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; 124.2613, as amended; 124.2713, subdivision 6a; 
  1.31            124.2727, subdivisions 6a and 6c; 124.273, by adding a 
  1.32            subdivision; 124.32, by adding a subdivision; 
  1.33            124.3201, subdivision 5; 124.646, subdivision 4; 
  1.34            124.755, subdivision 1; 124.83, subdivision 8; 124.84, 
  1.35            subdivisions 3 and 4; 124.85, subdivision 4; 124.91, 
  1.36            subdivisions 2, 4, and 6; 124.95, as amended; 124A.03, 
  1.37            subdivision 3c; 124A.034, subdivision 2; 124A.036, 
  1.38            subdivisions 1a, 4, 6, and by adding a subdivision; 
  1.39            124A.22, by adding a subdivision; 124A.29, subdivision 
  1.40            1; 124A.292, subdivision 3; 124A.30; 124C.45, 
  1.41            subdivision 2; 124C.47; 124C.48, by adding a 
  1.42            subdivision; 125.05, subdivisions 4 and 8; 125.183, 
  1.43            subdivisions 1 and 3; 125.1885, subdivisions 1, 4, and 
  1.44            5; 125.191; 126.237; 126.70, subdivision 2a; 127.27, 
  1.45            subdivision 2; 128A.02, subdivisions 1, 3, 3b, 5, 6, 
  1.46            and by adding subdivisions; 128A.022; 128A.023, 
  2.1             subdivisions 1 and 2; 128A.026, subdivisions 1 and 3; 
  2.2             128A.07, subdivision 2; 169.448, subdivision 2; 
  2.3             169.451, subdivision 5; 256B.0625, subdivision 26; 
  2.4             260.131, subdivision 1b; 260.132, subdivision 1; 
  2.5             260A.05, subdivision 2; 260A.06; 268.665, subdivision 
  2.6             3; and 471.18; Minnesota Statutes 1997 Supplement, 
  2.7             sections 16B.465, subdivision 4; 120.05, subdivision 
  2.8             2; 120.064, subdivisions 3, 8, 10, and 14a; 120.1045, 
  2.9             subdivision 1; 120.1701, subdivision 3; 121.1113, 
  2.10            subdivision 1; 121.15, subdivision 6; 121.615, 
  2.11            subdivisions 2, 6, 7, and 10; 121.904, subdivision 4a; 
  2.12            124.17, subdivisions 1d, 4, 6, and 7; 124.195, 
  2.13            subdivision 7; 124.248, subdivisions 2a and 6; 124.26, 
  2.14            subdivision 2; 124.2601, subdivisions 3 and 6; 
  2.15            124.2711, subdivision 2a; 124.2713, subdivision 6; 
  2.16            124.3111, subdivision 2; 124.3201, subdivision 4; 
  2.17            124.6475; 124.648, subdivision 3; 124.91, subdivisions 
  2.18            1, 5, and 7, as amended; 124.961; 124A.036, 
  2.19            subdivision 5; 124A.22, subdivisions 2, 11, and 13b; 
  2.20            124A.23, subdivision 1; 124A.28, subdivisions 1 and 
  2.21            1a; 124C.46, subdivisions 1, 2; 125.05, subdivisions 
  2.22            1c and 2; 126.79, subdivisions 6, 7, 8, and 9; 127.27, 
  2.23            subdivisions 10 and 11; 127.31, subdivision 15; 
  2.24            127.32; 127.36, subdivision 1; 127.38; 128A.02, 
  2.25            subdivision 7; 169.01, subdivision 6; 169.974, 
  2.26            subdivision 2; 268.665, subdivision 2; and 290.0674, 
  2.27            subdivision 1; Laws 1992, chapter 499, article 7, 
  2.28            section 31; Laws 1993, chapter 224, article 3, section 
  2.29            32; Laws 1997, chapter 157, section 71; Laws 1997, 
  2.30            First Special Session chapter 4, article 1, section 
  2.31            61, subdivision 3; article 2, section 51, subdivisions 
  2.32            15, 25, 29, and 33; article 3, section 25, subdivision 
  2.33            4; article 4, sections 33, 34, and 35, subdivision 9; 
  2.34            article 5, section 28, subdivisions 9, 10, 11, and 12; 
  2.35            article 6, section 20, subdivision 4; article 8, 
  2.36            section 4, subdivision 3; article 9, section 11; 
  2.37            article 10, sections 3, subdivision 2; 4, and 5; 
  2.38            proposing coding for new law in Minnesota Statutes, 
  2.39            chapters 120; 123; and 124A; repealing Minnesota 
  2.40            Statutes 1996, sections 121.02, subdivisions 2a, 3, 
  2.41            and 4; 121.11, subdivisions 5, 7, 7b, 7d, 9, 11, 12, 
  2.42            and 14; 121.904, subdivision 4c; 124.2601, subdivision 
  2.43            4; 124.2713, subdivision 6b; 124.2727, subdivision 6b; 
  2.44            124.32, subdivision 13; 124.491; 124.492; 124.493; 
  2.45            124.494; 124.4945; 124.4946; 124.495; 124.647; 124.82; 
  2.46            124.83, subdivisions 4, 5, and 7; 124A.292, 
  2.47            subdivisions 2 and 4; 124C.55; 124C.56; 124C.57; 
  2.48            124C.60, subdivision 2; 124C.71; 124C.72; 124C.73; and 
  2.49            126.12; Minnesota Statutes 1997 Supplement, sections 
  2.50            120.1015; 121.11, subdivision 7e; 124.155, 
  2.51            subdivisions 1 and 2; 124.2601, subdivision 5; 
  2.52            124.825, subdivisions 3 and 4; 124.912, subdivisions 2 
  2.53            and 3; 124C.60, subdivisions 1 and 3; and 169.452; 
  2.54            Laws 1997, chapter 231, article 1, section 17; 
  2.55            Minnesota Rules, part 3525.2750, subpart 1, item B. 
  2.56  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.57                             ARTICLE 1
  2.58                         GENERAL EDUCATION
  2.59     Section 1.  Minnesota Statutes 1997 Supplement, section 
  2.60  121.904, subdivision 4a, is amended to read: 
  2.61     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.62  settlement revenue" means the current, delinquent, and 
  2.63  manufactured home property tax receipts collected by the county 
  3.1   and distributed to the school district, including distributions 
  3.2   made pursuant to section 279.37, subdivision 7, and excluding 
  3.3   the amount levied pursuant to section 124.914, subdivision 1. 
  3.4      (b) In June of each year, the school district shall 
  3.5   recognize as revenue, in the fund for which the levy was made, 
  3.6   the lesser of:  
  3.7      (1) the May, June, and July school district tax settlement 
  3.8   revenue received in that calendar year; or 
  3.9      (2) the sum of: the state aids and credits enumerated in 
  3.10  section 124.155, subdivision 2, which are for the fiscal year 
  3.11  payable in that fiscal year plus an amount equal to the levy 
  3.12  recognized as revenue in June of the prior year plus 31 percent 
  3.13  of the amount of the levy certified in the prior calendar year 
  3.14  according to section 124A.03, subdivision 2; or 
  3.15     (3)(i) 7.0 percent of the lesser of the amount of the 
  3.16  general education levy certified in the prior calendar year 
  3.17  according to section 124A.23, subdivision 2, or the difference 
  3.18  between the amount of the total general fund levy certified in 
  3.19  the prior calendar year and the sum of the amounts certified in 
  3.20  the prior calendar year according to sections 124A.03, 
  3.21  subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
  3.22  paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
  3.23  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  3.24     (ii) 31 percent of the referendum levy certified in the 
  3.25  prior calendar year according to section 124A.03, subdivision 2; 
  3.26  plus 
  3.27     (iii) the entire amount of the levy certified in the prior 
  3.28  calendar year according to sections 124.315, subdivision 4; 
  3.29  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
  3.30  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  3.31  124.918, subdivision 6. 
  3.32     (i) for levies authorized before January 1, 1998, 31 
  3.33  percent of the referendum levy certified in the prior calendar 
  3.34  year according to section 124A.03, subdivision 2; plus 
  3.35     (ii) the entire amount of the levy certified in the prior 
  3.36  calendar year according to sections 124.912, subdivisions 1, 
  4.1   paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 
  4.2   subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  4.3   124.918, subdivision 6. 
  4.4      (c) In July of each year, the school district shall 
  4.5   recognize as revenue that portion of the school district tax 
  4.6   settlement revenue received in that calendar year and not 
  4.7   recognized as revenue for the previous fiscal year pursuant to 
  4.8   clause (b).  
  4.9      (d) All other school district tax settlement revenue shall 
  4.10  be recognized as revenue in the fiscal year of the settlement. 
  4.11  Portions of the school district levy assumed by the state, 
  4.12  including prior year adjustments and the amount to fund the 
  4.13  school portion of the reimbursement made pursuant to section 
  4.14  273.425, shall be recognized as revenue in the fiscal year 
  4.15  beginning in the calendar year for which the levy is payable. 
  4.16     Sec. 2.  Minnesota Statutes 1996, section 121.908, 
  4.17  subdivision 2, is amended to read: 
  4.18     Subd. 2.  Each district shall submit to the commissioner by 
  4.19  August September 15 of each year an unaudited financial 
  4.20  statement data for the preceding fiscal year.  This statement 
  4.21  These financial data shall be submitted on forms in the format 
  4.22  prescribed by the commissioner. 
  4.23     Sec. 3.  Minnesota Statutes 1996, section 121.908, 
  4.24  subdivision 3, is amended to read: 
  4.25     Subd. 3.  By December 31 November 30 of the calendar year 
  4.26  of the submission of the unaudited financial statement data, the 
  4.27  district shall provide to the commissioner and state auditor an 
  4.28  audited financial data for the preceding fiscal year.  An 
  4.29  audited financial statement prepared in a form which will allow 
  4.30  comparison with and correction of material differences in the 
  4.31  unaudited statement financial data shall be submitted to the 
  4.32  commissioner and the state auditor by November 30.  The audited 
  4.33  financial statement must also provide a statement of assurance 
  4.34  pertaining to uniform financial accounting and reporting 
  4.35  standards compliance and a copy of the management letter 
  4.36  submitted to the district by the school district's auditor. 
  5.1      Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  5.2   124.17, subdivision 1d, is amended to read: 
  5.3      Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  5.4   revenue pupil units for fiscal year 1998 and thereafter must be 
  5.5   computed according to this subdivision.  
  5.6      (a) The compensation revenue concentration percentage for 
  5.7   each building in a district equals the product of 100 times the 
  5.8   ratio of:  
  5.9      (1) the sum of the number of pupils enrolled in the 
  5.10  building eligible to receive free lunch plus one-half of the 
  5.11  pupils eligible to receive reduced priced lunch on October 1 of 
  5.12  the previous fiscal year; to 
  5.13     (2) the number of pupils enrolled in the building on 
  5.14  October 1 of the previous fiscal year. 
  5.15     (b) The compensation revenue pupil weighting factor for a 
  5.16  building equals the lesser of one or the quotient obtained by 
  5.17  dividing the building's compensation revenue concentration 
  5.18  percentage by 80.0.  
  5.19     (c) The compensation revenue pupil units for a building 
  5.20  equals the product of:  
  5.21     (1) the sum of the number of pupils enrolled in the 
  5.22  building eligible to receive free lunch and one-half of the 
  5.23  pupils eligible to receive reduced priced lunch on October 1 of 
  5.24  the previous fiscal year; times 
  5.25     (2) the compensation revenue pupil weighting factor for the 
  5.26  building; times 
  5.27     (3) .60. 
  5.28     (d) Notwithstanding paragraphs (a) to (c), for charter 
  5.29  schools and contracted alternative programs in the first year of 
  5.30  operation, compensation revenue pupil units shall be computed 
  5.31  using data for the current fiscal year.  If the charter school 
  5.32  or contracted alternative program begins operation after October 
  5.33  1, compensatory revenue pupil units shall be computed based on 
  5.34  pupils enrolled on an alternate date determined by the 
  5.35  commissioner, and the compensation revenue pupil units shall be 
  5.36  prorated based on the ratio of the number of days of student 
  6.1   instruction to 170 days. 
  6.2      (e) The percentages in this subdivision must be based on 
  6.3   the count of individual pupils and not on a building average or 
  6.4   minimum. 
  6.5      (f) For a school district in which the number of pupils 
  6.6   enrolled on October 1 of the current fiscal year exceeds the 
  6.7   number of pupils enrolled on October 1 of the previous fiscal 
  6.8   year by more than ten percent, the compensation revenue pupil 
  6.9   units for each building equals the product of the compensation 
  6.10  revenue pupil units according to paragraph (c) times an amount 
  6.11  equal to the difference between (i) the ratio of the number of 
  6.12  pupils enrolled in the district on October 1 of the current 
  6.13  fiscal year to the number of pupils enrolled in the district on 
  6.14  October 1 of the previous fiscal year and (ii) .10. 
  6.15     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  6.16  124.17, subdivision 4, is amended to read: 
  6.17     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
  6.18  enrolled in a learning year program under section 121.585, an 
  6.19  area learning center under sections 124C.45 and 124C.46, or an 
  6.20  alternative program approved by the commissioner, or a contract 
  6.21  alternative program under section 126.22, subdivision 3, 
  6.22  paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
  6.23  school year for a secondary student, more than 935 hours in a 
  6.24  school year for an elementary student, or more than 425 hours in 
  6.25  a school year for a kindergarten student without a disability, 
  6.26  that pupil may be counted as more than one pupil in average 
  6.27  daily membership.  The amount in excess of one pupil must be 
  6.28  determined by the ratio of the number of hours of instruction 
  6.29  provided to that pupil in excess of:  (i) the greater of 1,020 
  6.30  hours or the number of hours required for a full-time secondary 
  6.31  pupil in the district to 1,020 for a secondary pupil; (ii) the 
  6.32  greater of 935 hours or the number of hours required for a 
  6.33  full-time elementary pupil in the district to 935 for an 
  6.34  elementary pupil in grades 1 through 6; and (iii) the greater of 
  6.35  425 hours or the number of hours required for a full-time 
  6.36  kindergarten student without a disability in the district to 425 
  7.1   for a kindergarten student without a disability.  Hours that 
  7.2   occur after the close of the instructional year in June shall be 
  7.3   attributable to the following fiscal year.  A kindergarten 
  7.4   student must not be counted as more than 1.2 pupils in average 
  7.5   daily membership under this subdivision. 
  7.6      (b)(i) To receive general education revenue for a pupil in 
  7.7   an alternative program that has an independent study component, 
  7.8   a school district must meet the requirements in this paragraph.  
  7.9   The school district must develop with the pupil a continual 
  7.10  learning plan for the pupil.  A district must allow a minor 
  7.11  pupil's parent or guardian to participate in developing the 
  7.12  plan, if the parent or guardian wants to participate.  The plan 
  7.13  must identify the learning experiences and expected outcomes 
  7.14  needed for satisfactory credit for the year and for graduation.  
  7.15  The plan must be updated each year.  Each school district that 
  7.16  has a state-approved public alternative program must reserve 
  7.17  revenue in an amount equal to at least 90 percent of the 
  7.18  district average general education revenue per pupil unit less 
  7.19  compensatory revenue per pupil unit times the number of pupil 
  7.20  units generated by students attending a state-approved public 
  7.21  alternative program.  The amount of reserved revenue available 
  7.22  under this subdivision may only be spent for program costs 
  7.23  associated with the state-approved public alternative program.  
  7.24  Compensatory revenue must be allocated according to section 
  7.25  124A.28, subdivision 1a. 
  7.26     (ii) General education revenue for a pupil in an approved 
  7.27  alternative program without an independent study component must 
  7.28  be prorated for a pupil participating for less than a full year, 
  7.29  or its equivalent.  Each school district that has a 
  7.30  state-approved public alternative program must reserve revenue 
  7.31  in an amount equal to at least 90 percent of the district 
  7.32  average general education revenue per pupil unit less 
  7.33  compensatory revenue per pupil unit times the number of pupil 
  7.34  units generated by students attending a state-approved public 
  7.35  alternative program.  The amount of reserved revenue available 
  7.36  under this subdivision may only be spent for program costs 
  8.1   associated with the state-approved public alternative program.  
  8.2   Compensatory revenue must be allocated according to section 
  8.3   124A.28, subdivision 1a.  
  8.4      (iii) General education revenue for a pupil in an approved 
  8.5   alternative program that has an independent study component must 
  8.6   be paid for each hour of teacher contact time and each hour of 
  8.7   independent study time completed toward a credit or graduation 
  8.8   standards necessary for graduation.  Average daily membership 
  8.9   for a pupil shall equal the number of hours of teacher contact 
  8.10  time and independent study time divided by 1,020. 
  8.11     (iv) For an alternative program having an independent study 
  8.12  component, the commissioner shall require a description of the 
  8.13  courses in the program, the kinds of independent study involved, 
  8.14  the expected learning outcomes of the courses, and the means of 
  8.15  measuring student performance against the expected outcomes.  
  8.16     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  8.17  124.17, subdivision 6, is amended to read: 
  8.18     Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
  8.19  commissioner shall determine the number of children eligible to 
  8.20  receive either a free or reduced priced lunch on October 1 each 
  8.21  year.  Children enrolled in a building on October 1 and 
  8.22  determined to be eligible to receive free or reduced price lunch 
  8.23  by January 15 of the following year shall be counted as eligible 
  8.24  on October 1 for purposes of subdivision 1d.  The commissioner 
  8.25  may use federal definitions for these purposes and may adjust 
  8.26  these definitions as appropriate.  The commissioner may adopt 
  8.27  reporting guidelines to assure accuracy of data counts and 
  8.28  eligibility.  Districts shall use any guidelines adopted by the 
  8.29  commissioner. 
  8.30     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  8.31  124.17, subdivision 7, is amended to read: 
  8.32     Subd. 7.  [LEP PUPIL UNITS.] (a) Limited English 
  8.33  proficiency pupil units for fiscal year 1998 and thereafter 
  8.34  shall be determined according to this subdivision. 
  8.35     (b) The limited English proficiency concentration 
  8.36  percentage for a district equals the product of 100 times the 
  9.1   ratio of: 
  9.2      (1) the number of pupils of limited English proficiency 
  9.3   enrolled in the district during the current fiscal year; to 
  9.4      (2) the number of pupils in average daily membership 
  9.5   enrolled in the district. 
  9.6      (c) The limited English proficiency pupil units for each 
  9.7   pupil enrolled in a program for pupils of limited English 
  9.8   proficiency in accordance with sections 126.261 to 126.269 
  9.9   equals the lesser of one or the quotient obtained by dividing 
  9.10  the limited English proficiency concentration percentage for the 
  9.11  pupil's district of enrollment by 11.5. 
  9.12     (d) Limited English proficiency pupil units shall be 
  9.13  counted by the district of enrollment. 
  9.14     (e) Notwithstanding paragraph (d), for the purposes of this 
  9.15  subdivision, pupils enrolled in a cooperative or intermediate 
  9.16  school district shall be counted by the district of residence. 
  9.17     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  9.18  124.195, subdivision 7, is amended to read: 
  9.19     Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  9.20  fiscal year state general fund payments for a district 
  9.21  nonoperating fund shall be made at 90 percent of the estimated 
  9.22  entitlement during the fiscal year of the entitlement.  This 
  9.23  amount shall be paid in 12 equal monthly installments.  The 
  9.24  amount of the actual entitlement, after adjustment for actual 
  9.25  data, minus the payments made during the fiscal year of the 
  9.26  entitlement shall be paid prior to October 31 of the following 
  9.27  school year.  The commissioner may make advance payments of debt 
  9.28  service equalization aid or homestead and agricultural credit 
  9.29  aid for a district's debt service fund earlier than would occur 
  9.30  under the preceding schedule if the district submits evidence 
  9.31  showing a serious cash flow problem in the fund.  The 
  9.32  commissioner may make earlier payments during the year and, if 
  9.33  necessary, increase the percent of the entitlement paid to 
  9.34  reduce the cash flow problem. 
  9.35     Sec. 9.  Minnesota Statutes 1996, section 124.248, 
  9.36  subdivision 1, is amended to read: 
 10.1      Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 10.2   education revenue shall be paid to a charter school as though it 
 10.3   were a school district.  The general education revenue for each 
 10.4   pupil unit is the state average general education revenue per 
 10.5   pupil unit minus $170 an amount equal to the product of the 
 10.6   formula allowance according to section 124A.22, subdivision 2, 
 10.7   times .0485, calculated without compensatory basic skills 
 10.8   revenue, transportation sparsity revenue, and the transportation 
 10.9   portion of the transition revenue adjustment, plus compensatory 
 10.10  basic skills revenue as though the school were a school district.
 10.11     Sec. 10.  Minnesota Statutes 1996, section 124.248, 
 10.12  subdivision 1a, is amended to read: 
 10.13     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
 10.14  shall be paid to a charter school that provides transportation 
 10.15  services according to section 120.064, subdivision 15, according 
 10.16  to this subdivision.  Transportation aid shall equal 
 10.17  transportation revenue.  
 10.18     (a) In addition to the revenue under subdivision 1, a 
 10.19  charter school providing transportation services shall receive 
 10.20  general education aid for each pupil unit equal to the sum of 
 10.21  $170 an amount equal to the product of the formula allowance 
 10.22  according to section 124A.22, subdivision 2, times .0485, plus 
 10.23  the transportation sparsity allowance for the school district in 
 10.24  which the charter school is located, plus the transportation 
 10.25  transition allowance for the school district in which the 
 10.26  charter school is located.  
 10.27     (b) For the first two years that a charter school is 
 10.28  providing transportation services, the special programs 
 10.29  transportation revenue equals the charter school's actual cost 
 10.30  in the current school year for transportation services for 
 10.31  children with disabilities under section 124.223, subdivisions 
 10.32  4, 5, 7, and 8.  For the third year of transportation services 
 10.33  and later fiscal years, the special programs transportation 
 10.34  revenue shall be computed according to section 124.225, 
 10.35  subdivision 14.  
 10.36     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 11.1   124.248, subdivision 2a, is amended to read: 
 11.2      Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
 11.3   finds it economically advantageous to rent or lease a building 
 11.4   or land for any instructional purposes and it determines that 
 11.5   the total operating capital revenue under section 124A.22, 
 11.6   subdivision 10, is insufficient for this purpose, it may apply 
 11.7   to the commissioner for building lease aid for this purpose.  
 11.8   Criteria for aid approval and revenue uses shall be as defined 
 11.9   for the building lease levy in section 124.91, subdivision 1, 
 11.10  paragraphs (a) and (b).  The amount of building lease aid per 
 11.11  pupil unit served for a charter school for any year shall not 
 11.12  exceed the lesser of (a) 80 percent of the approved cost or (b) 
 11.13  the product of the actual pupil units served for the current 
 11.14  school year times the sum of the state average debt redemption 
 11.15  fund revenue plus capital revenue, according to section 124.91, 
 11.16  per actual pupil unit served for the current fiscal year. 
 11.17     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 11.18  124.248, subdivision 6, is amended to read: 
 11.19     Subd. 6.  [START-UP COSTS.] During the first two years of a 
 11.20  charter school's operation, the charter school is eligible for 
 11.21  aid to pay for start-up costs and additional operating costs. 
 11.22  Start-up cost aid equals the greater of: 
 11.23     (1) $50,000 per charter school; or 
 11.24     (2) $500 times the charter school's pupil units served for 
 11.25  that year. 
 11.26     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 11.27  124.2601, subdivision 3, is amended to read: 
 11.28     Subd. 3.  [REVENUE AID.] Adult basic education revenue aid 
 11.29  for each approved program equals 65 percent of the general 
 11.30  education formula allowance times the number of full-time 
 11.31  equivalent students in its adult basic education program. 
 11.32     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 11.33  124.2601, subdivision 6, is amended to read: 
 11.34     Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
 11.35  adult basic education program that receives less state aid under 
 11.36  subdivisions 3 and 7 than from the aid formula for fiscal year 
 12.1   1992 shall receive the amount of aid it received in fiscal year 
 12.2   1992. 
 12.3      (b) For 1995, 1996, and 1997 fiscal years, an adult basic 
 12.4   education program that receives aid shall receive at least the 
 12.5   amount of aid it received in fiscal year 1992 under subdivisions 
 12.6   3 and 7, plus aid equal to the amount of revenue that would have 
 12.7   been raised for taxes payable in 1994 under Minnesota Statutes 
 12.8   1992, section 124.2601, subdivision 4, minus the amount raised 
 12.9   under subdivision 4. 
 12.10     (c) For fiscal year 1998, any adult basic education program 
 12.11  that receives less state aid than in fiscal year 1997 shall 
 12.12  receive additional aid equal to 80 percent of the difference 
 12.13  between its 1997 aid and the amount of aid under section 
 12.14  124.2601, subdivision 5.  For fiscal year 1999 and later, 
 12.15  additional aid under this paragraph must be reduced by 20 
 12.16  percent each year equals 80 percent of the additional aid 
 12.17  computed for fiscal year 1998.  For fiscal year 2000, the 
 12.18  additional aid under this paragraph equals 60 percent of the 
 12.19  additional aid computed for fiscal year 1998.  For fiscal year 
 12.20  2001, the additional aid under this paragraph equals 40 percent 
 12.21  of the additional aid computed for fiscal year 1998.  For fiscal 
 12.22  year 2002, the additional aid under this paragraph equals 20 
 12.23  percent of the additional aid computed for fiscal year 1998.  
 12.24  For fiscal year 2003 and later, the additional aid under this 
 12.25  paragraph equals zero. 
 12.26     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 12.27  124.2711, subdivision 2a, is amended to read: 
 12.28     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 12.29  obtain early childhood family education revenue, a district may 
 12.30  levy an amount equal to the tax rate of .653 .45 percent times 
 12.31  the adjusted tax capacity of the district for the year preceding 
 12.32  the year the levy is certified.  If the amount of the early 
 12.33  childhood family education levy would exceed the early childhood 
 12.34  family education revenue, the early childhood family education 
 12.35  levy shall equal the early childhood family education revenue. 
 12.36     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 13.1   124.2713, subdivision 6, is amended to read: 
 13.2      Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
 13.3   education revenue, a district may levy the amount raised by a 
 13.4   tax rate of 1.09 .41 percent times the adjusted net tax capacity 
 13.5   of the district.  If the amount of the community education levy 
 13.6   would exceed the community education revenue, the community 
 13.7   education levy shall be determined according to subdivision 6a. 
 13.8      Sec. 17.  Minnesota Statutes 1996, section 124.2713, 
 13.9   subdivision 6a, is amended to read: 
 13.10     Subd. 6a.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
 13.11  FORMULA.] If the amount of the community education levy for a 
 13.12  district exceeds the district's community education revenue, the 
 13.13  amount of the community education levy is limited to the sum of: 
 13.14     (1) the district's community education revenue according to 
 13.15  subdivision 1; plus. 
 13.16     (2) the amount of the aid reduction for the same fiscal 
 13.17  year according to subdivision 6b.  
 13.18     For purposes of statutory cross-reference, a levy made 
 13.19  according to this subdivision is the levy made according to 
 13.20  subdivision 6.  
 13.21     Sec. 18.  Minnesota Statutes 1996, section 124.2727, 
 13.22  subdivision 6a, is amended to read: 
 13.23     Subd. 6a.  [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] 
 13.24  A district's cooperation revenue for fiscal year 1999 is equal 
 13.25  to the greater of $67 times the actual pupil units or $25,000. 
 13.26     Sec. 19.  Minnesota Statutes 1996, section 124.2727, 
 13.27  subdivision 6c, is amended to read: 
 13.28     Subd. 6c.  [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A 
 13.29  district's cooperation aid for fiscal year 1999 is the 
 13.30  difference between its district cooperation revenue and its 
 13.31  district cooperation levy.  If a district does not levy the 
 13.32  entire amount permitted, aid must be reduced in proportion to 
 13.33  the actual amount levied. 
 13.34     Sec. 20.  Minnesota Statutes 1996, section 124.273, is 
 13.35  amended by adding a subdivision to read: 
 13.36     Subd. 8.  [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 
 14.1   purposes of this section and section 124.321, pupils of limited 
 14.2   English proficiency enrolled in a cooperative or intermediate 
 14.3   school district unit shall be counted by the school district of 
 14.4   residence, and the cooperative unit shall allocate its approved 
 14.5   expenditures for limited English proficiency programs among 
 14.6   participating school districts.  Limited English proficiency aid 
 14.7   for services provided by a cooperative or intermediate school 
 14.8   district shall be paid to the participating school districts. 
 14.9      Sec. 21.  Minnesota Statutes 1996, section 124.85, 
 14.10  subdivision 4, is amended to read: 
 14.11     Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
 14.12  guaranteed energy savings contract with a qualified provider if, 
 14.13  after review of the report and the commissioner's evaluation if 
 14.14  requested, the board finds that the amount it would spend on the 
 14.15  energy conservation measures recommended in the report is not 
 14.16  likely to exceed the amount to be saved in energy and operation 
 14.17  costs over 15 years from the date of installation if the 
 14.18  recommendations in the report were followed, and the qualified 
 14.19  provider provides a written guarantee that the energy or 
 14.20  operating cost savings will meet or exceed the costs of the 
 14.21  system.  The guaranteed energy savings contract may provide for 
 14.22  payments over a period of time, not to exceed 15 years.  
 14.23  Notwithstanding section 121.912, a district annually may 
 14.24  transfer from the general fund to the capital expenditure fund 
 14.25  reserve for operating capital account an amount up to the amount 
 14.26  saved in energy and operation costs as a result of guaranteed 
 14.27  energy savings contracts. 
 14.28     Sec. 22.  Minnesota Statutes 1996, section 124.3201, 
 14.29  subdivision 5, is amended to read: 
 14.30     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
 14.31  A school district's special education revenue for fiscal year 
 14.32  1996 and later equals the state total special education revenue, 
 14.33  minus the amount determined under paragraph (b), times the ratio 
 14.34  of the district's adjusted special education base revenue to the 
 14.35  state total adjusted special education base revenue.  If the 
 14.36  state board of education modifies its rules for special 
 15.1   education in a manner that increases a school district's special 
 15.2   education obligations or service requirements, the commissioner 
 15.3   of children, families, and learning shall annually increase each 
 15.4   district's special education revenue by the amount necessary to 
 15.5   compensate for the increased service requirements.  The 
 15.6   additional revenue equals the cost in the current year 
 15.7   attributable to rule changes not reflected in the computation of 
 15.8   special education base revenue, multiplied by the appropriate 
 15.9   percentages from subdivision 2. 
 15.10     (b) Notwithstanding paragraph (a), if the special education 
 15.11  base revenue for a district equals zero, the special education 
 15.12  revenue equals the amount computed according to subdivision 2 
 15.13  using current year data.  
 15.14     (c) Notwithstanding paragraphs (a) and (b), if the special 
 15.15  education base revenue for a district is greater than zero, and 
 15.16  the base year amount for the district under subdivision 2, 
 15.17  paragraph (a), clause (7), equals zero, the special education 
 15.18  revenue equals the sum of the amount computed according to 
 15.19  paragraph (a), plus the amount computed according to subdivision 
 15.20  2, paragraph (a), clause (7), using current year data. 
 15.21     Sec. 23.  Minnesota Statutes 1996, section 124A.03, 
 15.22  subdivision 3c, is amended to read: 
 15.23     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] (a) For fiscal 
 15.24  year 1998 and later, a district's referendum allowance for 
 15.25  referendum authority under subdivision 1c is reduced as provided 
 15.26  in this subdivision paragraph.  
 15.27     (a) (1) For referendum revenue authority approved before 
 15.28  June 1, 1996, and effective for fiscal year 1997, the reduction 
 15.29  equals the amount of the reduction computed for fiscal year 1997 
 15.30  under subdivision 3b.  
 15.31     (b) (2) For referendum revenue authority approved before 
 15.32  June 1, 1996, and effective beginning in fiscal year 1998, the 
 15.33  reduction equals the amount of the reduction computed for fiscal 
 15.34  year 1998 under subdivision 3b. 
 15.35     (b) For fiscal year 1999 and later, a district's referendum 
 15.36  allowance for referendum authority under subdivision 1c equals 
 16.1   the amount of the reduction computed for fiscal year 1998 under 
 16.2   paragraph (a) times the lesser of one or the ratio of the 
 16.3   referendum allowance for the district to the amount determined 
 16.4   in subdivision 1c, clause (2), for fiscal year 1999. 
 16.5      (c) For referendum revenue authority approved after May 31, 
 16.6   1996, there is no reduction.  
 16.7      (d) For districts with more than one referendum authority, 
 16.8   the reduction shall be computed separately for each authority.  
 16.9   The reduction shall be applied first to authorities levied 
 16.10  against tax capacity, and then to authorities levied against 
 16.11  referendum market value.  For districts with more than one 
 16.12  authority levied against net tax capacity or against referendum 
 16.13  market value, the referendum allowance reduction shall be 
 16.14  applied first to the authority with the earliest expiration date.
 16.15     (e) When referendum authority approved before June 1, 1996, 
 16.16  expires, the referendum allowance reduction for a district shall 
 16.17  be decreased by the amount of the decline in the district's 
 16.18  total referendum allowance under subdivision 1c.  For districts 
 16.19  with more than one referendum authority remaining after the 
 16.20  expiration, the amount of any remaining allowance reduction 
 16.21  shall be reallocated among the remaining referendum authority 
 16.22  approved before June 1, 1996, according to paragraph (d). 
 16.23     (f) For a newly reorganized district created after July 1, 
 16.24  1996, the referendum revenue reduction equals the lesser of the 
 16.25  amount calculated for the combined district, or the sum of the 
 16.26  amounts by which each of the reorganizing district's 
 16.27  supplemental revenue reduction exceeds its respective 
 16.28  supplemental revenue allowances calculated for the year 
 16.29  preceding the year of reorganization. 
 16.30     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 16.31  124A.036, subdivision 5, is amended to read: 
 16.32     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 16.33  education aid for districts must be adjusted for each pupil 
 16.34  attending a nonresident district under sections 120.062, 
 16.35  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 16.36  The adjustments must be made according to this subdivision. 
 17.1      (a) General education aid paid to a resident district must 
 17.2   be reduced by an amount equal to the general education revenue 
 17.3   exclusive of compensatory basic skills revenue attributable to 
 17.4   the pupil in the resident district. 
 17.5      (b) General education aid paid to a district serving a 
 17.6   pupil in programs listed in this subdivision shall be increased 
 17.7   by an amount equal to the general education revenue exclusive of 
 17.8   compensatory basic skills revenue attributable to the pupil in 
 17.9   the nonresident district.  
 17.10     (c) If the amount of the reduction to be made from the 
 17.11  general education aid of the resident district is greater than 
 17.12  the amount of general education aid otherwise due the district, 
 17.13  the excess reduction must be made from other state aids due the 
 17.14  district. 
 17.15     (d) The district of residence shall pay tuition to a 
 17.16  district or an area learning center, operated according to 
 17.17  paragraph (e), providing special instruction and services to a 
 17.18  pupil with a disability, as defined in section 120.03, or a 
 17.19  pupil, as defined in section 120.181, who is enrolled in a 
 17.20  program listed in this subdivision.  The tuition shall be equal 
 17.21  to (1) the actual cost of providing special instruction and 
 17.22  services to the pupil, including a proportionate amount for debt 
 17.23  service and for capital expenditure facilities and equipment, 
 17.24  and debt service but not including any amount for 
 17.25  transportation, minus (2) the amount of general education aid 
 17.26  and special education aid, attributable to that pupil, that is 
 17.27  received by the district providing special instruction and 
 17.28  services. 
 17.29     (e) An area learning center operated by a service 
 17.30  cooperative, intermediate district, education district, or a 
 17.31  joint powers cooperative may elect through the action of the 
 17.32  constituent boards to charge tuition for pupils rather than to 
 17.33  calculate general education aid adjustments under paragraph (a), 
 17.34  (b), or (c).  The tuition must be equal to the greater of the 
 17.35  average general education revenue per pupil unit attributable to 
 17.36  the pupil, or the actual cost of providing the instruction, 
 18.1   excluding transportation costs, if the pupil meets the 
 18.2   requirements of section 120.03 or 120.181. 
 18.3      Sec. 25.  Minnesota Statutes 1996, section 124A.036, 
 18.4   subdivision 6, is amended to read: 
 18.5      Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 18.6   for districts must be adjusted for each pupil attending a 
 18.7   charter school under section 120.064.  The adjustments must be 
 18.8   made according to this subdivision. 
 18.9      (b) General education aid paid to a resident district must 
 18.10  be reduced by an amount equal to the general education revenue 
 18.11  exclusive of compensatory basic skills revenue. 
 18.12     (c) General education aid paid to a district in which a 
 18.13  charter school not providing transportation according to section 
 18.14  120.064, subdivision 15, is located shall be increased by an 
 18.15  amount equal to the product of:  (1) the sum of $170 an amount 
 18.16  equal to the product of the formula allowance according to 
 18.17  section 124A.22, subdivision 2, times .0485, plus the 
 18.18  transportation sparsity allowance for the district, plus the 
 18.19  transportation transition allowance for the district; times (2) 
 18.20  the pupil units attributable to the pupil.  
 18.21     (d) If the amount of the reduction to be made from the 
 18.22  general education aid of the resident district is greater than 
 18.23  the amount of general education aid otherwise due the district, 
 18.24  the excess reduction must be made from other state aids due the 
 18.25  district. 
 18.26     Sec. 26.  Minnesota Statutes 1996, section 124A.22, is 
 18.27  amended by adding a subdivision to read: 
 18.28     Subd. 2b.  [WAIVER.] A district receiving less than an 
 18.29  inflationary increase as determined by the Consumer Price Index, 
 18.30  in revenue per pupil in average daily membership, excluding 
 18.31  capital bond proceeds, in the current biennium over the previous 
 18.32  biennium is exempt from compliance with state statutes and rules 
 18.33  applicable to schools and school districts until the district 
 18.34  receives an increase in revenue per pupil in average daily 
 18.35  membership equal to or greater than the rate of inflation.  An 
 18.36  exempted school district must comply with the requirements for 
 19.1   charter schools in section 120.064, subdivisions 8 and 10.  An 
 19.2   exempted district must comply with chapter 179A, and sections 
 19.3   125.12 and 125.17. 
 19.4      Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 19.5   124A.22, subdivision 2, is amended to read: 
 19.6      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 19.7   district equals the formula allowance times the actual pupil 
 19.8   units for the school year.  The formula allowance for fiscal 
 19.9   year 1997 is $3,505.  The formula allowance for fiscal year 1998 
 19.10  is $3,581 and the formula allowance for fiscal year 1999 and 
 19.11  subsequent fiscal years is $3,530.  The formula allowance for 
 19.12  fiscal year 2000 and subsequent fiscal years is $3,597. 
 19.13     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 19.14  124A.22, subdivision 13b, is amended to read: 
 19.15     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 19.16  transportation transition allowance for fiscal year 1998 and 
 19.17  later equals the result of the following: 
 19.18     (1) if the result in subdivision 13a, paragraph (a), clause 
 19.19  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 19.20  base allowance, the transportation transition allowance equals 
 19.21  the fiscal year 1996 base allowance minus the result in 
 19.22  subdivision 13a, paragraph (a), clause (iii); or 
 19.23     (2) if the result in subdivision 13a, paragraph (a), clause 
 19.24  (iii), for fiscal year 1998 and later is greater than or equal 
 19.25  to the fiscal year 1996 base allowance, the transportation 
 19.26  transition allowance equals zero. 
 19.27     (b) For fiscal years 1997 and 1998, a district's training 
 19.28  and experience transition allowance is equal to the training and 
 19.29  experience revenue the district would have received under 
 19.30  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 19.31  by the actual pupil units for fiscal year 1997 minus $130.  For 
 19.32  fiscal year 1999 and later, a district's training and experience 
 19.33  transition allowance equals zero.  
 19.34     If the training and experience transition allowance is less 
 19.35  than zero, the reduction shall be determined according to the 
 19.36  following schedule: 
 20.1      (1) for fiscal year 1997, the reduction is equal to .9 
 20.2   times the amount initially determined; 
 20.3      (2) for fiscal year 1998, the reduction is equal to .75 
 20.4   times the amount initially determined; and 
 20.5      (c) A district's transition compensatory transition 
 20.6   allowance equals the greater of zero or the difference between:  
 20.7      (1) the amount of compensatory revenue the district would 
 20.8   have received under subdivision 3 for fiscal year 1998 computed 
 20.9   using a basic formula allowance of $3,281; and 
 20.10     (2) the amount the district receives under subdivision 3; 
 20.11  divided by 
 20.12     (3) the district's actual pupil units for fiscal year 1998. 
 20.13     (c) A district's cooperation transition allowance for 
 20.14  fiscal year 2000 and later equals the greater of zero or the 
 20.15  difference between:  
 20.16     (1) $25,000; and 
 20.17     (2) $67 times the district's actual pupil units for fiscal 
 20.18  year 2000. 
 20.19     (d) A district's transition allowance for fiscal year 1998 
 20.20  is equal to the sum of its transportation transition allowance, 
 20.21  its training and experience transition allowance, and its 
 20.22  transition compensatory allowance.  A district's transition 
 20.23  allowance for fiscal year 1999 and thereafter is equal to the 
 20.24  sum of its transportation transition allowance and its 
 20.25  transition compensatory transition allowance.  A district's 
 20.26  transition allowance for fiscal year 2000 and thereafter is 
 20.27  equal to the sum of its transportation transition allowance, its 
 20.28  compensatory transition allowance, and its cooperation 
 20.29  transition allowance. 
 20.30     Sec. 29.  [124A.226] [RESERVED REVENUE FOR DISTRICT 
 20.31  COOPERATION.] 
 20.32     A district that was a member of an intermediate school 
 20.33  district organized pursuant to chapter 136D on July 1, 1996, 
 20.34  must place a portion of its general education revenue in a 
 20.35  reserved account for instructional services from entities formed 
 20.36  for cooperative services for special education programs and 
 21.1   secondary vocational programs.  The amount reserved is equal to 
 21.2   the levy made according to Minnesota Statutes 1993, section 
 21.3   124.2727, subdivision 6, for taxes payable in 1994 divided by 
 21.4   the actual pupil units in the intermediate school district for 
 21.5   fiscal year 1995 times the number of actual pupil units in the 
 21.6   school district in 1995.  The district must use 5/11 of the 
 21.7   revenue for special education and 6/11 of the revenue for 
 21.8   secondary vocational education.  The district must demonstrate 
 21.9   that the revenue is being used to provide the full range of 
 21.10  special education and secondary vocational programs and services 
 21.11  available to each child served by the intermediate.  The 
 21.12  secondary vocational programs and services must meet the 
 21.13  requirements established in an articulation agreement developed 
 21.14  between the state board of education and the board of trustees 
 21.15  of the Minnesota state colleges and universities. 
 21.16     A district that was a member of an education district 
 21.17  organized pursuant to section 122.91 on July 1, 1999, must place 
 21.18  a portion of its general education revenue in a reserve account 
 21.19  for instructional services from entities formed for cooperative 
 21.20  services.  Services may include secondary vocational programs, 
 21.21  special education programs, staff development, and gifted and 
 21.22  talented instruction.  The amount reserved is equal to $50 per 
 21.23  pupil unit times the actual number of pupil units in the 
 21.24  district. 
 21.25     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
 21.26  124A.23, subdivision 1, is amended to read: 
 21.27     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 21.28  commissioner shall establish the general education tax rate by 
 21.29  July 1 of each year for levies payable in the following year.  
 21.30  The general education tax capacity rate shall be a rate, rounded 
 21.31  up to the nearest hundredth of a percent, that, when applied to 
 21.32  the adjusted net tax capacity for all districts, raises the 
 21.33  amount specified in this subdivision.  The general education tax 
 21.34  rate shall be the rate that raises $1,359,000,000 for fiscal 
 21.35  year 1998 and $1,385,500,000 for fiscal year 1999 
 21.36  and $1,331,200,000 for fiscal year 2000 and later fiscal years.  
 22.1   The general education tax rate may not be changed due to changes 
 22.2   or corrections made to a district's adjusted net tax capacity 
 22.3   after the tax rate has been established.  If the levy target for 
 22.4   fiscal year 1999 2000 is changed by another law enacted during 
 22.5   the 1997 1998 session, the commissioner shall reduce the target 
 22.6   in this bill by the amount of the reduction in the enacted law. 
 22.7      Sec. 31.  Minnesota Statutes 1996, section 124A.292, 
 22.8   subdivision 3, is amended to read: 
 22.9      Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
 22.10  equals its revenue times the lesser of one or the ratio of: 
 22.11     (1) the quotient derived by dividing the district's 
 22.12  adjusted net tax capacity for the year before the year the levy 
 22.13  is certified by the district's actual pupil units for the school 
 22.14  year to which the levy is attributable, to 
 22.15     (2) the equalizing factor for the school year to which the 
 22.16  levy is attributable the number of teachers at the site times 
 22.17  $8.15. 
 22.18     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
 22.19  124A.28, subdivision 1, is amended to read: 
 22.20     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 22.21  education revenue under section 124A.22, subdivision 3, and the 
 22.22  portion of the transition revenue adjustment under section 
 22.23  124A.22, subdivision 13c, attributable to the compensatory 
 22.24  transition allowance under section 124A.22, subdivision 13b, 
 22.25  paragraph (b), must be used to meet the educational needs of 
 22.26  pupils who enroll under-prepared to learn and whose progress 
 22.27  toward meeting state or local content or performance standards 
 22.28  is below the level that is appropriate for learners of their 
 22.29  age.  Any of the following may be provided to meet these 
 22.30  learners' needs: 
 22.31     (1) direct instructional services under the assurance of 
 22.32  mastery program according to section 124.3111; 
 22.33     (2) remedial instruction in reading, language arts, 
 22.34  mathematics, other content areas, or study skills to improve the 
 22.35  achievement level of these learners; 
 22.36     (3) additional teachers and teacher aides to provide more 
 23.1   individualized instruction to these learners through individual 
 23.2   tutoring, lower instructor-to-learner ratios, or team teaching; 
 23.3      (4) a longer school day or week during the regular school 
 23.4   year or through a summer program that may be offered directly by 
 23.5   the site or under a performance-based contract with a 
 23.6   community-based organization; 
 23.7      (5) comprehensive and ongoing staff development consistent 
 23.8   with district and site plans according to section 126.70, for 
 23.9   teachers, teacher aides, principals, and other personnel to 
 23.10  improve their ability to identify the needs of these learners 
 23.11  and provide appropriate remediation, intervention, 
 23.12  accommodations, or modifications; 
 23.13     (6) instructional materials and technology appropriate for 
 23.14  meeting the individual needs of these learners; 
 23.15     (7) programs to reduce truancy, encourage completion of 
 23.16  high school, enhance self-concept, provide health services, 
 23.17  provide nutrition services, provide a safe and secure learning 
 23.18  environment, provide coordination for pupils receiving services 
 23.19  from other governmental agencies, provide psychological services 
 23.20  to determine the level of social, emotional, cognitive, and 
 23.21  intellectual development, and provide counseling services, 
 23.22  guidance services, and social work services; 
 23.23     (8) bilingual programs, bicultural programs, and programs 
 23.24  for learners of limited English proficiency; 
 23.25     (9) all day kindergarten; 
 23.26     (10) extended school day and extended school year programs; 
 23.27     (11) substantial parent involvement in developing and 
 23.28  implementing remedial education or intervention plans for a 
 23.29  learner, including learning contracts between the school, the 
 23.30  learner, and the parent that establish achievement goals and 
 23.31  responsibilities of the learner and the learner's parent or 
 23.32  guardian; and 
 23.33     (12) other methods to increase achievement, as needed.  
 23.34     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
 23.35  124A.28, subdivision 1a, is amended to read: 
 23.36     Subd. 1a.  [BUILDING ALLOCATION.] A district must allocate 
 24.1   revenue to each school building in the district where the 
 24.2   children who have generated the revenue are served.  For the 
 24.3   purposes of this section and section 124.17, subdivision 1d, 
 24.4   "building" means education site as defined in section 123.951, 
 24.5   subdivision 1. 
 24.6      If the pupil is served at a site other than one owned and 
 24.7   operated by the district, the revenue shall be paid to the 
 24.8   district and used for services for pupils who generate the 
 24.9   revenue. 
 24.10     Sec. 34.  Minnesota Statutes 1996, section 124A.30, is 
 24.11  amended to read: 
 24.12     124A.30 [STATEWIDE AVERAGE REVENUE.] 
 24.13     By October 1 of each year the commissioner shall estimate 
 24.14  the statewide average adjusted general education revenue per 
 24.15  actual pupil unit and the range disparity in adjusted general 
 24.16  education revenue among pupils and districts by computing the 
 24.17  difference between the fifth and the ratio of the ninety-fifth 
 24.18  percentiles percentile to the fifth percentile of adjusted 
 24.19  general education revenue.  The commissioner must provide that 
 24.20  information to all school districts. 
 24.21     If the disparity in adjusted general education revenue as 
 24.22  measured by the difference between the fifth and ratio of the 
 24.23  ninety-fifth percentiles percentile to the fifth percentile 
 24.24  increases in any year, the commissioner must propose a shall 
 24.25  recommend to the legislature options for change in the general 
 24.26  education formula that will limit the disparity in adjusted 
 24.27  general education revenue to no more than the disparity for the 
 24.28  previous school year.  The commissioner must submit the proposal 
 24.29  recommended options to the education committees of the 
 24.30  legislature by January 15. 
 24.31     For purposes of this section, adjusted general revenue 
 24.32  means the sum of basic revenue under section 124A.22, 
 24.33  subdivision 2; supplemental revenue under section 124A.22, 
 24.34  subdivisions 8 and 9; transition revenue under section 124.22, 
 24.35  subdivision 13c; and referendum revenue under section 124A.03. 
 24.36     Sec. 35.  Laws 1997, First Special Session chapter 4, 
 25.1   article 1, section 61, subdivision 3, is amended to read: 
 25.2      Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 25.3   adjust each equalizing factor established using adjusted net tax 
 25.4   capacity per actual pupil unit under Minnesota Statutes, 
 25.5   chapters 124 and 124A, by dividing the equalizing factor by the 
 25.6   ratio of the statewide tax capacity as calculated using the 
 25.7   class rates in effect for assessment year 1996 to the statewide 
 25.8   tax capacity using the class rates for that assessment year. 
 25.9      Sec. 36.  Laws 1992, chapter 499, article 7, section 31, is 
 25.10  amended to read: 
 25.11     Sec. 31.  [REPEALER.] 
 25.12     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 25.13  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 25.14  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 25.15  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 25.16  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 25.17  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 25.18  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 25.19  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 25.20  1999 2000; Laws 1991, chapter 265, article 7, section 35, is 
 25.21  repealed. 
 25.22     Sec. 37.  [BUS LEVY.] 
 25.23     Subdivision 1.  [MAHTOMEDI.] In addition to other levies, 
 25.24  independent school district No. 832, Mahtomedi, a district that 
 25.25  was in statutory operating debt, according to Minnesota 
 25.26  Statutes, section 121.914, subdivisions 1 and 2, may levy an 
 25.27  amount up to $110,000 for the purchase of four type III school 
 25.28  buses.  This amount may be levied over a period of three years. 
