1.1                          A bill for an act 
  1.2             relating to children; providing for prekindergarten to 
  1.3             grade 12 education; eliminating requirement that 
  1.4             parents must make appeal before their children get 
  1.5             free transportation from nonresident district for 
  1.6             travel within their resident district; simplifying 
  1.7             property tax shift computations; clarifying the 
  1.8             payment of aids and credits to school districts; 
  1.9             permitting school districts to transfer from the 
  1.10            undesignated fund balance account to the reserve fund 
  1.11            balance account for bus purchases in the general fund; 
  1.12            modifying the referendum allowance limit; clarifying 
  1.13            the definition of fiscal year 1996 base allowance used 
  1.14            in computing transportation transition revenue; 
  1.15            eliminating the repeal of the education funding 
  1.16            system; repealing provisions outlining a replacement 
  1.17            education finance system and an education trust fund; 
  1.18            extending expiration of interagency coordinating 
  1.19            council; requiring districts to request tuition for 
  1.20            non-Minnesota residents; providing for school site 
  1.21            eligibility for duration of first-grade preparedness 
  1.22            program; clarifying payment of transportation costs of 
  1.23            pupils enrolled in first-grade preparedness program; 
  1.24            revising special education, secondary vocational 
  1.25            disabled, and limited English proficiency base revenue 
  1.26            calculations to annualize data for districts whose 
  1.27            first year of operation of these programs is less than 
  1.28            a full year; including tribal grant or contract 
  1.29            schools as recipients of post-secondary preparation 
  1.30            program grants; adjusting special education excess 
  1.31            cost formula; extending sunset of American Indian 
  1.32            education committee and Indian scholarship committee; 
  1.33            repealing special education court placement revenue 
  1.34            and special education tuition revenue; permitting 
  1.35            amendment of rules for graduation education 
  1.36            development test scores; extending time for contracts 
  1.37            executed after award of metropolitan magnet school 
  1.38            grants; permitting family services collaboratives to 
  1.39            enter into interchange agreements; clarifying 
  1.40            children's trust fund provisions; restructuring child 
  1.41            care program to support required participation 
  1.42            activities for cash assistance recipients; eliminating 
  1.43            references to community-based collaboratives; 
  1.44            modifying date of program approval for learning 
  1.45            readiness aid; modifying formula for learning 
  1.46            readiness aid; revising Head Start provisions to 
  2.1             comply with federal law; providing for recommendations 
  2.2             on child care licensure; reinstating and adding 
  2.3             operational exemptions for Minnesota Career 
  2.4             Information System; renaming secondary vocational 
  2.5             program; providing for a student lifework development 
  2.6             plan; exempting collaborative facilities from certain 
  2.7             restrictions on districts entering into long-term 
  2.8             agreements; modifying review and comment process for a 
  2.9             capital loan; removing requirement of two votes at 
  2.10            local level to appeal to state board for sponsorship 
  2.11            of a charter school; transferring charter school 
  2.12            review and comment authority from state board of 
  2.13            education to department of children, families, and 
  2.14            learning; updating educational effectiveness program; 
  2.15            clarifying eligibility and rate of aid for 
  2.16            post-secondary enrollment options transportation; 
  2.17            permitting charter schools to use outside funds in a 
  2.18            manner currently permitted other public schools; 
  2.19            providing consistency between area learning center and 
  2.20            graduation incentives program provisions; providing 
  2.21            for additional eligibility criteria for graduation 
  2.22            incentives program; repealing staff development 
  2.23            incentives program; providing that summers in a 
  2.24            learning-year program do not count against time of 
