amended to read: 
 29.17     Subdivision 1.  Every child who has a hearing impairment, 
 29.18  visual disability, speech or language impairment, physical 
 29.19  handicap, other health impairment, mental handicap, 
 29.20  emotional/behavioral disorder, specific learning 
 29.21  disability, autism, traumatic brain injury, multiple 
 29.22  disabilities, or deaf/blind disability and needs special 
 29.23  instruction and services, as determined by the standards of the 
 29.24  state board, is a child with a disability.  In addition, every 
 29.25  child under age five three, and at local district discretion 
 29.26  from age three to age seven, who needs special instruction and 
 29.27  services, as determined by the standards of the state board, 
 29.28  because the child has a substantial delay or has an identifiable 
 29.29  physical or mental condition known to hinder normal development 
 29.30  is a child with a disability. 
 29.31     Sec. 2.  [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 
 29.32  MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 
 29.33     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 29.34  cooperative unit has the meaning given in section 123.35, 
 29.35  subdivision 19b, paragraph (d). 
 29.36     Subd. 2.  [STATEWIDE DATA MANAGEMENT SYSTEM.] The 
 30.1   commissioner of children, families, and learning, in cooperation 
 30.2   with the commissioner of human services, shall develop a 
 30.3   statewide data management system using the educational data 
 30.4   reporting system or other existing data management system for 
 30.5   school districts and cooperative units to use to maximize 
 30.6   medical assistance reimbursement for health and health-related 
 30.7   services provided under individual education plans and 
 30.8   individual family service plans.  The system must be 
 30.9   appropriately integrated with state and local existing and 
 30.10  developing human services and education data systems.  The 
 30.11  statewide data management system must enable school district and 
 30.12  cooperative unit staff to: 
 30.13     (1) establish medical assistance billing systems or improve 
 30.14  existing systems; 
 30.15     (2) understand the appropriate medical assistance billing 
 30.16  codes for services provided under individual education plans and 
 30.17  individual family service plans; 
 30.18     (3) comply with the Individuals with Disabilities Education 
 30.19  Act, Public Law Number 105-17; 
 30.20     (4) contract with billing agents; and 
 30.21     (5) carry out other activities necessary to maximize 
 30.22  medical assistance reimbursement. 
 30.23     Subd. 3.  [IMPLEMENTATION.] Consistent with Minnesota 
 30.24  Statutes 256B.0625, subdivision 26, school districts may enroll 
 30.25  as medical assistance providers or subcontractors and bill the 
 30.26  department of human services under the medical assistance fee 
 30.27  for service claims processing system for special education 
 30.28  services which are covered services under chapter 256B, which 
 30.29  are provided in the school setting for a medical assistance 
 30.30  recipient, and for whom the district has secured informed 
 30.31  consent consistent with section 13.05, subdivision 4, paragraph 
 30.32  (d), and section 256B.77, subdivision 2, paragraph (p), to bill 
 30.33  for each type of covered service.  A school district is not 
 30.34  eligible to enroll as a home care provider or a personal care 
 30.35  provider organization for purposes of billing home care services 
 30.36  under section 256B.0627 until the commissioner of human services 
 31.1   issues a bulletin instructing county public health nurses on how 
 31.2   to assess for the needs of eligible recipients during school 
 31.3   hours.  Medical assistance services for those enrolled in a 
 31.4   prepaid health plan shall remain the responsibility of the 
 31.5   contracted health plan subject to their network, credentialing, 
 31.6   prior authorization, and determination of medical necessity 
 31.7   criteria.  The commissioner of human services shall adjust 
 31.8   payments to health plans to reflect increased costs incurred by 
 31.9   health plans due to increased payments made to school districts 
 31.10  or new payment or delivery arrangements developed by health 
 31.11  plans in cooperation with school districts. 
 31.12     Sec. 3.  Minnesota Statutes 1996, section 120.06, 
 31.13  subdivision 2a, is amended to read: 
 31.14     Subd. 2a.  [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 
 31.15  Notwithstanding subdivision 1, a school district must not deny 
 31.16  free admission to a homeless person of school age solely because 
 31.17  the school district cannot determine that the person is a 
 31.18  resident of the school district.  
 31.19     (b) The school district of residence for a homeless person 
 31.20  of school age shall be the school district in which the homeless 
 31.21  shelter or other program, center, or facility assisting the 
 31.22  homeless person is located.  The educational services a school 
 31.23  district provides to a homeless person must allow the person to 
 31.24  meet the graduation standards under section 121.11, subdivision 
 31.25  7c. 
 31.26     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
 31.27  subdivision 5, is amended to read: 
 31.28     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 31.29  charter school shall be in the form of a written contract signed 
 31.30  by the sponsor and the board of directors of the charter 
 31.31  school.  The contract for a charter school shall be in writing 
 31.32  and contain at least the following: 
 31.33     (1) a description of a program that carries out one or more 
 31.34  of the purposes in subdivision 1; 
 31.35     (2) specific outcomes pupils are to achieve under 
 31.36  subdivision 10; 
 32.1      (3) admission policies and procedures; 
 32.2      (4) management and administration of the school; 
 32.3      (5) requirements and procedures for program and financial 
 32.4   audits; 
 32.5      (6) how the school will comply with subdivisions 8, 13, 15, 
 32.6   and 21; 
 32.7      (7) assumption of liability by the charter school; 
 32.8      (8) types and amounts of insurance coverage to be obtained 
 32.9   by the charter school; and 
 32.10     (9) the term of the contract, which may be up to three 
 32.11  years; and 
 32.12     (10) if the board of directors or the operators of the 
 32.13  charter school provide special instruction and services for 
 32.14  children with a disability under section 120.17, a description 
 32.15  of the financial parameters within which the charter school will 
 32.16  operate to provide the special instruction and services to 
 32.17  children with a disability. 
 32.18     Sec. 5.  Minnesota Statutes 1996, section 120.101, 
 32.19  subdivision 3, is amended to read: 
 32.20     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
 32.21  sections 120.101 to 120.103, "parent" means a parent, guardian, 
 32.22  or other person having legal custody of a child.  
 32.23     (b) In section 120.17, "parent" means a parent, guardian, 
 32.24  or other person having legal custody of a child under age 18.  
 32.25  For an unmarried pupil age 18 or over, "parent" means the pupil 
 32.26  unless a guardian or conservator has been appointed, in which 
 32.27  case it means the guardian or conservator. 
 32.28     (c) For purposes of section 120.17, the school district of 
 32.29  residence for an unmarried pupil age 18 or over who is a parent 
 32.30  under paragraph (b) and who is placed in a center for care and 
 32.31  treatment, shall be the school district in which the pupil's 
 32.32  biological or adoptive parent or designated guardian resides. 
 32.33     (d) For a married pupil age 18 or over, the school district 
 32.34  of residence is the school district in which the married pupil 
 32.35  resides. 
 32.36     Sec. 6.  Minnesota Statutes 1996, section 120.17, 
 33.1   subdivision 1, is amended to read: 
 33.2      Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 33.3   DISABILITY.] (a) As defined in paragraph (b), to the extent 
 33.4   required in federal law as of July 1, 1999, every district shall 
 33.5   provide special instruction and services, either within the 
 33.6   district or in another district, for children with a disability 
 33.7   who are residents of the district and who are disabled as set 
 33.8   forth in section 120.03.  
 33.9      (b) Notwithstanding any age limits in laws to the contrary, 
 33.10  special instruction and services must be provided from birth 
 33.11  until September 1 after the child with a disability becomes 22 
 33.12  years old but shall not extend beyond secondary school or its 
 33.13  equivalent, except as provided in section 126.22, subdivision 
 33.14  2.  Local health, education, and social service agencies shall 
 33.15  refer children under age five who are known to need or suspected 
 33.16  of needing special instruction and services to the school 
 33.17  district.  Districts with less than the minimum number of 
 33.18  eligible children with a disability as determined by the state 
 33.19  board shall cooperate with other districts to maintain a full 
 33.20  range of programs for education and services for children with a 
 33.21  disability.  This subdivision does not alter the compulsory 
 33.22  attendance requirements of section 120.101. 
 33.23     Sec. 7.  Minnesota Statutes 1996, section 120.17, 
 33.24  subdivision 2, is amended to read: 
 33.25     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 
 33.26  in this subdivision, to the extent required by federal law as of 
 33.27  July 1, 1999, special instruction and services for children with 
 33.28  a disability must be based on the assessment and individual 
 33.29  education plan.  The instruction and services may be provided by 
 33.30  one or more of the following methods: 
 33.31     (1) in connection with attending regular elementary and 
 33.32  secondary school classes; 
 33.33     (2) establishment of special classes; 
 33.34     (3) at the home or bedside of the child; 
 33.35     (4) in other districts; 
 33.36     (5) instruction and services by special education 
 34.1   cooperative centers established under this section, or in 
 34.2   another member district of the cooperative center to which the 
 34.3   resident district of the child with a disability belongs; 
 34.4      (6) in a state residential school or a school department of 
 34.5   a state institution approved by the commissioner; 
 34.6      (7) in other states; 
 34.7      (8) by contracting with public, private or voluntary 
 34.8   agencies; 
 34.9      (9) for children under age five and their families, 
 34.10  programs and services established through collaborative efforts 
 34.11  with other agencies; 
 34.12     (10) for children under age five and their families, 
 34.13  programs in which children with a disability are served with 
 34.14  children without a disability; and 
 34.15     (11) any other method approved by the commissioner. 
 34.16     (b) Preference shall be given to providing special 
 34.17  instruction and services to children under age three and their 
 34.18  families in the residence of the child with the parent or 
 34.19  primary caregiver, or both, present. 
 34.20     (c) The primary responsibility for the education of a child 
 34.21  with a disability shall remain with the district of the child's 
 34.22  residence regardless of which method of providing special 
 34.23  instruction and services is used.  If a district other than a 
 34.24  child's district of residence provides special instruction and 
 34.25  services to the child, then the district providing the special 
 34.26  instruction and services shall notify the child's district of 
 34.27  residence before the child's individual education plan is 
 34.28  developed and shall provide the district of residence an 
 34.29  opportunity to participate in the plan's development.  The 
 34.30  district of residence must inform the parents of the child about 
 34.31  the methods of instruction that are available. 
 34.32     (d) Paragraphs (e) to (i) may be cited as the "blind 
 34.33  persons' literacy rights and education act." 
 34.34     (e) The following definitions apply to paragraphs (f) to 
 34.35  (i). 
 34.36     "Blind student" means an individual who is eligible for 
 35.1   special educational services and who: 
 35.2      (1) has a visual acuity of 20/200 or less in the better eye 
 35.3   with correcting lenses or has a limited field of vision such 
 35.4   that the widest diameter subtends an angular distance of no 
 35.5   greater than 20 degrees; or 
 35.6      (2) has a medically indicated expectation of visual 
 35.7   deterioration. 
 35.8      "Braille" means the system of reading and writing through 
 35.9   touch commonly known as standard English Braille.  
 35.10     "Individualized education plan" means a written statement 
 35.11  developed for a student eligible for special education and 
 35.12  services pursuant to this section and section 602(a)(20) of part 
 35.13  A of the Individuals with Disabilities Education Act, United 
 35.14  States Code, title 20, section 1401(a). 
 35.15     (f) In developing an individualized education plan for each 
 35.16  blind student the presumption must be that proficiency in 
 35.17  Braille reading and writing is essential for the student to 
 35.18  achieve satisfactory educational progress.  The assessment 
 35.19  required for each student must include a Braille skills 
 35.20  inventory, including a statement of strengths and deficits.  
 35.21  Braille instruction and use are not required by this paragraph 
 35.22  if, in the course of developing the student's individualized 
 35.23  education program, team members concur that the student's visual 
 35.24  impairment does not affect reading and writing performance 
 35.25  commensurate with ability.  This paragraph does not require the 
 35.26  exclusive use of Braille if other special education services are 
 35.27  appropriate to the student's educational needs.  The provision 
 35.28  of other appropriate services does not preclude Braille use or 
 35.29  instruction.  Instruction in Braille reading and writing shall 
 35.30  be available for each blind student for whom the 
 35.31  multidisciplinary team has determined that reading and writing 
 35.32  is appropriate. 
 35.33     (g) Instruction in Braille reading and writing must be 
 35.34  sufficient to enable each blind student to communicate 
 35.35  effectively and efficiently with the same level of proficiency 
 35.36  expected of the student's peers of comparable ability and grade 
 36.1   level.  
 36.2      (h) The student's individualized education plan must 
 36.3   specify: 
 36.4      (1) the results obtained from the assessment required under 
 36.5   paragraph (f); 
 36.6      (2) how Braille will be implemented through integration 
 36.7   with other classroom activities; 
 36.8      (3) the date on which Braille instruction will begin; 
 36.9      (4) the length of the period of instruction and the 
 36.10  frequency and duration of each instructional session; 
 36.11     (5) the level of competency in Braille reading and writing 
 36.12  to be achieved by the end of the period and the objective 
 36.13  assessment measures to be used; and 
 36.14     (6) if a decision has been made under paragraph (f) that 
 36.15  Braille instruction or use is not required for the student:  
 36.16     (i) a statement that the decision was reached after a 
 36.17  review of pertinent literature describing the educational 
 36.18  benefits of Braille instruction and use; and 
 36.19     (ii) a specification of the evidence used to determine that 
 36.20  the student's ability to read and write effectively without 
 36.21  Braille is not impaired. 
 36.22     (i) Instruction in Braille reading and writing is a service 
 36.23  for the purpose of special education and services under this 
 36.24  section. 
 36.25     (j) Paragraphs (e) to (i) shall not be construed to 
 36.26  supersede any rights of a parent or guardian of a child with a 
 36.27  disability under federal or state law. 
 36.28     Sec. 8.  Minnesota Statutes 1996, section 120.17, 
 36.29  subdivision 3, is amended to read: 
 36.30     Subd. 3.  [RULES OF THE STATE BOARD.] (a) As defined in 
 36.31  this paragraph, but not to exceed the extent required by federal 
 36.32  law as of July 1, 1999, the state board shall promulgate rules 
 36.33  relative to qualifications of essential personnel, courses of 
 36.34  study, methods of instruction, pupil eligibility, size of 
 36.35  classes, rooms, equipment, supervision, parent consultation, and 
 36.36  any other rules it deems necessary rules for instruction of 
 37.1   children with a disability.  These rules shall provide standards 
 37.2   and procedures appropriate for the implementation of and within 
 37.3   the limitations of subdivisions 3a and 3b.  These rules shall 
 37.4   also provide standards for the discipline, control, management 
 37.5   and protection of children with a disability.  The state board 
 37.6   shall not adopt rules for pupils served in level 1, 2, or 3, as 
 37.7   defined in Minnesota Rules, part 3525.2340, primarily in the 
 37.8   regular classroom establishing either case loads or the maximum 
 37.9   number of pupils that may be assigned to special education 
 37.10  teachers.  The state board, in consultation with the departments 
 37.11  of health and human services, shall adopt permanent rules for 
 37.12  instruction and services for children under age five and their 
 37.13  families.  These rules are binding on state and local education, 
 37.14  health, and human services agencies.  The state board shall 
 37.15  adopt rules to determine eligibility for special education 
 37.16  services.  The rules shall include procedures and standards by 
 37.17  which to grant variances for experimental eligibility criteria.  
 37.18  The state board shall, according to section 14.05, subdivision 
 37.19  4, notify a district applying for a variance from the rules 
 37.20  within 45 calendar days of receiving the request whether the 
 37.21  request for the variance has been granted or denied.  If a 
 37.22  request is denied, the board shall specify the program standards 
 37.23  used to evaluate the request and the reasons for denying the 
 37.24  request.  
 37.25     (b) As provided in this paragraph, but not to exceed the 
 37.26  extent required by federal law as of July 1, 1999, the state's 
 37.27  regulatory scheme should support schools by assuring that all 
 37.28  state special education rules adopted by the state board of 
 37.29  education result in one or more of the following outcomes: 
 37.30     (1) increased time available to teachers and, where 
 37.31  appropriate, to support staff including school nurses for 
 37.32  educating students through direct and indirect instruction; 
 37.33     (2) consistent and uniform access to effective education 
 37.34  programs for students with disabilities throughout the state; 
 37.35     (3) reduced inequalities, and conflict, appropriate due 
 37.36  process hearing procedures, and reduced court actions related to 
 38.1   the delivery of special education instruction and services for 
 38.2   students with disabilities; 
 38.3      (4) clear expectations for service providers and for 
 38.4   students with disabilities; 
 38.5      (5) increased accountability for all individuals and 
 38.6   agencies that provide instruction and other services to students 
 38.7   with disabilities; 
 38.8      (6) greater focus for the state and local resources 
 38.9   dedicated to educating students with disabilities; and 
 38.10     (7) clearer standards for evaluating the effectiveness of 
 38.11  education and support services for students with disabilities. 
 38.12     Sec. 9.  Minnesota Statutes 1996, section 120.17, 
 38.13  subdivision 3a, is amended to read: 
 38.14     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 
 38.15  this subdivision, to the extent required by federal law as of 
 38.16  July 1, 1999, every district shall ensure that: 
 38.17     (1) all students with disabilities are provided the special 
 38.18  instruction and services which are appropriate to their needs.  
 38.19  Where the individual education plan team has determined 
 38.20  appropriate goals and objectives based on the student's needs, 
 38.21  including the extent to which the student can be included in the 
 38.22  least restrictive environment, and where there are essentially 
 38.23  equivalent and effective instruction, related services, or 
 38.24  assistive technology devices available to meet the student's 
 38.25  needs, cost to the school district may be among the factors 
 38.26  considered by the team in choosing how to provide the 
 38.27  appropriate services, instruction, or devices that are to be 
 38.28  made part of the student's individual education plan.  The 
 38.29  student's needs and the special education instruction and 
 38.30  services to be provided shall be agreed upon through the 
 38.31  development of an individual education plan.  The plan shall 
 38.32  address the student's need to develop skills to live and work as 
 38.33  independently as possible within the community.  By grade 9 or 
 38.34  age 14, the plan shall address the student's needs for 
 38.35  transition from secondary services to post-secondary education 
 38.36  and training, employment, community participation, recreation, 
 39.1   and leisure and home living.  In developing the plan, districts 
 39.2   must inform parents of the full range of transitional goals and 
 39.3   related services that should be considered. The plan must 
 39.4   include a statement of the needed transition services, including 
 39.5   a statement of the interagency responsibilities or linkages or 
 39.6   both before secondary services are concluded; 
 39.7      (2) children with a disability under age five and their 
 39.8   families are provided special instruction and services 
 39.9   appropriate to the child's level of functioning and needs; 
 39.10     (3) children with a disability and their parents or 
 39.11  guardians are guaranteed procedural safeguards and the right to 
 39.12  participate in decisions involving identification, assessment 
 39.13  including assistive technology assessment, and educational 
 39.14  placement of children with a disability; 
 39.15     (4) eligibility and needs of children with a disability are 
 39.16  determined by an initial assessment or reassessment.  The 
 39.17  reassessment may be completed using existing data pursuant to 
 39.18  United States Code, title 20, section 33, et. seq.; 
 39.19     (5) to the maximum extent appropriate, children with a 
 39.20  disability, including those in public or private institutions or 
 39.21  other care facilities, are educated with children who are not 
 39.22  disabled, and that special classes, separate schooling, or other 
 39.23  removal of children with a disability from the regular 
 39.24  educational environment occurs only when and to the extent that 
 39.25  the nature or severity of the disability is such that education 
 39.26  in regular classes with the use of supplementary services cannot 
 39.27  be achieved satisfactorily; 
 39.28     (5) (6) in accordance with recognized professional 
 39.29  standards, testing and evaluation materials, and procedures 
 39.30  utilized for the purposes of classification and placement of 
 39.31  children with a disability are selected and administered so as 
 39.32  not to be racially or culturally discriminatory; and 
 39.33     (6) (7) the rights of the child are protected when the 
 39.34  parents or guardians are not known or not available, or the 
 39.35  child is a ward of the state. 
 39.36     (b) For paraprofessionals employed to work in programs for 
 40.1   students with disabilities, the school board in each district 
 40.2   shall ensure that: 
 40.3      (1) before or immediately upon employment, each 
 40.4   paraprofessional develops sufficient knowledge and skills in 
 40.5   emergency procedures, building orientation, roles and 
 40.6   responsibilities, confidentiality, vulnerability, and 
 40.7   reportability, among other things, to begin meeting the needs of 
 40.8   the students with whom the paraprofessional works; 
 40.9      (2) annual training opportunities are available to enable 
 40.10  the paraprofessional to continue to further develop the 
 40.11  knowledge and skills that are specific to the students with whom 
 40.12  the paraprofessional works, including understanding 
 40.13  disabilities, following lesson plans, and implementing follow-up 
 40.14  instructional procedures and activities; and 
 40.15     (3) a districtwide process obligates each paraprofessional 
 40.16  to work under the ongoing direction of a licensed teacher and, 
 40.17  where appropriate and possible, the supervision of a school 
 40.18  nurse. 
 40.19     Sec. 10.  Minnesota Statutes 1996, section 120.17, 
 40.20  subdivision 3b, is amended to read: 
 40.21     Subd. 3b.  [PROCEDURES FOR DECISIONS.] As defined in this 
 40.22  paragraph, but not to exceed the extent required by federal law 
 40.23  as of July 1, 1999, every district shall utilize at least the 
 40.24  following procedures for decisions involving identification, 
 40.25  assessment, and educational placement of children with a 
 40.26  disability: 
 40.27     (a) Parents and guardians shall receive prior written 
 40.28  notice of:  
 40.29     (1) any proposed formal educational assessment or proposed 
 40.30  denial of a formal educational assessment of their child; 
 40.31     (2) a proposed placement of their child in, transfer from 
 40.32  or to, or denial of placement in a special education program; or 
 40.33     (3) the proposed provision, addition, denial or removal of 
 40.34  special education services for their child;. 
 40.35     (b) The district shall not proceed with the initial formal 
 40.36  assessment of a child, the initial placement of a child in a 
 41.1   special education program, or the initial provision of special 
 41.2   education services for a child without the prior written consent 
 41.3   of the child's parent or guardian.  The refusal of a parent or 
 41.4   guardian to consent may be overridden by the decision in a 
 41.5   hearing held pursuant to clause paragraph (e) at the district's 
 41.6   initiative;. 
 41.7      (c) Parents and guardians shall have an opportunity to meet 
 41.8   with appropriate district staff in at least one conciliation 
 41.9   conference, mediation, or other method of alternative dispute 
 41.10  resolution that the parties agree to, if they object to any 
 41.11  proposal of which they are notified pursuant to clause 
 41.12  paragraph (a).  A school district must participate in at least 
 41.13  one attempt to mediate the dispute using the mediation services 
 41.14  of MNSEMS, which is free to both parties, if a parent or 
 41.15  guardian requests the mediation.  The conciliation process or 
 41.16  other form of alternative dispute resolution shall not be used 
 41.17  to deny or delay a parent or guardian's right to a due process 
 41.18  hearing.  If the parent or guardian refuses efforts by the 
 41.19  district to conciliate the dispute with the school district, the 
 41.20  requirement of an opportunity for conciliation or other 
 41.21  alternative dispute resolution shall be deemed to be satisfied.  
 41.22  Notwithstanding other law, in any proceeding following a 
 41.23  conciliation conference, the school district must not offer a 
 41.24  conciliation conference memorandum into evidence, except for any 
 41.25  portions that describe the district's final proposed offer of 
 41.26  service.  Otherwise, with respect to forms of dispute 
 41.27  resolution, mediation, or conciliation, Minnesota Rule of 
 41.28  Evidence 408 applies. resolve the dispute through alternative 
 41.29  dispute resolution, the parent or guardian may later request an 
 41.30  alternative dispute resolution and a school district must 
 41.31  participate in at least one mediation session using the 
 41.32  mediation services of MNSEMS.  Any alternative dispute 
 41.33  resolution proceedings which take place between the parties will 
 41.34  be governed by the confidentiality requirements in rule 114.08 
 41.35  of the general rules of practice for the district courts.  The 
 41.36  department of children, families, and learning may reimburse the 
 42.1   districts or directly pay the costs of lay advocates, not to 
 42.2   exceed $150 per dispute, used in conjunction with alternative 
 42.3   dispute resolution.  The commissioner shall establish policies 
 42.4   for districts and provide training and resources designed to 
 42.5   encourage early identification of disputes and access to 
 42.6   mediation. 
 42.7      (d) The commissioner shall establish a mediation process to 
 42.8   assist parents, school districts, or other parties to resolve 
 42.9   disputes arising out of the identification, assessment, or 
 42.10  educational placement of children with a disability.  The 
 42.11  mediation process must be offered as an informal alternative to 
 42.12  the due process hearing provided under clause paragraph (e), but 
 42.13  must not be used to deny or postpone the opportunity of a parent 
 42.14  or guardian to obtain a due process hearing. 
 42.15     (e) Parents, guardians, and the district shall have an 
 42.16  opportunity to obtain an impartial due process hearing initiated 
 42.17  and conducted by and in the school district responsible for 
 42.18  assuring that an appropriate program is provided in accordance 
 42.19  with state board rules, if the parent or guardian continues to 
 42.20  object to:  
 42.21     (1) a proposed formal educational assessment or proposed 
 42.22  denial of a formal educational assessment of their child; 
 42.23     (2) the proposed placement of their child in, or transfer 
 42.24  of their child to a special education program; 
 42.25     (3) the proposed denial of placement of their child in a 
 42.26  special education program or the transfer of their child from a 
 42.27  special education program; 
 42.28     (4) the proposed provision or addition of special education 
 42.29  services for their child; or 
 42.30     (5) the proposed denial or removal of special education 
 42.31  services for their child. 
 42.32     Within five business days after the request for a hearing, 
 42.33  or as directed by the hearing officer, the objecting party shall 
 42.34  provide the other party with a brief written statement of 
 42.35  particulars of the objection, the reasons for the objection, and 
 42.36  the specific remedies sought.  The other party shall provide the 
 43.1   objecting party with a written response to the statement of 
 43.2   objections within five business days of receipt of the statement.
 43.3      The hearing shall take place before an impartial hearing 
 43.4   officer mutually agreed to by the school board and the parent or 
 43.5   guardian.  Within four business days of the receipt of the 
 43.6   request for the hearing, if the parties have not agreed on the 
 43.7   hearing officer, the school board shall request the commissioner 
 43.8   to appoint a hearing officer from a list maintained for the 
 43.9   purpose.  A retired judge, retired court referee, or retired 
 43.10  federal magistrate judge who is otherwise qualified under this 
 43.11  section and wishes to be a hearing officer, must be put on the 
 43.12  list.  The school board shall include with the request the name 
 43.13  of the person requesting the hearing, the name of the student, 
 43.14  the attorneys involved, if any, and the date the hearing request 
 43.15  was received.  The hearing officer shall not be a school board 
 43.16  member or employee of the school district where the child 
 43.17  resides or of the child's school district of residence, an 
 43.18  employee of any other public agency involved in the education or 
 43.19  care of the child, or any person with a personal or professional 
 43.20  interest which would conflict with the person's objectivity at 
 43.21  the hearing.  A person who otherwise qualifies as a hearing 
 43.22  officer is not an employee of the district solely because the 
 43.23  person is paid by the district to serve as a hearing 
 43.24  officer.  Any party to a hearing, except an expedited hearing 
 43.25  under federal law, may make and serve upon the opposing party 
 43.26  and the commissioner a notice to remove a hearing officer 
 43.27  appointed by the commissioner.  The notice shall be served and 
 43.28  filed within three business days after the party receives notice 
 43.29  of the appointment of the hearing officer by the commissioner, 
 43.30  but not later than the commencement of the hearing. 
 43.31     No such notice may be filed by a party against a hearing 
 43.32  officer who has presided at a motion or any other proceeding of 
 43.33  which the party had notice.  A hearing officer who has presided 
 43.34  at a motion or other proceeding may not be removed except upon 
 43.35  an affirmative showing of prejudice on the part of the hearing 
 43.36  officer.  
 44.1      After the party has once disqualified a hearing officer as 
 44.2   a matter of right, that party may disqualify the substitute 
 44.3   hearing officer only by making an affirmative showing of 
 44.4   prejudice or bias to the commissioner, or to the chief 
 44.5   administrative law judge if the hearing officer is an 
 44.6   administrative law judge. 
 44.7      Upon the filing of a notice to remove or if a party makes 
 44.8   an affirmative showing of prejudice against a substitute hearing 
 44.9   officer, the commissioner shall assign any other hearing officer 
 44.10  to hear the matter. 
 44.11     If the hearing officer requests an independent educational 
 44.12  assessment of a child, the cost of the assessment shall be at 
 44.13  district expense.  The proceedings shall be recorded and 
 44.14  preserved, at the expense of the school district, pending 
 44.15  ultimate disposition of the action. 
 44.16     (f) The decision of the hearing officer pursuant to clause 
 44.17  paragraph (e) shall be rendered not more than 45 calendar days 
 44.18  from the date of the receipt of the request for the hearing, 
 44.19  except that hearing officers are encouraged to accelerate the 
 44.20  timeline to 30 days for children birth through two whose needs 
 44.21  change rapidly and require quick resolution of complaints.  A 
 44.22  hearing officer may not grant specific extensions of time beyond 
 44.23  the 45-day period unless requested by either party for good 
 44.24  cause shown on the record.  The decision of the hearing officer 
 44.25  shall be binding on all parties unless appealed to the 
 44.26  commissioner by the parent; guardian; school board of the 
 44.27  district where the child resides pursuant to clause 
 44.28  (g) paragraph (h); and also in the case of children birth 
 44.29  through two, by the county board. 
 44.30     The local decision shall: 
 44.31     (1) be in writing; 
 44.32     (2) state the controlling facts upon which the decision is 
 44.33  made in sufficient detail to apprise the parties and the hearing 
 44.34  review officer of the basis and reason for the decision; and 
 44.35     (3) be based on the standards set forth in subdivision 3a 
 44.36  and the rules of the state board. 
 45.1      (g) The hearing officer may require the resident school 
 45.2   district to provide compensatory educational services to the 
 45.3   child if the hearing officer finds that the school district has 
 45.4   not offered or made available to the child a free appropriate 
 45.5   public education in the child's educational program and that the 
 45.6   child has suffered a loss of educational benefit.  Such services 
 45.7   shall take the form of direct and indirect special education and 
 45.8   related services designed to address any loss of educational 
 45.9   benefit that may have occurred.  The hearing officer's finding 
 45.10  shall be based on a present determination of whether the child 
 45.11  has suffered a loss of educational benefit. 
 45.12     (g) (h) Any local decision issued pursuant to clauses 
 45.13  paragraphs (e) and (f) may be appealed to the commissioner 
 45.14  within 30 calendar days of receipt of that written decision, by 
 45.15  the parent, guardian, or the school board of the district 
 45.16  responsible for assuring that an appropriate program is provided 
 45.17  in accordance with state board rules.  The appealing party shall 
 45.18  note the specific parts of the hearing decision being appealed. 
 45.19     If the decision is appealed, a written transcript of the 
 45.20  hearing shall be made by the school district and provided by the 
 45.21  district to the parties involved and the hearing review officer 
 45.22  within five calendar days of the filing of the appeal.  The 
 45.23  hearing review officer shall conduct an appellate review and 
 45.24  issue a final independent decision based on an impartial review 
 45.25  of the local decision and the entire record within 30 calendar 
 45.26  days after the filing of the appeal.  However, the hearing 
 45.27  review officer shall seek additional evidence if necessary and 
 45.28  may afford the parties an opportunity for written or oral 
 45.29  argument; provided any hearing held to seek additional evidence 
 45.30  shall be an impartial due process hearing but shall be deemed 
 45.31  not to be a contested case hearing for purposes of chapter 14.  
 45.32  The hearing review officer may grant specific extensions of time 
 45.33  beyond the 30-day period at the request of any party for good 
 45.34  cause shown on the record. 
 45.35     The final decision shall: 
 45.36     (1) be in writing; 
 46.1      (2) include findings and conclusions; and 
 46.2      (3) be based upon the standards set forth in subdivision 3a 
 46.3   and in the rules of the state board. 
 46.4      (h) (i) The decision of the hearing review officer shall be 
 46.5   final unless appealed by the parent or guardian or school board 
 46.6   to the Minnesota court of appeals or federal district court as 
 46.7   provided by federal law.  State judicial review shall be in 
 46.8   accordance with chapter 14.  
 46.9      (i) (j) The commissioner of children, families, and 
 46.10  learning shall select an individual who has the qualifications 
 46.11  enumerated in this paragraph to serve as the hearing review 
 46.12  officer: 
 46.13     (1) the individual must be knowledgeable and impartial; 
 46.14     (2) the individual must not have a personal interest in or 
 46.15  specific involvement with the student who is a party to the 
 46.16  hearing; 
 46.17     (3) the individual must not have been employed as an 
 46.18  administrator by the district that is a party to the hearing; 
 46.19     (4) the individual must not have been involved in the 
 46.20  selection of the administrators of the district that is a party 
 46.21  to the hearing; 
 46.22     (5) the individual must not have a personal, economic, or 
 46.23  professional interest in the outcome of the hearing other than 
 46.24  the proper administration of the federal and state laws, rules, 
 46.25  and policies; 
 46.26     (6) the individual must not have substantial involvement in 
 46.27  the development of a state or local policy or procedures that 
 46.28  are challenged in the appeal; 
 46.29     (7) the individual is not a current employee or board 
 46.30  member of a Minnesota public school district, education 
 46.31  district, intermediate unit or regional education agency, the 
 46.32  department of children, families, and learning, the state board 
 46.33  of education; and 
 46.34     (8) the individual is not a current employee or board 
 46.35  member of a disability advocacy organization or group.  
 46.36     (j) (k) In all appeals, the parent or guardian of the pupil 
 47.1   with a disability or the district that is a party to the hearing 
 47.2   may challenge the impartiality or competence of the proposed 
 47.3   hearing review officer by applying to the hearing review officer.
 47.4      (k) (l) Pending the completion of proceedings pursuant to 
 47.5   this subdivision, unless the district and the parent or guardian 
 47.6   of the child agree otherwise, the child shall remain in the 
 47.7   child's current educational placement and shall not be denied 
 47.8   initial admission to school. 
 47.9      (l) (m) The child's school district of residence, a 
 47.10  resident district, and providing district shall receive notice 
 47.11  of and may be a party to any hearings or appeals under this 
 47.12  subdivision. 
 47.13     (m) (n) A school district is not liable for harmless 
 47.14  technical violations of this subdivision or rules implementing 
 47.15  this subdivision if the school district can demonstrate on a 
 47.16  case-by-case basis that the violations did not harm the 
 47.17  student's educational progress or the parent or guardian's right 
 47.18  to notice, participation, or due process. 
 47.19     (n) (o) Within ten calendar days after appointment, the 
 47.20  hearing officer shall schedule and hold a prehearing 
 47.21  conference.  At that conference, or later, the hearing officer 
 47.22  may take any appropriate action that a court might take under 
 47.23  Rule 16 of Minnesota Rules of Civil Procedure including, but not 
 47.24  limited to, scheduling, jurisdiction, and listing witnesses 
 47.25  including expert witnesses. 
 47.26     (o) (p) A hearing officer or hearing review officer 
 47.27  appointed under this subdivision shall be deemed to be an 
 47.28  employee of the state under section 3.732 for the purposes of 
 47.29  section 3.736 only. 
 47.30     (p) (q) In order to be eligible for selection, hearing 
 47.31  officers and hearing review officers shall participate in 
 47.32  training and follow procedures as designated by the commissioner.
 47.33     (q) (r) The hearing officer may admit all evidence which 
 47.34  possesses probative value, including hearsay, if it is the type 
 47.35  of evidence on which reasonable, prudent persons are accustomed 
 47.36  to rely in the conduct of their serious affairs.  The hearing 
 48.1   officer shall give effect to the rules of privilege recognized 
 48.2   by law.  Evidence which is incompetent, irrelevant, immaterial, 
 48.3   or unduly repetitious shall be excluded. 
 48.4      Sec. 11.  Minnesota Statutes 1996, section 120.17, 
 48.5   subdivision 9, is amended to read: 
 48.6      Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 48.7   who is eligible for special instruction and services pursuant to 
 48.8   under this section shall be denied provision of this instruction 
 48.9   and service on a shared time basis consistent with section 
 48.10  124A.034, subdivision 2, because of attendance at attending a 
 48.11  nonpublic school defined in section 123.932, subdivision 3.  If 
 48.12  a resident pupil with a disability attends a nonpublic school 
 48.13  located within the district of residence, the district shall 
 48.14  provide necessary transportation for that pupil within the 
 48.15  district between the nonpublic school and the educational 
 48.16  facility where special instruction and services are provided on 
 48.17  a shared time basis.  If a resident pupil with a disability 
 48.18  attends a nonpublic school located in another district and if no 
 48.19  agreement exists pursuant to under section 124A.034, subdivision 
 48.20  1 or 1a, for the provision of providing special instruction and 
 48.21  services on a shared time basis to that pupil by the district of 
 48.22  attendance and where the special instruction and services are 
 48.23  provided within the district of residence, the district of 
 48.24  residence shall provide necessary transportation for that pupil 
 48.25  between the boundary of the district of residence and the 
 48.26  educational facility.  The district of residence may provide 
 48.27  necessary transportation for that pupil between its boundary and 
 48.28  the nonpublic school attended, but the nonpublic school shall 
 48.29  pay the cost of transportation provided outside the district 
 48.30  boundary. 
 48.31     Sec. 12.  Minnesota Statutes 1996, section 120.17, 
 48.32  subdivision 15, is amended to read: 
 48.33     Subd. 15.  [THIRD PARTY PAYMENT.] Nothing in this section 
 48.34  relieves an insurer or similar third party from an otherwise 
 48.35  valid obligation to pay, or changes the validity of an 
 48.36  obligation to pay, for services rendered to a child with a 
 49.1   disability, and the child's family.  A school district may pay 
 49.2   or reimburse copayments, coinsurance, deductibles, and other 
 49.3   enrollee cost-sharing amounts, on behalf of the student or 
 49.4   family, in connection with health and related services provided 
 49.5   under an individual educational plan.  District payment of 
 49.6   enrollee cost sharing amounts shall serve to meet the 
 49.7   requirement that the health and related services be provided 
 49.8   free to the child and the child's family.  The district shall 
 49.9   obtain informed consent consistent with section 13.05, 
 49.10  subdivision 4, paragraph (d), and section 256B.77, subdivision 
 49.11  2, paragraph (p), to bill health plans for each type of covered 
 49.12  service. 
 49.13     Sec. 13.  Minnesota Statutes 1996, section 120.1701, 
 49.14  subdivision 2, is amended to read: 
 49.15     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 49.16  the following terms have the meaning given them.  
 49.17     (a) "Coordinate" means to provide ready access to a 
 49.18  community's services and resources to meet child and family 
 49.19  needs.  
 49.20     (b) "Core early intervention services" means services that 
 49.21  are available at no cost to children and families.  These 
 49.22  services include: 
 49.23     (1) identification and referral; 
 49.24     (2) screening; 
 49.25     (3) evaluation; 
 49.26     (4) assessment; 
 49.27     (5) service coordination; 
 49.28     (6) special education and related services provided under 
 49.29  section 120.17, subdivision 3a, and United States Code, title 
 49.30  20, section 1401; and 
 49.31     (7) protection of parent and child rights by means of 
 49.32  procedural safeguards. 
 49.33     (c) "County board" means a county board established under 
 49.34  chapter 375. 
 49.35     (d) "Early intervention record" means any personally 
 49.36  identifiable information about a child or the child's family 
 50.1   that is generated by the early intervention system, and that 
 50.2   pertains to evaluation and assessment, development of an 
 50.3   individualized family service plan, and the delivery of early 
 50.4   intervention services. 
 50.5      (e) "Early intervention services" means services provided 
 50.6   in conformity with an individualized family service plan that 
 50.7   are designed to meet the special developmental needs of a child 
 50.8   eligible under Code of Federal Regulations, title 34, part 303, 
 50.9   and the needs of the child's family related to enhancing the 
 50.10  child's development and that are selected in collaboration with 
 50.11  the parent.  These services include core early intervention 
 50.12  services and additional early intervention services listed in 
 50.13  subdivision 4 and services defined in Code of Federal 
 50.14  Regulations, title 34, section 303, et seq. 
 50.15     (f) "Early intervention system" means the total effort in 
 50.16  the state to meet the needs of eligible children and their 
 50.17  families, including, but not limited to: 
 50.18     (1) any public agency in the state that receives funds 
 50.19  under the Individuals with Disabilities Education Act, United 
 50.20  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 50.21  Number 102-119); 
 50.22     (2) other state and local agencies administering programs 
 50.23  involved in the provision of early intervention services, 
 50.24  including, but not limited to: 
 50.25     (i) the Maternal and Child Health program under title V of 
 50.26  the Social Security Act, United States Code, title 42, sections 
 50.27  701 to 709; 
 50.28     (ii) the Individuals with Disabilities Education Act, 
 50.29  United States Code, title 20, sections 1411 to 1420 (Part B); 
 50.30     (iii) medical assistance under the Social Security Act, 
 50.31  United States Code, title 42, section 1396 et seq.; 
 50.32     (iv) the Developmental Disabilities Assistance and Bill of 
 50.33  Rights Act, United States Code, title 42, sections 6021 to 6030 
 50.34  (Part B); and 
 50.35     (v) the Head Start Act, United States Code, title 42, 
 50.36  sections 9831 to 9852; and 
 51.1      (3) services provided by private groups or third-party 
 51.2   payers in conformity with an individualized family service plan. 