 25.29     Subd. 2.  [KASSON-MANTORVILLE.] In addition to other 
 25.30  levies, independent school district No. 204, Kasson-Mantorville, 
 25.31  may levy an amount up to $157,100 for the deficit that occurred 
 25.32  in the capital equipment fund when a prior bus purchase was 
 25.33  delayed and paid for after June 30, 1996. 
 25.34     Sec. 38.  [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 
 25.35     Notwithstanding Minnesota Statutes, section 124.17, 
 25.36  subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 
 26.1   only, compensation revenue pupil units for buildings with no 
 26.2   free or reduced price lunch counts for fiscal year 1997 because 
 26.3   the site did not participate in the national school lunch 
 26.4   program, or for a contracted alternative program for which no 
 26.5   count was reported to the department of children, families, and 
 26.6   learning, shall be computed using data for the current fiscal 
 26.7   year. 
 26.8      Sec. 39.  [DEFERRED MAINTENANCE PROJECTS.] 
 26.9      By June 30, 1999, a school district, upon formal board 
 26.10  resolution and commissioner of children, families, and learning 
 26.11  approval, may levy for over a five-year period, or issue general 
 26.12  obligation bonds under this section to finance an amount equal 
 26.13  to the combined costs of approved maintenance projects, minus 
 26.14  $200,000.  The total amount financed under this section may not 
 26.15  exceed $60 per resident pupil unit for the year the bonds are 
 26.16  issued or the levy is approved.  Districts may only finance, 
 26.17  under this section, costs related to an approved facility plan 
 26.18  under Minnesota Statutes, section 124.239, subdivision 2.  
 26.19  Districts must comply with Minnesota Statutes, chapter 475, 
 26.20  except Minnesota Statutes, sections 475.58 and 475.59.  The 
 26.21  authority to issue bonds under this section is in addition to 
 26.22  any bonding authority authorized by law.  The bonds must be 
 26.23  payable in not more than five years.  A tax levy must be made 
 26.24  for the payment of the principal and interest on the bonds, in 
 26.25  accordance with Minnesota Statutes, section 475.61.  Districts 
 26.26  must submit projects to the commissioner for review by September 
 26.27  30, 1998.  Projects financed under this section are not eligible 
 26.28  for facilities equalization revenue under Minnesota Statutes, 
 26.29  section 124.95. 
 26.30     Sec. 40.  [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR 
 26.31  TRANSITION.] 
 26.32     For fiscal year 1999 only, the supplemental compensatory 
 26.33  revenue for each school district equals:  the sum of the number 
 26.34  of pupils enrolled in the district eligible to receive free 
 26.35  lunch plus one-half of the pupils eligible to receive reduced 
 26.36  price lunch on October 1, 1997, times $10.  Revenue under this 
 27.1   section is allocated to school districts, and must be used 
 27.2   according to Minnesota Statutes, section 124A.28, subdivision 1. 
 27.3      Sec. 41.  [ELMORE LEVY ADJUSTMENT.] 
 27.4      For property taxes payable in 1999 only, the levy for 
 27.5   independent school district No. 2860, Blue Earth area, must be 
 27.6   reduced by an amount equal to the amount levied by independent 
 27.7   school district No. 219, Elmore, according to Laws 1996, chapter 
 27.8   412, article 5, section 18, subdivision 2, for taxes payable in 
 27.9   1997.  The levy reduction must be applied against all taxable 
 27.10  property in preexisting independent school district No. 219, 
 27.11  Elmore, only. 
 27.12     Sec. 42.  [FISCAL YEAR 1999 REFERENDUM REVENUE AID AND LEVY 
 27.13  CALCULATIONS.] 
 27.14     For fiscal year 1999 only, the increase in referendum 
 27.15  revenue under section 24 must be paid by the department of 
 27.16  children, families, and learning as state aid.  The referendum 
 27.17  levy for fiscal year 1999 shall be computed according to the 
 27.18  referendum allowance reduction under Minnesota Statutes 1996, 
 27.19  section 124A.03, subdivision 3c. 
 27.20     Sec. 43.  [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 
 27.21  COUNTY CENTRAL; REFERENDUM AUTHORITY.] 
 27.22     Subdivision 1.  [REFERENDUM REVENUE ADJUSTMENT.] 
 27.23  Notwithstanding Minnesota Statutes, section 124A.03, referendum 
 27.24  equalization aid for fiscal year 1998 for independent school 
 27.25  district No. 2862, Jackson County Central, is $72,000, and the 
 27.26  district's net tax capacity referendum levy is $61,000. 
 27.27     Subd. 2.  [AID ADJUSTMENT.] The department of children, 
 27.28  families, and learning shall adjust the aid payments for fiscal 
 27.29  year 1999 to independent school district No. 2862, Jackson 
 27.30  County Central, according to subdivision 1. 
 27.31     Subd. 3.  [LEVY ADJUSTMENT.] For taxes payable in 1999, the 
 27.32  department of children, families, and learning shall make a levy 
 27.33  adjustment for the independent school district No. 2862, Jackson 
 27.34  County Central, referendum levy authority for fiscal year 1998 
 27.35  according to subdivision 1. 
 27.36     Sec. 44.  [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.] 
 28.1      For the purpose of calculating debt service equalization, 
 28.2   donations for capital improvements received before December 31, 
 28.3   2000, to independent school district No. 300, La Crescent-Hokah, 
 28.4   must be considered as part of the percentage that is required to 
 28.5   be raised locally under Minnesota Statutes, section 124.95, 
 28.6   subdivision 3. 
 28.7      Sec. 45. [APPROPRIATIONS.] 
 28.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 28.9   LEARNING.] The sums indicated in this section are appropriated 
 28.10  from the general fund to the department of children, families, 
 28.11  and learning for the fiscal years designated. 
 28.12     Subd. 2.  [SHIFT ELIMINATED.] For additional general 
 28.13  education aid for eliminating the property tax recognition shift 
 28.14  under this article: 
 28.15       $90,100,000    .....    1999 
 28.16     Notwithstanding the provisions of Minnesota Statutes, 
 28.17  section 124.195, the commissioner of children, families, and 
 28.18  learning shall pay the fiscal year 1999 appropriation on June 
 28.19  20, 1999.  
 28.20     Subd. 3.  [DISTRICT-LEVEL COMPENSATORY REVENUE.] For 
 28.21  one-time additional district level compensatory revenue:  
 28.22       $1,916,000     .....     1999
 28.23     Sec. 46.  [REPEALER.] 
 28.24     (a) Minnesota Statutes 1997 Supplement, section 124.912, 
 28.25  subdivisions 2 and 3, are repealed effective for taxes payable 
 28.26  in 1998. 
 28.27     (b) Minnesota Statutes 1996, sections 121.904, subdivision 
 28.28  4c; and 124.2601, subdivision 4; Minnesota Statutes 1997 
 28.29  Supplement, section 124.155, subdivisions 1 and 2, are repealed. 
 28.30     (c) Minnesota Statutes 1997 Supplement, section 124.2601, 
 28.31  subdivision 5, is repealed effective July 1, 1999.  
 28.32     (d) Minnesota Statutes 1996, section 124.2713, subdivision 
 28.33  6b, is repealed effective for taxes payable in 1999 and revenue 
 28.34  for fiscal year 2000.  
 28.35     (e) Minnesota Statutes 1996, section 124.2727, subdivision 
 28.36  6b, is repealed effective for taxes payable in 1999.  
 29.1      (f) Minnesota Statutes 1996, section 124A.292, subdivisions 
 29.2   2 and 4, are repealed effective for revenue for fiscal year 2000.
 29.3      (g) Laws 1997, chapter 231, article 1, section 17, is 
 29.4   repealed effective the day following final enactment. 
 29.5      Sec. 47.  [EFFECTIVE DATES.] 
 29.6      Section 3 is effective July 1, 1999.  Section 6 is 
 29.7   effective July 1, 1997, for revenue for fiscal year 1999 
 29.8   relating to free and reduced lunch prices.  Sections 4, 7, 8, 
 29.9   11, 12, and 34 are effective for revenue for fiscal year 1998.  
 29.10  Section 35 is effective for taxes payable in 1998.  Section 13 
 29.11  is effective July 1, 1999.  Section 20 is effective 
 29.12  retroactively for revenue for fiscal year 1997.  Sections 17 and 
 29.13  29 are effective for revenue for fiscal year 2000. 
 29.14                             ARTICLE 2
 29.15                         SPECIAL EDUCATION
 29.16     Section 1.  Minnesota Statutes 1996, section 120.03, 
 29.17  subdivision 1, is amended to read: 
 29.18     Subdivision 1.  Every child who has a hearing impairment, 
 29.19  visual disability, speech or language impairment, physical 
 29.20  handicap, other health impairment, mental handicap, 
 29.21  emotional/behavioral disorder, specific learning 
 29.22  disability, autism, traumatic brain injury, multiple 
 29.23  disabilities, or deaf/blind disability and needs special 
 29.24  instruction and services, as determined by the standards of the 
 29.25  state board, is a child with a disability.  In addition, every 
 29.26  child under age five three, and at local district discretion 
 29.27  from age three to age seven, who needs special instruction and 
 29.28  services, as determined by the standards of the state board, 
 29.29  because the child has a substantial delay or has an identifiable 
 29.30  physical or mental condition known to hinder normal development 
 29.31  is a child with a disability. 
 29.32     Sec. 2.  [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 
 29.33  MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 
 29.34     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 29.35  cooperative unit has the meaning given in section 123.35, 
 29.36  subdivision 19b, paragraph (d). 
 30.1      Subd. 2.  [STATEWIDE DATA MANAGEMENT SYSTEM.] The 
 30.2   commissioner of children, families, and learning, in cooperation 
 30.3   with the commissioner of human services, shall develop a 
 30.4   statewide data management system using the educational data 
 30.5   reporting system or other existing data management system for 
 30.6   school districts and cooperative units to use to maximize 
 30.7   medical assistance reimbursement for health and health-related 
 30.8   services provided under individual education plans and 
 30.9   individual family service plans.  The system must be 
 30.10  appropriately integrated with state and local existing and 
 30.11  developing human services and education data systems.  The 
 30.12  statewide data management system must enable school district and 
 30.13  cooperative unit staff to: 
 30.14     (1) establish medical assistance billing systems or improve 
 30.15  existing systems; 
 30.16     (2) understand the appropriate medical assistance billing 
 30.17  codes for services provided under individual education plans and 
 30.18  individual family service plans; 
 30.19     (3) comply with the Individuals with Disabilities Education 
 30.20  Act, Public Law Number 105-17; 
 30.21     (4) contract with billing agents; and 
 30.22     (5) carry out other activities necessary to maximize 
 30.23  medical assistance reimbursement. 
 30.24     Subd. 3.  [IMPLEMENTATION.] Consistent with Minnesota 
 30.25  Statutes 256B.0625, subdivision 26, school districts may enroll 
 30.26  as medical assistance providers or subcontractors and bill the 
 30.27  department of human services under the medical assistance fee 
 30.28  for service claims processing system for special education 
 30.29  services which are covered services under chapter 256B, which 
 30.30  are provided in the school setting for a medical assistance 
 30.31  recipient, and for whom the district has secured informed 
 30.32  consent consistent with section 13.05, subdivision 4, paragraph 
 30.33  (d), and section 256B.77, subdivision 2, paragraph (p), to bill 
 30.34  for each type of covered service.  A school district is not 
 30.35  eligible to enroll as a home care provider or a personal care 
 30.36  provider organization for purposes of billing home care services 
 31.1   under section 256B.0627 until the commissioner of human services 
 31.2   issues a bulletin instructing county public health nurses on how 
 31.3   to assess for the needs of eligible recipients during school 
 31.4   hours.  To use private duty nursing services or personal care 
 31.5   services at school, the recipient or responsible party must 
 31.6   provide written authorization in the care plan identifying the 
 31.7   chosen provider and the daily amount of services to be used at 
 31.8   school. Medical assistance services for those enrolled in a 
 31.9   prepaid health plan shall remain the responsibility of the 
 31.10  contracted health plan subject to their network, credentialing, 
 31.11  prior authorization, and determination of medical necessity 
 31.12  criteria.  The commissioner of human services shall adjust 
 31.13  payments to health plans to reflect increased costs incurred by 
 31.14  health plans due to increased payments made to school districts 
 31.15  or new payment or delivery arrangements developed by health 
 31.16  plans in cooperation with school districts. 
 31.17     Sec. 3.  Minnesota Statutes 1996, section 120.06, 
 31.18  subdivision 2a, is amended to read: 
 31.19     Subd. 2a.  [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 
 31.20  Notwithstanding subdivision 1, a school district must not deny 
 31.21  free admission to a homeless person of school age solely because 
 31.22  the school district cannot determine that the person is a 
 31.23  resident of the school district.  
 31.24     (b) The school district of residence for a homeless person 
 31.25  of school age shall be the school district in which the homeless 
 31.26  shelter or other program, center, or facility assisting the 
 31.27  homeless person is located.  The educational services a school 
 31.28  district provides to a homeless person must allow the person to 
 31.29  meet the graduation standards under section 121.11, subdivision 
 31.30  7c. 
 31.31     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
 31.32  subdivision 5, is amended to read: 
 31.33     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 31.34  charter school shall be in the form of a written contract signed 
 31.35  by the sponsor and the board of directors of the charter 
 31.36  school.  The contract for a charter school shall be in writing 
 32.1   and contain at least the following: 
 32.2      (1) a description of a program that carries out one or more 
 32.3   of the purposes in subdivision 1; 
 32.4      (2) specific outcomes pupils are to achieve under 
 32.5   subdivision 10; 
 32.6      (3) admission policies and procedures; 
 32.7      (4) management and administration of the school; 
 32.8      (5) requirements and procedures for program and financial 
 32.9   audits; 
 32.10     (6) how the school will comply with subdivisions 8, 13, 15, 
 32.11  and 21; 
 32.12     (7) assumption of liability by the charter school; 
 32.13     (8) types and amounts of insurance coverage to be obtained 
 32.14  by the charter school; and 
 32.15     (9) the term of the contract, which may be up to three 
 32.16  years; and 
 32.17     (10) if the board of directors or the operators of the 
 32.18  charter school provide special instruction and services for 
 32.19  children with a disability under section 120.17, a description 
 32.20  of the financial parameters within which the charter school will 
 32.21  operate to provide the special instruction and services to 
 32.22  children with a disability. 
 32.23     Sec. 5.  Minnesota Statutes 1996, section 120.101, 
 32.24  subdivision 3, is amended to read: 
 32.25     Subd. 3.  [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 
 32.26  sections 120.101 to 120.103, "parent" means a parent, guardian, 
 32.27  or other person having legal custody of a child.  
 32.28     (b) In section 120.17, "parent" means a parent, guardian, 
 32.29  or other person having legal custody of a child under age 18.  
 32.30  For an unmarried pupil age 18 or over, "parent" means the pupil 
 32.31  unless a guardian or conservator has been appointed, in which 
 32.32  case it means the guardian or conservator. 
 32.33     (c) For purposes of section 120.17, the school district of 
 32.34  residence for an unmarried pupil age 18 or over who is a parent 
 32.35  under paragraph (b) and who is placed in a center for care and 
 32.36  treatment, shall be the school district in which the pupil's 
 33.1   biological or adoptive parent or designated guardian resides. 
 33.2      (d) For a married pupil age 18 or over, the school district 
 33.3   of residence is the school district in which the married pupil 
 33.4   resides. 
 33.5      Sec. 6.  Minnesota Statutes 1996, section 120.17, 
 33.6   subdivision 1, is amended to read: 
 33.7      Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 33.8   DISABILITY.] (a) As defined in paragraph (b), to the extent 
 33.9   required in federal law as of July 1, 1999, every district shall 
 33.10  provide special instruction and services, either within the 
 33.11  district or in another district, for children with a disability 
 33.12  who are residents of the district and who are disabled as set 
 33.13  forth in section 120.03.  
 33.14     (b) Notwithstanding any age limits in laws to the contrary, 
 33.15  special instruction and services must be provided from birth 
 33.16  until September 1 after the child with a disability becomes 22 
 33.17  years old but shall not extend beyond secondary school or its 
 33.18  equivalent, except as provided in section 126.22, subdivision 
 33.19  2.  Local health, education, and social service agencies shall 
 33.20  refer children under age five who are known to need or suspected 
 33.21  of needing special instruction and services to the school 
 33.22  district.  Districts with less than the minimum number of 
 33.23  eligible children with a disability as determined by the state 
 33.24  board shall cooperate with other districts to maintain a full 
 33.25  range of programs for education and services for children with a 
 33.26  disability.  This subdivision does not alter the compulsory 
 33.27  attendance requirements of section 120.101. 
 33.28     Sec. 7.  Minnesota Statutes 1996, section 120.17, 
 33.29  subdivision 2, is amended to read: 
 33.30     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 
 33.31  in this subdivision, to the extent required by federal law as of 
 33.32  July 1, 1999, special instruction and services for children with 
 33.33  a disability must be based on the assessment and individual 
 33.34  education plan.  The instruction and services may be provided by 
 33.35  one or more of the following methods: 
 33.36     (1) in connection with attending regular elementary and 
 34.1   secondary school classes; 
 34.2      (2) establishment of special classes; 
 34.3      (3) at the home or bedside of the child; 
 34.4      (4) in other districts; 
 34.5      (5) instruction and services by special education 
 34.6   cooperative centers established under this section, or in 
 34.7   another member district of the cooperative center to which the 
 34.8   resident district of the child with a disability belongs; 
 34.9      (6) in a state residential school or a school department of 
 34.10  a state institution approved by the commissioner; 
 34.11     (7) in other states; 
 34.12     (8) by contracting with public, private or voluntary 
 34.13  agencies; 
 34.14     (9) for children under age five and their families, 
 34.15  programs and services established through collaborative efforts 
 34.16  with other agencies; 
 34.17     (10) for children under age five and their families, 
 34.18  programs in which children with a disability are served with 
 34.19  children without a disability; and 
 34.20     (11) any other method approved by the commissioner. 
 34.21     (b) Preference shall be given to providing special 
 34.22  instruction and services to children under age three and their 
 34.23  families in the residence of the child with the parent or 
 34.24  primary caregiver, or both, present. 
 34.25     (c) The primary responsibility for the education of a child 
 34.26  with a disability shall remain with the district of the child's 
 34.27  residence regardless of which method of providing special 
 34.28  instruction and services is used.  If a district other than a 
 34.29  child's district of residence provides special instruction and 
 34.30  services to the child, then the district providing the special 
 34.31  instruction and services shall notify the child's district of 
 34.32  residence before the child's individual education plan is 
 34.33  developed and shall provide the district of residence an 
 34.34  opportunity to participate in the plan's development.  The 
 34.35  district of residence must inform the parents of the child about 
 34.36  the methods of instruction that are available. 
 35.1      (d) Paragraphs (e) to (i) may be cited as the "blind 
 35.2   persons' literacy rights and education act." 
 35.3      (e) The following definitions apply to paragraphs (f) to 
 35.4   (i). 
 35.5      "Blind student" means an individual who is eligible for 
 35.6   special educational services and who: 
 35.7      (1) has a visual acuity of 20/200 or less in the better eye 
 35.8   with correcting lenses or has a limited field of vision such 
 35.9   that the widest diameter subtends an angular distance of no 
 35.10  greater than 20 degrees; or 
 35.11     (2) has a medically indicated expectation of visual 
 35.12  deterioration. 
 35.13     "Braille" means the system of reading and writing through 
 35.14  touch commonly known as standard English Braille.  
 35.15     "Individualized education plan" means a written statement 
 35.16  developed for a student eligible for special education and 
 35.17  services pursuant to this section and section 602(a)(20) of part 
 35.18  A of the Individuals with Disabilities Education Act, United 
 35.19  States Code, title 20, section 1401(a). 
 35.20     (f) In developing an individualized education plan for each 
 35.21  blind student the presumption must be that proficiency in 
 35.22  Braille reading and writing is essential for the student to 
 35.23  achieve satisfactory educational progress.  The assessment 
 35.24  required for each student must include a Braille skills 
 35.25  inventory, including a statement of strengths and deficits.  
 35.26  Braille instruction and use are not required by this paragraph 
 35.27  if, in the course of developing the student's individualized 
 35.28  education program, team members concur that the student's visual 
 35.29  impairment does not affect reading and writing performance 
 35.30  commensurate with ability.  This paragraph does not require the 
 35.31  exclusive use of Braille if other special education services are 
 35.32  appropriate to the student's educational needs.  The provision 
 35.33  of other appropriate services does not preclude Braille use or 
 35.34  instruction.  Instruction in Braille reading and writing shall 
 35.35  be available for each blind student for whom the 
 35.36  multidisciplinary team has determined that reading and writing 
 36.1   is appropriate. 
 36.2      (g) Instruction in Braille reading and writing must be 
 36.3   sufficient to enable each blind student to communicate 
 36.4   effectively and efficiently with the same level of proficiency 
 36.5   expected of the student's peers of comparable ability and grade 
 36.6   level.  
 36.7      (h) The student's individualized education plan must 
 36.8   specify: 
 36.9      (1) the results obtained from the assessment required under 
 36.10  paragraph (f); 
 36.11     (2) how Braille will be implemented through integration 
 36.12  with other classroom activities; 
 36.13     (3) the date on which Braille instruction will begin; 
 36.14     (4) the length of the period of instruction and the 
 36.15  frequency and duration of each instructional session; 
 36.16     (5) the level of competency in Braille reading and writing 
 36.17  to be achieved by the end of the period and the objective 
 36.18  assessment measures to be used; and 
 36.19     (6) if a decision has been made under paragraph (f) that 
 36.20  Braille instruction or use is not required for the student:  
 36.21     (i) a statement that the decision was reached after a 
 36.22  review of pertinent literature describing the educational 
 36.23  benefits of Braille instruction and use; and 
 36.24     (ii) a specification of the evidence used to determine that 
 36.25  the student's ability to read and write effectively without 
 36.26  Braille is not impaired. 
 36.27     (i) Instruction in Braille reading and writing is a service 
 36.28  for the purpose of special education and services under this 
 36.29  section. 
 36.30     (j) Paragraphs (e) to (i) shall not be construed to 
 36.31  supersede any rights of a parent or guardian of a child with a 
 36.32  disability under federal or state law. 
 36.33     Sec. 8.  Minnesota Statutes 1996, section 120.17, 
 36.34  subdivision 3, is amended to read: 
 36.35     Subd. 3.  [RULES OF THE STATE BOARD.] (a) As defined in 
 36.36  this paragraph, but not to exceed the extent required by federal 
 37.1   law as of July 1, 1999, the state board shall promulgate rules 
 37.2   relative to qualifications of essential personnel, courses of 
 37.3   study, methods of instruction, pupil eligibility, size of 
 37.4   classes, rooms, equipment, supervision, parent consultation, and 
 37.5   any other rules it deems necessary rules for instruction of 
 37.6   children with a disability.  These rules shall provide standards 
 37.7   and procedures appropriate for the implementation of and within 
 37.8   the limitations of subdivisions 3a and 3b.  These rules shall 
 37.9   also provide standards for the discipline, control, management 
 37.10  and protection of children with a disability.  The state board 
 37.11  shall not adopt rules for pupils served in level 1, 2, or 3, as 
 37.12  defined in Minnesota Rules, part 3525.2340, primarily in the 
 37.13  regular classroom establishing either case loads or the maximum 
 37.14  number of pupils that may be assigned to special education 
 37.15  teachers.  The state board, in consultation with the departments 
 37.16  of health and human services, shall adopt permanent rules for 
 37.17  instruction and services for children under age five and their 
 37.18  families.  These rules are binding on state and local education, 
 37.19  health, and human services agencies.  The state board shall 
 37.20  adopt rules to determine eligibility for special education 
 37.21  services.  The rules shall include procedures and standards by 
 37.22  which to grant variances for experimental eligibility criteria.  
 37.23  The state board shall, according to section 14.05, subdivision 
 37.24  4, notify a district applying for a variance from the rules 
 37.25  within 45 calendar days of receiving the request whether the 
 37.26  request for the variance has been granted or denied.  If a 
 37.27  request is denied, the board shall specify the program standards 
 37.28  used to evaluate the request and the reasons for denying the 
 37.29  request.  
 37.30     (b) As provided in this paragraph, but not to exceed the 
 37.31  extent required by federal law as of July 1, 1999, the state's 
 37.32  regulatory scheme should support schools by assuring that all 
 37.33  state special education rules adopted by the state board of 
 37.34  education result in one or more of the following outcomes: 
 37.35     (1) increased time available to teachers and, where 
 37.36  appropriate, to support staff including school nurses for 
 38.1   educating students through direct and indirect instruction; 
 38.2      (2) consistent and uniform access to effective education 
 38.3   programs for students with disabilities throughout the state; 
 38.4      (3) reduced inequalities, and conflict, appropriate due 
 38.5   process hearing procedures, and reduced court actions related to 
 38.6   the delivery of special education instruction and services for 
 38.7   students with disabilities; 
 38.8      (4) clear expectations for service providers and for 
 38.9   students with disabilities; 
 38.10     (5) increased accountability for all individuals and 
 38.11  agencies that provide instruction and other services to students 
 38.12  with disabilities; 
 38.13     (6) greater focus for the state and local resources 
 38.14  dedicated to educating students with disabilities; and 
 38.15     (7) clearer standards for evaluating the effectiveness of 
 38.16  education and support services for students with disabilities. 
 38.17     Sec. 9.  Minnesota Statutes 1996, section 120.17, 
 38.18  subdivision 3a, is amended to read: 
 38.19     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 
 38.20  this subdivision, to the extent required by federal law as of 
 38.21  July 1, 1999, every district shall ensure that: 
 38.22     (1) all students with disabilities are provided the special 
 38.23  instruction and services which are appropriate to their needs.  
 38.24  Where the individual education plan team has determined 
 38.25  appropriate goals and objectives based on the student's needs, 
 38.26  including the extent to which the student can be included in the 
 38.27  least restrictive environment, and where there are essentially 
 38.28  equivalent and effective instruction, related services, or 
 38.29  assistive technology devices available to meet the student's 
 38.30  needs, cost to the school district may be among the factors 
 38.31  considered by the team in choosing how to provide the 
 38.32  appropriate services, instruction, or devices that are to be 
 38.33  made part of the student's individual education plan.  The 
 38.34  student's needs and the special education instruction and 
 38.35  services to be provided shall be agreed upon through the 
 38.36  development of an individual education plan.  The plan shall 
 39.1   address the student's need to develop skills to live and work as 
 39.2   independently as possible within the community.  By grade 9 or 
 39.3   age 14, the plan shall address the student's needs for 
 39.4   transition from secondary services to post-secondary education 
 39.5   and training, employment, community participation, recreation, 
 39.6   and leisure and home living.  In developing the plan, districts 
 39.7   must inform parents of the full range of transitional goals and 
 39.8   related services that should be considered. The plan must 
 39.9   include a statement of the needed transition services, including 
 39.10  a statement of the interagency responsibilities or linkages or 
 39.11  both before secondary services are concluded; 
 39.12     (2) children with a disability under age five and their 
 39.13  families are provided special instruction and services 
 39.14  appropriate to the child's level of functioning and needs; 
 39.15     (3) children with a disability and their parents or 
 39.16  guardians are guaranteed procedural safeguards and the right to 
 39.17  participate in decisions involving identification, assessment 
 39.18  including assistive technology assessment, and educational 
 39.19  placement of children with a disability; 
 39.20     (4) eligibility and needs of children with a disability are 
 39.21  determined by an initial assessment or reassessment.  The 
 39.22  reassessment may be completed using existing data pursuant to 
 39.23  United States Code, title 20, section 33, et. seq.; 
 39.24     (5) to the maximum extent appropriate, children with a 
 39.25  disability, including those in public or private institutions or 
 39.26  other care facilities, are educated with children who are not 
 39.27  disabled, and that special classes, separate schooling, or other 
 39.28  removal of children with a disability from the regular 
 39.29  educational environment occurs only when and to the extent that 
 39.30  the nature or severity of the disability is such that education 
 39.31  in regular classes with the use of supplementary services cannot 
 39.32  be achieved satisfactorily; 
 39.33     (5) (6) in accordance with recognized professional 
 39.34  standards, testing and evaluation materials, and procedures 
 39.35  utilized for the purposes of classification and placement of 
 39.36  children with a disability are selected and administered so as 
 40.1   not to be racially or culturally discriminatory; and 
 40.2      (6) (7) the rights of the child are protected when the 
 40.3   parents or guardians are not known or not available, or the 
 40.4   child is a ward of the state. 
 40.5      (b) For paraprofessionals employed to work in programs for 
 40.6   students with disabilities, the school board in each district 
 40.7   shall ensure that: 
 40.8      (1) before or immediately upon employment, each 
 40.9   paraprofessional develops sufficient knowledge and skills in 
 40.10  emergency procedures, building orientation, roles and 
 40.11  responsibilities, confidentiality, vulnerability, and 
 40.12  reportability, among other things, to begin meeting the needs of 
 40.13  the students with whom the paraprofessional works; 
 40.14     (2) annual training opportunities are available to enable 
 40.15  the paraprofessional to continue to further develop the 
 40.16  knowledge and skills that are specific to the students with whom 
 40.17  the paraprofessional works, including understanding 
 40.18  disabilities, following lesson plans, and implementing follow-up 
 40.19  instructional procedures and activities; and 
 40.20     (3) a districtwide process obligates each paraprofessional 
 40.21  to work under the ongoing direction of a licensed teacher and, 
 40.22  where appropriate and possible, the supervision of a school 
 40.23  nurse. 
 40.24     Sec. 10.  Minnesota Statutes 1996, section 120.17, 
 40.25  subdivision 3b, is amended to read: 
 40.26     Subd. 3b.  [PROCEDURES FOR DECISIONS.] As defined in this 
 40.27  paragraph, but not to exceed the extent required by federal law 
 40.28  as of July 1, 1999, every district shall utilize at least the 
 40.29  following procedures for decisions involving identification, 
 40.30  assessment, and educational placement of children with a 
 40.31  disability: 
 40.32     (a) Parents and guardians shall receive prior written 
 40.33  notice of:  
 40.34     (1) any proposed formal educational assessment or proposed 
 40.35  denial of a formal educational assessment of their child; 
 40.36     (2) a proposed placement of their child in, transfer from 
 41.1   or to, or denial of placement in a special education program; or 
 41.2      (3) the proposed provision, addition, denial or removal of 
 41.3   special education services for their child;. 
 41.4      (b) The district shall not proceed with the initial formal 
 41.5   assessment of a child, the initial placement of a child in a 
 41.6   special education program, or the initial provision of special 
 41.7   education services for a child without the prior written consent 
 41.8   of the child's parent or guardian.  The refusal of a parent or 
 41.9   guardian to consent may be overridden by the decision in a 
 41.10  hearing held pursuant to clause paragraph (e) at the district's 
 41.11  initiative;. 
 41.12     (c) Parents and guardians shall have an opportunity to meet 
 41.13  with appropriate district staff in at least one conciliation 
 41.14  conference, mediation, or other method of alternative dispute 
 41.15  resolution that the parties agree to, if they object to any 
 41.16  proposal of which they are notified pursuant to clause 
 41.17  paragraph (a).  A school district must participate in at least 
 41.18  one attempt to mediate the dispute using the mediation services 
 41.19  of MNSEMS, which is free to both parties, if a parent or 
 41.20  guardian requests the mediation.  The conciliation process or 
 41.21  other form of alternative dispute resolution shall not be used 
 41.22  to deny or delay a parent or guardian's right to a due process 
 41.23  hearing.  If the parent or guardian refuses efforts by the 
 41.24  district to conciliate the dispute with the school district, the 
 41.25  requirement of an opportunity for conciliation or other 
 41.26  alternative dispute resolution shall be deemed to be satisfied.  
 41.27  Notwithstanding other law, in any proceeding following a 
 41.28  conciliation conference, the school district must not offer a 
 41.29  conciliation conference memorandum into evidence, except for any 
 41.30  portions that describe the district's final proposed offer of 
 41.31  service.  Otherwise, with respect to forms of dispute 
 41.32  resolution, mediation, or conciliation, Minnesota Rule of 
 41.33  Evidence 408 applies. resolve the dispute through alternative 
 41.34  dispute resolution, the parent or guardian may later request an 
 41.35  alternative dispute resolution and a school district must 
 41.36  participate in at least one mediation session using the 
 42.1   mediation services of MNSEMS.  Any alternative dispute 
 42.2   resolution proceedings which take place between the parties will 
 42.3   be governed by the confidentiality requirements in rule 114.08 
 42.4   of the general rules of practice for the district courts.  The 
 42.5   department of children, families, and learning may reimburse the 
 42.6   districts or directly pay the costs of lay advocates, not to 
 42.7   exceed $150 per dispute, used in conjunction with alternative 
 42.8   dispute resolution.  The commissioner shall establish policies 
 42.9   for districts and provide training and resources designed to 
 42.10  encourage early identification of disputes and access to 
 42.11  mediation. 
 42.12     (d) The commissioner shall establish a mediation process to 
 42.13  assist parents, school districts, or other parties to resolve 
 42.14  disputes arising out of the identification, assessment, or 
 42.15  educational placement of children with a disability.  The 
 42.16  mediation process must be offered as an informal alternative to 
 42.17  the due process hearing provided under clause paragraph (e), but 
 42.18  must not be used to deny or postpone the opportunity of a parent 
 42.19  or guardian to obtain a due process hearing. 
 42.20     (e) Parents, guardians, and the district shall have an 
 42.21  opportunity to obtain an impartial due process hearing initiated 
 42.22  and conducted by and in the school district responsible for 
 42.23  assuring that an appropriate program is provided in accordance 
 42.24  with state board rules, if the parent or guardian continues to 
 42.25  object to:  
 42.26     (1) a proposed formal educational assessment or proposed 
 42.27  denial of a formal educational assessment of their child; 
 42.28     (2) the proposed placement of their child in, or transfer 
 42.29  of their child to a special education program; 
 42.30     (3) the proposed denial of placement of their child in a 
 42.31  special education program or the transfer of their child from a 
 42.32  special education program; 
 42.33     (4) the proposed provision or addition of special education 
 42.34  services for their child; or 
 42.35     (5) the proposed denial or removal of special education 
 42.36  services for their child. 
 43.1      Within five business days after the request for a hearing, 
 43.2   or as directed by the hearing officer, the objecting party shall 
 43.3   provide the other party with a brief written statement of 
 43.4   particulars of the objection, the reasons for the objection, and 
 43.5   the specific remedies sought.  The other party shall provide the 
 43.6   objecting party with a written response to the statement of 
 43.7   objections within five business days of receipt of the statement.
 43.8      The hearing shall take place before an impartial hearing 
 43.9   officer mutually agreed to by the school board and the parent or 
 43.10  guardian.  Within four business days of the receipt of the 
 43.11  request for the hearing, if the parties have not agreed on the 
 43.12  hearing officer, the school board shall request the commissioner 
 43.13  to appoint a hearing officer from a list maintained for the 
 43.14  purpose.  A retired judge, retired court referee, or retired 
 43.15  federal magistrate judge who is otherwise qualified under this 
 43.16  section and wishes to be a hearing officer, must be put on the 
 43.17  list.  The school board shall include with the request the name 
 43.18  of the person requesting the hearing, the name of the student, 
 43.19  the attorneys involved, if any, and the date the hearing request 
 43.20  was received.  The hearing officer shall not be a school board 
 43.21  member or employee of the school district where the child 
 43.22  resides or of the child's school district of residence, an 
 43.23  employee of any other public agency involved in the education or 
 43.24  care of the child, or any person with a personal or professional 
 43.25  interest which would conflict with the person's objectivity at 
 43.26  the hearing.  A person who otherwise qualifies as a hearing 
 43.27  officer is not an employee of the district solely because the 
 43.28  person is paid by the district to serve as a hearing 
 43.29  officer.  Any party to a hearing, except an expedited hearing 
 43.30  under federal law, may make and serve upon the opposing party 
 43.31  and the commissioner a notice to remove a hearing officer 
 43.32  appointed by the commissioner.  The notice shall be served and 
 43.33  filed within three business days after the party receives notice 
 43.34  of the appointment of the hearing officer by the commissioner, 
 43.35  but not later than the commencement of the hearing. 
 43.36     No such notice may be filed by a party against a hearing 
 44.1   officer who has presided at a motion or any other proceeding of 
 44.2   which the party had notice.  A hearing officer who has presided 
 44.3   at a motion or other proceeding may not be removed except upon 
 44.4   an affirmative showing of prejudice on the part of the hearing 
 44.5   officer.  
 44.6      After the party has once disqualified a hearing officer as 
 44.7   a matter of right, that party may disqualify the substitute 
 44.8   hearing officer only by making an affirmative showing of 
 44.9   prejudice or bias to the commissioner, or to the chief 
 44.10  administrative law judge if the hearing officer is an 
 44.11  administrative law judge. 
 44.12     Upon the filing of a notice to remove or if a party makes 
 44.13  an affirmative showing of prejudice against a substitute hearing 
 44.14  officer, the commissioner shall assign any other hearing officer 
 44.15  to hear the matter. 
 44.16     If the hearing officer requests an independent educational 
 44.17  assessment of a child, the cost of the assessment shall be at 
 44.18  district expense.  The proceedings shall be recorded and 
 44.19  preserved, at the expense of the school district, pending 
 44.20  ultimate disposition of the action. 
 44.21     (f) The decision of the hearing officer pursuant to clause 
 44.22  paragraph (e) shall be rendered not more than 45 calendar days 
 44.23  from the date of the receipt of the request for the hearing, 
 44.24  except that hearing officers are encouraged to accelerate the 
 44.25  timeline to 30 days for children birth through two whose needs 
 44.26  change rapidly and require quick resolution of complaints.  A 
 44.27  hearing officer may not grant specific extensions of time beyond 
 44.28  the 45-day period unless requested by either party for good 
 44.29  cause shown on the record.  The decision of the hearing officer 
 44.30  shall be binding on all parties unless appealed to the 
 44.31  commissioner by the parent; guardian; school board of the 
 44.32  district where the child resides pursuant to clause 
 44.33  (g) paragraph (h); and also in the case of children birth 
 44.34  through two, by the county board. 
 44.35     The local decision shall: 
 44.36     (1) be in writing; 
 45.1      (2) state the controlling facts upon which the decision is 
 45.2   made in sufficient detail to apprise the parties and the hearing 
 45.3   review officer of the basis and reason for the decision; and 
 45.4      (3) be based on the standards set forth in subdivision 3a 
 45.5   and the rules of the state board. 
 45.6      (g) The hearing officer may require the resident school 
 45.7   district to provide compensatory educational services to the 
 45.8   child if the hearing officer finds that the school district has 
 45.9   not offered or made available to the child a free appropriate 
 45.10  public education in the child's educational program and that the 
 45.11  child has suffered a loss of educational benefit.  Such services 
 45.12  shall take the form of direct and indirect special education and 
 45.13  related services designed to address any loss of educational 
 45.14  benefit that may have occurred.  The hearing officer's finding 
 45.15  shall be based on a present determination of whether the child 
 45.16  has suffered a loss of educational benefit. 
 45.17     (g) (h) Any local decision issued pursuant to clauses 
 45.18  paragraphs (e) and (f) may be appealed to the commissioner 
 45.19  within 30 calendar days of receipt of that written decision, by 
 45.20  the parent, guardian, or the school board of the district 
 45.21  responsible for assuring that an appropriate program is provided 
 45.22  in accordance with state board rules.  The appealing party shall 
 45.23  note the specific parts of the hearing decision being appealed. 
 45.24     If the decision is appealed, a written transcript of the 
 45.25  hearing shall be made by the school district and provided by the 
 45.26  district to the parties involved and the hearing review officer 
 45.27  within five calendar days of the filing of the appeal.  The 
 45.28  hearing review officer shall conduct an appellate review and 
 45.29  issue a final independent decision based on an impartial review 
 45.30  of the local decision and the entire record within 30 calendar 
 45.31  days after the filing of the appeal.  However, the hearing 
 45.32  review officer shall seek additional evidence if necessary and 
 45.33  may afford the parties an opportunity for written or oral 
 45.34  argument; provided any hearing held to seek additional evidence 
 45.35  shall be an impartial due process hearing but shall be deemed 
 45.36  not to be a contested case hearing for purposes of chapter 14.  
 46.1   The hearing review officer may grant specific extensions of time 
 46.2   beyond the 30-day period at the request of any party for good 
 46.3   cause shown on the record. 
 46.4      The final decision shall: 
 46.5      (1) be in writing; 
 46.6      (2) include findings and conclusions; and 
 46.7      (3) be based upon the standards set forth in subdivision 3a 
 46.8   and in the rules of the state board. 
 46.9      (h) (i) The decision of the hearing review officer shall be 
 46.10  final unless appealed by the parent or guardian or school board 
 46.11  to the Minnesota court of appeals or federal district court as 
 46.12  provided by federal law.  State judicial review shall be in 
 46.13  accordance with chapter 14.  
 46.14     (i) (j) The commissioner of children, families, and 
 46.15  learning shall select an individual who has the qualifications 
 46.16  enumerated in this paragraph to serve as the hearing review 
 46.17  officer: 
 46.18     (1) the individual must be knowledgeable and impartial; 
 46.19     (2) the individual must not have a personal interest in or 
 46.20  specific involvement with the student who is a party to the 
 46.21  hearing; 
 46.22     (3) the individual must not have been employed as an 
 46.23  administrator by the district that is a party to the hearing; 
 46.24     (4) the individual must not have been involved in the 
 46.25  selection of the administrators of the district that is a party 
 46.26  to the hearing; 
 46.27     (5) the individual must not have a personal, economic, or 
 46.28  professional interest in the outcome of the hearing other than 
 46.29  the proper administration of the federal and state laws, rules, 
 46.30  and policies; 
 46.31     (6) the individual must not have substantial involvement in 
 46.32  the development of a state or local policy or procedures that 
 46.33  are challenged in the appeal; 
 46.34     (7) the individual is not a current employee or board 
 46.35  member of a Minnesota public school district, education 
 46.36  district, intermediate unit or regional education agency, the 
 47.1   department of children, families, and learning, the state board 
 47.2   of education; and 
 47.3      (8) the individual is not a current employee or board 
 47.4   member of a disability advocacy organization or group.  
 47.5      (j) (k) In all appeals, the parent or guardian of the pupil 
 47.6   with a disability or the district that is a party to the hearing 
 47.7   may challenge the impartiality or competence of the proposed 
 47.8   hearing review officer by applying to the hearing review officer.
 47.9      (k) (l) Pending the completion of proceedings pursuant to 
 47.10  this subdivision, unless the district and the parent or guardian 
 47.11  of the child agree otherwise, the child shall remain in the 
 47.12  child's current educational placement and shall not be denied 
 47.13  initial admission to school. 
 47.14     (l) (m) The child's school district of residence, a 
 47.15  resident district, and providing district shall receive notice 
 47.16  of and may be a party to any hearings or appeals under this 
 47.17  subdivision. 
 47.18     (m) (n) A school district is not liable for harmless 
 47.19  technical violations of this subdivision or rules implementing 
 47.20  this subdivision if the school district can demonstrate on a 
 47.21  case-by-case basis that the violations did not harm the 
 47.22  student's educational progress or the parent or guardian's right 
 47.23  to notice, participation, or due process. 
 47.24     (n) (o) Within ten calendar days after appointment, the 
 47.25  hearing officer shall schedule and hold a prehearing 
 47.26  conference.  At that conference, or later, the hearing officer 
 47.27  may take any appropriate action that a court might take under 
 47.28  Rule 16 of Minnesota Rules of Civil Procedure including, but not 
 47.29  limited to, scheduling, jurisdiction, and listing witnesses 
 47.30  including expert witnesses. 
 47.31     (o) (p) A hearing officer or hearing review officer 
 47.32  appointed under this subdivision shall be deemed to be an 
 47.33  employee of the state under section 3.732 for the purposes of 
 47.34  section 3.736 only. 
 47.35     (p) (q) In order to be eligible for selection, hearing 
 47.36  officers and hearing review officers shall participate in 
 48.1   training and follow procedures as designated by the commissioner.
 48.2      (q) (r) The hearing officer may admit all evidence which 
 48.3   possesses probative value, including hearsay, if it is the type 
 48.4   of evidence on which reasonable, prudent persons are accustomed 
 48.5   to rely in the conduct of their serious affairs.  The hearing 
 48.6   officer shall give effect to the rules of privilege recognized 
 48.7   by law.  Evidence which is incompetent, irrelevant, immaterial, 
 48.8   or unduly repetitious shall be excluded. 
 48.9      Sec. 11.  Minnesota Statutes 1996, section 120.17, 
 48.10  subdivision 9, is amended to read: 
 48.11     Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 48.12  who is eligible for special instruction and services pursuant to 
 48.13  under this section shall be denied provision of this instruction 
 48.14  and service on a shared time basis consistent with section 
 48.15  124A.034, subdivision 2, because of attendance at attending a 
 48.16  nonpublic school defined in section 123.932, subdivision 3.  If 
 48.17  a resident pupil with a disability attends a nonpublic school 
 48.18  located within the district of residence, the district shall 
 48.19  provide necessary transportation for that pupil within the 
 48.20  district between the nonpublic school and the educational 
 48.21  facility where special instruction and services are provided on 
 48.22  a shared time basis.  If a resident pupil with a disability 
 48.23  attends a nonpublic school located in another district and if no 
 48.24  agreement exists pursuant to under section 124A.034, subdivision 
 48.25  1 or 1a, for the provision of providing special instruction and 
 48.26  services on a shared time basis to that pupil by the district of 
 48.27  attendance and where the special instruction and services are 
 48.28  provided within the district of residence, the district of 
 48.29  residence shall provide necessary transportation for that pupil 
 48.30  between the boundary of the district of residence and the 
 48.31  educational facility.  The district of residence may provide 
 48.32  necessary transportation for that pupil between its boundary and 
 48.33  the nonpublic school attended, but the nonpublic school shall 
 48.34  pay the cost of transportation provided outside the district 
 48.35  boundary. 
 48.36     Sec. 12.  Minnesota Statutes 1996, section 120.17, 
 49.1   subdivision 15, is amended to read: 
 49.2      Subd. 15.  [THIRD PARTY PAYMENT.] Nothing in this section 
 49.3   relieves an insurer or similar third party from an otherwise 
 49.4   valid obligation to pay, or changes the validity of an 
 49.5   obligation to pay, for services rendered to a child with a 
 49.6   disability, and the child's family.  A school district may pay 
 49.7   or reimburse copayments, coinsurance, deductibles, and other 
 49.8   enrollee cost-sharing amounts, on behalf of the student or 
 49.9   family, in connection with health and related services provided 
 49.10  under an individual educational plan.  District payment of 
 49.11  enrollee cost sharing amounts shall serve to meet the 
 49.12  requirement that the health and related services be provided 
 49.13  free to the child and the child's family.  The district shall 
 49.14  obtain informed consent consistent with section 13.05, 
 49.15  subdivision 4, paragraph (d), and section 256B.77, subdivision 
 49.16  2, paragraph (p), to bill health plans for each type of covered 
 49.17  service. 
 49.18     Sec. 13.  Minnesota Statutes 1996, section 120.1701, 
 49.19  subdivision 2, is amended to read: 
 49.20     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 49.21  the following terms have the meaning given them.  
 49.22     (a) "Coordinate" means to provide ready access to a 
 49.23  community's services and resources to meet child and family 
 49.24  needs.  
 49.25     (b) "Core early intervention services" means services that 
 49.26  are available at no cost to children and families.  These 
 49.27  services include: 
 49.28     (1) identification and referral; 
 49.29     (2) screening; 
 49.30     (3) evaluation; 
 49.31     (4) assessment; 
 49.32     (5) service coordination; 
 49.33     (6) special education and related services provided under 
 49.34  section 120.17, subdivision 3a, and United States Code, title 
 49.35  20, section 1401; and 
 49.36     (7) protection of parent and child rights by means of 
 50.1   procedural safeguards. 
 50.2      (c) "County board" means a county board established under 
 50.3   chapter 375. 
 50.4      (d) "Early intervention record" means any personally 
 50.5   identifiable information about a child or the child's family 
 50.6   that is generated by the early intervention system, and that 
 50.7   pertains to evaluation and assessment, development of an 
 50.8   individualized family service plan, and the delivery of early 
 50.9   intervention services. 
 50.10     (e) "Early intervention services" means services provided 
 50.11  in conformity with an individualized family service plan that 
 50.12  are designed to meet the special developmental needs of a child 
 50.13  eligible under Code of Federal Regulations, title 34, part 303, 
 50.14  and the needs of the child's family related to enhancing the 
 50.15  child's development and that are selected in collaboration with 
 50.16  the parent.  These services include core early intervention 
 50.17  services and additional early intervention services listed in 
 50.18  subdivision 4 and services defined in Code of Federal 
 50.19  Regulations, title 34, section 303, et seq. 
 50.20     (f) "Early intervention system" means the total effort in 
 50.21  the state to meet the needs of eligible children and their 
 50.22  families, including, but not limited to: 
 50.23     (1) any public agency in the state that receives funds 
 50.24  under the Individuals with Disabilities Education Act, United 
 50.25  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 50.26  Number 102-119); 
 50.27     (2) other state and local agencies administering programs 
 50.28  involved in the provision of early intervention services, 
 50.29  including, but not limited to: 
 50.30     (i) the Maternal and Child Health program under title V of 
 50.31  the Social Security Act, United States Code, title 42, sections 
 50.32  701 to 709; 
 50.33     (ii) the Individuals with Disabilities Education Act, 
 50.34  United States Code, title 20, sections 1411 to 1420 (Part B); 
 50.35     (iii) medical assistance under the Social Security Act, 
 50.36  United States Code, title 42, section 1396 et seq.; 
 51.1      (iv) the Developmental Disabilities Assistance and Bill of 
 51.2   Rights Act, United States Code, title 42, sections 6021 to 6030 
 51.3   (Part B); and 
 51.4      (v) the Head Start Act, United States Code, title 42, 
 51.5   sections 9831 to 9852; and 
 51.6      (3) services provided by private groups or third-party 
 51.7   payers in conformity with an individualized family service plan. 
 51.8      (g) "Eligibility for Part H" means eligibility for early 
 51.9   childhood special education under section 120.03 and Minnesota 
 51.10  Rules, part 3525.2335, subpart 1, items A and B. 
 51.11     (h) "Facilitate payment" means helping families access 
 51.12  necessary public or private assistance that provides payment for 
 51.13  services required to meet needs identified in a service plan, 
 51.14  individual education plan (IEP), individual service plan (ISP), 
 51.15  or individualized family service plan (IFSP), according to time 
 51.16  frames required by the plan.  This may also include activities 
 51.17  to collect fees for services provided on a sliding fee basis, 
 51.18  where permitted by state law. 
 51.19     (i) "Individualized family service plan" or "IFSP" means a 
 51.20  written plan for providing services to a child and the child's 
 51.21  family.  