  2.25            participation for post-secondary enrollment options; 
  2.26            clarifying inconsistencies in length of suspension and 
  2.27            expulsion in Pupil Fair Dismissal Act; permitting 
  2.28            applicants for the Librarians of Color program to be 
  2.29            from colleges outside Minnesota; permitting a 
  2.30            recipient of a Librarians of Color program grant to 
  2.31            fulfill work obligation in any Minnesota library; 
  2.32            providing for a permanent limit on basic system 
  2.33            support grants to library systems that decrease their 
  2.34            funding support; amending Minnesota Statutes 1996, 
  2.35            sections 15.53, subdivision 2; 119A.13, subdivisions 
  2.36            2, 3, and 4; 119A.14; 119A.15, subdivisions 2 and 5; 
  2.37            119A.16; 119B.01, subdivisions 8, 9, 16, 17, and by 
  2.38            adding subdivisions; 119B.02; 119B.03, subdivisions 3, 
  2.39            5, and 8; 119B.04; 119B.05, subdivisions 1, 5, 6, and 
  2.40            by adding a subdivision; 119B.07; 119B.08, 
  2.41            subdivisions 1 and 3; 119B.09, subdivisions 1, 2, and 
  2.42            by adding subdivisions; 119B.10, subdivision 1; 
  2.43            119B.11, subdivision 1; 119B.13, subdivision 1; 
  2.44            119B.15; 120.062, subdivision 9; 120.064, by adding a 
  2.45            subdivision; 120.1701, subdivision 3; 120.181; 121.11, 
  2.46            subdivision 7c, and by adding a subdivision; 121.155, 
  2.47            by adding a subdivision; 121.602, subdivisions 1, 2, 
  2.48            and 4; 121.8355, subdivision 1; 121.904, subdivision 
  2.49            4a; 123.3514, subdivisions 4c and 8; 123.39, 
  2.50            subdivision 6; 124.155, subdivision 1; 124.195, 
  2.51            subdivisions 2, 7, 10, and 11; 124.225, subdivision 
  2.52            10; 124.248, subdivision 4; 124.2613, subdivisions 3 
  2.53            and 6; 124.2615, subdivisions 1 and 2; 124.273, 
  2.54            subdivision 1d; 124.3201, subdivisions 2 and 3; 
  2.55            124.323, subdivision 2; 124.431, subdivision 2; 
  2.56            124.48, subdivision 3; 124.481; 124.574, subdivision 
  2.57            1, 2d, 5, 6, and 9; 124.912, subdivisions 2 and 3; 
  2.58            124.916, subdivisions 1, 2, and 3; 124.918, 
  2.59            subdivision 6; 124A.03, subdivision 1c; 124A.22, 
  2.60            subdivision 13; 124C.46, subdivisions 1 and 2; 
  2.61            124C.498, subdivision 2; 126.22, subdivision 2; 
  2.62            126.531, subdivision 3; 126.82; 127.27, subdivision 
  2.63            10; 127.282; 134.155, subdivisions 2 and 3; 134.34, 
  2.64            subdivision 4; 268.913, subdivisions 2 and 4; and 
  2.65            268.914, subdivision 1; amending Laws 1992, chapter 
  2.66            499, article 7, section 31; Laws 1995, First Special 
  2.67            Session chapter 3, articles 2, section 52; and 11, 
  2.68            section 21, subdivision 3; proposing coding for new 
  2.69            law in Minnesota Statutes, chapters 121; and 126; 
  2.70            repealing Minnesota Statutes 1996, sections 119B.03, 
  2.71            subdivision 7; 119B.05, subdivisions 2 and 3; 119B.11, 
  3.1             subdivision 2; 121.602, subdivisions 3 and 5; 
  3.2             121.8355, subdivision 1a; 121.904, subdivision 4d; 
  3.3             124.3201, subdivisions 2a and 2b; 124A.292; 124A.697; 
  3.4             124A.698; 124A.70; 124A.71; 124A.711; 124A.72; 
  3.5             124A.73; 134.34, subdivision 4a; and 268.913, 
  3.6             subdivision 5. 
  3.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.8                              ARTICLE 1 
  3.9      Section 1.  Minnesota Statutes 1996, section 120.062, 
  3.10  subdivision 9, is amended to read: 
  3.11     Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
  3.12  of a pupil, the nonresident district shall provide 
  3.13  transportation within the district.  The state shall pay 
  3.14  transportation aid to the district according to section 124.225. 
  3.15     The resident district is not required to provide or pay for 
  3.16  transportation between the pupil's residence and the border of 
  3.17  the nonresident district.  A parent may be reimbursed by the 
  3.18  nonresident district for the costs of transportation from the 
  3.19  pupil's residence to the border of the nonresident district if 
  3.20  the pupil is from a family whose income is at or below the 
  3.21  poverty level, as determined by the federal government.  The 
  3.22  reimbursement may not exceed the pupil's actual cost of 
  3.23  transportation or 15 cents per mile traveled, whichever is 
  3.24  less.  Reimbursement may not be paid for more than 250 miles per 
  3.25  week.  