 51.3      (g) "Eligibility for Part H" means eligibility for early 
 51.4   childhood special education under section 120.03 and Minnesota 
 51.5   Rules, part 3525.2335, subpart 1, items A and B. 
 51.6      (h) "Facilitate payment" means helping families access 
 51.7   necessary public or private assistance that provides payment for 
 51.8   services required to meet needs identified in a service plan, 
 51.9   individual education plan (IEP), individual service plan (ISP), 
 51.10  or individualized family service plan (IFSP), according to time 
 51.11  frames required by the plan.  This may also include activities 
 51.12  to collect fees for services provided on a sliding fee basis, 
 51.13  where permitted by state law. 
 51.14     (i) "Individualized family service plan" or "IFSP" means a 
 51.15  written plan for providing services to a child and the child's 
 51.16  family.  
 51.17     (j) "Interagency child find systems" means activities 
 51.18  developed on an interagency basis with the involvement of 
 51.19  interagency early intervention committees and other relevant 
 51.20  community groups to actively seek out, identify, and refer 
 51.21  infants and young children with, or at risk of, disabilities, 
 51.22  and their families. 
 51.23     (k) "Local primary agency" means the agency designated 
 51.24  jointly by the school and county board under subdivision 4. 
 51.25     (l) "Natural environments" means the child's home and 
 51.26  community settings in which children without disabilities 
 51.27  participate. 
 51.28     (l) (m) "Parent" means the biological parent with parental 
 51.29  rights, adoptive parent, legal guardian, or surrogate parent. 
 51.30     (m) (n) "Part H state plan" means the annual state plan 
 51.31  application approved by the federal government under the 
 51.32  Individuals with Disabilities Education Act, United States Code, 
 51.33  title 20, section 1471 et seq. (Part H, Public Law Number 
 51.34  102-119). 
 51.35     (n) (o) "Pay for" means using federal, state, local, and 
 51.36  private dollars available for early intervention services. 
 52.1      (o) (p) "Respite" means short-term, temporary care provided 
 52.2   to a child with a disability due to the temporary absence or 
 52.3   need for relief of the family member or members or primary 
 52.4   caregiver, normally providing the care. 
 52.5      (p) (q) "State lead agency" means the state agency 
 52.6   receiving federal funds under the Individuals with Disabilities 
 52.7   Education Act, United States Code, title 20, section 1471 et 
 52.8   seq. (Part H, Public Law Number 102-119). 
 52.9      (q) (r) "Surrogate parent" means a person appointed by the 
 52.10  local education agency to assure that the rights of the child to 
 52.11  early intervention services are protected.  A person cannot be a 
 52.12  surrogate parent to a child for whom the person provides early 
 52.13  intervention services. 
 52.14     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 52.15  120.1701, subdivision 3, is amended to read: 
 52.16     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 52.17  interagency coordinating council of at least 17, but not more 
 52.18  than 25 members is established, in compliance with Public Law 
 52.19  Number 102-119, section 682.  The members shall be appointed by 
 52.20  the governor.  Council members shall elect the council chair.  
 52.21  The representative of the commissioner of children, families, 
 52.22  and learning may not serve as the chair.  The council shall be 
 52.23  composed of at least five parents, including persons of color, 
 52.24  of children with disabilities under age 12, including at least 
 52.25  three parents of a child with a disability under age seven, five 
 52.26  representatives of public or private providers of services for 
 52.27  children with disabilities under age five, including a special 
 52.28  education director, county social service director, local Head 
 52.29  Start director, and a community health services or public health 
 52.30  nursing administrator, one member of the senate, one member of 
 52.31  the house of representatives, one representative of teacher 
 52.32  preparation programs in early childhood-special education or 
 52.33  other preparation programs in early childhood intervention, at 
 52.34  least one representative of advocacy organizations for children 
 52.35  with disabilities under age five, one physician who cares for 
 52.36  young children with special health care needs, one 
 53.1   representative each from the commissioners of commerce, 
 53.2   children, families, and learning, health, human services, and 
 53.3   economic security a representative from the state agency 
 53.4   responsible for child care, and a representative from Indian 
 53.5   health services or a tribal council.  Section 15.059, 
 53.6   subdivisions 2 to 5, apply to the council.  The council shall 
 53.7   meet at least quarterly.  
 53.8      The council shall address methods of implementing the state 
 53.9   policy of developing and implementing comprehensive, 
 53.10  coordinated, multidisciplinary interagency programs of early 
 53.11  intervention services for children with disabilities and their 
 53.12  families. 
 53.13     The duties of the council include recommending policies to 
 53.14  ensure a comprehensive and coordinated system of all state and 
 53.15  local agency services for children under age five with 
 53.16  disabilities and their families.  The policies must address how 
 53.17  to incorporate each agency's services into a unified state and 
 53.18  local system of multidisciplinary assessment practices, 
 53.19  individual intervention plans, comprehensive systems to find 
 53.20  children in need of services, methods to improve public 
 53.21  awareness, and assistance in determining the role of interagency 
 53.22  early intervention committees.  
 53.23     Each year by June 1, the council shall recommend to the 
 53.24  governor and the commissioners of children, families, and 
 53.25  learning, health, human services, commerce, and economic 
 53.26  security policies for a comprehensive and coordinated system. 
 53.27     Notwithstanding any other law to the contrary, the state 
 53.28  interagency coordinating council shall expire on June 30, 2001. 
 53.29     Sec. 15.  Minnesota Statutes 1996, section 120.1701, 
 53.30  subdivision 5, is amended to read: 
 53.31     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 53.32  A school district, group of districts, or special education 
 53.33  cooperative, in cooperation with the health and human service 
 53.34  agencies located in the county or counties in which the district 
 53.35  or cooperative is located, shall establish an interagency early 
 53.36  intervention committee for children with disabilities under age 
 54.1   five and their families.  Committees shall include 
 54.2   representatives of local and regional health, education, and 
 54.3   county human service agencies; county boards; school boards; 
 54.4   early childhood family education programs; parents of young 
 54.5   children with disabilities under age 12; current service 
 54.6   providers; and may also include representatives from other 
 54.7   private or public agencies.  The committee shall elect a chair 
 54.8   from among its members and shall meet at least quarterly. 
 54.9      (b) The committee shall develop and implement interagency 
 54.10  policies and procedures concerning the following ongoing duties: 
 54.11     (1) develop public awareness systems designed to inform 
 54.12  potential recipient families of available programs and services; 
 54.13     (2) implement interagency child find systems designed to 
 54.14  actively seek out, identify, and refer infants and young 
 54.15  children with, or at risk of, disabilities and their families; 
 54.16     (3) establish and evaluate the identification, referral, 
 54.17  child and family assessment systems, procedural safeguard 
 54.18  process, and community learning systems to recommend, where 
 54.19  necessary, alterations and improvements; 
 54.20     (4) assure the development of individualized family service 
 54.21  plans for all eligible infants and toddlers with disabilities 
 54.22  from birth through age two, and their families, and individual 
 54.23  education plans and individual service plans when necessary to 
 54.24  appropriately serve children with disabilities, age three and 
 54.25  older, and their families and recommend assignment of financial 
 54.26  responsibilities to the appropriate agencies.  Agencies are 
 54.27  encouraged to develop individual family service plans for 
 54.28  children with disabilities, age three and older; 
 54.29     (5) implement a process for assuring that services involve 
 54.30  cooperating agencies at all steps leading to individualized 
 54.31  programs; 
 54.32     (6) facilitate the development of a transitional plan if a 
 54.33  service provider is not recommended to continue to provide 
 54.34  services; 
 54.35     (7) identify the current services and funding being 
 54.36  provided within the community for children with disabilities 
 55.1   under age five and their families; 
 55.2      (8) develop a plan for the allocation and expenditure of 
 55.3   additional state and federal early intervention funds under 
 55.4   United States Code, title 20, section 1471 et seq. (Part H, 
 55.5   Public Law Number 102-119) and United States Code, title 20, 
 55.6   section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 55.7      (9) develop a policy that is consistent with section 13.05, 
 55.8   subdivision 9, and federal law to enable a member of an 
 55.9   interagency early intervention committee to allow another member 
 55.10  access to data classified as not public. 
 55.11     (c) The local committee shall also: 
 55.12     (1) participate in needs assessments and program planning 
 55.13  activities conducted by local social service, health and 
 55.14  education agencies for young children with disabilities and 
 55.15  their families; 
 55.16     (2) review and comment on the early intervention section of 
 55.17  the total special education system for the district, the county 
 55.18  social service plan, the section or sections of the community 
 55.19  health services plan that address needs of and service 
 55.20  activities targeted to children with special health care needs, 
 55.21  and the section of the maternal and child health special project 
 55.22  grants that address needs of and service activities targeted to 
 55.23  children with chronic illness and disabilities; and 
 55.24     (3) prepare a yearly summary on the progress of the 
 55.25  community in serving young children with disabilities, and their 
 55.26  families, including the expenditure of funds, the identification 
 55.27  of unmet service needs identified on the individual family 
 55.28  services plan and other individualized plans, and local, state, 
 55.29  and federal policies impeding the implementation of this section.
 55.30     (d) The summary must be organized following a format 
 55.31  prescribed by the commissioner of the state lead agency and must 
 55.32  be submitted to each of the local agencies and to the state 
 55.33  interagency coordinating council by October 1 of each year. 
 55.34     The departments of children, families, and learning, 
 55.35  health, and human services must provide assistance to the local 
 55.36  agencies in developing cooperative plans for providing services. 
 56.1      Sec. 16.  Minnesota Statutes 1996, section 120.1701, 
 56.2   subdivision 11, is amended to read: 
 56.3      Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
 56.4   1995 and 1996, The state lead agency shall establish maintain a 
 56.5   reserve account from federal sources to pay for services in 
 56.6   dispute or to pay for early intervention services when local 
 56.7   agencies have exhausted all other public and private funds 
 56.8   available for Part H eligible children. 
 56.9      (b) The lead agency shall report to the legislature by 
 56.10  January 1, 1996, regarding county board expenditures for early 
 56.11  intervention services and the continuing need and funding of the 
 56.12  reserve account.  
 56.13     Sec. 17.  Minnesota Statutes 1996, section 120.1701, 
 56.14  subdivision 17, is amended to read: 
 56.15     Subd. 17.  [MEDIATION PROCEDURE.] The commissioner, or the 
 56.16  commissioner's designee, of the state lead agency shall use 
 56.17  federal funds to provide mediation for the activities in 
 56.18  paragraphs (a) and (b). 
 56.19     (a) A parent may resolve a dispute regarding issues in 
 56.20  subdivision 16, paragraph (b), clause (5), through mediation.  
 56.21  If the parent chooses mediation, all public agencies involved in 
 56.22  the dispute shall participate in the mediation process.  The 
 56.23  parent and the public agencies must complete the mediation 
 56.24  process within 20 30 calendar days of the date the 
 56.25  commissioner office of dispute resolution receives a parent's 
 56.26  written request for mediation.  The mediation process may not be 
 56.27  used to delay a parent's right to a due process hearing.  The 
 56.28  resolution of the mediation is not binding on any party. 
 56.29     (b) The local primary agency may request mediation on 
 56.30  behalf of involved agencies when there are disputes between 
 56.31  agencies regarding responsibilities to coordinate, provide, pay 
 56.32  for, or facilitate payment for early intervention services. 
 56.33     Sec. 18.  Minnesota Statutes 1996, section 120.173, 
 56.34  subdivision 1, is amended to read: 
 56.35     Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
 56.36  of children, families, and learning may approve applications 
 57.1   from school districts to provide prevention services as an 
 57.2   alternative to special education and other compensatory programs 
 57.3   during three school years.  A district with an approved program 
 57.4   may provide instruction and services in a regular education 
 57.5   classroom, or an area learning center, to eligible pupils.  
 57.6   Pupils eligible to participate in the program are low-performing 
 57.7   pupils who, based on documented experience, the professional 
 57.8   judgment of a classroom teacher, or a team of licensed 
 57.9   professionals, would eventually qualify for special education 
 57.10  instruction or related services under section 120.17 if the 
 57.11  intervention services authorized by this section were 
 57.12  unavailable.  Pupils may be provided services during extended 
 57.13  school days and throughout the entire year and through the 
 57.14  assurance of mastery program under section 124.3111. 
 57.15     Sec. 19.  Minnesota Statutes 1996, section 120.173, 
 57.16  subdivision 6, is amended to read: 
 57.17     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 57.18  program must be individually evaluated according to the pupil's 
 57.19  actual abilities and needs.  A pupil who is eligible for 
 57.20  services under section 120.17 is entitled to procedural 
 57.21  protections provided under Public Law Number 94-142 United 
 57.22  States Code, title 20, section 33 in any matter that affects the 
 57.23  identification, evaluation, placement, or change in placement of 
 57.24  a pupil.  The district must ensure the protection of a pupil's 
 57.25  civil rights, provide equal educational opportunities, and 
 57.26  prohibit discrimination.  Failure to comply with this 
 57.27  subdivision will at least cause a district to become ineligible 
 57.28  to participate in the program.  Notwithstanding rules of the 
 57.29  state board of education, a pupil's rights under this section 
 57.30  cannot be waived by the state board. 
 57.31     Sec. 20.  Minnesota Statutes 1996, section 123.935, 
 57.32  subdivision 1, is amended to read: 
 57.33     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
 57.34  education shall promulgate rules under the provisions of chapter 
 57.35  14 requiring each school district or other intermediary service 
 57.36  area:  (a) to provide each year upon formal request by a 
 58.1   specific date by or on behalf of a nonpublic school pupil 
 58.2   enrolled in a nonpublic school located in that district or area, 
 58.3   the same specific health services as are provided for public 
 58.4   school pupils by the district where the nonpublic school is 
 58.5   located; and (b) to provide each year upon formal request by a 
 58.6   specific date by or on behalf of a nonpublic school secondary 
 58.7   pupil enrolled in a nonpublic school located in that district or 
 58.8   area, the same specific guidance and counseling services as are 
 58.9   provided for public school secondary pupils by the district 
 58.10  where the nonpublic school is located.  The district where the 
 58.11  nonpublic school is located shall provide the necessary 
 58.12  transportation within the district boundaries between the 
 58.13  nonpublic school and a public school or neutral site for 
 58.14  nonpublic school pupils who are provided pupil support services 
 58.15  pursuant to under this section if the district elects to provide 
 58.16  pupil support services at a site other than the nonpublic school.
 58.17  Each request for pupil support services shall set forth the 
 58.18  guidance and counseling or health services requested by or on 
 58.19  behalf of all eligible nonpublic school pupils enrolled in a 
 58.20  given nonpublic school.  No district or intermediary service 
 58.21  area shall expend an amount for these pupil support services 
 58.22  which exceeds the amount allotted to it under this section. 
 58.23     Sec. 21.  Minnesota Statutes 1996, section 123.935, 
 58.24  subdivision 2, is amended to read: 
 58.25     Subd. 2.  [LOCATION OF SERVICES.] Health and guidance and 
 58.26  counseling services may be provided to nonpublic school 
 58.27  pupils pursuant to under this section at a public school, a 
 58.28  neutral site, the nonpublic school or any other suitable 
 58.29  location.  Guidance and counseling services may be provided to 
 58.30  nonpublic school pupils pursuant to this section only at a 
 58.31  public school or a neutral site.  District or intermediary 
 58.32  service area personnel and representatives of the nonpublic 
 58.33  school pupils receiving pupil support services shall hold an 
 58.34  annual consultation regarding the type of services, provider of 
 58.35  services, and the location of the provision of these services.  
 58.36  The district board or intermediary service area governing board 
 59.1   shall make the final decision on the location of the provision 
 59.2   of these services. 
 59.3      Sec. 22.  Minnesota Statutes 1996, section 124.17, 
 59.4   subdivision 2, is amended to read: 
 59.5      Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
 59.6   in grades kindergarten through 12 and for prekindergarten pupils 
 59.7   with disabilities shall mean the number of pupils on the current 
 59.8   roll of the school, counted from the date of entry until 
 59.9   withdrawal.  The date of withdrawal shall mean the day the pupil 
 59.10  permanently leaves the school or the date it is officially known 
 59.11  that the pupil has left or has been legally excused.  However, a 
 59.12  pupil, regardless of age, who has been absent from school for 15 
 59.13  consecutive school days during the regular school year or for 
 59.14  five consecutive school days during summer school or 
 59.15  intersession classes of flexible school year programs without 
 59.16  receiving instruction in the home or hospital shall be dropped 
 59.17  from the roll and classified as withdrawn.  Nothing in this 
 59.18  section shall be construed as waiving the compulsory attendance 
 59.19  provisions cited in section 120.101.  Average daily membership 
 59.20  shall equal the sum for all pupils of the number of days of the 
 59.21  school year each pupil is enrolled in the district's schools 
 59.22  divided by the number of days the schools are in session.  Days 
 59.23  of summer school or intersession classes of flexible school year 
 59.24  programs shall only be included in the computation of membership 
 59.25  for pupils with a disability not appropriately served at level 
 59.26  4, 5, or 6 of the continuum of placement model described in 
 59.27  Minnesota Rules, part 3525.0200 primarily in the regular 
 59.28  classroom. 
 59.29     Sec. 23.  Minnesota Statutes 1996, section 124.26, 
 59.30  subdivision 1c, is amended to read: 
 59.31     Subd. 1c.  [PROGRAM APPROVAL.] (a) To receive aid under 
 59.32  this section, a district, a consortium of districts, or a 
 59.33  private nonprofit organization, an area learning center, or an 
 59.34  alternative program approved by the commissioner must submit an 
 59.35  application by June 1 describing the program, on a form provided 
 59.36  by the department.  The program must be approved by the 
 60.1   commissioner according to the following criteria:  
 60.2      (1) how the needs of different levels of learning will be 
 60.3   met; 
 60.4      (2) for continuing programs, an evaluation of results; 
 60.5      (3) anticipated number and education level of participants; 
 60.6      (4) coordination with other resources and services; 
 60.7      (5) participation in a consortium, if any, and money 
 60.8   available from other participants; 
 60.9      (6) management and program design; 
 60.10     (7) volunteer training and use of volunteers; 
 60.11     (8) staff development services; 
 60.12     (9) program sites and schedules; and 
 60.13     (10) program expenditures that qualify for aid.  
 60.14     (b) The commissioner may grant adult basic education funds 
 60.15  to a private, nonprofit organization to provide services that 
 60.16  are not offered by a district or that are supplemental to a 
 60.17  district's program.  The program provided under this provision 
 60.18  must be approved and funded according to the same criteria used 
 60.19  for district programs. 
 60.20     (c) Adult basic education programs may be approved under 
 60.21  this subdivision for up to five years.  Five-year program 
 60.22  approval shall be granted to an applicant who has demonstrated 
 60.23  the capacity to: 
 60.24     (1) offer comprehensive learning opportunities and support 
 60.25  service choices appropriate for and accessible to adults at all 
 60.26  basic skill need levels; 
 60.27     (2) provide a participatory and experiential learning 
 60.28  approach based on the strengths, interests, and needs of each 
 60.29  adult, that enables adults with basic skill needs to: 
 60.30     (i) identify, plan for, and evaluate their own progress 
 60.31  toward achieving their defined educational and occupational 
 60.32  goals; 
 60.33     (ii) master the basic academic reading, writing, and 
 60.34  computational skills, as well as the problem-solving, decision 
 60.35  making, interpersonal effectiveness, and other life and learning 
 60.36  skills they need to function effectively in a changing society; 
 61.1      (iii) locate and be able to use the health, governmental, 
 61.2   and social services and resources they need to improve their own 
 61.3   and their families' lives; and 
 61.4      (iv) continue their education, if they desire, to at least 
 61.5   the level of secondary school completion, with the ability to 
 61.6   secure and benefit from continuing education that will enable 
 61.7   them to become more employable, productive, and responsible 
 61.8   citizens; 
 61.9      (3) plan, coordinate, and develop cooperative agreements 
 61.10  with community resources to address the needs that the adults 
 61.11  have for support services, such as transportation, flexible 
 61.12  course scheduling, convenient class locations, and child care; 
 61.13     (4) collaborate with business, industry, labor unions, and 
 61.14  employment-training agencies, as well as with family and 
 61.15  occupational education providers, to arrange for resources and 
 61.16  services through which adults can attain economic 
 61.17  self-sufficiency; 
 61.18     (5) provide sensitive and well trained adult education 
 61.19  personnel who participate in local, regional, and statewide 
 61.20  adult basic education staff development events to master 
 61.21  effective adult learning and teaching techniques; 
 61.22     (6) participate in regional adult basic education peer 
 61.23  program reviews and evaluations; and 
 61.24     (7) submit accurate and timely performance and fiscal 
 61.25  reports. 
 61.26     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 61.27  124.26, subdivision 2, is amended to read: 
 61.28     Subd. 2.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
 61.29  districts, or private nonprofit organization, area learning 
 61.30  center, or alternative program approved by the commissioner 
 61.31  providing adult basic education programs shall establish and 
 61.32  maintain accounts separate from all other district accounts for 
 61.33  the receipt and disbursement of all funds related to these 
 61.34  programs.  All revenue received pursuant to this section shall 
 61.35  be utilized solely for the purposes of adult basic education 
 61.36  programs.  In no case shall federal and state aid plus levy 
 62.1   equal more than 100 percent of the actual cost of providing 
 62.2   these programs. 
 62.3      Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 62.4   124.3111, subdivision 2, is amended to read: 
 62.5      Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 62.6   services through an assurance of mastery program if the pupil 
 62.7   has not demonstrated progress toward mastering the required 
 62.8   graduation standards, after receiving instruction that was 
 62.9   designed to enable the pupil to make progress toward mastering 
 62.10  the required graduation standards in a regular classroom 
 62.11  setting.  A pupil also is eligible to receive services through 
 62.12  an assurance of mastery program if the pupil, based on the 
 62.13  professional judgment of a classroom teacher or a team of 
 62.14  licensed professionals, demonstrates a need for alternative 
 62.15  instructional strategies or interventions.  To determine pupil 
 62.16  eligibility, a district must use a process adopted by the school 
 62.17  board to review curriculum and instruction, for the subjects and 
 62.18  at the grade level at which the district uses the revenue. 
 62.19     Sec. 26.  Minnesota Statutes 1996, section 124.32, is 
 62.20  amended by adding a subdivision to read: 
 62.21     Subd. 13.  [AID FOR LITIGATION COSTS.] (a) For fiscal years 
 62.22  1999 and later, school districts shall receive aid based on 70 
 62.23  percent of the cost associated with due process hearings 
 62.24  incurred under section 120.17, subdivision 3b, paragraphs (e), 
 62.25  (h), and (i), including hearing officer fees, court reporter 
 62.26  fees, expert witness fees, mileage costs, transcript costs, 
 62.27  costs of outside evaluations ordered by hearing officers, rental 
 62.28  of hearing rooms, but not including district legal or attorney 
 62.29  fees. 
 62.30     (b) In order to receive aid under this subdivision, school 
 62.31  districts shall submit to the commissioner at the end of each 
 62.32  school year, costs for fees and other expenses described in 
 62.33  paragraph (a).  Aid under this section for each school district 
 62.34  is based on costs submitted from the previous school year.  A 
 62.35  school district's aid under this section may not exceed $10 per 
 62.36  fund balance pupil unit for the year in which the aid is 
 63.1   received. 
 63.2      Sec. 27.  Minnesota Statutes 1996, section 124A.034, 
 63.3   subdivision 2, is amended to read: 
 63.4      Subd. 2.  [LOCATION OF SERVICES.] (a) Public school 
 63.5   programs that provide instruction in core curriculum may be 
 63.6   provided to shared time pupils only at a public school building; 
 63.7   provided, however, that special instruction and services for 
 63.8   children with a disability required pursuant to section 120.17 
 63.9   may also be provided at a neutral site as defined in section 
 63.10  123.932, public school programs, excluding programs that provide 
 63.11  instruction in core curriculum, may be provided to shared time 
 63.12  pupils at a public school building, a neutral site, the 
 63.13  nonpublic school, or any other suitable location.  Guidance and 
 63.14  counseling and diagnostic and health services required pursuant 
 63.15  to under section 120.17 may also be provided at a nonpublic 
 63.16  school building.  As used in this subdivision, "diagnostic 
 63.17  services" means speech, hearing, vision, psychological, medical 
 63.18  and dental diagnostic services and "health services" means 
 63.19  physician, nursing or optometric services provided to pupils in 
 63.20  the field of physical and mental health.  
 63.21     (b) For those children with a disability under section 
 63.22  120.17 who attend nonpublic school and for whom a free and 
 63.23  appropriate education is available at a public school, a school 
 63.24  district may provide special instruction and services at the 
 63.25  nonpublic school building only to the extent required under the 
 63.26  Individuals with Disabilities Education Act, Public Law Number 
 63.27  105-17, as amended.  A school district may provide special 
 63.28  instruction and services for such children at a neutral site as 
 63.29  defined in section 123.932, subdivision 9. 
 63.30     Sec. 28.  Minnesota Statutes 1996, section 124A.036, 
 63.31  subdivision 1a, is amended to read: 
 63.32     Subd. 1a.  [REPORTING; REVENUE FOR HOMELESS.] For all 
 63.33  school purposes, unless otherwise specifically provided by law, 
 63.34  a homeless pupil must be considered is a resident of the school 
 63.35  district that enrolls the pupil in which the homeless shelter or 
 63.36  other program, center, or facility assisting the homeless pupil 
 64.1   or the pupil's family is located. 
 64.2      Sec. 29.  Minnesota Statutes 1996, section 124A.036, is 
 64.3   amended by adding a subdivision to read: 
 64.4      Subd. 1b.  [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 
 64.5   In those instances when the divorced parents share joint 
 64.6   physical custody of the child and the divorced parents reside in 
 64.7   different school districts, for all school purposes, unless 
 64.8   otherwise specifically provided by law, the child must be 
 64.9   considered a resident of the school district, as indicated by 
 64.10  the child's parents.  
 64.11     (b) When the child of divorced parents under paragraph (a) 
 64.12  resides with each parent on alternate weeks, the parents shall 
 64.13  be responsible for the transportation of the child to the border 
 64.14  of the resident school district during those weeks when the 
 64.15  child resides in the nonresident school district. 
 64.16     Sec. 30.  Minnesota Statutes 1996, section 124A.036, 
 64.17  subdivision 4, is amended to read: 
 64.18     Subd. 4.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
 64.19  agency or a court of the state desires to place a child in a 
 64.20  school district which is not the child's district of 
 64.21  residence or to place a pupil who is a parent under section 
 64.22  120.101, subdivision 3, in a school district which is not the 
 64.23  school district in which the pupil's biological or adoptive 
 64.24  parent or designated guardian resides, that agency or court 
 64.25  shall, prior to placement, allow the district of residence an 
 64.26  opportunity to participate in the placement decision and notify 
 64.27  the district of residence, the district of attendance and the 
 64.28  commissioner of children, families, and learning of the 
 64.29  placement decision.  When a state agency or court determines 
 64.30  that an immediate emergency placement is necessary and that time 
 64.31  does not permit district participation in the placement decision 
 64.32  or notice to the districts and the commissioner of children, 
 64.33  families, and learning of the placement decision prior to the 
 64.34  placement, the agency or court may make the decision and 
 64.35  placement without that participation or prior notice.  The 
 64.36  agency or court shall notify the district of residence, the 
 65.1   district of attendance and the commissioner of children, 
 65.2   families, and learning of an emergency placement within 15 days 
 65.3   of the placement.  
 65.4      Sec. 31.  Minnesota Statutes 1996, section 124C.45, 
 65.5   subdivision 2, is amended to read: 
 65.6      Subd. 2.  [ACCESS TO SERVICES.] A center shall have access 
 65.7   to the district's regular education programs, special education 
 65.8   programs, technology facilities, and staff.  It may contract 
 65.9   with individuals or post-secondary institutions.  It shall seek 
 65.10  the involvement of community education programs, post-secondary 
 65.11  institutions, interagency collaboratives, community resources, 
 65.12  businesses, and other federal, state, and local public agencies. 
 65.13     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 65.14  124C.46, subdivision 1, is amended to read: 
 65.15     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 65.16  services of a center must focus on academic and learning skills, 
 65.17  applied learning opportunities, trade and vocational skills, 
 65.18  work-based learning opportunities, work experience, youth 
 65.19  service to the community, and transition services.  Applied 
 65.20  learning, work-based learning, and service learning may best be 
 65.21  developed in collaboration with a local education and 
 65.22  transitions partnership.  In addition to offering programs, the 
 65.23  center shall coordinate the use of other available educational 
 65.24  services, special education services, social services, health 
 65.25  services, and post-secondary institutions in the community and 
 65.26  services area.  
 65.27     (b) Consistent with the requirements of section 127.26 to 
 65.28  127.39, a school district may provide an alternative education 
 65.29  program for a student who is within the compulsory attendance 
 65.30  age under section 120.06, and who is involved in severe or 
 65.31  repeated disciplinary action. 
 65.32     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 65.33  124C.46, subdivision 2, is amended to read: 
 65.34     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 65.35  programs for secondary pupils and adults.  A center may also 
 65.36  provide programs and services for elementary and secondary 
 66.1   pupils who are not attending the center to assist them in being 
 66.2   successful in school.  An individual education plan team may 
 66.3   identify a center as an appropriate placement to the extent a 
 66.4   center can provide the student with the appropriate special 
 66.5   education services described in the student's plan.  Pupils 
 66.6   eligible to be served are those age five to adults 21 22 and 
 66.7   older who qualify under the graduation incentives program in 
 66.8   section 126.22, subdivision 2, or those pupils who are eligible 
 66.9   to receive special education services under section 120.17. 
 66.10     Sec. 34.  Minnesota Statutes 1996, section 124C.47, is 
 66.11  amended to read: 
 66.12     124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 
 66.13     An area learning center must serve as a resource for other 
 66.14  districts, educational, community, and business organizations.  
 66.15  The center may charge a fee for these services.  The following 
 66.16  services shall be provided for a region or the state:  
 66.17     (1) information and research for alternative programs; 
 66.18     (2) regional or state workshops on awareness, 
 66.19  identification, programs, and support for these pupils; and 
 66.20     (3) recommendations for staff qualifications to ensure the 
 66.21  most qualified staff can be selected for the programs; and 
 66.22     (4) recommendations for successful learning programs for 
 66.23  special education students placed in an alternative setting. 
 66.24     Sec. 35.  Minnesota Statutes 1996, section 124C.48, is 
 66.25  amended by adding a subdivision to read: 
 66.26     Subd. 3.  [SPECIAL EDUCATION REVENUE.] Payment of special 
 66.27  education revenue for nonresident pupils enrolled in the center 
 66.28  must be made according to section 120.17, subdivision 6. 
 66.29     Sec. 36.  Minnesota Statutes 1996, section 126.237, is 
 66.30  amended to read: 
 66.31     126.237 [ALTERNATE INSTRUCTION REQUIRED.] 
 66.32     (a) Before a pupil is referred for a special education 
 66.33  assessment, the district must conduct and document at least two 
 66.34  instructional strategies, alternatives, or interventions while 
 66.35  the pupil is in the regular classroom.  The pupil's teacher must 
 66.36  provide the documentation.  A special education assessment team 
 67.1   may waive this requirement when they determine the pupil's need 
 67.2   for the assessment is urgent.  This section may not be used to 
 67.3   deny a pupil's right to a special education assessment. 
 67.4      (b) A school district shall utilize alternative 
 67.5   intervention services, including the assurance of mastery 
 67.6   program under section 124.3111 and the first grade preparedness 
 67.7   program under section 124.2613, to serve at-risk students who 
 67.8   demonstrate a need for alternative instructional strategies or 
 67.9   interventions. 
 67.10     Sec. 37.  Minnesota Statutes 1996, section 127.27, 
 67.11  subdivision 2, is amended to read: 
 67.12     Subd. 2.  [DISMISSAL.] "Dismissal" means the denial of the 
 67.13  appropriate current educational program to any pupil, including 
 67.14  exclusion, expulsion, and suspension.  It does not include 
 67.15  removal from class.  
 67.16     Sec. 38.  Minnesota Statutes 1997 Supplement, section 
 67.17  127.27, subdivision 10, is amended to read: 
 67.18     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 67.19  the school administration, under rules promulgated by the school 
 67.20  board, prohibiting a pupil from attending school for a period of 
 67.21  no more than ten school days.  If a suspension is longer than 
 67.22  five days, the suspending administrator must provide the 
 67.23  superintendent with a reason for the longer suspension.  This 
 67.24  definition does not apply to dismissal from school for one 
 67.25  school day or less, except as provided in federal law for a 
 67.26  student with a disability.  Each suspension action shall may 
 67.27  include a readmission plan.  The readmission plan shall include, 
 67.28  where appropriate, a provision for implementing alternative 
 67.29  educational services upon readmission and may not be used to 
 67.30  extend the current suspension.  The school administration may 
 67.31  not impose consecutive suspensions against the same pupil for 
 67.32  the same course of conduct, or incident of misconduct, except 
 67.33  where the pupil will create an immediate and substantial danger 
 67.34  to self or to surrounding persons or property, or where the 
 67.35  district is in the process of initiating an expulsion, in which 
 67.36  case the school administration may extend the suspension up to a 
 68.1   total of 15 days.  In the case of a pupil with a disability, a 
 68.2   suspension may not exceed ten school days school districts must 
 68.3   comply with applicable federal law.  The school administration 
 68.4   shall implement alternative educational services to the extent 
 68.5   that when the suspension exceeds five days.  A separate 
 68.6   administrative conference is required for each period of 
 68.7   suspension. 
 68.8      Sec. 39.  Minnesota Statutes 1997 Supplement, section 
 68.9   127.27, subdivision 11, is amended to read: 
 68.10     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
 68.11  educational services" may include, but are not limited to, 
 68.12  special tutoring, modified curriculum, modified instruction, 
 68.13  other modifications or adaptations, instruction through 
 68.14  electronic media, special education services as indicated by 
 68.15  appropriate assessment, homebound instruction, supervised 
 68.16  homework, or enrollment in another district or in an alternative 
 68.17  learning center under section 124C.45 selected to allow the 
 68.18  pupil to progress toward meeting graduation standards under 
 68.19  section 121.11, subdivision 7c, although in a different setting. 
 68.20     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 68.21  127.31, subdivision 15, is amended to read: 
 68.22     Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school 
 68.23  administrator shall prepare and enforce an admission or 
 68.24  readmission plan for any pupil who is suspended, excluded, or 
 68.25  expelled from school.  The plan may include measures to improve 
 68.26  the pupil's behavior and require parental involvement in the 
 68.27  admission or readmission process, and may indicate the 
 68.28  consequences to the pupil of not improving the pupil's behavior. 
 68.29     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 68.30  127.32, is amended to read: 
 68.31     127.32 [APPEAL.] 
 68.32     A party to an exclusion or expulsion decision made under 
 68.33  sections 127.26 to 127.39 may appeal the decision to the 
 68.34  commissioner of children, families, and learning within 21 
 68.35  calendar days of school board action.  Upon being served with a 
 68.36  notice of appeal, the district shall provide the commissioner 
 69.1   and the parent or guardian with a complete copy of the hearing 
 69.2   record within five days of its receipt of the notice of appeal.  
 69.3   All written submissions by the appellant must be submitted and 
 69.4   served on the respondent within ten days of its actual receipt 
 69.5   of the transcript.  All written submissions by the respondent 
 69.6   must be submitted and served on the appellant within ten days of 
 69.7   its actual receipt of the written submissions of the appellant.  
 69.8   The decision of the school board must be implemented during the 
 69.9   appeal to the commissioner. 
 69.10     In an appeal under this section, the commissioner may 
 69.11  affirm the decision of the agency, may remand the decision for 
 69.12  additional findings, or may reverse or modify the decision if 
 69.13  the substantial rights of the petitioners may have been 
 69.14  prejudiced because the administrative findings, inferences, 
 69.15  conclusions, or decisions are: 
 69.16     (1) in violation of constitutional provisions; 
 69.17     (2) in excess of the statutory authority or jurisdiction of 
 69.18  the school district; 
 69.19     (3) made upon unlawful procedure, except as provided in 
 69.20  section 127.311; 
 69.21     (4) affected by other error of law; 
 69.22     (5) unsupported by substantial evidence in view of the 
 69.23  entire record submitted; or 
 69.24     (6) arbitrary or capricious. 
 69.25  The commissioner or the commissioner's representative shall make 
 69.26  a final decision based upon the record of evidence presented at 
 69.27  the hearing.  The commissioner shall issue a decision within 30 
 69.28  calendar days of receiving the entire record and the parties' 
 69.29  written submission on appeal.  The commissioner's decision shall 
 69.30  be final and binding upon the parties after the time for appeal 
 69.31  expires under section 127.33. 
 69.32     Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 69.33  127.36, subdivision 1, is amended to read: 
 69.34     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 69.35  board shall report each exclusion or expulsion within 30 days of 
 69.36  the effective date of the action to the commissioner of 
 70.1   children, families, and learning.  This report shall include a 
 70.2   statement of alternative educational services given the pupil 
 70.3   before beginning exclusion or expulsion proceedings, and the 
 70.4   reason for, the effective date, and the duration of the 
 70.5   exclusion or expulsion.  
 70.6      Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 70.7   127.38, is amended to read: 
 70.8      127.38 [POLICIES TO BE ESTABLISHED.] 
 70.9      (a) The commissioner of children, families, and learning 
 70.10  shall promulgate guidelines to assist each school board.  Each 
 70.11  school board shall establish uniform criteria for dismissal and 
 70.12  adopt written policies and rules to effectuate the purposes of 
 70.13  sections 127.26 to 127.39.  The policies shall emphasize 
 70.14  preventing dismissals through early detection of problems and 
 70.15  shall be designed to address students' inappropriate behavior 
 70.16  from recurring.  The policies shall recognize the continuing 
 70.17  responsibility of the school for the education of the pupil 
 70.18  during the dismissal period.  The alternative educational 
 70.19  services, if the pupil wishes to take advantage of them, must be 
 70.20  adequate to allow the pupil to make progress towards meeting the 
 70.21  graduation standards adopted under section 121.11, subdivision 
 70.22  7c, and help prepare the pupil for readmission.  
 70.23     (b) An area learning center under section 124C.45 may not 
 70.24  prohibit an expelled or excluded pupil from enrolling solely 
 70.25  because a district expelled or excluded the pupil.  The board of 
 70.26  the area learning center may use the provisions of The Pupil 
 70.27  Fair Dismissal Act to exclude a pupil or to require an admission 
 70.28  plan. 
 70.29     (c) The commissioner shall actively encourage and assist 
 70.30  school districts to cooperatively establish alternative 
 70.31  educational services within school buildings or at alternative 
 70.32  program sites that offer instruction to pupils who are dismissed 
 70.33  from school for willfully engaging in dangerous, disruptive, or 
 70.34  violent behavior, including for possessing a firearm in a school 
 70.35  zone. 
 70.36     Sec. 44.  Minnesota Statutes 1996, section 256B.0625, 
 71.1   subdivision 26, is amended to read: 
 71.2      Subd. 26.  [SPECIAL EDUCATION SERVICES.] Medical assistance 
 71.3   covers medical services identified in a recipient's 
 71.4   individualized education plan and covered under the medical 
 71.5   assistance state plan.  The services may be provided by a 
 71.6   Minnesota school district that is enrolled as a medical 
 71.7   assistance provider or its subcontractor, and only if the 
 71.8   services meet all the requirements otherwise applicable if the 
 71.9   service had been provided by a provider other than a school 
 71.10  district, in the following areas:  medical necessity, 
 71.11  physician's orders, documentation, personnel qualifications, and 
 71.12  prior authorization requirements.  Services of a speech-language 
 71.13  pathologist provided under this section are covered 
 71.14  notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 
 71.15  L, if the person: 
 71.16     (1) holds a masters degree in speech-language pathology; 
 71.17     (2) is licensed by the Minnesota board of teaching as an 
 71.18  educational speech-language pathologist; and 
 71.19     (3) either has a certificate of clinical competence from 
 71.20  the American Speech and Hearing Association, has completed the 
 71.21  equivalent educational requirements and work experience 
 71.22  necessary for the certificate or has completed the academic 
 71.23  program and is acquiring supervised work experience to qualify 
 71.24  for the certificate.  Medical assistance coverage for medically 
 71.25  necessary services provided under other subdivisions in this 
 71.26  section may not be denied solely on the basis that the same or 
 71.27  similar services are covered under this subdivision. 
 71.28     Sec. 45.  Laws 1993, chapter 224, article 3, section 32, is 
 71.29  amended to read: 
 71.30     Sec. 32.  [ASL GUIDELINES.] 
 71.31     (a) In determining appropriate licensure requirements for 
 71.32  teachers of deaf and hard of hearing students under Minnesota 
 71.33  Statutes, section 125.189, the board of teaching shall develop 
 71.34  the requirements according to the guidelines described in this 
 71.35  section. 
 71.36     (b) Each teacher must complete the American sign language 
 72.1   sign communication proficiency interview or a comparable 
 72.2   American sign language evaluation that the board of teaching, 
 72.3   the Minnesota association of deaf citizens, and the Minnesota 
 72.4   council for the hearing impaired accept as a means for 
 72.5   establishing the teacher's baseline level of American sign 
 72.6   language skills.  A teacher shall not be charged for this 
 72.7   evaluation. 
 72.8      (c) Each teacher must complete 60 continuing education 
 72.9   credits in American sign language, American sign language 
 72.10  linguistics, or deaf culture for every 120 continuing education 
 72.11  credits the teacher is required to complete to renew a teaching 
 72.12  license. 