 51.22     (j) "Interagency child find systems" means activities 
 51.23  developed on an interagency basis with the involvement of 
 51.24  interagency early intervention committees and other relevant 
 51.25  community groups to actively seek out, identify, and refer 
 51.26  infants and young children with, or at risk of, disabilities, 
 51.27  and their families. 
 51.28     (k) "Local primary agency" means the agency designated 
 51.29  jointly by the school and county board under subdivision 4. 
 51.30     (l) "Natural environments" means the child's home and 
 51.31  community settings in which children without disabilities 
 51.32  participate. 
 51.33     (l) (m) "Parent" means the biological parent with parental 
 51.34  rights, adoptive parent, legal guardian, or surrogate parent. 
 51.35     (m) (n) "Part H state plan" means the annual state plan 
 51.36  application approved by the federal government under the 
 52.1   Individuals with Disabilities Education Act, United States Code, 
 52.2   title 20, section 1471 et seq. (Part H, Public Law Number 
 52.3   102-119). 
 52.4      (n) (o) "Pay for" means using federal, state, local, and 
 52.5   private dollars available for early intervention services. 
 52.6      (o) (p) "Respite" means short-term, temporary care provided 
 52.7   to a child with a disability due to the temporary absence or 
 52.8   need for relief of the family member or members or primary 
 52.9   caregiver, normally providing the care. 
 52.10     (p) (q) "State lead agency" means the state agency 
 52.11  receiving federal funds under the Individuals with Disabilities 
 52.12  Education Act, United States Code, title 20, section 1471 et 
 52.13  seq. (Part H, Public Law Number 102-119). 
 52.14     (q) (r) "Surrogate parent" means a person appointed by the 
 52.15  local education agency to assure that the rights of the child to 
 52.16  early intervention services are protected.  A person cannot be a 
 52.17  surrogate parent to a child for whom the person provides early 
 52.18  intervention services. 
 52.19     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 52.20  120.1701, subdivision 3, is amended to read: 
 52.21     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 52.22  interagency coordinating council of at least 17, but not more 
 52.23  than 25 members is established, in compliance with Public Law 
 52.24  Number 102-119, section 682.  The members shall be appointed by 
 52.25  the governor.  Council members shall elect the council chair.  
 52.26  The representative of the commissioner of children, families, 
 52.27  and learning may not serve as the chair.  The council shall be 
 52.28  composed of at least five parents, including persons of color, 
 52.29  of children with disabilities under age 12, including at least 
 52.30  three parents of a child with a disability under age seven, five 
 52.31  representatives of public or private providers of services for 
 52.32  children with disabilities under age five, including a special 
 52.33  education director, county social service director, local Head 
 52.34  Start director, and a community health services or public health 
 52.35  nursing administrator, one member of the senate, one member of 
 52.36  the house of representatives, one representative of teacher 
 53.1   preparation programs in early childhood-special education or 
 53.2   other preparation programs in early childhood intervention, at 
 53.3   least one representative of advocacy organizations for children 
 53.4   with disabilities under age five, one physician who cares for 
 53.5   young children with special health care needs, one 
 53.6   representative each from the commissioners of commerce, 
 53.7   children, families, and learning, health, human services, and 
 53.8   economic security a representative from the state agency 
 53.9   responsible for child care, and a representative from Indian 
 53.10  health services or a tribal council.  Section 15.059, 
 53.11  subdivisions 2 to 5, apply to the council.  The council shall 
 53.12  meet at least quarterly.  
 53.13     The council shall address methods of implementing the state 
 53.14  policy of developing and implementing comprehensive, 
 53.15  coordinated, multidisciplinary interagency programs of early 
 53.16  intervention services for children with disabilities and their 
 53.17  families. 
 53.18     The duties of the council include recommending policies to 
 53.19  ensure a comprehensive and coordinated system of all state and 
 53.20  local agency services for children under age five with 
 53.21  disabilities and their families.  The policies must address how 
 53.22  to incorporate each agency's services into a unified state and 
 53.23  local system of multidisciplinary assessment practices, 
 53.24  individual intervention plans, comprehensive systems to find 
 53.25  children in need of services, methods to improve public 
 53.26  awareness, and assistance in determining the role of interagency 
 53.27  early intervention committees.  
 53.28     Each year by June 1, the council shall recommend to the 
 53.29  governor and the commissioners of children, families, and 
 53.30  learning, health, human services, commerce, and economic 
 53.31  security policies for a comprehensive and coordinated system. 
 53.32     Notwithstanding any other law to the contrary, the state 
 53.33  interagency coordinating council shall expire on June 30, 2001. 
 53.34     Sec. 15.  Minnesota Statutes 1996, section 120.1701, 
 53.35  subdivision 5, is amended to read: 
 53.36     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 54.1   A school district, group of districts, or special education 
 54.2   cooperative, in cooperation with the health and human service 
 54.3   agencies located in the county or counties in which the district 
 54.4   or cooperative is located, shall establish an interagency early 
 54.5   intervention committee for children with disabilities under age 
 54.6   five and their families.  Committees shall include 
 54.7   representatives of local and regional health, education, and 
 54.8   county human service agencies; county boards; school boards; 
 54.9   early childhood family education programs; parents of young 
 54.10  children with disabilities under age 12; current service 
 54.11  providers; and may also include representatives from other 
 54.12  private or public agencies.  The committee shall elect a chair 
 54.13  from among its members and shall meet at least quarterly. 
 54.14     (b) The committee shall develop and implement interagency 
 54.15  policies and procedures concerning the following ongoing duties: 
 54.16     (1) develop public awareness systems designed to inform 
 54.17  potential recipient families of available programs and services; 
 54.18     (2) implement interagency child find systems designed to 
 54.19  actively seek out, identify, and refer infants and young 
 54.20  children with, or at risk of, disabilities and their families; 
 54.21     (3) establish and evaluate the identification, referral, 
 54.22  child and family assessment systems, procedural safeguard 
 54.23  process, and community learning systems to recommend, where 
 54.24  necessary, alterations and improvements; 
 54.25     (4) assure the development of individualized family service 
 54.26  plans for all eligible infants and toddlers with disabilities 
 54.27  from birth through age two, and their families, and individual 
 54.28  education plans and individual service plans when necessary to 
 54.29  appropriately serve children with disabilities, age three and 
 54.30  older, and their families and recommend assignment of financial 
 54.31  responsibilities to the appropriate agencies.  Agencies are 
 54.32  encouraged to develop individual family service plans for 
 54.33  children with disabilities, age three and older; 
 54.34     (5) implement a process for assuring that services involve 
 54.35  cooperating agencies at all steps leading to individualized 
 54.36  programs; 
 55.1      (6) facilitate the development of a transitional plan if a 
 55.2   service provider is not recommended to continue to provide 
 55.3   services; 
 55.4      (7) identify the current services and funding being 
 55.5   provided within the community for children with disabilities 
 55.6   under age five and their families; 
 55.7      (8) develop a plan for the allocation and expenditure of 
 55.8   additional state and federal early intervention funds under 
 55.9   United States Code, title 20, section 1471 et seq. (Part H, 
 55.10  Public Law Number 102-119) and United States Code, title 20, 
 55.11  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 55.12     (9) develop a policy that is consistent with section 13.05, 
 55.13  subdivision 9, and federal law to enable a member of an 
 55.14  interagency early intervention committee to allow another member 
 55.15  access to data classified as not public. 
 55.16     (c) The local committee shall also: 
 55.17     (1) participate in needs assessments and program planning 
 55.18  activities conducted by local social service, health and 
 55.19  education agencies for young children with disabilities and 
 55.20  their families; 
 55.21     (2) review and comment on the early intervention section of 
 55.22  the total special education system for the district, the county 
 55.23  social service plan, the section or sections of the community 
 55.24  health services plan that address needs of and service 
 55.25  activities targeted to children with special health care needs, 
 55.26  and the section of the maternal and child health special project 
 55.27  grants that address needs of and service activities targeted to 
 55.28  children with chronic illness and disabilities; and 
 55.29     (3) prepare a yearly summary on the progress of the 
 55.30  community in serving young children with disabilities, and their 
 55.31  families, including the expenditure of funds, the identification 
 55.32  of unmet service needs identified on the individual family 
 55.33  services plan and other individualized plans, and local, state, 
 55.34  and federal policies impeding the implementation of this section.
 55.35     (d) The summary must be organized following a format 
 55.36  prescribed by the commissioner of the state lead agency and must 
 56.1   be submitted to each of the local agencies and to the state 
 56.2   interagency coordinating council by October 1 of each year. 
 56.3      The departments of children, families, and learning, 
 56.4   health, and human services must provide assistance to the local 
 56.5   agencies in developing cooperative plans for providing services. 
 56.6      Sec. 16.  Minnesota Statutes 1996, section 120.1701, 
 56.7   subdivision 11, is amended to read: 
 56.8      Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
 56.9   1995 and 1996, The state lead agency shall establish maintain a 
 56.10  reserve account from federal sources to pay for services in 
 56.11  dispute or to pay for early intervention services when local 
 56.12  agencies have exhausted all other public and private funds 
 56.13  available for Part H eligible children. 
 56.14     (b) The lead agency shall report to the legislature by 
 56.15  January 1, 1996, regarding county board expenditures for early 
 56.16  intervention services and the continuing need and funding of the 
 56.17  reserve account.  
 56.18     Sec. 17.  Minnesota Statutes 1996, section 120.1701, 
 56.19  subdivision 17, is amended to read: 
 56.20     Subd. 17.  [MEDIATION PROCEDURE.] The commissioner, or the 
 56.21  commissioner's designee, of the state lead agency shall use 
 56.22  federal funds to provide mediation for the activities in 
 56.23  paragraphs (a) and (b). 
 56.24     (a) A parent may resolve a dispute regarding issues in 
 56.25  subdivision 16, paragraph (b), clause (5), through mediation.  
 56.26  If the parent chooses mediation, all public agencies involved in 
 56.27  the dispute shall participate in the mediation process.  The 
 56.28  parent and the public agencies must complete the mediation 
 56.29  process within 20 30 calendar days of the date the 
 56.30  commissioner office of dispute resolution receives a parent's 
 56.31  written request for mediation.  The mediation process may not be 
 56.32  used to delay a parent's right to a due process hearing.  The 
 56.33  resolution of the mediation is not binding on any party. 
 56.34     (b) The local primary agency may request mediation on 
 56.35  behalf of involved agencies when there are disputes between 
 56.36  agencies regarding responsibilities to coordinate, provide, pay 
 57.1   for, or facilitate payment for early intervention services. 
 57.2      Sec. 18.  Minnesota Statutes 1996, section 120.173, 
 57.3   subdivision 1, is amended to read: 
 57.4      Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
 57.5   of children, families, and learning may approve applications 
 57.6   from school districts to provide prevention services as an 
 57.7   alternative to special education and other compensatory programs 
 57.8   during three school years.  A district with an approved program 
 57.9   may provide instruction and services in a regular education 
 57.10  classroom, or an area learning center, to eligible pupils.  
 57.11  Pupils eligible to participate in the program are low-performing 
 57.12  pupils who, based on documented experience, the professional 
 57.13  judgment of a classroom teacher, or a team of licensed 
 57.14  professionals, would eventually qualify for special education 
 57.15  instruction or related services under section 120.17 if the 
 57.16  intervention services authorized by this section were 
 57.17  unavailable.  Pupils may be provided services during extended 
 57.18  school days and throughout the entire year and through the 
 57.19  assurance of mastery program under section 124.3111. 
 57.20     Sec. 19.  Minnesota Statutes 1996, section 120.173, 
 57.21  subdivision 6, is amended to read: 
 57.22     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 57.23  program must be individually evaluated according to the pupil's 
 57.24  actual abilities and needs.  A pupil who is eligible for 
 57.25  services under section 120.17 is entitled to procedural 
 57.26  protections provided under Public Law Number 94-142 United 
 57.27  States Code, title 20, section 33 in any matter that affects the 
 57.28  identification, evaluation, placement, or change in placement of 
 57.29  a pupil.  The district must ensure the protection of a pupil's 
 57.30  civil rights, provide equal educational opportunities, and 
 57.31  prohibit discrimination.  Failure to comply with this 
 57.32  subdivision will at least cause a district to become ineligible 
 57.33  to participate in the program.  Notwithstanding rules of the 
 57.34  state board of education, a pupil's rights under this section 
 57.35  cannot be waived by the state board. 
 57.36     Sec. 20.  Minnesota Statutes 1996, section 123.935, 
 58.1   subdivision 1, is amended to read: 
 58.2      Subdivision 1.  [PROVIDED SERVICES.] The state board of 
 58.3   education shall promulgate rules under the provisions of chapter 
 58.4   14 requiring each school district or other intermediary service 
 58.5   area:  (a) to provide each year upon formal request by a 
 58.6   specific date by or on behalf of a nonpublic school pupil 
 58.7   enrolled in a nonpublic school located in that district or area, 
 58.8   the same specific health services as are provided for public 
 58.9   school pupils by the district where the nonpublic school is 
 58.10  located; and (b) to provide each year upon formal request by a 
 58.11  specific date by or on behalf of a nonpublic school secondary 
 58.12  pupil enrolled in a nonpublic school located in that district or 
 58.13  area, the same specific guidance and counseling services as are 
 58.14  provided for public school secondary pupils by the district 
 58.15  where the nonpublic school is located.  The district where the 
 58.16  nonpublic school is located shall provide the necessary 
 58.17  transportation within the district boundaries between the 
 58.18  nonpublic school and a public school or neutral site for 
 58.19  nonpublic school pupils who are provided pupil support services 
 58.20  pursuant to under this section if the district elects to provide 
 58.21  pupil support services at a site other than the nonpublic school.
 58.22  Each request for pupil support services shall set forth the 
 58.23  guidance and counseling or health services requested by or on 
 58.24  behalf of all eligible nonpublic school pupils enrolled in a 
 58.25  given nonpublic school.  No district or intermediary service 
 58.26  area shall expend an amount for these pupil support services 
 58.27  which exceeds the amount allotted to it under this section. 
 58.28     Sec. 21.  Minnesota Statutes 1996, section 123.935, 
 58.29  subdivision 2, is amended to read: 
 58.30     Subd. 2.  [LOCATION OF SERVICES.] Health and guidance and 
 58.31  counseling services may be provided to nonpublic school 
 58.32  pupils pursuant to under this section at a public school, a 
 58.33  neutral site, the nonpublic school or any other suitable 
 58.34  location.  Guidance and counseling services may be provided to 
 58.35  nonpublic school pupils pursuant to this section only at a 
 58.36  public school or a neutral site.  District or intermediary 
 59.1   service area personnel and representatives of the nonpublic 
 59.2   school pupils receiving pupil support services shall hold an 
 59.3   annual consultation regarding the type of services, provider of 
 59.4   services, and the location of the provision of these services.  
 59.5   The district board or intermediary service area governing board 
 59.6   shall make the final decision on the location of the provision 
 59.7   of these services. 
 59.8      Sec. 22.  Minnesota Statutes 1996, section 124.17, 
 59.9   subdivision 2, is amended to read: 
 59.10     Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
 59.11  in grades kindergarten through 12 and for prekindergarten pupils 
 59.12  with disabilities shall mean the number of pupils on the current 
 59.13  roll of the school, counted from the date of entry until 
 59.14  withdrawal.  The date of withdrawal shall mean the day the pupil 
 59.15  permanently leaves the school or the date it is officially known 
 59.16  that the pupil has left or has been legally excused.  However, a 
 59.17  pupil, regardless of age, who has been absent from school for 15 
 59.18  consecutive school days during the regular school year or for 
 59.19  five consecutive school days during summer school or 
 59.20  intersession classes of flexible school year programs without 
 59.21  receiving instruction in the home or hospital shall be dropped 
 59.22  from the roll and classified as withdrawn.  Nothing in this 
 59.23  section shall be construed as waiving the compulsory attendance 
 59.24  provisions cited in section 120.101.  Average daily membership 
 59.25  shall equal the sum for all pupils of the number of days of the 
 59.26  school year each pupil is enrolled in the district's schools 
 59.27  divided by the number of days the schools are in session.  Days 
 59.28  of summer school or intersession classes of flexible school year 
 59.29  programs shall only be included in the computation of membership 
 59.30  for pupils with a disability not appropriately served at level 
 59.31  4, 5, or 6 of the continuum of placement model described in 
 59.32  Minnesota Rules, part 3525.0200 primarily in the regular 
 59.33  classroom. 
 59.34     Sec. 23.  Minnesota Statutes 1996, section 124.26, 
 59.35  subdivision 1c, is amended to read: 
 59.36     Subd. 1c.  [PROGRAM APPROVAL.] (a) To receive aid under 
 60.1   this section, a district, a consortium of districts, or a 
 60.2   private nonprofit organization, an area learning center, or an 
 60.3   alternative program approved by the commissioner must submit an 
 60.4   application by June 1 describing the program, on a form provided 
 60.5   by the department.  The program must be approved by the 
 60.6   commissioner according to the following criteria:  
 60.7      (1) how the needs of different levels of learning will be 
 60.8   met; 
 60.9      (2) for continuing programs, an evaluation of results; 
 60.10     (3) anticipated number and education level of participants; 
 60.11     (4) coordination with other resources and services; 
 60.12     (5) participation in a consortium, if any, and money 
 60.13  available from other participants; 
 60.14     (6) management and program design; 
 60.15     (7) volunteer training and use of volunteers; 
 60.16     (8) staff development services; 
 60.17     (9) program sites and schedules; and 
 60.18     (10) program expenditures that qualify for aid.  
 60.19     (b) The commissioner may grant adult basic education funds 
 60.20  to a private, nonprofit organization to provide services that 
 60.21  are not offered by a district or that are supplemental to a 
 60.22  district's program.  The program provided under this provision 
 60.23  must be approved and funded according to the same criteria used 
 60.24  for district programs. 
 60.25     (c) Adult basic education programs may be approved under 
 60.26  this subdivision for up to five years.  Five-year program 
 60.27  approval shall be granted to an applicant who has demonstrated 
 60.28  the capacity to: 
 60.29     (1) offer comprehensive learning opportunities and support 
 60.30  service choices appropriate for and accessible to adults at all 
 60.31  basic skill need levels; 
 60.32     (2) provide a participatory and experiential learning 
 60.33  approach based on the strengths, interests, and needs of each 
 60.34  adult, that enables adults with basic skill needs to: 
 60.35     (i) identify, plan for, and evaluate their own progress 
 60.36  toward achieving their defined educational and occupational 
 61.1   goals; 
 61.2      (ii) master the basic academic reading, writing, and 
 61.3   computational skills, as well as the problem-solving, decision 
 61.4   making, interpersonal effectiveness, and other life and learning 
 61.5   skills they need to function effectively in a changing society; 
 61.6      (iii) locate and be able to use the health, governmental, 
 61.7   and social services and resources they need to improve their own 
 61.8   and their families' lives; and 
 61.9      (iv) continue their education, if they desire, to at least 
 61.10  the level of secondary school completion, with the ability to 
 61.11  secure and benefit from continuing education that will enable 
 61.12  them to become more employable, productive, and responsible 
 61.13  citizens; 
 61.14     (3) plan, coordinate, and develop cooperative agreements 
 61.15  with community resources to address the needs that the adults 
 61.16  have for support services, such as transportation, flexible 
 61.17  course scheduling, convenient class locations, and child care; 
 61.18     (4) collaborate with business, industry, labor unions, and 
 61.19  employment-training agencies, as well as with family and 
 61.20  occupational education providers, to arrange for resources and 
 61.21  services through which adults can attain economic 
 61.22  self-sufficiency; 
 61.23     (5) provide sensitive and well trained adult education 
 61.24  personnel who participate in local, regional, and statewide 
 61.25  adult basic education staff development events to master 
 61.26  effective adult learning and teaching techniques; 
 61.27     (6) participate in regional adult basic education peer 
 61.28  program reviews and evaluations; and 
 61.29     (7) submit accurate and timely performance and fiscal 
 61.30  reports. 
 61.31     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 61.32  124.26, subdivision 2, is amended to read: 
 61.33     Subd. 2.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
 61.34  districts, or private nonprofit organization, area learning 
 61.35  center, or alternative program approved by the commissioner 
 61.36  providing adult basic education programs shall establish and 
 62.1   maintain accounts separate from all other district accounts for 
 62.2   the receipt and disbursement of all funds related to these 
 62.3   programs.  All revenue received pursuant to this section shall 
 62.4   be utilized solely for the purposes of adult basic education 
 62.5   programs.  In no case shall federal and state aid plus levy 
 62.6   equal more than 100 percent of the actual cost of providing 
 62.7   these programs. 
 62.8      Sec. 25.  Minnesota Statutes 1996, section 124.2613, as 
 62.9   amended by Laws 1997, First Special Session chapter 4, article 
 62.10  2, sections 5, 6, and 7, is amended to read: 
 62.11     124.2613 [FIRST-GRADE PREPAREDNESS SUPPLEMENTAL EARLY 
 62.12  EDUCATION PROGRAM.] 
 62.13     Subdivision 1.  [PURPOSE.] The purposes of the first-grade 
 62.14  preparedness supplemental early education program are to ensure 
 62.15  that every child has the opportunity before first grade to 
 62.16  develop the skills and abilities necessary to read and succeed 
 62.17  in school and to reduce the underlying causes that create a need 
 62.18  for compensatory revenue. 
 62.19     Subd. 2.  [QUALIFYING DISTRICT.] A school district may 
 62.20  receive first-grade preparedness supplemental early education 
 62.21  program revenue for qualifying school sites if, consistent with 
 62.22  subdivision 5, the school board approves a resolution requiring 
 62.23  the district to provide services to all children located in a 
 62.24  qualifying school site attendance area. 
 62.25     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 62.26  shall rank all school sites with kindergarten programs that do 
 62.27  not exclusively serve students under section 120.17.  The 
 62.28  ranking must be from highest to lowest based on the site's free 
 62.29  and reduced lunch count as a percent of the fall enrollment 
 62.30  using the preceding October 1 enrollment data.  Once a school 
 62.31  site is calculated to be eligible, it remains eligible for the 
 62.32  duration of the pilot program.  For each school site, the 
 62.33  percentage used to calculate the ranking must be the greater of 
 62.34  (1) the percent of the fall kindergarten enrollment receiving 
 62.35  free and reduced lunch, or (2) the percent of the total fall 
 62.36  enrollment receiving free and reduced lunch.  The list of ranked 
 63.1   sites must be separated into the following geographic areas:  
 63.2   Minneapolis district, St. Paul district, suburban Twin Cities 
 63.3   districts in the seven-county metropolitan area, and school 
 63.4   districts in greater Minnesota. 
 63.5      (b) The commissioner shall establish a process and 
 63.6   timelines to qualify school sites for the next school year.  
 63.7   School sites must be qualified in each geographic area from the 
 63.8   list of ranked sites until the estimated revenue available for 
 63.9   this program has been allocated.  The total estimated revenue 
 63.10  must be distributed to qualified school sites in each geographic 
 63.11  area as follows:  25 percent for Minneapolis sites, 25 percent 
 63.12  for St. Paul sites, 25 percent for suburban Twin Cities sites, 
 63.13  and 25 percent for greater Minnesota. 
 63.14     Subd. 4.  [PROGRAM.] A qualifying school site must develop 
 63.15  its first-grade preparedness supplemental early education 
 63.16  program in collaboration with other providers of school 
 63.17  readiness and child development services.  A school site must 
 63.18  offer a full-day kindergarten program to participating children 
 63.19  who are five years of age or older for the full school day every 
 63.20  day, a program for participating children who are four years 
 63.21  old, or a combination of both.  The program may offer as an 
 63.22  option to families home visits and other practices as 
 63.23  appropriate, and may provide such services with the consent of 
 63.24  the parent or guardian.  Program providers must ensure that the 
 63.25  program supplements existing school readiness and child 
 63.26  development programs and complements the services provided with 
 63.27  compensatory revenue.  Where possible, individuals receiving 
 63.28  assistance under a family assistance plan can meet the work 
 63.29  activity requirement of the plan by participating in 
 63.30  a first-grade preparedness supplemental early education program 
 63.31  as a volunteer. 
 63.32     Subd. 5.  [EXTENDED DAY REQUIREMENTS.] The board of a 
 63.33  qualifying school district must develop and approve a plan to 
 63.34  provide extended day services to serve as many children as 
 63.35  possible.  To accept children whose families participate in 
 63.36  child care assistance programs under section 119B.03 or 119B.05, 
 64.1   and to meet the requirements of section 245A.03, subdivision 2, 
 64.2   the board must formally approve the first-grade preparedness 
 64.3   program.  All revenue received under subdivision 6 must be 
 64.4   allocated to the qualifying school sites within the district. 
 64.5      Subd. 6.  [PREPAREDNESS SUPPLEMENTAL EARLY EDUCATION 
 64.6   PROGRAM REVENUE.] (a) A qualifying school district is eligible 
 64.7   for first-grade preparedness supplemental early education 
 64.8   program revenue equal to the basic formula allowance for that 
 64.9   year times the number of children five years of age or older 
 64.10  enrolled in a kindergarten program at the site on October 1 of 
 64.11  the previous year times .53. 
 64.12     (b) This revenue must supplement and not replace 
 64.13  compensatory revenue that the district uses for the same or 
 64.14  similar purposes under chapter 124A. 
 64.15     (c) A pupil enrolled in the first grade preparedness 
 64.16  supplemental early education program at a qualifying school site 
 64.17  is eligible for transportation under section 123.39, subdivision 
 64.18  1.  
 64.19     (d) First grade preparedness Supplemental early education 
 64.20  program revenue paid to a charter school for which a school 
 64.21  district is providing transportation according to section 
 64.22  120.064, subdivision 15, shall be decreased by an amount equal 
 64.23  to the product of $170 times the pupil units calculated 
 64.24  according to paragraph (a).  This amount shall be paid to the 
 64.25  school district for transportation costs.  
 64.26     Subd. 7.  [EVALUATION.] The commissioner of children, 
 64.27  families, and learning, in consultation with representatives of 
 64.28  the state board of teaching, early childhood teachers, 
 64.29  elementary school classroom teachers, and teacher educators, 
 64.30  shall develop an evaluation for qualifying school sites to use 
 64.31  in documenting results.  The evaluation must use empirical and 
 64.32  qualitative methods to gather information on the following:  
 64.33  progress towards ensuring that every child entering the first 
 64.34  grade has the knowledge and skills necessary to succeed in 
 64.35  school; student readiness for first grade; an assessment of 
 64.36  enrolling students by their teacher; and measures of parental 
 65.1   satisfaction and parental involvement.  The commissioner shall 
 65.2   assist a school site with its evaluation at the request of the 
 65.3   site. 
 65.4      Subd. 8.  [EXPIRATION.] This section applies for fiscal 
 65.5   years 1997, 1998, and 1999, and expires June 30, 1999. 
 65.6      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 65.7   124.3111, subdivision 2, is amended to read: 
 65.8      Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 65.9   services through an assurance of mastery program if the pupil 
 65.10  has not demonstrated progress toward mastering the required 
 65.11  graduation standards, after receiving instruction that was 
 65.12  designed to enable the pupil to make progress toward mastering 
 65.13  the required graduation standards in a regular classroom 
 65.14  setting.  A pupil also is eligible to receive services through 
 65.15  an assurance of mastery program if the pupil, based on the 
 65.16  professional judgment of a classroom teacher or a team of 
 65.17  licensed professionals, demonstrates a need for alternative 
 65.18  instructional strategies or interventions.  To determine pupil 
 65.19  eligibility, a district must use a process adopted by the school 
 65.20  board to review curriculum and instruction, for the subjects and 
 65.21  at the grade level at which the district uses the revenue. 
 65.22     Sec. 27.  Minnesota Statutes 1996, section 124.32, is 
 65.23  amended by adding a subdivision to read: 
 65.24     Subd. 13.  [AID FOR LITIGATION COSTS.] (a) For fiscal years 
 65.25  1999 and later, school districts shall receive aid based on 70 
 65.26  percent of the cost associated with due process hearings 
 65.27  incurred under section 120.17, subdivision 3b, paragraphs (e), 
 65.28  (h), and (i), including hearing officer fees, court reporter 
 65.29  fees, expert witness fees, mileage costs, transcript costs, 
 65.30  costs of outside evaluations ordered by hearing officers, rental 
 65.31  of hearing rooms, but not including district legal or attorney 
 65.32  fees. 
 65.33     (b) In order to receive aid under this subdivision, school 
 65.34  districts shall submit to the commissioner at the end of each 
 65.35  school year, costs for fees and other expenses described in 
 65.36  paragraph (a).  Aid under this section for each school district 
 66.1   is based on costs submitted from the previous school year.  A 
 66.2   school district's aid under this section may not exceed $10 per 
 66.3   fund balance pupil unit for the year in which the aid is 
 66.4   received. 
 66.5      Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 66.6   124.3201, subdivision 4, is amended to read: 
 66.7      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 66.8   state total special education revenue for fiscal year 1998 
 66.9   equals $358,542,000.  The state total special education revenue 
 66.10  for fiscal year 1999 equals $435,322,000 $436,023,000.  The 
 66.11  state total special education revenue for later fiscal years 
 66.12  equals:  
 66.13     (1) the state total special education revenue for the 
 66.14  preceding fiscal year; times 
 66.15     (2) the program growth factor; times 
 66.16     (3) the ratio of the state total average daily membership 
 66.17  for the current fiscal year to the state total average daily 
 66.18  membership for the preceding fiscal year. 
 66.19     Sec. 29.  Minnesota Statutes 1996, section 124A.034, 
 66.20  subdivision 2, is amended to read: 
 66.21     Subd. 2.  [LOCATION OF SERVICES.] (a) Public school 
 66.22  programs that provide instruction in core curriculum may be 
 66.23  provided to shared time pupils only at a public school building; 
 66.24  provided, however, that special instruction and services for 
 66.25  children with a disability required pursuant to section 120.17 
 66.26  may also be provided at a neutral site as defined in section 
 66.27  123.932, public school programs, excluding programs that provide 
 66.28  instruction in core curriculum, may be provided to shared time 
 66.29  pupils at a public school building, a neutral site, the 
 66.30  nonpublic school, or any other suitable location.  Guidance and 
 66.31  counseling and diagnostic and health services required pursuant 
 66.32  to under section 120.17 may also be provided at a nonpublic 
 66.33  school building.  As used in this subdivision, "diagnostic 
 66.34  services" means speech, hearing, vision, psychological, medical 
 66.35  and dental diagnostic services and "health services" means 
 66.36  physician, nursing or optometric services provided to pupils in 
 67.1   the field of physical and mental health.  
 67.2      (b) For those children with a disability under section 
 67.3   120.17 who attend nonpublic school and for whom a free and 
 67.4   appropriate education is available at a public school, a school 
 67.5   district may provide special instruction and services at the 
 67.6   nonpublic school building only to the extent required under the 
 67.7   Individuals with Disabilities Education Act, Public Law Number 
 67.8   105-17, as amended.  A school district may provide special 
 67.9   instruction and services for such children at a neutral site as 
 67.10  defined in section 123.932, subdivision 9. 
 67.11     Sec. 30.  Minnesota Statutes 1996, section 124A.036, 
 67.12  subdivision 1a, is amended to read: 
 67.13     Subd. 1a.  [REPORTING; REVENUE FOR HOMELESS.] For all 
 67.14  school purposes, unless otherwise specifically provided by law, 
 67.15  a homeless pupil must be considered is a resident of the school 
 67.16  district that enrolls the pupil in which the homeless shelter or 
 67.17  other program, center, or facility assisting the homeless pupil 
 67.18  or the pupil's family is located. 
 67.19     Sec. 31.  Minnesota Statutes 1996, section 124A.036, is 
 67.20  amended by adding a subdivision to read: 
 67.21     Subd. 1b.  [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 
 67.22  In those instances when the divorced parents share joint 
 67.23  physical custody of the child and the divorced parents reside in 
 67.24  different school districts, for all school purposes, unless 
 67.25  otherwise specifically provided by law, the child must be 
 67.26  considered a resident of the school district, as indicated by 
 67.27  the child's parents.  
 67.28     (b) When the child of divorced parents under paragraph (a) 
 67.29  resides with each parent on alternate weeks, the parents shall 
 67.30  be responsible for the transportation of the child to the border 
 67.31  of the resident school district during those weeks when the 
 67.32  child resides in the nonresident school district. 
 67.33     Sec. 32.  Minnesota Statutes 1996, section 124A.036, 
 67.34  subdivision 4, is amended to read: 
 67.35     Subd. 4.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
 67.36  agency or a court of the state desires to place a child in a 
 68.1   school district which is not the child's district of 
 68.2   residence or to place a pupil who is a parent under section 
 68.3   120.101, subdivision 3, in a school district which is not the 
 68.4   school district in which the pupil's biological or adoptive 
 68.5   parent or designated guardian resides, that agency or court 
 68.6   shall, prior to placement, allow the district of residence an 
 68.7   opportunity to participate in the placement decision and notify 
 68.8   the district of residence, the district of attendance and the 
 68.9   commissioner of children, families, and learning of the 
 68.10  placement decision.  When a state agency or court determines 
 68.11  that an immediate emergency placement is necessary and that time 
 68.12  does not permit district participation in the placement decision 
 68.13  or notice to the districts and the commissioner of children, 
 68.14  families, and learning of the placement decision prior to the 
 68.15  placement, the agency or court may make the decision and 
 68.16  placement without that participation or prior notice.  The 
 68.17  agency or court shall notify the district of residence, the 
 68.18  district of attendance and the commissioner of children, 
 68.19  families, and learning of an emergency placement within 15 days 
 68.20  of the placement.  
 68.21     Sec. 33.  Minnesota Statutes 1996, section 124C.45, 
 68.22  subdivision 2, is amended to read: 
 68.23     Subd. 2.  [ACCESS TO SERVICES.] A center shall have access 
 68.24  to the district's regular education programs, special education 
 68.25  programs, technology facilities, and staff.  It may contract 
 68.26  with individuals or post-secondary institutions.  It shall seek 
 68.27  the involvement of community education programs, post-secondary 
 68.28  institutions, interagency collaboratives, community resources, 
 68.29  businesses, and other federal, state, and local public agencies. 
 68.30     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 68.31  124C.46, subdivision 1, is amended to read: 
 68.32     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 68.33  services of a center must focus on academic and learning skills, 
 68.34  applied learning opportunities, trade and vocational skills, 
 68.35  work-based learning opportunities, work experience, youth 
 68.36  service to the community, and transition services.  Applied 
 69.1   learning, work-based learning, and service learning may best be 
 69.2   developed in collaboration with a local education and 
 69.3   transitions partnership.  In addition to offering programs, the 
 69.4   center shall coordinate the use of other available educational 
 69.5   services, special education services, social services, health 
 69.6   services, and post-secondary institutions in the community and 
 69.7   services area.  
 69.8      (b) Consistent with the requirements of section 127.26 to 
 69.9   127.39, a school district may provide an alternative education 
 69.10  program for a student who is within the compulsory attendance 
 69.11  age under section 120.06, and who is involved in severe or 
 69.12  repeated disciplinary action. 
 69.13     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
 69.14  124C.46, subdivision 2, is amended to read: 
 69.15     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 69.16  programs for secondary pupils and adults.  A center may also 
 69.17  provide programs and services for elementary and secondary 
 69.18  pupils who are not attending the center to assist them in being 
 69.19  successful in school.  An individual education plan team may 
 69.20  identify a center as an appropriate placement to the extent a 
 69.21  center can provide the student with the appropriate special 
 69.22  education services described in the student's plan.  Pupils 
 69.23  eligible to be served are those age five to adults 21 22 and 
 69.24  older who qualify under the graduation incentives program in 
 69.25  section 126.22, subdivision 2, or those pupils who are eligible 
 69.26  to receive special education services under section 120.17. 
 69.27     Sec. 36.  Minnesota Statutes 1996, section 124C.47, is 
 69.28  amended to read: 
 69.29     124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 
 69.30     An area learning center must serve as a resource for other 
 69.31  districts, educational, community, and business organizations.  
 69.32  The center may charge a fee for these services.  The following 
 69.33  services shall be provided for a region or the state:  
 69.34     (1) information and research for alternative programs; 
 69.35     (2) regional or state workshops on awareness, 
 69.36  identification, programs, and support for these pupils; and 
 70.1      (3) recommendations for staff qualifications to ensure the 
 70.2   most qualified staff can be selected for the programs; and 
 70.3      (4) recommendations for successful learning programs for 
 70.4   special education students placed in an alternative setting. 
 70.5      Sec. 37.  Minnesota Statutes 1996, section 124C.48, is 
 70.6   amended by adding a subdivision to read: 
 70.7      Subd. 3.  [SPECIAL EDUCATION REVENUE.] Payment of special 
 70.8   education revenue for nonresident pupils enrolled in the center 
 70.9   must be made according to section 120.17, subdivision 6. 
 70.10     Sec. 38.  Minnesota Statutes 1996, section 126.237, is 
 70.11  amended to read: 
 70.12     126.237 [ALTERNATE INSTRUCTION REQUIRED.] 
 70.13     (a) Before a pupil is referred for a special education 
 70.14  assessment, the district must conduct and document at least two 
 70.15  instructional strategies, alternatives, or interventions while 
 70.16  the pupil is in the regular classroom.  The pupil's teacher must 
 70.17  provide the documentation.  A special education assessment team 
 70.18  may waive this requirement when they determine the pupil's need 
 70.19  for the assessment is urgent.  This section may not be used to 
 70.20  deny a pupil's right to a special education assessment. 
 70.21     (b) A school district shall utilize alternative 
 70.22  intervention services, including the assurance of mastery 
 70.23  program under section 124.3111 and the supplemental early 
 70.24  education program under section 124.2613, to serve at-risk 
 70.25  students who demonstrate a need for alternative instructional 
 70.26  strategies or interventions. 
 70.27     Sec. 39.  Minnesota Statutes 1996, section 127.27, 
 70.28  subdivision 2, is amended to read: 
 70.29     Subd. 2.  [DISMISSAL.] "Dismissal" means the denial of the 
 70.30  appropriate current educational program to any pupil, including 
 70.31  exclusion, expulsion, and suspension.  It does not include 
 70.32  removal from class.  
 70.33     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 70.34  127.27, subdivision 10, is amended to read: 
 70.35     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 70.36  the school administration, under rules promulgated by the school 
 71.1   board, prohibiting a pupil from attending school for a period of 
 71.2   no more than ten school days.  If a suspension is longer than 
 71.3   five days, the suspending administrator must provide the 
 71.4   superintendent with a reason for the longer suspension.  This 
 71.5   definition does not apply to dismissal from school for one 
 71.6   school day or less, except as provided in federal law for a 
 71.7   student with a disability.  Each suspension action shall may 
 71.8   include a readmission plan.  The readmission plan shall include, 
 71.9   where appropriate, a provision for implementing alternative 
 71.10  educational services upon readmission and may not be used to 
 71.11  extend the current suspension.  The school administration may 
 71.12  not impose consecutive suspensions against the same pupil for 
 71.13  the same course of conduct, or incident of misconduct, except 
 71.14  where the pupil will create an immediate and substantial danger 
 71.15  to self or to surrounding persons or property, or where the 
 71.16  district is in the process of initiating an expulsion, in which 
 71.17  case the school administration may extend the suspension up to a 
 71.18  total of 15 days.  In the case of a pupil with a disability, a 
 71.19  suspension may not exceed ten school days school districts must 
 71.20  comply with applicable federal law.  The school administration 
 71.21  shall implement alternative educational services to the extent 
 71.22  that when the suspension exceeds five days.  A separate 
 71.23  administrative conference is required for each period of 
 71.24  suspension. 
 71.25     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 71.26  127.27, subdivision 11, is amended to read: 
 71.27     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
 71.28  educational services" may include, but are not limited to, 
 71.29  special tutoring, modified curriculum, modified instruction, 
 71.30  other modifications or adaptations, instruction through 
 71.31  electronic media, special education services as indicated by 
 71.32  appropriate assessment, homebound instruction, supervised 
 71.33  homework, or enrollment in another district or in an alternative 
 71.34  learning center under section 124C.45 selected to allow the 
 71.35  pupil to progress toward meeting graduation standards under 
 71.36  section 121.11, subdivision 7c, although in a different setting. 
 72.1      Sec. 42.  Minnesota Statutes 1997 Supplement, section 
 72.2   127.31, subdivision 15, is amended to read: 
 72.3      Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school 
 72.4   administrator shall prepare and enforce an admission or 
 72.5   readmission plan for any pupil who is suspended, excluded, or 
 72.6   expelled from school.  The plan may include measures to improve 
 72.7   the pupil's behavior and require parental involvement in the 
 72.8   admission or readmission process, and may indicate the 
 72.9   consequences to the pupil of not improving the pupil's behavior. 
 72.10     Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 72.11  127.32, is amended to read: 
 72.12     127.32 [APPEAL.] 
 72.13     A party to an exclusion or expulsion decision made under 
 72.14  sections 127.26 to 127.39 may appeal the decision to the 
 72.15  commissioner of children, families, and learning within 21 
 72.16  calendar days of school board action.  Upon being served with a 
 72.17  notice of appeal, the district shall provide the commissioner 
 72.18  and the parent or guardian with a complete copy of the hearing 
 72.19  record within five days of its receipt of the notice of appeal.  
 72.20  All written submissions by the appellant must be submitted and 
 72.21  served on the respondent within ten days of its actual receipt 
 72.22  of the transcript.  All written submissions by the respondent 
 72.23  must be submitted and served on the appellant within ten days of 
 72.24  its actual receipt of the written submissions of the appellant.  
 72.25  The decision of the school board must be implemented during the 
 72.26  appeal to the commissioner. 
 72.27     In an appeal under this section, the commissioner may 
 72.28  affirm the decision of the agency, may remand the decision for 
 72.29  additional findings, or may reverse or modify the decision if 
 72.30  the substantial rights of the petitioners may have been 
 72.31  prejudiced because the administrative findings, inferences, 
 72.32  conclusions, or decisions are: 
 72.33     (1) in violation of constitutional provisions; 
 72.34     (2) in excess of the statutory authority or jurisdiction of 
 72.35  the school district; 
 72.36     (3) made upon unlawful procedure, except as provided in 
 73.1   section 127.311; 
 73.2      (4) affected by other error of law; 
 73.3      (5) unsupported by substantial evidence in view of the 
 73.4   entire record submitted; or 
 73.5      (6) arbitrary or capricious. 
 73.6   The commissioner or the commissioner's representative shall make 
 73.7   a final decision based upon the record of evidence presented at 
 73.8   the hearing.  The commissioner shall issue a decision within 30 
 73.9   calendar days of receiving the entire record and the parties' 
 73.10  written submission on appeal.  The commissioner's decision shall 
 73.11  be final and binding upon the parties after the time for appeal 
 73.12  expires under section 127.33. 
 73.13     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
 73.14  127.36, subdivision 1, is amended to read: 
 73.15     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 73.16  board shall report each exclusion or expulsion within 30 days of 
 73.17  the effective date of the action to the commissioner of 
 73.18  children, families, and learning.  This report shall include a 
 73.19  statement of alternative educational services given the pupil 
 73.20  before beginning exclusion or expulsion proceedings, and the 
 73.21  reason for, the effective date, and the duration of the 
 73.22  exclusion or expulsion.  
 73.23     Sec. 45.  Minnesota Statutes 1997 Supplement, section 
 73.24  127.38, is amended to read: 
 73.25     127.38 [POLICIES TO BE ESTABLISHED.] 
 73.26     (a) The commissioner of children, families, and learning 
 73.27  shall promulgate guidelines to assist each school board.  Each 
 73.28  school board shall establish uniform criteria for dismissal and 
 73.29  adopt written policies and rules to effectuate the purposes of 
 73.30  sections 127.26 to 127.39.  The policies shall emphasize 
 73.31  preventing dismissals through early detection of problems and 
 73.32  shall be designed to address students' inappropriate behavior 
 73.33  from recurring.  The policies shall recognize the continuing 
 73.34  responsibility of the school for the education of the pupil 
 73.35  during the dismissal period.  The alternative educational 
 73.36  services, if the pupil wishes to take advantage of them, must be 
 74.1   adequate to allow the pupil to make progress towards meeting the 
 74.2   graduation standards adopted under section 121.11, subdivision 
 74.3   7c, and help prepare the pupil for readmission.  
 74.4      (b) An area learning center under section 124C.45 may not 
 74.5   prohibit an expelled or excluded pupil from enrolling solely 
 74.6   because a district expelled or excluded the pupil.  The board of 
 74.7   the area learning center may use the provisions of The Pupil 
 74.8   Fair Dismissal Act to exclude a pupil or to require an admission 
 74.9   plan. 
 74.10     (c) The commissioner shall actively encourage and assist 
 74.11  school districts to cooperatively establish alternative 
 74.12  educational services within school buildings or at alternative 
 74.13  program sites that offer instruction to pupils who are dismissed 
 74.14  from school for willfully engaging in dangerous, disruptive, or 
 74.15  violent behavior, including for possessing a firearm in a school 
 74.16  zone. 
 74.17     Sec. 46.  Minnesota Statutes 1996, section 256B.0625, 
 74.18  subdivision 26, is amended to read: 
 74.19     Subd. 26.  [SPECIAL EDUCATION SERVICES.] Medical assistance 
 74.20  covers medical services identified in a recipient's 
 74.21  individualized education plan and covered under the medical 
 74.22  assistance state plan.  The services may be provided by a 
 74.23  Minnesota school district that is enrolled as a medical 
 74.24  assistance provider or its subcontractor, and only if the 
 74.25  services meet all the requirements otherwise applicable if the 
 74.26  service had been provided by a provider other than a school 
 74.27  district, in the following areas:  medical necessity, 
 74.28  physician's orders, documentation, personnel qualifications, and 
 74.29  prior authorization requirements.  Services of a speech-language 
 74.30  pathologist provided under this section are covered 
 74.31  notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 
 74.32  L, if the person: 
 74.33     (1) holds a masters degree in speech-language pathology; 
 74.34     (2) is licensed by the Minnesota board of teaching as an 
 74.35  educational speech-language pathologist; and 
 74.36     (3) either has a certificate of clinical competence from 
 75.1   the American Speech and Hearing Association, has completed the 
 75.2   equivalent educational requirements and work experience 
 75.3   necessary for the certificate or has completed the academic 
 75.4   program and is acquiring supervised work experience to qualify 
 75.5   for the certificate.  Medical assistance coverage for medically 
 75.6   necessary services provided under other subdivisions in this 
 75.7   section may not be denied solely on the basis that the same or 
 75.8   similar services are covered under this subdivision. 
 75.9      Sec. 47.  Laws 1993, chapter 224, article 3, section 32, is 
 75.10  amended to read: 
 75.11     Sec. 32.  [ASL GUIDELINES.] 
 75.12     (a) In determining appropriate licensure requirements for 
 75.13  teachers of deaf and hard of hearing students under Minnesota 
 75.14  Statutes, section 125.189, the board of teaching shall develop 
 75.15  the requirements according to the guidelines described in this 
 75.16  section. 
 75.17     (b) Each teacher must complete the American sign language 
 75.18  sign communication proficiency interview or a comparable 
 75.19  American sign language evaluation that the board of teaching, 
 75.20  the Minnesota association of deaf citizens, and the Minnesota 
 75.21  council for the hearing impaired accept as a means for 
 75.22  establishing the teacher's baseline level of American sign 
 75.23  language skills.  A teacher shall not be charged for this 
 75.24  evaluation. 
 75.25     (c) Each teacher must complete 60 continuing education 
 75.26  credits in American sign language, American sign language 
 75.27  linguistics, or deaf culture for every 120 continuing education 
 75.28  credits the teacher is required to complete to renew a teaching 
 75.29  license. 
 75.30     (d) As a condition of obtaining In order to obtain an 
 75.31  initial license to teach deaf and hard of hearing students, or 
 75.32  to apply for a Minnesota teaching license, after being licensed 
 75.33  to teach in another state, a person must demonstrate in the sign 
 75.34  communication proficiency interview an intermediate plus level 
 75.35  of proficiency in American sign language. 
 75.36     (e) Each teacher applying to renew a teaching license and 
 76.1   each teacher holding a teaching license from another state who 
 76.2   wishes to apply for a Minnesota teaching license must take the 
 76.3   American sign language sign communication proficiency interview 
 76.4   or a comparable American sign language evaluation every five 
 76.5   years until the teacher demonstrates a minimum, or survival 
 76.6   plus, level of proficiency in American sign language. 
 76.7      (f) A teacher working directly with students whose primary 
 76.8   language is American sign language should demonstrate at least 
 76.9   an advanced level of proficiency in American sign language.  The 
 76.10  board should not consider a minimum, or survival plus, level of 
 76.11  proficiency adequate for providing direct instruction to 
 76.12  students whose primary language is American sign language. 
 76.13     (g) To renew a teaching license, a teacher must comply with 
 76.14  paragraphs (c) and (e) in addition to other applicable board 
 76.15  requirements.  A teacher's ability to demonstrate a minimum, or 
 76.16  survival plus, level of proficiency in American sign language is 
 76.17  not a condition for renewing the teacher's license. 
 76.18     (h) A teacher who demonstrates an increased proficiency in 
 76.19  American sign language skill in the American sign language sign 
 76.20  communication proficiency interview or a comparable American 
 76.21  sign language evaluation shall receive credit toward completing 
 76.22  the requirements of paragraph (c).  The number of continuing 
 76.23  education credits the teacher receives is based on the teacher's 
 76.24  increased level of proficiency from the teacher's baseline level:
 76.25     (1) 35 continuing education credits for demonstrating an 
 76.26  intermediate level of proficiency; 
 76.27     (2) 40 continuing education credits for demonstrating an 
 76.28  intermediate plus level of proficiency; 
 76.29     (3) 45 continuing education credits for demonstrating an 
 76.30  advanced level of proficiency; 
 76.31     (4) 50 continuing education credits for demonstrating an 
 76.32  advanced plus level of proficiency; 
 76.33     (5) 55 continuing education credits for demonstrating a 
 76.34  superior level of proficiency; and 
 76.35     (6) 60 continuing education credits for demonstrating a 
 76.36  superior plus level of proficiency. 
 77.1      Sec. 48.  Laws 1997, First Special Session chapter 4, 
 77.2   article 2, section 51, subdivision 15, is amended to read: 
 77.3      Subd. 15.  [SPECIAL EDUCATION AID.] For special education 
 77.4   aid according to Minnesota Statutes, section 124.32: 
 77.5        $282,505,000   .....     1998 
 77.6        $382,519,000 $383,220,000   .....     1999 
 77.7      The 1998 appropriation includes $24,346,000 for 1997 and 
 77.8   $258,159,000 for 1998.  
 77.9      The 1999 appropriation includes $28,684,000 $28,696,000 for 
 77.10  1998 and $353,835,000 $353,973,000 for 1999. 
 77.11     $458,000 of the 1999 current year account is appropriated 
 77.12  to the department of human services to cover additional medical 
 77.13  assistance costs associated with state law changes regarding 
 77.14  speech-language pathologists in Minnesota Statutes, section 
 77.15  256B.0625, subdivision 26. 
 77.16     $93,000 of the 1999 current year account is appropriated to 
 77.17  the department of human services to transfer into the health 
 77.18  care access fund for the purposes of state law changes regarding 
 77.19  speech-language pathologists in Minnesota Statutes, section 
 77.20  256B.0625, subdivision 26. 