  3.26     At the time a nonresident district notifies a parent or 
  3.27  guardian that an application has been accepted under subdivision 
  3.28  5 or 6, the nonresident district must provide the parent or 
  3.29  guardian with the following information regarding the 
  3.30  transportation of nonresident pupils under this section: 123.39, 
  3.31  subdivision 6. 
  3.32     (1) a nonresident district may transport a pupil within the 
  3.33  pupil's resident district under this section only with the 
  3.34  approval of the resident district; and 
  3.35     (2) a parent or guardian of a pupil attending a nonresident 
  3.36  district under this section may appeal under section 123.39, 
  3.37  subdivision 6, the refusal of the resident district to allow the 
  3.38  nonresident district to transport the pupil within the resident 
  4.1   district. 
  4.2      (b) Notwithstanding paragraph (a) and section 124.225, 
  4.3   subdivision 8l, transportation provided by a nonresident 
  4.4   district between home and school for a pupil attending school 
  4.5   under this section is authorized for nonregular transportation 
  4.6   revenue under section 124.225, if the following criteria are met:
  4.7      (1) the school that the pupil was attending prior to 
  4.8   enrolling in the nonresident district under this section was 
  4.9   closed; 
  4.10     (2) the distance from the closed school to the next nearest 
  4.11  school in the district that the student could attend is at least 
  4.12  20 miles; 
  4.13     (3) the pupil's residence is at least 20 miles from any 
  4.14  school that the pupil could attend in the resident district; and 
  4.15     (4) the pupil's residence is closer to the school of 
  4.16  attendance in the nonresident district than to any school the 
  4.17  pupil could attend in the resident district. 
  4.18     Sec. 2.  Minnesota Statutes 1996, section 121.904, 
  4.19  subdivision 4a, is amended to read: 
  4.20     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  4.21  settlement revenue" means the current, delinquent, and 
  4.22  manufactured home property tax receipts collected by the county 
  4.23  and distributed to the school district, including distributions 
  4.24  made pursuant to section 279.37, subdivision 7, and excluding 
  4.25  the amount levied pursuant to section 124.914, subdivision 1. 
  4.26     (b) In June of each year, the school district shall 
  4.27  recognize as revenue, in the fund for which the levy was made, 
  4.28  the lesser of:  
  4.29     (1) the May, June, and July school district tax settlement 
  4.30  revenue received in that calendar year; or 
  4.31     (2) the sum of the state aids and credits enumerated in 
  4.32  section 124.155, subdivision 2, which are for the fiscal year 
  4.33  payable in that fiscal year plus an amount equal to the levy 
  4.34  recognized as revenue in June of the prior year plus 31 percent 
  4.35  for fiscal year 1996 and thereafter of the amount of the levy 
  4.36  certified in the prior calendar year according to section 
  5.1   124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  5.2   including levy portions that are assumed by the state; or 
  5.3      (3) 18.1 percent for fiscal year 1996, the percent 
  5.4   determined under Laws 1996, chapter 461, section 3, for fiscal 
  5.5   year 1997 and that same percent thereafter of the amount of the 
  5.6   levy certified in the prior calendar year, plus or minus 
  5.7   auditor's adjustments, not including levy portions that are 
  5.8   assumed by the state, which remains after subtracting, by fund, 
  5.9   the amounts levied for the following purposes:  
  5.10     (i) reducing or eliminating projected deficits in the 
  5.11  reserved fund balance accounts for unemployment insurance and 
  5.12  bus purchases; 
  5.13     (ii) statutory operating debt pursuant to section 124.914, 
  5.14  subdivision 1; 
  5.15     (iii) retirement and severance pay pursuant to sections 
  5.16  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  5.17  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  5.18  1975, chapter 261, section 4; 
  5.19     (iv) amounts levied for bonds issued and interest thereon, 
  5.20  amounts levied for debt service loans and capital loans, amounts 
  5.21  levied for down payments under section 124.82, subdivision 3; 
  5.22  and 
  5.23     (v) amounts levied under section 124.755. 