 72.13     (d) As a condition of obtaining In order to obtain an 
 72.14  initial license to teach deaf and hard of hearing students, or 
 72.15  to apply for a Minnesota teaching license, after being licensed 
 72.16  to teach in another state, a person must demonstrate in the sign 
 72.17  communication proficiency interview an intermediate plus level 
 72.18  of proficiency in American sign language. 
 72.19     (e) Each teacher applying to renew a teaching license and 
 72.20  each teacher holding a teaching license from another state who 
 72.21  wishes to apply for a Minnesota teaching license must take the 
 72.22  American sign language sign communication proficiency interview 
 72.23  or a comparable American sign language evaluation every five 
 72.24  years until the teacher demonstrates a minimum, or survival 
 72.25  plus, level of proficiency in American sign language. 
 72.26     (f) A teacher working directly with students whose primary 
 72.27  language is American sign language should demonstrate at least 
 72.28  an advanced level of proficiency in American sign language.  The 
 72.29  board should not consider a minimum, or survival plus, level of 
 72.30  proficiency adequate for providing direct instruction to 
 72.31  students whose primary language is American sign language. 
 72.32     (g) To renew a teaching license, a teacher must comply with 
 72.33  paragraphs (c) and (e) in addition to other applicable board 
 72.34  requirements.  A teacher's ability to demonstrate a minimum, or 
 72.35  survival plus, level of proficiency in American sign language is 
 72.36  not a condition for renewing the teacher's license. 
 73.1      (h) A teacher who demonstrates an increased proficiency in 
 73.2   American sign language skill in the American sign language sign 
 73.3   communication proficiency interview or a comparable American 
 73.4   sign language evaluation shall receive credit toward completing 
 73.5   the requirements of paragraph (c).  The number of continuing 
 73.6   education credits the teacher receives is based on the teacher's 
 73.7   increased level of proficiency from the teacher's baseline level:
 73.8      (1) 35 continuing education credits for demonstrating an 
 73.9   intermediate level of proficiency; 
 73.10     (2) 40 continuing education credits for demonstrating an 
 73.11  intermediate plus level of proficiency; 
 73.12     (3) 45 continuing education credits for demonstrating an 
 73.13  advanced level of proficiency; 
 73.14     (4) 50 continuing education credits for demonstrating an 
 73.15  advanced plus level of proficiency; 
 73.16     (5) 55 continuing education credits for demonstrating a 
 73.17  superior level of proficiency; and 
 73.18     (6) 60 continuing education credits for demonstrating a 
 73.19  superior plus level of proficiency. 
 73.20     Sec. 46.  Laws 1997, First Special Session chapter 4, 
 73.21  article 2, section 51, subdivision 15, is amended to read: 
 73.22     Subd. 15.  [SPECIAL EDUCATION AID.] For special education 
 73.23  aid according to Minnesota Statutes, section 124.32: 
 73.24       $282,505,000   .....     1998 
 73.25       $382,519,000 $382,669,000   .....     1999 
 73.26     The 1998 appropriation includes $24,346,000 for 1997 and 
 73.27  $258,159,000 for 1998.  
 73.28     The 1999 appropriation includes $28,684,000 $28,696,000 for 
 73.29  1998 and $353,835,000 $353,973,000 for 1999. 
 73.30     Sec. 47.  Laws 1997, First Special Session chapter 4, 
 73.31  article 2, section 51, subdivision 25, is amended to read: 
 73.32     Subd. 25.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 73.33  HOMELESS CHILDREN.] For matching grants for education programs 
 73.34  for homeless children: 
 73.35       $400,000 $1,100,000     .....     1998
 73.36     This appropriation is available until June 30, 1999.  
 74.1      Sec. 48.  Laws 1997, First Special Session chapter 4, 
 74.2   article 2, section 51, subdivision 29, is amended to read: 
 74.3      Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 74.4   the first grade preparedness program under Minnesota Statutes, 
 74.5   section 124.2613, and for school sites that have provided a 
 74.6   full-day kindergarten option for kindergarten students enrolled 
 74.7   in fiscal years 1996 and 1997: 
 74.8        $5,000,000     .....     1998 
 74.9        $5,000,000 $10,000,000     .....     1999 
 74.10     (b) To be a qualified site, licensed teachers must have 
 74.11  taught the optional full-day kindergarten classes.  A district 
 74.12  that charged a fee for students participating in an optional 
 74.13  full-day program is eligible to receive the grant to provide 
 74.14  full-day kindergarten for all students as required by Minnesota 
 74.15  Statutes, section 124.2613, subdivision 4.  Districts with 
 74.16  eligible sites must apply to the commissioner of children, 
 74.17  families, and learning for a grant. 
 74.18     (c) This appropriation must first be used to fund programs 
 74.19  operating during the 1996-1997 school year under paragraph (b) 
 74.20  and Minnesota Statutes, section 124.2613.  Any remaining funds 
 74.21  may be used to expand the number of sites providing first grade 
 74.22  preparedness programs. 
 74.23     Sec. 49.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
 74.24  AND SERVICES.] 
 74.25     (a) The state board of education must amend all rules 
 74.26  relating to providing special instruction and services to 
 74.27  children with a disability so that the rules do not impose 
 74.28  requirements that exceed federal law.  Consistent with the 
 74.29  report from the commissioner to compare federal and state 
 74.30  special education law, the state board may use the expedited 
 74.31  process under Minnesota Statutes 1997, section 14.389, to amend 
 74.32  these rules. 
 74.33     (b) As of July 1, 1999, any rules relating to providing 
 74.34  special instruction and services to children with a disability 
 74.35  are invalid to the extent they exceed the requirements in 
 74.36  federal law. 
 75.1      Sec. 50.  [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 
 75.2   EDUCATION LAW.] 
 75.3      Subdivision 1.  [REPORT.] The commissioner of children, 
 75.4   families, and learning shall prepare a report comparing existing 
 75.5   and currently proposed federal laws and regulations and state 
 75.6   laws and rules governing special education, which indicates 
 75.7   those state laws and rules governing special education that 
 75.8   exceed or expand upon minimum requirements under federal special 
 75.9   education law or regulations.  The commissioner shall make the 
 75.10  report available by September 30, 1998, to the public, the state 
 75.11  board of education, and the education committees of the 
 75.12  legislature for consideration of amending state rules.  
 75.13     Sec. 51.  [SPEECH-LANGUAGE PATHOLOGISTS.] 
 75.14     The board of teaching shall allow individuals who hold a 
 75.15  certificate of clinical competence from the American 
 75.16  Speech-Language-Hearing Association to be licensed as 
 75.17  speech-language pathologists. 
 75.18     Sec. 52.  [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 
 75.19  SERVICES.] 
 75.20     The board of teaching, in order to comply with section 44, 
 75.21  shall by rule allow individuals who hold a certificate of 
 75.22  clinical competence from the American Speech-Language-Hearing 
 75.23  Association to be licensed as speech-language pathologists. 
 75.24     Sec. 53.  [ADVISORY TASK FORCE ON ACCESS TO 
 75.25  MEDICALLY-RELATED SPECIAL EDUCATION SERVICES.] 
 75.26     Subdivision 1.  [ESTABLISHMENT.] (a) The commissioner of 
 75.27  children, families, and learning shall create an advisory task 
 75.28  force under Minnesota Statutes, section 15.014, to make 
 75.29  recommendations on the role of public and private health plans 
 75.30  in financing and delivering special education services under 
 75.31  Minnesota Statutes, sections 120.17, 120.1701, 120.1703 and 
 75.32  120.1705 to the extent such services are also covered under a 
 75.33  health plan contract or state health care program.  The advisory 
 75.34  task force shall include one representative from each of the 
 75.35  following: one representative from each of the departments of 
 75.36  health, human services, commerce, employee relations, and 
 76.1   department of children, families and learning, recommended by 
 76.2   their respective commissioner; a representative of the Minnesota 
 76.3   council of health plans; a representative of the insurance 
 76.4   federation of Minnesota; a representative of a Minnesota 
 76.5   employer; a representative of the council on disabilities; a 
 76.6   representative recommended jointly by ARC and PACER; a 
 76.7   representative of the Minnesota association of special 
 76.8   educators; a representative of the Minnesota school boards 
 76.9   association; and a member of the interagency coordinating 
 76.10  commission, recommended by the commission chair.  The 
 76.11  commissioner of children, families and learning shall appoint an 
 76.12  additional member who shall serve as the advisory task force 
 76.13  chair, and who shall convene the task force beginning May 1998. 
 76.14     (b) The advisory task force shall study and make 
 76.15  recommendations on the following issues: 
 76.16     (1) the current and appropriate future role of purchasers 
 76.17  of health coverage, including medical assistance, other state 
 76.18  health care programs, and employers in paying for medically 
 76.19  related special education services; 
 76.20     (2) systems and procedures needed to facilitate appropriate 
 76.21  sharing of information necessary for coordinating care and 
 76.22  monitoring the quality of care; 
 76.23     (3) accountability for the quality and cost of health care 
 76.24  services provided under an individual education plan, an 
 76.25  individual family service plan or other standardized written 
 76.26  plan for a child with disabilities; 
 76.27     (4) technical aspects of the billing and reimbursement 
 76.28  system between school districts and health plans, including 
 76.29  payment of enrollee cost sharing; and 
 76.30     (5) any statutory changes needed to effectively implement 
 76.31  task force recommendations. 
 76.32     Subd. 2.  [REPORT; EXPIRATION.] The commissioner shall 
 76.33  submit a written report, with the recommendations of the 
 76.34  advisory task force, to the legislature in compliance with 
 76.35  section 3.195 by December 1, 1998, that discusses and makes 
 76.36  recommendations on those issues listed in subdivision 1, 
 77.1   paragraph (b).  The advisory task force expires January 15, 1999.
 77.2      Sec. 54.  [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 
 77.3      Special education base revenue for independent school 
 77.4   district No. 535, Rochester, is increased by $150,000 for fiscal 
 77.5   year 1998 to reflect the increased special education costs 
 77.6   associated with the opening of a new facility for juvenile 
 77.7   offenders in Olmsted county.  
 77.8      Sec. 55.  [OSSEO LEVY.] 
 77.9      For taxes payable in 1999 only, independent school district 
 77.10  No. 279, Osseo, may levy a tax in an amount not to exceed 
 77.11  $300,000.  The proceeds of this levy must be used to provide 
 77.12  instructional services for at-risk children. 
 77.13     Sec. 56.  [APPROPRIATIONS.] 
 77.14     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 77.15  LEARNING.] The sums indicated in this section are appropriated 
 77.16  from the general fund to the department of children, families, 
 77.17  and learning for the fiscal years designated. 
 77.18     Subd. 2.  [STATEWIDE THIRD-PARTY BILLING SYSTEM; 
 77.19  ASSISTANCE.] For developing and implementing an effective and 
 77.20  efficient statewide third-party billing system under section 2: 
 77.21       $200,000     .....     1999 
 77.22     Funds remain available until expended. 
 77.23     Subd. 3.  [LITIGATION COSTS.] For paying a portion of the 
 77.24  litigation costs a district actually incurs under section 26: 
 77.25       $  500,000     .....     1999 
 77.26     If the amount appropriated is insufficient to fully fund 
 77.27  the aid for litigation costs according to section 124.32, 
 77.28  subdivision 13, the commissioner shall prorate the appropriation 
 77.29  to districts based on the amount of aid calculated for each 
 77.30  district. 
 77.31     Sec. 57.  [REPEALER.] 
 77.32     Subdivision 1.  Minnesota Rules, part 3525.2750, subpart 1, 
 77.33  item B, is repealed. 
 77.34     Subd. 2.  Minnesota Statutes 1996, section 124.32, 
 77.35  subdivision 13, is repealed June 30, 2004. 
 77.36     Sec. 58.  [EFFECTIVE DATE.] 
 78.1      Sections 9, 44, 51, 52, 53, and 57, subdivision 1, are 
 78.2   effective the day following final enactment. 
 78.3                              ARTICLE 3
 78.4          INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY
 78.5      Section 1.  Minnesota Statutes 1996, section 120.1701, 
 78.6   subdivision 5, is amended to read: 
 78.7      Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 78.8   A school district, group of districts, or special education 
 78.9   cooperative, in cooperation with the health and human service 
 78.10  agencies located in the county or counties in which the district 
 78.11  or cooperative is located, shall establish an interagency early 
 78.12  intervention committee for children with disabilities under age 
 78.13  five and their families under this section, and for children 
 78.14  with disabilities ages three to 22 consistent with the 
 78.15  requirements under sections 120.1703 and 120.1705.  Committees 
 78.16  shall include representatives of local and regional health, 
 78.17  education, and county human service agencies; county boards; 
 78.18  school boards; early childhood family education programs; 
 78.19  parents of young children with disabilities under age 12; 
 78.20  current service providers; and may also include representatives 
 78.21  from other private or public agencies and school nurses.  The 
 78.22  committee shall elect a chair from among its members and shall 
 78.23  meet at least quarterly. 
 78.24     (b) The committee shall develop and implement interagency 
 78.25  policies and procedures concerning the following ongoing duties: 
 78.26     (1) develop public awareness systems designed to inform 
 78.27  potential recipient families of available programs and services; 
 78.28     (2) implement interagency child find systems designed to 
 78.29  actively seek out, identify, and refer infants and young 
 78.30  children with, or at risk of, disabilities and their families; 
 78.31     (3) establish and evaluate the identification, referral, 
 78.32  child and family assessment systems, procedural safeguard 
 78.33  process, and community learning systems to recommend, where 
 78.34  necessary, alterations and improvements; 
 78.35     (4) assure the development of individualized family service 
 78.36  plans for all eligible infants and toddlers with disabilities 
 79.1   from birth through age two, and their families, and individual 
 79.2   education plans and individual service plans when necessary to 
 79.3   appropriately serve children with disabilities, age three and 
 79.4   older, and their families and recommend assignment of financial 
 79.5   responsibilities to the appropriate agencies.  Agencies are 
 79.6   encouraged to develop individual family service plans for 
 79.7   children with disabilities, age three and older; 
 79.8      (5) implement a process for assuring that services involve 
 79.9   cooperating agencies at all steps leading to individualized 
 79.10  programs; 
 79.11     (6) facilitate the development of a transitional plan if a 
 79.12  service provider is not recommended to continue to provide 
 79.13  services; 
 79.14     (7) identify the current services and funding being 
 79.15  provided within the community for children with disabilities 
 79.16  under age five and their families; 
 79.17     (8) develop a plan for the allocation and expenditure of 
 79.18  additional state and federal early intervention funds under 
 79.19  United States Code, title 20, section 1471 et seq. (Part H, 
 79.20  Public Law Number 102-119) and United States Code, title 20, 
 79.21  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 79.22     (9) develop a policy that is consistent with section 13.05, 
 79.23  subdivision 9, and federal law to enable a member of an 
 79.24  interagency early intervention committee to allow another member 
 79.25  access to data classified as not public. 
 79.26     (c) The local committee shall also: 
 79.27     (1) participate in needs assessments and program planning 
 79.28  activities conducted by local social service, health and 
 79.29  education agencies for young children with disabilities and 
 79.30  their families; 
 79.31     (2) review and comment on the early intervention section of 
 79.32  the total special education system for the district, the county 
 79.33  social service plan, the section or sections of the community 
 79.34  health services plan that address needs of and service 
 79.35  activities targeted to children with special health care needs, 
 79.36  and the section of the maternal and child health special project 
 80.1   grants that address needs of and service activities targeted to 
 80.2   children with chronic illness and disabilities; and 
 80.3      (3) prepare a yearly summary on the progress of the 
 80.4   community in serving young children with disabilities, and their 
 80.5   families, including the expenditure of funds, the identification 
 80.6   of unmet service needs identified on the individual family 
 80.7   services plan and other individualized plans, and local, state, 
 80.8   and federal policies impeding the implementation of this section.
 80.9      (d) The summary must be organized following a format 
 80.10  prescribed by the commissioner of the state lead agency and must 
 80.11  be submitted to each of the local agencies and to the state 
 80.12  interagency coordinating council by October 1 of each year. 
 80.13     The departments of children, families, and learning, 
 80.14  health, and human services must provide assistance to the local 
 80.15  agencies in developing cooperative plans for providing services. 
 80.16     Sec. 2.  [120.1703] [COORDINATED INTERAGENCY SERVICES.] 
 80.17     Subdivision 1.  [CITATION.] Sections 120.1703 and 120.1705 
 80.18  shall be cited as the "Interagency Services for Children with 
 80.19  Disabilities Act." 
 80.20     Subd. 2.  [PURPOSE.] It is the policy of the state to 
 80.21  develop and implement a coordinated, multidisciplinary, 
 80.22  interagency intervention service system for children ages three 
 80.23  to 22 with disabilities. 
 80.24     Subd. 3.  [DEFINITIONS.] For purposes of sections 120.1703 
 80.25  and 120.1705, the following terms have the meanings given them: 
 80.26     (a) "Health plan" means (i) a health plan under section 
 80.27  62Q.01, subdivision 3; (ii) a county-based purchasing plan under 
 80.28  section 256B.692; (iii) a self insured health plan established 
 80.29  by a local government under section 471.617; or (iv) self 
 80.30  insured health coverage provided by the state to its employees 
 80.31  or retirees. 
 80.32     (b) For purposes of this section, "health plan company" 
 80.33  means an entity that issues a health plan as defined in 
 80.34  paragraph (a). 
 80.35     (c) "Individual interagency intervention plan" means a 
 80.36  standardized written plan describing those programs or services 
 81.1   and the accompanying funding sources available to eligible 
 81.2   children with disabilities. 
 81.3      (d) "Interagency intervention service system" means a 
 81.4   system that coordinates services and programs required in state 
 81.5   and federal law to meet the needs of eligible children with 
 81.6   disabilities ages three to 22, including: 
 81.7      (1) services provided under the following programs or 
 81.8   initiatives administered by state or local agencies: 
 81.9      (i) the maternal and child health program under title V of 
 81.10  the Social Security Act, United States Code, title 42, sections 
 81.11  701 to 709; 
 81.12     (ii) the Individuals with Disabilities Education Act under 
 81.13  United States Code, title 20, chapter 33, subchapter II, 
 81.14  sections 1411 to 1420; 
 81.15     (iii) medical assistance under the Social Security Act, 
 81.16  United States Code, title 42, chapter 7, subchapter XIX, section 
 81.17  1396 et seq.; 
 81.18     (iv) the Developmental Disabilities Assistance and Bill of 
 81.19  Rights Act, United States Code, title 42, chapter 75, subchapter 
 81.20  II, sections 6021 to 6030, Part B; 
 81.21     (v) the Head Start Act, United States Code, title 42, 
 81.22  chapter 105, subchapter II, sections 9831 to 9852; 
 81.23     (vi) rehabilitation services provided under chapter 268A; 
 81.24     (vii) juvenile court act services provided under sections 
 81.25  260.011 to 260.301; 
 81.26     (viii) the children's mental health collaboratives under 
 81.27  section 245.493; 
 81.28     (ix) the family service collaboratives under section 
 81.29  121.8355; 
 81.30     (x) the family community support plan under section 
 81.31  245.4881, subdivision 4; 
 81.32     (xi) the Minnesota care program under chapter 256L; 
 81.33     (xii) the community health services grants under chapter 
 81.34  145; and 
 81.35     (xiii) the community social services act funding under the 
 81.36  Social Security Act, USC, title 42, sections 1397 to 1397f; 
 82.1      (2) services provided under a health plan in conformity 
 82.2   with an individual family service plan or an individual 
 82.3   education plan; and 
 82.4      (3) additional appropriate services that local agencies and 
 82.5   counties provide on an individual need basis upon determining 
 82.6   eligibility and receiving a request from the interagency early 
 82.7   intervention committee and the child's parent. 
 82.8      (e) "Children with disabilities" has the meaning given in 
 82.9   section 120.03. 
 82.10     (f) A "standardized written plan" means those individual 
 82.11  services or programs available through the interagency 
 82.12  intervention service system to an eligible child other than the 
 82.13  services or programs described in the child's individual 
 82.14  education plan or the child's individual family service plan. 
 82.15     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 82.16  shall convene an 18-member interagency committee to develop and 
 82.17  implement a coordinated, multidisciplinary, interagency 
 82.18  intervention service system for children ages three to 22 with 
 82.19  disabilities.  The commissioners of commerce, children, 
 82.20  families, and learning, health, human rights, human services, 
 82.21  economic security, and corrections shall each appoint two 
 82.22  committee members from their departments; the association of 
 82.23  Minnesota counties shall appoint two county representatives, one 
 82.24  of whom must be an elected official, as committee members; and 
 82.25  the Minnesota school boards association and the school nurse 
 82.26  association of Minnesota shall each appoint one committee 
 82.27  member.  The committee shall select a chair from among its 
 82.28  members. 
 82.29     (b) The committee shall: 
 82.30     (1) identify and assist in removing state and federal 
 82.31  barriers to local coordination of services provided to children 
 82.32  with disabilities; 
 82.33     (2) identify adequate, equitable, and flexible funding 
 82.34  sources to streamline these services; 
 82.35     (3) develop guidelines for implementing policies that 
 82.36  ensure a comprehensive and coordinated system of all state and 
 83.1   local agency services, including multidisciplinary assessment 
 83.2   practices for children with disabilities ages three to 22; 
 83.3      (4) develop, consistent with federal law, a standardized 
 83.4   written plan for providing services to a child with 
 83.5   disabilities; 
 83.6      (5) identify how current systems for dispute resolution can 
 83.7   be coordinated and develop guidelines for that coordination; 
 83.8      (6) develop an evaluation process to measure the success of 
 83.9   state and local interagency efforts in improving the quality and 
 83.10  coordination of services to children with disabilities ages 
 83.11  three to 22; 
 83.12     (7) develop guidelines to assist the governing boards of 
 83.13  the interagency early intervention committees in carrying out 
 83.14  the duties assigned in section 120.1705, subdivision 1, 
 83.15  paragraph (b); and 
 83.16     (8) carry out other duties necessary to develop and 
 83.17  implement within communities a coordinated, multidisciplinary, 
 83.18  interagency intervention service system for children with 
 83.19  disabilities. 
 83.20     (c) The committee shall consult on an on-going basis with 
 83.21  the state education advisory committee for special education and 
 83.22  the governor's interagency coordinating council in carrying out 
 83.23  its duties under this section, including assisting the governing 
 83.24  boards of the interagency early intervention committees. 
 83.25     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 83.26  commissioner of children, families, and learning, based on 
 83.27  recommendations from the state interagency committee, shall 
 83.28  issue a request for proposals by January 1, 1999, for grants to 
 83.29  the governing boards of interagency intervention committees 
 83.30  under section 120.1705 or a combination of one or more counties 
 83.31  and school districts to establish five voluntary interagency 
 83.32  intervention demonstration projects.  One grant shall be used to 
 83.33  implement a coordinated service system for all eligible children 
 83.34  with disabilities up to age 5 who received services under 
 83.35  section 120.1701.  Each project must be operational by July 1, 
 83.36  1999.  The governing boards of the interagency early 
 84.1   intervention committees and the counties and school districts 
 84.2   receiving project grants must develop efficient ways to 
 84.3   coordinate services and funding for children with disabilities 
 84.4   ages three to 22, consistent with the requirements of sections 
 84.5   120.1703 and 120.1705 and the guidelines developed by the state 
 84.6   interagency committee under this section. 
 84.7      (b) The state interagency committee shall evaluate the 
 84.8   demonstration projects and provide the evaluation results to 
 84.9   interagency early intervention committees. 
 84.10     Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in sections 
 84.11  120.1703 and 120.1705 relieves a health plan company, third 
 84.12  party administrator or other third-party payer of an obligation 
 84.13  to pay for, or changes the validity of an obligation to pay for, 
 84.14  services provided to children with disabilities ages three to 22 
 84.15  and their families. 
 84.16     Subd. 7.  [AGENCY OBLIGATION.] Nothing in sections 120.1703 
 84.17  and 120.1705 removes the obligation of the state, counties, 
 84.18  local school districts, a regional agency, or a local agency or 
 84.19  organization to comply with any federal or state law that 
 84.20  mandates responsibility for finding, assessing, delivering, 
 84.21  assuring, or paying for education or related services for 
 84.22  children with disabilities and their families. 
 84.23     Sec. 3.  [120.1705] [INTERAGENCY EARLY INTERVENTION 
 84.24  COMMITTEE RESPONSIBILITIES.] 
 84.25     Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 84.26  boards of the interagency early intervention committees are 
 84.27  responsible for developing and implementing interagency policies 
 84.28  and procedures to coordinate services at the local level for 
 84.29  children with disabilities ages three to 22 under guidelines 
 84.30  established by the state interagency committee under section 
 84.31  120.1703, subdivision 4.  Consistent with the requirements in 
 84.32  sections 120.1703 and 120.1705, the governing boards of the 
 84.33  interagency early intervention committees shall organize as a 
 84.34  joint powers board under section 471.59 or enter into an 
 84.35  interagency agreement that establishes a governance structure. 
 84.36     (b) The governing board of each interagency early 
 85.1   intervention committee as defined in section 120.1701, 
 85.2   subdivision 5, paragraph (a), which may include a juvenile 
 85.3   justice professional, shall: 
 85.4      (1) identify and assist in removing state and federal 
 85.5   barriers to local coordination of services provided to children 
 85.6   with disabilities; 
 85.7      (2) identify adequate, equitable, and flexible use of 
 85.8   funding by local agencies for these services; 
 85.9      (3) implement policies that ensure a comprehensive and 
 85.10  coordinated system of all state and local agency services, 
 85.11  including multidisciplinary assessment practices, for children 
 85.12  with disabilities ages three to 22; 
 85.13     (4) use a standardized written plan for providing services 
 85.14  to a child with disabilities developed under section 120.1703; 
 85.15     (5) access the coordinated dispute resolution system and 
 85.16  incorporate the guidelines for coordinating services at the 
 85.17  local level, consistent with section 120.1703; 
 85.18     (6) use the evaluation process to measure the success of 
 85.19  the local interagency effort in improving the quality and 
 85.20  coordination of services to children with disabilities ages 
 85.21  three to 22 consistent with section 120.1703; 
 85.22     (7) develop a transitional plan for children moving from 
 85.23  the interagency early childhood intervention system under 
 85.24  section 120.1701 into the interagency intervention service 
 85.25  system under this section; 
 85.26     (8) coordinate services and facilitate payment for services 
 85.27  from public and private institutions, agencies, and health plan 
 85.28  companies; and 
 85.29     (9) share needed information consistent with state and 
 85.30  federal data practices requirements. 
 85.31     Subd. 2.  [SERVICES.] (a) Parents, physicians, other health 
 85.32  care professionals including school nurses, and education and 
 85.33  human services providers jointly must determine appropriate and 
 85.34  necessary services for eligible children with disabilities ages 
 85.35  three to 22.  The services provided to the child under this 
 85.36  section must conform with the child's standardized written 
 86.1   plan.  The governing board of an interagency early intervention 
 86.2   committee must provide those services contained in a child's 
 86.3   individual education plan and those services for which a legal 
 86.4   obligation exists to the extent funding is available. 
 86.5      (b) Nothing in section 120.1703 or section 120.1705 
 86.6   increases or decreases the obligation of the state, county, 
 86.7   regional agency, local school district, or local agency or 
 86.8   organization to pay for education, health care or social 
 86.9   services.  
 86.10     (c) A health plan may not exclude any medically necessary 
 86.11  covered service solely because the service is or could be 
 86.12  identified in a child's individual family service plan, 
 86.13  individual education plan, a plan established under section 504 
 86.14  of the federal Rehabilitation Act of 1973, or a student's 
 86.15  individual health plan. 
 86.16     Subd. 3.  [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 
 86.17  all governing boards of interagency early intervention 
 86.18  committees statewide must implement a coordinated service system 
 86.19  for children up to age five with disabilities consistent with 
 86.20  the requirements of sections 120.1703 and 120.1705 and the 
 86.21  evaluation results from the demonstration projects under section 
 86.22  120.1703, subdivision 5.  Children with disabilities up to the 
 86.23  age of 22 shall be eligible for coordinated services and their 
 86.24  eligibility to receive such services under this section shall be 
 86.25  phased-in over a four-year period as follows: 
 86.26     (1) July 1, 2001, children up to age nine become eligible; 
 86.27     (2) July 1, 2002, children up to age 14 become eligible; 
 86.28  and 
 86.29     (3) July 1, 2003, children up to age 22 become eligible. 
 86.30     Sec. 4.  Minnesota Statutes 1996, section 121.932, is 
 86.31  amended by adding a subdivision to read: 
 86.32     Subd. 7.  [ESTABLISHMENT.] (a) The commissioner of 
 86.33  children, families, and learning shall establish a program to 
 86.34  provide statewide licenses to commercial electronic databases of 
 86.35  periodicals, encyclopedias, and associated reference materials 
 86.36  for school media centers and public libraries.  The commissioner 
 87.1   shall solicit proposals for access licenses to commercial 
 87.2   vendors of the databases.  Responses to those proposals shall be 
 87.3   evaluated by staff of the office of library development and 
 87.4   services, in the department of children, families, and learning, 
 87.5   Minitex staff, and a representative panel of school media 
 87.6   specialists and public librarians. 
 87.7      (b) Access to the selected databases shall be made 
 87.8   available to a school media center or a public library as 
 87.9   defined in Minnesota Statutes, section 134.001, subdivision 2.  
 87.10  With appropriate authentication, any user of a library may have 
 87.11  access to the databases from a remote site. 
 87.12     (c) The commissioner shall charge fees sufficient to 
 87.13  recover the costs of the licenses.  The fees shall be deposited 
 87.14  in the general fund and are appropriated to the commissioner for 
 87.15  the purposes of this subdivision. 
 87.16     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 87.17  126.79, subdivision 6, is amended to read: 
 87.18     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 87.19  graduation achievement program must provide the opportunity for 
 87.20  participating students to complete: 
 87.21     (1) 250 hours each year, not including regular required 
 87.22  classroom hours, in basic education competency skills; 
 87.23     (2) 250 hours each year of service to the community 
 87.24  service; and 
 87.25     (3) 250 hours each year of cultural enrichment and personal 
 87.26  development, including but not limited to adult mentoring; 
 87.27  participating in community cultural events; developing life 
 87.28  skills for use in the home, workplace, and community; and 
 87.29  learning to set goals, manage time, and make appropriate 
 87.30  behavior choices for varying social situations. 
 87.31     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 87.32  126.79, subdivision 7, is amended to read: 
 87.33     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 87.34  student shall receive a monetary stipend for each hour spent in 
 87.35  a program component activity, plus a bonus upon completion of 
 87.36  each component during each year of the program. 
 88.1      (b) An additional amount equal to or greater than each 
 88.2   student's earned stipends and bonuses must be deposited for the 
 88.3   student in a post-secondary opportunities interest-bearing 
 88.4   account, established by the commissioner through the higher 
 88.5   education services office.  A student may, upon graduation from 
 88.6   high school, use the funds accumulated for the student toward 
 88.7   the costs, including tuition, books, and lab fees, of attending 
 88.8   a Minnesota post-secondary institution or participating in a 
 88.9   Minnesota post-secondary program in a career training program.  
 88.10  Funds accumulated for a student shall be available to the 
 88.11  student from the time the student graduates from high school 
 88.12  until ten years after the date the student entered the learn and 
 88.13  earn graduation achievement program.  After ten years, the 
 88.14  commissioner shall close the student's account and any remaining 
 88.15  money in the account shall revert to the general fund. 
 88.16     The commissioner shall establish a procedure for providing 
 88.17  the monetary stipends and bonuses to students.  The commissioner 
 88.18  may delegate this authority to grantees. 
 88.19     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 88.20  126.79, subdivision 8, is amended to read: 
 88.21     Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 88.22  program coordinator must maintain contact with all participating 
 88.23  students and their families; work with the school to link 
 88.24  students with the resources needed to improve their educational 
 88.25  skills; arrange for service to the community service and 
 88.26  cultural enrichment opportunities for students; maintain records 
 88.27  regarding student completion of program component hours; and 
 88.28  perform other administrative duties as necessary.  A program 
 88.29  coordinator must, to the extent possible, agree to remain with 
 88.30  the program for four years to provide continuity of adult 
 88.31  contact to the participating students. 
 88.32     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 88.33  126.79, subdivision 9, is amended to read: 
 88.34     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 88.35  collect information about participating students and a 
 88.36  demographically similar control group and shall evaluate the 
 89.1   short-term and long-term benefits participating students receive 
 89.2   from the learn and earn graduation achievement program, based on 
 89.3   the outcome measures specified in subdivision 2, and any other 
 89.4   criteria established by the commissioner as part of the grant 
 89.5   application process.  The evaluation must include a statistical 
 89.6   comparison of students participating in the program and the 
 89.7   control group.  The commissioner shall track follow 
 89.8   participating students and the control group for a minimum of 
 89.9   six years from the start of the program.  The commissioner shall 
 89.10  submit a preliminary report to the governor and the chairs of 
 89.11  the senate and house committees having jurisdiction over 
 89.12  education and crime prevention by December 15, 2000, regarding 
 89.13  continuation of the learn and earn graduation achievement 
 89.14  program for participating schools and expansion of the program 
 89.15  to additional schools.  The commissioner shall submit a final 
 89.16  report on this initial project by December 15, 2002. 
 89.17     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 89.18  268.665, subdivision 2, is amended to read: 
 89.19     Subd. 2.  [MEMBERSHIP.] The governor's workforce 
 89.20  development council is composed of 33 members appointed by the 
 89.21  governor.  The members may be removed pursuant to section 
 89.22  15.059.  In selecting the representatives of the council, the 
 89.23  governor shall ensure that 50 percent of the members come from 
 89.24  nominations provided by local workforce councils.  Local 
 89.25  education representatives shall come from nominations provided 
 89.26  by local education to employment partnerships.  The 32 33 
 89.27  members shall represent the following sectors:  
 89.28     (a) State agencies:  the following individuals shall serve 
 89.29  on the council:  
 89.30     (1) commissioner of the Minnesota department of economic 
 89.31  security; 
 89.32     (2) commissioner of the Minnesota department of children, 
 89.33  families, and learning; 
 89.34     (3) commissioner of the Minnesota department of human 
 89.35  services; and 
 89.36     (4) commissioner of the Minnesota department of trade and 
 90.1   economic development. 
 90.2      (b) Business and industry:  six individuals shall represent 
 90.3   the business and industry sectors of Minnesota. 
 90.4      (c) Organized labor:  six individuals shall represent labor 
 90.5   organizations of Minnesota. 
 90.6      (d) Community-based organizations:  four individuals shall 
 90.7   represent community-based organizations of Minnesota.  
 90.8   Community-based organizations are defined by the Job Training 
 90.9   Partnership Act as private nonprofit organizations that are 
 90.10  representative of communities or significant segments of 
 90.11  communities and that provide job training services, agencies 
 90.12  serving youth, agencies serving individuals with disabilities, 
 90.13  agencies serving displaced homemakers, union-related 
 90.14  organizations, and employer-related nonprofit organizations and 
 90.15  organizations serving nonreservation Indians and tribal 
 90.16  governments. 
 90.17     (e) Education:  six individuals shall represent the 
 90.18  education sector of Minnesota as follows:  
 90.19     (1) one individual shall represent local public secondary 
 90.20  education; 
 90.21     (2) one individual shall have expertise in design and 
 90.22  implementation of school-based service-learning; 
 90.23     (3) one individual shall represent post-secondary 
 90.24  education; 
 90.25     (4) one individual shall represent secondary/post-secondary 
 90.26  vocational institutions; 
 90.27     (5) the chancellor of the board of trustees of the 
 90.28  Minnesota state colleges and universities; and 
 90.29     (6) one individual shall have expertise in agricultural 
 90.30  education. 
 90.31     (f) Other:  two individuals shall represent other 
 90.32  constituencies including: 
 90.33     (1) units of local government; and 
 90.34     (2) applicable state or local programs. 
 90.35     The speaker and the minority leader of the house of 
 90.36  representatives shall each appoint a representative to serve as 
 91.1   an ex officio member of the council.  The majority and minority 
 91.2   leaders of the senate shall each appoint a senator to serve as 
 91.3   an ex officio member of the council.  After January 1, 1997, the 
 91.4   Minnesota director of the corporation for national service shall 
 91.5   also serve as an ex officio member.  
 91.6      (g) Appointment:  each member shall be appointed for a term 
 91.7   of three years from the first day of January or July immediately 
 91.8   following their appointment.  Elected officials shall forfeit 
 91.9   their appointment if they cease to serve in elected office.  
 91.10     (h) Members of the council are compensated as provided in 
 91.11  section 15.059, subdivision 3. 
 91.12     Sec. 10.  Minnesota Statutes 1996, section 268.665, 
 91.13  subdivision 3, is amended to read: 
 91.14     Subd. 3.  [PURPOSE; DUTIES.] The governor's workforce 
 91.15  development council shall replace the governor's job training 
 91.16  council and assume all of its requirements, duties, and 
 91.17  responsibilities, under the Job Training Partnership Act, United 
 91.18  States Code, title 29, section 1501, et seq.  Additionally, the 
 91.19  workforce development council shall assume the following duties 
 91.20  and responsibilities:  
 91.21     (a) Coordinate the development, implementation, and 
 91.22  evaluation of the statewide education and employment transitions 
 91.23  system under section 126B.01.  Beginning January 1, 1997, the 
 91.24  council shall also coordinate the development, implementation, 
 91.25  and evaluation of the Minnesota youth services programs under 
 91.26  sections 121.704 to 121.709, and the National and Community 
 91.27  Services Act of 1993, United States Code, title 42, section 
 91.28  12501, et seq.  
 91.29     (b) Review the provision of services and the use of funds 
 91.30  and resources under applicable federal human resource programs 
 91.31  and advise the governor on methods of coordinating the provision 
 91.32  of services and the use of funds and resources consistent with 
 91.33  the laws and regulations governing the programs.  For purposes 
 91.34  of this section, applicable federal and state human resource 
 91.35  programs mean the: 
 91.36     (1) Job Training Partnership Act, United States Code, title 
 92.1   29, section 1501, et seq.; 
 92.2      (2) Carl D. Perkins Vocational and Applied Technology 
 92.3   Education Act, United States Code, title 20, section 2301, et 
 92.4   seq.; 
 92.5      (3) National and Community Service Act of 1993, United 
 92.6   States Code, title 42, section 12501, et seq.; 
 92.7      (4) Adult Education Act, United States Code, title 20, 
 92.8   section 1201, et seq.; 
 92.9      (5) Wagner-Peyser Act, United States Code, title 29, 
 92.10  section 49; 
 92.11     (6) Social Security Act, title IV, part F, (JOBS), United 
 92.12  States Code, title 42, section 681, et seq.; 
 92.13     (7) Food Stamp Act of 1977, United States Code, title 7, 
 92.14  section 6(d)(4), Food Stamp Employment and Training Program, 
 92.15  United States Code, title 7, section 2015(d)(4); 
 92.16     (8) programs defined in section 268.0111, subdivisions 4 
 92.17  and 5; and 
 92.18     (9) School to Work Opportunity Act of 1994, Public Law 
 92.19  Number 103-239.  
 92.20     Additional federal and state programs and resources can be 
 92.21  included within the scope of the council's duties if recommended 
 92.22  by the governor after consultation with the council. 
 92.23     (c) Review federal, state, and local education, 
 92.24  post-secondary, job skills training, and youth employment 
 92.25  programs, and make recommendations to the governor and the 
 92.26  legislature for establishing an integrated seamless system for 
 92.27  providing education, service-learning, and work skills 
 92.28  development services to learners and workers of all ages. 
 92.29     (d) Advise the governor on the development and 
 92.30  implementation of statewide and local performance standards and 
 92.31  measures relating to applicable federal human resource programs 
 92.32  and the coordination of performance standards and measures among 
 92.33  programs.  
 92.34     (e) Administer grants to local education and employment 
 92.35  transition partnerships, including implementation grants under 
 92.36  section 126B.01, grants for youth apprenticeship programs under 
 93.1   section 126B.03, and youth employer grants.  Beginning January 
 93.2   1, 1997, administer youthworks grants under sections 121.704 to 
 93.3   121.709; and 
 93.4      (1) coordinate implementation of the education and 
 93.5   employment transitions system under section 126B.01; 
 93.6      (2) promote education and employment transitions programs 
 93.7   and knowledge and skills of entrepreneurship among employers, 
 93.8   workers, youth, and educators, and encourage employers to 
 93.9   provide meaningful work-based learning opportunities; 
 93.10     (3) evaluate and identify exemplary education and 
 93.11  employment transitions programs and provide technical assistance 
 93.12  to local partnerships to replicate the programs throughout the 
 93.13  state; 
 93.14     (4) establish a performance-based quality assurance system 
 93.15  for consistent statewide evaluation of the performance of the 
 93.16  education and employment transitions system at both the state 
 93.17  and local level; 
 93.18     (5) conduct an annual review of each local education and 
 93.19  employment transitions partnership to ensure it adequately meets 
 93.20  the quality assurance standards established as part of the state 
 93.21  quality assurance system; 
 93.22     (6) develop the methods to assess local partnership 
 93.23  effectiveness; 
 93.24     (7) annually publish a report on the findings of the 
 93.25  evaluations of each local education transitions partnership; 
 93.26     (8) promote knowledge and skills of entrepreneurship among 
 93.27  students in kindergarten through grade 12 by sharing information 
 93.28  about the ways new business development contributes to a strong 
 93.29  economy. 
 93.30     (f) Advise the governor on methods to evaluate applicable 
 93.31  federal human resource programs.  
 93.32     (g) Sponsor appropriate studies to identify human 
 93.33  investment needs in Minnesota and recommend to the governor 
 93.34  goals and methods for meeting those needs.  