 77.21     For fiscal years 2000 and 2001, the department of children, 
 77.22  families, and learning must reimburse the department of human 
 77.23  services for medical assistance and MinnesotaCare costs 
 77.24  associated with state law changes regarding the speech-language 
 77.25  pathologists in Minnesota Statutes, section 256B.0625, 
 77.26  subdivision 26. 
 77.27     Sec. 49.  Laws 1997, First Special Session chapter 4, 
 77.28  article 2, section 51, subdivision 25, is amended to read: 
 77.29     Subd. 25.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 77.30  HOMELESS CHILDREN.] For matching grants for education programs 
 77.31  for homeless children: 
 77.32       $400,000 $1,100,000     .....     1998
 77.33     This appropriation is available until June 30, 1999.  
 77.34     Sec. 50.  Laws 1997, First Special Session chapter 4, 
 77.35  article 2, section 51, subdivision 29, is amended to read: 
 77.36     Subd. 29.  [FIRST GRADE PREPAREDNESS SUPPLEMENTAL EARLY 
 78.1   EDUCATION.] (a) For grants for the first grade preparedness 
 78.2   supplemental early education program under Minnesota Statutes, 
 78.3   section 124.2613, and for school sites that have provided a 
 78.4   full-day kindergarten option for kindergarten students enrolled 
 78.5   in fiscal years 1996 and 1997: 
 78.6        $5,000,000     .....     1998 
 78.7        $5,000,000 $10,000,000     .....     1999 
 78.8      (b) To be a qualified site, licensed teachers must have 
 78.9   taught the optional full-day kindergarten classes.  A district 
 78.10  that charged a fee for students participating in an optional 
 78.11  full-day program is eligible to receive the grant to provide 
 78.12  full-day kindergarten for all students as required by Minnesota 
 78.13  Statutes, section 124.2613, subdivision 4.  Districts with 
 78.14  eligible sites must apply to the commissioner of children, 
 78.15  families, and learning for a grant. 
 78.16     (c) This appropriation must first be used to fund programs 
 78.17  operating during the 1996-1997 school year under paragraph (b) 
 78.18  and Minnesota Statutes, section 124.2613.  Any remaining funds 
 78.19  may be used to expand the number of sites providing first grade 
 78.20  preparedness supplemental early education programs. 
 78.21     (d) The 1999 appropriation includes $5,000,000 for 
 78.22  expanding the number of qualifying school sites under Minnesota 
 78.23  Statutes, section 124.2613, subdivision 3. 
 78.24     Sec. 51.  [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 
 78.25  AND SERVICES.] 
 78.26     (a) The state board of education must amend all rules 
 78.27  relating to providing special instruction and services to 
 78.28  children with a disability so that the rules do not impose 
 78.29  requirements that exceed federal law.  Consistent with the 
 78.30  report from the commissioner to compare federal and state 
 78.31  special education law, the state board may use the expedited 
 78.32  process under Minnesota Statutes 1997, section 14.389, to amend 
 78.33  these rules. 
 78.34     (b) As of July 1, 1999, any rules relating to providing 
 78.35  special instruction and services to children with a disability 
 78.36  are invalid to the extent they exceed the requirements in 
 79.1   federal law. 
 79.2      Sec. 52.  [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 
 79.3   EDUCATION LAW.] 
 79.4      Subdivision 1.  [REPORT.] The commissioner of children, 
 79.5   families, and learning shall prepare a report comparing existing 
 79.6   and currently proposed federal laws and regulations and state 
 79.7   laws and rules governing special education, which indicates 
 79.8   those state laws and rules governing special education that 
 79.9   exceed or expand upon minimum requirements under federal special 
 79.10  education law or regulations.  The commissioner shall make the 
 79.11  report available by September 30, 1998, to the public, the state 
 79.12  board of education, and the education committees of the 
 79.13  legislature for consideration of amending state rules.  
 79.14     Sec. 53.  [SPEECH-LANGUAGE PATHOLOGISTS.] 
 79.15     The board of teaching shall allow individuals who hold a 
 79.16  certificate of clinical competence from the American 
 79.17  Speech-Language-Hearing Association to be licensed as 
 79.18  speech-language pathologists. 
 79.19     Sec. 54.  [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 
 79.20  SERVICES.] 
 79.21     The board of teaching, in order to comply with section 46, 
 79.22  shall by rule allow individuals who hold a certificate of 
 79.23  clinical competence from the American Speech-Language-Hearing 
 79.24  Association to be licensed as speech-language pathologists. 
 79.25     Sec. 55.  [ADVISORY TASK FORCE ON ACCESS TO 
 79.26  MEDICALLY-RELATED SPECIAL EDUCATION SERVICES.] 
 79.27     Subdivision 1.  [ESTABLISHMENT.] (a) The commissioner of 
 79.28  children, families, and learning shall create an advisory task 
 79.29  force under Minnesota Statutes, section 15.014, to make 
 79.30  recommendations on the role of public and private health plans 
 79.31  in financing and delivering special education services under 
 79.32  Minnesota Statutes, sections 120.17, 120.1701, 120.1703 and 
 79.33  120.1705 to the extent such services are also covered under a 
 79.34  health plan contract or state health care program.  The advisory 
 79.35  task force shall include one representative from each of the 
 79.36  following: one representative from each of the departments of 
 80.1   health, human services, commerce, employee relations, and 
 80.2   department of children, families and learning, recommended by 
 80.3   their respective commissioner; a representative of the Minnesota 
 80.4   council of health plans; a representative of the insurance 
 80.5   federation of Minnesota; a representative of a Minnesota 
 80.6   employer; a representative of the council on disabilities; a 
 80.7   representative recommended jointly by ARC and PACER; a 
 80.8   representative of the Minnesota association of special 
 80.9   educators; a representative of the Minnesota school boards 
 80.10  association; and a member of the interagency coordinating 
 80.11  commission, recommended by the commission chair.  The 
 80.12  commissioner of children, families and learning shall appoint an 
 80.13  additional member who shall serve as the advisory task force 
 80.14  chair, and who shall convene the task force beginning May 1998. 
 80.15     (b) The advisory task force shall study and make 
 80.16  recommendations on the following issues: 
 80.17     (1) the current and appropriate future role of purchasers 
 80.18  of health coverage, including medical assistance, other state 
 80.19  health care programs, and employers in paying for medically 
 80.20  related special education services; 
 80.21     (2) systems and procedures needed to facilitate appropriate 
 80.22  sharing of information necessary for coordinating care and 
 80.23  monitoring the quality of care; 
 80.24     (3) accountability for the quality and cost of health care 
 80.25  services provided under an individual education plan, an 
 80.26  individual family service plan or other standardized written 
 80.27  plan for a child with disabilities; 
 80.28     (4) technical aspects of the billing and reimbursement 
 80.29  system between school districts and health plans, including 
 80.30  payment of enrollee cost sharing; and 
 80.31     (5) any statutory changes needed to effectively implement 
 80.32  task force recommendations. 
 80.33     Subd. 2.  [REPORT; EXPIRATION.] The commissioner shall 
 80.34  submit a written report, with the recommendations of the 
 80.35  advisory task force, to the legislature in compliance with 
 80.36  section 3.195 by December 1, 1998, that discusses and makes 
 81.1   recommendations on those issues listed in subdivision 1, 
 81.2   paragraph (b).  The advisory task force expires January 15, 1999.
 81.3      Sec. 56.  [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 
 81.4      Special education base revenue for independent school 
 81.5   district No. 535, Rochester, is increased by $150,000 for fiscal 
 81.6   year 1998 to reflect the increased special education costs 
 81.7   associated with the opening of a new facility for juvenile 
 81.8   offenders in Olmsted county.  
 81.9      Sec. 57.  [OSSEO LEVY.] 
 81.10     For taxes payable in 1999 only, independent school district 
 81.11  No. 279, Osseo, may levy a tax in an amount not to exceed 
 81.12  $300,000.  The proceeds of this levy must be used to provide 
 81.13  instructional services for at-risk children. 
 81.14     Sec. 58.  [DEPARTMENT OF HUMAN SERVICES.] 
 81.15     The department of human services shall report to the 
 81.16  legislature on January 15 for the years 1999, 2000, and 2001, 
 81.17  the medical assistance MinnesotaCare reimbursed costs of special 
 81.18  education services, which are covered services under Minnesota 
 81.19  Statutes, chapter 256B.  If the November 1998 forecast for the 
 81.20  state medical assistance expenditures for special education 
 81.21  services which are covered services under Minnesota Statutes, 
 81.22  chapter 256B, exceeds $8,000,000 per year, the department of 
 81.23  children, families, and learning must develop a plan to allocate 
 81.24  additional resources to cover the excess costs. 
 81.25     Sec. 59.  [APPROPRIATIONS.] 
 81.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 81.27  LEARNING.] The sums indicated in this section are appropriated 
 81.28  from the general fund to the department of children, families, 
 81.29  and learning for the fiscal years designated. 
 81.30     Subd. 2.  [STATEWIDE THIRD-PARTY BILLING SYSTEM; 
 81.31  ASSISTANCE.] For developing and implementing an effective and 
 81.32  efficient statewide third-party billing system under section 2: 
 81.33       $200,000     .....     1999 
 81.34     Funds remain available until expended. 
 81.35     Subd. 3.  [LITIGATION COSTS.] For paying a portion of the 
 81.36  litigation costs a district actually incurs under section 27: 
 82.1        $  500,000     .....     1999 
 82.2      If the amount appropriated is insufficient to fully fund 
 82.3   the aid for litigation costs according to section 124.32, 
 82.4   subdivision 13, the commissioner shall prorate the appropriation 
 82.5   to districts based on the amount of aid calculated for each 
 82.6   district. 
 82.7      Sec. 60.  [REPEALER.] 
 82.8      Subdivision 1.  Minnesota Rules, part 3525.2750, subpart 1, 
 82.9   item B, is repealed. 
 82.10     Subd. 2.  Minnesota Statutes 1996, section 124.32, 
 82.11  subdivision 13, is repealed June 30, 2004. 
 82.12     Sec. 61.  [EFFECTIVE DATE.] 
 82.13     Sections 9, 46, 53, 54, 55, and 60, subdivision 1, are 
 82.14  effective the day following final enactment. 
 82.15                             ARTICLE 3
 82.16         INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY
 82.17     Section 1.  Minnesota Statutes 1996, section 120.1701, 
 82.18  subdivision 5, is amended to read: 
 82.19     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 82.20  A school district, group of districts, or special education 
 82.21  cooperative, in cooperation with the health and human service 
 82.22  agencies located in the county or counties in which the district 
 82.23  or cooperative is located, shall establish an interagency early 
 82.24  intervention committee for children with disabilities under age 
 82.25  five and their families under this section, and for children 
 82.26  with disabilities ages three to 22 consistent with the 
 82.27  requirements under sections 120.1703 and 120.1705.  Committees 
 82.28  shall include representatives of local and regional health, 
 82.29  education, and county human service agencies; county boards; 
 82.30  school boards; early childhood family education programs; 
 82.31  parents of young children with disabilities under age 12; 
 82.32  current service providers; and may also include representatives 
 82.33  from other private or public agencies and school nurses.  The 
 82.34  committee shall elect a chair from among its members and shall 
 82.35  meet at least quarterly. 
 82.36     (b) The committee shall develop and implement interagency 
 83.1   policies and procedures concerning the following ongoing duties: 
 83.2      (1) develop public awareness systems designed to inform 
 83.3   potential recipient families of available programs and services; 
 83.4      (2) implement interagency child find systems designed to 
 83.5   actively seek out, identify, and refer infants and young 
 83.6   children with, or at risk of, disabilities and their families; 
 83.7      (3) establish and evaluate the identification, referral, 
 83.8   child and family assessment systems, procedural safeguard 
 83.9   process, and community learning systems to recommend, where 
 83.10  necessary, alterations and improvements; 
 83.11     (4) assure the development of individualized family service 
 83.12  plans for all eligible infants and toddlers with disabilities 
 83.13  from birth through age two, and their families, and individual 
 83.14  education plans and individual service plans when necessary to 
 83.15  appropriately serve children with disabilities, age three and 
 83.16  older, and their families and recommend assignment of financial 
 83.17  responsibilities to the appropriate agencies.  Agencies are 
 83.18  encouraged to develop individual family service plans for 
 83.19  children with disabilities, age three and older; 
 83.20     (5) implement a process for assuring that services involve 
 83.21  cooperating agencies at all steps leading to individualized 
 83.22  programs; 
 83.23     (6) facilitate the development of a transitional plan if a 
 83.24  service provider is not recommended to continue to provide 
 83.25  services; 
 83.26     (7) identify the current services and funding being 
 83.27  provided within the community for children with disabilities 
 83.28  under age five and their families; 
 83.29     (8) develop a plan for the allocation and expenditure of 
 83.30  additional state and federal early intervention funds under 
 83.31  United States Code, title 20, section 1471 et seq. (Part H, 
 83.32  Public Law Number 102-119) and United States Code, title 20, 
 83.33  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 83.34     (9) develop a policy that is consistent with section 13.05, 
 83.35  subdivision 9, and federal law to enable a member of an 
 83.36  interagency early intervention committee to allow another member 
 84.1   access to data classified as not public. 
 84.2      (c) The local committee shall also: 
 84.3      (1) participate in needs assessments and program planning 
 84.4   activities conducted by local social service, health and 
 84.5   education agencies for young children with disabilities and 
 84.6   their families; 
 84.7      (2) review and comment on the early intervention section of 
 84.8   the total special education system for the district, the county 
 84.9   social service plan, the section or sections of the community 
 84.10  health services plan that address needs of and service 
 84.11  activities targeted to children with special health care needs, 
 84.12  and the section of the maternal and child health special project 
 84.13  grants that address needs of and service activities targeted to 
 84.14  children with chronic illness and disabilities; and 
 84.15     (3) prepare a yearly summary on the progress of the 
 84.16  community in serving young children with disabilities, and their 
 84.17  families, including the expenditure of funds, the identification 
 84.18  of unmet service needs identified on the individual family 
 84.19  services plan and other individualized plans, and local, state, 
 84.20  and federal policies impeding the implementation of this section.
 84.21     (d) The summary must be organized following a format 
 84.22  prescribed by the commissioner of the state lead agency and must 
 84.23  be submitted to each of the local agencies and to the state 
 84.24  interagency coordinating council by October 1 of each year. 
 84.25     The departments of children, families, and learning, 
 84.26  health, and human services must provide assistance to the local 
 84.27  agencies in developing cooperative plans for providing services. 
 84.28     Sec. 2.  [120.1703] [COORDINATED INTERAGENCY SERVICES.] 
 84.29     Subdivision 1.  [CITATION.] Sections 120.1703 and 120.1705 
 84.30  shall be cited as the "Interagency Services for Children with 
 84.31  Disabilities Act." 
 84.32     Subd. 2.  [PURPOSE.] It is the policy of the state to 
 84.33  develop and implement a coordinated, multidisciplinary, 
 84.34  interagency intervention service system for children ages three 
 84.35  to 22 with disabilities. 
 84.36     Subd. 3.  [DEFINITIONS.] For purposes of sections 120.1703 
 85.1   and 120.1705, the following terms have the meanings given them: 
 85.2      (a) "Health plan" means (i) a health plan under section 
 85.3   62Q.01, subdivision 3; (ii) a county-based purchasing plan under 
 85.4   section 256B.692; (iii) a self insured health plan established 
 85.5   by a local government under section 471.617; or (iv) self 
 85.6   insured health coverage provided by the state to its employees 
 85.7   or retirees. 
 85.8      (b) For purposes of this section, "health plan company" 
 85.9   means an entity that issues a health plan as defined in 
 85.10  paragraph (a). 
 85.11     (c) "Individual interagency intervention plan" means a 
 85.12  standardized written plan describing those programs or services 
 85.13  and the accompanying funding sources available to eligible 
 85.14  children with disabilities. 
 85.15     (d) "Interagency intervention service system" means a 
 85.16  system that coordinates services and programs required in state 
 85.17  and federal law to meet the needs of eligible children with 
 85.18  disabilities ages three to 22, including: 
 85.19     (1) services provided under the following programs or 
 85.20  initiatives administered by state or local agencies: 
 85.21     (i) the maternal and child health program under title V of 
 85.22  the Social Security Act, United States Code, title 42, sections 
 85.23  701 to 709; 
 85.24     (ii) the Individuals with Disabilities Education Act under 
 85.25  United States Code, title 20, chapter 33, subchapter II, 
 85.26  sections 1411 to 1420; 
 85.27     (iii) medical assistance under the Social Security Act, 
 85.28  United States Code, title 42, chapter 7, subchapter XIX, section 
 85.29  1396 et seq.; 
 85.30     (iv) the Developmental Disabilities Assistance and Bill of 
 85.31  Rights Act, United States Code, title 42, chapter 75, subchapter 
 85.32  II, sections 6021 to 6030, Part B; 
 85.33     (v) the Head Start Act, United States Code, title 42, 
 85.34  chapter 105, subchapter II, sections 9831 to 9852; 
 85.35     (vi) rehabilitation services provided under chapter 268A; 
 85.36     (vii) juvenile court act services provided under sections 
 86.1   260.011 to 260.301; 
 86.2      (viii) the children's mental health collaboratives under 
 86.3   section 245.493; 
 86.4      (ix) the family service collaboratives under section 
 86.5   121.8355; 
 86.6      (x) the family community support plan under section 
 86.7   245.4881, subdivision 4; 
 86.8      (xi) the Minnesota care program under chapter 256L; 
 86.9      (xii) the community health services grants under chapter 
 86.10  145; and 
 86.11     (xiii) the community social services act funding under the 
 86.12  Social Security Act, USC, title 42, sections 1397 to 1397f; 
 86.13     (2) services provided under a health plan in conformity 
 86.14  with an individual family service plan or an individual 
 86.15  education plan; and 
 86.16     (3) additional appropriate services that local agencies and 
 86.17  counties provide on an individual need basis upon determining 
 86.18  eligibility and receiving a request from the interagency early 
 86.19  intervention committee and the child's parent. 
 86.20     (e) "Children with disabilities" has the meaning given in 
 86.21  section 120.03. 
 86.22     (f) A "standardized written plan" means those individual 
 86.23  services or programs available through the interagency 
 86.24  intervention service system to an eligible child other than the 
 86.25  services or programs described in the child's individual 
 86.26  education plan or the child's individual family service plan. 
 86.27     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 86.28  shall convene an 18-member interagency committee to develop and 
 86.29  implement a coordinated, multidisciplinary, interagency 
 86.30  intervention service system for children ages three to 22 with 
 86.31  disabilities.  The commissioners of commerce, children, 
 86.32  families, and learning, health, human rights, human services, 
 86.33  economic security, and corrections shall each appoint two 
 86.34  committee members from their departments; the association of 
 86.35  Minnesota counties shall appoint two county representatives, one 
 86.36  of whom must be an elected official, as committee members; and 
 87.1   the Minnesota school boards association and the school nurse 
 87.2   association of Minnesota shall each appoint one committee 
 87.3   member.  The committee shall select a chair from among its 
 87.4   members. 
 87.5      (b) The committee shall: 
 87.6      (1) identify and assist in removing state and federal 
 87.7   barriers to local coordination of services provided to children 
 87.8   with disabilities; 
 87.9      (2) identify adequate, equitable, and flexible funding 
 87.10  sources to streamline these services; 
 87.11     (3) develop guidelines for implementing policies that 
 87.12  ensure a comprehensive and coordinated system of all state and 
 87.13  local agency services, including multidisciplinary assessment 
 87.14  practices for children with disabilities ages three to 22; 
 87.15     (4) develop, consistent with federal law, a standardized 
 87.16  written plan for providing services to a child with 
 87.17  disabilities; 
 87.18     (5) identify how current systems for dispute resolution can 
 87.19  be coordinated and develop guidelines for that coordination; 
 87.20     (6) develop an evaluation process to measure the success of 
 87.21  state and local interagency efforts in improving the quality and 
 87.22  coordination of services to children with disabilities ages 
 87.23  three to 22; 
 87.24     (7) develop guidelines to assist the governing boards of 
 87.25  the interagency early intervention committees in carrying out 
 87.26  the duties assigned in section 120.1705, subdivision 1, 
 87.27  paragraph (b); and 
 87.28     (8) carry out other duties necessary to develop and 
 87.29  implement within communities a coordinated, multidisciplinary, 
 87.30  interagency intervention service system for children with 
 87.31  disabilities. 
 87.32     (c) The committee shall consult on an on-going basis with 
 87.33  the state education advisory committee for special education and 
 87.34  the governor's interagency coordinating council in carrying out 
 87.35  its duties under this section, including assisting the governing 
 87.36  boards of the interagency early intervention committees. 
 88.1      Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
 88.2   commissioner of children, families, and learning, based on 
 88.3   recommendations from the state interagency committee, shall 
 88.4   issue a request for proposals by January 1, 1999, for grants to 
 88.5   the governing boards of interagency intervention committees 
 88.6   under section 120.1705 or a combination of one or more counties 
 88.7   and school districts to establish five voluntary interagency 
 88.8   intervention demonstration projects.  One grant shall be used to 
 88.9   implement a coordinated service system for all eligible children 
 88.10  with disabilities up to age 5 who received services under 
 88.11  section 120.1701.  One grant shall be used to implement a 
 88.12  coordinated service system for a population of minority children 
 88.13  with disabilities from ages 12 to 22, who may have behavioral 
 88.14  problems and are in need of transitional services.  Each project 
 88.15  must be operational by July 1, 1999.  The governing boards of 
 88.16  the interagency early intervention committees and the counties 
 88.17  and school districts receiving project grants must develop 
 88.18  efficient ways to coordinate services and funding for children 
 88.19  with disabilities ages three to 22, consistent with the 
 88.20  requirements of sections 120.1703 and 120.1705 and the 
 88.21  guidelines developed by the state interagency committee under 
 88.22  this section. 
 88.23     (b) The state interagency committee shall evaluate the 
 88.24  demonstration projects and provide the evaluation results to 
 88.25  interagency early intervention committees. 
 88.26     Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in sections 
 88.27  120.1703 and 120.1705 relieves a health plan company, third 
 88.28  party administrator or other third-party payer of an obligation 
 88.29  to pay for, or changes the validity of an obligation to pay for, 
 88.30  services provided to children with disabilities ages three to 22 
 88.31  and their families. 
 88.32     Subd. 7.  [AGENCY OBLIGATION.] Nothing in sections 120.1703 
 88.33  and 120.1705 removes the obligation of the state, counties, 
 88.34  local school districts, a regional agency, or a local agency or 
 88.35  organization to comply with any federal or state law that 
 88.36  mandates responsibility for finding, assessing, delivering, 
 89.1   assuring, or paying for education or related services for 
 89.2   children with disabilities and their families. 
 89.3      Sec. 3.  [120.1705] [INTERAGENCY EARLY INTERVENTION 
 89.4   COMMITTEE RESPONSIBILITIES.] 
 89.5      Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
 89.6   boards of the interagency early intervention committees are 
 89.7   responsible for developing and implementing interagency policies 
 89.8   and procedures to coordinate services at the local level for 
 89.9   children with disabilities ages three to 22 under guidelines 
 89.10  established by the state interagency committee under section 
 89.11  120.1703, subdivision 4.  Consistent with the requirements in 
 89.12  sections 120.1703 and 120.1705, the governing boards of the 
 89.13  interagency early intervention committees shall organize as a 
 89.14  joint powers board under section 471.59 or enter into an 
 89.15  interagency agreement that establishes a governance structure. 
 89.16     (b) The governing board of each interagency early 
 89.17  intervention committee as defined in section 120.1701, 
 89.18  subdivision 5, paragraph (a), which may include a juvenile 
 89.19  justice professional, shall: 
 89.20     (1) identify and assist in removing state and federal 
 89.21  barriers to local coordination of services provided to children 
 89.22  with disabilities; 
 89.23     (2) identify adequate, equitable, and flexible use of 
 89.24  funding by local agencies for these services; 
 89.25     (3) implement policies that ensure a comprehensive and 
 89.26  coordinated system of all state and local agency services, 
 89.27  including multidisciplinary assessment practices, for children 
 89.28  with disabilities ages three to 22; 
 89.29     (4) use a standardized written plan for providing services 
 89.30  to a child with disabilities developed under section 120.1703; 
 89.31     (5) access the coordinated dispute resolution system and 
 89.32  incorporate the guidelines for coordinating services at the 
 89.33  local level, consistent with section 120.1703; 
 89.34     (6) use the evaluation process to measure the success of 
 89.35  the local interagency effort in improving the quality and 
 89.36  coordination of services to children with disabilities ages 
 90.1   three to 22 consistent with section 120.1703; 
 90.2      (7) develop a transitional plan for children moving from 
 90.3   the interagency early childhood intervention system under 
 90.4   section 120.1701 into the interagency intervention service 
 90.5   system under this section; 
 90.6      (8) coordinate services and facilitate payment for services 
 90.7   from public and private institutions, agencies, and health plan 
 90.8   companies; and 
 90.9      (9) share needed information consistent with state and 
 90.10  federal data practices requirements. 
 90.11     Subd. 2.  [SERVICES.] (a) Parents, physicians, other health 
 90.12  care professionals including school nurses, and education and 
 90.13  human services providers jointly must determine appropriate and 
 90.14  necessary services for eligible children with disabilities ages 
 90.15  three to 22.  The services provided to the child under this 
 90.16  section must conform with the child's standardized written 
 90.17  plan.  The governing board of an interagency early intervention 
 90.18  committee must provide those services contained in a child's 
 90.19  individual education plan and those services for which a legal 
 90.20  obligation exists to the extent funding is available. 
 90.21     (b) Nothing in section 120.1703 or section 120.1705 
 90.22  increases or decreases the obligation of the state, county, 
 90.23  regional agency, local school district, or local agency or 
 90.24  organization to pay for education, health care or social 
 90.25  services.  
 90.26     (c) A health plan may not exclude any medically necessary 
 90.27  covered service solely because the service is or could be 
 90.28  identified in a child's individual family service plan, 
 90.29  individual education plan, a plan established under section 504 
 90.30  of the federal Rehabilitation Act of 1973, or a student's 
 90.31  individual health plan. 
 90.32     Subd. 3.  [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 
 90.33  all governing boards of interagency early intervention 
 90.34  committees statewide must implement a coordinated service system 
 90.35  for children up to age five with disabilities consistent with 
 90.36  the requirements of sections 120.1703 and 120.1705 and the 
 91.1   evaluation results from the demonstration projects under section 
 91.2   120.1703, subdivision 5.  Children with disabilities up to the 
 91.3   age of 22 shall be eligible for coordinated services and their 
 91.4   eligibility to receive such services under this section shall be 
 91.5   phased-in over a four-year period as follows: 
 91.6      (1) July 1, 2001, children up to age nine become eligible; 
 91.7      (2) July 1, 2002, children up to age 14 become eligible; 
 91.8   and 
 91.9      (3) July 1, 2003, children up to age 22 become eligible. 
 91.10     Sec. 4.  Minnesota Statutes 1996, section 121.932, is 
 91.11  amended by adding a subdivision to read: 
 91.12     Subd. 7.  [ESTABLISHMENT.] (a) The commissioner of 
 91.13  children, families, and learning shall establish a program to 
 91.14  provide statewide licenses to commercial electronic databases of 
 91.15  periodicals, encyclopedias, and associated reference materials 
 91.16  for school media centers and public libraries.  The commissioner 
 91.17  shall solicit proposals for access licenses to commercial 
 91.18  vendors of the databases.  Responses to those proposals shall be 
 91.19  evaluated by staff of the office of library development and 
 91.20  services, in the department of children, families, and learning, 
 91.21  Minitex staff, and a representative panel of school media 
 91.22  specialists and public librarians. 
 91.23     (b) Access to the selected databases shall be made 
 91.24  available to a school media center or a public library as 
 91.25  defined in Minnesota Statutes, section 134.001, subdivision 2.  
 91.26  With appropriate authentication, any user of a library may have 
 91.27  access to the databases from a remote site. 
 91.28     (c) The commissioner shall charge fees sufficient to 
 91.29  recover the costs of the licenses.  The fees shall be deposited 
 91.30  in the general fund and are appropriated to the commissioner for 
 91.31  the purposes of this subdivision. 
 91.32     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 91.33  126.79, subdivision 6, is amended to read: 
 91.34     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 91.35  graduation achievement program must provide the opportunity for 
 91.36  participating students to complete: 
 92.1      (1) 250 hours each year, not including regular required 
 92.2   classroom hours, in basic education competency skills; 
 92.3      (2) 250 hours each year of service to the community 
 92.4   service; and 
 92.5      (3) 250 hours each year of cultural enrichment and personal 
 92.6   development, including but not limited to adult mentoring; 
 92.7   participating in community cultural events; developing life 
 92.8   skills for use in the home, workplace, and community; and 
 92.9   learning to set goals, manage time, and make appropriate 
 92.10  behavior choices for varying social situations. 
 92.11     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 92.12  126.79, subdivision 7, is amended to read: 
 92.13     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 92.14  student shall receive a monetary stipend for each hour spent in 
 92.15  a program component activity, plus a bonus upon completion of 
 92.16  each component during each year of the program. 
 92.17     (b) An additional amount equal to or greater than each 
 92.18  student's earned stipends and bonuses must be deposited for the 
 92.19  student in a post-secondary opportunities interest-bearing 
 92.20  account, established by the commissioner through the higher 
 92.21  education services office.  A student may, upon graduation from 
 92.22  high school, use the funds accumulated for the student toward 
 92.23  the costs, including tuition, books, and lab fees, of attending 
 92.24  a Minnesota post-secondary institution or participating in a 
 92.25  Minnesota post-secondary program in a career training program.  
 92.26  Funds accumulated for a student shall be available to the 
 92.27  student from the time the student graduates from high school 
 92.28  until ten years after the date the student entered the learn and 
 92.29  earn graduation achievement program.  After ten years, the 
 92.30  commissioner shall close the student's account and any remaining 
 92.31  money in the account shall revert to the general fund. 
 92.32     The commissioner shall establish a procedure for providing 
 92.33  the monetary stipends and bonuses to students.  The commissioner 
 92.34  may delegate this authority to grantees. 
 92.35     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 92.36  126.79, subdivision 8, is amended to read: 
 93.1      Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 93.2   program coordinator must maintain contact with all participating 
 93.3   students and their families; work with the school to link 
 93.4   students with the resources needed to improve their educational 
 93.5   skills; arrange for service to the community service and 
 93.6   cultural enrichment opportunities for students; maintain records 
 93.7   regarding student completion of program component hours; and 
 93.8   perform other administrative duties as necessary.  A program 
 93.9   coordinator must, to the extent possible, agree to remain with 
 93.10  the program for four years to provide continuity of adult 
 93.11  contact to the participating students. 
 93.12     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 93.13  126.79, subdivision 9, is amended to read: 
 93.14     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 93.15  collect information about participating students and a 
 93.16  demographically similar control group and shall evaluate the 
 93.17  short-term and long-term benefits participating students receive 
 93.18  from the learn and earn graduation achievement program, based on 
 93.19  the outcome measures specified in subdivision 2, and any other 
 93.20  criteria established by the commissioner as part of the grant 
 93.21  application process.  The evaluation must include a statistical 
 93.22  comparison of students participating in the program and the 
 93.23  control group.  The commissioner shall track follow 
 93.24  participating students and the control group for a minimum of 
 93.25  six years from the start of the program.  The commissioner shall 
 93.26  submit a preliminary report to the governor and the chairs of 
 93.27  the senate and house committees having jurisdiction over 
 93.28  education and crime prevention by December 15, 2000, regarding 
 93.29  continuation of the learn and earn graduation achievement 
 93.30  program for participating schools and expansion of the program 
 93.31  to additional schools.  The commissioner shall submit a final 
 93.32  report on this initial project by December 15, 2002. 
 93.33     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 93.34  268.665, subdivision 2, is amended to read: 
 93.35     Subd. 2.  [MEMBERSHIP.] The governor's workforce 
 93.36  development council is composed of 33 members appointed by the 
 94.1   governor.  The members may be removed pursuant to section 
 94.2   15.059.  In selecting the representatives of the council, the 
 94.3   governor shall ensure that 50 percent of the members come from 
 94.4   nominations provided by local workforce councils.  Local 
 94.5   education representatives shall come from nominations provided 
 94.6   by local education to employment partnerships.  The 32 33 
 94.7   members shall represent the following sectors:  
 94.8      (a) State agencies:  the following individuals shall serve 
 94.9   on the council:  
 94.10     (1) commissioner of the Minnesota department of economic 
 94.11  security; 
 94.12     (2) commissioner of the Minnesota department of children, 
 94.13  families, and learning; 
 94.14     (3) commissioner of the Minnesota department of human 
 94.15  services; and 
 94.16     (4) commissioner of the Minnesota department of trade and 
 94.17  economic development. 
 94.18     (b) Business and industry:  six individuals shall represent 
 94.19  the business and industry sectors of Minnesota. 
 94.20     (c) Organized labor:  six individuals shall represent labor 
 94.21  organizations of Minnesota. 
 94.22     (d) Community-based organizations:  four individuals shall 
 94.23  represent community-based organizations of Minnesota.  
 94.24  Community-based organizations are defined by the Job Training 
 94.25  Partnership Act as private nonprofit organizations that are 
 94.26  representative of communities or significant segments of 
 94.27  communities and that provide job training services, agencies 
 94.28  serving youth, agencies serving individuals with disabilities, 
 94.29  agencies serving displaced homemakers, union-related 
 94.30  organizations, and employer-related nonprofit organizations and 
 94.31  organizations serving nonreservation Indians and tribal 
 94.32  governments. 
 94.33     (e) Education:  six individuals shall represent the 
 94.34  education sector of Minnesota as follows:  
 94.35     (1) one individual shall represent local public secondary 
 94.36  education; 
 95.1      (2) one individual shall have expertise in design and 
 95.2   implementation of school-based service-learning; 
 95.3      (3) one individual shall represent post-secondary 
 95.4   education; 
 95.5      (4) one individual shall represent secondary/post-secondary 
 95.6   vocational institutions; 
 95.7      (5) the chancellor of the board of trustees of the 
 95.8   Minnesota state colleges and universities; and 
 95.9      (6) one individual shall have expertise in agricultural 
 95.10  education. 
 95.11     (f) Other:  two individuals shall represent other 
 95.12  constituencies including: 
 95.13     (1) units of local government; and 
 95.14     (2) applicable state or local programs. 
 95.15     The speaker and the minority leader of the house of 
 95.16  representatives shall each appoint a representative to serve as 
 95.17  an ex officio member of the council.  The majority and minority 
 95.18  leaders of the senate shall each appoint a senator to serve as 
 95.19  an ex officio member of the council.  After January 1, 1997, the 
 95.20  Minnesota director of the corporation for national service shall 
 95.21  also serve as an ex officio member.  
 95.22     (g) Appointment:  each member shall be appointed for a term 
 95.23  of three years from the first day of January or July immediately 
 95.24  following their appointment.  Elected officials shall forfeit 
 95.25  their appointment if they cease to serve in elected office.  
 95.26     (h) Members of the council are compensated as provided in 
 95.27  section 15.059, subdivision 3. 
 95.28     Sec. 10.  Minnesota Statutes 1996, section 268.665, 
 95.29  subdivision 3, is amended to read: 
 95.30     Subd. 3.  [PURPOSE; DUTIES.] The governor's workforce 
 95.31  development council shall replace the governor's job training 
 95.32  council and assume all of its requirements, duties, and 
 95.33  responsibilities, under the Job Training Partnership Act, United 
 95.34  States Code, title 29, section 1501, et seq.  Additionally, the 
 95.35  workforce development council shall assume the following duties 
 95.36  and responsibilities:  
 96.1      (a) Coordinate the development, implementation, and 
 96.2   evaluation of the statewide education and employment transitions 
 96.3   system under section 126B.01.  Beginning January 1, 1997, the 
 96.4   council shall also coordinate the development, implementation, 
 96.5   and evaluation of the Minnesota youth services programs under 
 96.6   sections 121.704 to 121.709, and the National and Community 
 96.7   Services Act of 1993, United States Code, title 42, section 
 96.8   12501, et seq.  
 96.9      (b) Review the provision of services and the use of funds 
 96.10  and resources under applicable federal human resource programs 
 96.11  and advise the governor on methods of coordinating the provision 
 96.12  of services and the use of funds and resources consistent with 
 96.13  the laws and regulations governing the programs.  For purposes 
 96.14  of this section, applicable federal and state human resource 
 96.15  programs mean the: 
 96.16     (1) Job Training Partnership Act, United States Code, title 
 96.17  29, section 1501, et seq.; 
 96.18     (2) Carl D. Perkins Vocational and Applied Technology 
 96.19  Education Act, United States Code, title 20, section 2301, et 
 96.20  seq.; 
 96.21     (3) National and Community Service Act of 1993, United 
 96.22  States Code, title 42, section 12501, et seq.; 
 96.23     (4) Adult Education Act, United States Code, title 20, 
 96.24  section 1201, et seq.; 
 96.25     (5) Wagner-Peyser Act, United States Code, title 29, 
 96.26  section 49; 
 96.27     (6) Social Security Act, title IV, part F, (JOBS), United 
 96.28  States Code, title 42, section 681, et seq.; 
 96.29     (7) Food Stamp Act of 1977, United States Code, title 7, 
 96.30  section 6(d)(4), Food Stamp Employment and Training Program, 
 96.31  United States Code, title 7, section 2015(d)(4); 
 96.32     (8) programs defined in section 268.0111, subdivisions 4 
 96.33  and 5; and 
 96.34     (9) School to Work Opportunity Act of 1994, Public Law 
 96.35  Number 103-239.  
 96.36     Additional federal and state programs and resources can be 
 97.1   included within the scope of the council's duties if recommended 
 97.2   by the governor after consultation with the council. 
 97.3      (c) Review federal, state, and local education, 
 97.4   post-secondary, job skills training, and youth employment 
 97.5   programs, and make recommendations to the governor and the 
 97.6   legislature for establishing an integrated seamless system for 
 97.7   providing education, service-learning, and work skills 
 97.8   development services to learners and workers of all ages. 
 97.9      (d) Advise the governor on the development and 
 97.10  implementation of statewide and local performance standards and 
 97.11  measures relating to applicable federal human resource programs 
 97.12  and the coordination of performance standards and measures among 
 97.13  programs.  
 97.14     (e) Administer grants to local education and employment 
 97.15  transition partnerships, including implementation grants under 
 97.16  section 126B.01, grants for youth apprenticeship programs under 
 97.17  section 126B.03, and youth employer grants.  Beginning January 
 97.18  1, 1997, administer youthworks grants under sections 121.704 to 
 97.19  121.709; and 
 97.20     (1) coordinate implementation of the education and 
 97.21  employment transitions system under section 126B.01; 
 97.22     (2) promote education and employment transitions programs 
 97.23  and knowledge and skills of entrepreneurship among employers, 
 97.24  workers, youth, and educators, and encourage employers to 
 97.25  provide meaningful work-based learning opportunities; 
 97.26     (3) evaluate and identify exemplary education and 
 97.27  employment transitions programs and provide technical assistance 
 97.28  to local partnerships to replicate the programs throughout the 
 97.29  state; 
 97.30     (4) establish a performance-based quality assurance system 
 97.31  for consistent statewide evaluation of the performance of the 
 97.32  education and employment transitions system at both the state 
 97.33  and local level; 
 97.34     (5) conduct an annual review of each local education and 
 97.35  employment transitions partnership to ensure it adequately meets 
 97.36  the quality assurance standards established as part of the state 
 98.1   quality assurance system; 
 98.2      (6) develop the methods to assess local partnership 
 98.3   effectiveness; 
 98.4      (7) annually publish a report on the findings of the 
 98.5   evaluations of each local education transitions partnership; 
 98.6      (8) promote knowledge and skills of entrepreneurship among 
 98.7   students in kindergarten through grade 12 by sharing information 
 98.8   about the ways new business development contributes to a strong 
 98.9   economy. 
 98.10     (f) Advise the governor on methods to evaluate applicable 
 98.11  federal human resource programs.  
 98.12     (g) Sponsor appropriate studies to identify human 
 98.13  investment needs in Minnesota and recommend to the governor 
 98.14  goals and methods for meeting those needs.  
 98.15     (h) Recommend to the governor goals and methods for the 
 98.16  development and coordination of a human resource system in 
 98.17  Minnesota.  
 98.18     (i) Examine federal and state laws, rules, and regulations 
 98.19  to assess whether they present barriers to achieving the 
 98.20  development of a coordinated human resource system. 
 98.21     (j) Recommend to the governor and to the federal government 
 98.22  changes in state or federal laws, rules, or regulations 
 98.23  concerning employment and training programs that present 
 98.24  barriers to achieving the development of a coordinated human 
 98.25  resource system. 
 98.26     (k) Recommend to the governor and to the federal government 
 98.27  waivers of laws and regulations to promote coordinated service 
 98.28  delivery. 
 98.29     (l) Sponsor appropriate studies and prepare and recommend 
 98.30  to the governor a strategic plan which details methods for 
 98.31  meeting Minnesota's human investment needs and for developing 
 98.32  and coordinating a state human resource system.  
 98.33     (m) Develop program guidelines and recommend grant approval 
 98.34  procedures to the department of children, families, and learning 
 98.35  for grants under section 126B.01, grants for youth 
 98.36  apprenticeship programs under section 126B.03, and youth 
 99.1   employer grants and youthworks grants under sections 121.704 to 
 99.2   121.709. 
 99.3      Sec. 11.  Laws 1997, First Special Session chapter 4, 
 99.4   article 2, section 51, subdivision 33, is amended to read: 
 99.5      Subd. 33.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
 99.6   For the learn and earn graduation achievement program according 
 99.7   to Minnesota Statutes, section 126.79: 
 99.8        $1,000,000     .....     1998
 99.9        $1,000,000     .....     1999
 99.10     Any balance in the first year does not cancel but is 
 99.11  available in the second year. 
 99.12     This appropriation may be used for administrative and other 
 99.13  start-up costs for applications from nonprofit agencies.  
 99.14  However, no more than 25 percent of the appropriation may be 
 99.15  used for this purpose. 
 99.16     Sec. 12.  Laws 1997, First Special Session chapter 4, 
 99.17  article 9, section 11, is amended to read: 
 99.18     Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
 99.19     (a) For fiscal year 1998 only, the allowance in Minnesota 
 99.20  Statutes, section 124A.22, subdivision 10, paragraph (a), is 
 99.21  increased by: 
 99.22     (1) $24 per pupil unit; or 
 99.23     (2) the lesser of $25,000 or $80 per pupil unit. 
 99.24     Revenue received under this section must be used according 
 99.25  to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
 99.26  (15), (18), (19), (23), and (24). 
 99.27     (b) For the purposes of paragraph (a), "pupil unit" means 
 99.28  fund balance pupil unit as defined in Minnesota Statutes, 
 99.29  section 124A.26, subdivision 1, excluding pupil units 
 99.30  attributable to shared time pupils. 
 99.31     Sec. 13.  Laws 1997, First Special Session chapter 4, 
 99.32  article 3, section 25, subdivision 4, is amended to read: 
 99.33     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 99.34  GRANTS.] For education and employment transitions program: 
 99.35       $4,750,000      .....      1998
 99.36       $4,750,000      .....      1999 
100.1      $500,000 each year is for development of MnCEPs, an 
100.2   Internet-based education and employment information system.  
100.3   These are one-time funds. 
100.4      $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 
100.5   year 1999 is for a rebate program for qualifying employers who 
100.6   employ less than 250 employees, who offer youth internships to 
100.7   educators.  An employer may apply for a rebate of up to $500 for 
100.8   each paid youth internship and each educator internship, and up 
100.9   to $3,000 for each paid youth apprenticeship.  The commissioner 
100.10  shall determine the application and payment process. 
100.11     $450,000 each year is for youth apprenticeship program 
100.12  grants. 
100.13     $225,000 each year is for youth entrepreneurship grants 
100.14  under Minnesota Statutes, section 121.72.  Of this amount, 
100.15  $25,000 each year is for the high school student 
100.16  entrepreneurship program in independent school district No. 175, 
100.17  Westbrook.  This appropriation shall be used for expenses, 
100.18  including, but not limited to, salaries, travel, seminars, 
100.19  equipment purchases, contractual expenses, and other expenses 
100.20  related to the student-run business. 
100.21     $125,000 each year is for youth employer grants under Laws 
100.22  1995, First Special Session chapter 3, article 4, section 28. 
100.23     $150,000 each year is for parent and community awareness 
100.24  training. 
100.25     $825,000 $775,000 each year is for the development of 
100.26  career assessment benchmarks, lifework portfolios, industry 
100.27  skill standards, curriculum development, career academies, and 
100.28  career programs for elementary, middle school, and at-risk 
100.29  learners. 
100.30     $400,000 each year is for state level activities, including 
100.31  the governor's workforce council. 
100.32     $275,000 each year is for development of occupational 
100.33  information. 
100.34     $300,000 each year is for a grant to be made available to a 
100.35  county government that has established school-to-work projects 
100.36  with schools located in a city of the first class.  These grants 
101.1   must be used to expand the number of at-risk students 
101.2   participating in these school-to-work projects.  Priority must 
101.3   be given to projects that demonstrate collaboration between 
101.4   among private and public employers, collective bargaining 
101.5   representatives, school officials, and the county government and 
101.6   which prepare at-risk students for long-term employment with 
101.7   private sector employers paying a minimum of 150 percent of the 
101.8   federal poverty level for a family of four and with the majority 
101.9   of their employees in collective bargaining units. 
101.10     $250,000 each year is for agricultural school-to-work 
101.11  grants. 
101.12     $25,000 is for a grant to the Minnesota Historical Society 
101.13  for money canceled in fiscal year 1997. 
101.14     $50,000 each year is awarded to the Minnesota valley action 
101.15  council, the fiscal agent for the south central tri-county 
101.16  school-to-work partnership, to serve as a model for the state in 
101.17  demonstrating the capability of a multicounty partnership to 
101.18  develop both a resource map for sustaining all learners and an 
101.19  assessment process for employer, labor, and community 
101.20  organizations involved in the school-to-work initiative.  The 
101.21  partnership shall submit a report to the commissioner and to the 
101.22  governor's workforce development council by September 1, 1999, 
101.23  that includes the resource map, the results of the assessments, 
101.24  and models for multicounty partnerships to replicate these 
101.25  activities. 
101.26     Any balance remaining in the first year does not cancel but 
101.27  is available in the second year. 
101.28     Sec. 14.  Laws 1997, chapter 157, section 71, is amended to 
101.29  read: 
101.30     Sec. 71.  [SCHOOL BANK PILOT PROJECT.] 
101.31     (a) A school bank sponsored by independent school district 
101.32  No. 31, Bemidji, or by independent school district No. 508, St. 
101.33  Peter, that meets all requirements of paragraph (b) is not 
101.34  subject to Minnesota Statutes, section 47.03, subdivision 1, or 
101.35  to any other statute or rule that regulates banks, other 
101.36  financial institutions, or currency exchanges. 
102.1      (b) To qualify under paragraph (a), the school bank must: 
102.2      (1) be operated as part of a high school educational 
102.3   program and under guidelines adopted by the school board; 
102.4      (2) be advised on a regular basis by a one or more 
102.5   state-chartered or federally-chartered financial institution 
102.6   institutions, but not owned or operated by that any financial 
102.7   institution; 
102.8      (3) be located on school premises and have as customers 
102.9   only students enrolled in, or employees of, the school in which 
102.10  it is located; and 
102.11     (4) have a written commitment from the school board, 
102.12  guaranteeing reimbursement of any depositor's funds lost due to 
102.13  insolvency of the school bank. 
102.14     (c) Funds of a school bank that meets the requirements of 
102.15  this section are not school district or other public funds for 
102.16  purposes of any state law governing the use or investment of 
102.17  school district or other public funds. 
102.18     (d) The school district shall annually file with the 
102.19  commissioner of commerce a report, prepared by the students and 
102.20  teachers involved, summarizing the operation of the school bank. 
102.21     (e) This section expires June 30, 2000.  The commissioner 
102.22  of commerce shall, no later than December 15, 1999, provide a 
102.23  written report to the legislature regarding this pilot project 
102.24  and any recommended legislation regarding school banks. 
102.25     Sec. 15.  [LIBRARY FOR THE BLIND; APPROPRIATION.] 
102.26     $60,000 is appropriated in fiscal year 1999 from the 
102.27  general fund to the department of children, families, and 
102.28  learning for the purchase and installation of online catalog 
102.29  software for the Minnesota library for the blind and physically 
102.30  handicapped. 
102.31     Sec. 16.  [DEADLINE.] 
102.32     The governor shall convene the interagency committee 
102.33  required by Minnesota Statutes, section 120.1703, subdivision 4, 
102.34  by July 1, 1998. 
102.35     Sec. 17.  [APPROPRIATION; INTERVENTION DEMONSTRATION 
102.36  PROJECTS.] 
103.1      $250,000 is appropriated from the general fund in fiscal 
103.2   year 1999 to the commissioner of children, families, and 
103.3   learning for the purpose of establishing five voluntary 
103.4   interagency intervention demonstration projects under Minnesota 
103.5   Statutes, section 120.1703, subdivision 5.  The commissioner 
103.6   shall allocate the grant awards according to the implementation 
103.7   needs of the grant recipients. 
103.8      Sec. 18.  [EFFECTIVE DATE.] 
103.9      Sections 11, 13, 14, and 16 are effective the day following 
103.10  final enactment. 
103.11     Section 12 is effective for revenue for fiscal year 1998. 
103.12                             ARTICLE 4
103.13                    FACILITIES AND ORGANIZATION
103.14     Section 1.  Minnesota Statutes 1997 Supplement, section 
103.15  121.15, subdivision 6, is amended to read: 
103.16     Subd. 6.  [REVIEW AND COMMENT.] A school district, a 
103.17  special education cooperative, or a cooperative unit of 
103.18  government, as defined in section 123.35, subdivision 19b, 
103.19  paragraph (d), must not initiate an installment contract for 
103.20  purchase or a lease agreement, hold a referendum for bonds, nor 
103.21  solicit bids for new construction, expansion, or remodeling of 
103.22  an educational facility that requires an expenditure in excess 
103.23  of $400,000 per school site prior to review and comment by the 
103.24  commissioner.  Facility maintenance projects funded with general 
103.25  education aid and levy or health and safety revenue are exempt 
103.26  from this provision unless the commissioner has issued an 
103.27  unfavorable or negative review and comment on a proposal to 
103.28  remodel or expand the school site.  Facility maintenance 
103.29  projects include roof replacement, boiler replacement, wiring 
103.30  for technology, and other projects designed to replace and 
103.31  upgrade components of the building.  A school board shall not 
103.32  separate portions of a single project into components to avoid 
103.33  the requirements of this subdivision.  