  5.24     Notwithstanding the foregoing, the levy recognition 
  5.25  percentage for the referendum levy certified according to 
  5.26  section 124A.03, subdivision 2, is 31 percent. 
  5.27     (3)(i) 8.4 percent of the lesser of the amount of the 
  5.28  general education levy certified in the prior calendar year 
  5.29  according to section 124A.23, subdivision 2, or the difference 
  5.30  between the amount of the total general fund levy certified in 
  5.31  the prior calendar year and the sum of the amounts certified in 
  5.32  the prior calendar year according to sections 124A.03, 
  5.33  subdivision 2; 124.912, subdivisions 2 and 3; 124.916, 
  5.34  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  5.35  124.918, subdivision 6; plus 
  5.36     (ii) 31 percent of the referendum levy certified in the 
  6.1   prior calendar year according to section 124A.03, subdivision 2; 
  6.2   plus 
  6.3      (iii) the entire amount of the levy certified in the prior 
  6.4   calendar year according to sections 124.912, subdivisions 2 and 
  6.5   3; 124.916, subdivisions 1, 2, and 3, paragraphs (4), (5), and 
  6.6   (6); and 124.918, subdivision 6. 
  6.7      (c) In July of each year, the school district shall 
  6.8   recognize as revenue that portion of the school district tax 
  6.9   settlement revenue received in that calendar year and not 
  6.10  recognized as revenue for the previous fiscal year pursuant to 
  6.11  clause (b).  
  6.12     (d) All other school district tax settlement revenue shall 
  6.13  be recognized as revenue in the fiscal year of the settlement. 
  6.14  Portions of the school district levy assumed by the state, 
  6.15  including prior year adjustments and the amount to fund the 
  6.16  school portion of the reimbursement made pursuant to section 
  6.17  273.425, shall be recognized as revenue in the fiscal year 
  6.18  beginning in the calendar year for which the levy is payable. 
  6.19     Sec. 3.  Minnesota Statutes 1996, section 123.39, 
  6.20  subdivision 6, is amended to read: 
  6.21     Subd. 6.  For the purposes of this subdivision, a 
  6.22  "nonresident pupil" is a pupil who resides in one district, 
  6.23  defined as the "resident district" and attends school in another 
  6.24  district, defined as the "nonresident district." 
  6.25     If requested, a nonresident district may shall transport a 
  6.26  nonresident pupil within its borders and may transport a 
  6.27  nonresident pupil within the pupil's resident district.  A 
  6.28  nonresident district may not transport a nonresident pupil on a 
  6.29  school district owned or contractor operated school bus within 
  6.30  the pupil's resident district without the approval of the 
  6.31  resident district under section 120.062. 
  6.32     The parent or guardian of a nonresident pupil attending a 
  6.33  nonresident district under section 120.062 may submit a written 
  6.34  request to the resident district asking that the resident 
  6.35  district allow the nonresident district to provide 
  6.36  transportation for the pupil within the pupil's resident 
  7.1   district.  The resident district must approve or disapprove the 
  7.2   request, in writing, within 30 days.  The parent or guardian may 
  7.3   appeal the refusal of the resident district to the commissioner 
  7.4   of children, families, and learning.  The commissioner must act 
  7.5   on the appeal within 30 days.  If a nonresident district decides 
  7.6   to transport a nonresident pupil within the pupil's resident 
  7.7   district, the nonresident district must notify the pupil's 
  7.8   resident district of its decision, in writing, prior to 
  7.9   providing transportation. 
  7.10     Sec. 4.  Minnesota Statutes 1996, section 124.155, 
  7.11  subdivision 1, is amended to read: 
  7.12     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
  7.13  aids and credits enumerated in subdivision 2 payable to any 
  7.14  school district for that fiscal year shall be adjusted, in the 
  7.15  order listed, by an amount equal to (1) the amount the district 
  7.16  recognized as revenue for the prior fiscal year pursuant to 
  7.17  section 121.904, subdivision 4a, clause (b), minus (2) the 
  7.18  amount the district recognizes as revenue for the current fiscal 
  7.19  year pursuant to section 121.904, subdivision 4a, clause (b).  