 93.35     (h) Recommend to the governor goals and methods for the 
 93.36  development and coordination of a human resource system in 
 94.1   Minnesota.  
 94.2      (i) Examine federal and state laws, rules, and regulations 
 94.3   to assess whether they present barriers to achieving the 
 94.4   development of a coordinated human resource system. 
 94.5      (j) Recommend to the governor and to the federal government 
 94.6   changes in state or federal laws, rules, or regulations 
 94.7   concerning employment and training programs that present 
 94.8   barriers to achieving the development of a coordinated human 
 94.9   resource system. 
 94.10     (k) Recommend to the governor and to the federal government 
 94.11  waivers of laws and regulations to promote coordinated service 
 94.12  delivery. 
 94.13     (l) Sponsor appropriate studies and prepare and recommend 
 94.14  to the governor a strategic plan which details methods for 
 94.15  meeting Minnesota's human investment needs and for developing 
 94.16  and coordinating a state human resource system.  
 94.17     (m) Develop program guidelines and recommend grant approval 
 94.18  procedures to the department of children, families, and learning 
 94.19  for grants under section 126B.01, grants for youth 
 94.20  apprenticeship programs under section 126B.03, and youth 
 94.21  employer grants and youthworks grants under sections 121.704 to 
 94.22  121.709. 
 94.23     Sec. 11.  Laws 1997, First Special Session chapter 4, 
 94.24  article 2, section 51, subdivision 33, is amended to read: 
 94.25     Subd. 33.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
 94.26  For the learn and earn graduation achievement program according 
 94.27  to Minnesota Statutes, section 126.79: 
 94.28       $1,000,000     .....     1998
 94.29       $1,000,000     .....     1999
 94.30     Any balance in the first year does not cancel but is 
 94.31  available in the second year. 
 94.32     This appropriation may be used for administrative and other 
 94.33  start-up costs for applications from nonprofit agencies.  
 94.34  However, no more than 25 percent of the appropriation may be 
 94.35  used for this purpose. 
 94.36     Sec. 12.  Laws 1997, First Special Session chapter 4, 
 95.1   article 9, section 11, is amended to read: 
 95.2      Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
 95.3      (a) For fiscal year 1998 only, the allowance in Minnesota 
 95.4   Statutes, section 124A.22, subdivision 10, paragraph (a), is 
 95.5   increased by: 
 95.6      (1) $24 per pupil unit; or 
 95.7      (2) the lesser of $25,000 or $80 per pupil unit. 
 95.8      Revenue received under this section must be used according 
 95.9   to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
 95.10  (15), (18), (19), (23), and (24). 
 95.11     (b) For the purposes of paragraph (a), "pupil unit" means 
 95.12  fund balance pupil unit as defined in Minnesota Statutes, 
 95.13  section 124A.26, subdivision 1, excluding pupil units 
 95.14  attributable to shared time pupils. 
 95.15     Sec. 13.  Laws 1997, First Special Session chapter 4, 
 95.16  article 3, section 25, subdivision 4, is amended to read: 
 95.17     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 95.18  GRANTS.] For education and employment transitions program: 
 95.19       $4,750,000      .....      1998
 95.20       $4,750,000      .....      1999 
 95.21     $500,000 each year is for development of MnCEPs, an 
 95.22  Internet-based education and employment information system.  
 95.23  These are one-time funds. 
 95.24     $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 
 95.25  year 1999 is for a rebate program for qualifying employers who 
 95.26  employ less than 250 employees, who offer youth internships to 
 95.27  educators.  An employer may apply for a rebate of up to $500 for 
 95.28  each paid youth internship and each educator internship, and up 
 95.29  to $3,000 for each paid youth apprenticeship.  The commissioner 
 95.30  shall determine the application and payment process. 
 95.31     $450,000 each year is for youth apprenticeship program 
 95.32  grants. 
 95.33     $225,000 each year is for youth entrepreneurship grants 
 95.34  under Minnesota Statutes, section 121.72.  Of this amount, 
 95.35  $25,000 each year is for the high school student 
 95.36  entrepreneurship program in independent school district No. 175, 
 96.1   Westbrook.  This appropriation shall be used for expenses, 
 96.2   including, but not limited to, salaries, travel, seminars, 
 96.3   equipment purchases, contractual expenses, and other expenses 
 96.4   related to the student-run business. 
 96.5      $125,000 each year is for youth employer grants under Laws 
 96.6   1995, First Special Session chapter 3, article 4, section 28. 
 96.7      $150,000 each year is for parent and community awareness 
 96.8   training. 
 96.9      $825,000 $775,000 each year is for the development of 
 96.10  career assessment benchmarks, lifework portfolios, industry 
 96.11  skill standards, curriculum development, career academies, and 
 96.12  career programs for elementary, middle school, and at-risk 
 96.13  learners. 
 96.14     $400,000 each year is for state level activities, including 
 96.15  the governor's workforce council. 
 96.16     $275,000 each year is for development of occupational 
 96.17  information. 
 96.18     $300,000 each year is for a grant to be made available to a 
 96.19  county government that has established school-to-work projects 
 96.20  with schools located in a city of the first class.  These grants 
 96.21  must be used to expand the number of at-risk students 
 96.22  participating in these school-to-work projects.  Priority must 
 96.23  be given to projects that demonstrate collaboration between 
 96.24  among private and public employers, collective bargaining 
 96.25  representatives, school officials, and the county government and 
 96.26  which prepare at-risk students for long-term employment with 
 96.27  private sector employers paying a minimum of 150 percent of the 
 96.28  federal poverty level for a family of four and with the majority 
 96.29  of their employees in collective bargaining units. 
 96.30     $250,000 each year is for agricultural school-to-work 
 96.31  grants. 
 96.32     $25,000 is for a grant to the Minnesota Historical Society 
 96.33  for money canceled in fiscal year 1997. 
 96.34     $50,000 each year is awarded to the Minnesota valley action 
 96.35  council, the fiscal agent for the south central tri-county 
 96.36  school-to-work partnership, to serve as a model for the state in 
 97.1   demonstrating the capability of a multicounty partnership to 
 97.2   develop both a resource map for sustaining all learners and an 
 97.3   assessment process for employer, labor, and community 
 97.4   organizations involved in the school-to-work initiative.  The 
 97.5   partnership shall submit a report to the commissioner and to the 
 97.6   governor's workforce development council by September 1, 1999, 
 97.7   that includes the resource map, the results of the assessments, 
 97.8   and models for multicounty partnerships to replicate these 
 97.9   activities. 
 97.10     Any balance remaining in the first year does not cancel but 
 97.11  is available in the second year. 
 97.12     Sec. 14.  Laws 1997, chapter 157, section 71, is amended to 
 97.13  read: 
 97.14     Sec. 71.  [SCHOOL BANK PILOT PROJECT.] 
 97.15     (a) A school bank sponsored by independent school district 
 97.16  No. 31, Bemidji, or by independent school district No. 508, St. 
 97.17  Peter, that meets all requirements of paragraph (b) is not 
 97.18  subject to Minnesota Statutes, section 47.03, subdivision 1, or 
 97.19  to any other statute or rule that regulates banks, other 
 97.20  financial institutions, or currency exchanges. 
 97.21     (b) To qualify under paragraph (a), the school bank must: 
 97.22     (1) be operated as part of a high school educational 
 97.23  program and under guidelines adopted by the school board; 
 97.24     (2) be advised on a regular basis by a one or more 
 97.25  state-chartered or federally-chartered financial institution 
 97.26  institutions, but not owned or operated by that any financial 
 97.27  institution; 
 97.28     (3) be located on school premises and have as customers 
 97.29  only students enrolled in, or employees of, the school in which 
 97.30  it is located; and 
 97.31     (4) have a written commitment from the school board, 
 97.32  guaranteeing reimbursement of any depositor's funds lost due to 
 97.33  insolvency of the school bank. 
 97.34     (c) Funds of a school bank that meets the requirements of 
 97.35  this section are not school district or other public funds for 
 97.36  purposes of any state law governing the use or investment of 
 98.1   school district or other public funds. 
 98.2      (d) The school district shall annually file with the 
 98.3   commissioner of commerce a report, prepared by the students and 
 98.4   teachers involved, summarizing the operation of the school bank. 
 98.5      (e) This section expires June 30, 2000.  The commissioner 
 98.6   of commerce shall, no later than December 15, 1999, provide a 
 98.7   written report to the legislature regarding this pilot project 
 98.8   and any recommended legislation regarding school banks. 
 98.9      Sec. 15.  [LIBRARY FOR THE BLIND; APPROPRIATION.] 
 98.10     $60,000 is appropriated in fiscal year 1999 from the 
 98.11  general fund to the department of children, families, and 
 98.12  learning for the purchase and installation of online catalog 
 98.13  software for the Minnesota library for the blind and physically 
 98.14  handicapped. 
 98.15     Sec. 16.  [DEADLINE.] 
 98.16     The governor shall convene the interagency committee 
 98.17  required by Minnesota Statutes, section 120.1703, subdivision 4, 
 98.18  by July 1, 1998. 
 98.19     Sec. 17.  [APPROPRIATION; INTERVENTION DEMONSTRATION 
 98.20  PROJECTS.] 
 98.21     $250,000 is appropriated from the general fund in fiscal 
 98.22  year 1999 to the commissioner of children, families, and 
 98.23  learning for the purpose of establishing five voluntary 
 98.24  interagency intervention demonstration projects under Minnesota 
 98.25  Statutes, section 120.1703, subdivision 5.  The commissioner 
 98.26  shall allocate the grant awards according to the implementation 
 98.27  needs of the grant recipients. 
 98.28     Sec. 18.  [EFFECTIVE DATE.] 
 98.29     Sections 11, 13, 14, and 16 are effective the day following 
 98.30  final enactment. 
 98.31     Section 12 is effective for revenue for fiscal year 1998. 
 98.32                             ARTICLE 4
 98.33                    FACILITIES AND ORGANIZATION
 98.34     Section 1.  Minnesota Statutes 1997 Supplement, section 
 98.35  121.15, subdivision 6, is amended to read: 
 98.36     Subd. 6.  [REVIEW AND COMMENT.] A school district, a 
 99.1   special education cooperative, or a cooperative unit of 
 99.2   government, as defined in section 123.35, subdivision 19b, 
 99.3   paragraph (d), must not initiate an installment contract for 
 99.4   purchase or a lease agreement, hold a referendum for bonds, nor 
 99.5   solicit bids for new construction, expansion, or remodeling of 
 99.6   an educational facility that requires an expenditure in excess 
 99.7   of $400,000 per school site prior to review and comment by the 
 99.8   commissioner.  Facility maintenance projects funded with general 
 99.9   education aid and levy or health and safety revenue are exempt 
 99.10  from this provision unless the commissioner has issued an 
 99.11  unfavorable or negative review and comment on a proposal to 
 99.12  remodel or expand the school site.  Facility maintenance 
 99.13  projects include roof replacement, boiler replacement, wiring 
 99.14  for technology, and other projects designed to replace and 
 99.15  upgrade components of the building.  A school board shall not 
 99.16  separate portions of a single project into components to avoid 
 99.17  the requirements of this subdivision.  
 99.18     Sec. 2.  Minnesota Statutes 1996, section 124.239, as 
 99.19  amended by Laws 1997, chapter 231, article 1, sections 1 to 3, 
 99.20  and Laws 1997, First Special Session chapter 5, sections 38 to 
 99.21  41, is amended to read: 
 99.22     124.239 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
 99.23  PROGRAM.] 
 99.24     Subdivision 1.  [TO QUALIFY.] An independent or special 
 99.25  school district qualifies to participate in the alternative 
 99.26  facilities bonding and levy revenue program if the district has: 
 99.27     (1) more than 66 students per grade; 
 99.28     (2) over 1,850,000 square feet of space; 
 99.29     (3) average age of building space is 20 15 years or older; 
 99.30     (4) insufficient funds from projected health and safety 
 99.31  revenue and capital facilities revenue to meet the requirements 
 99.32  for deferred maintenance, to make accessibility improvements, or 
 99.33  to make fire, safety, or health repairs; and 
 99.34     (5) a ten-year facility plan approved by the commissioner 
 99.35  according to subdivision 2. 
 99.36     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
100.1   have a ten-year facility plan approved by the commissioner that 
100.2   includes an inventory of projects and costs that would be 
100.3   eligible for: 
100.4      (1) health and safety revenue; 
100.5      (2) disabled access levy; and 
100.6      (3) deferred capital expenditures and maintenance projects 
100.7   necessary to prevent further erosion of facilities. 
100.8      (b) The school district must: 
100.9      (1) annually update the plan; 
100.10     (2) biennially submit a facility maintenance plan; and 
100.11     (3) indicate whether the district will issue bonds to 
100.12  finance the plan or levy annually include program revenue under 
100.13  the facilities equalization program, under section 124.95, for 
100.14  the costs. 
100.15     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
100.16  approval of its school board and the commissioner, may issue 
100.17  general obligation bonds under this section to finance approved 
100.18  facilities plans.  Chapter 475, except sections 475.58 and 
100.19  475.59, must be complied with.  The district may levy under 
100.20  subdivision 5 for the debt service revenue.  The authority to 
100.21  issue bonds under this section is in addition to any bonding 
100.22  authority authorized by this chapter, or other law.  The amount 
100.23  of bonding authority authorized under this section must be 
100.24  disregarded in calculating the bonding or net debt limits of 
100.25  this chapter, or any other law other than section 475.53, 
100.26  subdivision 4. 
100.27     Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
100.28  district that participates in the alternative facilities bonding 
100.29  and levy revenue program is not eligible to levy and cannot 
100.30  receive aid for revenue under sections 124.83 and 124.84 for any 
100.31  capital projects funded under this section.  A district may levy 
100.32  and receive aid for health and safety receive revenue for 
100.33  environmental management costs and health and safety regulatory, 
100.34  hazard assessment, record keeping, and maintenance programs as 
100.35  defined in section 124.494, subdivision 2, and approved by the 
100.36  commissioner. 
101.1      Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
101.2   local board approval, may levy receive revenue for costs related 
101.3   to an approved facility plan as follows:  
101.4      (a) if the district has indicated to the commissioner that 
101.5   bonds will be issued, the district may levy receive revenue for 
101.6   the principal and interest payments on outstanding bonds issued 
101.7   according to subdivision 3 after reduction for any alternative 
101.8   facilities aid receivable under subdivision 5a; or 
101.9      (b) if the district has indicated to the commissioner that 
101.10  the plan will be funded through levy, the district may levy 
101.11  according to the schedule approved in the plan. 
101.12     Subd. 5a.  [ALTERNATIVE FACILITIES AID.] A district's 
101.13  alternative facilities aid is the amount equal to the district's 
101.14  annual debt service costs, provided that the amount does not 
101.15  exceed the amount certified to be levied for those purposes for 
101.16  taxes payable in 1997. 
101.17     Subd. 5b.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
101.18  amount not to exceed $17,000,000 is appropriated from the 
101.19  general fund to the commissioner of children, families, and 
101.20  learning for fiscal year 2000 and each year thereafter for 
101.21  payment of alternative facilities aid under subdivision 5a.  The 
101.22  2000 appropriation includes $1,700,000 for 1999 and $15,300,000 
101.23  for 2000. 
101.24     (b) The appropriation in paragraph (a) must be reduced by 
101.25  the amount of any money specifically appropriated for the same 
101.26  purpose in any year from any state fund. 
101.27     Subd. 6.  [SEPARATE ACCOUNT.] A district must establish a 
101.28  separate account under the uniform financial accounting and 
101.29  reporting standards (UFARS) for this program.  If the district's 
101.30  levy revenue exceeds the necessary interest and principal 
101.31  payments and noncapital health and safety costs, the district 
101.32  must reserve the revenue to replace future bonding authority, 
101.33  prepay bonds authorized under this program, or make payments on 
101.34  principal and interest. 
101.35     Sec. 3.  Minnesota Statutes 1996, section 124.755, 
101.36  subdivision 1, is amended to read: 
102.1      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
102.2   section, the term "debt obligation" means either:  (1) a tax or 
102.3   aid anticipation certificate of indebtedness; (2) a certificate 
102.4   of participation issued under section 124.91, subdivision 7; or 
102.5   (3) a general obligation bond.  
102.6      Sec. 4.  Minnesota Statutes 1996, section 124.83, 
102.7   subdivision 8, is amended to read: 
102.8      Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
102.9   COST.] (a) A district's cost for health, safety, and 
102.10  environmental management is limited to the lesser of:  
102.11     (1) actual cost to implement their plan; or 
102.12     (2) an amount determined by the commissioner, based on 
102.13  enrollment, building age, and size. 
102.14     (b) Effective July 1, 1993, The department of children, 
102.15  families, and learning may contract with regional service 
102.16  organizations, private contractors, Minnesota safety council, or 
102.17  state agencies to provide management assistance to school 
102.18  districts for health and safety capital projects.  Management 
102.19  assistance is the development of written programs for the 
102.20  identification, recognition and control of hazards, and 
102.21  prioritization and scheduling of district health and safety 
102.22  capital projects. 
102.23     (c) Notwithstanding paragraph (b), the department may 
102.24  approve revenue, up to the limit defined in paragraph (a) for 
102.25  districts having an approved health, safety, and environmental 
102.26  management plan that uses district staff to accomplish 
102.27  coordination and provided services. 
102.28     Sec. 5.  Minnesota Statutes 1996, section 124.84, 
102.29  subdivision 3, is amended to read: 
102.30     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
102.31  be eligible for revenue up to $300,000 under this section, as 
102.32  approved by the commissioner.  The approved amount may be levied 
102.33  received over eight or fewer years. 
102.34     Sec. 6.  Minnesota Statutes 1996, section 124.84, 
102.35  subdivision 4, is amended to read: 
102.36     Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
103.1   Notwithstanding subdivision 3, a district that has combined or 
103.2   consolidated may levy receive revenue up to 50 percent times 
103.3   $300,000 times the number of former districts that operated on 
103.4   June 30, 1991, in the area that now makes up the combined or 
103.5   consolidated district.  The approved amount is reduced by any 
103.6   amount levied under subdivision 3 in the consolidated or 
103.7   combined district or in the former districts that make up the 
103.8   consolidated or combined district.  Levy authority under this 
103.9   subdivision expires at the same time as levy authority under 
103.10  subdivision 3. 
103.11     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
103.12  124.91, subdivision 1, is amended to read: 
103.13     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
103.14  district finds it economically advantageous to rent or lease a 
103.15  building or land for any instructional purposes or for school 
103.16  storage or furniture repair, and it determines that the 
103.17  operating capital revenue authorized under section 124A.22, 
103.18  subdivision 10, is insufficient for this purpose, it may apply 
103.19  to the commissioner for permission to make an additional capital 
103.20  expenditure levy to increase its equalized facilities revenue 
103.21  under section 124.95, subdivision 4, for this purpose.  An 
103.22  application for permission to levy under this subdivision 
103.23  increase the equalized facilities revenue must contain financial 
103.24  justification for the proposed levy increase, the terms and 
103.25  conditions of the proposed lease, and a description of the space 
103.26  to be leased and its proposed use.  
103.27     (b) The criteria for approval of applications to levy under 
103.28  this subdivision must include:  the reasonableness of the price, 
103.29  the appropriateness of the space to the proposed activity, the 
103.30  feasibility of transporting pupils to the leased building or 
103.31  land, conformity of the lease to the laws and rules of the state 
103.32  of Minnesota, and the appropriateness of the proposed lease to 
103.33  the space needs and the financial condition of the district.  
103.34  The commissioner must not authorize a levy revenue under this 
103.35  subdivision in an amount greater than the cost to the district 
103.36  of renting or leasing a building or land for approved purposes.  
104.1   The proceeds of this levy must not be used for custodial or 
104.2   other maintenance services.  A district may not levy receive 
104.3   revenue under this subdivision for the purpose of leasing or 
104.4   renting a district-owned building to itself. 
104.5      (c) For agreements finalized after July 1, 1997, a district 
104.6   may not levy receive revenue under this subdivision for the 
104.7   purpose of leasing:  (1) a newly constructed building used 
104.8   primarily for regular kindergarten, elementary, or secondary 
104.9   instruction; or (2) a newly constructed building addition or 
104.10  additions used primarily for regular kindergarten, elementary, 
104.11  or secondary instruction that contains more than 20 percent of 
104.12  the square footage of the previously existing building. 
104.13     (d) The total levy revenue under this subdivision for a 
104.14  district for any year must not exceed $100 times the actual 
104.15  pupil units for the fiscal year to which the levy is 
104.16  attributable. 
104.17     Sec. 8.  Minnesota Statutes 1996, section 124.91, 
104.18  subdivision 2, is amended to read: 
104.19     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
104.20  A district may annually levy increase the amount of its 
104.21  equalized facilities revenue needed to make payments required by 
104.22  a lease purchase agreement, installment purchase agreement, or 
104.23  other deferred payment agreement authorized by Minnesota 
104.24  Statutes 1989 Supplement, section 465.71, if:  
104.25     (1) the agreement was approved by the commissioner before 
104.26  July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
104.27  section 275.125, subdivision 11d; or 
104.28     (2) the district levied in 1989 for the payments. 
104.29     Sec. 9.  Minnesota Statutes 1996, section 124.91, 
104.30  subdivision 4, is amended to read: 
104.31     Subd. 4.  [COOPERATING DISTRICTS.] A district that has an 
104.32  agreement according to section 122.535 or 122.541 may levy 
104.33  increase its equalized facilities revenue under section 124.95, 
104.34  subdivision 4, for the repair costs, as approved by the 
104.35  department of children, families, and learning, of a building 
104.36  located in another district that is a party to the agreement. 
105.1      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
105.2   124.91, subdivision 5, is amended to read: 
105.3      Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
105.4   with its central administrative office located within economic 
105.5   development region one, two, three, four, five, six, seven, 
105.6   eight, nine, and ten may apply to the commissioner of children, 
105.7   families, and learning for ITV revenue up to the greater of .5 
105.8   percent of the adjusted net tax capacity of the district or 
105.9   $25,000.  Eligible interactive television expenditures include 
105.10  the construction, maintenance, and lease costs of an interactive 
105.11  television system for instructional purposes.  An eligible 
105.12  school district that has completed the construction of its 
105.13  interactive television system may also purchase computer 
105.14  hardware and software used primarily for instructional purposes 
105.15  and access to the Internet provided that its total expenditures 
105.16  for interactive television maintenance and lease costs and for 
105.17  computer hardware and software under this subdivision do not 
105.18  exceed its interactive television revenue for fiscal year 1998.  
105.19  The approval by the commissioner of children, families, and 
105.20  learning and the application procedures set forth in subdivision 
105.21  1 shall apply to the revenue in this subdivision.  In granting 
105.22  the approval, the commissioner must consider whether the 
105.23  district is maximizing efficiency through peak use and off-peak 
105.24  use pricing structures. 
105.25     (b) To obtain ITV revenue, a district may levy an amount 
105.26  increase its equalized facilities revenue under section 124.95, 
105.27  subdivision 4, not to exceed the district's ITV revenue times 
105.28  the lesser of one or the ratio of: 
105.29     (1) the quotient derived by dividing the adjusted net tax 
105.30  capacity of the district for the year before the year the levy 
105.31  increase in its equalized facilities revenue is certified by the 
105.32  actual pupil units in the district for the year to which 
105.33  the levy equalized facilities revenue increase is attributable; 
105.34  to 
105.35     (2) 100 percent of the equalizing factor as defined in 
105.36  section 124A.02, subdivision 8, for the year to which the levy 
106.1   is attributable $10,000. 
106.2      (c) A district's ITV aid is the difference between its ITV 
106.3   revenue and the ITV levy. 
106.4      (d) The revenue in the first year after reorganization for 
106.5   a district that has reorganized under section 122.22, 122.23, or 
106.6   122.241 to 122.247 shall be the greater of: 
106.7      (1) the revenue computed for the reorganized district under 
106.8   paragraph (a), or 
106.9      (2)(i) for two districts that reorganized, 75 percent of 
106.10  the revenue computed as if the districts involved in the 
106.11  reorganization were separate, or 
106.12     (ii) for three or more districts that reorganized, 50 
106.13  percent of the revenue computed as if the districts involved in 
106.14  the reorganization were separate. 
106.15     (e) (d) The revenue in paragraph (d) (c) is increased by 
106.16  the difference between the initial revenue and ITV lease costs 
106.17  for leases that had been entered into by the preexisting 
106.18  districts on the effective date of the consolidation or 
106.19  combination and with a term not exceeding ten years.  This 
106.20  increased revenue is only available for the remaining term of 
106.21  the lease.  However, in no case shall the revenue exceed the 
106.22  amount available had the preexisting districts received revenue 
106.23  separately. 
106.24     (f) (e) Effective for fiscal year 2000, the revenue under 
106.25  this section shall be 75 percent of the amount determined in 
106.26  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
106.27  paragraph (a); and for fiscal year 2002, 25 percent of the 
106.28  amount in paragraph (a). 
106.29     (g) (f) This section expires effective for revenue for 
106.30  fiscal year 2003, or when leases in existence on the effective 
106.31  date of Laws 1997, First Special Session chapter 4, expire.  
106.32     Sec. 11.  Minnesota Statutes 1996, section 124.91, 
106.33  subdivision 6, is amended to read: 
106.34     Subd. 6.  [ENERGY CONSERVATION.] For loans existing on 
106.35  January 1, 1998, the school district may annually levy include 
106.36  as revenue under section 124.95, without the approval of a 
107.1   majority of the voters in the district, an amount sufficient to 
107.2   repay the annual principal and interest of the loan made 
107.3   pursuant to sections 216C.37 and 298.292 to 298.298.  For energy 
107.4   loans executed after January 1, 1998, school districts must 
107.5   annually transfer from the general fund to the debt redemption 
107.6   fund the amount sufficient to pay interest and principal on the 
107.7   bonds.  
107.8      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
107.9   124.91, subdivision 7, as amended by Laws 1997, Third Special 
107.10  Session chapter 3, section 27, is amended to read: 
107.11     Subd. 7.  [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 
107.12  application to, and approval by, the commissioner in accordance 
107.13  with the procedures and limits in subdivision 1, paragraphs (a) 
107.14  and (b), a district, as defined in this subdivision, may: 
107.15     (1) purchase real or personal property under an installment 
107.16  contract or may lease real or personal property with an option 
107.17  to purchase under a lease purchase agreement, by which 
107.18  installment contract or lease purchase agreement title is kept 
107.19  by the seller or vendor or assigned to a third party as security 
107.20  for the purchase price, including interest, if any; and 
107.21     (2) annually levy increase its equalized facilities revenue 
107.22  under section 124.95, subdivision 4, by the amounts necessary to 
107.23  pay the district's obligations under the installment contract or 
107.24  lease purchase agreement. 
107.25     (b) The obligation created by the installment contract or 
107.26  the lease purchase agreement must not be included in the 
107.27  calculation of net debt for purposes of section 475.53, and does 
107.28  not constitute debt under other law.  An election is not 
107.29  required in connection with the execution of the installment 
107.30  contract or the lease purchase agreement. 
107.31     (c) The proceeds of the levy equalized facilities revenue 
107.32  increase authorized by this subdivision must not be used to 
107.33  acquire a facility to be primarily used for athletic or school 
107.34  administration purposes. 
107.35     (d) For the purposes of this subdivision, "district" means: 
107.36     (1) a school district required to have a comprehensive plan 
108.1   for the elimination of segregation whose plan has been 
108.2   determined by the commissioner to be in compliance with the 
108.3   state board of education rules relating to equality of 
108.4   educational opportunity and school desegregation; or 
108.5      (2) a school district that participates in a joint program 
108.6   for interdistrict desegregation with a district defined in 
108.7   clause (1) if the facility acquired under this subdivision is to 
108.8   be primarily used for the joint program. 
108.9      (e) Notwithstanding subdivision 1, the prohibition against 
108.10  a levy by a district to lease receiving revenue for the purpose 
108.11  of leasing or rent renting a district-owned building to itself 
108.12  does not apply to levies revenues otherwise authorized by this 
108.13  subdivision. 
108.14     (f) For the purposes of this subdivision, any references in 
108.15  subdivision 1 to building or land shall include personal 
108.16  property. 
108.17     Sec. 13.  Minnesota Statutes 1996, section 124.95, as 
108.18  amended by Laws 1997, First Special Session chapter 4, article 
108.19  4, section 20, is amended to read: 
108.20     124.95 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
108.21     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
108.22  section, the eligible debt service facilities revenue of a 
108.23  district is defined as follows: 
108.24     (1) the amount needed to produce between five and six 
108.25  percent in excess of the amount needed to meet when due the 
108.26  principal and interest payments on the obligations of the 
108.27  district for eligible projects according to subdivision 2, 
108.28  including the amounts necessary for repayment of energy loans 
108.29  according to section 216C.37 or sections 298.292 to 298.298 
108.30  124.91, subdivision 6, debt service loans and capital loans, 
108.31  lease purchase payments under section 124.91, subdivisions 2 and 
108.32  3, alternative facilities levies revenue under section 124.239, 
108.33  subdivision 5, historic building revenue, under section 124.825, 
108.34  subdivision 2; health and safety revenue, under section 124.83, 
108.35  subdivision 3; handicapped access and fire safety revenue, under 
108.36  section 124.84, subdivision 3; building lease revenue, under 
109.1   section 124.91, subdivision 1; cooperative building repair 
109.2   revenue, under section 124.91, subdivision 4; and interactive 
109.3   television revenue, under section 124.91, subdivision 5, minus 
109.4      (2) the amount of debt service excess levy reduction for 
109.5   that school year calculated according to the procedure 
109.6   established by the commissioner. 
109.7      (b) The obligations in this paragraph are excluded from 
109.8   eligible debt service facilities revenue: 
109.9      (1) obligations under section 124.2445; 
109.10     (2) the part of debt service principal and interest paid 
109.11  from the taconite environmental protection fund or northeast 
109.12  Minnesota economic protection trust; 
109.13     (3) obligations issued under Laws 1991, chapter 265, 
109.14  article 5, section 18, as amended by Laws 1992, chapter 499, 
109.15  article 5, section 24; and 
109.16     (4) obligations under section 124.2455. 
109.17     (c) For purposes of this section, if a preexisting school 
109.18  district reorganized under section 122.22, 122.23, or 122.241 to 
109.19  122.248 is solely responsible for retirement of the preexisting 
109.20  district's bonded indebtedness, capital loans or debt service 
109.21  loans, debt service facilities equalization aid must be computed 
109.22  separately for each of the preexisting school districts. 
109.23     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
109.24  district's debt service levy facilities revenue qualify for debt 
109.25  service facilities equalization: 
109.26     (1) debt service for repayment of principal and interest on 
109.27  bonds issued before July 2, 1992; 
109.28     (2) debt service for bonds refinanced after July 1, 1992, 
109.29  if the bond schedule has been approved by the commissioner and, 
109.30  if necessary, adjusted to reflect a 20-year maturity schedule; 
109.31  and 
109.32     (3) debt service for bonds issued after July 1, 1992, for 
109.33  construction projects that have received a positive review and 
109.34  comment according to section 121.15, if the commissioner has 
109.35  determined that the district has met the criteria under section 
109.36  124.431, subdivision 2, and if the bond schedule has been 
110.1   approved by the commissioner and, if necessary, adjusted to 
110.2   reflect a 20-year maturity schedule; 
110.3      (4) alternative facilities revenue, according to section 
110.4   124.239, subdivision 5; 
110.5      (5) historic building revenue, according to section 
110.6   124.825, subdivision 2; 
110.7      (6) health and safety revenue, according to section 124.83, 
110.8   subdivision 3; 
110.9      (7) handicapped access and fire safety revenue, according 
110.10  to section 124.84, subdivision 3; 
110.11     (8) building lease revenue, according to section 124.91, 
110.12  subdivision 1, excluding revenue for leases for land or 
110.13  facilities for athletic or other extracurricular activities; 
110.14     (9) interactive television revenue, according to section 
110.15  124.91, subdivision 5; and 
110.16     (10) cooperative building repair revenue, according to 
110.17  section 124.91, subdivision 4. 
110.18     (b) The criterion in section 124.431, subdivision 2, 
110.19  paragraph (a), clause (2), shall be considered to have been met 
110.20  if the district in the fiscal year in which the bonds are 
110.21  authorized at an election conducted under chapter 475: 
110.22     (i) if grades 9 through 12 are to be served by the 
110.23  facility, and an average of at least 66 pupils per grade in 
110.24  these grades are served; or 
110.25     (ii) is eligible for elementary or secondary sparsity 
110.26  revenue. 
110.27     (c) The criterion in section 124.431, subdivision 2, 
110.28  paragraph (a), clause (2), shall also be considered to have been 
110.29  met if the construction project under review serves students in 
110.30  kindergarten to grade 8.  Only the debt service levy for that 
110.31  portion of the facility serving students in prekindergarten to 
110.32  grade 8, as determined by the commissioner, shall be eligible 
110.33  for debt service equalization under this paragraph. 
110.34     (d) The criterion described in section 124.431, subdivision 
110.35  2, paragraph (a), clause (9), does not apply to bonds authorized 
110.36  by elections held before July 1, 1992. 
111.1      (e) For the purpose of this subdivision the department 
111.2   shall determine the eligibility for sparsity at the location of 
111.3   the new facility, or the site of the new facility closest to the 
111.4   nearest operating school if there is more than one new facility. 
111.5      (f) Notwithstanding paragraphs (a) to (e), debt service for 
111.6   repayment of principal and interest on bonds issued after July 
111.7   1, 1997, does not qualify for debt service facilities 
111.8   equalization aid unless the primary purpose of the facility is 
111.9   to serve students in kindergarten through grade 12. 
111.10     Subd. 2a.  [NOTIFICATION.] A district eligible for debt 
111.11  service facilities equalization revenue under subdivision 2 must 
111.12  notify the commissioner of the amount of its intended debt 
111.13  service facilities equalization revenue calculated under 
111.14  subdivision 1 for all bonds sold prior to the notification by 
111.15  July 1 of the calendar year the levy is certified. 
111.16     Subd. 3.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
111.17  (a) For fiscal years 1995 and later, the debt service facilities 
111.18  equalization revenue of a district equals the eligible debt 
111.19  service facilities equalization revenue minus the amount raised 
111.20  by a levy of ten nine percent times the adjusted net tax 
111.21  capacity of the district. 
111.22     (b) For fiscal year 1993, debt service equalization revenue 
111.23  equals one-third of the amount calculated in paragraph (a). 
111.24     (c) For fiscal year 1994, debt service equalization revenue 
111.25  equals two-thirds of the amount calculated in paragraph (a). 
111.26     Subd. 4.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
111.27  obtain debt service facilities equalization revenue, a district 
111.28  must levy an amount not to exceed the district's debt service 
111.29  facilities equalization revenue times the lesser of one or the 
111.30  ratio of: 
111.31     (1) the quotient derived by dividing the adjusted net tax 
111.32  capacity of the district for the year before the year the levy 
111.33  is certified by the actual pupil units in the district for the 
111.34  school year ending in the year prior to the year the levy is 
111.35  certified; to 
111.36     (2) $4,707.50. 
112.1      Subd. 5.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
112.2   district's debt service facilities equalization aid is the 
112.3   difference between the debt service facilities equalization 
112.4   revenue and the equalized debt service facilities levy. If the 
112.5   amount of debt service facilities equalization aid actually 
112.6   appropriated for the fiscal year in which this calculation is 
112.7   made is insufficient to fully fund debt service facilities 
112.8   equalization aid, the commissioner shall prorate the amount of 
112.9   aid across all eligible districts. 
112.10     Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
112.11  SCHEDULE.] Debt service Facilities equalization aid must be paid 
112.12  as follows:  30 percent before September 15, 30 percent before 
112.13  December 15, 25 percent before March 15, and a final payment of 
112.14  15 percent by July 15 of the subsequent fiscal year according to 
112.15  section 124.195, subdivision 7. 
112.16     Subd. 7.  [DEBT SERVICE PRIORITY.] Of the aid paid under 
112.17  this section, the state must first allocate the amount 
112.18  attributable to obligations under chapter 475.  Remaining aid 
112.19  may be used for other purposes of this section. 
112.20     Subd. 8.  [PRORATION.] In the event that the alternative 
112.21  facilities aid available for any year is prorated, a district 
112.22  having its aid prorated may levy an additional amount equal to 
112.23  the amount not paid by the state due to proration. 
112.24     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
112.25  124.961, is amended to read: 
112.26     124.961 [DEBT SERVICE FACILITIES APPROPRIATION.] 
112.27     (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 
112.28  year 1999, and $38,390,000 in fiscal year 2000 and each year 
112.29  thereafter is appropriated from the general fund to the 
112.30  commissioner of children, families, and learning for payment 
112.31  of debt service facilities equalization aid under section 
112.32  124.95.  The 2000 appropriation includes $3,842,000 for 1999 and 
112.33  $34,548,000 for 2000. 
112.34     (b) The appropriations in paragraph (a) must be reduced by 
112.35  the amount of any money specifically appropriated for the same 
112.36  purpose in any year from any state fund. 
113.1      Sec. 15.  Minnesota Statutes 1997 Supplement, section 
113.2   124A.22, subdivision 11, is amended to read: 
113.3      Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
113.4   operating capital revenue may be used only for the following 
113.5   purposes: 
113.6      (1) to acquire land for school purposes; 
113.7      (2) to acquire or construct buildings for school purposes, 
113.8   up to $400,000; 
113.9      (3) to rent or lease buildings, including the costs of 
113.10  building repair or improvement that are part of a lease 
113.11  agreement; 
113.12     (4) to improve and repair school sites and buildings, and 
113.13  equip or reequip school buildings with permanent attached 
113.14  fixtures; 
113.15     (5) for a surplus school building that is used 
113.16  substantially for a public nonschool purpose; 
113.17     (6) to eliminate barriers or increase access to school 
113.18  buildings by individuals with a disability; 
113.19     (7) to bring school buildings into compliance with the 
113.20  uniform fire code adopted according to chapter 299F; 
113.21     (8) to remove asbestos from school buildings, encapsulate 
113.22  asbestos, or make asbestos-related repairs; 
113.23     (9) to clean up and dispose of polychlorinated biphenyls 
113.24  found in school buildings; 
113.25     (10) to clean up, remove, dispose of, and make repairs 
113.26  related to storing heating fuel or transportation fuels such as 
113.27  alcohol, gasoline, fuel oil, and special fuel, as defined in 
113.28  section 296.01; 
113.29     (11) for energy audits for school buildings and to modify 
113.30  buildings if the audit indicates the cost of the modification 
113.31  can be recovered within ten years; 
113.32     (12) to improve buildings that are leased according to 
113.33  section 123.36, subdivision 10; 
113.34     (13) to pay special assessments levied against school 
113.35  property but not to pay assessments for service charges; 
113.36     (14) to pay principal and interest on state loans for 
114.1   energy conservation according to section 216C.37 or loans made 
114.2   under the Northeast Minnesota Economic Protection Trust Fund Act 
114.3   according to sections 298.292 to 298.298; 
114.4      (15) to purchase or lease interactive telecommunications 
114.5   equipment; 
114.6      (16) by school board resolution, to transfer money into the 
114.7   debt redemption fund to:  (i) pay the amounts needed to meet, 
114.8   when due, principal and interest payments on certain obligations 
114.9   issued according to chapter 475; or (ii) pay principal and 
114.10  interest on debt service loans or capital loans according to 
114.11  section 124.44; 
114.12     (17) to pay capital expenditure equipment-related 
114.13  assessments of any entity formed under a cooperative agreement 
114.14  between two or more districts; 
114.15     (18) to purchase or lease computers and related materials, 
114.16  copying machines, telecommunications equipment, and other 
114.17  noninstructional equipment; 
114.18     (19) to purchase or lease assistive technology or equipment 
114.19  for instructional programs; 
114.20     (20) to purchase textbooks; 
114.21     (21) to purchase new and replacement library books; 
114.22     (22) to purchase vehicles; 
114.23     (23) to purchase or lease telecommunications equipment, 
114.24  computers, and related equipment for integrated information 
114.25  management systems for: 
114.26     (i) managing and reporting learner outcome information for 
114.27  all students under a results-oriented graduation rule; 
114.28     (ii) managing student assessment, services, and achievement 
114.29  information required for students with individual education 
114.30  plans; and 
114.31     (iii) other classroom information management needs; and 
114.32     (24) to pay personnel costs directly related to the 
114.33  acquisition, operation, and maintenance of telecommunications 
114.34  systems, computers, related equipment, and network and 
114.35  applications software. 
114.36     Sec. 16.  Laws 1997, First Special Session chapter 4, 
115.1   article 4, section 33, is amended to read: 
115.2      Sec. 33.  [1996-1997 AND 1997-1998 AVERAGE DAILY 
115.3   MEMBERSHIP.] 
115.4      Notwithstanding Minnesota Statutes, section 124.17, the 
115.5   1996-1997 and the 1997-1998 average daily membership for a 
115.6   school building closed due to flooding for part of the school 
115.7   year and reopened before the end of the school year shall be the 
115.8   greater of the amount that would have been computed if the 
115.9   school building had not reopened or the amount computed using 
115.10  actual data for the entire school year. 
115.11     Sec. 17.  Laws 1997, First Special Session chapter 4, 
115.12  article 4, section 34, is amended to read: 
115.13     Sec. 34.  [FISCAL YEAR YEARS 1998 AND 1999 DECLINING PUPIL 
115.14  UNIT AID.] 
115.15     For fiscal year years 1998 and 1999 only, a school district 
115.16  with one or more school buildings closed during the 1996-1997 
115.17  school year due to flooding is eligible for declining pupil unit 
115.18  aid equal to the greater of zero or the product of the general 
115.19  education formula allowance for fiscal year 1998 times the 
115.20  difference between the district's actual pupil units for the 
115.21  1996-1997 school year and the district's actual pupil units for 
115.22  the 1997-1998 school year. 