103.34     Sec. 2.  Minnesota Statutes 1996, section 124.239, as 
103.35  amended by Laws 1997, chapter 231, article 1, sections 1 to 3, 
103.36  and Laws 1997, First Special Session chapter 5, sections 38 to 
104.1   41, is amended to read: 
104.2      124.239 [ALTERNATIVE FACILITIES BONDING AND LEVY REVENUE 
104.3   PROGRAM.] 
104.4      Subdivision 1.  [TO QUALIFY.] An independent or special 
104.5   school district qualifies to participate in the alternative 
104.6   facilities bonding and levy revenue program if the district has: 
104.7      (1) more than 66 students per grade; 
104.8      (2) over 1,850,000 square feet of space; 
104.9      (3) average age of building space is 20 15 years or older; 
104.10     (4) insufficient funds from projected health and safety 
104.11  revenue and capital facilities revenue to meet the requirements 
104.12  for deferred maintenance, to make accessibility improvements, or 
104.13  to make fire, safety, or health repairs; and 
104.14     (5) a ten-year facility plan approved by the commissioner 
104.15  according to subdivision 2. 
104.16     Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
104.17  have a ten-year facility plan approved by the commissioner that 
104.18  includes an inventory of projects and costs that would be 
104.19  eligible for: 
104.20     (1) health and safety revenue; 
104.21     (2) disabled access levy; and 
104.22     (3) deferred capital expenditures and maintenance projects 
104.23  necessary to prevent further erosion of facilities. 
104.24     (b) The school district must: 
104.25     (1) annually update the plan; 
104.26     (2) biennially submit a facility maintenance plan; and 
104.27     (3) indicate whether the district will issue bonds to 
104.28  finance the plan or levy annually include program revenue under 
104.29  the facilities equalization program, under section 124.95, for 
104.30  the costs. 
104.31     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
104.32  approval of its school board and the commissioner, may issue 
104.33  general obligation bonds under this section to finance approved 
104.34  facilities plans.  Chapter 475, except sections 475.58 and 
104.35  475.59, must be complied with.  The district may levy under 
104.36  subdivision 5 for the debt service revenue.  The authority to 
105.1   issue bonds under this section is in addition to any bonding 
105.2   authority authorized by this chapter, or other law.  The amount 
105.3   of bonding authority authorized under this section must be 
105.4   disregarded in calculating the bonding or net debt limits of 
105.5   this chapter, or any other law other than section 475.53, 
105.6   subdivision 4. 
105.7      Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
105.8   district that participates in the alternative facilities bonding 
105.9   and levy revenue program is not eligible to levy and cannot 
105.10  receive aid for revenue under sections 124.83 and 124.84 for any 
105.11  capital projects funded under this section.  A district may levy 
105.12  and receive aid for health and safety receive revenue for 
105.13  environmental management costs and health and safety regulatory, 
105.14  hazard assessment, record keeping, and maintenance programs as 
105.15  defined in section 124.494, subdivision 2, and approved by the 
105.16  commissioner. 
105.17     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
105.18  local board approval, may levy receive revenue for costs related 
105.19  to an approved facility plan as follows:  
105.20     (a) if the district has indicated to the commissioner that 
105.21  bonds will be issued, the district may levy receive revenue for 
105.22  the principal and interest payments on outstanding bonds issued 
105.23  according to subdivision 3 after reduction for any alternative 
105.24  facilities aid receivable under subdivision 5a; or 
105.25     (b) if the district has indicated to the commissioner that 
105.26  the plan will be funded through levy, the district may levy 
105.27  according to the schedule approved in the plan. 
105.28     Subd. 5a.  [ALTERNATIVE FACILITIES AID.] A district's 
105.29  alternative facilities aid is the amount equal to the district's 
105.30  annual debt service costs, provided that the amount does not 
105.31  exceed the amount certified to be levied for those purposes for 
105.32  taxes payable in 1997. 
105.33     Subd. 5b.  [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 
105.34  amount not to exceed $17,000,000 is appropriated from the 
105.35  general fund to the commissioner of children, families, and 
105.36  learning for fiscal year 2000 and each year thereafter for 
106.1   payment of alternative facilities aid under subdivision 5a.  The 
106.2   2000 appropriation includes $1,700,000 for 1999 and $15,300,000 
106.3   for 2000. 
106.4      (b) The appropriation in paragraph (a) must be reduced by 
106.5   the amount of any money specifically appropriated for the same 
106.6   purpose in any year from any state fund. 
106.7      Subd. 6.  [SEPARATE ACCOUNT.] A district must establish a 
106.8   separate account under the uniform financial accounting and 
106.9   reporting standards (UFARS) for this program.  If the district's 
106.10  levy revenue exceeds the necessary interest and principal 
106.11  payments and noncapital health and safety costs, the district 
106.12  must reserve the revenue to replace future bonding authority, 
106.13  prepay bonds authorized under this program, or make payments on 
106.14  principal and interest. 
106.15     Sec. 3.  Minnesota Statutes 1996, section 124.755, 
106.16  subdivision 1, is amended to read: 
106.17     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
106.18  section, the term "debt obligation" means either:  (1) a tax or 
106.19  aid anticipation certificate of indebtedness; (2) a certificate 
106.20  of participation issued under section 124.91, subdivision 7; or 
106.21  (3) a general obligation bond.  
106.22     Sec. 4.  Minnesota Statutes 1996, section 124.83, 
106.23  subdivision 8, is amended to read: 
106.24     Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
106.25  COST.] (a) A district's cost for health, safety, and 
106.26  environmental management is limited to the lesser of:  
106.27     (1) actual cost to implement their plan; or 
106.28     (2) an amount determined by the commissioner, based on 
106.29  enrollment, building age, and size. 
106.30     (b) Effective July 1, 1993, The department of children, 
106.31  families, and learning may contract with regional service 
106.32  organizations, private contractors, Minnesota safety council, or 
106.33  state agencies to provide management assistance to school 
106.34  districts for health and safety capital projects.  Management 
106.35  assistance is the development of written programs for the 
106.36  identification, recognition and control of hazards, and 
107.1   prioritization and scheduling of district health and safety 
107.2   capital projects. 
107.3      (c) Notwithstanding paragraph (b), the department may 
107.4   approve revenue, up to the limit defined in paragraph (a) for 
107.5   districts having an approved health, safety, and environmental 
107.6   management plan that uses district staff to accomplish 
107.7   coordination and provided services. 
107.8      Sec. 5.  Minnesota Statutes 1996, section 124.84, 
107.9   subdivision 3, is amended to read: 
107.10     Subd. 3.  [LEVY AUTHORITY REVENUE.] The district may levy 
107.11  be eligible for revenue up to $300,000 under this section, as 
107.12  approved by the commissioner.  The approved amount may be levied 
107.13  received over eight or fewer years. 
107.14     Sec. 6.  Minnesota Statutes 1996, section 124.84, 
107.15  subdivision 4, is amended to read: 
107.16     Subd. 4.  [LEVY AUTHORITY REVENUE IN COMBINED DISTRICTS.] 
107.17  Notwithstanding subdivision 3, a district that has combined or 
107.18  consolidated may levy receive revenue up to 50 percent times 
107.19  $300,000 times the number of former districts that operated on 
107.20  June 30, 1991, in the area that now makes up the combined or 
107.21  consolidated district.  The approved amount is reduced by any 
107.22  amount levied under subdivision 3 in the consolidated or 
107.23  combined district or in the former districts that make up the 
107.24  consolidated or combined district.  Levy authority under this 
107.25  subdivision expires at the same time as levy authority under 
107.26  subdivision 3. 
107.27     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
107.28  124.91, subdivision 1, is amended to read: 
107.29     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
107.30  district finds it economically advantageous to rent or lease a 
107.31  building or land for any instructional purposes or for school 
107.32  storage or furniture repair, and it determines that the 
107.33  operating capital revenue authorized under section 124A.22, 
107.34  subdivision 10, is insufficient for this purpose, it may apply 
107.35  to the commissioner for permission to make an additional capital 
107.36  expenditure levy to increase its equalized facilities revenue 
108.1   under section 124.95, subdivision 4, for this purpose.  An 
108.2   application for permission to levy under this subdivision 
108.3   increase the equalized facilities revenue must contain financial 
108.4   justification for the proposed levy increase, the terms and 
108.5   conditions of the proposed lease, and a description of the space 
108.6   to be leased and its proposed use.  
108.7      (b) The criteria for approval of applications to levy under 
108.8   this subdivision must include:  the reasonableness of the price, 
108.9   the appropriateness of the space to the proposed activity, the 
108.10  feasibility of transporting pupils to the leased building or 
108.11  land, conformity of the lease to the laws and rules of the state 
108.12  of Minnesota, and the appropriateness of the proposed lease to 
108.13  the space needs and the financial condition of the district.  
108.14  The commissioner must not authorize a levy revenue under this 
108.15  subdivision in an amount greater than the cost to the district 
108.16  of renting or leasing a building or land for approved purposes.  
108.17  The proceeds of this levy must not be used for custodial or 
108.18  other maintenance services.  A district may not levy receive 
108.19  revenue under this subdivision for the purpose of leasing or 
108.20  renting a district-owned building to itself. 
108.21     (c) For agreements finalized after July 1, 1997, a district 
108.22  may not levy receive revenue under this subdivision for the 
108.23  purpose of leasing:  (1) a newly constructed building used 
108.24  primarily for regular kindergarten, elementary, or secondary 
108.25  instruction; or (2) a newly constructed building addition or 
108.26  additions used primarily for regular kindergarten, elementary, 
108.27  or secondary instruction that contains more than 20 percent of 
108.28  the square footage of the previously existing building. 
108.29     (d) The total levy revenue under this subdivision for a 
108.30  district for any year must not exceed $100 times the actual 
108.31  pupil units for the fiscal year to which the levy is 
108.32  attributable. 
108.33     Sec. 8.  Minnesota Statutes 1996, section 124.91, 
108.34  subdivision 2, is amended to read: 
108.35     Subd. 2.  [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 
108.36  A district may annually levy increase the amount of its 
109.1   equalized facilities revenue needed to make payments required by 
109.2   a lease purchase agreement, installment purchase agreement, or 
109.3   other deferred payment agreement authorized by Minnesota 
109.4   Statutes 1989 Supplement, section 465.71, if:  
109.5      (1) the agreement was approved by the commissioner before 
109.6   July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
109.7   section 275.125, subdivision 11d; or 
109.8      (2) the district levied in 1989 for the payments. 
109.9      Sec. 9.  Minnesota Statutes 1996, section 124.91, 
109.10  subdivision 4, is amended to read: 
109.11     Subd. 4.  [COOPERATING DISTRICTS.] A district that has an 
109.12  agreement according to section 122.535 or 122.541 may levy 
109.13  increase its equalized facilities revenue under section 124.95, 
109.14  subdivision 4, for the repair costs, as approved by the 
109.15  department of children, families, and learning, of a building 
109.16  located in another district that is a party to the agreement. 
109.17     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
109.18  124.91, subdivision 5, is amended to read: 
109.19     Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
109.20  with its central administrative office located within economic 
109.21  development region one, two, three, four, five, six, seven, 
109.22  eight, nine, and ten may apply to the commissioner of children, 
109.23  families, and learning for ITV revenue up to the greater of .5 
109.24  percent of the adjusted net tax capacity of the district or 
109.25  $25,000.  Eligible interactive television expenditures include 
109.26  the construction, maintenance, and lease costs of an interactive 
109.27  television system for instructional purposes.  An eligible 
109.28  school district that has completed the construction of its 
109.29  interactive television system may also purchase computer 
109.30  hardware and software used primarily for instructional purposes 
109.31  and access to the Internet provided that its total expenditures 
109.32  for interactive television maintenance and lease costs and for 
109.33  computer hardware and software under this subdivision do not 
109.34  exceed its interactive television revenue for fiscal year 1998.  
109.35  The approval by the commissioner of children, families, and 
109.36  learning and the application procedures set forth in subdivision 
110.1   1 shall apply to the revenue in this subdivision.  In granting 
110.2   the approval, the commissioner must consider whether the 
110.3   district is maximizing efficiency through peak use and off-peak 
110.4   use pricing structures. 
110.5      (b) To obtain ITV revenue, a district may levy an amount 
110.6   not to exceed the district's ITV revenue times the lesser of one 
110.7   or the ratio of: 
110.8      (1) the quotient derived by dividing the adjusted net tax 
110.9   capacity of the district for the year before the year the levy 
110.10  is certified by the actual pupil units in the district for the 
110.11  year to which the levy is attributable; to 
110.12     (2) 100 percent of the equalizing factor as defined in 
110.13  section 124A.02, subdivision 8, for the year to which the levy 
110.14  is attributable increase its equalized facilities revenue under 
110.15  section 124.95, subdivision 4. 
110.16     (c) A district's ITV aid is the difference between its ITV 
110.17  revenue and the ITV levy. 
110.18     (d) The revenue in the first year after reorganization for 
110.19  a district that has reorganized under section 122.22, 122.23, or 
110.20  122.241 to 122.247 shall be the greater of: 
110.21     (1) the revenue computed for the reorganized district under 
110.22  paragraph (a), or 
110.23     (2)(i) for two districts that reorganized, 75 percent of 
110.24  the revenue computed as if the districts involved in the 
110.25  reorganization were separate, or 
110.26     (ii) for three or more districts that reorganized, 50 
110.27  percent of the revenue computed as if the districts involved in 
110.28  the reorganization were separate. 
110.29     (e) (d) The revenue in paragraph (d) (c) is increased by 
110.30  the difference between the initial revenue and ITV lease costs 
110.31  for leases that had been entered into by the preexisting 
110.32  districts on the effective date of the consolidation or 
110.33  combination and with a term not exceeding ten years.  This 
110.34  increased revenue is only available for the remaining term of 
110.35  the lease.  However, in no case shall the revenue exceed the 
110.36  amount available had the preexisting districts received revenue 
111.1   separately. 
111.2      (f) (e) Effective for fiscal year 2000, the revenue under 
111.3   this section shall be 75 percent of the amount determined in 
111.4   paragraph (a); for fiscal year 2001, 50 percent of the amount in 
111.5   paragraph (a); and for fiscal year 2002, 25 percent of the 
111.6   amount in paragraph (a). 
111.7      (g) (f) This section expires effective for revenue for 
111.8   fiscal year 2003, or when leases in existence on the effective 
111.9   date of Laws 1997, First Special Session chapter 4, expire.  
111.10     Sec. 11.  Minnesota Statutes 1996, section 124.91, 
111.11  subdivision 6, is amended to read: 
111.12     Subd. 6.  [ENERGY CONSERVATION.] For loans existing on 
111.13  January 1, 1998, the school district may annually levy include 
111.14  as revenue under section 124.95, without the approval of a 
111.15  majority of the voters in the district, an amount sufficient to 
111.16  repay the annual principal and interest of the loan made 
111.17  pursuant to sections 216C.37 and 298.292 to 298.298.  For energy 
111.18  loans executed after January 1, 1998, school districts must 
111.19  annually transfer from the general fund to the debt redemption 
111.20  fund the amount sufficient to pay interest and principal on the 
111.21  bonds.  
111.22     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
111.23  124.91, subdivision 7, as amended by Laws 1997, Third Special 
111.24  Session chapter 3, section 27, is amended to read: 
111.25     Subd. 7.  [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 
111.26  application to, and approval by, the commissioner in accordance 
111.27  with the procedures and limits in subdivision 1, paragraphs (a) 
111.28  and (b), a district, as defined in this subdivision, may: 
111.29     (1) purchase real or personal property under an installment 
111.30  contract or may lease real or personal property with an option 
111.31  to purchase under a lease purchase agreement, by which 
111.32  installment contract or lease purchase agreement title is kept 
111.33  by the seller or vendor or assigned to a third party as security 
111.34  for the purchase price, including interest, if any; and 
111.35     (2) annually levy increase its equalized facilities revenue 
111.36  under section 124.95, subdivision 4, by the amounts necessary to 
112.1   pay the district's obligations under the installment contract or 
112.2   lease purchase agreement. 
112.3      (b) The obligation created by the installment contract or 
112.4   the lease purchase agreement must not be included in the 
112.5   calculation of net debt for purposes of section 475.53, and does 
112.6   not constitute debt under other law.  An election is not 
112.7   required in connection with the execution of the installment 
112.8   contract or the lease purchase agreement. 
112.9      (c) The proceeds of the levy equalized facilities revenue 
112.10  increase authorized by this subdivision must not be used to 
112.11  acquire a facility to be primarily used for athletic or school 
112.12  administration purposes. 
112.13     (d) For the purposes of this subdivision, "district" means: 
112.14     (1) a school district required to have a comprehensive plan 
112.15  for the elimination of segregation whose plan has been 
112.16  determined by the commissioner to be in compliance with the 
112.17  state board of education rules relating to equality of 
112.18  educational opportunity and school desegregation; or 
112.19     (2) a school district that participates in a joint program 
112.20  for interdistrict desegregation with a district defined in 
112.21  clause (1) if the facility acquired under this subdivision is to 
112.22  be primarily used for the joint program. 
112.23     (e) Notwithstanding subdivision 1, the prohibition against 
112.24  a levy by a district to lease receiving revenue for the purpose 
112.25  of leasing or rent renting a district-owned building to itself 
112.26  does not apply to levies revenues otherwise authorized by this 
112.27  subdivision. 
112.28     (f) For the purposes of this subdivision, any references in 
112.29  subdivision 1 to building or land shall include personal 
112.30  property. 
112.31     Sec. 13.  Minnesota Statutes 1996, section 124.95, as 
112.32  amended by Laws 1997, First Special Session chapter 4, article 
112.33  4, section 20, is amended to read: 
112.34     124.95 [DEBT SERVICE FACILITIES EQUALIZATION PROGRAM.] 
112.35     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
112.36  section, the eligible debt service facilities revenue of a 
113.1   district is defined as follows: 
113.2      (1) the amount needed to produce between five and six 
113.3   percent in excess of the amount needed to meet when due the 
113.4   principal and interest payments on the obligations of the 
113.5   district for eligible projects according to subdivision 2, 
113.6   including the amounts necessary for repayment of energy loans 
113.7   according to section 216C.37 or sections 298.292 to 298.298 
113.8   124.91, subdivision 6, debt service loans and capital loans, 
113.9   lease purchase payments under section 124.91, subdivisions 2 and 
113.10  3, alternative facilities levies revenue under section 124.239, 
113.11  subdivision 5, historic building revenue, under section 124.825, 
113.12  subdivision 2; health and safety revenue, under section 124.83, 
113.13  subdivision 3; handicapped access and fire safety revenue, under 
113.14  section 124.84, subdivision 3; building lease revenue, under 
113.15  section 124.91, subdivision 1; cooperative building repair 
113.16  revenue, under section 124.91, subdivision 4; and interactive 
113.17  television revenue, under section 124.91, subdivision 5, minus 
113.18     (2) the amount of debt service excess levy reduction for 
113.19  that school year calculated according to the procedure 
113.20  established by the commissioner. 
113.21     (b) The obligations in this paragraph are excluded from 
113.22  eligible debt service facilities revenue: 
113.23     (1) obligations under section 124.2445; 
113.24     (2) the part of debt service principal and interest paid 
113.25  from the taconite environmental protection fund or northeast 
113.26  Minnesota economic protection trust; 
113.27     (3) obligations issued under Laws 1991, chapter 265, 
113.28  article 5, section 18, as amended by Laws 1992, chapter 499, 
113.29  article 5, section 24; and 
113.30     (4) obligations under section 124.2455. 
113.31     (c) For purposes of this section, if a preexisting school 
113.32  district reorganized under section 122.22, 122.23, or 122.241 to 
113.33  122.248 is solely responsible for retirement of the preexisting 
113.34  district's bonded indebtedness, capital loans or debt service 
113.35  loans, debt service facilities equalization aid must be computed 
113.36  separately for each of the preexisting school districts. 
114.1      Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
114.2   district's debt service levy facilities revenue qualify for debt 
114.3   service facilities equalization: 
114.4      (1) debt service for repayment of principal and interest on 
114.5   bonds issued before July 2, 1992; 
114.6      (2) debt service for bonds refinanced after July 1, 1992, 
114.7   if the bond schedule has been approved by the commissioner and, 
114.8   if necessary, adjusted to reflect a 20-year maturity schedule; 
114.9   and 
114.10     (3) debt service for bonds issued after July 1, 1992, for 
114.11  construction projects that have received a positive review and 
114.12  comment according to section 121.15, if the commissioner has 
114.13  determined that the district has met the criteria under section 
114.14  124.431, subdivision 2, and if the bond schedule has been 
114.15  approved by the commissioner and, if necessary, adjusted to 
114.16  reflect a 20-year maturity schedule; 
114.17     (4) alternative facilities revenue, according to section 
114.18  124.239, subdivision 5; 
114.19     (5) historic building revenue, according to section 
114.20  124.825, subdivision 2; 
114.21     (6) health and safety revenue, according to section 124.83, 
114.22  subdivision 3; 
114.23     (7) handicapped access and fire safety revenue, according 
114.24  to section 124.84, subdivision 3; 
114.25     (8) building lease revenue, according to section 124.91, 
114.26  subdivision 1, excluding revenue for leases for land or 
114.27  facilities for athletic or other extracurricular activities; 
114.28     (9) interactive television revenue, according to section 
114.29  124.91, subdivision 5; and 
114.30     (10) cooperative building repair revenue, according to 
114.31  section 124.91, subdivision 4. 
114.32     (b) The criterion in section 124.431, subdivision 2, 
114.33  paragraph (a), clause (2), shall be considered to have been met 
114.34  if the district in the fiscal year in which the bonds are 
114.35  authorized at an election conducted under chapter 475: 
114.36     (i) if grades 9 through 12 are to be served by the 
115.1   facility, and an average of at least 66 pupils per grade in 
115.2   these grades are served; or 
115.3      (ii) is eligible for elementary or secondary sparsity 
115.4   revenue. 
115.5      (c) The criterion in section 124.431, subdivision 2, 
115.6   paragraph (a), clause (2), shall also be considered to have been 
115.7   met if the construction project under review serves students in 
115.8   kindergarten to grade 8.  Only the debt service levy for that 
115.9   portion of the facility serving students in prekindergarten to 
115.10  grade 8, as determined by the commissioner, shall be eligible 
115.11  for debt service equalization under this paragraph. 
115.12     (d) The criterion described in section 124.431, subdivision 
115.13  2, paragraph (a), clause (9), does not apply to bonds authorized 
115.14  by elections held before July 1, 1992. 
115.15     (e) For the purpose of this subdivision the department 
115.16  shall determine the eligibility for sparsity at the location of 
115.17  the new facility, or the site of the new facility closest to the 
115.18  nearest operating school if there is more than one new facility. 
115.19     (f) Notwithstanding paragraphs (a) to (e), debt service for 
115.20  repayment of principal and interest on bonds issued after July 
115.21  1, 1997, does not qualify for debt service facilities 
115.22  equalization aid unless the primary purpose of the facility is 
115.23  to serve students in kindergarten through grade 12. 
115.24     Subd. 2a.  [NOTIFICATION.] A district eligible for debt 
115.25  service facilities equalization revenue under subdivision 2 must 
115.26  notify the commissioner of the amount of its intended debt 
115.27  service facilities equalization revenue calculated under 
115.28  subdivision 1 for all bonds sold prior to the notification by 
115.29  July 1 of the calendar year the levy is certified. 
115.30     Subd. 3.  [DEBT SERVICE FACILITIES EQUALIZATION REVENUE.] 
115.31  (a) For fiscal years 1995 and later, the debt service facilities 
115.32  equalization revenue of a district equals the eligible debt 
115.33  service facilities equalization revenue minus the amount raised 
115.34  by a levy of ten nine percent times the adjusted net tax 
115.35  capacity of the district. 
115.36     (b) For fiscal year 1993, debt service equalization revenue 
116.1   equals one-third of the amount calculated in paragraph (a). 
116.2      (c) For fiscal year 1994, debt service equalization revenue 
116.3   equals two-thirds of the amount calculated in paragraph (a). 
116.4      Subd. 4.  [EQUALIZED DEBT SERVICE FACILITIES LEVY.] To 
116.5   obtain debt service facilities equalization revenue, a district 
116.6   must levy an amount not to exceed the district's debt service 
116.7   facilities equalization revenue times the lesser of one or the 
116.8   ratio of: 
116.9      (1) the quotient derived by dividing the adjusted net tax 
116.10  capacity of the district for the year before the year the levy 
116.11  is certified by the actual pupil units in the district for the 
116.12  school year ending in the year prior to the year the levy is 
116.13  certified; to 
116.14     (2) $4,707.50. 
116.15     Subd. 5.  [DEBT SERVICE FACILITIES EQUALIZATION AID.] A 
116.16  district's debt service facilities equalization aid is the 
116.17  difference between the debt service facilities equalization 
116.18  revenue and the equalized debt service facilities levy. If the 
116.19  amount of debt service facilities equalization aid actually 
116.20  appropriated for the fiscal year in which this calculation is 
116.21  made is insufficient to fully fund debt service facilities 
116.22  equalization aid, the commissioner shall prorate the amount of 
116.23  aid across all eligible districts. 
116.24     Subd. 6.  [DEBT SERVICE FACILITIES EQUALIZATION AID PAYMENT 
116.25  SCHEDULE.] Debt service Facilities equalization aid must be paid 
116.26  as follows:  30 percent before September 15, 30 percent before 
116.27  December 15, 25 percent before March 15, and a final payment of 
116.28  15 percent by July 15 of the subsequent fiscal year according to 
116.29  section 124.195, subdivision 7. 
116.30     Subd. 7.  [DEBT SERVICE PRIORITY.] Of the aid paid under 
116.31  this section, the state must first allocate the amount 
116.32  attributable to obligations under chapter 475.  Remaining aid 
116.33  may be used for other purposes of this section. 
116.34     Subd. 8.  [PRORATION.] In the event that the alternative 
116.35  facilities aid available for any year is prorated, a district 
116.36  having its aid prorated may levy an additional amount equal to 
117.1   the amount not paid by the state due to proration. 
117.2      Sec. 14.  Minnesota Statutes 1997 Supplement, section 
117.3   124.961, is amended to read: 
117.4      124.961 [DEBT SERVICE FACILITIES APPROPRIATION.] 
117.5      (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 
117.6   year 1999, and $38,390,000 in fiscal year 2000 and each year 
117.7   thereafter is appropriated from the general fund to the 
117.8   commissioner of children, families, and learning for payment 
117.9   of debt service facilities equalization aid under section 
117.10  124.95.  The 2000 appropriation includes $3,842,000 for 1999 and 
117.11  $34,548,000 for 2000. 
117.12     (b) The appropriations in paragraph (a) must be reduced by 
117.13  the amount of any money specifically appropriated for the same 
117.14  purpose in any year from any state fund. 
117.15     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
117.16  124A.22, subdivision 11, is amended to read: 
117.17     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
117.18  operating capital revenue may be used only for the following 
117.19  purposes: 
117.20     (1) to acquire land for school purposes; 
117.21     (2) to acquire or construct buildings for school purposes, 
117.22  up to $400,000; 
117.23     (3) to rent or lease buildings, including the costs of 
117.24  building repair or improvement that are part of a lease 
117.25  agreement; 
117.26     (4) to improve and repair school sites and buildings, and 
117.27  equip or reequip school buildings with permanent attached 
117.28  fixtures; 
117.29     (5) for a surplus school building that is used 
117.30  substantially for a public nonschool purpose; 
117.31     (6) to eliminate barriers or increase access to school 
117.32  buildings by individuals with a disability; 
117.33     (7) to bring school buildings into compliance with the 
117.34  uniform fire code adopted according to chapter 299F; 
117.35     (8) to remove asbestos from school buildings, encapsulate 
117.36  asbestos, or make asbestos-related repairs; 
118.1      (9) to clean up and dispose of polychlorinated biphenyls 
118.2   found in school buildings; 
118.3      (10) to clean up, remove, dispose of, and make repairs 
118.4   related to storing heating fuel or transportation fuels such as 
118.5   alcohol, gasoline, fuel oil, and special fuel, as defined in 
118.6   section 296.01; 
118.7      (11) for energy audits for school buildings and to modify 
118.8   buildings if the audit indicates the cost of the modification 
118.9   can be recovered within ten years; 
118.10     (12) to improve buildings that are leased according to 
118.11  section 123.36, subdivision 10; 
118.12     (13) to pay special assessments levied against school 
118.13  property but not to pay assessments for service charges; 
118.14     (14) to pay principal and interest on state loans for 
118.15  energy conservation according to section 216C.37 or loans made 
118.16  under the Northeast Minnesota Economic Protection Trust Fund Act 
118.17  according to sections 298.292 to 298.298; 
118.18     (15) to purchase or lease interactive telecommunications 
118.19  equipment; 
118.20     (16) by school board resolution, to transfer money into the 
118.21  debt redemption fund to:  (i) pay the amounts needed to meet, 
118.22  when due, principal and interest payments on certain obligations 
118.23  issued according to chapter 475; or (ii) pay principal and 
118.24  interest on debt service loans or capital loans according to 
118.25  section 124.44; 
118.26     (17) to pay capital expenditure equipment-related 
118.27  assessments of any entity formed under a cooperative agreement 
118.28  between two or more districts; 
118.29     (18) to purchase or lease computers and related materials, 
118.30  copying machines, telecommunications equipment, and other 
118.31  noninstructional equipment; 
118.32     (19) to purchase or lease assistive technology or equipment 
118.33  for instructional programs; 
118.34     (20) to purchase textbooks; 
118.35     (21) to purchase new and replacement library books; 
118.36     (22) to purchase vehicles; 
119.1      (23) to purchase or lease telecommunications equipment, 
119.2   computers, and related equipment for integrated information 
119.3   management systems for: 
119.4      (i) managing and reporting learner outcome information for 
119.5   all students under a results-oriented graduation rule; 
119.6      (ii) managing student assessment, services, and achievement 
119.7   information required for students with individual education 
119.8   plans; and 
119.9      (iii) other classroom information management needs; and 
119.10     (24) to pay personnel costs directly related to the 
119.11  acquisition, operation, and maintenance of telecommunications 
119.12  systems, computers, related equipment, and network and 
119.13  applications software. 
119.14     Sec. 16.  Laws 1997, First Special Session chapter 4, 
119.15  article 4, section 33, is amended to read: 
119.16     Sec. 33.  [1996-1997 AND 1997-1998 AVERAGE DAILY 
119.17  MEMBERSHIP.] 
119.18     Notwithstanding Minnesota Statutes, section 124.17, the 
119.19  1996-1997 and the 1997-1998 average daily membership for a 
119.20  school building closed due to flooding for part of the school 
119.21  year and reopened before the end of the school year shall be the 
119.22  greater of the amount that would have been computed if the 
119.23  school building had not reopened or the amount computed using 
119.24  actual data for the entire school year. 
119.25     Sec. 17.  Laws 1997, First Special Session chapter 4, 
119.26  article 4, section 34, is amended to read: 
119.27     Sec. 34.  [FISCAL YEAR YEARS 1998 AND 1999 DECLINING PUPIL 
119.28  UNIT AID.] 
119.29     For fiscal year years 1998 and 1999 only, a school district 
119.30  with one or more school buildings closed during the 1996-1997 
119.31  school year due to flooding is eligible for declining pupil unit 
119.32  aid equal to the greater of zero or the product of the general 
119.33  education formula allowance for fiscal year 1998 times the 
119.34  difference between the district's actual pupil units for the 
119.35  1996-1997 school year and the district's actual pupil units for 
119.36  the 1997-1998 school year. 
120.1      Sec. 18.  Laws 1997, First Special Session chapter 4, 
120.2   article 4, section 35, subdivision 9, is amended to read: 
120.3      Subd. 9.  [FLOOD LOSSES.] For grants and loans to 
120.4   independent school district Nos. 2854, Ada-Borup; 2176, 
120.5   Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 
120.6   and other districts affected by the 1997 floods for expenses 
120.7   associated with the floods not covered by insurance or state or 
120.8   federal disaster relief: 
120.9      $4,700,000     .....     1998
120.10     The commissioner shall award grants and loans to school 
120.11  districts to cover expenses associated with the 1997 floods.  
120.12  The grants or loans may be for capital losses or for 
120.13  extraordinary operating expenses resulting from the floods.  
120.14  School districts shall repay any loan or grant amounts to the 
120.15  department if those amounts are otherwise funded from other 
120.16  sources.  The commissioner shall establish the terms and 
120.17  conditions of any loans and may request any necessary 
120.18  information from school districts before awarding a grant or 
120.19  loan.  This appropriation shall also be used to fund aid under 
120.20  sections 33 and 34. 
120.21     This appropriation is available until June 30, 1999. 
120.22     Sec. 19.  [PHASE-OUT OF DOWN PAYMENT PROGRAM.] 
120.23     Districts that have received authority to levy under 
120.24  Minnesota Statutes, section 124.82, prior to January 1, 1998, 
120.25  may continue to include the amount as revenue under section 
120.26  124.95 for the number of years for which the authority was 
120.27  originally provided.  No other district may qualify under that 
120.28  section.  The revenue must be maintained in a separate account 
120.29  and may only be used for the purpose specified in the ballot. 
120.30     Sec. 20.  [JOINT FACILITY.] 
120.31     Notwithstanding Minnesota Statutes, section 471.19, 
120.32  independent school district No. 277, Westonka, may expend bond 
120.33  funds for building and remodeling a facility to be operated and 
120.34  maintained under a joint-powers agreement with other 
120.35  governmental entities for joint use by the school district and 
120.36  local community agencies.  The school district is not eligible 
121.1   for debt service equalization on the bonds associated with the 
121.2   joint facility. 
121.3      Sec. 21.  [USE OF BOND PROCEEDS.] 
121.4      Notwithstanding Minnesota Statutes, section 475.58, 
121.5   subdivision 4, independent school district No. 742, St. Cloud, 
121.6   upon passage of a written resolution specifying the amount and 
121.7   purpose of the expenditure, may expend up to $800,000 from its 
121.8   building construction fund on a community education site. 
121.9      Sec. 22.  [BONDING AUTHORIZATION.] 
121.10     To provide funds for the acquisition or betterment of 
121.11  school facilities, independent school district No. 625, St. 
121.12  Paul, may by two-thirds majority vote of all the members of the 
121.13  board of directors issue general obligation bonds in one or more 
121.14  series in calendar years 1998 to 2002, both inclusive, as 
121.15  provided in this section.  The aggregate principal amount of any 
121.16  bonds issued under this section for each calendar year must not 
121.17  exceed $15,000,000.  Issuance of the bonds is not subject to 
121.18  Minnesota Statutes, section 475.58 or 475.59.  The bonds must 
121.19  otherwise be issued as provided in Minnesota Statutes, chapter 
121.20  475.  The authority to issue bonds under this section is in 
121.21  addition to any bonding authority authorized by Minnesota 
121.22  Statutes, chapter 124, or other law.  The amount of bonding 
121.23  authority authorized under this section must be disregarded in 
121.24  calculating the bonding limit of Minnesota Statutes, chapter 
121.25  124, or any other law other than Minnesota Statutes, section 
121.26  475.53, subdivision 4. 
121.27     Sec. 23.  [TAX LEVY FOR DEBT SERVICE.] 
121.28     To pay the principal of and interest on bonds issued under 
121.29  section 22, independent school district No. 625, St. Paul, must 
121.30  levy a tax annually in an amount sufficient under Minnesota 
121.31  Statutes, section 475.61, subdivisions 1 and 3, to pay the 
121.32  principal of and interest on the bonds.  The tax authorized 
121.33  under this section is in addition to the taxes authorized to be 
121.34  levied under Minnesota Statutes, chapter 124A or 275, or other 
121.35  law. 
121.36     Sec. 24.  [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 
122.1      Notwithstanding Minnesota Statutes, section 124.83, 
122.2   subdivision 6, independent school district No. 621, Mounds View, 
122.3   is authorized to use up to $300,000 of its health and safety 
122.4   revenue to replace portable classrooms over 20 years old with 
122.5   new construction of classrooms. 
122.6      Sec. 25.  [PREVAILING WAGE; APPROPRIATIONS.] 
122.7      $1,000,000 is appropriated in fiscal year 1998 from the 
122.8   general fund to the department of children, families, and 
122.9   learning for grants to school districts for the reimbursement of 
122.10  additional construction expenditures incurred as a result of the 
122.11  districts complying with Minnesota Statutes, section 121.15, 
122.12  subdivision 1a.  The grants must be awarded to the following 
122.13  districts: 
122.14     (1) independent school district No. 23, Frazee-Vergas; 
122.15     (2) independent school district No. 62, Ortonville; 
122.16     (3) independent school district No. 242, Alden; 
122.17     (4) independent school district No. 390, Lake of the Woods; 
122.18     (5) independent school district No. 392, Le Center; 
122.19     (6) independent school district No. 466, Dassel-Cokato; 
122.20     (7) independent school district No. 534, Stewartville; 
122.21     (8) independent school district No. 542, Battle Lake; 
122.22     (9) independent school district No. 659, Northfield; 
122.23     (10) independent school district No. 727, Big Lake; 
122.24     (11) independent school district No. 882, Monticello; 
122.25     (12) independent school district No. 2135, Maple River; 
122.26     (13) independent school district No. 2172, 
122.27  Kenyon-Wanamingo; and 
122.28     (14) independent school district No. 2184, Luverne.  
122.29     Sec. 26.  [APPROPRIATION.] 
122.30     Subdivision 1.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
122.31  LEARNING.] The following sum is appropriated from the general 
122.32  fund to the commissioner of children, families, and learning in 
122.33  the fiscal year designated. 
122.34     Subd. 2.  [UNFUNDED FLOOD-RELATED COSTS.] For a 
122.35  disbursement grant for costs related to flooding in 1997 not 
122.36  covered by federal disaster relief, state match, or insurance 
123.1   proceeds: 
123.2      $10,075,000    .....    1998 
123.3   Of this amount, $1,400,000 is for special school district No. 1, 
123.4   Minneapolis, for Edison high school; $1,250,000 is for 
123.5   independent school district No. 2854, Ada-Borup; and $7,425,000 
123.6   is for independent school district No. 595, East Grand Forks. 
123.7   Part of the appropriation to independent school district No. 
123.8   595, East Grand Forks, may be used to convert the Valley 
123.9   elementary school into a facility for community, early 
123.10  childhood, and senior programs. 
123.11     The commissioner shall determine a schedule for payments to 
123.12  the school districts. 
123.13     This appropriation is available until June 30, 1999. 
123.14     Subd. 3.  [MONTICELLO.] For a grant to independent school 
123.15  district No. 882, Monticello, for losses related to summer 
123.16  storms in 1997: 
123.17       $100,000     .....     1998 
123.18     This appropriation is available until June 30, 1999. 
123.19     Sec. 27.  [REPEALER.] 
123.20     (a) Minnesota Statutes 1996, sections 124.491; 124.492; 
123.21  124.493; 124.494; 124.4945; 124.4946; 124.495; 124.82; 124.83, 
123.22  subdivisions 4, 5, and 7; 124C.55; 124C.56; 124C.57; 124C.60, 
123.23  subdivision 2; 124C.71; 124C.72; and 124C.73, are repealed. 
123.24     (b) Minnesota Statutes 1997 Supplement, sections 124.825, 
123.25  subdivisions 3 and 4; and 124C.60, subdivisions 1 and 3, are 
123.26  repealed. 
123.27     Sec. 28.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
123.28     (a) Sections 21, 25, and 26 are effective the day following 
123.29  final enactment. 
123.30     (b) Sections 22 and 23 are effective the day after the 
123.31  governing body of independent school district No. 625, St. Paul, 
123.32  complies with Minnesota Statutes, section 645.021, subdivision 3.
123.33                             ARTICLE 5
123.34                        ACADEMIC EXCELLENCE
123.35     Section 1.  Minnesota Statutes 1997 Supplement, section 
123.36  120.064, subdivision 3, is amended to read: 
124.1      Subd. 3.  [SPONSOR.] A school board, intermediate school 
124.2   district school board, private college, community college, state 
124.3   university, technical college, or the University of Minnesota 
124.4   may sponsor one or more charter schools. 
124.5      Sec. 2.  Minnesota Statutes 1996, section 120.064, 
124.6   subdivision 9, is amended to read: 
124.7      Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
124.8   limit admission to: 
124.9      (1) pupils within an age group or grade level; 
124.10     (2) people who are eligible to participate in the 
124.11  graduation incentives program under section 126.22; or 
124.12     (3) residents of a specific geographic area where the 
124.13  percentage of the population of non-Caucasian people of that 
124.14  area is greater than the percentage of the non-Caucasian 
124.15  population in the congressional district in which the geographic 
124.16  area is located, and as long as the school reflects the racial 
124.17  and ethnic diversity of the specific area. 
124.18     A charter school's enrollment of students eligible for free 
124.19  and reduced price meals must equal, at a minimum, the statewide 
124.20  average enrollment of students eligible for free and reduced 
124.21  price meals.  The commissioner shall develop guidelines to 
124.22  implement this provision. 
124.23     A charter school shall enroll an eligible pupil who submits 
124.24  a timely application, unless the number of applications exceeds 
124.25  the capacity of a program, class, grade level, or building.  In 
124.26  this case, pupils shall be accepted by lot. 
124.27     A charter school may not limit admission to pupils on the 
124.28  basis of intellectual ability, measures of achievement or 
124.29  aptitude, or athletic ability.  
124.30     Sec. 3.  Minnesota Statutes 1996, section 121.1115, is 
124.31  amended by adding a subdivision to read: 
124.32     Subd. 1b.  [EDUCATIONAL ACCOUNTABILITY.] (a) The 
124.33  independent office of educational accountability, as authorized 
124.34  by Laws 1997, First Special Session chapter 4, article 5, 
124.35  section 28, subdivision 2, is established.  The office shall 
124.36  report to the education committees of the legislature and the 
125.1   commissioner of children, families, and learning, at least on a 
125.2   biennial basis, on the degree to which the statewide educational 
125.3   accountability and reporting system includes a comprehensive 
125.4   assessment framework that measures school accountability for 
125.5   students achieving the goals described in the state's 
125.6   results-oriented graduation rule.  The office shall consider 
125.7   whether the statewide system of educational accountability 
125.8   utilizes multiple indicators to provide valid and reliable 
125.9   comparative and contextual data on students, schools, districts, 
125.10  and the state, and if not, recommend ways to improve the 
125.11  accountability reporting system. 
125.12     (b) When the office reviews the statewide educational 
125.13  accountability and reporting system, it shall also consider: 
125.14     (1) the objectivity and neutrality of the state's 
125.15  educational accountability system; and 
125.16     (2)  the impact of a testing program on school curriculum 
125.17  and student learning. 
125.18     Sec. 4.  [123.3517] [STUDENT ACHIEVEMENT LEVELS.] 
125.19     Subdivision 1.  [STATE EXPECTATIONS; PLAN.] (a) Each school 
125.20  year, a school board must determine if the student achievement 
125.21  levels in any school in its district fails to meet state 
125.22  expectations.  If a school's student achievement levels fail to 
125.23  meet state expectations for two out of three consecutive school 
125.24  years, beginning with the 1998-1999 school year, the board must 
125.25  work with the school to adopt a plan to raise student 
125.26  achievement levels to state expectations.  State expectations 
125.27  will be determined by the legislature based on the 
125.28  recommendation of the commissioner of children, families, and 
125.29  learning in collaboration with the office of educational 
125.30  accountability. 
125.31     (b) At the request of a board, the department must assist 
125.32  the board and school in developing a plan to improve student 
125.33  achievement. 
125.34     Subd. 2.  [NOTICE.] (a) The board must, within 45 days 
125.35  after the board declares that a school's student achievement 
125.36  levels fail to meet state expectations under subdivision 1, 
126.1   paragraph (a), give notice of the failure to parents and 
126.2   guardians of students attending the school.  The notice must 
126.3   include: 
126.4      (1) the state expectations that student achievement levels 
126.5   failed to meet; 
126.6      (2) a plan, if any, proposed or adopted under subdivision 
126.7   1; and 
126.8      (3) alternative enrollment options for the students and for 
126.9   each option, school expectations for parent involvement as it 
126.10  relates to student achievement. 
126.11     (b) Each school year the board continues to declare that a 
126.12  school's student achievement levels fail to meet state 
126.13  expectations, the board must give notice to parents and 
126.14  guardians of students of the continuing status of the school. 
126.15     Sec. 5.  Minnesota Statutes 1996, section 124A.29, 
126.16  subdivision 1, is amended to read: 
126.17     Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
126.18  REVENUE.] A district is encouraged required to reserve at least 
126.19  three percent for fiscal year 1999, four percent for fiscal year 
126.20  2000, and five percent for fiscal year 2001 and thereafter, of 
126.21  its general education revenue for in-service education for 
126.22  programs under section 126.77, subdivision 2, for staff 
126.23  development plans, including plans for challenging instructional 
126.24  activities and experiences under section 126.70, and for 
126.25  curriculum development and programs, other in-service education, 
126.26  teachers' workshops, teacher conferences, the cost of substitute 
126.27  teachers staff development purposes, and other related costs for 
126.28  staff development efforts.  Districts may expend an additional 
126.29  amount of basic revenue for staff development based on their 
126.30  needs.  The school board shall initially allocate 50 percent of 
126.31  the revenue to each school site in the district on a per teacher 
126.32  basis, which shall be retained by the school site until used.  
126.33  The board may retain 25 percent to be used for district wide 
126.34  staff development efforts.  The remaining 25 percent of the 
126.35  revenue shall be used to make grants to school sites that 
126.36  demonstrate exemplary use of allocated staff development 
127.1   revenue.  A grant may be used for any purpose authorized under 
127.2   section 126.70, 126.77, subdivision 2, or for the costs of 
127.3   curriculum development and programs, other in-service education, 
127.4   teachers' workshops, teacher conferences, substitute teachers 
127.5   for staff development purposes, and other staff development 
127.6   efforts, and determined by the site decision-making team.  The 
127.7   site decision-making team must demonstrate to the school board 
127.8   the extent to which staff at the site have met the outcomes of 
127.9   the program.  The board may withhold a portion of initial 
127.10  allocation of revenue if the staff development outcomes are not 
127.11  being met. 
127.12     Sec. 6.  Minnesota Statutes 1996, section 125.183, 
127.13  subdivision 1, is amended to read: 
127.14     Subdivision 1.  The board of teaching consists of 11 
127.15  members appointed by the governor, with the advice and consent 
127.16  of the senate.  Membership terms, compensation of members, 
127.17  removal of members, the filling of membership vacancies, and 
127.18  fiscal year and reporting requirements shall be as provided in 
127.19  sections 214.07 to 214.09.  No member may be reappointed for 
127.20  more than one additional term. 
127.21     Sec. 7.  Minnesota Statutes 1996, section 125.183, 
127.22  subdivision 3, is amended to read: 
127.23     Subd. 3.  [MEMBERSHIP.] Except for the representatives of 
127.24  higher education and the public, to be eligible for appointment 
127.25  to the board of teaching a person must be a teacher currently 
127.26  teaching in a Minnesota school and fully licensed for the 
127.27  position held and have at least five years teaching experience 
127.28  in Minnesota, including the two years immediately preceding 
127.29  nomination and appointment.  Each nominee, other than a public 
127.30  nominee, must be selected on the basis of professional 
127.31  experience and knowledge of teacher education, accreditation, 
127.32  and licensure.  The board must be composed of: 
127.33     (1) six classroom teachers who are currently teaching in a 
127.34  Minnesota school, at least four of whom must be teaching in a 
127.35  public school; 
127.36     (2) one higher education representative, who must be a 
128.1   faculty member preparing teachers; 
128.2      (3) one school administrator; and 
128.3      (4) three members of the public, two of whom must be 
128.4   present or former members of school boards. 
128.5      Sec. 8.  Minnesota Statutes 1996, section 126.70, 
128.6   subdivision 2a, is amended to read: 
128.7      Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
128.8   development committee shall adopt a staff development plan for 
128.9   improving student achievement of education outcomes.  The plan 
128.10  must be consistent with education outcomes that the school board 
128.11  determines.  The plan shall include ongoing staff development 
128.12  activities that contribute toward continuous improvement in 
128.13  achievement of the following goals: 
128.14     (1) improve student achievement of state and local 
128.15  education standards in all areas of the curriculum by using best 
128.16  practices methods; 
128.17     (2) effectively meet the needs of a diverse student 
128.18  population, including at-risk children, children with 
128.19  disabilities, and gifted children, within the regular classroom 
128.20  and other settings; 
128.21     (3) provide an inclusive curriculum for a racially, 
128.22  ethnically, and culturally diverse student population that is 
128.23  consistent with the state education diversity rule and the 
128.24  district's education diversity plan; 
128.25     (4) improve staff ability to collaborate and consult with 
128.26  one another and to resolve conflicts; 
128.27     (5) effectively teach and model violence prevention policy 
128.28  and curriculum that address issues of harassment and teach 
128.29  nonviolent alternatives for conflict resolution; and 
128.30     (6) provide teachers and other members of site-based 
128.31  management teams with appropriate management and financial 
128.32  management skills. 
128.33     Sec. 9.  Minnesota Statutes 1996, section 260.131, 
128.34  subdivision 1b, is amended to read: 
128.35     Subd. 1b.  [CHILD IN NEED OF PROTECTION OR SERVICES; 
128.36  HABITUAL TRUANT.] If there is a school attendance review board 
129.1   or county attorney mediation program operating in the child's 
129.2   school district, a petition alleging that a child is in need of 
129.3   protection or services as a habitual truant under section 
129.4   260.015, subdivision 2a, clause (12), may not be filed until the 
129.5   applicable procedures under section 260A.06 or 260A.07 have been 
129.6   exhausted followed. 
129.7      Sec. 10.  Minnesota Statutes 1996, section 260.132, 
129.8   subdivision 1, is amended to read: 
129.9      Subdivision 1.  [NOTICE.] When a peace officer, or 
129.10  attendance officer in the case of a habitual truant, has 
129.11  probable cause to believe that a child: 
129.12     (1) is in need of protection or services under section 
129.13  260.015, subdivision 2a, clause (11) or (12); 
129.14     (2) is a juvenile petty offender; or 
129.15     (3) has committed a delinquent act that would be a petty 
129.16  misdemeanor or misdemeanor if committed by an adult; 
129.17  the officer may issue a notice to the child to appear in 
129.18  juvenile court in the county in which the child is found or in 
129.19  the county of the child's residence or, in the case of a 
129.20  juvenile petty offense, or a petty misdemeanor or misdemeanor 
129.21  delinquent act, the county in which the offense was committed.  
129.22  If there is a school attendance review board or county attorney 
129.23  mediation program operating in the child's school district, a 
129.24  notice to appear in juvenile court for a habitual truant may not 
129.25  be issued until the applicable procedures under section 260A.06 
129.26  or 260A.07 have been exhausted followed.  The officer shall file 
129.27  a copy of the notice to appear with the juvenile court of the 
129.28  appropriate county.  If a child fails to appear in response to 
129.29  the notice, the court may issue a summons notifying the child of 
129.30  the nature of the offense alleged and the time and place set for 
129.31  the hearing.  If the peace officer finds it necessary to take 
129.32  the child into custody, sections 260.165 and 260.171 shall apply.