  7.20  For the purposes of making the aid adjustment under this 
  7.21  subdivision, the amount the district recognizes as revenue for 
  7.22  either the prior fiscal year or the current fiscal year pursuant 
  7.23  to section 121.904, subdivision 4a, clause (b), shall not 
  7.24  include any amount levied pursuant to sections 124.226, 
  7.25  subdivision 9, 124.912, subdivisions 2 and 3, or a successor 
  7.26  provision only for those districts affected, 124.916, 
  7.27  subdivisions 1 and, 2, and 3, paragraphs 4, 5, and 6, 124.918, 
  7.28  subdivision 6, and 124A.03, subdivision 2; and Laws 1992, 
  7.29  chapter 499, articles 1, section 20, and 6, section 36.  Payment 
  7.30  from the permanent school fund shall not be adjusted pursuant to 
  7.31  this section.  The school district shall be notified of the 
  7.32  amount of the adjustment made to each payment pursuant to this 
  7.33  section. 
  7.34     Sec. 5.  Minnesota Statutes 1996, section 124.195, 
  7.35  subdivision 2, is amended to read: 
  7.36     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
  8.1   receipts" means payments by county treasurers pursuant to 
  8.2   section 276.10, apportionments from the school endowment fund 
  8.3   pursuant to section 124.09, apportionments by the county auditor 
  8.4   pursuant to section 124.10, subdivision 2, and payments to 
  8.5   school districts by the commissioner of revenue pursuant to 
  8.6   chapter 298.  
  8.7      (b) The term "cumulative amount guaranteed" means the sum 
  8.8   of the following: 
  8.9      (1) one-third of the final adjustment payment according to 
  8.10  subdivision 6; plus 
  8.11     (2) the product of 
  8.12     (i) the cumulative disbursement percentage shown in 
  8.13  subdivision 3; times 
  8.14     (ii) the sum of 
  8.15     85 90 percent of the estimated aid and credit entitlements 
  8.16  paid according to subdivision 10; plus 
  8.17     100 percent of the entitlements paid according to 
  8.18  subdivisions 8 and 9; plus 
  8.19     the other district receipts; plus 
  8.20     the final adjustment payment according to subdivision 6.  
  8.21     (c) The term "payment date" means the date on which state 
  8.22  payments to school districts are made by the electronic funds 
  8.23  transfer method.  If a payment date falls on a Saturday, a 
  8.24  Sunday, or a weekday which is a legal holiday, the payment shall 
  8.25  be made on the immediately following business day.  The 
  8.26  commissioner of children, families, and learning may make 
  8.27  payments on dates other than those listed in subdivision 3, but 
  8.28  only for portions of payments from any preceding payment dates 
  8.29  which could not be processed by the electronic funds transfer 
  8.30  method due to documented extenuating circumstances. 
  8.31     Sec. 6.  Minnesota Statutes 1996, section 124.195, 
  8.32  subdivision 7, is amended to read: 
  8.33     Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
  8.34  fiscal year state general fund payments for a district 
  8.35  nonoperating fund shall be made at 85 90 percent of the 
  8.36  estimated entitlement during the fiscal year of the entitlement, 
  9.1   unless a higher rate has been established according to section 
  9.2   121.904, subdivision 4d.  This amount shall be paid in 12 equal 
  9.3   monthly installments.  The amount of the actual entitlement, 
  9.4   after adjustment for actual data, minus the payments made during 
  9.5   the fiscal year of the entitlement shall be paid prior to 
  9.6   October 31 of the following school year.  The commissioner may 
  9.7   make advance payments of homestead and agricultural credit aid 
  9.8   for a district's debt service fund earlier than would occur 
  9.9   under the preceding schedule if the district submits evidence 
  9.10  showing a serious cash flow problem in the fund.  The 
  9.11  commissioner may make earlier payments during the year and, if 
  9.12  necessary, increase the percent of the entitlement paid to 
  9.13  reduce the cash flow problem. 
  9.14     Sec. 7.  Minnesota Statutes 1996, section 124.195, 
  9.15  subdivision 10, is amended to read: 
  9.16     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
  9.17  subdivisions 8, 9, and 11, each fiscal year, all education aids 
  9.18  and credits in this chapter and chapters 121, 123, 124A, 124B, 
  9.19  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
  9.20  for districts operating a program under section 121.585 for 
  9.21  grades 1 to 12 for all students in the district and 85 percent 
  9.22  for other districts of the estimated entitlement during the 
  9.23  fiscal year of the entitlement, unless a higher rate has been 
  9.24  established according to section 121.904, subdivision 4d.  