115.23     Sec. 18.  Laws 1997, First Special Session chapter 4, 
115.24  article 4, section 35, subdivision 9, is amended to read: 
115.25     Subd. 9.  [FLOOD LOSSES.] For grants and loans to 
115.26  independent school district Nos. 2854, Ada-Borup; 2176, 
115.27  Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 
115.28  and other districts affected by the 1997 floods for expenses 
115.29  associated with the floods not covered by insurance or state or 
115.30  federal disaster relief: 
115.31     $4,700,000     .....     1998
115.32     The commissioner shall award grants and loans to school 
115.33  districts to cover expenses associated with the 1997 floods.  
115.34  The grants or loans may be for capital losses or for 
115.35  extraordinary operating expenses resulting from the floods.  
115.36  School districts shall repay any loan or grant amounts to the 
116.1   department if those amounts are otherwise funded from other 
116.2   sources.  The commissioner shall establish the terms and 
116.3   conditions of any loans and may request any necessary 
116.4   information from school districts before awarding a grant or 
116.5   loan.  This appropriation shall also be used to fund aid under 
116.6   sections 33 and 34. 
116.7      This appropriation is available until June 30, 1999. 
116.8      Sec. 19.  [PHASE-OUT OF DOWN PAYMENT PROGRAM.] 
116.9      Districts that have received authority to levy under 
116.10  Minnesota Statutes, section 124.82, prior to January 1, 1998, 
116.11  may continue to include the amount as revenue under section 
116.12  124.95 for the number of years for which the authority was 
116.13  originally provided.  No other district may qualify under that 
116.14  section.  The revenue must be maintained in a separate account 
116.15  and may only be used for the purpose specified in the ballot. 
116.16     Sec. 20.  [JOINT FACILITY.] 
116.17     Notwithstanding Minnesota Statutes, section 471.19, 
116.18  independent school district No. 277, Westonka, may expend bond 
116.19  funds for building and remodeling a facility to be operated and 
116.20  maintained under a joint-powers agreement with other 
116.21  governmental entities for joint use by the school district and 
116.22  local community agencies.  The school district is not eligible 
116.23  for debt service equalization on the bonds associated with the 
116.24  joint facility. 
116.25     Sec. 21.  [USE OF BOND PROCEEDS.] 
116.26     Notwithstanding Minnesota Statutes, section 475.58, 
116.27  subdivision 4, independent school district No. 742, St. Cloud, 
116.28  upon passage of a written resolution specifying the amount and 
116.29  purpose of the expenditure, may expend up to $800,000 from its 
116.30  building construction fund on a community education site. 
116.31     Sec. 22.  [BONDING AUTHORIZATION.] 
116.32     To provide funds for the acquisition or betterment of 
116.33  school facilities, independent school district No. 625, St. 
116.34  Paul, may by two-thirds majority vote of all the members of the 
116.35  board of directors issue general obligation bonds in one or more 
116.36  series in calendar years 1998 to 2002, both inclusive, as 
117.1   provided in this section.  The aggregate principal amount of any 
117.2   bonds issued under this section for each calendar year must not 
117.3   exceed $15,000,000.  Issuance of the bonds is not subject to 
117.4   Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
117.5   otherwise be issued as provided in Minnesota Statutes, chapter 
117.6   475.  The authority to issue bonds under this section is in 
117.7   addition to any bonding authority authorized by Minnesota 
117.8   Statutes, chapter 124, or other law.  The amount of bonding 
117.9   authority authorized under this section must be disregarded in 
117.10  calculating the bonding limit of Minnesota Statutes, chapter 
117.11  124, or any other law other than Minnesota Statutes, section 
117.12  475.53, subdivision 4. 
117.13     Sec. 23.  [TAX LEVY FOR DEBT SERVICE.] 
117.14     To pay the principal of and interest on bonds issued under 
117.15  section 22, independent school district No. 625, St. Paul, must 
117.16  levy a tax annually in an amount sufficient under Minnesota 
117.17  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
117.18  principal of and interest on the bonds.  The tax authorized 
117.19  under this section is in addition to the taxes authorized to be 
117.20  levied under Minnesota Statutes, chapter 124A or 275, or other 
117.21  law. 
117.22     Sec. 24.  [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 
117.23     Notwithstanding Minnesota Statutes, section 124.83, 
117.24  subdivision 6, independent school district No. 621, Mounds View, 
117.25  is authorized to use up to $300,000 of its health and safety 
117.26  revenue to replace portable classrooms over 20 years old with 
117.27  new construction of classrooms. 
117.28     Sec. 25.  [PREVAILING WAGE; APPROPRIATIONS.] 
117.29     $1,000,000 is appropriated in fiscal year 1998 from the 
117.30  general fund to the department of children, families, and 
117.31  learning for grants to school districts for the reimbursement of 
117.32  additional construction expenditures incurred as a result of the 
117.33  districts complying with Minnesota Statutes, section 121.15, 
117.34  subdivision 1a.  The grants must be awarded to the following 
117.35  districts: 
117.36     (1) independent school district No. 23, Frazee-Vergas; 
118.1      (2) independent school district No. 62, Ortonville; 
118.2      (3) independent school district No. 242, Alden; 
118.3      (4) independent school district No. 390, Lake of the Woods; 
118.4      (5) independent school district No. 392, Le Center; 
118.5      (6) independent school district No. 466, Dassel-Cokato; 
118.6      (7) independent school district No. 534, Stewartville; 
118.7      (8) independent school district No. 542, Battle Lake; 
118.8      (9) independent school district No. 659, Northfield; 
118.9      (10) independent school district No. 727, Big Lake; 
118.10     (11) independent school district No. 882, Monticello; 
118.11     (12) independent school district No. 2135, Maple River; 
118.12     (13) independent school district No. 2172, 
118.13  Kenyon-Wanamingo; and 
118.14     (14) independent school district No. 2184, Luverne.  
118.15     Sec. 26.  [APPROPRIATION.] 
118.16     Subdivision 1.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
118.17  LEARNING.] The following sum is appropriated from the general 
118.18  fund to the commissioner of children, families, and learning in 
118.19  the fiscal year designated. 
118.20     Subd. 2.  [UNFUNDED FLOOD-RELATED COSTS.] For a 
118.21  disbursement grant for costs related to flooding in 1997 not 
118.22  covered by federal disaster relief, state match, or insurance 
118.23  proceeds: 
118.24     $10,075,000    .....    1998 
118.25  Of this amount, $1,400,000 is for special school district No. 1, 
118.26  Minneapolis, for Edison high school; $1,250,000 is for 
118.27  independent school district No. 2854, Ada-Borup; and $7,425,000 
118.28  is for independent school district No. 595, East Grand Forks. 
118.29  Part of the appropriation to independent school district No. 
118.30  595, East Grand Forks, may be used to convert the Valley 
118.31  elementary school into a facility for community, early 
118.32  childhood, and senior programs. 
118.33     The commissioner shall determine a schedule for payments to 
118.34  the school districts. 
118.35     This appropriation is available until June 30, 1999. 
118.36     Subd. 3.  [MONTICELLO.] For a grant to independent school 
119.1   district No. 882, Monticello, for losses related to summer 
119.2   storms in 1997: 
119.3        $100,000     .....     1998 
119.4      This appropriation is available until June 30, 1999. 
119.5      Sec. 27.  [REPEALER.] 
119.6      (a) Minnesota Statutes 1996, sections 124.491; 124.492; 
119.7   124.493; 124.494; 124.4945; 124.4946; 124.495; 124.82; 124.83, 
119.8   subdivisions 4, 5, and 7; 124C.55; 124C.56; 124C.57; 124C.60, 
119.9   subdivision 2; 124C.71; 124C.72; and 124C.73, are repealed. 
119.10     (b) Minnesota Statutes 1997 Supplement, sections 124.825, 
119.11  subdivisions 3 and 4; and 124C.60, subdivisions 1 and 3, are 
119.12  repealed. 
119.13     Sec. 28.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
119.14     (a) Sections 21, 25, and 26 are effective the day following 
119.15  final enactment. 
119.16     (b) Sections 22 and 23 are effective the day after the 
119.17  governing body of independent school district No. 625, St. Paul, 
119.18  complies with Minnesota Statutes, section 645.021, subdivision 3.
119.19                             ARTICLE 5
119.20                        ACADEMIC EXCELLENCE
119.21     Section 1.  Minnesota Statutes 1997 Supplement, section 
119.22  120.064, subdivision 3, is amended to read: 
119.23     Subd. 3.  [SPONSOR.] A school board, intermediate school 
119.24  district school board, private college, community college, state 
119.25  university, technical college, or the University of Minnesota 
119.26  may sponsor one or more charter schools. 
119.27     Sec. 2.  Minnesota Statutes 1996, section 120.064, 
119.28  subdivision 9, is amended to read: 
119.29     Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
119.30  limit admission to: 
119.31     (1) pupils within an age group or grade level; 
119.32     (2) people who are eligible to participate in the 
119.33  graduation incentives program under section 126.22; or 
119.34     (3) residents of a specific geographic area where the 
119.35  percentage of the population of non-Caucasian people of that 
119.36  area is greater than the percentage of the non-Caucasian 
120.1   population in the congressional district in which the geographic 
120.2   area is located, and as long as the school reflects the racial 
120.3   and ethnic diversity of the specific area. 
120.4      A charter school's enrollment of students eligible for free 
120.5   and reduced price meals must equal, at a minimum, the statewide 
120.6   average enrollment of students eligible for free and reduced 
120.7   price meals.  The commissioner shall develop guidelines to 
120.8   implement this provision. 
120.9      A charter school shall enroll an eligible pupil who submits 
120.10  a timely application, unless the number of applications exceeds 
120.11  the capacity of a program, class, grade level, or building.  In 
120.12  this case, pupils shall be accepted by lot. 
120.13     A charter school may not limit admission to pupils on the 
120.14  basis of intellectual ability, measures of achievement or 
120.15  aptitude, or athletic ability.  
120.16     Sec. 3.  Minnesota Statutes 1996, section 121.1115, is 
120.17  amended by adding a subdivision to read: 
120.18     Subd. 1b.  [EDUCATIONAL ACCOUNTABILITY.] (a) The 
120.19  independent office of educational accountability, as authorized 
120.20  by Laws 1997, First Special Session chapter 4, article 5, 
120.21  section 28, subdivision 2, is established.  The office shall 
120.22  report to the education committees of the legislature and the 
120.23  commissioner of children, families, and learning, at least on a 
120.24  biennial basis, on the degree to which the statewide educational 
120.25  accountability and reporting system includes a comprehensive 
120.26  assessment framework that measures school accountability for 
120.27  students achieving the goals described in the state's 
120.28  results-oriented graduation rule.  The office shall consider 
120.29  whether the statewide system of educational accountability 
120.30  utilizes multiple indicators to provide valid and reliable 
120.31  comparative and contextual data on students, schools, districts, 
120.32  and the state, and if not, recommend ways to improve the 
120.33  accountability reporting system. 
120.34     (b) When the office reviews the statewide educational 
120.35  accountability and reporting system, it shall also consider: 
120.36     (1) the objectivity and neutrality of the state's 
121.1   educational accountability system; and 
121.2      (2)  the impact of a testing program on school curriculum 
121.3   and student learning. 
121.4      Sec. 4.  [123.3517] [STUDENT ACHIEVEMENT LEVELS.] 
121.5      Subdivision 1.  [STATE EXPECTATIONS; PLAN.] (a) Each school 
121.6   year, a school board must determine if the student achievement 
121.7   levels in any school in its district fails to meet state 
121.8   expectations.  If a school's student achievement levels fail to 
121.9   meet state expectations for two out of three consecutive school 
121.10  years, beginning with the 1998-1999 school year, the board must 
121.11  work with the school to adopt a plan to raise student 
121.12  achievement levels to state expectations.  State expectations 
121.13  will be determined by the legislature based on the 
121.14  recommendation of the commissioner of children, families, and 
121.15  learning in collaboration with the office of educational 
121.16  accountability. 
121.17     (b) At the request of a board, the department must assist 
121.18  the board and school in developing a plan to improve student 
121.19  achievement. 
121.20     Subd. 2.  [NOTICE.] (a) The board must, within 45 days 
121.21  after the board declares that a school's student achievement 
121.22  levels fail to meet state expectations under subdivision 1, 
121.23  paragraph (a), give notice of the failure to parents and 
121.24  guardians of students attending the school.  The notice must 
121.25  include: 
121.26     (1) the state expectations that student achievement levels 
121.27  failed to meet; 
121.28     (2) a plan, if any, proposed or adopted under subdivision 
121.29  1; and 
121.30     (3) alternative enrollment options for the students and for 
121.31  each option, school expectations for parent involvement as it 
121.32  relates to student achievement. 
121.33     (b) Each school year the board continues to declare that a 
121.34  school's student achievement levels fail to meet state 
121.35  expectations, the board must give notice to parents and 
121.36  guardians of students of the continuing status of the school. 
122.1      Sec. 5.  Minnesota Statutes 1996, section 124A.29, 
122.2   subdivision 1, is amended to read: 
122.3      Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
122.4   REVENUE.] A district is encouraged required to reserve at least 
122.5   three percent for fiscal year 1999, four percent for fiscal year 
122.6   2000, and five percent for fiscal year 2001 and thereafter, of 
122.7   its general education revenue for in-service education for 
122.8   programs under section 126.77, subdivision 2, for staff 
122.9   development plans, including plans for challenging instructional 
122.10  activities and experiences under section 126.70, and for 
122.11  curriculum development and programs, other in-service education, 
122.12  teachers' workshops, teacher conferences, the cost of substitute 
122.13  teachers staff development purposes, and other related costs for 
122.14  staff development efforts.  Districts may expend an additional 
122.15  amount of basic revenue for staff development based on their 
122.16  needs.  The school board shall initially allocate 50 percent of 
122.17  the revenue to each school site in the district on a per teacher 
122.18  basis, which shall be retained by the school site until used.  
122.19  The board may retain 25 percent to be used for district wide 
122.20  staff development efforts.  The remaining 25 percent of the 
122.21  revenue shall be used to make grants to school sites that 
122.22  demonstrate exemplary use of allocated staff development 
122.23  revenue.  A grant may be used for any purpose authorized under 
122.24  section 126.70, 126.77, subdivision 2, or for the costs of 
122.25  curriculum development and programs, other in-service education, 
122.26  teachers' workshops, teacher conferences, substitute teachers 
122.27  for staff development purposes, and other staff development 
122.28  efforts, and determined by the site decision-making team.  The 
122.29  site decision-making team must demonstrate to the school board 
122.30  the extent to which staff at the site have met the outcomes of 
122.31  the program.  The board may withhold a portion of initial 
122.32  allocation of revenue if the staff development outcomes are not 
122.33  being met. 
122.34     Sec. 6.  Minnesota Statutes 1996, section 125.183, 
122.35  subdivision 1, is amended to read: 
122.36     Subdivision 1.  The board of teaching consists of 11 
123.1   members appointed by the governor, with the advice and consent 
123.2   of the senate.  Membership terms, compensation of members, 
123.3   removal of members, the filling of membership vacancies, and 
123.4   fiscal year and reporting requirements shall be as provided in 
123.5   sections 214.07 to 214.09.  No member may be reappointed for 
123.6   more than one additional term. 
123.7      Sec. 7.  Minnesota Statutes 1996, section 125.183, 
123.8   subdivision 3, is amended to read: 
123.9      Subd. 3.  [MEMBERSHIP.] Except for the representatives of 
123.10  higher education and the public, to be eligible for appointment 
123.11  to the board of teaching a person must be a teacher currently 
123.12  teaching in a Minnesota school and fully licensed for the 
123.13  position held and have at least five years teaching experience 
123.14  in Minnesota, including the two years immediately preceding 
123.15  nomination and appointment.  Each nominee, other than a public 
123.16  nominee, must be selected on the basis of professional 
123.17  experience and knowledge of teacher education, accreditation, 
123.18  and licensure.  The board must be composed of: 
123.19     (1) six classroom teachers who are currently teaching in a 
123.20  Minnesota school, at least four of whom must be teaching in a 
123.21  public school; 
123.22     (2) one higher education representative, who must be a 
123.23  faculty member preparing teachers; 
123.24     (3) one school administrator; and 
123.25     (4) three members of the public, two of whom must be 
123.26  present or former members of school boards. 
123.27     Sec. 8.  Minnesota Statutes 1996, section 126.70, 
123.28  subdivision 2a, is amended to read: 
123.29     Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
123.30  development committee shall adopt a staff development plan for 
123.31  improving student achievement of education outcomes.  The plan 
123.32  must be consistent with education outcomes that the school board 
123.33  determines.  The plan shall include ongoing staff development 
123.34  activities that contribute toward continuous improvement in 
123.35  achievement of the following goals: 
123.36     (1) improve student achievement of state and local 
124.1   education standards in all areas of the curriculum by using best 
124.2   practices methods; 
124.3      (2) effectively meet the needs of a diverse student 
124.4   population, including at-risk children, children with 
124.5   disabilities, and gifted children, within the regular classroom 
124.6   and other settings; 
124.7      (3) provide an inclusive curriculum for a racially, 
124.8   ethnically, and culturally diverse student population that is 
124.9   consistent with the state education diversity rule and the 
124.10  district's education diversity plan; 
124.11     (4) improve staff ability to collaborate and consult with 
124.12  one another and to resolve conflicts; 
124.13     (5) effectively teach and model violence prevention policy 
124.14  and curriculum that address issues of harassment and teach 
124.15  nonviolent alternatives for conflict resolution; and 
124.16     (6) provide teachers and other members of site-based 
124.17  management teams with appropriate management and financial 
124.18  management skills. 
124.19     Sec. 9.  Laws 1997, First Special Session chapter 4, 
124.20  article 5, section 28, subdivision 9, is amended to read: 
124.21     Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
124.22  grants to collaborative urban educator programs that prepare and 
124.23  license people of color to teach: 
124.24       $895,000     .....     1998
124.25       $500,000     .....     1999 
124.26     This appropriation is available until June 30, 1999. 
124.27     Sec. 10.  Laws 1997, First Special Session chapter 4, 
124.28  article 5, section 28, subdivision 10, is amended to read: 
124.29     Subd. 10.  [CHARTER SCHOOL BUILDING LEASE AID.] For 
124.30  building lease aid according to section 124.248, subdivision 2a: 
124.31       $1,078,000 $1,294,000    .....     1998 
124.32       $1,577,000 $1,889,000    .....     1999 
124.33     The 1999 appropriation includes $120,000 $143,000 for 1998 
124.34  and $1,457,000 $1,746,000 for 1999. 
124.35     This appropriation is contingent upon the commissioner of 
124.36  children, families, and learning entering a contract with an 
125.1   independent facilitator to attempt mediation of the education 
125.2   adequacy lawsuits. 
125.3      Sec. 11.  Laws 1997, First Special Session chapter 4, 
125.4   article 5, section 28, subdivision 11, is amended to read: 
125.5      Subd. 11.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
125.6   school start-up cost aid under Minnesota Statutes, section 
125.7   124.248: 
125.8        $500,000 $900,000      .....     1998 
125.9        $1,000,000     .....     1999 
125.10     The 1999 appropriation includes $100,000 for 1998 and 
125.11  $900,000 for 1999.  
125.12     This appropriation is contingent upon the commissioner of 
125.13  children, families, and learning entering a contract with an 
125.14  independent facilitator to attempt mediation of the education 
125.15  adequacy lawsuits. 
125.16     Any balance in the first year does not cancel but is 
125.17  available in the second year.  This appropriation may also be 
125.18  used for grants to convert existing schools into charter schools.
125.19     Sec. 12.  Laws 1997, First Special Session chapter 4, 
125.20  article 5, section 28, subdivision 12, is amended to read: 
125.21     Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
125.22  AID.] For graduation rule implementation: 
125.23       $10,000,000     .....     1998
125.24       $14,400,000     .....     1999
125.25     (a) This appropriation shall be paid to districts according 
125.26  to paragraph (b).  The purpose of the aid is to accelerate the 
125.27  implementation of the graduation rule throughout all education 
125.28  sites in the district through intensive staff development and 
125.29  decentralized decision making.  The board shall work with the 
125.30  teaching staff in the district to determine the most effective 
125.31  staff development processes to assure an acceleration of the 
125.32  implementation.  This appropriation is one-time only. 
125.33     (b) A district shall receive aid equal to $10 for fiscal 
125.34  year 1998 and $15 for fiscal year 1999 times the number of fund 
125.35  balance pupil units in the district for fiscal year 
125.36  1998 excluding pupil units attributable to shared time pupils.  
126.1   At least 30 percent in fiscal year 1998 and 100 percent in 
126.2   fiscal year 1999 must be used for the purposes of paragraph (a). 
126.3      Sec. 13.  Laws 1997, First Special Session chapter 4, 
126.4   article 6, section 20, subdivision 4, is amended to read: 
126.5      Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
126.6   school lunch aid according to Minnesota Statutes, section 
126.7   124.646, and Code of Federal Regulations, title 7, section 
126.8   210.17, and for food storage and transportation costs for United 
126.9   States Department of Agriculture donated commodities; and for a 
126.10  temporary transfer to the commodity processing revolving fund to 
126.11  provide cash flow to permit schools and other recipients of 
126.12  donated commodities to take advantage of volume processing rates 
126.13  and for school milk aid according to Minnesota Statutes, section 
126.14  124.648:  
126.15       $7,254,000     .....     1998 
126.16       $7,254,000 $7,489,000    .....     1999 
126.17     (b) Any unexpended balance remaining from the 
126.18  appropriations in this subdivision shall be prorated among 
126.19  participating schools based on the number of free, reduced, and 
126.20  fully paid federally reimbursable student lunches served during 
126.21  that school year.  
126.22     (c) If the appropriation amount attributable to either year 
126.23  is insufficient, the rate of payment for each fully paid student 
126.24  lunch shall be reduced and the aid for that year shall be 
126.25  prorated among participating schools so as not to exceed the 
126.26  total authorized appropriation for that year.  
126.27     (d) Any temporary transfer processed in accordance with 
126.28  this subdivision to the commodity processing fund will be 
126.29  returned by June 30 in each year so that school lunch aid and 
126.30  food storage costs can be fully paid as scheduled.  
126.31     (e) Not more than $800,000 of the amount appropriated each 
126.32  year may be used for school milk aid. 
126.33     (f) The commissioner may reduce other future aid and grant 
126.34  payments due to school districts and other organizations for the 
126.35  costs of processing and storage of commodities used by the 
126.36  district or organization. 
127.1      Sec. 14.  [GRADUATION RULE RESOURCE GRANTS.] 
127.2      The commissioner of children, families, and learning shall 
127.3   award grants to develop learning resources for the state's 
127.4   results-oriented graduation rule.  The grants are available to: 
127.5      (1) provide staff development for implementation of the 
127.6   graduation standards, including training in economics, the arts, 
127.7   and training in technology by community members; 
127.8      (2) establish and equip learning resource centers; 
127.9      (3) develop and sustain historical educational programming; 
127.10     (4) make historical collections available via the Internet; 
127.11     (5) develop a system of graduation rule implementation for 
127.12  alternative programs; 
127.13     (6) develop systemic site decision-making models and 
127.14  implementing site decision making in schools; 
127.15     (7) expand attention and reading readiness programs; and 
127.16     (8) provide for reporting systems. 
127.17     The commissioner may require a match of private funds as 
127.18  part of the application process.  The commissioner shall 
127.19  consider proposals from New Visions school, the Minnesota 
127.20  Council on Economic Education, the Minnesota historical society, 
127.21  the Lola and Rudy Perpich Center for the Arts, Murphy's Landing, 
127.22  Ironworld, parent or community technology specialists working or 
127.23  volunteering in schools, and higher education institutions 
127.24  working in conjunction with a school district or consortium of 
127.25  school districts. 
127.26     Sec. 15.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 
127.27     (a) The department of children, families, and learning 
127.28  shall contract for a clearinghouse of best educational practices 
127.29  and shared decision-making for improving student performance, 
127.30  particularly for at-risk students.  The clearinghouse must:  
127.31     (1) align with all current activities for best educational 
127.32  practice, shared decision-making, and the results-oriented 
127.33  graduation rule; 
127.34     (2) conduct research and collect information on the best 
127.35  educational practices affecting a school's management, 
127.36  operation, financing, personnel and instruction; 
128.1      (3) train quality intervention teams composed of highly 
128.2   qualified educators to assist a school's staff in working to 
128.3   improve student performance, particularly for at-risk students, 
128.4   by addressing a school's management, operation, financing, 
128.5   personnel and instruction practices; 
128.6      (4) develop and make available to interested school 
128.7   districts a model for an independent educational audit that 
128.8   evaluates a school's performance strengths and weakness and 
128.9   makes specific recommendations for reinforcing performance 
128.10  strengths and improving performance weaknesses cited in the 
128.11  audit; 
128.12     (5) using the comprehensive assessment framework under 
128.13  section 121.1115, subdivision 1b, paragraph (a), develop student 
128.14  and school performance indicators schools may use to reliably 
128.15  measure school improvement over time; and 
128.16     (6) provide staff development opportunities to assist 
128.17  teachers and other educators in integrating educational reform 
128.18  measures into a school's best practices. 
128.19     (b) The clearinghouse must assist school districts, at 
128.20  district request, and recommend methods to engage parents and 
128.21  communities in improving student performance, particularly for 
128.22  at-risk students. 
128.23     (c) The clearinghouse must collaborate with community 
128.24  stakeholders, including the urban league, the urban coalition, 
128.25  the council on Asian-Pacific Minnesotans, the Chicano/Latino 
128.26  affairs council, the council on Black Minnesotans, the Indian 
128.27  affairs council, and the communities and color institute and 
128.28  Minneapolis pathways at the University of Minnesota's Roy 
128.29  Wilkins center. 
128.30     Sec. 16.  [REPORT.] 
128.31     The commissioner of children, families, and learning, in 
128.32  consultation with the Minnesota state colleges and universities, 
128.33  the University of Minnesota, and the private college council, 
128.34  shall examine the training of teachers entering the workforce in 
128.35  Minnesota.  The commissioner shall also consult with the 
128.36  Minnesota federation of teachers and the Minnesota education 
129.1   association for this report.  The report shall make 
129.2   recommendations for proposed legislative action to promote a 
129.3   more direct connection between teacher training and student 
129.4   learning needs under the state's results-oriented graduation 
129.5   rule.  The commissioner shall seek assistance from the state 
129.6   public policy unit within the Humphrey Institute of Minnesota 
129.7   for existing research in this area for this report.  The 
129.8   commissioner shall report its findings to education committees 
129.9   of the legislature by December 1, 1998.  The report shall 
129.10  examine at least the following areas: 
129.11     (1) whether teachers entering the workforce are prepared to 
129.12  meet the basic skills needs and higher learning needs of 
129.13  students under the state's results-oriented graduation rule; 
129.14     (2) identify teacher skills which are considered crucial to 
129.15  the success of students in a knowledge-based economy and 
129.16  determine if Minnesota colleges and universities are teaching 
129.17  those skills adequately to teachers; 
129.18     (3) examine the ability of Minnesota colleges and 
129.19  universities to provide training to existing teachers who are 
129.20  seeking further staff development experiences in order to meet 
129.21  the students' needs under the graduation rule; and 
129.22     (4) identify resources and organizations outside of the 
129.23  colleges and universities that can provide training and teaching 
129.24  experiences necessary to meet the needs of students under the 
129.25  graduation rule. 
129.26     Sec. 17.  [GANG PREVENTION AND INTERVENTION PROGRAM.] 
129.27     Subdivision 1.  [GANG PREVENTION AND INTERVENTION.] The 
129.28  commissioner of children, families, and learning shall develop 
129.29  and administer a gang prevention and intervention program to 
129.30  provide services (1) to young people who are at risk for 
129.31  criminal gang involvement; and (2) to young people who are 
129.32  interested in terminating their gang affiliation. 
129.33     Subd. 2.  [GRANT APPLICATION.] The department of children, 
129.34  families, and learning, in consultation with the department of 
129.35  public safety, department of corrections, office of drug policy 
129.36  and violence prevention, the criminal gang strike force, one or 
130.1   more representatives of community-based programs that have 
130.2   conducted research on street gang culture, and one or more 
130.3   individuals having direct experience in gang life, shall develop 
130.4   a grant application that specifies the eligibility criteria for 
130.5   receiving grants.  A committee selected by this group also must 
130.6   evaluate applications for grants received by the commissioner of 
130.7   children, families, and learning and make recommendations to the 
130.8   commissioner of children, families, and learning on the awarding 
130.9   of grants. 
130.10     Subd. 3.  [ELIGIBILITY FOR GRANTS.] A local organization 
130.11  must meet the following criteria to be eligible for a grant 
130.12  under the program: 
130.13     (1) it must be a private, nonprofit organization or local 
130.14  public agency; and 
130.15     (2) it must offer and provide services to young people to 
130.16  prevent gang involvement or to intervene in and end gang 
130.17  involvement, including, but not limited to, after-school 
130.18  activities, educational opportunities, job skill development, 
130.19  community service, life skills, medical services, social 
130.20  services, and counseling. 
130.21     Subd. 4.  [ELIGIBILITY FOR SERVICES.] A person who is 
130.22  eligible for services must be at least seven years old and not 
130.23  more than 25 years old, at the time the person first receives 
130.24  services, unless the organization receiving a grant receives 
130.25  advance approval from the commissioner of children, families, 
130.26  and learning to provide services outside of this age range. 
130.27     Subd. 5.  [REPORT TO LEGISLATURE.] By December 1, 1998, the 
130.28  commissioner of children, families, and learning shall submit a 
130.29  report to the chairs of the education committees of the 
130.30  legislature on the grants issued under this section. 
130.31     Sec. 18.  [RESIDENTIAL ACADEMIES PROGRAM.] 
130.32     (a) The commissioner of children, families, and learning 
130.33  may award grants to public or private organizations or a 
130.34  collaboration of organizations for start-up costs for 
130.35  residential academies for students in grades 7 through 12 who 
130.36  express a desire to attend a residential academy, have 
131.1   demonstrated an interest in academic achievement and a 
131.2   likelihood of academic success, and who: 
131.3      (1) perform or are at risk of performing below the academic 
131.4   performance level for pupils of the same age; 
131.5      (2) are at least one year behind in satisfactorily 
131.6   completing coursework or obtaining credits for graduation; or 
131.7      (3) have experienced homelessness or an unstable home 
131.8   environment. 
131.9      (b) The residential academy must provide a secondary 
131.10  education program for the resident students to: 
131.11     (1) increase school attendance; 
131.12     (2) increase academic achievement; 
131.13     (3) enable the students to earn a high school diploma; and 
131.14     (4) improve transition to post-secondary education. 
131.15     The academy may collaborate with a school district or 
131.16  charter school to provide the secondary education program. 
131.17     (c) The commissioner of children, families, and learning 
131.18  shall prescribe the form and manner of applications.  The 
131.19  commissioner shall consider the academy's location, 
131.20  collaborative effort among various organizations, family and 
131.21  community involvement, provision of social services, 
131.22  after-school enrichment, and provision of instruction throughout 
131.23  the entire year in awarding grants.  The commissioner shall 
131.24  evaluate the residential academies' program and report to the 
131.25  education committees of the legislature by December 1, 2000. 
131.26     Sec. 19.  [BOARD OF TEACHING.] 
131.27     The board of teaching must convene a working group to 
131.28  recommend changes that would make employment data on licensed 
131.29  education personnel more accessible to school districts.  The 
131.30  working group must consist of one representative from each of 
131.31  the following agencies and organizations:  the state board of 
131.32  teaching, the state board of education, the department of 
131.33  children, families, and learning, the department of 
131.34  administration, the Minnesota education association, the 
131.35  Minnesota federation of teachers, the Minnesota association of 
131.36  school administrators, the Minnesota association of school 
132.1   personnel administrators, the Minnesota school boards 
132.2   association, and any other representatives that the board 
132.3   determines are relevant.  Expenses incurred by working group 
132.4   members must be reimbursed by the agencies and organizations 
132.5   they represent.  By December 1, 1998, the board of teaching must 
132.6   submit the working group's recommendations to the chairs of the 
132.7   kindergarten through grade 12 education funding committees of 
132.8   the legislature. 
132.9      The working group must address at least the following: 
132.10     (1) to what extent a central database of employment history 
132.11  of licensed education personnel would be useful and how would it 
132.12  operate; 
132.13     (2) to what extend information regarding complaints against 
132.14  licensed education personnel received by the board of teaching 
132.15  or the board of education should be made available to school 
132.16  districts; 
132.17     (3) to what extent disciplinary actions by the board of 
132.18  teaching or the board of education should be made available to 
132.19  school districts; and 
132.20     (4) to what extent guidelines regarding factors to consider 
132.21  in hiring educational personnel would be useful to school 
132.22  districts, and, if so, what the guidelines might include. 
132.23     Sec. 20.  [APPROPRIATIONS.] 
132.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
132.25  LEARNING.] The sums indicated in this section are appropriated 
132.26  from the general fund to the department of children, families, 
132.27  and learning for the fiscal years designated. 
132.28     Subd. 2.  [CLEARINGHOUSE OF BEST EDUCATIONAL 
132.29  PRACTICES.] For a clearinghouse of best educational practices. 
132.30       $1,979,000       .....     1999 
132.31     Subd. 3.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
132.32  rule resource grants. 
132.33       $3,300,000     .....     1999
132.34     This is a one-time appropriation. 
132.35     Subd. 4.  [GANG PREVENTION AND INTERVENTION.] To develop 
132.36  and administer the gang prevention and intervention program. 
133.1        $50,000     .....     1999
133.2      This appropriation is available until June 30, 1999. 
133.3      Sec. 21.  [EFFECTIVE DATE.] 
133.4      Sections 5, 10, and 11 are effective the day following 
133.5   final enactment.  Section 12 is effective for fiscal year 1998. 
133.6                              ARTICLE 6
133.7                           EDUCATION POLICY
133.8      Section 1.  Minnesota Statutes 1996, section 15.014, 
133.9   subdivision 3, is amended to read: 
133.10     Subd. 3.  [TASK FORCE FOR CURRICULUM DEVELOPMENT PURPOSES.] 
133.11  In addition to the task forces for which compensation of members 
133.12  is authorized in subdivision 2, the state board of 
133.13  education commissioner of children, families, and learning may 
133.14  create not to exceed no more than ten task forces, to be 
133.15  compensated as provided in section 15.059, subdivision 6.  A 
133.16  task force created pursuant to this subdivision shall be for 
133.17  curriculum development purposes only and shall expire within one 
133.18  year after its creation.  The task force shall report to 
133.19  the state board commissioner before its expiration or upon the 
133.20  completion of its task, whichever occurs first. 
133.21     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
133.22  16B.465, subdivision 4, is amended to read: 
133.23     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
133.24  require the participation of state agencies, the state board of 
133.25  education, and the board of trustees of the Minnesota state 
133.26  colleges and universities and may request the participation of 
133.27  the board of regents of the University of Minnesota, in the 
133.28  planning and implementation of the network to provide 
133.29  interconnective technologies.  The commissioner shall establish 
133.30  reimbursement rates in cooperation with the commissioner of 
133.31  finance to be billed to participating agencies and educational 
133.32  institutions sufficient to cover the operating, maintenance, and 
133.33  administrative costs of the system. 
133.34     (b) A direct appropriation made to an educational 
133.35  institution for usage costs associated with MNet must only be 
133.36  used by the educational institution for payment of usage costs 
134.1   of the network as billed by the commissioner of administration.  
134.2      Sec. 3.  Minnesota Statutes 1996, section 119B.20, 
134.3   subdivision 5, is amended to read: 
134.4      Subd. 5.  [CHILD CARE WORKER.] "Child care worker" means a 
134.5   person who cares for children for compensation, including a 
134.6   licensed provider of child care services, an employee of a 
134.7   provider, a person who has applied for a license as a provider, 
134.8   or a person who meets the standards established by the state 
134.9   board of education commissioner of children, families, and 
134.10  learning. 
134.11     Sec. 4.  Minnesota Statutes 1996, section 119B.20, 
134.12  subdivision 8, is amended to read: 
134.13     Subd. 8.  [INTERIM FINANCING.] "Interim financing" means 
134.14  funds to carry out such activities as are necessary for family 
134.15  day care homes, group family day care homes, and child care 
134.16  centers to receive and maintain state licensing, to expand an 
134.17  existing program or to improve program quality, and to provide 
134.18  operating funds for a period of six consecutive months after a 
134.19  family day care home, group family day care home, or child care 
134.20  center becomes licensed or satisfies standards of the state 
134.21  board of education commissioner of children, families, and 
134.22  learning.  Interim financing may not exceed a period of 18 
134.23  months. 
134.24     Sec. 5.  Minnesota Statutes 1996, section 119B.20, 
134.25  subdivision 12, is amended to read: 
134.26     Subd. 12.  [TRAINING PROGRAM.] "Training program" means 
134.27  child development courses offered by an accredited 
134.28  post-secondary institution or similar training approved by a 
134.29  county board or the department of children, families, and 
134.30  learning.  To qualify as a training program under this section, 
134.31  a course of study must teach specific skills that meet licensing 
134.32  requirements or requirements of the state board of 
134.33  education commissioner of children, families, and learning. 
134.34     Sec. 6.  Minnesota Statutes 1996, section 120.03, 
134.35  subdivision 1, is amended to read: 
134.36     Subdivision 1.  Every child who has a hearing impairment, 
135.1   visual disability, speech or language impairment, physical 
135.2   handicap, other health impairment, mental handicap, 
135.3   emotional/behavioral disorder, specific learning disability, or 
135.4   deaf/blind disability and needs special instruction and 
135.5   services, as determined by the standards of the state 
135.6   board commissioner, is a child with a disability.  In addition, 
135.7   every child under age five who needs special instruction and 
135.8   services, as determined by the standards of the state board 
135.9   commissioner, because the child has a substantial delay or has 
135.10  an identifiable physical or mental condition known to hinder 
135.11  normal development is a child with a disability. 
135.12     Sec. 7.  Minnesota Statutes 1996, section 120.03, 
135.13  subdivision 5, is amended to read: 
135.14     Subd. 5.  A child with a short-term or temporary physical 
135.15  or emotional illness or disability, as determined by the 
135.16  standards of the state board commissioner, is not a child with a 
135.17  disability.  
135.18     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
135.19  120.05, subdivision 2, is amended to read: 
135.20     Subd. 2.  [DEFINITIONS.] (1) Elementary school means any 
135.21  school with building, equipment, courses of study, class 
135.22  schedules, enrollment of pupils ordinarily in prekindergarten 
135.23  through grade 6 or any portion thereof and staff meeting the 
135.24  standards established by the state board of education 
135.25  commissioner of children, families, and learning. 
135.26     The state board of education commissioner of children, 
135.27  families, and learning shall not close a school or deny any 
135.28  state aids to a district for its elementary schools because of 
135.29  enrollment limitations classified in accordance with the 
135.30  provisions of clause (1). 
135.31     (2) Middle school means any school other than a secondary 
135.32  school giving an approved course of study in a minimum of three 
135.33  consecutive grades above 4th but below 10th with building, 
135.34  equipment, courses of study, class schedules, enrollment, and 
135.35  staff meeting the standards established by the state board of 
135.36  education commissioner of children, families, and learning. 
136.1      (3) Secondary school means any school with building, 
136.2   equipment, courses of study, class schedules, enrollment of 
136.3   pupils ordinarily in grades 7 through 12 or any portion thereof, 
136.4   and staff meeting the standards established by the state board 
136.5   of education commissioner of children, families, and learning. 
136.6      (4) A vocational center school is one serving a group of 
136.7   secondary schools with approved areas of secondary vocational 
136.8   training and offering vocational secondary and adult programs 
136.9   necessary to meet local needs and meeting standards established 
136.10  by the state board of education commissioner of children, 
136.11  families, and learning. 
136.12     Sec. 9.  Minnesota Statutes 1996, section 120.062, 
136.13  subdivision 5, is amended to read: 
136.14     Subd. 5.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
136.15  subdivision applies to a transfer into or out of a district that 
136.16  has a desegregation plan approved by the commissioner of 
136.17  children, families, and learning.  
136.18     (b) An application to transfer may be submitted at any time 
136.19  for enrollment beginning at any time. 
136.20     (c) The parent or guardian of a pupil who is a resident of 
136.21  a district that has a desegregation plan must submit an 
136.22  application to the resident district.  If the district accepts 
136.23  the application, it must forward the application to the 
136.24  nonresident district. 
136.25     (d) The parent or guardian of a pupil who applies for 
136.26  enrollment in a nonresident district that has a desegregation 
136.27  plan must submit an application to the nonresident district.  
136.28     (e) Each district must accept or reject an application it 
136.29  receives and notify the parent or guardian in writing within 30 
136.30  calendar days of receiving the application.  A notification of 
136.31  acceptance must include the date enrollment can begin. 
136.32     (f) If an application is rejected, the district must state 
136.33  the reason for rejection in the notification.  If a district 
136.34  that has a desegregation plan rejects an application for a 
136.35  reason related to the desegregation plan, the district must 
136.36  state with specificity how acceptance of the application would 
137.1   result in noncompliance with state board department rules with 
137.2   respect to the school or program for which application was made. 
137.3      (g) If an application is accepted, the parent or guardian 
137.4   must notify the nonresident district in writing within 15 
137.5   calendar days of receiving the acceptance whether the pupil 
137.6   intends to enroll in the nonresident district.  Notice of 
137.7   intention to enroll obligates the pupil to enroll in the 
137.8   nonresident district, unless the school boards of the resident 
137.9   and nonresident districts agree otherwise.  If a parent or 
137.10  guardian does not notify the nonresident district, the pupil may 
137.11  not enroll in that nonresident district at that time, unless the 
137.12  school boards of the resident and nonresident district agree 
137.13  otherwise. 