129.33     Sec. 11.  Minnesota Statutes 1996, section 260A.05, 
129.34  subdivision 2, is amended to read: 
129.35     Subd. 2.  [GENERAL POWERS AND DUTIES.] A school attendance 
129.36  review board shall prepare an annual plan to promote interagency 
130.1   and community cooperation and to reduce duplication of services 
130.2   for students with school attendance problems.  The plan shall 
130.3   include a description of truancy procedures and services 
130.4   currently in operation within the board's jurisdiction, 
130.5   including the programs and services under section 260A.04.  A 
130.6   board may provide consultant services to, and coordinate 
130.7   activities of, truancy programs and services.  If a board 
130.8   determines that it will be unable to provide services for all 
130.9   truant students who are referred to it, the board shall 
130.10  establish procedures and criteria for determining whether to 
130.11  accept referrals of students or refer them for other appropriate 
130.12  action. 
130.13     Sec. 12.  Minnesota Statutes 1996, section 260A.06, is 
130.14  amended to read: 
130.15     260A.06 [REFERRAL OF TRUANT STUDENTS TO SCHOOL ATTENDANCE 
130.16  REVIEW BOARD.] 
130.17     Subdivision 1.  [REFERRAL; NOTICE.] An attendance officer 
130.18  or other school official may refer a student who is a continuing 
130.19  truant to the school attendance review board.  The person making 
130.20  the referral shall provide a written notice by first class mail 
130.21  or other reasonable means to the student and the student's 
130.22  parent or legal guardian.  The notice must: 
130.23     (1) include the name and address of the board to which the 
130.24  student has been referred and the reason for the referral; and 
130.25     (2) indicate that the student, the parent or legal 
130.26  guardian, and the referring person will meet with the board to 
130.27  determine a proper disposition of the referral, unless the board 
130.28  refers the student directly to the county attorney or for other 
130.29  appropriate legal action. 
130.30     Subd. 2.  [MEETING; COMMUNITY SERVICES.] (a) Except as 
130.31  provided in paragraph (b), the school attendance review board 
130.32  shall schedule the meeting described in subdivision 1 and 
130.33  provide notice of the meeting by first class mail or other 
130.34  reasonable means to the student, parent or guardian, and 
130.35  referring person.  If the board determines that available 
130.36  community services may resolve the attendance problems of the 
131.1   truant student, the board shall refer the student or the 
131.2   student's parent or guardian to participate in the community 
131.3   services.  The board may develop an agreement with the student 
131.4   and parent or guardian that specifies the actions to be taken.  
131.5   The board shall inform the student and parent or guardian that 
131.6   failure to comply with any agreement or to participate in 
131.7   appropriate community services will result in a referral to the 
131.8   county attorney under subdivision 3.  The board may require the 
131.9   student or parent or guardian to provide evidence of 
131.10  participation in available community services or compliance with 
131.11  any agreement. 
131.12     (b) A school attendance review board may refer a student 
131.13  directly to the county attorney or for other appropriate legal 
131.14  action under subdivision 3 if it has established procedures and 
131.15  criteria for these referrals. 
131.16     Subd. 3.  [REFERRAL TO COUNTY ATTORNEY; OTHER APPROPRIATE 
131.17  ACTION.] If the school attendance review board determines that 
131.18  available community services cannot resolve the attendance 
131.19  problems of the truant student or, if the student or the parent 
131.20  or guardian has failed to comply with any referrals or 
131.21  agreements under subdivision 2 or to otherwise cooperate with 
131.22  the board, or if the board determines that a student should be 
131.23  referred directly under this subdivision, the board may: 
131.24     (1) refer the matter to the county attorney under section 
131.25  260A.07, if the county attorney has elected to participate in 
131.26  the truancy mediation program; or 
131.27     (2) if the county attorney has not elected to participate 
131.28  in the truancy mediation program, refer the matter for 
131.29  appropriate legal action against the child or the child's parent 
131.30  or guardian under chapter 260 or section 127.20. 
131.31     Sec. 13.  Laws 1997, First Special Session chapter 4, 
131.32  article 5, section 28, subdivision 9, is amended to read: 
131.33     Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
131.34  grants to collaborative urban educator programs that prepare and 
131.35  license people of color to teach: 
131.36       $895,000     .....     1998
132.1        $500,000     .....     1999 
132.2      This appropriation is available until June 30, 1999. 
132.3      Sec. 14.  Laws 1997, First Special Session chapter 4, 
132.4   article 5, section 28, subdivision 10, is amended to read: 
132.5      Subd. 10.  [CHARTER SCHOOL BUILDING LEASE AID.] For 
132.6   building lease aid according to section 124.248, subdivision 2a: 
132.7        $1,078,000 $1,294,000    .....     1998 
132.8        $1,577,000 $1,889,000    .....     1999 
132.9      The 1999 appropriation includes $120,000 $143,000 for 1998 
132.10  and $1,457,000 $1,746,000 for 1999. 
132.11     This appropriation is contingent upon the commissioner of 
132.12  children, families, and learning entering a contract with an 
132.13  independent facilitator to attempt mediation of the education 
132.14  adequacy lawsuits. 
132.15     Sec. 15.  Laws 1997, First Special Session chapter 4, 
132.16  article 5, section 28, subdivision 11, is amended to read: 
132.17     Subd. 11.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
132.18  school start-up cost aid under Minnesota Statutes, section 
132.19  124.248: 
132.20       $500,000 $900,000      .....     1998 
132.21       $1,000,000     .....     1999 
132.22     The 1999 appropriation includes $100,000 for 1998 and 
132.23  $900,000 for 1999.  
132.24     This appropriation is contingent upon the commissioner of 
132.25  children, families, and learning entering a contract with an 
132.26  independent facilitator to attempt mediation of the education 
132.27  adequacy lawsuits. 
132.28     Any balance in the first year does not cancel but is 
132.29  available in the second year.  This appropriation may also be 
132.30  used for grants to convert existing schools into charter schools.
132.31     Sec. 16.  Laws 1997, First Special Session chapter 4, 
132.32  article 5, section 28, subdivision 12, is amended to read: 
132.33     Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
132.34  AID.] For graduation rule implementation: 
132.35       $10,000,000     .....     1998
132.36       $14,400,000     .....     1999
133.1      (a) This appropriation shall be paid to districts according 
133.2   to paragraph (b).  The purpose of the aid is to accelerate the 
133.3   implementation of the graduation rule throughout all education 
133.4   sites in the district through intensive staff development and 
133.5   decentralized decision making.  The board shall work with the 
133.6   teaching staff in the district to determine the most effective 
133.7   staff development processes to assure an acceleration of the 
133.8   implementation.  This appropriation is one-time only. 
133.9      (b) A district shall receive aid equal to $10 for fiscal 
133.10  year 1998 and $15 for fiscal year 1999 times the number of fund 
133.11  balance pupil units in the district for fiscal year 
133.12  1998 excluding pupil units attributable to shared time pupils.  
133.13  At least 30 percent in fiscal year 1998 and 100 percent in 
133.14  fiscal year 1999 must be used for the purposes of paragraph (a). 
133.15     Sec. 17.  Laws 1997, First Special Session chapter 4, 
133.16  article 6, section 20, subdivision 4, is amended to read: 
133.17     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
133.18  school lunch aid according to Minnesota Statutes, section 
133.19  124.646, and Code of Federal Regulations, title 7, section 
133.20  210.17, and for food storage and transportation costs for United 
133.21  States Department of Agriculture donated commodities; and for a 
133.22  temporary transfer to the commodity processing revolving fund to 
133.23  provide cash flow to permit schools and other recipients of 
133.24  donated commodities to take advantage of volume processing rates 
133.25  and for school milk aid according to Minnesota Statutes, section 
133.26  124.648:  
133.27       $7,254,000     .....     1998 
133.28       $7,254,000 $7,489,000    .....     1999 
133.29     (b) Any unexpended balance remaining from the 
133.30  appropriations in this subdivision shall be prorated among 
133.31  participating schools based on the number of free, reduced, and 
133.32  fully paid federally reimbursable student lunches served during 
133.33  that school year.  
133.34     (c) If the appropriation amount attributable to either year 
133.35  is insufficient, the rate of payment for each fully paid student 
133.36  lunch shall be reduced and the aid for that year shall be 
134.1   prorated among participating schools so as not to exceed the 
134.2   total authorized appropriation for that year.  
134.3      (d) Any temporary transfer processed in accordance with 
134.4   this subdivision to the commodity processing fund will be 
134.5   returned by June 30 in each year so that school lunch aid and 
134.6   food storage costs can be fully paid as scheduled.  
134.7      (e) Not more than $800,000 of the amount appropriated each 
134.8   year may be used for school milk aid. 
134.9      (f) The commissioner may reduce other future aid and grant 
134.10  payments due to school districts and other organizations for the 
134.11  costs of processing and storage of commodities used by the 
134.12  district or organization. 
134.13     Sec. 18.  [GRADUATION RULE RESOURCE GRANTS.] 
134.14     The commissioner of children, families, and learning shall 
134.15  award grants to develop learning resources for the state's 
134.16  results-oriented graduation rule.  The grants are available to: 
134.17     (1) provide staff development for implementation of the 
134.18  graduation standards, including training in economics, the arts, 
134.19  and training in technology by community members; 
134.20     (2) establish and equip learning resource centers; 
134.21     (3) develop and sustain historical educational programming; 
134.22     (4) make historical collections available via the Internet; 
134.23     (5) develop a system of graduation rule implementation for 
134.24  alternative programs; 
134.25     (6) develop systemic site decision-making models and 
134.26  implementing site decision making in schools; 
134.27     (7) expand attention and reading readiness programs; and 
134.28     (8) provide for reporting systems. 
134.29     The commissioner may require a match of private funds as 
134.30  part of the application process.  The commissioner shall 
134.31  consider proposals from New Visions school, the Minnesota 
134.32  Council on Economic Education, the Minnesota historical society, 
134.33  the Lola and Rudy Perpich Center for the Arts, Murphy's Landing, 
134.34  Ironworld, parent or community technology specialists working or 
134.35  volunteering in schools, and higher education institutions 
134.36  working in conjunction with a school district or consortium of 
135.1   school districts. 
135.2      Sec. 19.  [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 
135.3      (a) The department of children, families, and learning 
135.4   shall contract for a clearinghouse of best educational practices 
135.5   and shared decision-making for improving student performance, 
135.6   particularly for at-risk students.  The clearinghouse must:  
135.7      (1) align with all current activities for best educational 
135.8   practice, shared decision-making, and the results-oriented 
135.9   graduation rule; 
135.10     (2) conduct research and collect information on the best 
135.11  educational practices affecting a school's management, 
135.12  operation, financing, personnel and instruction; 
135.13     (3) train quality intervention teams composed of highly 
135.14  qualified educators to assist a school's staff in working to 
135.15  improve student performance, particularly for at-risk students, 
135.16  by addressing a school's management, operation, financing, 
135.17  personnel and instruction practices; 
135.18     (4) develop and make available to interested school 
135.19  districts a model for an independent educational audit that 
135.20  evaluates a school's performance strengths and weakness and 
135.21  makes specific recommendations for reinforcing performance 
135.22  strengths and improving performance weaknesses cited in the 
135.23  audit; 
135.24     (5) using the comprehensive assessment framework under 
135.25  section 121.1115, subdivision 1b, paragraph (a), develop student 
135.26  and school performance indicators schools may use to reliably 
135.27  measure school improvement over time; and 
135.28     (6) provide staff development opportunities to assist 
135.29  teachers and other educators in integrating educational reform 
135.30  measures into a school's best practices. 
135.31     (b) The clearinghouse must assist school districts, at 
135.32  district request, and recommend methods to engage parents and 
135.33  communities in improving student performance, particularly for 
135.34  at-risk students. 
135.35     (c) The clearinghouse must collaborate with community 
135.36  stakeholders, including the urban league, the urban coalition, 
136.1   the council on Asian-Pacific Minnesotans, the Chicano/Latino 
136.2   affairs council, the council on Black Minnesotans, the Indian 
136.3   affairs council, and the communities and color institute and 
136.4   Minneapolis pathways at the University of Minnesota's Roy 
136.5   Wilkins center. 
136.6      Sec. 20.  [REPORT.] 
136.7      The commissioner of children, families, and learning, in 
136.8   consultation with the Minnesota state colleges and universities, 
136.9   the University of Minnesota, and the private college council, 
136.10  shall examine the training of teachers entering the workforce in 
136.11  Minnesota.  The commissioner shall also consult with the 
136.12  Minnesota federation of teachers and the Minnesota education 
136.13  association for this report.  The report shall make 
136.14  recommendations for proposed legislative action to promote a 
136.15  more direct connection between teacher training and student 
136.16  learning needs under the state's results-oriented graduation 
136.17  rule.  The commissioner shall seek assistance from the state 
136.18  public policy unit within the Humphrey Institute of Minnesota 
136.19  for existing research in this area for this report.  The 
136.20  commissioner shall report its findings to education committees 
136.21  of the legislature by December 1, 1998.  The report shall 
136.22  examine at least the following areas: 
136.23     (1) whether teachers entering the workforce are prepared to 
136.24  meet the basic skills needs and higher learning needs of 
136.25  students under the state's results-oriented graduation rule; 
136.26     (2) identify teacher skills which are considered crucial to 
136.27  the success of students in a knowledge-based economy and 
136.28  determine if Minnesota colleges and universities are teaching 
136.29  those skills adequately to teachers; 
136.30     (3) examine the ability of Minnesota colleges and 
136.31  universities to provide training to existing teachers who are 
136.32  seeking further staff development experiences in order to meet 
136.33  the students' needs under the graduation rule; and 
136.34     (4) identify resources and organizations outside of the 
136.35  colleges and universities that can provide training and teaching 
136.36  experiences necessary to meet the needs of students under the 
137.1   graduation rule. 
137.2      Sec. 21.  [GANG PREVENTION AND INTERVENTION PROGRAM.] 
137.3      Subdivision 1.  [GANG PREVENTION AND INTERVENTION.] The 
137.4   commissioner of children, families, and learning shall develop 
137.5   and administer a gang prevention and intervention program to 
137.6   provide services (1) to young people who are at risk for 
137.7   criminal gang involvement; and (2) to young people who are 
137.8   interested in terminating their gang affiliation. 
137.9      Subd. 2.  [GRANT APPLICATION.] The department of children, 
137.10  families, and learning, in consultation with the department of 
137.11  public safety, department of corrections, office of drug policy 
137.12  and violence prevention, the criminal gang strike force, one or 
137.13  more representatives of community-based programs that have 
137.14  conducted research on street gang culture, and one or more 
137.15  individuals having direct experience in gang life, shall develop 
137.16  a grant application that specifies the eligibility criteria for 
137.17  receiving grants.  A committee selected by this group also must 
137.18  evaluate applications for grants received by the commissioner of 
137.19  children, families, and learning and make recommendations to the 
137.20  commissioner of children, families, and learning on the awarding 
137.21  of grants. 
137.22     Subd. 3.  [ELIGIBILITY FOR GRANTS.] A local organization 
137.23  must meet the following criteria to be eligible for a grant 
137.24  under the program: 
137.25     (1) it must be a private, nonprofit organization or local 
137.26  public agency; and 
137.27     (2) it must offer and provide services to young people to 
137.28  prevent gang involvement or to intervene in and end gang 
137.29  involvement, including, but not limited to, after-school 
137.30  activities, educational opportunities, job skill development, 
137.31  community service, life skills, medical services, social 
137.32  services, and counseling. 
137.33     Subd. 4.  [ELIGIBILITY FOR SERVICES.] A person who is 
137.34  eligible for services must be at least seven years old and not 
137.35  more than 25 years old, at the time the person first receives 
137.36  services, unless the organization receiving a grant receives 
138.1   advance approval from the commissioner of children, families, 
138.2   and learning to provide services outside of this age range. 
138.3      Subd. 5.  [REPORT TO LEGISLATURE.] By December 1, 1998, the 
138.4   commissioner of children, families, and learning shall submit a 
138.5   report to the chairs of the education committees of the 
138.6   legislature on the grants issued under this section. 
138.7      Sec. 22.  [RESIDENTIAL ACADEMIES PROGRAM.] 
138.8      (a) The commissioner of children, families, and learning 
138.9   may award grants to public or private organizations or a 
138.10  collaboration of organizations for start-up costs for 
138.11  residential academies for students in grades 7 through 12 who 
138.12  express a desire to attend a residential academy, have 
138.13  demonstrated an interest in academic achievement and a 
138.14  likelihood of academic success, and who: 
138.15     (1) perform or are at risk of performing below the academic 
138.16  performance level for pupils of the same age; 
138.17     (2) are at least one year behind in satisfactorily 
138.18  completing coursework or obtaining credits for graduation; or 
138.19     (3) have experienced homelessness or an unstable home 
138.20  environment. 
138.21     (b) The residential academy must provide a secondary 
138.22  education program for the resident students to: 
138.23     (1) increase school attendance; 
138.24     (2) increase academic achievement; 
138.25     (3) enable the students to earn a high school diploma; and 
138.26     (4) improve transition to post-secondary education. 
138.27     The academy may collaborate with a school district or 
138.28  charter school to provide the secondary education program. 
138.29     (c) The commissioner of children, families, and learning 
138.30  shall prescribe the form and manner of applications.  The 
138.31  commissioner shall consider the academy's location, 
138.32  collaborative effort among various organizations, family and 
138.33  community involvement, provision of social services, 
138.34  after-school enrichment, and provision of instruction throughout 
138.35  the entire year in awarding grants.  The commissioner shall 
138.36  evaluate the residential academies' program and report to the 
139.1   education committees of the legislature by December 1, 2000. 
139.2      Sec. 23.  [BOARD OF TEACHING.] 
139.3      The board of teaching must convene a working group to 
139.4   recommend changes that would make employment data on licensed 
139.5   education personnel more accessible to school districts.  The 
139.6   working group must consist of one representative from each of 
139.7   the following agencies and organizations:  the state board of 
139.8   teaching, the state board of education, the department of 
139.9   children, families, and learning, the department of 
139.10  administration, the Minnesota education association, the 
139.11  Minnesota federation of teachers, the Minnesota association of 
139.12  school administrators, the Minnesota association of school 
139.13  personnel administrators, the Minnesota school boards 
139.14  association, and any other representatives that the board 
139.15  determines are relevant.  Expenses incurred by working group 
139.16  members must be reimbursed by the agencies and organizations 
139.17  they represent.  By December 1, 1998, the board of teaching must 
139.18  submit the working group's recommendations to the chairs of the 
139.19  kindergarten through grade 12 education funding committees of 
139.20  the legislature. 
139.21     The working group must address at least the following: 
139.22     (1) to what extent a central database of employment history 
139.23  of licensed education personnel would be useful and how would it 
139.24  operate; 
139.25     (2) to what extend information regarding complaints against 
139.26  licensed education personnel received by the board of teaching 
139.27  or the board of education should be made available to school 
139.28  districts; 
139.29     (3) to what extent disciplinary actions by the board of 
139.30  teaching or the board of education should be made available to 
139.31  school districts; and 
139.32     (4) to what extent guidelines regarding factors to consider 
139.33  in hiring educational personnel would be useful to school 
139.34  districts, and, if so, what the guidelines might include. 
139.35     Sec. 24. [PROFILE OF LEARNING REPORT.] 
139.36     The department of children, families, and learning must 
140.1   submit a written report to the education committees of the 
140.2   legislature by January 15, 1999, itemizing all direct and 
140.3   indirect state and local revenues actually expended in 
140.4   developing and fully implementing the profile of learning rule 
140.5   under Minnesota Statutes 1997, section 121.11, subdivision 7c, 
140.6   and all projected future expenditures needed to fully implement 
140.7   the rule statewide.  Among the costs to be itemized in the 
140.8   report are the costs to date and projected future costs of 
140.9   developing, promulgating, and fully implementing the rule 
140.10  statewide and the costs to date and projected future costs of 
140.11  providing staff development training to fully implement the rule 
140.12  statewide.  
140.13     Sec. 25.  [APPROPRIATIONS.] 
140.14     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
140.15  LEARNING.] The sums indicated in this section are appropriated 
140.16  from the general fund to the department of children, families, 
140.17  and learning for the fiscal years designated. 
140.18     Subd. 2.  [CLEARINGHOUSE OF BEST EDUCATIONAL 
140.19  PRACTICES.] For a clearinghouse of best educational practices. 
140.20       $1,979,000       .....     1999 
140.21     Subd. 3.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
140.22  rule resource grants. 
140.23       $3,300,000     .....     1999
140.24     This is a one-time appropriation. 
140.25     Subd. 4.  [GANG PREVENTION AND INTERVENTION.] To develop 
140.26  and administer the gang prevention and intervention program. 
140.27       $50,000     .....     1999
140.28     This appropriation is available until June 30, 1999. 
140.29     Sec. 26.  [EFFECTIVE DATE.] 
140.30     Sections 5, 14, 15, and 24 are effective the day following 
140.31  final enactment.  Section 16 is effective for fiscal year 1998. 
140.32                             ARTICLE 6
140.33                          EDUCATION POLICY
140.34     Section 1.  Minnesota Statutes 1996, section 15.014, 
140.35  subdivision 3, is amended to read: 
140.36     Subd. 3.  [TASK FORCE FOR CURRICULUM DEVELOPMENT PURPOSES.] 
141.1   In addition to the task forces for which compensation of members 
141.2   is authorized in subdivision 2, the state board of 
141.3   education commissioner of children, families, and learning may 
141.4   create not to exceed no more than ten task forces, to be 
141.5   compensated as provided in section 15.059, subdivision 6.  A 
141.6   task force created pursuant to this subdivision shall be for 
141.7   curriculum development purposes only and shall expire within one 
141.8   year after its creation.  The task force shall report to 
141.9   the state board commissioner before its expiration or upon the 
141.10  completion of its task, whichever occurs first. 
141.11     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
141.12  16B.465, subdivision 4, is amended to read: 
141.13     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
141.14  require the participation of state agencies, the state board of 
141.15  education, and the board of trustees of the Minnesota state 
141.16  colleges and universities and may request the participation of 
141.17  the board of regents of the University of Minnesota, in the 
141.18  planning and implementation of the network to provide 
141.19  interconnective technologies.  The commissioner shall establish 
141.20  reimbursement rates in cooperation with the commissioner of 
141.21  finance to be billed to participating agencies and educational 
141.22  institutions sufficient to cover the operating, maintenance, and 
141.23  administrative costs of the system. 
141.24     (b) A direct appropriation made to an educational 
141.25  institution for usage costs associated with MNet must only be 
141.26  used by the educational institution for payment of usage costs 
141.27  of the network as billed by the commissioner of administration.  
141.28     Sec. 3.  Minnesota Statutes 1996, section 119B.20, 
141.29  subdivision 5, is amended to read: 
141.30     Subd. 5.  [CHILD CARE WORKER.] "Child care worker" means a 
141.31  person who cares for children for compensation, including a 
141.32  licensed provider of child care services, an employee of a 
141.33  provider, a person who has applied for a license as a provider, 
141.34  or a person who meets the standards established by the state 
141.35  board of education commissioner of children, families, and 
141.36  learning. 
142.1      Sec. 4.  Minnesota Statutes 1996, section 119B.20, 
142.2   subdivision 8, is amended to read: 
142.3      Subd. 8.  [INTERIM FINANCING.] "Interim financing" means 
142.4   funds to carry out such activities as are necessary for family 
142.5   day care homes, group family day care homes, and child care 
142.6   centers to receive and maintain state licensing, to expand an 
142.7   existing program or to improve program quality, and to provide 
142.8   operating funds for a period of six consecutive months after a 
142.9   family day care home, group family day care home, or child care 
142.10  center becomes licensed or satisfies standards of the state 
142.11  board of education commissioner of children, families, and 
142.12  learning.  Interim financing may not exceed a period of 18 
142.13  months. 
142.14     Sec. 5.  Minnesota Statutes 1996, section 119B.20, 
142.15  subdivision 12, is amended to read: 
142.16     Subd. 12.  [TRAINING PROGRAM.] "Training program" means 
142.17  child development courses offered by an accredited 
142.18  post-secondary institution or similar training approved by a 
142.19  county board or the department of children, families, and 
142.20  learning.  To qualify as a training program under this section, 
142.21  a course of study must teach specific skills that meet licensing 
142.22  requirements or requirements of the state board of 
142.23  education commissioner of children, families, and learning. 
142.24     Sec. 6.  Minnesota Statutes 1996, section 120.03, 
142.25  subdivision 1, is amended to read: 
142.26     Subdivision 1.  Every child who has a hearing impairment, 
142.27  visual disability, speech or language impairment, physical 
142.28  handicap, other health impairment, mental handicap, 
142.29  emotional/behavioral disorder, specific learning disability, or 
142.30  deaf/blind disability and needs special instruction and 
142.31  services, as determined by the standards of the state 
142.32  board commissioner, is a child with a disability.  In addition, 
142.33  every child under age five who needs special instruction and 
142.34  services, as determined by the standards of the state board 
142.35  commissioner, because the child has a substantial delay or has 
142.36  an identifiable physical or mental condition known to hinder 
143.1   normal development is a child with a disability. 
143.2      Sec. 7.  Minnesota Statutes 1996, section 120.03, 
143.3   subdivision 5, is amended to read: 
143.4      Subd. 5.  A child with a short-term or temporary physical 
143.5   or emotional illness or disability, as determined by the 
143.6   standards of the state board commissioner, is not a child with a 
143.7   disability.  
143.8      Sec. 8.  Minnesota Statutes 1997 Supplement, section 
143.9   120.05, subdivision 2, is amended to read: 
143.10     Subd. 2.  [DEFINITIONS.] (1) Elementary school means any 
143.11  school with building, equipment, courses of study, class 
143.12  schedules, enrollment of pupils ordinarily in prekindergarten 
143.13  through grade 6 or any portion thereof and staff meeting the 
143.14  standards established by the state board of education 
143.15  commissioner of children, families, and learning. 
143.16     The state board of education commissioner of children, 
143.17  families, and learning shall not close a school or deny any 
143.18  state aids to a district for its elementary schools because of 
143.19  enrollment limitations classified in accordance with the 
143.20  provisions of clause (1). 
143.21     (2) Middle school means any school other than a secondary 
143.22  school giving an approved course of study in a minimum of three 
143.23  consecutive grades above 4th but below 10th with building, 
143.24  equipment, courses of study, class schedules, enrollment, and 
143.25  staff meeting the standards established by the state board of 
143.26  education commissioner of children, families, and learning. 
143.27     (3) Secondary school means any school with building, 
143.28  equipment, courses of study, class schedules, enrollment of 
143.29  pupils ordinarily in grades 7 through 12 or any portion thereof, 
143.30  and staff meeting the standards established by the state board 
143.31  of education commissioner of children, families, and learning. 
143.32     (4) A vocational center school is one serving a group of 
143.33  secondary schools with approved areas of secondary vocational 
143.34  training and offering vocational secondary and adult programs 
143.35  necessary to meet local needs and meeting standards established 
143.36  by the state board of education commissioner of children, 
144.1   families, and learning. 
144.2      Sec. 9.  Minnesota Statutes 1996, section 120.062, 
144.3   subdivision 5, is amended to read: 
144.4      Subd. 5.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
144.5   subdivision applies to a transfer into or out of a district that 
144.6   has a desegregation plan approved by the commissioner of 
144.7   children, families, and learning.  
144.8      (b) An application to transfer may be submitted at any time 
144.9   for enrollment beginning at any time. 
144.10     (c) The parent or guardian of a pupil who is a resident of 
144.11  a district that has a desegregation plan must submit an 
144.12  application to the resident district.  If the district accepts 
144.13  the application, it must forward the application to the 
144.14  nonresident district. 
144.15     (d) The parent or guardian of a pupil who applies for 
144.16  enrollment in a nonresident district that has a desegregation 
144.17  plan must submit an application to the nonresident district.  
144.18     (e) Each district must accept or reject an application it 
144.19  receives and notify the parent or guardian in writing within 30 
144.20  calendar days of receiving the application.  A notification of 
144.21  acceptance must include the date enrollment can begin. 
144.22     (f) If an application is rejected, the district must state 
144.23  the reason for rejection in the notification.  If a district 
144.24  that has a desegregation plan rejects an application for a 
144.25  reason related to the desegregation plan, the district must 
144.26  state with specificity how acceptance of the application would 
144.27  result in noncompliance with state board department rules with 
144.28  respect to the school or program for which application was made. 
144.29     (g) If an application is accepted, the parent or guardian 
144.30  must notify the nonresident district in writing within 15 
144.31  calendar days of receiving the acceptance whether the pupil 
144.32  intends to enroll in the nonresident district.  Notice of 
144.33  intention to enroll obligates the pupil to enroll in the 
144.34  nonresident district, unless the school boards of the resident 
144.35  and nonresident districts agree otherwise.  If a parent or 
144.36  guardian does not notify the nonresident district, the pupil may 
145.1   not enroll in that nonresident district at that time, unless the 
145.2   school boards of the resident and nonresident district agree 
145.3   otherwise. 
145.4      (h) Within 15 calendar days of receiving the notice from 
145.5   the parent or guardian, the nonresident district shall notify 
145.6   the resident district in writing of the pupil's intention to 
145.7   enroll in the nonresident district.  
145.8      (i) A pupil enrolled in a nonresident district under this 
145.9   subdivision is not required to make annual or periodic 
145.10  application for enrollment but may remain enrolled in the same 
145.11  district.  A pupil may transfer to the resident district at any 
145.12  time.  
145.13     (j) A pupil enrolled in a nonresident district and applying 
145.14  to transfer into or out of a district that has a desegregation 
145.15  plan must follow the procedures of this subdivision.  For the 
145.16  purposes of this type of transfer, "resident district" means the 
145.17  nonresident district in which the pupil is enrolled at the time 
145.18  of application.  
145.19     (k) A district that has a desegregation plan approved by 
145.20  the state board of education commissioner of children, families, 
145.21  and learning must accept or reject each individual application 
145.22  in a manner that will enable compliance with its desegregation 
145.23  plan. 
145.24     Sec. 10.  Minnesota Statutes 1996, section 120.064, 
145.25  subdivision 4, is amended to read: 
145.26     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
145.27  authorize one or more licensed teachers under section 125.05, 
145.28  subdivision 1, to operate a charter school subject to approval 
145.29  by the state board of education commissioner of children, 
145.30  families, and learning.  If a school board elects not to sponsor 
145.31  a charter school, the applicant may appeal the school board's 
145.32  decision to the state board of education commissioner of 
145.33  children, families, and learning if two members of the school 
145.34  board voted to sponsor the school.  If the state 
145.35  board commissioner authorizes the school, the state board 
145.36  commissioner shall sponsor the school according to this 
146.1   section.  The school shall be organized and operated as a 
146.2   cooperative under chapter 308A or nonprofit corporation under 
146.3   chapter 317A.  
146.4      (b) Before the operators may form and operate a school, the 
146.5   sponsor must file an affidavit with the state board of education 
146.6   commissioner of children, families, and learning stating its 
146.7   intent to authorize a charter school.  The affidavit must state 
146.8   the terms and conditions under which the sponsor would authorize 
146.9   a charter school.  The state board commissioner must approve or 
146.10  disapprove the sponsor's proposed authorization within 60 days 
146.11  of receipt of the affidavit.  Failure to obtain state board the 
146.12  commissioner's approval precludes a sponsor from authorizing the 
146.13  charter school that was the subject of the affidavit.  
146.14     (c) The operators authorized to organize and operate a 
146.15  school shall hold an election for members of the school's board 
146.16  of directors in a timely manner after the school is operating.  
146.17  Any staff members who are employed at the school, including 
146.18  teachers providing instruction under a contract with a 
146.19  cooperative, and all parents of children enrolled in the school 
146.20  may participate in the election.  Licensed teachers employed at 
146.21  the school, including teachers providing instruction under a 
146.22  contract with a cooperative, must be a majority of the members 
146.23  of the board of directors.  A provisional board may operate 
146.24  before the election of the school's board of directors.  Board 
146.25  of director meetings must comply with section 471.705. 
146.26     (d) The granting or renewal of a charter by a sponsoring 
146.27  entity shall not be conditioned upon the bargaining unit status 
146.28  of the employees of the school. 
146.29     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
146.30  120.064, subdivision 8, is amended to read: 
146.31     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
146.32  all applicable state and local health and safety requirements. 
146.33     (b) A school sponsored by a school board may be located in 
146.34  any district, unless the school board of the district of the 
146.35  proposed location disapproves by written resolution.  If such a 
146.36  school board denies a request to locate within its boundaries a 
147.1   charter school sponsored by another school board, the sponsoring 
147.2   school board may appeal to the state board of education 
147.3   commissioner of children, families, and learning.  If the state 
147.4   board commissioner authorizes the school, the state board 
147.5   commissioner shall sponsor the school.  
147.6      (c) A charter school must be nonsectarian in its programs, 
147.7   admission policies, employment practices, and all other 
147.8   operations.  A sponsor may not authorize a charter school or 
147.9   program that is affiliated with a nonpublic sectarian school or 
147.10  a religious institution. 
147.11     (d) Charter schools shall not be used as a method of 
147.12  providing education or generating revenue for students who are 
147.13  being home-schooled. 
147.14     (e) The primary focus of a charter school must be to 
147.15  provide a comprehensive program of instruction for at least one 
147.16  grade or age group from five through 18 years of age.  
147.17  Instruction may be provided to people younger than five years 
147.18  and older than 18 years of age. 
147.19     (f) A charter school may not charge tuition. 
147.20     (g) A charter school is subject to and shall comply with 
147.21  chapter 363 and section 126.21. 
147.22     (h) A charter school is subject to and shall comply with 
147.23  The Pupil Fair Dismissal Act, sections 127.26 to 127.39, and the 
147.24  Minnesota public school fee law, sections 120.71 to 120.76. 
147.25     (i) A charter school is subject to the same financial 
147.26  audits, audit procedures, and audit requirements as a school 
147.27  district.  The audit must be consistent with the requirements of 
147.28  sections 121.904 to 121.917, except to the extent deviations are 
147.29  necessary because of the program at the school.  The department 
147.30  of children, families, and learning, state auditor, or 
147.31  legislative auditor may conduct financial, program, or 
147.32  compliance audits. 
147.33     (j) A charter school is a school district for the purposes 
147.34  of tort liability under chapter 466. 
147.35     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
147.36  120.064, subdivision 10, is amended to read: 
148.1      Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
148.2   design its programs to at least meet the outcomes adopted by the 
148.3   state board of education commissioner of children, families, and 
148.4   learning for public school students.  In the absence of state 
148.5   board requirements adopted by the commissioner, the school must 
148.6   meet the outcomes contained in the contract with the sponsor.  
148.7   The achievement levels of the outcomes contained in the contract 
148.8   may exceed the achievement levels of any outcomes adopted by the 
148.9   state board commissioner for public school students. 
148.10     Sec. 13.  Minnesota Statutes 1996, section 120.064, 
148.11  subdivision 14, is amended to read: 
148.12     Subd. 14.  [REPORTS.] A charter school must report at least 
148.13  annually to its sponsor and the state board of education 
148.14  commissioner of children, families, and learning the information 
148.15  required by the sponsor or the state board commissioner.  The 
148.16  reports are public data under chapter 13. 
148.17     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
148.18  120.064, subdivision 14a, is amended to read: 
148.19     Subd. 14a.  [REVIEW AND COMMENT.] The department shall 
148.20  review and comment on the evaluation, by the chartering school 
148.21  district, of the performance of a charter school before the 
148.22  charter school's contract is renewed.  The information from the 
148.23  review and comment shall be reported to the state board of 
148.24  education commissioner of children, families, and learning in a 
148.25  timely manner.  Periodically, the state board commissioner shall 
148.26  report trends or suggestions based on the evaluation of charter 
148.27  school contracts to the education committees of the state 
148.28  legislature. 
148.29     Sec. 15.  Minnesota Statutes 1996, section 120.064, 
148.30  subdivision 17, is amended to read: 
148.31     Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
148.32  charter school before the applicant has secured its space, 
148.33  equipment, facilities, and personnel if the applicant indicates 
148.34  the authority is necessary for it to raise working capital.  A 
148.35  sponsor may not authorize a school before the state board of 
148.36  education commissioner of children, families, and learning has 
149.1   approved the authorization. 
149.2      Sec. 16.  Minnesota Statutes 1996, section 120.064, 
149.3   subdivision 21, is amended to read: 
149.4      Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
149.5   duration of the contract with a sponsor shall be for the term 
149.6   contained in the contract according to subdivision 5.  The 
149.7   sponsor may or may not renew a contract at the end of the term 
149.8   for any ground listed in paragraph (b).  A sponsor may 
149.9   unilaterally terminate a contract during the term of the 
149.10  contract for any ground listed in paragraph (b).  At least 60 
149.11  days before not renewing or terminating a contract, the sponsor 
149.12  shall notify the board of directors of the charter school of the 
149.13  proposed action in writing.  The notice shall state the grounds 
149.14  for the proposed action in reasonable detail and that the 
149.15  charter school's board of directors may request in writing an 
149.16  informal hearing before the sponsor within 14 days of receiving 
149.17  notice of nonrenewal or termination of the contract.  Failure by 
149.18  the board of directors to make a written request for a hearing 
149.19  within the 14-day period shall be treated as acquiescence to the 
149.20  proposed action.  Upon receiving a timely written request for a 
149.21  hearing, the sponsor shall give reasonable notice to the charter 
149.22  school's board of directors of the hearing date.  The sponsor 
149.23  shall conduct an informal hearing before taking final action.  
149.24  The sponsor shall take final action to renew or not renew a 
149.25  contract by the last day of classes in the school year.  If the 
149.26  sponsor is a local school board, the school's board of directors 
149.27  may appeal the sponsor's decision to the state board of 
149.28  education commissioner of children, families, and learning.  
149.29     (b) A contract may be terminated or not renewed upon any of 
149.30  the following grounds: 
149.31     (1) failure to meet the requirements for pupil performance 
149.32  contained in the contract; 
149.33     (2) failure to meet generally accepted standards of fiscal 
149.34  management; 
149.35     (3) for violations of law; or 
149.36     (4) other good cause shown. 
150.1      If a contract is terminated or not renewed, the school 
150.2   shall be dissolved according to the applicable provisions of 
150.3   chapter 308A or 317A. 
150.4      Sec. 17.  Minnesota Statutes 1996, section 120.064, 
150.5   subdivision 24, is amended to read: 
150.6      Subd. 24.  [IMMUNITY.] The state board of education, 
150.7   members of the state board commissioner of children, families, 
150.8   and learning, a sponsor, members of the board of a sponsor in 
150.9   their official capacity, and employees of a sponsor are immune 
150.10  from civil or criminal liability with respect to all activities 
150.11  related to a charter school they approve or sponsor.  The board 
150.12  of directors shall obtain at least the amount of and types of 
150.13  insurance required by the contract, according to subdivision 5. 
150.14     Sec. 18.  Minnesota Statutes 1996, section 120.101, 
150.15  subdivision 7, is amended to read: 
150.16     Subd. 7.  [REQUIREMENTS FOR INSTRUCTORS.] A person who is 
150.17  providing instruction to a child must meet at least one of the 
150.18  following requirements:  
150.19     (1) hold a valid Minnesota teaching license in the field 
150.20  and for the grade level taught; 
150.21     (2) be directly supervised by a person holding a valid 
150.22  Minnesota teaching license; 
150.23     (3) successfully complete a teacher competency examination; 
150.24     (4) provide instruction in a school that is accredited by 
150.25  an accrediting agency, recognized according to section 123.935, 
150.26  subdivision 7, or recognized by the state board of 
150.27  education commissioner of children, families, and learning; 
150.28     (5) hold a baccalaureate degree; or 
150.29     (6) be the parent of a child who is assessed according to 
150.30  the procedures in subdivision 8.  
150.31     Any person providing instruction in a public school must 
150.32  meet the requirements of clause (1). 
150.33     Sec. 19.  Minnesota Statutes 1996, section 120.101, 
150.34  subdivision 8, is amended to read: 
150.35     Subd. 8.  [ASSESSMENT OF PERFORMANCE.] (a) Each year the 
150.36  performance of every child who is not enrolled in a public 
151.1   school must be assessed using a nationally norm-referenced 
151.2   standardized achievement examination.  The superintendent of the 
151.3   district in which the child receives instruction and the person 
151.4   in charge of the child's instruction must agree about the 
151.5   specific examination to be used and the administration and 
151.6   location of the examination.  
151.7      (b) To the extent the examination in paragraph (a) does not 
151.8   provide assessment in all of the subject areas in subdivision 6, 
151.9   the parent must assess the child's performance in the applicable 
151.10  subject area.  This requirement applies only to a parent who 
151.11  provides instruction and does not meet the requirements of 
151.12  subdivision 7, clause (1), (2), or (3).  
151.13     (c) If the results of the assessments in paragraphs (a) and 
151.14  (b) indicate that the child's performance on the total battery 
151.15  score is at or below the 30th percentile or one grade level 
151.16  below the performance level for children of the same age, the 
151.17  parent shall obtain additional evaluation of the child's 
151.18  abilities and performance for the purpose of determining whether 
151.19  the child has learning problems.  
151.20     (d) A child receiving instruction from a nonpublic school, 
151.21  person, or institution that is accredited by an accrediting 
151.22  agency, recognized according to section 123.935, subdivision 7, 
151.23  or recognized by the state board of education commissioner of 
151.24  children, families, and learning, is exempt from the 
151.25  requirements of this subdivision.  
151.26     Sec. 20.  Minnesota Statutes 1996, section 120.102, 
151.27  subdivision 3, is amended to read: 
151.28     Subd. 3.  [EXEMPTIONS.] A nonpublic school, person, or 
151.29  other institution that is accredited by an accrediting agency, 
151.30  recognized according to section 123.935, or recognized by the 
151.31  state board of education commissioner of children, families, and 
151.32  learning, is exempt from the requirements in subdivisions 1 and 
151.33  2, except for the requirement in subdivision 1, clause (1). 
151.34     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
151.35  120.1045, subdivision 1, is amended to read: 
151.36     Subdivision 1.  [BACKGROUND CHECK REQUIRED.] (a) A school 
152.1   hiring authority, as defined in subdivision 4, shall request a 
152.2   criminal history background check from the superintendent of the 
152.3   bureau of criminal apprehension on all individuals who are 
152.4   offered employment in the school, as defined in subdivision 4.  
152.5   In order to be eligible for employment, an individual who is 
152.6   offered employment must provide an executed criminal history 
152.7   consent form and a money order or check payable to either the 
152.8   bureau of criminal apprehension or the school hiring authority, 
152.9   at the election of the school hiring authority, in an amount 
152.10  equal to the actual cost to the bureau of criminal apprehension 
152.11  and the school district of conducting the criminal history 
152.12  background check.  A school hiring authority electing to receive 
152.13  payment may, at its discretion, accept payment in the form of a 
152.14  negotiable instrument other than a money order or check and 
152.15  shall pay the superintendent of the bureau of criminal 
152.16  apprehension directly to conduct the background check.  The 
152.17  superintendent of the bureau of criminal apprehension shall 
152.18  conduct the background check by retrieving criminal history data 
152.19  maintained in the criminal justice information system 
152.20  computers.  A school hiring authority, at its discretion, may 
152.21  elect not to request a criminal history background check on an 
152.22  individual who holds an initial entrance license issued by the 
152.23  state board of teaching or the state board of 
152.24  education commissioner of children, families, and learning 
152.25  within the 12 months preceding an offer of employment. 
152.26     (b) A school hiring authority may use the results of a 
152.27  criminal background check conducted at the request of another 
152.28  school hiring authority if: 
152.29     (1) the results of the criminal background check are on 
152.30  file with the other school hiring authority or otherwise 
152.31  accessible; 
152.32     (2) the other school hiring authority conducted a criminal 
152.33  background check within the previous 12 months; 
152.34     (3) the individual who is the subject of the criminal 
152.35  background check executes a written consent form giving a school 
152.36  hiring authority access to the results of the check; and 
153.1      (4) there is no reason to believe that the individual has 
153.2   committed an act subsequent to the check that would disqualify 
153.3   the individual for employment. 
153.4      (c) A school hiring authority may, at its discretion, 
153.5   request a criminal history background check from the 
153.6   superintendent of the bureau of criminal apprehension on any 
153.7   individual who seeks to enter a school or its grounds for the 
153.8   purpose of serving as a school volunteer or working as an 
153.9   independent contractor or student employee.  In order for an 
153.10  individual to enter a school or its grounds under this paragraph 
153.11  when the school hiring authority elects to request a criminal 
153.12  history background check on the individual, the individual first 
153.13  must provide an executed criminal history consent form and a 
153.14  money order, check, or other negotiable instrument payable to 
153.15  the school district in an amount equal to the actual cost to the 
153.16  bureau of criminal apprehension and the school district of 
153.17  conducting the criminal history background check.  
153.18  Notwithstanding section 299C.62, subdivision 1, the cost of the 
153.19  criminal history background check under this paragraph is the 
153.20  responsibility of the individual. 
153.21     (d) For all nonstate residents who are offered employment 
153.22  in a school, a school hiring authority shall request a criminal 
153.23  history background check on such individuals from the 
153.24  superintendent of the bureau of criminal apprehension and from 
153.25  the government agency performing the same function in the 
153.26  resident state or, if no government entity performs the same 
153.27  function in the resident state, from the Federal Bureau of 
153.28  Investigation.  Such individuals must provide an executed 
153.29  criminal history consent form and a money order, check, or other 
153.30  negotiable instrument payable to the school hiring authority in 
153.31  an amount equal to the actual cost to the government agencies 
153.32  and the school district of conducting the criminal history 
153.33  background check.  Notwithstanding section 299C.62, subdivision 
153.34  1, the cost of the criminal history background check under this 
153.35  paragraph is the responsibility of the individual. 
153.36     Sec. 22.  Minnesota Statutes 1996, section 120.17, 
154.1   subdivision 3, is amended to read: 
154.2      Subd. 3.  [RULES OF THE STATE BOARD COMMISSIONER OF 
154.3   CHILDREN, FAMILIES, AND LEARNING.] (a) The state 
154.4   board commissioner of children, families, and learning shall 
154.5   promulgate rules relative to qualifications of essential 
154.6   personnel, courses of study, methods of instruction, pupil 
154.7   eligibility, size of classes, rooms, equipment, supervision, 
154.8   parent consultation, and any other rules it the commissioner 
154.9   deems necessary for instruction of children with a disability.  
154.10  These rules shall provide standards and procedures appropriate 
154.11  for the implementation of and within the limitations of 
154.12  subdivisions 3a and 3b.  These rules shall also provide 
154.13  standards for the discipline, control, management and protection 
154.14  of children with a disability.  The state board commissioner 
154.15  shall not adopt rules for pupils served in level 1, 2, or 3, as 
154.16  defined in Minnesota Rules, part 3525.2340, establishing either 
154.17  case loads or the maximum number of pupils that may be assigned 
154.18  to special education teachers.  The state board commissioner, in 
154.19  consultation with the departments of health and human services, 
154.20  shall adopt permanent rules for instruction and services for 
154.21  children under age five and their families.  These rules are 
154.22  binding on state and local education, health, and human services 
154.23  agencies.  The state board commissioner shall adopt rules to 
154.24  determine eligibility for special education services.  The rules 
154.25  shall include procedures and standards by which to grant 
154.26  variances for experimental eligibility criteria.  The state 
154.27  board commissioner shall, according to section 14.05, 
154.28  subdivision 4, notify a district applying for a variance from 
154.29  the rules within 45 calendar days of receiving the request 
154.30  whether the request for the variance has been granted or 
154.31  denied.  If a request is denied, the board commissioner shall 
154.32  specify the program standards used to evaluate the request and 
154.33  the reasons for denying the request.  
154.34     (b) The state's regulatory scheme should support schools by 
154.35  assuring that all state special education rules adopted by the 
154.36  state board of education commissioner of children, families, and 
155.1   learning result in one or more of the following outcomes: 
155.2      (1) increased time available to teachers for educating 
155.3   students through direct and indirect instruction; 
155.4      (2) consistent and uniform access to effective education 
155.5   programs for students with disabilities throughout the state; 
155.6      (3) reduced inequalities, conflict, and court actions 
155.7   related to the delivery of special education instruction and 
155.8   services for students with disabilities; 
155.9      (4) clear expectations for service providers and for 
155.10  students with disabilities; 
155.11     (5) increased accountability for all individuals and 
155.12  agencies that provide instruction and other services to students 
155.13  with disabilities; 
155.14     (6) greater focus for the state and local resources 
155.15  dedicated to educating students with disabilities; and 
155.16     (7) clearer standards for evaluating the effectiveness of 
155.17  education and support services for students with disabilities. 
155.18     Sec. 23.  Minnesota Statutes 1996, section 120.17, 
155.19  subdivision 3b, is amended to read: 
155.20     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
155.21  utilize at least the following procedures for decisions 
155.22  involving identification, assessment, and educational placement 
155.23  of children with a disability: 
155.24     (a) Parents and guardians shall receive prior written 
155.25  notice of:  
155.26     (1) any proposed formal educational assessment or proposed 
155.27  denial of a formal educational assessment of their child; 
155.28     (2) a proposed placement of their child in, transfer from 
155.29  or to, or denial of placement in a special education program; or 
155.30     (3) the proposed provision, addition, denial or removal of 
155.31  special education services for their child; 
155.32     (b) The district shall not proceed with the initial formal 
155.33  assessment of a child, the initial placement of a child in a 
155.34  special education program, or the initial provision of special 
155.35  education services for a child without the prior written consent 
155.36  of the child's parent or guardian.  The refusal of a parent or 
156.1   guardian to consent may be overridden by the decision in a 
156.2   hearing held pursuant to clause (e) at the district's 
156.3   initiative; 
156.4      (c) Parents and guardians shall have an opportunity to meet 
156.5   with appropriate district staff in at least one conciliation 
156.6   conference, mediation, or other method of alternative dispute 
156.7   resolution that the parties agree to, if they object to any 
156.8   proposal of which they are notified pursuant to clause (a).  The 
156.9   conciliation process or other form of alternative dispute 
156.10  resolution shall not be used to deny or delay a parent or 
156.11  guardian's right to a due process hearing.  If the parent or 
156.12  guardian refuses efforts by the district to conciliate the 
156.13  dispute with the school district, the requirement of an 
156.14  opportunity for conciliation or other alternative dispute 
156.15  resolution shall be deemed to be satisfied.  Notwithstanding 
156.16  other law, in any proceeding following a conciliation 
156.17  conference, the school district must not offer a conciliation 
156.18  conference memorandum into evidence, except for any portions 
156.19  that describe the district's final proposed offer of service.  
156.20  Otherwise, with respect to forms of dispute resolution, 
156.21  mediation, or conciliation, Minnesota Rule of Evidence 408 
156.22  applies.  The department of children, families, and learning may 
156.23  reimburse the districts or directly pay the costs of lay 
156.24  advocates, not to exceed $150 per dispute, used in conjunction 
156.25  with alternative dispute resolution. 
156.26     (d) The commissioner shall establish a mediation process to 
156.27  assist parents, school districts, or other parties to resolve 
156.28  disputes arising out of the identification, assessment, or 
156.29  educational placement of children with a disability.  The 
156.30  mediation process must be offered as an informal alternative to 
156.31  the due process hearing provided under clause (e), but must not 
156.32  be used to deny or postpone the opportunity of a parent or 
156.33  guardian to obtain a due process hearing. 
156.34     (e) Parents, guardians, and the district shall have an 
156.35  opportunity to obtain an impartial due process hearing initiated 
156.36  and conducted by and in the school district responsible for 
157.1   assuring that an appropriate program is provided in accordance 
157.2   with state board rules, if the parent or guardian continues to 
157.3   object to:  
157.4      (1) a proposed formal educational assessment or proposed 
157.5   denial of a formal educational assessment of their child; 
157.6      (2) the proposed placement of their child in, or transfer 
157.7   of their child to a special education program; 
157.8      (3) the proposed denial of placement of their child in a 
157.9   special education program or the transfer of their child from a 
157.10  special education program; 
157.11     (4) the proposed provision or addition of special education 
157.12  services for their child; or 
157.13     (5) the proposed denial or removal of special education 
157.14  services for their child. 
157.15     Within five business days after the request for a hearing, 
157.16  or as directed by the hearing officer, the objecting party shall 
157.17  provide the other party with a brief written statement of 
157.18  particulars of the objection, the reasons for the objection, and 
157.19  the specific remedies sought.  The other party shall provide the 
157.20  objecting party with a written response to the statement of 
157.21  objections within five business days of receipt of the statement.
157.22     The hearing shall take place before an impartial hearing 
157.23  officer mutually agreed to by the school board and the parent or 
157.24  guardian.  Within four business days of the receipt of the 
157.25  request for the hearing, if the parties have not agreed on the 
157.26  hearing officer, the school board shall request the commissioner 
157.27  to appoint a hearing officer.  The school board shall include 
157.28  with the request the name of the person requesting the hearing, 
157.29  the name of the student, the attorneys involved, if any, and the 
157.30  date the hearing request was received.  The hearing officer 
157.31  shall not be a school board member or employee of the school 
157.32  district where the child resides or of the child's school 
157.33  district of residence, an employee of any other public agency 
157.34  involved in the education or care of the child, or any person 
157.35  with a personal or professional interest which would conflict 
157.36  with the person's objectivity at the hearing.  A person who 
158.1   otherwise qualifies as a hearing officer is not an employee of 
158.2   the district solely because the person is paid by the district 
158.3   to serve as a hearing officer.  If the hearing officer requests 
158.4   an independent educational assessment of a child, the cost of 
158.5   the assessment shall be at district expense.  The proceedings 
158.6   shall be recorded and preserved, at the expense of the school 
158.7   district, pending ultimate disposition of the action. 
158.8      (f) The decision of the hearing officer pursuant to clause 
158.9   (e) shall be rendered not more than 45 calendar days from the 
158.10  date of the receipt of the request for the hearing, except that 
158.11  hearing officers are encouraged to accelerate the timeline to 30 
158.12  days for children birth through two whose needs change rapidly 
158.13  and require quick resolution of complaints.  A hearing officer 
158.14  may not grant specific extensions of time beyond the 45-day 
158.15  period unless requested by either party for good cause shown on 
158.16  the record.  The decision of the hearing officer shall be 
158.17  binding on all parties unless appealed to the commissioner by 
158.18  the parent; guardian; school board of the district where the 
158.19  child resides pursuant to clause (g); and also in the case of 
158.20  children birth through two, by the county board. 
158.21     The local decision shall: 
158.22     (1) be in writing; 
158.23     (2) state the controlling facts upon which the decision is 
158.24  made in sufficient detail to apprise the parties and the hearing 
158.25  review officer of the basis and reason for the decision; and 
158.26     (3) be based on the standards set forth in subdivision 3a 
158.27  and the rules of the state board commissioner of children, 
158.28  families, and learning. 
158.29     (g) Any local decision issued pursuant to clauses (e) and 
158.30  (f) may be appealed to the commissioner within 30 calendar days 
158.31  of receipt of that written decision, by the parent, guardian, or 
158.32  the school board of the district responsible for assuring that 
158.33  an appropriate program is provided in accordance with state 
158.34  board rules.  The appealing party shall note the specific parts 
158.35  of the hearing decision being appealed. 
158.36     If the decision is appealed, a written transcript of the 
159.1   hearing shall be made by the school district and provided by the 
159.2   district to the parties involved and the hearing review officer 
159.3   within five calendar days of the filing of the appeal.  The 
159.4   hearing review officer shall conduct an appellate review and 
159.5   issue a final independent decision based on an impartial review 
159.6   of the local decision and the entire record within 30 calendar 
159.7   days after the filing of the appeal.  However, the hearing 
159.8   review officer shall seek additional evidence if necessary and 
159.9   may afford the parties an opportunity for written or oral 
159.10  argument; provided any hearing held to seek additional evidence 
159.11  shall be an impartial due process hearing but shall be deemed 
159.12  not to be a contested case hearing for purposes of chapter 14.  
159.13  The hearing review officer may grant specific extensions of time 
159.14  beyond the 30-day period at the request of any party for good 
159.15  cause shown on the record. 
159.16     The final decision shall: 
159.17     (1) be in writing; 
159.18     (2) include findings and conclusions; and 
159.19     (3) be based upon the standards set forth in subdivision 3a 
159.20  and in the rules of the state board commissioner of children, 
159.21  families, and learning. 
159.22     (h) The decision of the hearing review officer shall be 
159.23  final unless appealed by the parent or guardian or school board 
159.24  to the Minnesota court of appeals or federal district court as 
159.25  provided by federal law.  State judicial review shall be in 
159.26  accordance with chapter 14.  
159.27     (i) The commissioner of children, families, and learning 
159.28  shall select an individual who has the qualifications enumerated 
159.29  in this paragraph to serve as the hearing review officer: 
159.30     (1) the individual must be knowledgeable and impartial; 
159.31     (2) the individual must not have a personal interest in or 
159.32  specific involvement with the student who is a party to the 
159.33  hearing; 
159.34     (3) the individual must not have been employed as an 
159.35  administrator by the district that is a party to the hearing; 
159.36     (4) the individual must not have been involved in the 
160.1   selection of the administrators of the district that is a party 
160.2   to the hearing; 
160.3      (5) the individual must not have a personal, economic, or 
160.4   professional interest in the outcome of the hearing other than 
160.5   the proper administration of the federal and state laws, rules, 
160.6   and policies; 
160.7      (6) the individual must not have substantial involvement in 
160.8   the development of a state or local policy or procedures that 
160.9   are challenged in the appeal; 
160.10     (7) the individual is not a current employee or board 
160.11  member of a Minnesota public school district, education 
160.12  district, intermediate unit or regional education agency, the 
160.13  department of children, families, and learning, the state board 
160.14  of education; and 
160.15     (8) the individual is not a current employee or board 
160.16  member of a disability advocacy organization or group.  
160.17     (j) In all appeals, the parent or guardian of the pupil 
160.18  with a disability or the district that is a party to the hearing 
160.19  may challenge the impartiality or competence of the proposed 
160.20  hearing review officer by applying to the hearing review officer.
160.21     (k) Pending the completion of proceedings pursuant to this 
160.22  subdivision, unless the district and the parent or guardian of 
160.23  the child agree otherwise, the child shall remain in the child's 
160.24  current educational placement and shall not be denied initial 
160.25  admission to school. 
160.26     (l) The child's school district of residence, a resident 
160.27  district, and providing district shall receive notice of and may 
160.28  be a party to any hearings or appeals under this subdivision. 
160.29     (m) A school district is not liable for harmless technical 
160.30  violations of this subdivision or rules implementing this 
160.31  subdivision if the school district can demonstrate on a 
160.32  case-by-case basis that the violations did not harm the 
160.33  student's educational progress or the parent or guardian's right 
160.34  to notice, participation, or due process. 
160.35     (n) Within ten calendar days after appointment, the hearing 
160.36  officer shall schedule and hold a prehearing conference.  At 
161.1   that conference, or later, the hearing officer may take any 
161.2   appropriate action that a court might take under Rule 16 of 
161.3   Minnesota Rules of Civil Procedure including, but not limited 
161.4   to, scheduling, jurisdiction, and listing witnesses including 
161.5   expert witnesses. 
161.6      (o) A hearing officer or hearing review officer appointed 
161.7   under this subdivision shall be deemed to be an employee of the 
161.8   state under section 3.732 for the purposes of section 3.736 only.
161.9      (p) In order to be eligible for selection, hearing officers 
161.10  and hearing review officers shall participate in training and 
161.11  follow procedures as designated by the commissioner. 
161.12     (q) The hearing officer may admit all evidence which 
161.13  possesses probative value, including hearsay, if it is the type 
161.14  of evidence on which reasonable, prudent persons are accustomed 
161.15  to rely in the conduct of their serious affairs.  The hearing 
161.16  officer shall give effect to the rules of privilege recognized 
161.17  by law.  Evidence which is incompetent, irrelevant, immaterial, 
161.18  or unduly repetitious shall be excluded. 
161.19     Sec. 24.  Minnesota Statutes 1996, section 120.17, 
161.20  subdivision 7a, is amended to read: 
161.21     Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
161.22  Responsibility for special instruction and services for a 
161.23  visually disabled or hearing impaired child attending the 
161.24  Minnesota state academy for the deaf or the Minnesota state 
161.25  academy for the blind shall be determined in the following 
161.26  manner: 
161.27     (a) The legal residence of the child shall be the school 
161.28  district in which the child's parent or guardian resides. 
161.29     (b) When it is determined pursuant to section 128A.05, 
161.30  subdivision 1 or 2, that the child is entitled to attend either 
161.31  school, the state board of the Faribault academies shall provide 
161.32  the appropriate educational program for the child.  The state 
161.33  board of the Faribault academies shall make a tuition charge to 
161.34  the child's district of residence for the cost of providing the 
161.35  program.  The amount of tuition charged shall not exceed the 
161.36  basic revenue of the district for that child, for the amount of 
162.1   time the child is in the program.  For purposes of this 
162.2   subdivision, "basic revenue" has the meaning given it in section 
162.3   124A.22, subdivision 2.  The district of the child's residence 
162.4   shall pay the tuition and may claim general education aid for 
162.5   the child.  Tuition received by the state board of the Faribault 
162.6   academies, except for tuition received under clause (c), shall 
162.7   be deposited in the state treasury as provided in clause (g). 
162.8      (c) In addition to the tuition charge allowed in clause 
162.9   (b), the academies may charge the child's district of residence 
162.10  for the academy's unreimbursed cost of providing an 
162.11  instructional aide assigned to that child, if that aide is 
162.12  required by the child's individual education plan.  Tuition 
162.13  received under this clause must be used by the academies to 
162.14  provide the required service. 
162.15     (d) When it is determined that the child can benefit from 
162.16  public school enrollment but that the child should also remain 
162.17  in attendance at the applicable school, the school district 
162.18  where the institution is located shall provide an appropriate 
162.19  educational program for the child and shall make a tuition 
162.20  charge to the state board of the Faribault academies for the 
162.21  actual cost of providing the program, less any amount of aid 
162.22  received pursuant to section 124.32.  The state board of the 
162.23  Faribault academies shall pay the tuition and other program 
162.24  costs including the unreimbursed transportation costs.  Aids for 
162.25  children with a disability shall be paid to the district 
162.26  providing the special instruction and services.  Special 
162.27  transportation shall be provided by the district providing the 
162.28  educational program and the state shall reimburse such district 
162.29  within the limits provided by law.  
162.30     (e) Notwithstanding the provisions of clauses (b) and (d), 
162.31  the state board of the Faribault academies may agree to make a 
162.32  tuition charge for less than the amount specified in clause (b) 
162.33  for pupils attending the applicable school who are residents of 
162.34  the district where the institution is located and who do not 
162.35  board at the institution, if that district agrees to make a 
162.36  tuition charge to the state board of the Faribault academies for 
163.1   less than the amount specified in clause (d) for providing 
163.2   appropriate educational programs to pupils attending the 
163.3   applicable school. 
163.4      (f) Notwithstanding the provisions of clauses (b) and (d), 
163.5   the state board of the Faribault academies may agree to supply 
163.6   staff from the Minnesota state academy for the deaf and the 
163.7   Minnesota state academy for the blind to participate in the 
163.8   programs provided by the district where the institutions are 
163.9   located when the programs are provided to students in attendance 
163.10  at the state schools.  
163.11     (g) On May 1 of each year, the state board of the Faribault 
163.12  academies shall count the actual number of Minnesota resident 
163.13  kindergarten and elementary students and the actual number of 
163.14  Minnesota resident secondary students enrolled and receiving 
163.15  education services at the Minnesota state academy for the deaf 
163.16  and the Minnesota state academy for the blind.  The state board 
163.17  of the Faribault academies shall deposit in the state treasury 
163.18  an amount equal to all tuition received less:  
163.19     (1) the total number of students on May 1 less 175, times 
163.20  the ratio of the number of kindergarten and elementary students 
163.21  to the total number of students on May 1, times the general 
163.22  education formula allowance; plus 
163.23     (2) the total number of students on May 1 less 175, times 
163.24  the ratio of the number of secondary students on May 1 to the 
163.25  total number of students on May 1, times 1.3, times the general 
163.26  education formula allowance.  
163.27     (h) The sum provided by the calculation in clause (g), 
163.28  subclauses (1) and (2), must be deposited in the state treasury 
163.29  and credited to the general operation account of the academy for 
163.30  the deaf and the academy for the blind.  
163.31     (i) There is annually appropriated to the department of 
163.32  children, families, and learning for the Faribault academies the 
163.33  tuition amounts received and credited to the general operation 
163.34  account of the academies under this section.  A balance in an 
163.35  appropriation under this paragraph does not cancel but is 
163.36  available in successive fiscal years. 
164.1      Sec. 25.  Minnesota Statutes 1996, section 120.66, 
164.2   subdivision 1, is amended to read: 
164.3      Subdivision 1.  The state board of education commissioner 
164.4   of children, families, and learning shall: 
164.5      (1) Promulgate rules necessary to the operation of sections 
164.6   120.59 to 120.67; 
164.7      (2) Cooperate with and provide supervision of flexible 
164.8   learning year programs to determine compliance with the 
164.9   provisions of sections 120.59 to 120.67, the state board 
164.10  department standards and qualifications, and the proposed 
164.11  program as submitted and approved; 
164.12     (3) Provide any necessary adjustments of (a) attendance and 
164.13  membership computations and (b) the dates and percentages of 
164.14  apportionment of state aids; 
164.15     (4) Consistent with the definition of "average daily 
164.16  membership" in section 124.17, subdivision 2, furnish the board 
164.17  of a district implementing a flexible learning year program with 
164.18  a formula for computing average daily membership.  This formula 
164.19  shall be computed so that tax levies to be made by the district, 
164.20  state aids to be received by the district, and any and all other 
164.21  formulas based upon average daily membership are not affected 
164.22  solely as a result of adopting this plan of instruction. 
164.23     Sec. 26.  Minnesota Statutes 1996, section 120.66, 
164.24  subdivision 2, is amended to read: 
164.25     Subd. 2.  Sections 120.59 to 120.67 shall not be construed 
164.26  to authorize the state board commissioner to require the 
164.27  establishment of a flexible learning year program in any 
164.28  district in which the board has not voted to establish, 
164.29  maintain, and operate such a program. 
164.30     Sec. 27.  Minnesota Statutes 1996, section 120.73, 
164.31  subdivision 1, is amended to read: 
164.32     Subdivision 1.  A school board is authorized to require 
164.33  payment of fees in the following areas: 
164.34     (a) in any program where the resultant product, in excess 
164.35  of minimum requirements and at the pupil's option, becomes the 
164.36  personal property of the pupil; 
165.1      (b) admission fees or charges for extra curricular 
165.2   activities, where attendance is optional and where the admission 
165.3   fees or charges a student must pay to attend or participate in 
165.4   an extracurricular activity is the same for all students, 
165.5   regardless of whether the student is enrolled in a public or 
165.6   home school; 
165.7      (c) a security deposit for the return of materials, 
165.8   supplies, or equipment; 
165.9      (d) personal physical education and athletic equipment and 
165.10  apparel, although any pupil may personally provide it if it 
165.11  meets reasonable requirements and standards relating to health 
165.12  and safety established by the school board; 
165.13     (e) items of personal use or products which a student has 
165.14  an option to purchase such as student publications, class rings, 
165.15  annuals, and graduation announcements; 
165.16     (f) fees specifically permitted by any other statute, 
165.17  including but not limited to section 171.04, subdivision 1, 
165.18  clause (1); 
165.19     (g) field trips considered supplementary to a district 
165.20  educational program; 
165.21     (h) any authorized voluntary student health and accident 
165.22  benefit plan; 
165.23     (i) for the use of musical instruments owned or rented by 
165.24  the district, a reasonable rental fee not to exceed either the 
165.25  rental cost to the district or the annual depreciation plus the 
165.26  actual annual maintenance cost for each instrument; 
165.27     (j) transportation of pupils to and from extra curricular 
165.28  activities conducted at locations other than school, where 
165.29  attendance is optional; 
165.30     (k) transportation of pupils to and from school for which 
165.31  aid for fiscal year 1996 is not authorized under Minnesota 
165.32  Statutes 1994, section 124.223, subdivision 1, and for which 
165.33  levy for fiscal year 1996 is not authorized under Minnesota 
165.34  Statutes 1994, section 124.226, subdivision 5, if a district 
165.35  charging fees for transportation of pupils establishes 
165.36  guidelines for that transportation to ensure that no pupil is 
166.1   denied transportation solely because of inability to pay; 
166.2      (l) motorcycle classroom education courses conducted 
166.3   outside of regular school hours; provided the charge shall not 
166.4   exceed the actual cost of these courses to the school district; 
166.5      (m) transportation to and from post-secondary institutions 
166.6   for pupils enrolled under the post-secondary enrollment options 
166.7   program under section 123.39, subdivision 16.  Fees collected 
166.8   for this service must be reasonable and shall be used to reduce 
166.9   the cost of operating the route.  Families who qualify for 
166.10  mileage reimbursement under section 123.3514, subdivision 8, may 
166.11  use their state mileage reimbursement to pay this fee.  If no 
166.12  fee is charged, districts shall allocate costs based on the 
166.13  number of pupils riding the route; and 
166.14     (n) fees or tuition for instruction qualifying as an 
166.15  education-related expense according to section 290.0674, 
166.16  subdivision 1, clause (1). 
166.17     Sec. 28.  Minnesota Statutes 1996, section 120.74, 
166.18  subdivision 1, is amended to read: 
166.19     Subdivision 1.  (a) A school board is not authorized to 
166.20  charge fees in the following areas: 
166.21     (1) textbooks, workbooks, art materials, laboratory 
166.22  supplies, towels; 
166.23     (2) supplies necessary for participation in any 
166.24  instructional course except as authorized in sections 120.73 and 
166.25  120.75; 
166.26     (3) field trips which are required as a part of a basic 
166.27  education program or course; 
166.28     (4) graduation caps, gowns, any specific form of dress 
166.29  necessary for any educational program, and diplomas; 
166.30     (5) instructional costs for necessary school personnel 
166.31  employed in any course or educational program required for 
166.32  graduation; 
166.33     (6) library books required to be utilized for any 
166.34  educational course or program; 
166.35     (7) admission fees, dues, or fees for any activity the 
166.36  pupil is required to attend; 
167.1      (8) any admission or examination cost for any required 
167.2   educational course or program, except as authorized in section 
167.3   120.73, subdivision 1, clause (n); 
167.4      (9) locker rentals; 
167.5      (10) transportation of pupils (i) for which state 
167.6   transportation aid for fiscal year 1996 is authorized pursuant 
167.7   to Minnesota Statutes 1994, section 124.223, or (ii) for which a 
167.8   levy for fiscal year 1996 is authorized under Minnesota Statutes 
167.9   1994, section 124.226, subdivision 5. 
167.10     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
167.11  school board may charge fees for textbooks, workbooks, and 
167.12  library books, lost or destroyed by students.  The board must 
167.13  annually notify parents or guardians and students about its 
167.14  policy to charge a fee under this paragraph. 
167.15     Sec. 29.  Minnesota Statutes 1996, section 121.02, 
167.16  subdivision 1, is amended to read: 
167.17     Subdivision 1.  [DEPARTMENT.] A state department of 
167.18  children, families, and learning is hereby created which shall 
167.19  be maintained under the direction of a state board of education 
167.20  composed of nine representative citizens of the state, at least 
167.21  one of whom shall reside in each congressional district in the 
167.22  state. 
167.23     Of the nine representative citizens of the state who are 
167.24  appointed to the state board of education not less than three 
167.25  members thereof shall previously thereto have served as an 
167.26  elected member of a board of education of a school district 
167.27  however organized. 
167.28     The members of the state board shall be appointed by the 
167.29  governor, with the advice and consent of the senate.  One member 
167.30  shall be chosen annually as president, but no member shall serve 
167.31  as president more than three consecutive years.  The state board 
167.32  shall hold its annual meeting in August.  It shall hold meetings 
167.33  on dates and at places as it designates.  No member shall hold 
167.34  any public office, or represent or be employed by any board of 
167.35  education or school district, public or private, and shall not 
167.36  voluntarily have any personal financial interest in any contract 
168.1   with a board of education or school district, or be engaged in 
168.2   any capacity where a conflict of interest may arise the 
168.3   commissioner of children, families, and learning. 
168.4      Sec. 30.  Minnesota Statutes 1996, section 121.11, 
168.5   subdivision 7d, is amended to read: 
168.6      Subd. 7d.  [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, 
168.7   AND LICENSURE RULES.] (a) The state board may By January 10, 
168.8   1999, the commissioner shall make rules relating to 
168.9   desegregation/integration, and inclusive education, and 
168.10  licensure of school personnel not licensed by the board of 
168.11  teaching. 
168.12     (b) In adopting a rule related to school 
168.13  desegregation/integration, the state board commissioner shall 
168.14  address the need for equal educational opportunities for all 
168.15  students and racial balance as defined by the state board.  
168.16     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
168.17  121.1113, subdivision 1, is amended to read: 
168.18     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
168.19  with advice from experts with appropriate technical 
168.20  qualifications and experience and stakeholders, shall include in 
168.21  the comprehensive assessment system, for each grade level to be 
168.22  tested, a single statewide norm-referenced or 
168.23  criterion-referenced test, or a combination of a norm-referenced 
168.24  and a criterion-referenced test, which shall be highly 
168.25  correlated with the state's graduation standards and 
168.26  administered annually to all students in the third, fifth, and 
168.27  eighth grades.  The commissioner shall establish one or more 
168.28  months during which schools shall administer the tests to 
168.29  students each school year.  The Minnesota basic skills tests in 
168.30  reading and mathematics shall fulfill students' eighth grade 
168.31  testing requirements.  
168.32     (b) In addition, at the secondary level, districts shall 
168.33  assess student performance in all required learning areas and 
168.34  selected required standards within each area of the profiles of 
168.35  learning.  The testing instruments and testing process shall be 
168.36  determined by the commissioner.  The results shall be aggregated 
169.1   at the site and district level.  The testing shall be 
169.2   administered beginning in the 1999-2000 school year and 
169.3   thereafter. 
169.4      (c) The comprehensive assessment system shall include an 
169.5   evaluation of school site and school district performance levels 
169.6   during the 1997-1998 school year and thereafter using an 
169.7   established performance baseline developed from students' test 
169.8   scores under this section that records, at a minimum, students' 
169.9   unweighted mean test scores in each tested subject, a second 
169.10  performance baseline that reports, at a minimum, the same 
169.11  unweighted mean test scores of only those students enrolled in 
169.12  the school by January 1 of the previous school year, and a third 
169.13  performance baseline that reports the same unweighted test 
169.14  scores of all students except those students receiving limited 
169.15  English proficiency instruction.  The evaluation also shall 
169.16  record separately, in proximity to the performance baselines, 
169.17  the percentages of students who are eligible to receive a free 
169.18  or reduced price school meal, demonstrate limited English 
169.19  proficiency, or are eligible to receive special education 
169.20  services. 
169.21     (d) In addition to the testing and reporting requirements 
169.22  under paragraphs (a), (b), and (c), the commissioner, in 
169.23  consultation with the state board of education, shall include 
169.24  the following components in the statewide educational 
169.25  accountability and public reporting system: 
169.26     (1) uniform statewide testing of all third, fifth, eighth, 
169.27  and post-eighth grade students with exemptions, only with parent 
169.28  or guardian approval, from the testing requirement only for 
169.29  those very few students for whom the student's individual 
169.30  education plan team under section 120.17, subdivision 2, 
169.31  determines that the student is incapable of taking a statewide 
169.32  test, or a limited English proficiency student under section 
169.33  126.262, subdivision 2, if the student has been in the United 
169.34  States for fewer than 12 months and for whom special language 
169.35  barriers exist, such as the student's native language does not 
169.36  have a written form or the district does not have access to 
170.1   appropriate interpreter services for the student's native 
170.2   language; 
170.3      (2) educational indicators that can be aggregated and 
170.4   compared across school districts and across time on a statewide 
170.5   basis; 
170.6      (3) students' scores on the American College Test; 
170.7      (4) participation in the National Assessment of Educational 
170.8   Progress so that the state can benchmark its performance against 
170.9   the nation and other states, and, where possible, against other 
170.10  countries, and contribute to the national effort to monitor 
170.11  achievement; and 
170.12     (5) basic skills and advanced competencies connecting 
170.13  teaching and learning to high academic standards, assessment, 
170.14  and transitions to citizenship and employment. 
170.15     (e) Districts must report exemptions under paragraph (d), 
170.16  clause (1), to the commissioner consistent with a format 
170.17  provided by the commissioner. 
170.18     Sec. 32.  Minnesota Statutes 1996, section 121.1115, 
170.19  subdivision 1, is amended to read: 
170.20     Subdivision 1.  [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 
170.21  REPORTING.] Consistent with the state board of education process 
170.22  to adopt a results-oriented graduation rule under section 
170.23  121.11, subdivision 7c, the state board of education and The 
170.24  department of children, families, and learning, in consultation 
170.25  with education and other system stakeholders, shall establish a 
170.26  coordinated and comprehensive system of educational 
170.27  accountability and public reporting that promotes higher 
170.28  academic achievement. 
170.29     Sec. 33.  Minnesota Statutes 1996, section 121.14, is 
170.30  amended to read: 
170.31     121.14 [RECOMMENDATIONS; BUDGET.] 
170.32     The state board and the commissioner of children, families, 
170.33  and learning shall recommend to the governor and legislature 
170.34  such modification and unification of laws relating to the state 
170.35  system of education as shall make those laws more readily 
170.36  understood and more effective in execution.  The commissioner of 
171.1   children, families, and learning shall prepare a biennial 
171.2   education budget which shall be submitted to the governor and 
171.3   legislature, such budget to contain a complete statement of 
171.4   finances pertaining to the maintenance of the state department 
171.5   and to the distribution of state aid.  
171.6      Sec. 34.  Minnesota Statutes 1996, section 121.148, 
171.7   subdivision 3, is amended to read: 
171.8      Subd. 3.  [NEGATIVE REVIEW AND COMMENT.] (a) If the 
171.9   commissioner submits a negative review and comment for a 
171.10  proposal according to section 121.15, the following steps must 
171.11  be taken: 
171.12     (1) the commissioner must notify the school board of the 
171.13  proposed negative review and comment and schedule a public 
171.14  meeting within 60 days of the notification within that school 
171.15  district to discuss the proposed negative review and comment on 
171.16  the school facility; and 
171.17     (2) the school board shall appoint an advisory task force 
171.18  of up to five members to advise the school board and the 
171.19  commissioner on the advantages, disadvantages, and alternatives 
171.20  to the proposed facility at the public meeting.  One member of 
171.21  the advisory task force must also be a member of the county 
171.22  facilities group. 
171.23     (b) After attending the public meeting, the commissioner 
171.24  shall reconsider the proposal.  If the commissioner submits a 
171.25  negative review and comment, the school board may appeal that 
171.26  decision to the state board of education under chapter 14.  The 
171.27  state board of education may either uphold the commissioner's 
171.28  negative review and comment or instruct the commissioner to 
171.29  submit a positive or unfavorable review and comment on the 
171.30  proposed facility. 
171.31     (c) A school board may not proceed with construction if the 
171.32  state board of education upholds the commissioner's negative 
171.33  review and comment is upheld or if the commissioner's negative 
171.34  review and comment is not appealed. 
171.35     Sec. 35.  Minnesota Statutes 1996, section 121.16, is 
171.36  amended by adding a subdivision to read: 
172.1      Subd. 4.  [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The 
172.2   commissioner of children, families, and learning shall prepare a 
172.3   uniform system of records for public schools and require reports 
172.4   from superintendents and principals of schools, teachers, school 
172.5   officers, and the chief officers of public and other educational 
172.6   institutions to give such facts as it may deem of public value.  
172.7   All reports required of school districts by the commissioner 
172.8   shall be in conformance with the uniform financial accounting 
172.9   and reporting system.  With the cooperation of the state 
172.10  auditor, the commissioner shall establish and carry into effect 
172.11  a uniform system of accounting by public school officers and 
172.12  shall have authority to supervise and examine the accounts and 
172.13  other records of all public schools. 
172.14     Sec. 36.  Minnesota Statutes 1996, section 121.16, is 
172.15  amended by adding a subdivision to read: 
172.16     Subd. 5.  [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 
172.17  The commissioner of children, families, and learning shall adopt 
172.18  goals for and exercise general supervision over public schools 
172.19  and public educational agencies in the state, classify and 
172.20  standardize public elementary and secondary schools, and prepare 
172.21  for them outlines and suggested courses of study.  The 
172.22  commissioner shall develop a plan to attain the adopted goals.  
172.23  The commissioner may recognize educational accrediting agencies 
172.24  for the sole purposes of sections 120.101, 120.102, and 120.103. 
172.25     Sec. 37.  Minnesota Statutes 1996, section 121.16, is 
172.26  amended by adding a subdivision to read: 
172.27     Subd. 6.  [ADMINISTRATIVE RULES.] The commissioner may 
172.28  adopt new rules and amend them or amend any existing rules only 
172.29  under specific authority.  The commissioner may repeal any 
172.30  existing rules.  Notwithstanding the provisions of section 
172.31  14.05, subdivision 4, the commissioner may grant a variance to 
172.32  rules adopted by the commissioner upon application by a school 
172.33  district for purposes of implementing experimental programs in 
172.34  learning or school management.  This subdivision shall not 
172.35  prohibit the commissioner from making technical changes or 
172.36  corrections to adopted rules. 
173.1      Sec. 38.  Minnesota Statutes 1996, section 121.16, is 
173.2   amended by adding a subdivision to read: 
173.3      Subd. 7.  [LICENSURE RULES.] The commissioner may make 
173.4   rules relating to licensure of school personnel not licensed by 
173.5   the board of teaching. 
173.6      Sec. 39.  Minnesota Statutes 1996, section 121.16, is 
173.7   amended by adding a subdivision to read: 
173.8      Subd. 8.  [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 
173.9   commissioner may amend rules to reflect changes in the national 
173.10  minimum standard score for passing the general education 
173.11  development (GED) tests. 
173.12     Sec. 40.  Minnesota Statutes 1996, section 121.16, is 
173.13  amended by adding a subdivision to read: 
173.14     Subd. 9.  [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 
173.15  request of any superintendent of any public or private school 
173.16  teaching high school courses in the state, the commissioner 
173.17  shall designate or prepare uniform forms for state examinations 
173.18  in each high school subject during the month of May of each 
173.19  year; the request shall be in writing and delivered to the 
173.20  commissioner before January 1 of that year. 
173.21     Sec. 41.  Minnesota Statutes 1996, section 121.16, is 
173.22  amended by adding a subdivision to read: 
173.23     Subd. 10.  [EVENING SCHOOLS.] The commissioner shall 
173.24  exercise general supervision over the public evening schools, 
173.25  adult education programs, and summer programs. 
173.26     Sec. 42.  Minnesota Statutes 1996, section 121.16, is 
173.27  amended by adding a subdivision to read: 
173.28     Subd. 11.  [TEACHER RULE VARIANCES.] Notwithstanding any 
173.29  law to the contrary, and only upon receiving the agreement of 
173.30  the state board of teaching, the commissioner of children, 
173.31  families, and learning may grant a variance to rules governing 
173.32  licensure of teachers for those teachers licensed by the board 
173.33  of teaching.  The commissioner may grant a variance, without the 
173.34  agreement of the board of teaching, to rules adopted by the 
173.35  commissioner governing licensure of teachers for those teachers 
173.36  the commissioner licenses. 
174.1      Sec. 43.  Minnesota Statutes 1996, section 121.16, is 
174.2   amended by adding a subdivision to read: 
174.3      Subd. 12.  [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 
174.4   commissioner of finance shall establish for the commissioner of 
174.5   children, families, and learning a revolving fund for deposit of 
174.6   storage and handling charges paid by recipients of donated foods 
174.7   shipped by the school lunch section of the department of 
174.8   children, families, and learning.  These funds are to be used 
174.9   only to pay storage and related charges as they are incurred for 
174.10  United States Department of Agriculture foods. 
174.11     The commissioner of finance shall also establish a 
174.12  revolving fund for the department of children, families, and 
174.13  learning to deposit charges paid by recipients of processed 
174.14  commodities and for any authorized appropriation transfers for 
174.15  the purpose of this subdivision.  These funds are to be used 
174.16  only to pay for commodity processing and related charges as they 
174.17  are incurred using United States Department of Agriculture 
174.18  donated commodities. 
174.19     Sec. 44.  Minnesota Statutes 1996, section 121.1601, 
174.20  subdivision 2, is amended to read: 
174.21     Subd. 2.  [COORDINATION.] The commissioner shall coordinate 
174.22  the office activities under subdivision 1 with new or existing 
174.23  department and state board of education efforts to accomplish 
174.24  school desegregation/integration.  The commissioner may request 
174.25  information or assistance from, or contract with, any state or 
174.26  local agency or officer, local unit of government, or recognized 
174.27  expert to assist the commissioner in performing the activities 
174.28  described in subdivision 1.  
174.29     Sec. 45.  Minnesota Statutes 1996, section 121.612, 
174.30  subdivision 2, is amended to read: 
174.31     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
174.32  Minnesota academic excellence foundation.  The purpose of the 
174.33  foundation shall be to promote academic excellence in Minnesota 
174.34  public and nonpublic schools and communities through 
174.35  public-private partnerships.  The foundation shall be a 
174.36  nonprofit organization.  The board of directors of the 
175.1   foundation and foundation activities are under the direction of 
175.2   the state board of education commissioner of children, families, 
175.3   and learning. 
175.4      Sec. 46.  Minnesota Statutes 1996, section 121.612, 
175.5   subdivision 3, is amended to read: 
175.6      Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
175.7   the foundation shall consist of the commissioner of children, 
175.8   families, and learning, a member of the state board of education 
175.9   selected by the state board who shall serve as chair and 20 
175.10  members to be appointed by the governor.  Of the 20 members 
175.11  appointed by the governor, eight shall represent a variety of 
175.12  education groups and 12 shall represent a variety of business 
175.13  groups.  The commissioner of children, families, and learning 
175.14  shall serve as secretary for the board of directors and provide 
175.15  administrative support to the foundation.  An executive 
175.16  committee of the foundation board composed of the board officers 
175.17  and chairs of board committees, may only advise and make 
175.18  recommendations to the foundation board. 
175.19     Sec. 47.  Minnesota Statutes 1996, section 121.612, 
175.20  subdivision 6, is amended to read: 
175.21     Subd. 6.  [CONTRACTS.] The foundation board shall review 
175.22  and approve each contract of the board.  Each contract of the 
175.23  foundation board shall be subject to the same review and 
175.24  approval procedures as a contract of the state board of 
175.25  education commissioner of children, families, and learning. 
175.26     Sec. 48.  Minnesota Statutes 1996, section 121.612, 
175.27  subdivision 7, is amended to read: 
175.28     Subd. 7.  [FOUNDATION STAFF.] (a) The state board 
175.29  commissioner shall appoint the executive director and other 
175.30  staff who shall perform duties and have responsibilities solely 
175.31  related to the foundation.  
175.32     (b) As part of the annual plan of work, the foundation, 
175.33  under the direction of the state board commissioner, may appoint 
175.34  up to three employees.  The employees appointed under this 
175.35  paragraph are not state employees under chapter 43A, but are 
175.36  covered under section 3.736.  At the foundation board's 
176.1   discretion, the employees may participate in the state health 
176.2   and state insurance plans for employees in unclassified 
176.3   service.  The employees shall be supervised by the executive 
176.4   director. 
176.5      Sec. 49.  Minnesota Statutes 1996, section 121.612, 
176.6   subdivision 9, is amended to read: 
176.7      Subd. 9.  [REPORT.] The board of directors of the 
176.8   foundation shall submit an annual report to the state board of 
176.9   education commissioner of children, families, and learning on 
176.10  the progress of its activities.  The annual report shall contain 
176.11  a financial report for the preceding year, including all 
176.12  receipts and expenditures of the foundation. 
176.13     Sec. 50.  Minnesota Statutes 1997 Supplement, section 
176.14  121.615, subdivision 2, is amended to read: 
176.15     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
176.16  Minnesota school-to-work student organization foundation.  The 
176.17  purpose of the foundation shall be to promote vocational student 
176.18  organizations and applied leadership opportunities in Minnesota 
176.19  public and nonpublic schools through public-private 
176.20  partnerships.  The foundation shall be a nonprofit 
176.21  organization.  The board of directors of the foundation and 
176.22  activities of the foundation are under the direction of the 
176.23  state board of education commissioner of children, families, and 
176.24  learning.  
176.25     Sec. 51.  Minnesota Statutes 1997 Supplement, section 
176.26  121.615, subdivision 6, is amended to read: 
176.27     Subd. 6.  [CONTRACTS.] The foundation board shall review 
176.28  and approve each contract of the board.  Each contract of the 
176.29  foundation board shall be subject to the same review and 
176.30  approval procedures as a contract of the state board of 
176.31  education commissioner of children, families, and learning. 
176.32     Sec. 52.  Minnesota Statutes 1997 Supplement, section 
176.33  121.615, subdivision 7, is amended to read: 
176.34     Subd. 7.  [FOUNDATION STAFF.] The state board of 
176.35  education commissioner of children, families, and learning shall 
176.36  appoint the executive director of the foundation from three 
177.1   candidates nominated and submitted by the foundation board of 
177.2   directors and, as necessary, other staff who shall perform 
177.3   duties and have responsibilities solely related to the 
177.4   foundation.  The employees appointed are not state employees 
177.5   under chapter 43A, but are covered under section 3.736.  The 
177.6   employees may participate in the state health and state 
177.7   insurance plans for employees in unclassified service.  The 
177.8   employees shall be supervised by the executive director. 
177.9      The commissioner shall appoint from the office of lifework 
177.10  development a liaison to the foundation board. 
177.11     Sec. 53.  Minnesota Statutes 1997 Supplement, section 
177.12  121.615, subdivision 10, is amended to read: 
177.13     Subd. 10.  [REPORT.] The board of directors of the 
177.14  foundation shall submit an annual report on the progress of its 
177.15  activities to the state board of education commissioner of 
177.16  children, families, and learning and to the board of trustees of 
177.17  the Minnesota state colleges and universities.  The annual 
177.18  report shall contain a financial report for the preceding year.  
177.19  The foundation shall submit a biennium report to the legislature 
177.20  before February 15, in the odd-numbered year. 
177.21     Sec. 54.  Minnesota Statutes 1996, section 121.932, 
177.22  subdivision 5, is amended to read: 
177.23     Subd. 5.  [ESSENTIAL DATA.] The department shall maintain a 
177.24  list of essential data elements which must be recorded and 
177.25  stored about each pupil, licensed and nonlicensed staff member, 
177.26  and educational program.  Each school district may ask for a 
177.27  student's social security number as part of the basic enrollment 
177.28  for the sole purpose of monitoring eligibility of students for 
177.29  free or reduced lunch.  The request must comply with the notice 
177.30  requirements of section 13.04, subdivision 2, and must also 
177.31  notify the parent or legal guardian and student that they are 
177.32  not required to provide the social security number, but that if 
177.33  it is provided it will be used to determine whether the student 
177.34  is eligible for a free or reduced lunch.  If the social security 
177.35  number is provided, it must be included as part of the essential 
177.36  data elements.  Each school district must provide the essential 
178.1   data to the department in the form and format prescribed by the 
178.2   department. 
178.3      Sec. 55.  Minnesota Statutes 1996, section 122.23, 
178.4   subdivision 2b, is amended to read: 
178.5      Subd. 2b.  [ORDERLY REDUCTION PLAN.] As part of the 
178.6   resolution required by subdivision 2, the school board must 
178.7   prepare a plan for the orderly reduction of the membership of 
178.8   the board to six or seven members and a plan for the 
178.9   establishment or dissolution of election districts.  The plan 
178.10  may shorten any or all terms of incumbent board members to 
178.11  achieve the orderly reduction.  The plan must be submitted to 
178.12  the secretary of state for review and comment. 
178.13     Sec. 56.  Minnesota Statutes 1996, section 122.23, 
178.14  subdivision 6, is amended to read: 
178.15     Subd. 6.  The commissioner shall, upon receipt of a plat, 
178.16  forthwith examine it and approve, modify or reject it.  The 
178.17  commissioner shall also approve or reject any proposal contained 
178.18  in the resolution or petition regarding the disposition of the 
178.19  bonded debt of the component districts.  If the plat shows the 
178.20  boundaries of proposed separate election districts and if the 
178.21  commissioner modifies the plat, the commissioner shall also 
178.22  modify the boundaries of the proposed separate election 
178.23  districts.  The commissioner shall conduct a hearing public 
178.24  meeting at the nearest county seat in the area upon reasonable 
178.25  notice to the affected districts and county boards if requested 
178.26  within 20 days after submission of the plat.  Such a hearing The 
178.27  public meeting may be requested by the board of any affected 
178.28  district, a county board of commissioners, or the petition of 20 
178.29  resident voters living within the area proposed for 
178.30  consolidation.  The commissioner shall endorse on the plat 
178.31  action regarding any proposal for the disposition of the bonded 
178.32  debt of component districts and the reasons for these actions 
178.33  and within after a minimum of 20 days, but no more than 60 days 
178.34  of the date of the receipt of the plat, the commissioner shall 
178.35  return it to the county auditor who submitted it.  The 
178.36  commissioner shall furnish a copy of that plat, and the 
179.1   supporting statement and its endorsement to the auditor of each 
179.2   county containing any land area of the proposed new district.  
179.3   If land area of a particular county was included in the plat, as 
179.4   submitted by the county auditor, and all of such land area is 
179.5   excluded in the plat as modified and approved, the commissioner 
179.6   shall also furnish a copy of the modified plat, supporting 
179.7   statement, and any endorsement to the auditor of such county. 
179.8      Sec. 57.  Minnesota Statutes 1996, section 123.34, 
179.9   subdivision 9, is amended to read: 
179.10     Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
179.11  classified secondary school shall employ a superintendent who 
179.12  shall be an ex officio nonvoting member of the school board.  
179.13  The authority for selection and employment of a superintendent 
179.14  shall be vested in the school board in all cases.  An individual 
179.15  employed by a school board as a superintendent shall have an 
179.16  initial employment contract for a period of time no longer than 
179.17  three years from the date of employment.  Any subsequent 
179.18  employment contract must not exceed a period of three years.  A 
179.19  school board, at its discretion, may or may not renew an 
179.20  employment contract.  A school board shall not, by action or 
179.21  inaction, extend the duration of an existing employment 
179.22  contract.  Beginning 365 days prior to the expiration date of an 
179.23  existing employment contract, a school board may negotiate and 
179.24  enter into a subsequent employment contract to take effect upon 
179.25  the expiration of the existing contract.  A subsequent contract 
179.26  shall be contingent upon the employee completing the terms of an 
179.27  existing contract.  If a contract between a school board and a 
179.28  superintendent is terminated prior to the date specified in the 
179.29  contract, the school board may not enter into another 
179.30  superintendent contract with that same individual that has a 
179.31  term that extends beyond the date specified in the terminated 
179.32  contract.  A school board may terminate a superintendent during 
179.33  the term of an employment contract for any of the grounds 
179.34  specified in section 125.12, subdivision 6 or 8.  A 
179.35  superintendent shall not rely upon an employment contract with a 
179.36  school board to assert any other continuing contract rights in 
180.1   the position of superintendent under section 125.12.  
180.2   Notwithstanding the provisions of sections 122.532, 122.541, 
180.3   125.12, subdivision 6a or 6b, or any other law to the contrary, 
180.4   no individual shall have a right to employment as a 
180.5   superintendent based on order of employment in any district.  If 
180.6   two or more school districts enter into an agreement for the 
180.7   purchase or sharing of the services of a superintendent, the 
180.8   contracting districts have the absolute right to select one of 
180.9   the individuals employed to serve as superintendent in one of 
180.10  the contracting districts and no individual has a right to 
180.11  employment as the superintendent to provide all or part of the 
180.12  services based on order of employment in a contracting district. 
180.13  The superintendent of a district shall perform the following:  
180.14     (1) visit and supervise the schools in the district, report 
180.15  and make recommendations about their condition when advisable or 
180.16  on request by the board; 
180.17     (2) recommend to the board employment and dismissal of 
180.18  teachers; 
180.19     (3) superintend school grading practices and examinations 
180.20  for promotions; 
180.21     (4) make reports required by the commissioner of children, 
180.22  families, and learning; and 
180.23     (5) by January 10, submit an annual report to the 
180.24  commissioner in a manner prescribed by the commissioner, in 
180.25  consultation with school districts, identifying the amount of 
180.26  funding that the district requires to achieve a 90 percent 
180.27  student passage rate on the basic standards test taken in the 
180.28  eighth grade, and how much the district is cross-subsidizing 
180.29  programs with special education, compensatory, and general 
180.30  education revenue; and 
180.31     (6) perform other duties prescribed by the board. 
180.32     Sec. 58.  Minnesota Statutes 1996, section 123.35, 
180.33  subdivision 19a, is amended to read: 
180.34     Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
180.35  SUPPORT.] (a) No school district shall be required by any type 
180.36  of formal or informal agreement except an agreement to provide 
181.1   building space according to paragraph (f), including a joint 
181.2   powers agreement, or membership in any cooperative unit defined 
181.3   in subdivision 19b, paragraph (d), to participate in or provide 
181.4   financial support for the purposes of the agreement for a time 
181.5   period in excess of one four fiscal year years, or the time 
181.6   period set forth in this subdivision.  Any agreement, part of an 
181.7   agreement, or other type of requirement to the contrary is void. 
181.8      (b) This subdivision shall not affect the continued 
181.9   liability of a school district for its share of bonded 
181.10  indebtedness or other debt incurred as a result of any agreement 
181.11  before July 1, 1993.  The school district is liable only until 
181.12  the obligation or debt is discharged and only according to the 
181.13  payment schedule in effect on July 1, 1993, except that the 
181.14  payment schedule may be altered for the purpose of restructuring 
181.15  debt or refunding bonds outstanding on July 1, 1993, if the 
181.16  annual payments of the school district are not increased and if 
181.17  the total obligation of the school district for its share of 
181.18  outstanding bonds or other debt is not increased. 
181.19     (c) To cease participating in or providing financial 
181.20  support for any of the services or activities relating to the 
181.21  agreement or to terminate participation in the agreement, the 
181.22  school board shall adopt a resolution and notify other parties 
181.23  to the agreement of its decision on or before February 1 of any 
181.24  year.  The cessation or withdrawal shall be effective June 30 of 
181.25  the same year except that for a member of an education district 
181.26  organized under sections 122.91 to 122.95 or an intermediate 
181.27  district organized under chapter 136D, cessation or withdrawal 
181.28  shall be effective June 30 of the following fiscal year.  At the 
181.29  option of the school board, cessation or withdrawal may be 
181.30  effective June 30 of the following fiscal year for a district 
181.31  participating in any type of agreement.  
181.32     (d) Before issuing bonds or incurring other debt, the 
181.33  governing body responsible for implementing the agreement shall 
181.34  adopt a resolution proposing to issue bonds or incur other debt 
181.35  and the proposed financial effect of the bonds or other debt 
181.36  upon each participating district.  The resolution shall be 
182.1   adopted within a time sufficient to allow the school board to 
182.2   adopt a resolution within the time permitted by this paragraph 
182.3   and to comply with the statutory deadlines set forth in sections 
182.4   122.895, 125.12, and 125.17.  The governing body responsible for 
182.5   implementing the agreement shall notify each participating 
182.6   school board of the contents of the resolution.  Within 120 days 
182.7   of receiving the resolution of the governing body, the school 
182.8   board of the participating district shall adopt a resolution 
182.9   stating: 
182.10     (1) its concurrence with issuing bonds or incurring other 
182.11  debt; 
182.12     (2) its intention to cease participating in or providing 
182.13  financial support for the service or activity related to the 
182.14  bonds or other debt; or 
182.15     (3) its intention to terminate participation in the 
182.16  agreement. 
182.17     A school board adopting a resolution according to clause 
182.18  (1) is liable for its share of bonded indebtedness or other debt 
182.19  as proposed by the governing body implementing the agreement.  A 
182.20  school board adopting a resolution according to clause (2) is 
182.21  not liable for the bonded indebtedness or other debt, as 
182.22  proposed by the governing body, related to the services or 
182.23  activities in which the district ceases participating or 
182.24  providing financial support.  A school board adopting a 
182.25  resolution according to clause (3) is not liable for the bonded 
182.26  indebtedness or other debt proposed by the governing body 
182.27  implementing the agreement. 
182.28     (e) After July 1, 1993, a district is liable according to 
182.29  paragraph (d) for its share of bonded indebtedness or other debt 
182.30  incurred by the governing body implementing the agreement to the 
182.31  extent that the bonds or other debt are directly related to the 
182.32  services or activities in which the district participates or for 
182.33  which the district provides financial support.  The district has 
182.34  continued liability only until the obligation or debt is 
182.35  discharged and only according to the payment schedule in effect 
182.36  at the time the governing body implementing the agreement 
183.1   provides notice to the school board, except that the payment 
183.2   schedule may be altered for the purpose of refunding the 
183.3   outstanding bonds or restructuring other debt if the annual 
183.4   payments of the district are not increased and if the total 
183.5   obligation of the district for the outstanding bonds or other 
183.6   debt is not increased. 
183.7      (f) A school district that is a member of a cooperative 
183.8   unit as defined in subdivision 19b, paragraph (d), may obligate 
183.9   itself to participate in and provide financial support for an 
183.10  agreement with a cooperative unit to provide school building 
183.11  space for a term not to exceed two years with an option on the 
183.12  part of the district to renew for an additional two years. 
183.13     Sec. 59.  Minnesota Statutes 1996, section 123.3514, is 
183.14  amended by adding a subdivision to read: 
183.15     Subd. 4f.  [PARTICIPATION IN HIGH SCHOOL 
183.16  ACTIVITIES.] Enrolling in a course under this section shall not, 
183.17  by itself, prohibit a pupil from participating in activities 
183.18  sponsored by the pupil's high school. 