137.14     (h) Within 15 calendar days of receiving the notice from 
137.15  the parent or guardian, the nonresident district shall notify 
137.16  the resident district in writing of the pupil's intention to 
137.17  enroll in the nonresident district.  
137.18     (i) A pupil enrolled in a nonresident district under this 
137.19  subdivision is not required to make annual or periodic 
137.20  application for enrollment but may remain enrolled in the same 
137.21  district.  A pupil may transfer to the resident district at any 
137.22  time.  
137.23     (j) A pupil enrolled in a nonresident district and applying 
137.24  to transfer into or out of a district that has a desegregation 
137.25  plan must follow the procedures of this subdivision.  For the 
137.26  purposes of this type of transfer, "resident district" means the 
137.27  nonresident district in which the pupil is enrolled at the time 
137.28  of application.  
137.29     (k) A district that has a desegregation plan approved by 
137.30  the state board of education commissioner of children, families, 
137.31  and learning must accept or reject each individual application 
137.32  in a manner that will enable compliance with its desegregation 
137.33  plan. 
137.34     Sec. 10.  Minnesota Statutes 1996, section 120.064, 
137.35  subdivision 4, is amended to read: 
137.36     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
138.1   authorize one or more licensed teachers under section 125.05, 
138.2   subdivision 1, to operate a charter school subject to approval 
138.3   by the state board of education commissioner of children, 
138.4   families, and learning.  If a school board elects not to sponsor 
138.5   a charter school, the applicant may appeal the school board's 
138.6   decision to the state board of education commissioner of 
138.7   children, families, and learning if two members of the school 
138.8   board voted to sponsor the school.  If the state 
138.9   board commissioner authorizes the school, the state board 
138.10  commissioner shall sponsor the school according to this 
138.11  section.  The school shall be organized and operated as a 
138.12  cooperative under chapter 308A or nonprofit corporation under 
138.13  chapter 317A.  
138.14     (b) Before the operators may form and operate a school, the 
138.15  sponsor must file an affidavit with the state board of education 
138.16  commissioner of children, families, and learning stating its 
138.17  intent to authorize a charter school.  The affidavit must state 
138.18  the terms and conditions under which the sponsor would authorize 
138.19  a charter school.  The state board commissioner must approve or 
138.20  disapprove the sponsor's proposed authorization within 60 days 
138.21  of receipt of the affidavit.  Failure to obtain state board the 
138.22  commissioner's approval precludes a sponsor from authorizing the 
138.23  charter school that was the subject of the affidavit.  
138.24     (c) The operators authorized to organize and operate a 
138.25  school shall hold an election for members of the school's board 
138.26  of directors in a timely manner after the school is operating.  
138.27  Any staff members who are employed at the school, including 
138.28  teachers providing instruction under a contract with a 
138.29  cooperative, and all parents of children enrolled in the school 
138.30  may participate in the election.  Licensed teachers employed at 
138.31  the school, including teachers providing instruction under a 
138.32  contract with a cooperative, must be a majority of the members 
138.33  of the board of directors.  A provisional board may operate 
138.34  before the election of the school's board of directors.  Board 
138.35  of director meetings must comply with section 471.705. 
138.36     (d) The granting or renewal of a charter by a sponsoring 
139.1   entity shall not be conditioned upon the bargaining unit status 
139.2   of the employees of the school. 
139.3      Sec. 11.  Minnesota Statutes 1997 Supplement, section 
139.4   120.064, subdivision 8, is amended to read: 
139.5      Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
139.6   all applicable state and local health and safety requirements. 
139.7      (b) A school sponsored by a school board may be located in 
139.8   any district, unless the school board of the district of the 
139.9   proposed location disapproves by written resolution.  If such a 
139.10  school board denies a request to locate within its boundaries a 
139.11  charter school sponsored by another school board, the sponsoring 
139.12  school board may appeal to the state board of education 
139.13  commissioner of children, families, and learning.  If the state 
139.14  board commissioner authorizes the school, the state board 
139.15  commissioner shall sponsor the school.  
139.16     (c) A charter school must be nonsectarian in its programs, 
139.17  admission policies, employment practices, and all other 
139.18  operations.  A sponsor may not authorize a charter school or 
139.19  program that is affiliated with a nonpublic sectarian school or 
139.20  a religious institution. 
139.21     (d) Charter schools shall not be used as a method of 
139.22  providing education or generating revenue for students who are 
139.23  being home-schooled. 
139.24     (e) The primary focus of a charter school must be to 
139.25  provide a comprehensive program of instruction for at least one 
139.26  grade or age group from five through 18 years of age.  
139.27  Instruction may be provided to people younger than five years 
139.28  and older than 18 years of age. 
139.29     (f) A charter school may not charge tuition. 
139.30     (g) A charter school is subject to and shall comply with 
139.31  chapter 363 and section 126.21. 
139.32     (h) A charter school is subject to and shall comply with 
139.33  The Pupil Fair Dismissal Act, sections 127.26 to 127.39, and the 
139.34  Minnesota public school fee law, sections 120.71 to 120.76. 
139.35     (i) A charter school is subject to the same financial 
139.36  audits, audit procedures, and audit requirements as a school 
140.1   district.  The audit must be consistent with the requirements of 
140.2   sections 121.904 to 121.917, except to the extent deviations are 
140.3   necessary because of the program at the school.  The department 
140.4   of children, families, and learning, state auditor, or 
140.5   legislative auditor may conduct financial, program, or 
140.6   compliance audits. 
140.7      (j) A charter school is a school district for the purposes 
140.8   of tort liability under chapter 466. 
140.9      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
140.10  120.064, subdivision 10, is amended to read: 
140.11     Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
140.12  design its programs to at least meet the outcomes adopted by the 
140.13  state board of education commissioner of children, families, and 
140.14  learning for public school students.  In the absence of state 
140.15  board requirements adopted by the commissioner, the school must 
140.16  meet the outcomes contained in the contract with the sponsor.  
140.17  The achievement levels of the outcomes contained in the contract 
140.18  may exceed the achievement levels of any outcomes adopted by the 
140.19  state board commissioner for public school students. 
140.20     Sec. 13.  Minnesota Statutes 1996, section 120.064, 
140.21  subdivision 14, is amended to read: 
140.22     Subd. 14.  [REPORTS.] A charter school must report at least 
140.23  annually to its sponsor and the state board of education 
140.24  commissioner of children, families, and learning the information 
140.25  required by the sponsor or the state board commissioner.  The 
140.26  reports are public data under chapter 13. 
140.27     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
140.28  120.064, subdivision 14a, is amended to read: 
140.29     Subd. 14a.  [REVIEW AND COMMENT.] The department shall 
140.30  review and comment on the evaluation, by the chartering school 
140.31  district, of the performance of a charter school before the 
140.32  charter school's contract is renewed.  The information from the 
140.33  review and comment shall be reported to the state board of 
140.34  education commissioner of children, families, and learning in a 
140.35  timely manner.  Periodically, the state board commissioner shall 
140.36  report trends or suggestions based on the evaluation of charter 
141.1   school contracts to the education committees of the state 
141.2   legislature. 
141.3      Sec. 15.  Minnesota Statutes 1996, section 120.064, 
141.4   subdivision 17, is amended to read: 
141.5      Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
141.6   charter school before the applicant has secured its space, 
141.7   equipment, facilities, and personnel if the applicant indicates 
141.8   the authority is necessary for it to raise working capital.  A 
141.9   sponsor may not authorize a school before the state board of 
141.10  education commissioner of children, families, and learning has 
141.11  approved the authorization. 
141.12     Sec. 16.  Minnesota Statutes 1996, section 120.064, 
141.13  subdivision 21, is amended to read: 
141.14     Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
141.15  duration of the contract with a sponsor shall be for the term 
141.16  contained in the contract according to subdivision 5.  The 
141.17  sponsor may or may not renew a contract at the end of the term 
141.18  for any ground listed in paragraph (b).  A sponsor may 
141.19  unilaterally terminate a contract during the term of the 
141.20  contract for any ground listed in paragraph (b).  At least 60 
141.21  days before not renewing or terminating a contract, the sponsor 
141.22  shall notify the board of directors of the charter school of the 
141.23  proposed action in writing.  The notice shall state the grounds 
141.24  for the proposed action in reasonable detail and that the 
141.25  charter school's board of directors may request in writing an 
141.26  informal hearing before the sponsor within 14 days of receiving 
141.27  notice of nonrenewal or termination of the contract.  Failure by 
141.28  the board of directors to make a written request for a hearing 
141.29  within the 14-day period shall be treated as acquiescence to the 
141.30  proposed action.  Upon receiving a timely written request for a 
141.31  hearing, the sponsor shall give reasonable notice to the charter 
141.32  school's board of directors of the hearing date.  The sponsor 
141.33  shall conduct an informal hearing before taking final action.  
141.34  The sponsor shall take final action to renew or not renew a 
141.35  contract by the last day of classes in the school year.  If the 
141.36  sponsor is a local school board, the school's board of directors 
142.1   may appeal the sponsor's decision to the state board of 
142.2   education commissioner of children, families, and learning.  
142.3      (b) A contract may be terminated or not renewed upon any of 
142.4   the following grounds: 
142.5      (1) failure to meet the requirements for pupil performance 
142.6   contained in the contract; 
142.7      (2) failure to meet generally accepted standards of fiscal 
142.8   management; 
142.9      (3) for violations of law; or 
142.10     (4) other good cause shown. 
142.11     If a contract is terminated or not renewed, the school 
142.12  shall be dissolved according to the applicable provisions of 
142.13  chapter 308A or 317A. 
142.14     Sec. 17.  Minnesota Statutes 1996, section 120.064, 
142.15  subdivision 24, is amended to read: 
142.16     Subd. 24.  [IMMUNITY.] The state board of education, 
142.17  members of the state board commissioner of children, families, 
142.18  and learning, a sponsor, members of the board of a sponsor in 
142.19  their official capacity, and employees of a sponsor are immune 
142.20  from civil or criminal liability with respect to all activities 
142.21  related to a charter school they approve or sponsor.  The board 
142.22  of directors shall obtain at least the amount of and types of 
142.23  insurance required by the contract, according to subdivision 5. 
142.24     Sec. 18.  Minnesota Statutes 1996, section 120.101, 
142.25  subdivision 7, is amended to read: 
142.26     Subd. 7.  [REQUIREMENTS FOR INSTRUCTORS.] A person who is 
142.27  providing instruction to a child must meet at least one of the 
142.28  following requirements:  
142.29     (1) hold a valid Minnesota teaching license in the field 
142.30  and for the grade level taught; 
142.31     (2) be directly supervised by a person holding a valid 
142.32  Minnesota teaching license; 
142.33     (3) successfully complete a teacher competency examination; 
142.34     (4) provide instruction in a school that is accredited by 
142.35  an accrediting agency, recognized according to section 123.935, 
142.36  subdivision 7, or recognized by the state board of 
143.1   education commissioner of children, families, and learning; 
143.2      (5) hold a baccalaureate degree; or 
143.3      (6) be the parent of a child who is assessed according to 
143.4   the procedures in subdivision 8.  
143.5      Any person providing instruction in a public school must 
143.6   meet the requirements of clause (1). 
143.7      Sec. 19.  Minnesota Statutes 1996, section 120.101, 
143.8   subdivision 8, is amended to read: 
143.9      Subd. 8.  [ASSESSMENT OF PERFORMANCE.] (a) Each year the 
143.10  performance of every child who is not enrolled in a public 
143.11  school must be assessed using a nationally norm-referenced 
143.12  standardized achievement examination.  The superintendent of the 
143.13  district in which the child receives instruction and the person 
143.14  in charge of the child's instruction must agree about the 
143.15  specific examination to be used and the administration and 
143.16  location of the examination.  
143.17     (b) To the extent the examination in paragraph (a) does not 
143.18  provide assessment in all of the subject areas in subdivision 6, 
143.19  the parent must assess the child's performance in the applicable 
143.20  subject area.  This requirement applies only to a parent who 
143.21  provides instruction and does not meet the requirements of 
143.22  subdivision 7, clause (1), (2), or (3).  
143.23     (c) If the results of the assessments in paragraphs (a) and 
143.24  (b) indicate that the child's performance on the total battery 
143.25  score is at or below the 30th percentile or one grade level 
143.26  below the performance level for children of the same age, the 
143.27  parent shall obtain additional evaluation of the child's 
143.28  abilities and performance for the purpose of determining whether 
143.29  the child has learning problems.  
143.30     (d) A child receiving instruction from a nonpublic school, 
143.31  person, or institution that is accredited by an accrediting 
143.32  agency, recognized according to section 123.935, subdivision 7, 
143.33  or recognized by the state board of education commissioner of 
143.34  children, families, and learning, is exempt from the 
143.35  requirements of this subdivision.  
143.36     Sec. 20.  Minnesota Statutes 1996, section 120.102, 
144.1   subdivision 3, is amended to read: 
144.2      Subd. 3.  [EXEMPTIONS.] A nonpublic school, person, or 
144.3   other institution that is accredited by an accrediting agency, 
144.4   recognized according to section 123.935, or recognized by the 
144.5   state board of education commissioner of children, families, and 
144.6   learning, is exempt from the requirements in subdivisions 1 and 
144.7   2, except for the requirement in subdivision 1, clause (1). 
144.8      Sec. 21.  Minnesota Statutes 1997 Supplement, section 
144.9   120.1045, subdivision 1, is amended to read: 
144.10     Subdivision 1.  [BACKGROUND CHECK REQUIRED.] (a) A school 
144.11  hiring authority, as defined in subdivision 4, shall request a 
144.12  criminal history background check from the superintendent of the 
144.13  bureau of criminal apprehension on all individuals who are 
144.14  offered employment in the school, as defined in subdivision 4.  
144.15  In order to be eligible for employment, an individual who is 
144.16  offered employment must provide an executed criminal history 
144.17  consent form and a money order or check payable to either the 
144.18  bureau of criminal apprehension or the school hiring authority, 
144.19  at the election of the school hiring authority, in an amount 
144.20  equal to the actual cost to the bureau of criminal apprehension 
144.21  and the school district of conducting the criminal history 
144.22  background check.  A school hiring authority electing to receive 
144.23  payment may, at its discretion, accept payment in the form of a 
144.24  negotiable instrument other than a money order or check and 
144.25  shall pay the superintendent of the bureau of criminal 
144.26  apprehension directly to conduct the background check.  The 
144.27  superintendent of the bureau of criminal apprehension shall 
144.28  conduct the background check by retrieving criminal history data 
144.29  maintained in the criminal justice information system 
144.30  computers.  A school hiring authority, at its discretion, may 
144.31  elect not to request a criminal history background check on an 
144.32  individual who holds an initial entrance license issued by the 
144.33  state board of teaching or the state board of 
144.34  education commissioner of children, families, and learning 
144.35  within the 12 months preceding an offer of employment. 
144.36     (b) A school hiring authority may use the results of a 
145.1   criminal background check conducted at the request of another 
145.2   school hiring authority if: 
145.3      (1) the results of the criminal background check are on 
145.4   file with the other school hiring authority or otherwise 
145.5   accessible; 
145.6      (2) the other school hiring authority conducted a criminal 
145.7   background check within the previous 12 months; 
145.8      (3) the individual who is the subject of the criminal 
145.9   background check executes a written consent form giving a school 
145.10  hiring authority access to the results of the check; and 
145.11     (4) there is no reason to believe that the individual has 
145.12  committed an act subsequent to the check that would disqualify 
145.13  the individual for employment. 
145.14     (c) A school hiring authority may, at its discretion, 
145.15  request a criminal history background check from the 
145.16  superintendent of the bureau of criminal apprehension on any 
145.17  individual who seeks to enter a school or its grounds for the 
145.18  purpose of serving as a school volunteer or working as an 
145.19  independent contractor or student employee.  In order for an 
145.20  individual to enter a school or its grounds under this paragraph 
145.21  when the school hiring authority elects to request a criminal 
145.22  history background check on the individual, the individual first 
145.23  must provide an executed criminal history consent form and a 
145.24  money order, check, or other negotiable instrument payable to 
145.25  the school district in an amount equal to the actual cost to the 
145.26  bureau of criminal apprehension and the school district of 
145.27  conducting the criminal history background check.  
145.28  Notwithstanding section 299C.62, subdivision 1, the cost of the 
145.29  criminal history background check under this paragraph is the 
145.30  responsibility of the individual. 
145.31     (d) For all nonstate residents who are offered employment 
145.32  in a school, a school hiring authority shall request a criminal 
145.33  history background check on such individuals from the 
145.34  superintendent of the bureau of criminal apprehension and from 
145.35  the government agency performing the same function in the 
145.36  resident state or, if no government entity performs the same 
146.1   function in the resident state, from the Federal Bureau of 
146.2   Investigation.  Such individuals must provide an executed 
146.3   criminal history consent form and a money order, check, or other 
146.4   negotiable instrument payable to the school hiring authority in 
146.5   an amount equal to the actual cost to the government agencies 
146.6   and the school district of conducting the criminal history 
146.7   background check.  Notwithstanding section 299C.62, subdivision 
146.8   1, the cost of the criminal history background check under this 
146.9   paragraph is the responsibility of the individual. 
146.10     Sec. 22.  Minnesota Statutes 1996, section 120.17, 
146.11  subdivision 3, is amended to read: 
146.12     Subd. 3.  [RULES OF THE STATE BOARD COMMISSIONER OF 
146.13  CHILDREN, FAMILIES, AND LEARNING.] (a) The state 
146.14  board commissioner of children, families, and learning shall 
146.15  promulgate rules relative to qualifications of essential 
146.16  personnel, courses of study, methods of instruction, pupil 
146.17  eligibility, size of classes, rooms, equipment, supervision, 
146.18  parent consultation, and any other rules it the commissioner 
146.19  deems necessary for instruction of children with a disability.  
146.20  These rules shall provide standards and procedures appropriate 
146.21  for the implementation of and within the limitations of 
146.22  subdivisions 3a and 3b.  These rules shall also provide 
146.23  standards for the discipline, control, management and protection 
146.24  of children with a disability.  The state board commissioner 
146.25  shall not adopt rules for pupils served in level 1, 2, or 3, as 
146.26  defined in Minnesota Rules, part 3525.2340, establishing either 
146.27  case loads or the maximum number of pupils that may be assigned 
146.28  to special education teachers.  The state board commissioner, in 
146.29  consultation with the departments of health and human services, 
146.30  shall adopt permanent rules for instruction and services for 
146.31  children under age five and their families.  These rules are 
146.32  binding on state and local education, health, and human services 
146.33  agencies.  The state board commissioner shall adopt rules to 
146.34  determine eligibility for special education services.  The rules 
146.35  shall include procedures and standards by which to grant 
146.36  variances for experimental eligibility criteria.  The state 
147.1   board commissioner shall, according to section 14.05, 
147.2   subdivision 4, notify a district applying for a variance from 
147.3   the rules within 45 calendar days of receiving the request 
147.4   whether the request for the variance has been granted or 
147.5   denied.  If a request is denied, the board commissioner shall 
147.6   specify the program standards used to evaluate the request and 
147.7   the reasons for denying the request.  
147.8      (b) The state's regulatory scheme should support schools by 
147.9   assuring that all state special education rules adopted by the 
147.10  state board of education commissioner of children, families, and 
147.11  learning result in one or more of the following outcomes: 
147.12     (1) increased time available to teachers for educating 
147.13  students through direct and indirect instruction; 
147.14     (2) consistent and uniform access to effective education 
147.15  programs for students with disabilities throughout the state; 
147.16     (3) reduced inequalities, conflict, and court actions 
147.17  related to the delivery of special education instruction and 
147.18  services for students with disabilities; 
147.19     (4) clear expectations for service providers and for 
147.20  students with disabilities; 
147.21     (5) increased accountability for all individuals and 
147.22  agencies that provide instruction and other services to students 
147.23  with disabilities; 
147.24     (6) greater focus for the state and local resources 
147.25  dedicated to educating students with disabilities; and 
147.26     (7) clearer standards for evaluating the effectiveness of 
147.27  education and support services for students with disabilities. 
147.28     Sec. 23.  Minnesota Statutes 1996, section 120.17, 
147.29  subdivision 3b, is amended to read: 
147.30     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
147.31  utilize at least the following procedures for decisions 
147.32  involving identification, assessment, and educational placement 
147.33  of children with a disability: 
147.34     (a) Parents and guardians shall receive prior written 
147.35  notice of:  
147.36     (1) any proposed formal educational assessment or proposed 
148.1   denial of a formal educational assessment of their child; 
148.2      (2) a proposed placement of their child in, transfer from 
148.3   or to, or denial of placement in a special education program; or 
148.4      (3) the proposed provision, addition, denial or removal of 
148.5   special education services for their child; 
148.6      (b) The district shall not proceed with the initial formal 
148.7   assessment of a child, the initial placement of a child in a 
148.8   special education program, or the initial provision of special 
148.9   education services for a child without the prior written consent 
148.10  of the child's parent or guardian.  The refusal of a parent or 
148.11  guardian to consent may be overridden by the decision in a 
148.12  hearing held pursuant to clause (e) at the district's 
148.13  initiative; 
148.14     (c) Parents and guardians shall have an opportunity to meet 
148.15  with appropriate district staff in at least one conciliation 
148.16  conference, mediation, or other method of alternative dispute 
148.17  resolution that the parties agree to, if they object to any 
148.18  proposal of which they are notified pursuant to clause (a).  The 
148.19  conciliation process or other form of alternative dispute 
148.20  resolution shall not be used to deny or delay a parent or 
148.21  guardian's right to a due process hearing.  If the parent or 
148.22  guardian refuses efforts by the district to conciliate the 
148.23  dispute with the school district, the requirement of an 
148.24  opportunity for conciliation or other alternative dispute 
148.25  resolution shall be deemed to be satisfied.  Notwithstanding 
148.26  other law, in any proceeding following a conciliation 
148.27  conference, the school district must not offer a conciliation 
148.28  conference memorandum into evidence, except for any portions 
148.29  that describe the district's final proposed offer of service.  
148.30  Otherwise, with respect to forms of dispute resolution, 
148.31  mediation, or conciliation, Minnesota Rule of Evidence 408 
148.32  applies.  The department of children, families, and learning may 
148.33  reimburse the districts or directly pay the costs of lay 
148.34  advocates, not to exceed $150 per dispute, used in conjunction 
148.35  with alternative dispute resolution. 
148.36     (d) The commissioner shall establish a mediation process to 
149.1   assist parents, school districts, or other parties to resolve 
149.2   disputes arising out of the identification, assessment, or 
149.3   educational placement of children with a disability.  The 
149.4   mediation process must be offered as an informal alternative to 
149.5   the due process hearing provided under clause (e), but must not 
149.6   be used to deny or postpone the opportunity of a parent or 
149.7   guardian to obtain a due process hearing. 
149.8      (e) Parents, guardians, and the district shall have an 
149.9   opportunity to obtain an impartial due process hearing initiated 
149.10  and conducted by and in the school district responsible for 
149.11  assuring that an appropriate program is provided in accordance 
149.12  with state board rules, if the parent or guardian continues to 
149.13  object to:  
149.14     (1) a proposed formal educational assessment or proposed 
149.15  denial of a formal educational assessment of their child; 
149.16     (2) the proposed placement of their child in, or transfer 
149.17  of their child to a special education program; 
149.18     (3) the proposed denial of placement of their child in a 
149.19  special education program or the transfer of their child from a 
149.20  special education program; 
149.21     (4) the proposed provision or addition of special education 
149.22  services for their child; or 
149.23     (5) the proposed denial or removal of special education 
149.24  services for their child. 
149.25     Within five business days after the request for a hearing, 
149.26  or as directed by the hearing officer, the objecting party shall 
149.27  provide the other party with a brief written statement of 
149.28  particulars of the objection, the reasons for the objection, and 
149.29  the specific remedies sought.  The other party shall provide the 
149.30  objecting party with a written response to the statement of 
149.31  objections within five business days of receipt of the statement.
149.32     The hearing shall take place before an impartial hearing 
149.33  officer mutually agreed to by the school board and the parent or 
149.34  guardian.  Within four business days of the receipt of the 
149.35  request for the hearing, if the parties have not agreed on the 
149.36  hearing officer, the school board shall request the commissioner 
150.1   to appoint a hearing officer.  The school board shall include 
150.2   with the request the name of the person requesting the hearing, 
150.3   the name of the student, the attorneys involved, if any, and the 
150.4   date the hearing request was received.  The hearing officer 
150.5   shall not be a school board member or employee of the school 
150.6   district where the child resides or of the child's school 
150.7   district of residence, an employee of any other public agency 
150.8   involved in the education or care of the child, or any person 
150.9   with a personal or professional interest which would conflict 
150.10  with the person's objectivity at the hearing.  A person who 
150.11  otherwise qualifies as a hearing officer is not an employee of 
150.12  the district solely because the person is paid by the district 
150.13  to serve as a hearing officer.  If the hearing officer requests 
150.14  an independent educational assessment of a child, the cost of 
150.15  the assessment shall be at district expense.  The proceedings 
150.16  shall be recorded and preserved, at the expense of the school 
150.17  district, pending ultimate disposition of the action. 
150.18     (f) The decision of the hearing officer pursuant to clause 
150.19  (e) shall be rendered not more than 45 calendar days from the 
150.20  date of the receipt of the request for the hearing, except that 
150.21  hearing officers are encouraged to accelerate the timeline to 30 
150.22  days for children birth through two whose needs change rapidly 
150.23  and require quick resolution of complaints.  A hearing officer 
150.24  may not grant specific extensions of time beyond the 45-day 
150.25  period unless requested by either party for good cause shown on 
150.26  the record.  The decision of the hearing officer shall be 
150.27  binding on all parties unless appealed to the commissioner by 
150.28  the parent; guardian; school board of the district where the 
150.29  child resides pursuant to clause (g); and also in the case of 
150.30  children birth through two, by the county board. 
150.31     The local decision shall: 
150.32     (1) be in writing; 
150.33     (2) state the controlling facts upon which the decision is 
150.34  made in sufficient detail to apprise the parties and the hearing 
150.35  review officer of the basis and reason for the decision; and 
150.36     (3) be based on the standards set forth in subdivision 3a 
151.1   and the rules of the state board commissioner of children, 
151.2   families, and learning. 
151.3      (g) Any local decision issued pursuant to clauses (e) and 
151.4   (f) may be appealed to the commissioner within 30 calendar days 
151.5   of receipt of that written decision, by the parent, guardian, or 
151.6   the school board of the district responsible for assuring that 
151.7   an appropriate program is provided in accordance with state 
151.8   board rules.  The appealing party shall note the specific parts 
151.9   of the hearing decision being appealed. 
151.10     If the decision is appealed, a written transcript of the 
151.11  hearing shall be made by the school district and provided by the 
151.12  district to the parties involved and the hearing review officer 
151.13  within five calendar days of the filing of the appeal.  The 
151.14  hearing review officer shall conduct an appellate review and 
151.15  issue a final independent decision based on an impartial review 
151.16  of the local decision and the entire record within 30 calendar 
151.17  days after the filing of the appeal.  However, the hearing 
151.18  review officer shall seek additional evidence if necessary and 
151.19  may afford the parties an opportunity for written or oral 
151.20  argument; provided any hearing held to seek additional evidence 
151.21  shall be an impartial due process hearing but shall be deemed 
151.22  not to be a contested case hearing for purposes of chapter 14.  
151.23  The hearing review officer may grant specific extensions of time 
151.24  beyond the 30-day period at the request of any party for good 
151.25  cause shown on the record. 
151.26     The final decision shall: 
151.27     (1) be in writing; 
151.28     (2) include findings and conclusions; and 
151.29     (3) be based upon the standards set forth in subdivision 3a 
151.30  and in the rules of the state board commissioner of children, 
151.31  families, and learning. 
151.32     (h) The decision of the hearing review officer shall be 
151.33  final unless appealed by the parent or guardian or school board 
151.34  to the Minnesota court of appeals or federal district court as 
151.35  provided by federal law.  State judicial review shall be in 
151.36  accordance with chapter 14.  
152.1      (i) The commissioner of children, families, and learning 
152.2   shall select an individual who has the qualifications enumerated 
152.3   in this paragraph to serve as the hearing review officer: 
152.4      (1) the individual must be knowledgeable and impartial; 
152.5      (2) the individual must not have a personal interest in or 
152.6   specific involvement with the student who is a party to the 
152.7   hearing; 
152.8      (3) the individual must not have been employed as an 
152.9   administrator by the district that is a party to the hearing; 
152.10     (4) the individual must not have been involved in the 
152.11  selection of the administrators of the district that is a party 
152.12  to the hearing; 
152.13     (5) the individual must not have a personal, economic, or 
152.14  professional interest in the outcome of the hearing other than 
152.15  the proper administration of the federal and state laws, rules, 
152.16  and policies; 
152.17     (6) the individual must not have substantial involvement in 
152.18  the development of a state or local policy or procedures that 
152.19  are challenged in the appeal; 
152.20     (7) the individual is not a current employee or board 
152.21  member of a Minnesota public school district, education 
152.22  district, intermediate unit or regional education agency, the 
152.23  department of children, families, and learning, the state board 
152.24  of education; and 
152.25     (8) the individual is not a current employee or board 
152.26  member of a disability advocacy organization or group.  
152.27     (j) In all appeals, the parent or guardian of the pupil 
152.28  with a disability or the district that is a party to the hearing 
152.29  may challenge the impartiality or competence of the proposed 
152.30  hearing review officer by applying to the hearing review officer.
152.31     (k) Pending the completion of proceedings pursuant to this 
152.32  subdivision, unless the district and the parent or guardian of 
152.33  the child agree otherwise, the child shall remain in the child's 
152.34  current educational placement and shall not be denied initial 
152.35  admission to school. 
152.36     (l) The child's school district of residence, a resident 
153.1   district, and providing district shall receive notice of and may 
153.2   be a party to any hearings or appeals under this subdivision. 
153.3      (m) A school district is not liable for harmless technical 
153.4   violations of this subdivision or rules implementing this 
153.5   subdivision if the school district can demonstrate on a 
153.6   case-by-case basis that the violations did not harm the 
153.7   student's educational progress or the parent or guardian's right 
153.8   to notice, participation, or due process. 
153.9      (n) Within ten calendar days after appointment, the hearing 
153.10  officer shall schedule and hold a prehearing conference.  At 
153.11  that conference, or later, the hearing officer may take any 
153.12  appropriate action that a court might take under Rule 16 of 
153.13  Minnesota Rules of Civil Procedure including, but not limited 
153.14  to, scheduling, jurisdiction, and listing witnesses including 
153.15  expert witnesses. 
153.16     (o) A hearing officer or hearing review officer appointed 
153.17  under this subdivision shall be deemed to be an employee of the 
153.18  state under section 3.732 for the purposes of section 3.736 only.
153.19     (p) In order to be eligible for selection, hearing officers 
153.20  and hearing review officers shall participate in training and 
153.21  follow procedures as designated by the commissioner. 
153.22     (q) The hearing officer may admit all evidence which 
153.23  possesses probative value, including hearsay, if it is the type 
153.24  of evidence on which reasonable, prudent persons are accustomed 
153.25  to rely in the conduct of their serious affairs.  The hearing 
153.26  officer shall give effect to the rules of privilege recognized 
153.27  by law.  Evidence which is incompetent, irrelevant, immaterial, 
153.28  or unduly repetitious shall be excluded. 
153.29     Sec. 24.  Minnesota Statutes 1996, section 120.17, 
153.30  subdivision 7a, is amended to read: 
153.31     Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
153.32  Responsibility for special instruction and services for a 
153.33  visually disabled or hearing impaired child attending the 
153.34  Minnesota state academy for the deaf or the Minnesota state 
153.35  academy for the blind shall be determined in the following 
153.36  manner: 
154.1      (a) The legal residence of the child shall be the school 
154.2   district in which the child's parent or guardian resides. 
154.3      (b) When it is determined pursuant to section 128A.05, 
154.4   subdivision 1 or 2, that the child is entitled to attend either 
154.5   school, the state board of the Faribault academies shall provide 
154.6   the appropriate educational program for the child.  The state 
154.7   board of the Faribault academies shall make a tuition charge to 
154.8   the child's district of residence for the cost of providing the 
154.9   program.  The amount of tuition charged shall not exceed the 
154.10  basic revenue of the district for that child, for the amount of 
154.11  time the child is in the program.  For purposes of this 
154.12  subdivision, "basic revenue" has the meaning given it in section 
154.13  124A.22, subdivision 2.  The district of the child's residence 
154.14  shall pay the tuition and may claim general education aid for 
154.15  the child.  Tuition received by the state board of the Faribault 
154.16  academies, except for tuition received under clause (c), shall 
154.17  be deposited in the state treasury as provided in clause (g). 
154.18     (c) In addition to the tuition charge allowed in clause 
154.19  (b), the academies may charge the child's district of residence 
154.20  for the academy's unreimbursed cost of providing an 
154.21  instructional aide assigned to that child, if that aide is 
154.22  required by the child's individual education plan.  Tuition 
154.23  received under this clause must be used by the academies to 
154.24  provide the required service. 
154.25     (d) When it is determined that the child can benefit from 
154.26  public school enrollment but that the child should also remain 
154.27  in attendance at the applicable school, the school district 
154.28  where the institution is located shall provide an appropriate 
154.29  educational program for the child and shall make a tuition 
154.30  charge to the state board of the Faribault academies for the 
154.31  actual cost of providing the program, less any amount of aid 
154.32  received pursuant to section 124.32.  The state board of the 
154.33  Faribault academies shall pay the tuition and other program 
154.34  costs including the unreimbursed transportation costs.  Aids for 
154.35  children with a disability shall be paid to the district 
154.36  providing the special instruction and services.  Special 
155.1   transportation shall be provided by the district providing the 
155.2   educational program and the state shall reimburse such district 
155.3   within the limits provided by law.  
155.4      (e) Notwithstanding the provisions of clauses (b) and (d), 
155.5   the state board of the Faribault academies may agree to make a 
155.6   tuition charge for less than the amount specified in clause (b) 
155.7   for pupils attending the applicable school who are residents of 
155.8   the district where the institution is located and who do not 
155.9   board at the institution, if that district agrees to make a 
155.10  tuition charge to the state board of the Faribault academies for 
155.11  less than the amount specified in clause (d) for providing 
155.12  appropriate educational programs to pupils attending the 
155.13  applicable school. 
155.14     (f) Notwithstanding the provisions of clauses (b) and (d), 
155.15  the state board of the Faribault academies may agree to supply 
155.16  staff from the Minnesota state academy for the deaf and the 
155.17  Minnesota state academy for the blind to participate in the 
155.18  programs provided by the district where the institutions are 
155.19  located when the programs are provided to students in attendance 
155.20  at the state schools.  
155.21     (g) On May 1 of each year, the state board of the Faribault 
155.22  academies shall count the actual number of Minnesota resident 
155.23  kindergarten and elementary students and the actual number of 
155.24  Minnesota resident secondary students enrolled and receiving 
155.25  education services at the Minnesota state academy for the deaf 
155.26  and the Minnesota state academy for the blind.  The state board 
155.27  of the Faribault academies shall deposit in the state treasury 
155.28  an amount equal to all tuition received less:  
155.29     (1) the total number of students on May 1 less 175, times 
155.30  the ratio of the number of kindergarten and elementary students 
155.31  to the total number of students on May 1, times the general 
155.32  education formula allowance; plus 
155.33     (2) the total number of students on May 1 less 175, times 
155.34  the ratio of the number of secondary students on May 1 to the 
155.35  total number of students on May 1, times 1.3, times the general 
155.36  education formula allowance.  
156.1      (h) The sum provided by the calculation in clause (g), 
156.2   subclauses (1) and (2), must be deposited in the state treasury 
156.3   and credited to the general operation account of the academy for 
156.4   the deaf and the academy for the blind.  
156.5      (i) There is annually appropriated to the department of 
156.6   children, families, and learning for the Faribault academies the 
156.7   tuition amounts received and credited to the general operation 
156.8   account of the academies under this section.  A balance in an 
156.9   appropriation under this paragraph does not cancel but is 
156.10  available in successive fiscal years. 
156.11     Sec. 25.  Minnesota Statutes 1996, section 120.66, 
156.12  subdivision 1, is amended to read: 
156.13     Subdivision 1.  The state board of education commissioner 
156.14  of children, families, and learning shall: 
156.15     (1) Promulgate rules necessary to the operation of sections 
156.16  120.59 to 120.67; 
156.17     (2) Cooperate with and provide supervision of flexible 
156.18  learning year programs to determine compliance with the 
156.19  provisions of sections 120.59 to 120.67, the state board 
156.20  department standards and qualifications, and the proposed 
156.21  program as submitted and approved; 
156.22     (3) Provide any necessary adjustments of (a) attendance and 
156.23  membership computations and (b) the dates and percentages of 
156.24  apportionment of state aids; 
156.25     (4) Consistent with the definition of "average daily 
156.26  membership" in section 124.17, subdivision 2, furnish the board 
156.27  of a district implementing a flexible learning year program with 
156.28  a formula for computing average daily membership.  This formula 
156.29  shall be computed so that tax levies to be made by the district, 
156.30  state aids to be received by the district, and any and all other 
156.31  formulas based upon average daily membership are not affected 
156.32  solely as a result of adopting this plan of instruction. 
156.33     Sec. 26.  Minnesota Statutes 1996, section 120.66, 
156.34  subdivision 2, is amended to read: 
156.35     Subd. 2.  Sections 120.59 to 120.67 shall not be construed 
156.36  to authorize the state board commissioner to require the 
157.1   establishment of a flexible learning year program in any 
157.2   district in which the board has not voted to establish, 
157.3   maintain, and operate such a program. 
157.4      Sec. 27.  Minnesota Statutes 1996, section 120.73, 
157.5   subdivision 1, is amended to read: 
157.6      Subdivision 1.  A school board is authorized to require 
157.7   payment of fees in the following areas: 
157.8      (a) in any program where the resultant product, in excess 
157.9   of minimum requirements and at the pupil's option, becomes the 
157.10  personal property of the pupil; 
157.11     (b) admission fees or charges for extra curricular 
157.12  activities, where attendance is optional and where the admission 
157.13  fees or charges a student must pay to attend or participate in 
157.14  an extracurricular activity is the same for all students, 
157.15  regardless of whether the student is enrolled in a public or 
157.16  home school; 
157.17     (c) a security deposit for the return of materials, 
157.18  supplies, or equipment; 
157.19     (d) personal physical education and athletic equipment and 
157.20  apparel, although any pupil may personally provide it if it 
157.21  meets reasonable requirements and standards relating to health 
157.22  and safety established by the school board; 
157.23     (e) items of personal use or products which a student has 
157.24  an option to purchase such as student publications, class rings, 
157.25  annuals, and graduation announcements; 
157.26     (f) fees specifically permitted by any other statute, 
157.27  including but not limited to section 171.04, subdivision 1, 
157.28  clause (1); 
157.29     (g) field trips considered supplementary to a district 
157.30  educational program; 
157.31     (h) any authorized voluntary student health and accident 
157.32  benefit plan; 
157.33     (i) for the use of musical instruments owned or rented by 
157.34  the district, a reasonable rental fee not to exceed either the 
157.35  rental cost to the district or the annual depreciation plus the 
157.36  actual annual maintenance cost for each instrument; 
158.1      (j) transportation of pupils to and from extra curricular 
158.2   activities conducted at locations other than school, where 
158.3   attendance is optional; 
158.4      (k) transportation of pupils to and from school for which 
158.5   aid for fiscal year 1996 is not authorized under Minnesota 
158.6   Statutes 1994, section 124.223, subdivision 1, and for which 
158.7   levy for fiscal year 1996 is not authorized under Minnesota 
158.8   Statutes 1994, section 124.226, subdivision 5, if a district 
158.9   charging fees for transportation of pupils establishes 
158.10  guidelines for that transportation to ensure that no pupil is 
158.11  denied transportation solely because of inability to pay; 
158.12     (l) motorcycle classroom education courses conducted 
158.13  outside of regular school hours; provided the charge shall not 
158.14  exceed the actual cost of these courses to the school district; 
158.15     (m) transportation to and from post-secondary institutions 
158.16  for pupils enrolled under the post-secondary enrollment options 
158.17  program under section 123.39, subdivision 16.  Fees collected 
158.18  for this service must be reasonable and shall be used to reduce 
158.19  the cost of operating the route.  Families who qualify for 
158.20  mileage reimbursement under section 123.3514, subdivision 8, may 
158.21  use their state mileage reimbursement to pay this fee.  If no 
158.22  fee is charged, districts shall allocate costs based on the 
158.23  number of pupils riding the route; and 
158.24     (n) fees or tuition for instruction qualifying as an 
158.25  education-related expense according to section 290.0674, 
158.26  subdivision 1, clause (1). 
158.27     Sec. 28.  Minnesota Statutes 1996, section 120.74, 
158.28  subdivision 1, is amended to read: 
158.29     Subdivision 1.  (a) A school board is not authorized to 
158.30  charge fees in the following areas: 
158.31     (1) textbooks, workbooks, art materials, laboratory 
158.32  supplies, towels; 
158.33     (2) supplies necessary for participation in any 
158.34  instructional course except as authorized in sections 120.73 and 
158.35  120.75; 
158.36     (3) field trips which are required as a part of a basic 
159.1   education program or course; 
159.2      (4) graduation caps, gowns, any specific form of dress 
159.3   necessary for any educational program, and diplomas; 
159.4      (5) instructional costs for necessary school personnel 
159.5   employed in any course or educational program required for 
159.6   graduation; 
159.7      (6) library books required to be utilized for any 
159.8   educational course or program; 
159.9      (7) admission fees, dues, or fees for any activity the 
159.10  pupil is required to attend; 
159.11     (8) any admission or examination cost for any required 
159.12  educational course or program, except as authorized in section 
159.13  120.73, subdivision 1, clause (n); 
159.14     (9) locker rentals; 
159.15     (10) transportation of pupils (i) for which state 
159.16  transportation aid for fiscal year 1996 is authorized pursuant 
159.17  to Minnesota Statutes 1994, section 124.223, or (ii) for which a 
159.18  levy for fiscal year 1996 is authorized under Minnesota Statutes 
159.19  1994, section 124.226, subdivision 5. 
159.20     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
159.21  school board may charge fees for textbooks, workbooks, and 
159.22  library books, lost or destroyed by students.  The board must 
159.23  annually notify parents or guardians and students about its 
159.24  policy to charge a fee under this paragraph. 
159.25     Sec. 29.  Minnesota Statutes 1996, section 121.02, 
159.26  subdivision 1, is amended to read: 
159.27     Subdivision 1.  [DEPARTMENT.] A state department of 
159.28  children, families, and learning is hereby created which shall 
159.29  be maintained under the direction of a state board of education 
159.30  composed of nine representative citizens of the state, at least 
159.31  one of whom shall reside in each congressional district in the 
159.32  state. 
159.33     Of the nine representative citizens of the state who are 
159.34  appointed to the state board of education not less than three 
159.35  members thereof shall previously thereto have served as an 
159.36  elected member of a board of education of a school district 
160.1   however organized. 
160.2      The members of the state board shall be appointed by the 
160.3   governor, with the advice and consent of the senate.  One member 
160.4   shall be chosen annually as president, but no member shall serve 
160.5   as president more than three consecutive years.  The state board 
160.6   shall hold its annual meeting in August.  It shall hold meetings 
160.7   on dates and at places as it designates.  No member shall hold 
160.8   any public office, or represent or be employed by any board of 
160.9   education or school district, public or private, and shall not 
160.10  voluntarily have any personal financial interest in any contract 
160.11  with a board of education or school district, or be engaged in 
160.12  any capacity where a conflict of interest may arise the 
160.13  commissioner of children, families, and learning. 
160.14     Sec. 30.  Minnesota Statutes 1996, section 121.11, 
160.15  subdivision 7d, is amended to read: 
160.16     Subd. 7d.  [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, 
160.17  AND LICENSURE RULES.] (a) The state board may By January 10, 
160.18  1999, the commissioner shall make rules relating to 
160.19  desegregation/integration, and inclusive education, and 
160.20  licensure of school personnel not licensed by the board of 
160.21  teaching. 
160.22     (b) In adopting a rule related to school 
160.23  desegregation/integration, the state board commissioner shall 
160.24  address the need for equal educational opportunities for all 
160.25  students and racial balance as defined by the state board.  
160.26     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
160.27  121.1113, subdivision 1, is amended to read: 
160.28     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
160.29  with advice from experts with appropriate technical 
160.30  qualifications and experience and stakeholders, shall include in 
160.31  the comprehensive assessment system, for each grade level to be 
160.32  tested, a single statewide norm-referenced or 
160.33  criterion-referenced test, or a combination of a norm-referenced 
160.34  and a criterion-referenced test, which shall be highly 
160.35  correlated with the state's graduation standards and 
160.36  administered annually to all students in the third, fifth, and 
161.1   eighth grades.  The commissioner shall establish one or more 
161.2   months during which schools shall administer the tests to 
161.3   students each school year.  The Minnesota basic skills tests in 
161.4   reading and mathematics shall fulfill students' eighth grade 
161.5   testing requirements.  
161.6      (b) In addition, at the secondary level, districts shall 
161.7   assess student performance in all required learning areas and 
161.8   selected required standards within each area of the profiles of 
161.9   learning.  The testing instruments and testing process shall be 
161.10  determined by the commissioner.  The results shall be aggregated 
161.11  at the site and district level.  The testing shall be 
161.12  administered beginning in the 1999-2000 school year and 
161.13  thereafter. 
161.14     (c) The comprehensive assessment system shall include an 
161.15  evaluation of school site and school district performance levels 
161.16  during the 1997-1998 school year and thereafter using an 
161.17  established performance baseline developed from students' test 
161.18  scores under this section that records, at a minimum, students' 
161.19  unweighted mean test scores in each tested subject, a second 
161.20  performance baseline that reports, at a minimum, the same 
161.21  unweighted mean test scores of only those students enrolled in 
161.22  the school by January 1 of the previous school year, and a third 
161.23  performance baseline that reports the same unweighted test 
161.24  scores of all students except those students receiving limited 
161.25  English proficiency instruction.  The evaluation also shall 
161.26  record separately, in proximity to the performance baselines, 
161.27  the percentages of students who are eligible to receive a free 
161.28  or reduced price school meal, demonstrate limited English 
161.29  proficiency, or are eligible to receive special education 
161.30  services. 
161.31     (d) In addition to the testing and reporting requirements 
161.32  under paragraphs (a), (b), and (c), the commissioner, in 
161.33  consultation with the state board of education, shall include 
161.34  the following components in the statewide educational 
161.35  accountability and public reporting system: 
161.36     (1) uniform statewide testing of all third, fifth, eighth, 
162.1   and post-eighth grade students with exemptions, only with parent 
162.2   or guardian approval, from the testing requirement only for 
162.3   those very few students for whom the student's individual 
162.4   education plan team under section 120.17, subdivision 2, 
162.5   determines that the student is incapable of taking a statewide 
162.6   test, or a limited English proficiency student under section 
162.7   126.262, subdivision 2, if the student has been in the United 
162.8   States for fewer than 12 months and for whom special language 
162.9   barriers exist, such as the student's native language does not 
162.10  have a written form or the district does not have access to 
162.11  appropriate interpreter services for the student's native 
162.12  language; 
162.13     (2) educational indicators that can be aggregated and 
162.14  compared across school districts and across time on a statewide 
162.15  basis; 
162.16     (3) students' scores on the American College Test; 
162.17     (4) participation in the National Assessment of Educational 
162.18  Progress so that the state can benchmark its performance against 
162.19  the nation and other states, and, where possible, against other 
162.20  countries, and contribute to the national effort to monitor 
162.21  achievement; and 
162.22     (5) basic skills and advanced competencies connecting 
162.23  teaching and learning to high academic standards, assessment, 
162.24  and transitions to citizenship and employment. 
162.25     (e) Districts must report exemptions under paragraph (d), 
162.26  clause (1), to the commissioner consistent with a format 
162.27  provided by the commissioner. 
162.28     Sec. 32.  Minnesota Statutes 1996, section 121.1115, 
162.29  subdivision 1, is amended to read: 
162.30     Subdivision 1.  [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 
162.31  REPORTING.] Consistent with the state board of education process 
162.32  to adopt a results-oriented graduation rule under section 
162.33  121.11, subdivision 7c, the state board of education and The 
162.34  department of children, families, and learning, in consultation 
162.35  with education and other system stakeholders, shall establish a 
162.36  coordinated and comprehensive system of educational 
163.1   accountability and public reporting that promotes higher 
163.2   academic achievement. 
163.3      Sec. 33.  Minnesota Statutes 1996, section 121.14, is 
163.4   amended to read: 
163.5      121.14 [RECOMMENDATIONS; BUDGET.] 
163.6      The state board and the commissioner of children, families, 
163.7   and learning shall recommend to the governor and legislature 
163.8   such modification and unification of laws relating to the state 
163.9   system of education as shall make those laws more readily 
163.10  understood and more effective in execution.  The commissioner of 
163.11  children, families, and learning shall prepare a biennial 
163.12  education budget which shall be submitted to the governor and 
163.13  legislature, such budget to contain a complete statement of 
163.14  finances pertaining to the maintenance of the state department 
163.15  and to the distribution of state aid.  
163.16     Sec. 34.  Minnesota Statutes 1996, section 121.148, 
163.17  subdivision 3, is amended to read: 
163.18     Subd. 3.  [NEGATIVE REVIEW AND COMMENT.] (a) If the 
163.19  commissioner submits a negative review and comment for a 
163.20  proposal according to section 121.15, the following steps must 
163.21  be taken: 
163.22     (1) the commissioner must notify the school board of the 
163.23  proposed negative review and comment and schedule a public 
163.24  meeting within 60 days of the notification within that school 
163.25  district to discuss the proposed negative review and comment on 
163.26  the school facility; and 
163.27     (2) the school board shall appoint an advisory task force 
163.28  of up to five members to advise the school board and the 
163.29  commissioner on the advantages, disadvantages, and alternatives 
163.30  to the proposed facility at the public meeting.  One member of 
163.31  the advisory task force must also be a member of the county 
163.32  facilities group. 
163.33     (b) After attending the public meeting, the commissioner 
163.34  shall reconsider the proposal.  If the commissioner submits a 
163.35  negative review and comment, the school board may appeal that 
163.36  decision to the state board of education under chapter 14.  The 
164.1   state board of education may either uphold the commissioner's 
164.2   negative review and comment or instruct the commissioner to 
164.3   submit a positive or unfavorable review and comment on the 
164.4   proposed facility. 
164.5      (c) A school board may not proceed with construction if the 
164.6   state board of education upholds the commissioner's negative 
164.7   review and comment is upheld or if the commissioner's negative 
164.8   review and comment is not appealed. 
164.9      Sec. 35.  Minnesota Statutes 1996, section 121.16, is 
164.10  amended by adding a subdivision to read: 
164.11     Subd. 4.  [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The 
164.12  commissioner of children, families, and learning shall prepare a 
164.13  uniform system of records for public schools and require reports 
164.14  from superintendents and principals of schools, teachers, school 
164.15  officers, and the chief officers of public and other educational 
164.16  institutions to give such facts as it may deem of public value.  
164.17  All reports required of school districts by the commissioner 
164.18  shall be in conformance with the uniform financial accounting 
164.19  and reporting system.  With the cooperation of the state 
164.20  auditor, the commissioner shall establish and carry into effect 
164.21  a uniform system of accounting by public school officers and 
164.22  shall have authority to supervise and examine the accounts and 
164.23  other records of all public schools. 
164.24     Sec. 36.  Minnesota Statutes 1996, section 121.16, is 
164.25  amended by adding a subdivision to read: 
164.26     Subd. 5.  [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 
164.27  The commissioner of children, families, and learning shall adopt 
164.28  goals for and exercise general supervision over public schools 
164.29  and public educational agencies in the state, classify and 
164.30  standardize public elementary and secondary schools, and prepare 
164.31  for them outlines and suggested courses of study.  The 
164.32  commissioner shall develop a plan to attain the adopted goals.  
164.33  The commissioner may recognize educational accrediting agencies 
164.34  for the sole purposes of sections 120.101, 120.102, and 120.103. 
164.35     Sec. 37.  Minnesota Statutes 1996, section 121.16, is 
164.36  amended by adding a subdivision to read: 
165.1      Subd. 6.  [ADMINISTRATIVE RULES.] The commissioner may 
165.2   adopt new rules and amend them or amend any existing rules only 
165.3   under specific authority.  The commissioner may repeal any 
165.4   existing rules.  Notwithstanding the provisions of section 
165.5   14.05, subdivision 4, the commissioner may grant a variance to 
165.6   rules adopted by the commissioner upon application by a school 
165.7   district for purposes of implementing experimental programs in 
165.8   learning or school management.  This subdivision shall not 
165.9   prohibit the commissioner from making technical changes or 
165.10  corrections to adopted rules. 
165.11     Sec. 38.  Minnesota Statutes 1996, section 121.16, is 
165.12  amended by adding a subdivision to read: 
165.13     Subd. 7.  [LICENSURE RULES.] The commissioner may make 
165.14  rules relating to licensure of school personnel not licensed by 
165.15  the board of teaching. 
165.16     Sec. 39.  Minnesota Statutes 1996, section 121.16, is 
165.17  amended by adding a subdivision to read: 
165.18     Subd. 8.  [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 
165.19  commissioner may amend rules to reflect changes in the national 
165.20  minimum standard score for passing the general education 
165.21  development (GED) tests. 
165.22     Sec. 40.  Minnesota Statutes 1996, section 121.16, is 
165.23  amended by adding a subdivision to read: 
165.24     Subd. 9.  [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 
165.25  request of any superintendent of any public or private school 
165.26  teaching high school courses in the state, the commissioner 
165.27  shall designate or prepare uniform forms for state examinations 
165.28  in each high school subject during the month of May of each 
165.29  year; the request shall be in writing and delivered to the 
165.30  commissioner before January 1 of that year. 
165.31     Sec. 41.  Minnesota Statutes 1996, section 121.16, is 
165.32  amended by adding a subdivision to read: 
165.33     Subd. 10.  [EVENING SCHOOLS.] The commissioner shall 
165.34  exercise general supervision over the public evening schools, 
165.35  adult education programs, and summer programs. 
165.36     Sec. 42.  Minnesota Statutes 1996, section 121.16, is 
166.1   amended by adding a subdivision to read: 
166.2      Subd. 11.  [TEACHER RULE VARIANCES.] Notwithstanding any 
166.3   law to the contrary, and only upon receiving the agreement of 
166.4   the state board of teaching, the commissioner of children, 
166.5   families, and learning may grant a variance to rules governing 
166.6   licensure of teachers for those teachers licensed by the board 
166.7   of teaching.  The commissioner may grant a variance, without the 
166.8   agreement of the board of teaching, to rules adopted by the 
166.9   commissioner governing licensure of teachers for those teachers 
166.10  the commissioner licenses. 
166.11     Sec. 43.  Minnesota Statutes 1996, section 121.16, is 
166.12  amended by adding a subdivision to read: 
166.13     Subd. 12.  [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 
166.14  commissioner of finance shall establish for the commissioner of 
166.15  children, families, and learning a revolving fund for deposit of 
166.16  storage and handling charges paid by recipients of donated foods 
166.17  shipped by the school lunch section of the department of 
166.18  children, families, and learning.  These funds are to be used 
166.19  only to pay storage and related charges as they are incurred for 
166.20  United States Department of Agriculture foods. 
166.21     The commissioner of finance shall also establish a 
166.22  revolving fund for the department of children, families, and 
166.23  learning to deposit charges paid by recipients of processed 
166.24  commodities and for any authorized appropriation transfers for 
166.25  the purpose of this subdivision.  These funds are to be used 
166.26  only to pay for commodity processing and related charges as they 
166.27  are incurred using United States Department of Agriculture 
166.28  donated commodities. 
166.29     Sec. 44.  Minnesota Statutes 1996, section 121.1601, 
166.30  subdivision 2, is amended to read: 
166.31     Subd. 2.  [COORDINATION.] The commissioner shall coordinate 
166.32  the office activities under subdivision 1 with new or existing 
166.33  department and state board of education efforts to accomplish 
166.34  school desegregation/integration.  The commissioner may request 
166.35  information or assistance from, or contract with, any state or 
166.36  local agency or officer, local unit of government, or recognized 
167.1   expert to assist the commissioner in performing the activities 
167.2   described in subdivision 1.  
167.3      Sec. 45.  Minnesota Statutes 1996, section 121.612, 
167.4   subdivision 2, is amended to read: 
167.5      Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
167.6   Minnesota academic excellence foundation.  The purpose of the 
167.7   foundation shall be to promote academic excellence in Minnesota 
167.8   public and nonpublic schools and communities through 
167.9   public-private partnerships.  The foundation shall be a 
167.10  nonprofit organization.  The board of directors of the 
167.11  foundation and foundation activities are under the direction of 
167.12  the state board of education commissioner of children, families, 
167.13  and learning. 
167.14     Sec. 46.  Minnesota Statutes 1996, section 121.612, 
167.15  subdivision 3, is amended to read: 
167.16     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
167.17  the foundation shall consist of the commissioner of children, 
167.18  families, and learning, a member of the state board of education 
167.19  selected by the state board who shall serve as chair and 20 
167.20  members to be appointed by the governor.  Of the 20 members 
167.21  appointed by the governor, eight shall represent a variety of 
167.22  education groups and 12 shall represent a variety of business 
167.23  groups.  The commissioner of children, families, and learning 
167.24  shall serve as secretary for the board of directors and provide 
167.25  administrative support to the foundation.  An executive 
167.26  committee of the foundation board composed of the board officers 
167.27  and chairs of board committees, may only advise and make 
167.28  recommendations to the foundation board. 
167.29     Sec. 47.  Minnesota Statutes 1996, section 121.612, 
167.30  subdivision 6, is amended to read: 
167.31     Subd. 6.  [CONTRACTS.] The foundation board shall review 
167.32  and approve each contract of the board.  Each contract of the 
167.33  foundation board shall be subject to the same review and 
167.34  approval procedures as a contract of the state board of 
167.35  education commissioner of children, families, and learning. 
167.36     Sec. 48.  Minnesota Statutes 1996, section 121.612, 
168.1   subdivision 7, is amended to read: 
168.2      Subd. 7.  [FOUNDATION STAFF.] (a) The state board 
168.3   commissioner shall appoint the executive director and other 
168.4   staff who shall perform duties and have responsibilities solely 
168.5   related to the foundation.  
168.6      (b) As part of the annual plan of work, the foundation, 
168.7   under the direction of the state board commissioner, may appoint 
168.8   up to three employees.  The employees appointed under this 
168.9   paragraph are not state employees under chapter 43A, but are 
168.10  covered under section 3.736.  At the foundation board's 
168.11  discretion, the employees may participate in the state health 
168.12  and state insurance plans for employees in unclassified 
168.13  service.  The employees shall be supervised by the executive 
168.14  director. 
168.15     Sec. 49.  Minnesota Statutes 1996, section 121.612, 
168.16  subdivision 9, is amended to read: 
168.17     Subd. 9.  [REPORT.] The board of directors of the 
168.18  foundation shall submit an annual report to the state board of 
168.19  education commissioner of children, families, and learning on 
168.20  the progress of its activities.  The annual report shall contain 
168.21  a financial report for the preceding year, including all 
168.22  receipts and expenditures of the foundation. 
168.23     Sec. 50.  Minnesota Statutes 1997 Supplement, section 
168.24  121.615, subdivision 2, is amended to read: 
168.25     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
168.26  Minnesota school-to-work student organization foundation.  The 
168.27  purpose of the foundation shall be to promote vocational student 
168.28  organizations and applied leadership opportunities in Minnesota 
168.29  public and nonpublic schools through public-private 
168.30  partnerships.  The foundation shall be a nonprofit 
168.31  organization.  The board of directors of the foundation and 
168.32  activities of the foundation are under the direction of the 
168.33  state board of education commissioner of children, families, and 
168.34  learning.  
168.35     Sec. 51.  Minnesota Statutes 1997 Supplement, section 
168.36  121.615, subdivision 6, is amended to read: 
169.1      Subd. 6.  [CONTRACTS.] The foundation board shall review 
169.2   and approve each contract of the board.  Each contract of the 
169.3   foundation board shall be subject to the same review and 
169.4   approval procedures as a contract of the state board of 
169.5   education commissioner of children, families, and learning. 
169.6      Sec. 52.  Minnesota Statutes 1997 Supplement, section 
169.7   121.615, subdivision 7, is amended to read: 
169.8      Subd. 7.  [FOUNDATION STAFF.] The state board of 
169.9   education commissioner of children, families, and learning shall 
169.10  appoint the executive director of the foundation from three 
169.11  candidates nominated and submitted by the foundation board of 
169.12  directors and, as necessary, other staff who shall perform 
169.13  duties and have responsibilities solely related to the 
169.14  foundation.  The employees appointed are not state employees 
169.15  under chapter 43A, but are covered under section 3.736.  The 
169.16  employees may participate in the state health and state 
169.17  insurance plans for employees in unclassified service.  The 
169.18  employees shall be supervised by the executive director. 
169.19     The commissioner shall appoint from the office of lifework 
169.20  development a liaison to the foundation board. 
169.21     Sec. 53.  Minnesota Statutes 1997 Supplement, section 
169.22  121.615, subdivision 10, is amended to read: 
169.23     Subd. 10.  [REPORT.] The board of directors of the 
169.24  foundation shall submit an annual report on the progress of its 
169.25  activities to the state board of education commissioner of 
169.26  children, families, and learning and to the board of trustees of 
169.27  the Minnesota state colleges and universities.  The annual 
169.28  report shall contain a financial report for the preceding year.  
169.29  The foundation shall submit a biennium report to the legislature 
169.30  before February 15, in the odd-numbered year. 
169.31     Sec. 54.  Minnesota Statutes 1996, section 121.932, 
169.32  subdivision 5, is amended to read: 
169.33     Subd. 5.  [ESSENTIAL DATA.] The department shall maintain a 
169.34  list of essential data elements which must be recorded and 
169.35  stored about each pupil, licensed and nonlicensed staff member, 
169.36  and educational program.  Each school district must request the 
170.1   social security number on each student as part of the basic 
170.2   student enrollment and must include it as one of the essential 
170.3   data elements.  Each school district must provide the essential 
170.4   data to the department in the form and format prescribed by the 
170.5   department. 
170.6      Sec. 55.  Minnesota Statutes 1996, section 122.23, 
170.7   subdivision 2b, is amended to read: 
170.8      Subd. 2b.  [ORDERLY REDUCTION PLAN.] As part of the 
170.9   resolution required by subdivision 2, the school board must 
170.10  prepare a plan for the orderly reduction of the membership of 
170.11  the board to six or seven members and a plan for the 
170.12  establishment or dissolution of election districts.  The plan 
170.13  may shorten any or all terms of incumbent board members to 
170.14  achieve the orderly reduction.  The plan must be submitted to 
170.15  the secretary of state for review and comment. 
170.16     Sec. 56.  Minnesota Statutes 1996, section 122.23, 
170.17  subdivision 6, is amended to read: 
170.18     Subd. 6.  The commissioner shall, upon receipt of a plat, 
170.19  forthwith examine it and approve, modify or reject it.  The 
170.20  commissioner shall also approve or reject any proposal contained 
170.21  in the resolution or petition regarding the disposition of the 
170.22  bonded debt of the component districts.  If the plat shows the 
170.23  boundaries of proposed separate election districts and if the 
170.24  commissioner modifies the plat, the commissioner shall also 
170.25  modify the boundaries of the proposed separate election 
170.26  districts.  The commissioner shall conduct a hearing public 
170.27  meeting at the nearest county seat in the area upon reasonable 
170.28  notice to the affected districts and county boards if requested 
170.29  within 20 days after submission of the plat.  Such a hearing The 
170.30  public meeting may be requested by the board of any affected 
170.31  district, a county board of commissioners, or the petition of 20 
170.32  resident voters living within the area proposed for 
170.33  consolidation.  The commissioner shall endorse on the plat 
170.34  action regarding any proposal for the disposition of the bonded 
170.35  debt of component districts and the reasons for these actions 
170.36  and within after a minimum of 20 days, but no more than 60 days 
171.1   of the date of the receipt of the plat, the commissioner shall 
171.2   return it to the county auditor who submitted it.  The 
171.3   commissioner shall furnish a copy of that plat, and the 
171.4   supporting statement and its endorsement to the auditor of each 
171.5   county containing any land area of the proposed new district.  
171.6   If land area of a particular county was included in the plat, as 
171.7   submitted by the county auditor, and all of such land area is 
171.8   excluded in the plat as modified and approved, the commissioner 
171.9   shall also furnish a copy of the modified plat, supporting 
171.10  statement, and any endorsement to the auditor of such county. 
171.11     Sec. 57.  Minnesota Statutes 1996, section 123.34, 
171.12  subdivision 9, is amended to read: 
171.13     Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
171.14  classified secondary school shall employ a superintendent who 
171.15  shall be an ex officio nonvoting member of the school board.  
171.16  The authority for selection and employment of a superintendent 
171.17  shall be vested in the school board in all cases.  An individual 
171.18  employed by a school board as a superintendent shall have an 
171.19  initial employment contract for a period of time no longer than 
171.20  three years from the date of employment.  Any subsequent 
171.21  employment contract must not exceed a period of three years.  A 
171.22  school board, at its discretion, may or may not renew an 
171.23  employment contract.  A school board shall not, by action or 
171.24  inaction, extend the duration of an existing employment 
171.25  contract.  Beginning 365 days prior to the expiration date of an 
171.26  existing employment contract, a school board may negotiate and 
171.27  enter into a subsequent employment contract to take effect upon 
171.28  the expiration of the existing contract.  A subsequent contract 
171.29  shall be contingent upon the employee completing the terms of an 
171.30  existing contract.  If a contract between a school board and a 
171.31  superintendent is terminated prior to the date specified in the 
171.32  contract, the school board may not enter into another 
171.33  superintendent contract with that same individual that has a 
171.34  term that extends beyond the date specified in the terminated 
171.35  contract.  A school board may terminate a superintendent during 
171.36  the term of an employment contract for any of the grounds 
172.1   specified in section 125.12, subdivision 6 or 8.  A 
172.2   superintendent shall not rely upon an employment contract with a 
172.3   school board to assert any other continuing contract rights in 
172.4   the position of superintendent under section 125.12.  
172.5   Notwithstanding the provisions of sections 122.532, 122.541, 
172.6   125.12, subdivision 6a or 6b, or any other law to the contrary, 
172.7   no individual shall have a right to employment as a 
172.8   superintendent based on order of employment in any district.  If 
172.9   two or more school districts enter into an agreement for the 
172.10  purchase or sharing of the services of a superintendent, the 
172.11  contracting districts have the absolute right to select one of 
172.12  the individuals employed to serve as superintendent in one of 
172.13  the contracting districts and no individual has a right to 
172.14  employment as the superintendent to provide all or part of the 
172.15  services based on order of employment in a contracting district. 
172.16  The superintendent of a district shall perform the following:  
172.17     (1) visit and supervise the schools in the district, report 
172.18  and make recommendations about their condition when advisable or 
172.19  on request by the board; 
172.20     (2) recommend to the board employment and dismissal of 
172.21  teachers; 
172.22     (3) superintend school grading practices and examinations 
172.23  for promotions; 
172.24     (4) make reports required by the commissioner of children, 
172.25  families, and learning; and 
172.26     (5) by January 10, submit an annual report to the 
172.27  commissioner in a manner prescribed by the commissioner, in 
172.28  consultation with school districts, identifying the amount of 
172.29  funding that the district requires to achieve a 90 percent 
172.30  student passage rate on the basic standards test taken in the 
172.31  eighth grade, and how much the district is cross-subsidizing 
172.32  programs with special education, compensatory, and general 
172.33  education revenue; and 
172.34     (6) perform other duties prescribed by the board. 
172.35     Sec. 58.  Minnesota Statutes 1996, section 123.35, 
172.36  subdivision 19a, is amended to read: 
173.1      Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
173.2   SUPPORT.] (a) No school district shall be required by any type 
173.3   of formal or informal agreement except an agreement to provide 
173.4   building space according to paragraph (f), including a joint 
173.5   powers agreement, or membership in any cooperative unit defined 
173.6   in subdivision 19b, paragraph (d), to participate in or provide 
173.7   financial support for the purposes of the agreement for a time 
173.8   period in excess of one four fiscal year years, or the time 
173.9   period set forth in this subdivision.  Any agreement, part of an 
173.10  agreement, or other type of requirement to the contrary is void. 
173.11     (b) This subdivision shall not affect the continued 
173.12  liability of a school district for its share of bonded 
173.13  indebtedness or other debt incurred as a result of any agreement 
173.14  before July 1, 1993.  The school district is liable only until 
173.15  the obligation or debt is discharged and only according to the 
173.16  payment schedule in effect on July 1, 1993, except that the 
173.17  payment schedule may be altered for the purpose of restructuring 
173.18  debt or refunding bonds outstanding on July 1, 1993, if the 
173.19  annual payments of the school district are not increased and if 
173.20  the total obligation of the school district for its share of 
173.21  outstanding bonds or other debt is not increased. 
173.22     (c) To cease participating in or providing financial 
173.23  support for any of the services or activities relating to the 
173.24  agreement or to terminate participation in the agreement, the 
173.25  school board shall adopt a resolution and notify other parties 
173.26  to the agreement of its decision on or before February 1 of any 
173.27  year.  The cessation or withdrawal shall be effective June 30 of 
173.28  the same year except that for a member of an education district 
173.29  organized under sections 122.91 to 122.95 or an intermediate 
173.30  district organized under chapter 136D, cessation or withdrawal 
173.31  shall be effective June 30 of the following fiscal year.  At the 
173.32  option of the school board, cessation or withdrawal may be 
173.33  effective June 30 of the following fiscal year for a district 
173.34  participating in any type of agreement.  
173.35     (d) Before issuing bonds or incurring other debt, the 
173.36  governing body responsible for implementing the agreement shall 
174.1   adopt a resolution proposing to issue bonds or incur other debt 
174.2   and the proposed financial effect of the bonds or other debt 
174.3   upon each participating district.  The resolution shall be 
174.4   adopted within a time sufficient to allow the school board to 
174.5   adopt a resolution within the time permitted by this paragraph 
174.6   and to comply with the statutory deadlines set forth in sections 
174.7   122.895, 125.12, and 125.17.  The governing body responsible for 
174.8   implementing the agreement shall notify each participating 
174.9   school board of the contents of the resolution.  Within 120 days 
174.10  of receiving the resolution of the governing body, the school 
174.11  board of the participating district shall adopt a resolution 
174.12  stating: 
174.13     (1) its concurrence with issuing bonds or incurring other 
174.14  debt; 
174.15     (2) its intention to cease participating in or providing 
174.16  financial support for the service or activity related to the 
174.17  bonds or other debt; or 
174.18     (3) its intention to terminate participation in the 
174.19  agreement. 
174.20     A school board adopting a resolution according to clause 
174.21  (1) is liable for its share of bonded indebtedness or other debt 
174.22  as proposed by the governing body implementing the agreement.  A 
174.23  school board adopting a resolution according to clause (2) is 
174.24  not liable for the bonded indebtedness or other debt, as 
174.25  proposed by the governing body, related to the services or 
174.26  activities in which the district ceases participating or 
174.27  providing financial support.  A school board adopting a 
174.28  resolution according to clause (3) is not liable for the bonded 
174.29  indebtedness or other debt proposed by the governing body 
174.30  implementing the agreement. 
174.31     (e) After July 1, 1993, a district is liable according to 
174.32  paragraph (d) for its share of bonded indebtedness or other debt 
174.33  incurred by the governing body implementing the agreement to the 
174.34  extent that the bonds or other debt are directly related to the 
174.35  services or activities in which the district participates or for 
174.36  which the district provides financial support.  The district has 
175.1   continued liability only until the obligation or debt is 
175.2   discharged and only according to the payment schedule in effect 
175.3   at the time the governing body implementing the agreement 
175.4   provides notice to the school board, except that the payment 
175.5   schedule may be altered for the purpose of refunding the 
175.6   outstanding bonds or restructuring other debt if the annual 
175.7   payments of the district are not increased and if the total 
175.8   obligation of the district for the outstanding bonds or other 
175.9   debt is not increased. 
175.10     (f) A school district that is a member of a cooperative 
175.11  unit as defined in subdivision 19b, paragraph (d), may obligate 
175.12  itself to participate in and provide financial support for an 
175.13  agreement with a cooperative unit to provide school building 
175.14  space for a term not to exceed two years with an option on the 
175.15  part of the district to renew for an additional two years. 
175.16     Sec. 59.  Minnesota Statutes 1996, section 123.3514, is 
175.17  amended by adding a subdivision to read: 
175.18     Subd. 4f.  [PARTICIPATION IN HIGH SCHOOL 
175.19  ACTIVITIES.] Enrolling in a course under this section shall not, 
175.20  by itself, prohibit a pupil from participating in activities 
175.21  sponsored by the pupil's high school. 
175.22     Sec. 60.  Minnesota Statutes 1996, section 123.39, 
175.23  subdivision 1, is amended to read: 
175.24     Subdivision 1.  The board may provide for the 
175.25  transportation of pupils to and from school and for any other 
175.26  purpose.  The board may also provide for the transportation of 
175.27  pupils to schools in other districts for grades and departments 
175.28  not maintained in the district, including high school, at the 
175.29  expense of the district, when funds are available therefor and 
175.30  if agreeable to the district to which it is proposed to 
175.31  transport the pupils, for the whole or a part of the school 
175.32  year, as it may deem advisable, and subject to its rules.  In 
175.33  any school district, the board shall arrange for the attendance 
175.34  of all pupils living two miles or more from the school, except 
175.35  pupils whose transportation privileges have been revoked under 
175.36  section 123.805, subdivision 1, clause (6), or 123.7991, 
176.1   paragraph (b), or whose privileges have been voluntarily 
176.2   surrendered under subdivision 1a, through suitable provision for 
176.3   transportation or through the boarding and rooming of the pupils 
176.4   who may be more economically and conveniently provided for by 
176.5   that means.  Arrangements for attendance may include a 
176.6   requirement that parents or guardians request transportation 
176.7   before it is provided.  The board shall provide transportation 
176.8   to and from the home of a child with a disability not yet 
176.9   enrolled in kindergarten when special instruction and services 
176.10  under sections 120.17 and 120.1701 are provided in a location 
176.11  other than in the child's home.  When transportation is 
176.12  provided, scheduling of routes, establishment of the location of 
176.13  bus stops, manner and method of transportation, control and 
176.14  discipline of school children and any other matter relating 
176.15  thereto shall be within the sole discretion, control, and 
176.16  management of the school board.  The district may provide for 
176.17  the transportation of pupils or expend a reasonable amount for 
176.18  room and board of pupils whose attendance at school can more 
176.19  economically and conveniently be provided for by that means or 
176.20  who attend school in a building rented or leased by a district 
176.21  within the confines of an adjacent district. 
176.22     Sec. 61.  Minnesota Statutes 1996, section 123.39, is 
176.23  amended by adding a subdivision to read: 
176.24     Subd. 1a.  [VOLUNTARY SURRENDER OF TRANSPORTATION 
176.25  PRIVILEGES.] The parent or guardian of a secondary student may 
176.26  voluntarily surrender the secondary student's to and from school 
176.27  transportation privileges granted under subdivision 1, in 
176.28  exchange for the privilege of obtaining school parking at a 
176.29  reduced price. 
176.30     Sec. 62.  Minnesota Statutes 1996, section 123.805, 
176.31  subdivision 1, is amended to read: 
176.32     Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
176.33  district shall develop and implement a comprehensive, written 
176.34  policy governing pupil transportation safety, including 
176.35  transportation of nonpublic school students, when applicable.  
176.36  The policy shall, at minimum, contain: 
177.1      (1) provisions for appropriate student bus safety training 
177.2   under section 123.7991; 
177.3      (2) rules governing student conduct on school buses and in 
177.4   school bus loading and unloading areas; 
177.5      (3) a statement of parent or guardian responsibilities 
177.6   relating to school bus safety; 
177.7      (4) provisions for notifying students and parents or 
177.8   guardians of their responsibilities and the rules; 
177.9      (5) an intradistrict system for reporting school bus 
177.10  accidents or misconduct, and a system for dealing with local law 
177.11  enforcement officials in cases of criminal conduct on a school 
177.12  bus, and a system for reporting accidents, crimes, incidents of 
177.13  misconduct, and bus driver dismissals to the department of 
177.14  public safety under section 169.452; 
177.15     (6) a discipline policy to address violations of school bus 
177.16  safety rules, including procedures for revoking a student's bus 
177.17  riding privileges in cases of serious or repeated misconduct; 
177.18     (7) a system for integrating school bus misconduct records 
177.19  with other discipline records; 
177.20     (8) a statement of bus driver duties; 
177.21     (9) planned expenditures for safety activities under 
177.22  section 123.799 and, where applicable, provisions governing bus 
177.23  monitor qualifications, training, and duties; 
177.24     (10) rules governing the use and maintenance of type III 
177.25  vehicles, drivers of type III vehicles, qualifications to drive 
177.26  a type III vehicle, qualifications for a type III vehicle and 
177.27  the circumstances under which a student may be transported in a 
177.28  type III vehicle; 
177.29     (11) operating rules and procedures; 
177.30     (12) provisions for annual bus driver in-service training 
177.31  and evaluation; 
177.32     (13) emergency procedures; 
177.33     (14) a system for maintaining and inspecting equipment; 
177.34     (15) requirements of the school district, if any, that 
177.35  exceed state law minimum requirements for school bus operations; 
177.36  and 
178.1      (16) requirements for basic first aid training, which shall 
178.2   include the Heimlich maneuver and procedures for dealing with 
178.3   obstructed airways, shock, bleeding, and seizures. 
178.4      School districts are encouraged to use the model policy 
178.5   developed by the Minnesota school boards association, the 
178.6   department of public safety, and the department of children, 
178.7   families, and learning, as well as the current edition of the 
178.8   "National Standards for School Buses and Operations" published 
178.9   by the National Safety Council, in developing safety policies.  
178.10  Each district shall submit a copy of its policy under this 
178.11  subdivision to the school bus safety advisory committee no later 
178.12  than August 1, 1994.  Each district shall review its policy 
178.13  annually and make appropriate amendments, which must be 
178.14  submitted to the school bus safety advisory committee within one 
178.15  month of approval by the school board. 
178.16     Sec. 63.  Minnesota Statutes 1996, section 124.078, is 
178.17  amended to read: 
178.18     124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 
178.19     A state permanent school fund advisory committee is 
178.20  established to advise the department of natural resources on the 
178.21  management of permanent school fund land, which is held in trust 
178.22  for the school districts of the state.  The advisory committee 
178.23  shall consist of the following persons or their designees:  the 
178.24  chairs of the education committees of the legislature, the 
178.25  chairs of the senate committee on finance and house committee on 
178.26  ways and means, the chair of the senate environment and natural 
178.27  resources committee, the chair of the senate environment and 
178.28  agriculture budget division committee, the commissioner of 
178.29  children, families, and learning, one superintendent from a 
178.30  nonmetropolitan district, and one superintendent from a 
178.31  metropolitan area district.  The commissioner of natural 
178.32  resources shall serve as an ex officio member.  The school 
178.33  district superintendents shall be appointed by the commissioner 
178.34  of children, families, and learning.  
178.35     The advisory committee shall review the policies of the 
178.36  department of natural resources and current statutes on 
179.1   management of school trust fund lands at least semiannually and 
179.2   shall recommend necessary changes in statutes, policy, and 
179.3   implementation in order to ensure provident utilization of the 
179.4   permanent school fund lands. 
179.5      Sec. 64.  Minnesota Statutes 1996, section 124.225, 
179.6   subdivision 7f, is amended to read: 
179.7      Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
179.8   district shall reserve an amount equal to the greater of $500 or 
179.9   $1.50 times the number of fund balance pupil units, for that 
179.10  school year to provide student transportation safety programs 
179.11  under section 123.799.  This revenue may only be used if the 
179.12  district complies with the reporting requirements of section 
179.13  123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5. 
179.14     Sec. 65.  Minnesota Statutes 1996, section 124.225, 
179.15  subdivision 8m, is amended to read: 
179.16     Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
179.17  transportation safety aid equals the district's reserved revenue 
179.18  for transportation safety under subdivision 7f for that school 
179.19  year.  Failure of a school district to comply with the reporting 
179.20  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
179.21  171.321, subdivision 5, may result in a withholding of that 
179.22  district's transportation safety aid for that school year. 
179.23     Sec. 66.  Minnesota Statutes 1996, section 124.646, 
179.24  subdivision 4, is amended to read: 
179.25     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
179.26  described in this subdivision must be recorded as provided in 
179.27  this subdivision. 
179.28     (b) In each school district, the expenses for a school food 
179.29  service program for pupils must be attributed to a school food 
179.30  service fund.  Under a food service program, the school food 
179.31  service may prepare or serve milk, meals, or snacks in 
179.32  connection with school or community service activities. 
179.33     (c) Revenues and expenditures for food service activities 
179.34  must be recorded in the food service fund.  The costs of 
179.35  processing applications, accounting for meals, preparing and 
179.36  serving food, providing kitchen custodial services, and other 
180.1   expenses involving the preparing of meals or the kitchen section 
180.2   of the lunchroom may be charged to the food service fund or to 
180.3   the general fund of the district.  The costs of lunchroom 
180.4   supervision, lunchroom custodial services, lunchroom utilities, 
180.5   and other administrative costs of the food service program must 
180.6   be charged to the general fund. 
180.7      That portion of superintendent and fiscal manager costs 
180.8   that can be documented as attributable to the food service 
180.9   program may be charged to the food service fund provided that 
180.10  the school district does not employ or contract with a food 
180.11  service director or other individual who manages the food 
180.12  service program, or food service management company.  If the 
180.13  cost of the superintendent or fiscal manager is charged to the 
180.14  food service fund, the charge must be at a wage rate not to 
180.15  exceed the statewide average for food service directors as 
180.16  determined by the department of children, families, and learning.
180.17     (d) Capital expenditures for the purchase of food service 
180.18  equipment must be made from the capital general fund and not the 
180.19  food service fund, unless two conditions apply: 
180.20     (1) the unreserved balance in the food service fund at the 
180.21  end of the last fiscal year is greater than the cost of the 
180.22  equipment to be purchased; and 
180.23     (2) the department of children, families, and learning has 
180.24  approved the purchase of the equipment. 
180.25     (e) If the two conditions set out in paragraph (d) apply, 
180.26  the equipment may be purchased from the food service fund. 