183.19     Sec. 60.  Minnesota Statutes 1996, section 123.39, 
183.20  subdivision 1, is amended to read: 
183.21     Subdivision 1.  The board may provide for the 
183.22  transportation of pupils to and from school and for any other 
183.23  purpose.  The board may also provide for the transportation of 
183.24  pupils to schools in other districts for grades and departments 
183.25  not maintained in the district, including high school, at the 
183.26  expense of the district, when funds are available therefor and 
183.27  if agreeable to the district to which it is proposed to 
183.28  transport the pupils, for the whole or a part of the school 
183.29  year, as it may deem advisable, and subject to its rules.  In 
183.30  any school district, the board shall arrange for the attendance 
183.31  of all pupils living two miles or more from the school, except 
183.32  pupils whose transportation privileges have been revoked under 
183.33  section 123.805, subdivision 1, clause (6), or 123.7991, 
183.34  paragraph (b), or whose privileges have been voluntarily 
183.35  surrendered under subdivision 1a, through suitable provision for 
183.36  transportation or through the boarding and rooming of the pupils 
184.1   who may be more economically and conveniently provided for by 
184.2   that means.  Arrangements for attendance may include a 
184.3   requirement that parents or guardians request transportation 
184.4   before it is provided.  The board shall provide transportation 
184.5   to and from the home of a child with a disability not yet 
184.6   enrolled in kindergarten when special instruction and services 
184.7   under sections 120.17 and 120.1701 are provided in a location 
184.8   other than in the child's home.  When transportation is 
184.9   provided, scheduling of routes, establishment of the location of 
184.10  bus stops, manner and method of transportation, control and 
184.11  discipline of school children and any other matter relating 
184.12  thereto shall be within the sole discretion, control, and 
184.13  management of the school board.  The district may provide for 
184.14  the transportation of pupils or expend a reasonable amount for 
184.15  room and board of pupils whose attendance at school can more 
184.16  economically and conveniently be provided for by that means or 
184.17  who attend school in a building rented or leased by a district 
184.18  within the confines of an adjacent district. 
184.19     Sec. 61.  Minnesota Statutes 1996, section 123.39, is 
184.20  amended by adding a subdivision to read: 
184.21     Subd. 1a.  [VOLUNTARY SURRENDER OF TRANSPORTATION 
184.22  PRIVILEGES.] The parent or guardian of a secondary student may 
184.23  voluntarily surrender the secondary student's to and from school 
184.24  transportation privileges granted under subdivision 1, in 
184.25  exchange for the privilege of obtaining school parking at a 
184.26  reduced price. 
184.27     Sec. 62.  Minnesota Statutes 1996, section 123.805, 
184.28  subdivision 1, is amended to read: 
184.29     Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
184.30  district shall develop and implement a comprehensive, written 
184.31  policy governing pupil transportation safety, including 
184.32  transportation of nonpublic school students, when applicable.  
184.33  The policy shall, at minimum, contain: 
184.34     (1) provisions for appropriate student bus safety training 
184.35  under section 123.7991; 
184.36     (2) rules governing student conduct on school buses and in 
185.1   school bus loading and unloading areas; 
185.2      (3) a statement of parent or guardian responsibilities 
185.3   relating to school bus safety; 
185.4      (4) provisions for notifying students and parents or 
185.5   guardians of their responsibilities and the rules; 
185.6      (5) an intradistrict system for reporting school bus 
185.7   accidents or misconduct, and a system for dealing with local law 
185.8   enforcement officials in cases of criminal conduct on a school 
185.9   bus, and a system for reporting accidents, crimes, incidents of 
185.10  misconduct, and bus driver dismissals to the department of 
185.11  public safety under section 169.452; 
185.12     (6) a discipline policy to address violations of school bus 
185.13  safety rules, including procedures for revoking a student's bus 
185.14  riding privileges in cases of serious or repeated misconduct; 
185.15     (7) a system for integrating school bus misconduct records 
185.16  with other discipline records; 
185.17     (8) a statement of bus driver duties; 
185.18     (9) planned expenditures for safety activities under 
185.19  section 123.799 and, where applicable, provisions governing bus 
185.20  monitor qualifications, training, and duties; 
185.21     (10) rules governing the use and maintenance of type III 
185.22  vehicles, drivers of type III vehicles, qualifications to drive 
185.23  a type III vehicle, qualifications for a type III vehicle and 
185.24  the circumstances under which a student may be transported in a 
185.25  type III vehicle; 
185.26     (11) operating rules and procedures; 
185.27     (12) provisions for annual bus driver in-service training 
185.28  and evaluation; 
185.29     (13) emergency procedures; 
185.30     (14) a system for maintaining and inspecting equipment; 
185.31     (15) requirements of the school district, if any, that 
185.32  exceed state law minimum requirements for school bus operations; 
185.33  and 
185.34     (16) requirements for basic first aid training, which shall 
185.35  include the Heimlich maneuver and procedures for dealing with 
185.36  obstructed airways, shock, bleeding, and seizures. 
186.1      School districts are encouraged to use the model policy 
186.2   developed by the Minnesota school boards association, the 
186.3   department of public safety, and the department of children, 
186.4   families, and learning, as well as the current edition of the 
186.5   "National Standards for School Buses and Operations" published 
186.6   by the National Safety Council, in developing safety policies.  
186.7   Each district shall submit a copy of its policy under this 
186.8   subdivision to the school bus safety advisory committee no later 
186.9   than August 1, 1994.  Each district shall review its policy 
186.10  annually and make appropriate amendments, which must be 
186.11  submitted to the school bus safety advisory committee within one 
186.12  month of approval by the school board. 
186.13     Sec. 63.  Minnesota Statutes 1996, section 124.078, is 
186.14  amended to read: 
186.15     124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 
186.16     A state permanent school fund advisory committee is 
186.17  established to advise the department of natural resources on the 
186.18  management of permanent school fund land, which is held in trust 
186.19  for the school districts of the state.  The advisory committee 
186.20  shall consist of the following persons or their designees:  the 
186.21  chairs of the education committees of the legislature, the 
186.22  chairs of the senate committee on finance and house committee on 
186.23  ways and means, the chair of the senate environment and natural 
186.24  resources committee, the chair of the senate environment and 
186.25  agriculture budget division committee, the commissioner of 
186.26  children, families, and learning, one superintendent from a 
186.27  nonmetropolitan district, and one superintendent from a 
186.28  metropolitan area district.  The commissioner of natural 
186.29  resources shall serve as an ex officio member.  The school 
186.30  district superintendents shall be appointed by the commissioner 
186.31  of children, families, and learning.  
186.32     The advisory committee shall review the policies of the 
186.33  department of natural resources and current statutes on 
186.34  management of school trust fund lands at least semiannually and 
186.35  shall recommend necessary changes in statutes, policy, and 
186.36  implementation in order to ensure provident utilization of the 
187.1   permanent school fund lands. 
187.2      Sec. 64.  Minnesota Statutes 1996, section 124.225, 
187.3   subdivision 7f, is amended to read: 
187.4      Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
187.5   district shall reserve an amount equal to the greater of $500 or 
187.6   $1.50 times the number of fund balance pupil units, for that 
187.7   school year to provide student transportation safety programs 
187.8   under section 123.799.  This revenue may only be used if the 
187.9   district complies with the reporting requirements of section 
187.10  123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5. 
187.11     Sec. 65.  Minnesota Statutes 1996, section 124.225, 
187.12  subdivision 8m, is amended to read: 
187.13     Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
187.14  transportation safety aid equals the district's reserved revenue 
187.15  for transportation safety under subdivision 7f for that school 
187.16  year.  Failure of a school district to comply with the reporting 
187.17  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
187.18  171.321, subdivision 5, may result in a withholding of that 
187.19  district's transportation safety aid for that school year. 
187.20     Sec. 66.  Minnesota Statutes 1996, section 124.646, 
187.21  subdivision 4, is amended to read: 
187.22     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
187.23  described in this subdivision must be recorded as provided in 
187.24  this subdivision. 
187.25     (b) In each school district, the expenses for a school food 
187.26  service program for pupils must be attributed to a school food 
187.27  service fund.  Under a food service program, the school food 
187.28  service may prepare or serve milk, meals, or snacks in 
187.29  connection with school or community service activities. 
187.30     (c) Revenues and expenditures for food service activities 
187.31  must be recorded in the food service fund.  The costs of 
187.32  processing applications, accounting for meals, preparing and 
187.33  serving food, providing kitchen custodial services, and other 
187.34  expenses involving the preparing of meals or the kitchen section 
187.35  of the lunchroom may be charged to the food service fund or to 
187.36  the general fund of the district.  The costs of lunchroom 
188.1   supervision, lunchroom custodial services, lunchroom utilities, 
188.2   and other administrative costs of the food service program must 
188.3   be charged to the general fund. 
188.4      That portion of superintendent and fiscal manager costs 
188.5   that can be documented as attributable to the food service 
188.6   program may be charged to the food service fund provided that 
188.7   the school district does not employ or contract with a food 
188.8   service director or other individual who manages the food 
188.9   service program, or food service management company.  If the 
188.10  cost of the superintendent or fiscal manager is charged to the 
188.11  food service fund, the charge must be at a wage rate not to 
188.12  exceed the statewide average for food service directors as 
188.13  determined by the department of children, families, and learning.
188.14     (d) Capital expenditures for the purchase of food service 
188.15  equipment must be made from the capital general fund and not the 
188.16  food service fund, unless two conditions apply: 
188.17     (1) the unreserved balance in the food service fund at the 
188.18  end of the last fiscal year is greater than the cost of the 
188.19  equipment to be purchased; and 
188.20     (2) the department of children, families, and learning has 
188.21  approved the purchase of the equipment. 
188.22     (e) If the two conditions set out in paragraph (d) apply, 
188.23  the equipment may be purchased from the food service fund. 
188.24     (f) If a deficit in the food service fund exists at the end 
188.25  of a fiscal year, and the deficit is not eliminated by revenues 
188.26  from food service operations in the next fiscal year, then the 
188.27  deficit must be eliminated by a permanent fund transfer from the 
188.28  general fund at the end of that second fiscal year.  However, if 
188.29  a district contracts with a food service management company 
188.30  during the period in which the deficit has accrued, the deficit 
188.31  must be eliminated by a payment from the food service management 
188.32  company. 
188.33     (g) Notwithstanding paragraph (f), a district may incur a 
188.34  deficit in the food service fund for up to three years without 
188.35  making the permanent transfer if the district submits to the 
188.36  commissioner by January 1 of the second fiscal year a plan for 
189.1   eliminating that deficit at the end of the third fiscal year. 
189.2      (h) If a surplus in the food service fund exists at the end 
189.3   of a fiscal year for three successive years, a district may 
189.4   recode for that fiscal year the costs of lunchroom supervision, 
189.5   lunchroom custodial services, lunchroom utilities, and other 
189.6   administrative costs of the food service program charged to the 
189.7   general fund according to paragraph (c) and charge those costs 
189.8   to the food service fund in a total amount not to exceed the 
189.9   amount of surplus in the food service fund. 
189.10     Sec. 67.  Minnesota Statutes 1997 Supplement, section 
189.11  124.6475, is amended to read: 
189.12     124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 
189.13     States funds are available to compensate 
189.14  department-approved summer food program sponsors for reduced 
189.15  federal operating reimbursement rates under Public Law Number 
189.16  104-193, the federal summer food service program.  A sponsor is 
189.17  eligible for summer food service replacement aid equal to the 
189.18  sum of the following amounts: 
189.19     (1) for breakfast service, subtract the current year 
189.20  maximum reimbursement rate from the 1996 maximum reimbursement 
189.21  rate and multiply the result by the number of breakfasts the 
189.22  district served up to four cents per breakfast served by the 
189.23  sponsor during the current school program year; 
189.24     (2) for lunch or supper service, subtract the current year 
189.25  maximum reimbursement rate from the 1996 maximum reimbursement 
189.26  rate and multiply the result by the number of lunches and 
189.27  suppers the district served up to 14 cents per lunch or supper 
189.28  served by the sponsor during the current school program year; 
189.29  and 
189.30     (3) for supplement service, subtract the current year 
189.31  maximum reimbursement rate from the 1996 maximum reimbursement 
189.32  rate and multiply the result by the number of up to ten cents 
189.33  per supplement meals served by the district served sponsor 
189.34  during the current school program year. 
189.35     Sec. 68.  Minnesota Statutes 1997 Supplement, section 
189.36  124.648, subdivision 3, is amended to read: 
190.1      Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
190.2   (a) The commissioner shall: 
190.3      (1) encourage all districts to participate in the school 
190.4   milk program for kindergartners; 
190.5      (2) prepare program guidelines, not subject to chapter 14 
190.6   until July 1, 1998, which will effectively and efficiently 
190.7   distribute appropriated and donated money to participating 
190.8   districts; and 
190.9      (3) seek donations and matching funds from appropriate 
190.10  private and public sources. 
190.11     (b) Program guidelines may provide for disbursement to 
190.12  districts through a mechanism of prepayments or by reimbursement 
190.13  for approved program expenses. 
190.14     (c) It is suggested that the benefits of the school milk 
190.15  program may reach the largest number of kindergarten students if 
190.16  districts are allowed to submit annual bids stating the 
190.17  per-serving level of support that would be acceptable to the 
190.18  district for their participation in the program.  The 
190.19  commissioner would review all bids received and approve bids in 
190.20  sufficient number and value to maximize the provision of milk to 
190.21  kindergarten students consistent with available funds. 
190.22     Sec. 69.  Minnesota Statutes 1997 Supplement, section 
190.23  125.05, subdivision 1c, is amended to read: 
190.24     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
190.25  ETHICS.] The state board of education commissioner of children, 
190.26  families, and learning shall issue licenses under its 
190.27  jurisdiction to persons the state board commissioner finds to be 
190.28  qualified and competent for their respective positions under the 
190.29  adopted rules it adopts.  The state board of education 
190.30  commissioner may develop, by rule, a code of ethics for 
190.31  supervisory personnel covering standards of professional 
190.32  practices, including areas of ethical conduct and professional 
190.33  performance and methods of enforcement. 
190.34     Sec. 70.  Minnesota Statutes 1997 Supplement, section 
190.35  125.05, subdivision 2, is amended to read: 
190.36     Subd. 2.  [EXPIRATION AND RENEWAL.] (a) Each license the 
191.1   department of children, families, and learning issues through 
191.2   its licensing section must bear the date of issue.  Licenses 
191.3   must expire and be renewed according to the respective rules the 
191.4   board of teaching or the state board of education commissioner 
191.5   of children, families, and learning adopts.  Requirements for 
191.6   renewing a license must include showing satisfactory evidence of 
191.7   successful teaching experience for at least one school year 
191.8   during the period covered by the license in grades or subjects 
191.9   for which the license is valid or completing such additional 
191.10  preparation as the board of teaching prescribes.  The state 
191.11  board of education commissioner shall establish requirements for 
191.12  renewing the licenses of supervisory personnel. 
191.13     (b) The board of teaching shall offer alternative 
191.14  continuing relicensure options for teachers who are accepted 
191.15  into and complete the national board for professional teaching 
191.16  standards certification process, and offer additional continuing 
191.17  relicensure options for teachers who earn national board for 
191.18  professional teaching standards certification.  Continuing 
191.19  relicensure requirements for teachers who do not maintain 
191.20  national board for professional teaching standards certification 
191.21  are those the board prescribes.  
191.22     Sec. 71.  Minnesota Statutes 1996, section 125.05, 
191.23  subdivision 4, is amended to read: 
191.24     Subd. 4.  [HUMAN RELATIONS.] The board of teaching and 
191.25  the state board of education commissioner of children, families, 
191.26  and learning shall accept training programs completed through 
191.27  Peace Corps, VISTA, or Teacher Corps in lieu of completion of 
191.28  the human relations component of the training program for 
191.29  purposes of issuing or renewing a license in education.  
191.30     Sec. 72.  Minnesota Statutes 1996, section 125.05, 
191.31  subdivision 8, is amended to read: 
191.32     Subd. 8.  [BACKGROUND CHECKS.] (a) The board of teaching 
191.33  and the state board of education commissioner of children, 
191.34  families, and learning shall request a criminal history 
191.35  background check from the superintendent of the bureau of 
191.36  criminal apprehension on all applicants for initial licenses 
192.1   under their jurisdiction.  An application for a license under 
192.2   this section must be accompanied by: 
192.3      (1) an executed criminal history consent form, including 
192.4   fingerprints; and 
192.5      (2) a money order or cashier's check payable to the bureau 
192.6   of criminal apprehension for the fee for conducting the criminal 
192.7   history background check. 
192.8      (b) The superintendent of the bureau of criminal 
192.9   apprehension shall perform the background check required under 
192.10  paragraph (a) by retrieving criminal history data maintained in 
192.11  the criminal justice information system computers and shall also 
192.12  conduct a search of the national criminal records repository, 
192.13  including the criminal justice data communications network.  The 
192.14  superintendent is authorized to exchange fingerprints with the 
192.15  Federal Bureau of Investigation for purposes of the criminal 
192.16  history check.  The superintendent shall recover the cost to the 
192.17  bureau of a background check through the fee charged to the 
192.18  applicant under paragraph (a). 
192.19     (c) The board of teaching or the state board of education 
192.20  commissioner of children, families, and learning may issue a 
192.21  license pending completion of a background check under this 
192.22  subdivision, but shall notify the individual that the 
192.23  individual's license may be revoked based on the result of the 
192.24  background check. 
192.25     Sec. 73.  Minnesota Statutes 1996, section 125.1885, 
192.26  subdivision 1, is amended to read: 
192.27     Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
192.28  that is an alternative to a graduate program in education 
192.29  administration for public school administrators to acquire an 
192.30  entrance license is established.  The program may be offered in 
192.31  any administrative field. 
192.32     (b) To participate in the alternative preparation program, 
192.33  the candidate must: 
192.34     (1) have a master's degree in an administrative area; 
192.35     (2) have been offered an administrative position in a 
192.36  school district, group of districts, or an education district 
193.1   approved by the state board of education commissioner of 
193.2   children, families, and learning to offer an alternative 
193.3   preparation licensure program; 
193.4      (3) have five years of experience in a field related to 
193.5   administration; and 
193.6      (4) document successful experiences working with children 
193.7   and adults. 
193.8      (c) An alternative preparation license is of one year 
193.9   duration and is issued by the state board of education 
193.10  commissioner of children, families, and learning to participants 
193.11  on admission to the alternative preparation program. 
193.12     Sec. 74.  Minnesota Statutes 1996, section 125.1885, 
193.13  subdivision 4, is amended to read: 
193.14     Subd. 4.  [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 
193.15  resident mentorship team must prepare for the state board of 
193.16  education commissioner of children, families, and learning an 
193.17  evaluation report on the performance of the alternative 
193.18  preparation licensee during the school year and a positive or 
193.19  negative recommendation on whether the alternative preparation 
193.20  licensee shall receive a standard entrance license. 
193.21     Sec. 75.  Minnesota Statutes 1996, section 125.1885, 
193.22  subdivision 5, is amended to read: 
193.23     Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board of 
193.24  education commissioner of children, families, and learning shall 
193.25  issue a standard entrance license to an alternative preparation 
193.26  licensee who has successfully completed the school year in the 
193.27  alternative preparation program and who has received a positive 
193.28  recommendation from the licensee's mentorship team. 
193.29     Sec. 76.  Minnesota Statutes 1996, section 125.191, is 
193.30  amended to read: 
193.31     125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 
193.32     Notwithstanding section 125.03, subdivision 1, a school 
193.33  district may employ as a head varsity coach of an 
193.34  interscholastic sport at its secondary school a person who does 
193.35  not have a license as head varsity coach of interscholastic 
193.36  sports and who does not have a bachelor's degree if: 
194.1      (1) in the judgment of the school board, the person has the 
194.2   knowledge and experience necessary to coach the sport; 
194.3      (2) the position has been posted as a vacancy within the 
194.4   present teaching staff for a period of 30 days and no licensed 
194.5   coaches have applied for the position; 
194.6      (3) the person can verify completion of six quarter 
194.7   credits, or the equivalent, or 60 clock hours of instruction in 
194.8   first aid and the care and prevention of athletic injuries; and 
194.9      (4) the person (3) can verify completion of a coaching 
194.10  methods or theory course. 
194.11     Notwithstanding section 125.121, a person employed as a 
194.12  head varsity coach under this section has an annual contract as 
194.13  a coach that the school board may or may not renew as the board 
194.14  sees fit, after annually posting the position as required in 
194.15  clause (2) and no licensed coach has applied for the position. 
194.16     Sec. 77.  Minnesota Statutes 1996, section 128A.02, 
194.17  subdivision 1, is amended to read: 
194.18     Subdivision 1.  [TO GOVERN GOVERNANCE.] The state board of 
194.19  education the Faribault academy shall govern the state academy 
194.20  for the deaf and the state academy for the blind.  The board 
194.21  must promote academic standards based on high expectation and an 
194.22  assessment system to measure academic performance toward the 
194.23  achievement of those standards.  The board must focus on the 
194.24  academies' needs as a whole and not prefer one school over the 
194.25  other.  The board of the Faribault academies shall consist of 
194.26  seven persons.  The members of the board shall be appointed by 
194.27  the governor with the advice and consent of the senate.  Three 
194.28  members must be from the seven-county metropolitan area, three 
194.29  members must be from greater Minnesota, and one member may be 
194.30  appointed at-large.  The board must be composed of: 
194.31     (1) one superintendent of an independent school district; 
194.32     (2) one special education director; 
194.33     (3) the commissioner of children, families, and learning or 
194.34  the commissioner's designee; 
194.35     (4) one member of the blind community; 
194.36     (5) one member of the deaf community; and 
195.1      (6) two members of the general public with business or 
195.2   financial expertise. 
195.3      Sec. 78.  Minnesota Statutes 1996, section 128A.02, is 
195.4   amended by adding a subdivision to read: 
195.5      Subd. 1b.  [TERMS; COMPENSATION; AND OTHER.] The membership 
195.6   terms, compensation, removal of members, and filling of 
195.7   vacancies shall be as provided for in section 15.0575.  A member 
195.8   may serve not more than two consecutive terms. 
195.9      Sec. 79.  Minnesota Statutes 1996, section 128A.02, is 
195.10  amended by adding a subdivision to read: 
195.11     Subd. 2b.  [MEETINGS.] All meetings of the board shall be 
195.12  as provided in section 471.705 and must be held in Faribault. 
195.13     Sec. 80.  Minnesota Statutes 1996, section 128A.02, 
195.14  subdivision 3, is amended to read: 
195.15     Subd. 3.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state 
195.16  board must do what is necessary to provide the most beneficial 
195.17  and least restrictive program of education for each pupil at the 
195.18  academies who is handicapped by visual disability or deafness.  
195.19     Sec. 81.  Minnesota Statutes 1996, section 128A.02, 
195.20  subdivision 3b, is amended to read: 
195.21     Subd. 3b.  [PLANNING, EVALUATION, AND REPORTING.] To the 
195.22  extent required in school districts, the state board must 
195.23  establish a process for the academies to include parent and 
195.24  community input in the planning, evaluation, and reporting of 
195.25  curriculum and pupil achievement. 
195.26     Sec. 82.  Minnesota Statutes 1996, section 128A.02, 
195.27  subdivision 5, is amended to read: 
195.28     Subd. 5.  [SITE COUNCILS.] The state board may establish, 
195.29  and appoint members to, a site council at each academy.  The 
195.30  site councils shall exercise power and authority granted by 
195.31  the state board.  The state board must appoint to each site 
195.32  council the exclusive representative's employee designee from 
195.33  each exclusive representative at the academies. 
195.34     Sec. 83.  Minnesota Statutes 1996, section 128A.02, 
195.35  subdivision 6, is amended to read: 
195.36     Subd. 6.  [TRUSTEE OF ACADEMIES' PROPERTY.] The state board 
196.1   is the trustee of the academies' property.  Securities and 
196.2   money, including income from the property, must be deposited in 
196.3   the state treasury according to section 16A.275.  The deposits 
196.4   are subject to the order of the state board.  
196.5      Sec. 84.  Minnesota Statutes 1997 Supplement, section 
196.6   128A.02, subdivision 7, is amended to read: 
196.7      Subd. 7.  [GRANTS.] The state board, through the chief 
196.8   administrators of the academies, may apply for all competitive 
196.9   grants administered by agencies of the state and other 
196.10  government or nongovernment sources.  Application may not be 
196.11  made for grants over which the board has discretion. 
196.12     Sec. 85.  Minnesota Statutes 1996, section 128A.022, is 
196.13  amended to read: 
196.14     128A.022 [POWERS OF STATE BOARD OF EDUCATION THE FARIBAULT 
196.15  ACADEMIES.] 
196.16     Subdivision 1.  [PERSONNEL.] The state board of education 
196.17  of the Faribault academies may employ central administrative 
196.18  staff members and other personnel necessary to provide and 
196.19  support programs and services at each academy.  
196.20     Subd. 2.  [GET HELP FROM DEPARTMENT.] The state board of 
196.21  the Faribault academies may require the department of children, 
196.22  families, and learning to provide program leadership, program 
196.23  monitoring, and technical assistance at the academies.  
196.24     Subd. 3.  [UNCLASSIFIED POSITIONS.] The state board of the 
196.25  Faribault academies may place any position other than 
196.26  residential academies administrator in the unclassified 
196.27  service.  The position must meet the criteria in section 43A.08, 
196.28  subdivision 1a.  
196.29     Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
196.30  The state board of the Faribault academies may enter into 
196.31  agreements with public or private agencies or institutions to 
196.32  provide residential and building maintenance services.  
196.33  The state board of the Faribault academies must first decide 
196.34  that contracting for the services is more efficient and less 
196.35  expensive than not contracting for them.  
196.36     Subd. 6.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
197.1   The state board of the Faribault academies may enter into 
197.2   agreements with teacher preparation institutions for student 
197.3   teachers to get practical experience at the academies.  A 
197.4   licensed teacher must provide appropriate supervision of each 
197.5   student teacher.  
197.6      (b) The state board of the Faribault academies may enter 
197.7   into agreements with accredited higher education institutions 
197.8   for certain student trainees to get practical experience at the 
197.9   academies.  The students must be preparing themselves in a 
197.10  professional field that provides special services to children 
197.11  with a disability in school programs.  To be a student trainee 
197.12  in a field, a person must have completed at least two years of 
197.13  an approved program in the field.  A person who is licensed or 
197.14  registered in the field must provide appropriate supervision of 
197.15  each student trainee.  
197.16     Sec. 86.  Minnesota Statutes 1996, section 128A.023, 
197.17  subdivision 1, is amended to read: 
197.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
197.19  LEARNING.] The department of children, families, and learning 
197.20  must assist the state board of education the Faribault academies 
197.21  in preparing reports on the academies.  
197.22     Sec. 87.  Minnesota Statutes 1996, section 128A.023, 
197.23  subdivision 2, is amended to read: 
197.24     Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
197.25  department of employee relations, in cooperation with the state 
197.26  board of education the Faribault academies, must develop a 
197.27  statement of necessary qualifications and skills for all staff 
197.28  members of the academies. 
197.29     Sec. 88.  Minnesota Statutes 1996, section 128A.026, 
197.30  subdivision 1, is amended to read: 
197.31     Subdivision 1.  [SUBJECTS.] The state board of education 
197.32  the Faribault academies must establish procedures for:  
197.33     (1) admission, including short-term admission, to the 
197.34  academies; 
197.35     (2) discharge from the academies; 
197.36     (3) decisions on a pupil's program at the academies; and 
198.1      (4) evaluation of a pupil's progress at the academies.  
198.2      Sec. 89.  Minnesota Statutes 1996, section 128A.026, 
198.3   subdivision 3, is amended to read: 
198.4      Subd. 3.  [NOT CONTESTED CASE.] A proceeding about 
198.5   admission to or discharge from the academies or about a pupil's 
198.6   program or progress at the academies is not a contested case 
198.7   under section 14.02.  The proceeding is governed instead by the 
198.8   rules of the state board governing special education.  
198.9      Sec. 90.  Minnesota Statutes 1996, section 128A.07, 
198.10  subdivision 2, is amended to read: 
198.11     Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
198.12  liable for support of a pupil cannot support the pupil, the 
198.13  local social services agency of the county of the pupil's 
198.14  residence must do so.  The commissioner of children, families, 
198.15  and learning must decide how much the local social services 
198.16  agency must pay.  The state board of education the Faribault 
198.17  academies must adopt rules that tell how the commissioner is to 
198.18  fix the amount.  The local social services agency must make the 
198.19  payment to the superintendent of the school district of 
198.20  residence.  
198.21     Sec. 91.  Minnesota Statutes 1997 Supplement, section 
198.22  169.01, subdivision 6, is amended to read: 
198.23     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
198.24  used to transport pupils to or from a school defined in section 
198.25  120.101, or to or from school-related activities, by the school 
198.26  or a school district, or by someone under an agreement with the 
198.27  school or a school district.  A school bus does not include a 
198.28  motor vehicle transporting children to or from school for which 
198.29  parents or guardians receive direct compensation from a school 
198.30  district, a motor coach operating under charter carrier 
198.31  authority, a transit bus providing services as defined in 
198.32  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
198.33  as a type III vehicle under paragraph (5), when the vehicle is 
198.34  properly registered and insured and being driven by an employee 
198.35  or agent of a school district for nonscheduled transportation.  
198.36  A school bus may be type A, type B, type C, or type D, or type 
199.1   III as follows:  
199.2      (1) A "type A school bus" is a conversion or body 
199.3   constructed upon a van-type or cutaway front section vehicle 
199.4   with a left-side driver's door, designed for carrying more than 
199.5   ten persons.  This definition includes two classifications:  
199.6   type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
199.7   pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
199.8      (2) A "type B school bus" is a conversion or body 
199.9   constructed and installed upon a van or front-section vehicle 
199.10  chassis, or stripped chassis, with a gross vehicle weight rating 
199.11  of more than 10,000 pounds, designed for carrying more than ten 
199.12  persons.  Part of the engine is beneath or behind the windshield 
199.13  and beside the driver's seat.  The entrance door is behind the 
199.14  front wheels. 
199.15     (3) A "type C school bus" is a body installed upon a flat 
199.16  back cowl chassis with a gross vehicle weight rating of more 
199.17  than 10,000 pounds, designed for carrying more than ten 
199.18  persons.  All of the engine is in front of the windshield and 
199.19  the entrance door is behind the front wheels. 
199.20     (4) A "type D school bus" is a body installed upon a 
199.21  chassis, with the engine mounted in the front, midship or rear, 
199.22  with a gross vehicle weight rating of more than 10,000 pounds, 
199.23  designed for carrying more than ten persons.  The engine may be 
199.24  behind the windshield and beside the driver's seat; it may be at 
199.25  the rear of the bus, behind the rear wheels, or midship between 
199.26  the front and rear axles.  The entrance door is ahead of the 
199.27  front wheels. 
199.28     (5) Except for vehicles equipped with lifts, type III 
199.29  school buses and type III Head Start buses are restricted to 
199.30  passenger cars, station wagons, vans, and buses having a maximum 
199.31  an original maximum manufacturer's rated seating capacity of ten 
199.32  or fewer people, including the driver, and a gross vehicle 
199.33  weight rating of 10,000 pounds or less.  In this subdivision, 
199.34  "gross vehicle weight rating" means the value specified by the 
199.35  manufacturer as the loaded weight of a single vehicle.  A "type 
199.36  III school bus" and "type III Head Start bus" must not be 
200.1   outwardly equipped and identified as a type A, B, C, or D school 
200.2   bus or type A, B, C, or D Head Start bus. 
200.3      Sec. 92.  Minnesota Statutes 1996, section 169.448, 
200.4   subdivision 2, is amended to read: 
200.5      Subd. 2.  [SCHOOL MOTOR COACHES.] (a) A school district may 
200.6   not acquire a motor coach for transportation purposes.  
200.7      (b) A motor coach acquired by a school district before 
200.8   March 26, 1986, may be used by it only to transport students 
200.9   participating in school activities, their instructors, and 
200.10  supporting personnel to and from school activities.  A motor 
200.11  coach may not be outwardly equipped and identified as a school 
200.12  bus.  A motor coach operated under this subdivision is not a 
200.13  school bus for purposes of section 124.225.  The state board of 
200.14  education commissioner of children, families, and learning shall 
200.15  implement rules governing the equipment, identification, 
200.16  operation, inspection, and certification of motor coaches 
200.17  operated under this subdivision.  
200.18     (c) After January 1, 1998, a school district may not own or 
200.19  operate a motor coach for any purpose.  
200.20     Sec. 93.  Minnesota Statutes 1996, section 169.451, 
200.21  subdivision 5, is amended to read: 
200.22     Subd. 5.  [RANDOM SPOT INSPECTIONS.] In addition to the 
200.23  annual inspection, the Minnesota state patrol has authority to 
200.24  conduct random, unannounced spot inspections of any school bus 
200.25  or Head Start bus being operated within the state at the 
200.26  location where the bus is kept when not in operation to 
200.27  ascertain whether its construction, design, equipment, and color 
200.28  comply it is in compliance with all provisions of law, including 
200.29  the Minnesota school bus equipment standards in sections 
200.30  169.4501 to 169.4504, subject to the procedures approved by the 
200.31  commissioner. 
200.32     Sec. 94.  Minnesota Statutes 1997 Supplement, section 
200.33  169.974, subdivision 2, is amended to read: 
200.34     Subd. 2.  [LICENSE REQUIREMENTS.] No person shall operate a 
200.35  motorcycle on any street or highway without having a valid 
200.36  standard driver's license with a two-wheeled vehicle endorsement 
201.1   as provided by law.  No such two-wheeled vehicle endorsement 
201.2   shall be issued unless the person applying therefor has in 
201.3   possession a valid two-wheeled vehicle instruction permit as 
201.4   provided herein, has passed a written examination and road test 
201.5   administered by the department of public safety for such 
201.6   endorsement, and, in the case of applicants under 18 years of 
201.7   age, shall present a certificate or other evidence of having 
201.8   successfully completed an approved two-wheeled vehicle driver's 
201.9   safety course in this or another state, in accordance with rules 
201.10  promulgated by the state board of education commissioner of 
201.11  children, families, and learning for courses offered through the 
201.12  public schools, or rules promulgated by the commissioner of 
201.13  public safety for courses offered by a private or commercial 
201.14  school or institute.  The commissioner of public safety may 
201.15  waive the road test for any applicant on determining that the 
201.16  applicant possesses a valid license to operate a two-wheeled 
201.17  vehicle issued by a jurisdiction that requires a comparable road 
201.18  test for license issuance.  A two-wheeled vehicle instruction 
201.19  permit shall be issued to any person over 16 years of age, who 
201.20  is in possession of a valid driver's license, who is enrolled in 
201.21  an approved two-wheeled vehicle driver's safety course, and who 
201.22  has passed a written examination for such permit and has paid 
201.23  such fee as the commissioner of public safety shall prescribe.  
201.24  A two-wheeled vehicle instruction permit shall be effective for 
201.25  one year, and may be renewed under rules to be prescribed by the 
201.26  commissioner of public safety. 
201.27     No person who is operating by virtue of a two-wheeled 
201.28  vehicle instruction permit shall: 
201.29     (a) carry any passengers on the streets and highways of 
201.30  this state on the motorcycle which the person is operating; 
201.31     (b) drive the motorcycle at nighttime; 
201.32     (c) drive the motorcycle on any highway marked by the 
201.33  commissioner as an interstate highway pursuant to title 23 of 
201.34  the United States Code; or 
201.35     (d) drive the motorcycle without wearing protective 
201.36  headgear that complies with standards established by the 
202.1   commissioner of public safety. 
202.2      Notwithstanding the provisions of this subdivision, the 
202.3   commissioner of public safety may, however, issue a special 
202.4   motorcycle permit, restricted or qualified in such manner as the 
202.5   commissioner of public safety shall deem proper, to any person 
202.6   demonstrating a need therefor and unable to qualify for a 
202.7   standard driver's license. 
202.8      Sec. 95.  Minnesota Statutes 1997 Supplement, section 
202.9   290.0674, subdivision 1, is amended to read: 
202.10     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
202.11  a credit against the tax imposed by this chapter in an amount 
202.12  equal to the amount paid for education-related expenses for a 
202.13  dependent in kindergarten through grade 12.  For purposes of 
202.14  this section, "education-related expenses" means: 
202.15     (1) fees or tuition for instruction by an instructor under 
202.16  section 120.101, subdivision 7, clause (1), (2), (3), (4), or 
202.17  (5), for instruction outside the regular school day or school 
202.18  year, including tutoring, driver's education taken as part of 
202.19  school curriculum, or summer camps, in grade or age appropriate 
202.20  curricula that supplement curricula and instruction available 
202.21  during the regular school year, that assists a dependent to 
202.22  improve knowledge of core curriculum areas or to expand 
202.23  knowledge and skills under the graduation rule under section 
202.24  121.11, subdivision 7c, and that do not include the teaching of 
202.25  religious tenets, doctrines, or worship, the purpose of which is 
202.26  to instill such tenets, doctrines, or worship; 
202.27     (2) fees or tuition for instruction for driver's education 
202.28  from a private entity if the school the student attends offers 
202.29  driver's education as part of a school curriculum and charges a 
202.30  fee for the program; 
202.31     (3) expenses for textbooks, including books and other 
202.32  instructional materials and equipment used in elementary and 
202.33  secondary schools in teaching only those subjects legally and 
202.34  commonly taught in public elementary and secondary schools in 
202.35  this state.  "Textbooks" does not include instructional books 
202.36  and materials used in the teaching of religious tenets, 
203.1   doctrines, or worship, the purpose of which is to instill such 
203.2   tenets, doctrines, or worship, nor does it include books or 
203.3   materials for extracurricular activities including sporting 
203.4   events, musical or dramatic events, speech activities, driver's 
203.5   education, or similar programs; 
203.6      (3) (4) a maximum expense of $200 per family for personal 
203.7   computer hardware, excluding single purpose processors, and 
203.8   educational software that assists a dependent to improve 
203.9   knowledge of core curriculum areas or to expand knowledge and 
203.10  skills under the graduation rule under section 121.11, 
203.11  subdivision 7c, purchased for use in the taxpayer's home and not 
203.12  used in a trade or business regardless of whether the computer 
203.13  is required by the dependent's school; and 
203.14     (4) (5) the amount paid to others for transportation of a 
203.15  dependent attending an elementary or secondary school situated 
203.16  in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 
203.17  wherein a resident of this state may legally fulfill the state's 
203.18  compulsory attendance laws, which is not operated for profit, 
203.19  and which adheres to the provisions of the Civil Rights Act of 
203.20  1964 and chapter 363. 
203.21     Sec. 96.  Minnesota Statutes 1996, section 471.18, is 
203.22  amended to read: 
203.23     471.18 [STATE BOARD OF EDUCATION COMMISSIONER OF CHILDREN, 
203.24  FAMILIES, AND LEARNING TO ESTABLISH QUALIFICATIONS.] 
203.25     In all cases where school funds or property are utilized, 
203.26  the state board of education commissioner of children, families, 
203.27  and learning shall: 
203.28     (1) Establish minimum qualifications of local recreational 
203.29  directors and instructors; 
203.30     (2) Prepare or cause to be prepared, published, and 
203.31  distributed adequate and appropriate manuals and other materials 
203.32  as it may deem necessary or suitable to carry out the provisions 
203.33  of sections 471.15 to 471.19.  
203.34     Sec. 97.  Laws 1997, First Special Session chapter 4, 
203.35  article 8, section 4, subdivision 3, is amended to read: 
203.36     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
204.1   subdivision 2 shall provide for a library board of five seven 
204.2   members as follows:  two members appointed by the school board 
204.3   of independent school district No. 319, one member appointed by 
204.4   each town board located within independent school district No. 
204.5   319 boundaries, one member appointed by the council of the city 
204.6   of Nashwauk, and one member appointed by the Itasca county board 
204.7   to represent the unorganized towns within the school district 
204.8   territory. 
204.9      Sec. 98.  [ACCELERATED TRANSITION PLAN.] 
204.10     Notwithstanding Minnesota Statutes, section 122.23, 
204.11  subdivision 2b, or other law to the contrary, independent school 
204.12  district No. 2884, Red Rock Central, is authorized to terminate 
204.13  all existing school board members' terms by the first Monday in 
204.14  January 1999, and to hold elections for seven school board 
204.15  members at the 1998 school district general election under 
204.16  Minnesota Statutes, section 205A.04.  Of the seven board members 
204.17  elected, three members shall be elected to serve four-year terms 
204.18  and four members shall be elected to serve two-year terms.  Only 
204.19  one board member from each election district shall be elected to 
204.20  serve a four-year term.  Candidates must specify in their 
204.21  affidavit the election district and the term of office to which 
204.22  they are seeking election.  The school board members elected at 
204.23  the 1998 school district general election shall assume office on 
204.24  the first Monday in January 1999.  The school board of 
204.25  independent school district No. 2884, Red Rock Central, then 
204.26  shall consist of seven members until such time as the electors 
204.27  in the school district vote on a proposition favoring a 
204.28  six-member board under Minnesota Statutes, section 123.33, 
204.29  subdivision 1. 
204.30     Sec. 99.  [BUFFALO SCHOOL YEAR.] 
204.31     Notwithstanding Minnesota Statutes, section 126.12, 
204.32  subdivision 1, and Laws 1997, First Special Session chapter 4, 
204.33  article 7, section 49, subdivision 1, for the 1998-1999 and 
204.34  1999-2000 school years only, independent school district No. 
204.35  877, Buffalo, may begin the school year any day prior to Labor 
204.36  Day. 
205.1      Sec. 100.  [FUND TRANSFERS.] 
205.2      Subdivision 1.  [ADA-BORUP.] Notwithstanding Minnesota 
205.3   Statutes, section 124.83, subdivision 6, independent school 
205.4   district No. 2854, Ada-Borup, may use up to $90,000 of its 
205.5   health and safety revenue for capital improvements, equipment, 
205.6   or furnishings for new facilities. 
205.7      Subd. 2.  [LYND.] Notwithstanding Minnesota Statutes, 
205.8   sections 121.912 and 121.9121, on June 30, 1998, independent 
205.9   school district No. 415, Lynd, may permanently transfer $100,000 
205.10  from reserve accounts in the general fund to the unreserved 
205.11  general fund.  The transfer may be made from the reemployment 
205.12  account and the bus purchase account.  Transfers from the 
205.13  reemployment and bus purchase accounts may be made without 
205.14  making a levy reduction. 
205.15     Subd. 3.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
205.16  section 121.912 or 121.9121, on June 30, 1998, independent 
205.17  school district No. 418, Russell, may permanently transfer up to 
205.18  $150,000 from its capital expenditure fund to the district's 
205.19  general fund.  The transfer must not include health and safety 
205.20  or handicapped access revenue. 
205.21     Subd. 4.  [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 
205.22  section 121.912 or 121.9121, on June 30, 1998, independent 
205.23  school district No. 2609, Win-E-Mac, may permanently transfer 
205.24  the balance of its health and safety account to its general fund.
205.25     Sec. 101.  [REPEALER.] 
205.26     (a) Minnesota Statutes 1996, sections 121.02, subdivisions 
205.27  2a, 3, and 4; and 121.11, subdivisions 5, 7, 7b, 9, 11, 12, and 
205.28  14; and Minnesota Statutes 1997 Supplement, section 121.11, 
205.29  subdivision 7e, are repealed effective July 1, 1999. 
205.30     (b) Minnesota Statutes 1996, section 121.11, subdivision 
205.31  7d, is repealed effective January 10, 1999. 
205.32     (c) Minnesota Statutes 1996, section 124.647; Minnesota 
205.33  Statutes 1997 Supplement, sections 120.1015; and 169.452; are 
205.34  repealed. 
205.35     Sec. 102.  [REVISOR INSTRUCTION.] 
205.36     In the next and subsequent editions of Minnesota Statutes 
206.1   and Minnesota Rules, the revisor shall change the term "state 
206.2   board of education" or similar terms to the term "commissioner 
206.3   of children, families, and learning" or similar terms wherever 
206.4   they appear. 
206.5      Sec. 103.  [EFFECTIVE DATE.] 
206.6      Sections 1 to 26, 29, 31 to 53, 69 to 75, 77 to 90, 92, 94, 
206.7   96, and 102 are effective July 1, 1999. 
206.8      Sections 27, 28, 30, 55, 98, and 99 are effective the day 
206.9   following final enactment. 
206.10     Section 100 is effective June 30, 1998. 
206.11     Section 58 is effective July 1, 1998. 
206.12                             ARTICLE 7 
206.13                           STATE AGENCIES   
206.14     Section 1.  Laws 1997, First Special Session chapter 4, 
206.15  article 10, section 3, subdivision 2, is amended to read: 
206.16     Subd. 2.  [DEPARTMENT.] For the department of children, 
206.17  families, and learning: 
206.18       $24,360,000 $24,910,000   .....      1998
206.19       $23,978,000 $24,528,000   .....      1999
206.20     (a) Any balance in the first year does not cancel but is 
206.21  available in the second year. 
206.22     (b) $21,000 each year is from the trunk highway fund. 
206.23     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
206.24  academic excellence foundation. 
206.25     Up to $50,000 each year is contingent upon the match of $1 
206.26  in the previous year from private sources consisting of either 
206.27  direct monetary contributions or in-kind contributions of 
206.28  related goods or services, for each $1 of the appropriation.  
206.29  The commissioner of children, families, and learning must 
206.30  certify receipt of the money or documentation for the private 
206.31  matching funds or in-kind contributions.  The unencumbered 
206.32  balance from the amount actually appropriated from the 
206.33  contingent amount in 1998 does not cancel but is available in 
206.34  1999.  The amount carried forward must not be used to establish 
206.35  a larger annual base appropriation for later fiscal years. 
206.36     (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
207.1   board of education. 
207.2      (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
207.3   of teaching. 
207.4      (f) The expenditures of federal grants and aids as shown in 
207.5   the biennial budget document and its supplements are approved 
207.6   and appropriated and shall be spent as indicated. 
207.7      (g) The department of children, families, and learning 
207.8   shall develop a performance report on the quality of its 
207.9   programs and services.  The report must be consistent with the 
207.10  process specified in Minnesota Statutes, sections 15.90 to 
207.11  15.92.  The goals, objectives, and measures of this report must 
207.12  be developed in cooperation with the chairs of the finance 
207.13  divisions of the education committees of the house of 
207.14  representatives and senate, the department of finance, and the 
207.15  office of legislative auditor.  The report must include data to 
207.16  indicate the progress of the department in meeting its goals and 
207.17  objectives. 
207.18     (h) At least $50,000 is to ensure compliance with state and 
207.19  federal laws prohibiting discrimination because of race, 
207.20  religion, or sex.  The department shall use the appropriation to 
207.21  provide state-level leadership on equal education opportunities 
207.22  which promote elimination of discriminatory practices in the 
207.23  areas of race, religion, and sex in public schools and public 
207.24  educational agencies under its general supervision and on 
207.25  activities including, at least, compliance monitoring and 
207.26  voluntary compliance when local school district deficiencies are 
207.27  found. 
207.28     (i) Notwithstanding Minnesota Statutes, section 15.53, 
207.29  subdivision 2, the commissioner of children, families, and 
207.30  learning may contract with a school district for a period no 
207.31  longer than five consecutive years to work in the development or 
207.32  implementation of the graduation rule.  The commissioner may 
207.33  contract for services and expertise as necessary.  The contracts 
207.34  are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
207.35     (j) In preparing the department budget for fiscal years 
207.36  2000-2001, the department shall shift all administrative funding 
208.1   from aids appropriations into the appropriation for the 
208.2   department. 
208.3      (k) Reallocations of excesses under Minnesota Statutes, 
208.4   section 124.14, subdivision 7, from appropriations within this 
208.5   act shall only be made to deficiencies in programs with 
208.6   appropriations contained within this act. 
208.7      (l) $850,000 $1,400,000 each year is for costs associated 
208.8   with education adequacy litigation costs and may only be used 
208.9   for those purposes.  These appropriations are one-time 
208.10  only.  Amounts appropriated for one year of the biennium may be 
208.11  used for the other.  The commissioner shall contract with an 
208.12  independent facilitator to attempt mediation of the lawsuits. 
208.13     (m) Collaborative efforts between the department of 
208.14  children, families, and learning and the office of technology, 
208.15  as specified in Minnesota Statutes, section 237A.015, include: 
208.16     (1) advising the commissioner of children, families, and 
208.17  learning on new and emerging technologies, potential business 
208.18  partnerships, and technical standards; 
208.19     (2) assisting the commissioner of children, families, and 
208.20  learning in the sharing of data between state agencies relative 
208.21  to children's programs; and 
208.22     (3) as requested by the commissioner of children, families, 
208.23  and learning, assisting in collaborative efforts for joint 
208.24  prekindergarten through grade 12 and higher education projects, 
208.25  including the learning network. 
208.26  The commissioner of children, families, and learning shall have 
208.27  final approval for prekindergarten through grade 12 programs and 
208.28  lifelong learning programs, grant awards, and funding decisions. 
208.29     Sec. 2.  Laws 1997, First Special Session chapter 4, 
208.30  article 10, section 4, is amended to read: 
208.31     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
208.32  CENTER FOR ARTS EDUCATION.] 
208.33     The sums indicated in this section are appropriated from 
208.34  the general fund to the center for arts education for the fiscal 
208.35  years designated: 
208.36      $5,541,000 $5,559,000    .....     1998
209.1       $6,054,000 $6,090,000    .....     1999
209.2      Of the fiscal year 1998 appropriation, $154,000 is to fund 
209.3   artist and arts organization participation in the education 
209.4   residency and education technology projects, $75,000 is for 
209.5   school support for the residency project, and $121,000 is for 
209.6   further development of the partners:  arts and school for 
209.7   students (PASS) program, including pilots.  Of the fiscal year 
209.8   1999 appropriation, $154,000 is to fund artist and arts 
209.9   organizations participation in the education residency project, 
209.10  $75,000 is for school support for the residency project, and 
209.11  $121,000 is to fund the PASS program, including additional 
209.12  pilots.  The guidelines for the education residency project and 
209.13  the pass program shall be developed and defined by the center 
209.14  for arts education in cooperation with the Minnesota arts 
209.15  board.  The Minnesota arts board shall participate in the review 
209.16  and allocation process.  The center for arts education and the 
209.17  Minnesota arts board shall cooperate to fund these projects. 
209.18     Any balance in the first year does not cancel but is 
209.19  available in the second year. 
209.20     Sec. 3.  Laws 1997, First Special Session chapter 4, 
209.21  article 10, section 5, is amended to read: 
209.22     Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
209.23     The sums indicated in this section are appropriated from 
209.24  the general fund to the department of children, families, and 
209.25  learning for the Faribault academies for the fiscal years 
209.26  designated:  
209.27       $8,910,000 $8,949,000    .....     1998
209.28       $8,908,000 $8,986,000    .....     1999 
209.29     Any balance in the first year does not cancel but is 
209.30  available in the second year. 
209.31     In the next biennial budget, the academies must assess 
209.32  their progress in meeting the established performance measures 
209.33  for the Faribault academies and inform the legislature on the 
209.34  content of that assessment.  The information must include an 
209.35  assessment of its progress by consumers and employees.