180.27     (f) If a deficit in the food service fund exists at the end 
180.28  of a fiscal year, and the deficit is not eliminated by revenues 
180.29  from food service operations in the next fiscal year, then the 
180.30  deficit must be eliminated by a permanent fund transfer from the 
180.31  general fund at the end of that second fiscal year.  However, if 
180.32  a district contracts with a food service management company 
180.33  during the period in which the deficit has accrued, the deficit 
180.34  must be eliminated by a payment from the food service management 
180.35  company. 
180.36     (g) Notwithstanding paragraph (f), a district may incur a 
181.1   deficit in the food service fund for up to three years without 
181.2   making the permanent transfer if the district submits to the 
181.3   commissioner by January 1 of the second fiscal year a plan for 
181.4   eliminating that deficit at the end of the third fiscal year. 
181.5      (h) If a surplus in the food service fund exists at the end 
181.6   of a fiscal year for three successive years, a district may 
181.7   recode for that fiscal year the costs of lunchroom supervision, 
181.8   lunchroom custodial services, lunchroom utilities, and other 
181.9   administrative costs of the food service program charged to the 
181.10  general fund according to paragraph (c) and charge those costs 
181.11  to the food service fund in a total amount not to exceed the 
181.12  amount of surplus in the food service fund. 
181.13     Sec. 67.  Minnesota Statutes 1997 Supplement, section 
181.14  124.6475, is amended to read: 
181.15     124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 
181.16     States funds are available to compensate 
181.17  department-approved summer food program sponsors for reduced 
181.18  federal operating reimbursement rates under Public Law Number 
181.19  104-193, the federal summer food service program.  A sponsor is 
181.20  eligible for summer food service replacement aid equal to the 
181.21  sum of the following amounts: 
181.22     (1) for breakfast service, subtract the current year 
181.23  maximum reimbursement rate from the 1996 maximum reimbursement 
181.24  rate and multiply the result by the number of breakfasts the 
181.25  district served up to four cents per breakfast served by the 
181.26  sponsor during the current school program year; 
181.27     (2) for lunch or supper service, subtract the current year 
181.28  maximum reimbursement rate from the 1996 maximum reimbursement 
181.29  rate and multiply the result by the number of lunches and 
181.30  suppers the district served up to 14 cents per lunch or supper 
181.31  served by the sponsor during the current school program year; 
181.32  and 
181.33     (3) for supplement service, subtract the current year 
181.34  maximum reimbursement rate from the 1996 maximum reimbursement 
181.35  rate and multiply the result by the number of up to ten cents 
181.36  per supplement meals served by the district served sponsor 
182.1   during the current school program year. 
182.2      Sec. 68.  Minnesota Statutes 1997 Supplement, section 
182.3   124.648, subdivision 3, is amended to read: 
182.4      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
182.5   (a) The commissioner shall: 
182.6      (1) encourage all districts to participate in the school 
182.7   milk program for kindergartners; 
182.8      (2) prepare program guidelines, not subject to chapter 14 
182.9   until July 1, 1998, which will effectively and efficiently 
182.10  distribute appropriated and donated money to participating 
182.11  districts; and 
182.12     (3) seek donations and matching funds from appropriate 
182.13  private and public sources. 
182.14     (b) Program guidelines may provide for disbursement to 
182.15  districts through a mechanism of prepayments or by reimbursement 
182.16  for approved program expenses. 
182.17     (c) It is suggested that the benefits of the school milk 
182.18  program may reach the largest number of kindergarten students if 
182.19  districts are allowed to submit annual bids stating the 
182.20  per-serving level of support that would be acceptable to the 
182.21  district for their participation in the program.  The 
182.22  commissioner would review all bids received and approve bids in 
182.23  sufficient number and value to maximize the provision of milk to 
182.24  kindergarten students consistent with available funds. 
182.25     Sec. 69.  Minnesota Statutes 1997 Supplement, section 
182.26  125.05, subdivision 1c, is amended to read: 
182.27     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
182.28  ETHICS.] The state board of education commissioner of children, 
182.29  families, and learning shall issue licenses under its 
182.30  jurisdiction to persons the state board commissioner finds to be 
182.31  qualified and competent for their respective positions under the 
182.32  adopted rules it adopts.  The state board of education 
182.33  commissioner may develop, by rule, a code of ethics for 
182.34  supervisory personnel covering standards of professional 
182.35  practices, including areas of ethical conduct and professional 
182.36  performance and methods of enforcement. 
183.1      Sec. 70.  Minnesota Statutes 1997 Supplement, section 
183.2   125.05, subdivision 2, is amended to read: 
183.3      Subd. 2.  [EXPIRATION AND RENEWAL.] (a) Each license the 
183.4   department of children, families, and learning issues through 
183.5   its licensing section must bear the date of issue.  Licenses 
183.6   must expire and be renewed according to the respective rules the 
183.7   board of teaching or the state board of education commissioner 
183.8   of children, families, and learning adopts.  Requirements for 
183.9   renewing a license must include showing satisfactory evidence of 
183.10  successful teaching experience for at least one school year 
183.11  during the period covered by the license in grades or subjects 
183.12  for which the license is valid or completing such additional 
183.13  preparation as the board of teaching prescribes.  The state 
183.14  board of education commissioner shall establish requirements for 
183.15  renewing the licenses of supervisory personnel. 
183.16     (b) The board of teaching shall offer alternative 
183.17  continuing relicensure options for teachers who are accepted 
183.18  into and complete the national board for professional teaching 
183.19  standards certification process, and offer additional continuing 
183.20  relicensure options for teachers who earn national board for 
183.21  professional teaching standards certification.  Continuing 
183.22  relicensure requirements for teachers who do not maintain 
183.23  national board for professional teaching standards certification 
183.24  are those the board prescribes.  
183.25     Sec. 71.  Minnesota Statutes 1996, section 125.05, 
183.26  subdivision 4, is amended to read: 
183.27     Subd. 4.  [HUMAN RELATIONS.] The board of teaching and 
183.28  the state board of education commissioner of children, families, 
183.29  and learning shall accept training programs completed through 
183.30  Peace Corps, VISTA, or Teacher Corps in lieu of completion of 
183.31  the human relations component of the training program for 
183.32  purposes of issuing or renewing a license in education.  
183.33     Sec. 72.  Minnesota Statutes 1996, section 125.05, 
183.34  subdivision 8, is amended to read: 
183.35     Subd. 8.  [BACKGROUND CHECKS.] (a) The board of teaching 
183.36  and the state board of education commissioner of children, 
184.1   families, and learning shall request a criminal history 
184.2   background check from the superintendent of the bureau of 
184.3   criminal apprehension on all applicants for initial licenses 
184.4   under their jurisdiction.  An application for a license under 
184.5   this section must be accompanied by: 
184.6      (1) an executed criminal history consent form, including 
184.7   fingerprints; and 
184.8      (2) a money order or cashier's check payable to the bureau 
184.9   of criminal apprehension for the fee for conducting the criminal 
184.10  history background check. 
184.11     (b) The superintendent of the bureau of criminal 
184.12  apprehension shall perform the background check required under 
184.13  paragraph (a) by retrieving criminal history data maintained in 
184.14  the criminal justice information system computers and shall also 
184.15  conduct a search of the national criminal records repository, 
184.16  including the criminal justice data communications network.  The 
184.17  superintendent is authorized to exchange fingerprints with the 
184.18  Federal Bureau of Investigation for purposes of the criminal 
184.19  history check.  The superintendent shall recover the cost to the 
184.20  bureau of a background check through the fee charged to the 
184.21  applicant under paragraph (a). 
184.22     (c) The board of teaching or the state board of education 
184.23  commissioner of children, families, and learning may issue a 
184.24  license pending completion of a background check under this 
184.25  subdivision, but shall notify the individual that the 
184.26  individual's license may be revoked based on the result of the 
184.27  background check. 
184.28     Sec. 73.  Minnesota Statutes 1996, section 125.1885, 
184.29  subdivision 1, is amended to read: 
184.30     Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
184.31  that is an alternative to a graduate program in education 
184.32  administration for public school administrators to acquire an 
184.33  entrance license is established.  The program may be offered in 
184.34  any administrative field. 
184.35     (b) To participate in the alternative preparation program, 
184.36  the candidate must: 
185.1      (1) have a master's degree in an administrative area; 
185.2      (2) have been offered an administrative position in a 
185.3   school district, group of districts, or an education district 
185.4   approved by the state board of education commissioner of 
185.5   children, families, and learning to offer an alternative 
185.6   preparation licensure program; 
185.7      (3) have five years of experience in a field related to 
185.8   administration; and 
185.9      (4) document successful experiences working with children 
185.10  and adults. 
185.11     (c) An alternative preparation license is of one year 
185.12  duration and is issued by the state board of education 
185.13  commissioner of children, families, and learning to participants 
185.14  on admission to the alternative preparation program. 
185.15     Sec. 74.  Minnesota Statutes 1996, section 125.1885, 
185.16  subdivision 4, is amended to read: 
185.17     Subd. 4.  [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 
185.18  resident mentorship team must prepare for the state board of 
185.19  education commissioner of children, families, and learning an 
185.20  evaluation report on the performance of the alternative 
185.21  preparation licensee during the school year and a positive or 
185.22  negative recommendation on whether the alternative preparation 
185.23  licensee shall receive a standard entrance license. 
185.24     Sec. 75.  Minnesota Statutes 1996, section 125.1885, 
185.25  subdivision 5, is amended to read: 
185.26     Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board of 
185.27  education commissioner of children, families, and learning shall 
185.28  issue a standard entrance license to an alternative preparation 
185.29  licensee who has successfully completed the school year in the 
185.30  alternative preparation program and who has received a positive 
185.31  recommendation from the licensee's mentorship team. 
185.32     Sec. 76.  Minnesota Statutes 1996, section 125.191, is 
185.33  amended to read: 
185.34     125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 
185.35     Notwithstanding section 125.03, subdivision 1, a school 
185.36  district may employ as a head varsity coach of an 
186.1   interscholastic sport at its secondary school a person who does 
186.2   not have a license as head varsity coach of interscholastic 
186.3   sports and who does not have a bachelor's degree if: 
186.4      (1) in the judgment of the school board, the person has the 
186.5   knowledge and experience necessary to coach the sport; 
186.6      (2) the position has been posted as a vacancy within the 
186.7   present teaching staff for a period of 30 days and no licensed 
186.8   coaches have applied for the position; 
186.9      (3) the person can verify completion of six quarter 
186.10  credits, or the equivalent, or 60 clock hours of instruction in 
186.11  first aid and the care and prevention of athletic injuries; and 
186.12     (4) the person (3) can verify completion of a coaching 
186.13  methods or theory course. 
186.14     Notwithstanding section 125.121, a person employed as a 
186.15  head varsity coach under this section has an annual contract as 
186.16  a coach that the school board may or may not renew as the board 
186.17  sees fit, after annually posting the position as required in 
186.18  clause (2) and no licensed coach has applied for the position. 
186.19     Sec. 77.  Minnesota Statutes 1996, section 128A.02, 
186.20  subdivision 1, is amended to read: 
186.21     Subdivision 1.  [TO GOVERN GOVERNANCE.] The state board of 
186.22  education the Faribault academy shall govern the state academy 
186.23  for the deaf and the state academy for the blind.  The board 
186.24  must promote academic standards based on high expectation and an 
186.25  assessment system to measure academic performance toward the 
186.26  achievement of those standards.  The board must focus on the 
186.27  academies' needs as a whole and not prefer one school over the 
186.28  other.  The board of the Faribault academies shall consist of 
186.29  seven persons.  The members of the board shall be appointed by 
186.30  the governor with the advice and consent of the senate.  Three 
186.31  members must be from the seven-county metropolitan area, three 
186.32  members must be from greater Minnesota, and one member may be 
186.33  appointed at-large.  The board must be composed of: 
186.34     (1) one superintendent of an independent school district; 
186.35     (2) one special education director; 
186.36     (3) the commissioner of children, families, and learning or 
187.1   the commissioner's designee; 
187.2      (4) one member of the blind community; 
187.3      (5) one member of the deaf community; and 
187.4      (6) two members of the general public with business or 
187.5   financial expertise. 
187.6      Sec. 78.  Minnesota Statutes 1996, section 128A.02, is 
187.7   amended by adding a subdivision to read: 
187.8      Subd. 1b.  [TERMS; COMPENSATION; AND OTHER.] The membership 
187.9   terms, compensation, removal of members, and filling of 
187.10  vacancies shall be as provided for in section 15.0575.  A member 
187.11  may serve not more than two consecutive terms. 
187.12     Sec. 79.  Minnesota Statutes 1996, section 128A.02, is 
187.13  amended by adding a subdivision to read: 
187.14     Subd. 2b.  [MEETINGS.] All meetings of the board shall be 
187.15  as provided in section 471.705 and must be held in Faribault. 
187.16     Sec. 80.  Minnesota Statutes 1996, section 128A.02, 
187.17  subdivision 3, is amended to read: 
187.18     Subd. 3.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state 
187.19  board must do what is necessary to provide the most beneficial 
187.20  and least restrictive program of education for each pupil at the 
187.21  academies who is handicapped by visual disability or deafness.  
187.22     Sec. 81.  Minnesota Statutes 1996, section 128A.02, 
187.23  subdivision 3b, is amended to read: 
187.24     Subd. 3b.  [PLANNING, EVALUATION, AND REPORTING.] To the 
187.25  extent required in school districts, the state board must 
187.26  establish a process for the academies to include parent and 
187.27  community input in the planning, evaluation, and reporting of 
187.28  curriculum and pupil achievement. 
187.29     Sec. 82.  Minnesota Statutes 1996, section 128A.02, 
187.30  subdivision 5, is amended to read: 
187.31     Subd. 5.  [SITE COUNCILS.] The state board may establish, 
187.32  and appoint members to, a site council at each academy.  The 
187.33  site councils shall exercise power and authority granted by 
187.34  the state board.  The state board must appoint to each site 
187.35  council the exclusive representative's employee designee from 
187.36  each exclusive representative at the academies. 
188.1      Sec. 83.  Minnesota Statutes 1996, section 128A.02, 
188.2   subdivision 6, is amended to read: 
188.3      Subd. 6.  [TRUSTEE OF ACADEMIES' PROPERTY.] The state board 
188.4   is the trustee of the academies' property.  Securities and 
188.5   money, including income from the property, must be deposited in 
188.6   the state treasury according to section 16A.275.  The deposits 
188.7   are subject to the order of the state board.  
188.8      Sec. 84.  Minnesota Statutes 1997 Supplement, section 
188.9   128A.02, subdivision 7, is amended to read: 
188.10     Subd. 7.  [GRANTS.] The state board, through the chief 
188.11  administrators of the academies, may apply for all competitive 
188.12  grants administered by agencies of the state and other 
188.13  government or nongovernment sources.  Application may not be 
188.14  made for grants over which the board has discretion. 
188.15     Sec. 85.  Minnesota Statutes 1996, section 128A.022, is 
188.16  amended to read: 
188.17     128A.022 [POWERS OF STATE BOARD OF EDUCATION THE FARIBAULT 
188.18  ACADEMIES.] 
188.19     Subdivision 1.  [PERSONNEL.] The state board of education 
188.20  of the Faribault academies may employ central administrative 
188.21  staff members and other personnel necessary to provide and 
188.22  support programs and services at each academy.  
188.23     Subd. 2.  [GET HELP FROM DEPARTMENT.] The state board of 
188.24  the Faribault academies may require the department of children, 
188.25  families, and learning to provide program leadership, program 
188.26  monitoring, and technical assistance at the academies.  
188.27     Subd. 3.  [UNCLASSIFIED POSITIONS.] The state board of the 
188.28  Faribault academies may place any position other than 
188.29  residential academies administrator in the unclassified 
188.30  service.  The position must meet the criteria in section 43A.08, 
188.31  subdivision 1a.  
188.32     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
188.33  The state board of the Faribault academies may enter into 
188.34  agreements with public or private agencies or institutions to 
188.35  provide residential and building maintenance services.  
188.36  The state board of the Faribault academies must first decide 
189.1   that contracting for the services is more efficient and less 
189.2   expensive than not contracting for them.  
189.3      Subd. 6.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
189.4   The state board of the Faribault academies may enter into 
189.5   agreements with teacher preparation institutions for student 
189.6   teachers to get practical experience at the academies.  A 
189.7   licensed teacher must provide appropriate supervision of each 
189.8   student teacher.  
189.9      (b) The state board of the Faribault academies may enter 
189.10  into agreements with accredited higher education institutions 
189.11  for certain student trainees to get practical experience at the 
189.12  academies.  The students must be preparing themselves in a 
189.13  professional field that provides special services to children 
189.14  with a disability in school programs.  To be a student trainee 
189.15  in a field, a person must have completed at least two years of 
189.16  an approved program in the field.  A person who is licensed or 
189.17  registered in the field must provide appropriate supervision of 
189.18  each student trainee.  
189.19     Sec. 86.  Minnesota Statutes 1996, section 128A.023, 
189.20  subdivision 1, is amended to read: 
189.21     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
189.22  LEARNING.] The department of children, families, and learning 
189.23  must assist the state board of education the Faribault academies 
189.24  in preparing reports on the academies.  
189.25     Sec. 87.  Minnesota Statutes 1996, section 128A.023, 
189.26  subdivision 2, is amended to read: 
189.27     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
189.28  department of employee relations, in cooperation with the state 
189.29  board of education the Faribault academies, must develop a 
189.30  statement of necessary qualifications and skills for all staff 
189.31  members of the academies. 
189.32     Sec. 88.  Minnesota Statutes 1996, section 128A.026, 
189.33  subdivision 1, is amended to read: 
189.34     Subdivision 1.  [SUBJECTS.] The state board of education 
189.35  the Faribault academies must establish procedures for:  
189.36     (1) admission, including short-term admission, to the 
190.1   academies; 
190.2      (2) discharge from the academies; 
190.3      (3) decisions on a pupil's program at the academies; and 
190.4      (4) evaluation of a pupil's progress at the academies.  
190.5      Sec. 89.  Minnesota Statutes 1996, section 128A.026, 
190.6   subdivision 3, is amended to read: 
190.7      Subd. 3.  [NOT CONTESTED CASE.] A proceeding about 
190.8   admission to or discharge from the academies or about a pupil's 
190.9   program or progress at the academies is not a contested case 
190.10  under section 14.02.  The proceeding is governed instead by the 
190.11  rules of the state board governing special education.  
190.12     Sec. 90.  Minnesota Statutes 1996, section 128A.07, 
190.13  subdivision 2, is amended to read: 
190.14     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
190.15  liable for support of a pupil cannot support the pupil, the 
190.16  local social services agency of the county of the pupil's 
190.17  residence must do so.  The commissioner of children, families, 
190.18  and learning must decide how much the local social services 
190.19  agency must pay.  The state board of education the Faribault 
190.20  academies must adopt rules that tell how the commissioner is to 
190.21  fix the amount.  The local social services agency must make the 
190.22  payment to the superintendent of the school district of 
190.23  residence.  
190.24     Sec. 91.  Minnesota Statutes 1997 Supplement, section 
190.25  169.01, subdivision 6, is amended to read: 
190.26     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
190.27  used to transport pupils to or from a school defined in section 
190.28  120.101, or to or from school-related activities, by the school 
190.29  or a school district, or by someone under an agreement with the 
190.30  school or a school district.  A school bus does not include a 
190.31  motor vehicle transporting children to or from school for which 
190.32  parents or guardians receive direct compensation from a school 
190.33  district, a motor coach operating under charter carrier 
190.34  authority, a transit bus providing services as defined in 
190.35  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
190.36  as a type III vehicle under paragraph (5), when the vehicle is 
191.1   properly registered and insured and being driven by an employee 
191.2   or agent of a school district for nonscheduled transportation.  
191.3   A school bus may be type A, type B, type C, or type D, or type 
191.4   III as follows:  
191.5      (1) A "type A school bus" is a conversion or body 
191.6   constructed upon a van-type or cutaway front section vehicle 
191.7   with a left-side driver's door, designed for carrying more than 
191.8   ten persons.  This definition includes two classifications:  
191.9   type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
191.10  pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
191.11     (2) A "type B school bus" is a conversion or body 
191.12  constructed and installed upon a van or front-section vehicle 
191.13  chassis, or stripped chassis, with a gross vehicle weight rating 
191.14  of more than 10,000 pounds, designed for carrying more than ten 
191.15  persons.  Part of the engine is beneath or behind the windshield 
191.16  and beside the driver's seat.  The entrance door is behind the 
191.17  front wheels. 
191.18     (3) A "type C school bus" is a body installed upon a flat 
191.19  back cowl chassis with a gross vehicle weight rating of more 
191.20  than 10,000 pounds, designed for carrying more than ten 
191.21  persons.  All of the engine is in front of the windshield and 
191.22  the entrance door is behind the front wheels. 
191.23     (4) A "type D school bus" is a body installed upon a 
191.24  chassis, with the engine mounted in the front, midship or rear, 
191.25  with a gross vehicle weight rating of more than 10,000 pounds, 
191.26  designed for carrying more than ten persons.  The engine may be 
191.27  behind the windshield and beside the driver's seat; it may be at 
191.28  the rear of the bus, behind the rear wheels, or midship between 
191.29  the front and rear axles.  The entrance door is ahead of the 
191.30  front wheels. 
191.31     (5) Except for vehicles equipped with lifts, type III 
191.32  school buses and type III Head Start buses are restricted to 
191.33  passenger cars, station wagons, vans, and buses having a maximum 
191.34  an original maximum manufacturer's rated seating capacity of ten 
191.35  or fewer people, including the driver, and a gross vehicle 
191.36  weight rating of 10,000 pounds or less.  In this subdivision, 
192.1   "gross vehicle weight rating" means the value specified by the 
192.2   manufacturer as the loaded weight of a single vehicle.  A "type 
192.3   III school bus" and "type III Head Start bus" must not be 
192.4   outwardly equipped and identified as a type A, B, C, or D school 
192.5   bus or type A, B, C, or D Head Start bus. 
192.6      Sec. 92.  Minnesota Statutes 1996, section 169.448, 
192.7   subdivision 2, is amended to read: 
192.8      Subd. 2.  [SCHOOL MOTOR COACHES.] (a) A school district may 
192.9   not acquire a motor coach for transportation purposes.  
192.10     (b) A motor coach acquired by a school district before 
192.11  March 26, 1986, may be used by it only to transport students 
192.12  participating in school activities, their instructors, and 
192.13  supporting personnel to and from school activities.  A motor 
192.14  coach may not be outwardly equipped and identified as a school 
192.15  bus.  A motor coach operated under this subdivision is not a 
192.16  school bus for purposes of section 124.225.  The state board of 
192.17  education commissioner of children, families, and learning shall 
192.18  implement rules governing the equipment, identification, 
192.19  operation, inspection, and certification of motor coaches 
192.20  operated under this subdivision.  
192.21     (c) After January 1, 1998, a school district may not own or 
192.22  operate a motor coach for any purpose.  
192.23     Sec. 93.  Minnesota Statutes 1996, section 169.451, 
192.24  subdivision 5, is amended to read: 
192.25     Subd. 5.  [RANDOM SPOT INSPECTIONS.] In addition to the 
192.26  annual inspection, the Minnesota state patrol has authority to 
192.27  conduct random, unannounced spot inspections of any school bus 
192.28  or Head Start bus being operated within the state at the 
192.29  location where the bus is kept when not in operation to 
192.30  ascertain whether its construction, design, equipment, and color 
192.31  comply it is in compliance with all provisions of law, including 
192.32  the Minnesota school bus equipment standards in sections 
192.33  169.4501 to 169.4504, subject to the procedures approved by the 
192.34  commissioner. 
192.35     Sec. 94.  Minnesota Statutes 1997 Supplement, section 
192.36  169.974, subdivision 2, is amended to read: 
193.1      Subd. 2.  [LICENSE REQUIREMENTS.] No person shall operate a 
193.2   motorcycle on any street or highway without having a valid 
193.3   standard driver's license with a two-wheeled vehicle endorsement 
193.4   as provided by law.  No such two-wheeled vehicle endorsement 
193.5   shall be issued unless the person applying therefor has in 
193.6   possession a valid two-wheeled vehicle instruction permit as 
193.7   provided herein, has passed a written examination and road test 
193.8   administered by the department of public safety for such 
193.9   endorsement, and, in the case of applicants under 18 years of 
193.10  age, shall present a certificate or other evidence of having 
193.11  successfully completed an approved two-wheeled vehicle driver's 
193.12  safety course in this or another state, in accordance with rules 
193.13  promulgated by the state board of education commissioner of 
193.14  children, families, and learning for courses offered through the 
193.15  public schools, or rules promulgated by the commissioner of 
193.16  public safety for courses offered by a private or commercial 
193.17  school or institute.  The commissioner of public safety may 
193.18  waive the road test for any applicant on determining that the 
193.19  applicant possesses a valid license to operate a two-wheeled 
193.20  vehicle issued by a jurisdiction that requires a comparable road 
193.21  test for license issuance.  A two-wheeled vehicle instruction 
193.22  permit shall be issued to any person over 16 years of age, who 
193.23  is in possession of a valid driver's license, who is enrolled in 
193.24  an approved two-wheeled vehicle driver's safety course, and who 
193.25  has passed a written examination for such permit and has paid 
193.26  such fee as the commissioner of public safety shall prescribe.  
193.27  A two-wheeled vehicle instruction permit shall be effective for 
193.28  one year, and may be renewed under rules to be prescribed by the 
193.29  commissioner of public safety. 
193.30     No person who is operating by virtue of a two-wheeled 
193.31  vehicle instruction permit shall: 
193.32     (a) carry any passengers on the streets and highways of 
193.33  this state on the motorcycle which the person is operating; 
193.34     (b) drive the motorcycle at nighttime; 
193.35     (c) drive the motorcycle on any highway marked by the 
193.36  commissioner as an interstate highway pursuant to title 23 of 
194.1   the United States Code; or 
194.2      (d) drive the motorcycle without wearing protective 
194.3   headgear that complies with standards established by the 
194.4   commissioner of public safety. 
194.5      Notwithstanding the provisions of this subdivision, the 
194.6   commissioner of public safety may, however, issue a special 
194.7   motorcycle permit, restricted or qualified in such manner as the 
194.8   commissioner of public safety shall deem proper, to any person 
194.9   demonstrating a need therefor and unable to qualify for a 
194.10  standard driver's license. 
194.11     Sec. 95.  Minnesota Statutes 1997 Supplement, section 
194.12  290.0674, subdivision 1, is amended to read: 
194.13     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
194.14  a credit against the tax imposed by this chapter in an amount 
194.15  equal to the amount paid for education-related expenses for a 
194.16  dependent in kindergarten through grade 12.  For purposes of 
194.17  this section, "education-related expenses" means: 
194.18     (1) fees or tuition for instruction by an instructor under 
194.19  section 120.101, subdivision 7, clause (1), (2), (3), (4), or 
194.20  (5), for instruction outside the regular school day or school 
194.21  year, including tutoring, driver's education taken as part of 
194.22  school curriculum, or summer camps, in grade or age appropriate 
194.23  curricula that supplement curricula and instruction available 
194.24  during the regular school year, that assists a dependent to 
194.25  improve knowledge of core curriculum areas or to expand 
194.26  knowledge and skills under the graduation rule under section 
194.27  121.11, subdivision 7c, and that do not include the teaching of 
194.28  religious tenets, doctrines, or worship, the purpose of which is 
194.29  to instill such tenets, doctrines, or worship; 
194.30     (2) fees or tuition for instruction for driver's education 
194.31  from a private entity if the school the student attends offers 
194.32  driver's education as part of a school curriculum and charges a 
194.33  fee for the program; 
194.34     (3) expenses for textbooks, including books and other 
194.35  instructional materials and equipment used in elementary and 
194.36  secondary schools in teaching only those subjects legally and 
195.1   commonly taught in public elementary and secondary schools in 
195.2   this state.  "Textbooks" does not include instructional books 
195.3   and materials used in the teaching of religious tenets, 
195.4   doctrines, or worship, the purpose of which is to instill such 
195.5   tenets, doctrines, or worship, nor does it include books or 
195.6   materials for extracurricular activities including sporting 
195.7   events, musical or dramatic events, speech activities, driver's 
195.8   education, or similar programs; 
195.9      (3) (4) a maximum expense of $200 per family for personal 
195.10  computer hardware, excluding single purpose processors, and 
195.11  educational software that assists a dependent to improve 
195.12  knowledge of core curriculum areas or to expand knowledge and 
195.13  skills under the graduation rule under section 121.11, 
195.14  subdivision 7c, purchased for use in the taxpayer's home and not 
195.15  used in a trade or business regardless of whether the computer 
195.16  is required by the dependent's school; and 
195.17     (4) (5) the amount paid to others for transportation of a 
195.18  dependent attending an elementary or secondary school situated 
195.19  in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 
195.20  wherein a resident of this state may legally fulfill the state's 
195.21  compulsory attendance laws, which is not operated for profit, 
195.22  and which adheres to the provisions of the Civil Rights Act of 
195.23  1964 and chapter 363. 
195.24     Sec. 96.  Minnesota Statutes 1996, section 471.18, is 
195.25  amended to read: 
195.26     471.18 [STATE BOARD OF EDUCATION COMMISSIONER OF CHILDREN, 
195.27  FAMILIES, AND LEARNING TO ESTABLISH QUALIFICATIONS.] 
195.28     In all cases where school funds or property are utilized, 
195.29  the state board of education commissioner of children, families, 
195.30  and learning shall: 
195.31     (1) Establish minimum qualifications of local recreational 
195.32  directors and instructors; 
195.33     (2) Prepare or cause to be prepared, published, and 
195.34  distributed adequate and appropriate manuals and other materials 
195.35  as it may deem necessary or suitable to carry out the provisions 
195.36  of sections 471.15 to 471.19.  
196.1      Sec. 97.  Laws 1997, First Special Session chapter 4, 
196.2   article 8, section 4, subdivision 3, is amended to read: 
196.3      Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
196.4   subdivision 2 shall provide for a library board of five seven 
196.5   members as follows:  two members appointed by the school board 
196.6   of independent school district No. 319, one member appointed by 
196.7   each town board located within independent school district No. 
196.8   319 boundaries, one member appointed by the council of the city 
196.9   of Nashwauk, and one member appointed by the Itasca county board 
196.10  to represent the unorganized towns within the school district 
196.11  territory. 
196.12     Sec. 98.  [ACCELERATED TRANSITION PLAN.] 
196.13     Notwithstanding Minnesota Statutes, section 122.23, 
196.14  subdivision 2b, or other law to the contrary, independent school 
196.15  district No. 2884, Red Rock Central, is authorized to terminate 
196.16  all existing school board members' terms by the first Monday in 
196.17  January 1999, and to hold elections for seven school board 
196.18  members at the 1998 school district general election under 
196.19  Minnesota Statutes, section 205A.04.  Of the seven board members 
196.20  elected, three members shall be elected to serve four-year terms 
196.21  and four members shall be elected to serve two-year terms.  Only 
196.22  one board member from each election district shall be elected to 
196.23  serve a four-year term.  Candidates must specify in their 
196.24  affidavit the election district and the term of office to which 
196.25  they are seeking election.  The school board members elected at 
196.26  the 1998 school district general election shall assume office on 
196.27  the first Monday in January 1999.  The school board of 
196.28  independent school district No. 2884, Red Rock Central, then 
196.29  shall consist of seven members until such time as the electors 
196.30  in the school district vote on a proposition favoring a 
196.31  six-member board under Minnesota Statutes, section 123.33, 
196.32  subdivision 1. 
196.33     Sec. 99.  [BUFFALO SCHOOL YEAR.] 
196.34     Notwithstanding Minnesota Statutes, section 126.12, 
196.35  subdivision 1, and Laws 1997, First Special Session chapter 4, 
196.36  article 7, section 49, subdivision 1, for the 1998-1999 and 
197.1   1999-2000 school years only, independent school district No. 
197.2   877, Buffalo, may begin the school year any day prior to Labor 
197.3   Day. 
197.4      Sec. 100.  [FUND TRANSFERS.] 
197.5      Subdivision 1.  [ADA-BORUP.] Notwithstanding Minnesota 
197.6   Statutes, section 124.83, subdivision 6, independent school 
197.7   district No. 2854, Ada-Borup, may use up to $90,000 of its 
197.8   health and safety revenue for capital improvements, equipment, 
197.9   or furnishings for new facilities. 
197.10     Subd. 2.  [LYND.] Notwithstanding Minnesota Statutes, 
197.11  sections 121.912 and 121.9121, on June 30, 1998, independent 
197.12  school district No. 415, Lynd, may permanently transfer $100,000 
197.13  from reserve accounts in the general fund to the unreserved 
197.14  general fund.  The transfer may be made from the reemployment 
197.15  account and the bus purchase account.  Transfers from the 
197.16  reemployment and bus purchase accounts may be made without 
197.17  making a levy reduction. 
197.18     Subd. 3.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
197.19  section 121.912 or 121.9121, on June 30, 1998, independent 
197.20  school district No. 418, Russell, may permanently transfer up to 
197.21  $150,000 from its capital expenditure fund to the district's 
197.22  general fund.  The transfer must not include health and safety 
197.23  or handicapped access revenue. 
197.24     Subd. 4.  [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 
197.25  section 121.912 or 121.9121, on June 30, 1998, independent 
197.26  school district No. 2609, Win-E-Mac, may permanently transfer 
197.27  the balance of its health and safety account to its general fund.
197.28     Sec. 101.  [REPEALER.] 
197.29     (a) Minnesota Statutes 1996, sections 121.02, subdivisions 
197.30  2a, 3, and 4; and 121.11, subdivisions 5, 7, 7b, 9, 11, 12, and 
197.31  14; and Minnesota Statutes 1997 Supplement, section 121.11, 
197.32  subdivision 7e, are repealed effective July 1, 1999. 
197.33     (b) Minnesota Statutes 1996, section 121.11, subdivision 
197.34  7d, is repealed effective January 10, 1999. 
197.35     (c) Minnesota Statutes 1996, section 124.647; Minnesota 
197.36  Statutes 1997 Supplement, sections 120.1015; and 169.452; are 
198.1   repealed. 
198.2      (d) Minnesota Statutes 1996, section 126.12, is repealed 
198.3   effective for the 2000-2001 school year and thereafter. 
198.4      Sec. 102.  [REVISOR INSTRUCTION.] 
198.5      In the next and subsequent editions of Minnesota Statutes 
198.6   and Minnesota Rules, the revisor shall change the term "state 
198.7   board of education" or similar terms to the term "commissioner 
198.8   of children, families, and learning" or similar terms wherever 
198.9   they appear. 
198.10     Sec. 103.  [EFFECTIVE DATE.] 
198.11     Sections 1 to 26, 29, 31 to 53, 69 to 75, 77 to 90, 92, 94, 
198.12  96, and 102 are effective July 1, 1999. 
198.13     Sections 27, 28, 30, 55, 98, and 99 are effective the day 
198.14  following final enactment. 
198.15     Section 100 is effective June 30, 1998. 
198.16     Section 58 is effective July 1, 1998. 
198.17                             ARTICLE 7 
198.18                           STATE AGENCIES   
198.19     Section 1.  Laws 1997, First Special Session chapter 4, 
198.20  article 10, section 3, subdivision 2, is amended to read: 
198.21     Subd. 2.  [DEPARTMENT.] For the department of children, 
198.22  families, and learning: 
198.23       $24,360,000 $24,910,000   .....      1998
198.24       $23,978,000 $24,528,000   .....      1999
198.25     (a) Any balance in the first year does not cancel but is 
198.26  available in the second year. 
198.27     (b) $21,000 each year is from the trunk highway fund. 
198.28     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
198.29  academic excellence foundation. 
198.30     Up to $50,000 each year is contingent upon the match of $1 
198.31  in the previous year from private sources consisting of either 
198.32  direct monetary contributions or in-kind contributions of 
198.33  related goods or services, for each $1 of the appropriation.  
198.34  The commissioner of children, families, and learning must 
198.35  certify receipt of the money or documentation for the private 
198.36  matching funds or in-kind contributions.  The unencumbered 
199.1   balance from the amount actually appropriated from the 
199.2   contingent amount in 1998 does not cancel but is available in 
199.3   1999.  The amount carried forward must not be used to establish 
199.4   a larger annual base appropriation for later fiscal years. 
199.5      (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
199.6   board of education. 
199.7      (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
199.8   of teaching. 
199.9      (f) The expenditures of federal grants and aids as shown in 
199.10  the biennial budget document and its supplements are approved 
199.11  and appropriated and shall be spent as indicated. 
199.12     (g) The department of children, families, and learning 
199.13  shall develop a performance report on the quality of its 
199.14  programs and services.  The report must be consistent with the 
199.15  process specified in Minnesota Statutes, sections 15.90 to 
199.16  15.92.  The goals, objectives, and measures of this report must 
199.17  be developed in cooperation with the chairs of the finance 
199.18  divisions of the education committees of the house of 
199.19  representatives and senate, the department of finance, and the 
199.20  office of legislative auditor.  The report must include data to 
199.21  indicate the progress of the department in meeting its goals and 
199.22  objectives. 
199.23     (h) At least $50,000 is to ensure compliance with state and 
199.24  federal laws prohibiting discrimination because of race, 
199.25  religion, or sex.  The department shall use the appropriation to 
199.26  provide state-level leadership on equal education opportunities 
199.27  which promote elimination of discriminatory practices in the 
199.28  areas of race, religion, and sex in public schools and public 
199.29  educational agencies under its general supervision and on 
199.30  activities including, at least, compliance monitoring and 
199.31  voluntary compliance when local school district deficiencies are 
199.32  found. 
199.33     (i) Notwithstanding Minnesota Statutes, section 15.53, 
199.34  subdivision 2, the commissioner of children, families, and 
199.35  learning may contract with a school district for a period no 
199.36  longer than five consecutive years to work in the development or 
200.1   implementation of the graduation rule.  The commissioner may 
200.2   contract for services and expertise as necessary.  The contracts 
200.3   are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
200.4      (j) In preparing the department budget for fiscal years 
200.5   2000-2001, the department shall shift all administrative funding 
200.6   from aids appropriations into the appropriation for the 
200.7   department. 
200.8      (k) Reallocations of excesses under Minnesota Statutes, 
200.9   section 124.14, subdivision 7, from appropriations within this 
200.10  act shall only be made to deficiencies in programs with 
200.11  appropriations contained within this act. 
200.12     (l) $850,000 $1,400,000 each year is for costs associated 
200.13  with education adequacy litigation costs and may only be used 
200.14  for those purposes.  These appropriations are one-time 
200.15  only.  Amounts appropriated for one year of the biennium may be 
200.16  used for the other.  The commissioner shall contract with an 
200.17  independent facilitator to attempt mediation of the lawsuits. 
200.18     (m) Collaborative efforts between the department of 
200.19  children, families, and learning and the office of technology, 
200.20  as specified in Minnesota Statutes, section 237A.015, include: 
200.21     (1) advising the commissioner of children, families, and 
200.22  learning on new and emerging technologies, potential business 
200.23  partnerships, and technical standards; 
200.24     (2) assisting the commissioner of children, families, and 
200.25  learning in the sharing of data between state agencies relative 
200.26  to children's programs; and 
200.27     (3) as requested by the commissioner of children, families, 
200.28  and learning, assisting in collaborative efforts for joint 
200.29  prekindergarten through grade 12 and higher education projects, 
200.30  including the learning network. 
200.31  The commissioner of children, families, and learning shall have 
200.32  final approval for prekindergarten through grade 12 programs and 
200.33  lifelong learning programs, grant awards, and funding decisions. 
200.34     Sec. 2.  Laws 1997, First Special Session chapter 4, 
200.35  article 10, section 4, is amended to read: 
200.36     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
201.1   CENTER FOR ARTS EDUCATION.] 
201.2      The sums indicated in this section are appropriated from 
201.3   the general fund to the center for arts education for the fiscal 
201.4   years designated: 
201.5       $5,541,000 $5,559,000    .....     1998
201.6       $6,054,000 $6,090,000    .....     1999
201.7      Of the fiscal year 1998 appropriation, $154,000 is to fund 
201.8   artist and arts organization participation in the education 
201.9   residency and education technology projects, $75,000 is for 
201.10  school support for the residency project, and $121,000 is for 
201.11  further development of the partners:  arts and school for 
201.12  students (PASS) program, including pilots.  Of the fiscal year 
201.13  1999 appropriation, $154,000 is to fund artist and arts 
201.14  organizations participation in the education residency project, 
201.15  $75,000 is for school support for the residency project, and 
201.16  $121,000 is to fund the PASS program, including additional 
201.17  pilots.  The guidelines for the education residency project and 
201.18  the pass program shall be developed and defined by the center 
201.19  for arts education in cooperation with the Minnesota arts 
201.20  board.  The Minnesota arts board shall participate in the review 
201.21  and allocation process.  The center for arts education and the 
201.22  Minnesota arts board shall cooperate to fund these projects. 
201.23     Any balance in the first year does not cancel but is 
201.24  available in the second year. 
201.25     Sec. 3.  Laws 1997, First Special Session chapter 4, 
201.26  article 10, section 5, is amended to read: 
201.27     Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
201.28     The sums indicated in this section are appropriated from 
201.29  the general fund to the department of children, families, and 
201.30  learning for the Faribault academies for the fiscal years 
201.31  designated:  
201.32       $8,910,000 $8,949,000    .....     1998
201.33       $8,908,000 $8,986,000    .....     1999 
201.34     Any balance in the first year does not cancel but is 
201.35  available in the second year. 
201.36     In the next biennial budget, the academies must assess 
202.1   their progress in meeting the established performance measures 
202.2   for the Faribault academies and inform the legislature on the 
202.3   content of that assessment.  The information must include an 
202.4   assessment of its progress by consumers and employees.