  9.25  Districts operating a program under section 121.585 for grades 1 
  9.26  to 12 for all students in the district shall receive 85 percent 
  9.27  of the estimated entitlement plus an additional amount of 
  9.28  general education aid equal to five percent of the estimated 
  9.29  entitlement.  For all districts,.  The final adjustment payment, 
  9.30  according to subdivision 6, shall be the amount of the actual 
  9.31  entitlement, after adjustment for actual data, minus the 
  9.32  payments made during the fiscal year of the entitlement. 
  9.33     Sec. 8.  Minnesota Statutes 1996, section 124.195, 
  9.34  subdivision 11, is amended to read: 
  9.35     Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
  9.36  according to sections 123.931 to 123.947 for pupils attending 
 10.1   nonpublic schools as follows: 
 10.2      (1) an advance payment by November 30 equal to 85 90 
 10.3   percent of the estimated entitlement for the current fiscal 
 10.4   year; and 
 10.5      (2) a final payment by October 31 of the following fiscal 
 10.6   year, adjusted for actual data.  
 10.7      If a payment advance to meet cash flow needs is requested 
 10.8   by a district and approved by the commissioner, the state shall 
 10.9   pay basic nonpublic pupil transportation aid according to 
 10.10  section 124.225 attributable to pupils attending nonpublic 
 10.11  schools by October 31. 
 10.12     Sec. 9.  Minnesota Statutes 1996, section 124.225, 
 10.13  subdivision 10, is amended to read: 
 10.14     Subd. 10.  [DEPRECIATION.] (a) Any school district that 
 10.15  owns school buses or mobile units shall may transfer annually 
 10.16  from the undesignated fund balance account in its transportation 
 10.17  general fund to the reserved fund balance account for bus 
 10.18  purchases in its transportation general fund at least an amount 
 10.19  equal to not to exceed 15 percent per year for districts 
 10.20  operating a program under section 121.585 for grades 1 to 12 for 
 10.21  all students in the district and 12-1/2 percent per year for 
 10.22  other districts of the original cost of each type one or type 
 10.23  two school bus or mobile unit until the original cost of each 
 10.24  type one or type two school bus or mobile unit is fully 
 10.25  amortized, plus 20 percent of the original cost of each type 
 10.26  three bus included in the district's authorized cost under the 
 10.27  provisions of subdivision 1, paragraph (b), clause (4), until 
 10.28  the original cost of each type three bus is fully amortized, 
 10.29  plus 33-1/3 percent of the cost to the district as of July 1 of 
 10.30  each year for school bus reconditioning done by the department 
 10.31  of corrections until the cost of the reconditioning is fully 
 10.32  amortized; provided, if the district's transportation aid or 
 10.33  levy is reduced pursuant to subdivision 8a because the 
 10.34  appropriation for that year is insufficient, this amount shall 
 10.35  be reduced in proportion to the reduction pursuant to 
 10.36  subdivision 8a as a percentage of the district's transportation 
 11.1   revenue under subdivision 7d eight years old.  
 11.2      (b) When a district finds that the transfers authorized 
 11.3   under paragraph (a) are insufficient to eliminate a projected 
 11.4   deficit in the reserved fund balance account for bus purchases, 
 11.5   it may apply to the commissioner for permission to make an 
 11.6   additional transfer.  The commissioner must approve, modify, or 
 11.7   deny the request within 60 days.  The commissioner must not 
 11.8   authorize a transfer under this paragraph in an amount greater 
 11.9   than the amount of the projected deficit in the reserved fund 
 11.10  balance account for bus purchases. 
 11.11     Sec. 10.  Minnesota Statutes 1996, section 124.912, 
 11.12  subdivision 2, is amended to read: 
 11.13     Subd. 2.  [DESEGREGATION.] Each year, special school 
 11.14  district No. 1, Minneapolis, may levy an amount not to exceed 
 11.15  $197 times its actual pupil units for that fiscal year; 
 11.16  independent school district No. 625, St. Paul, may levy an 
 11.17  amount not to exceed $197 times its actual pupil units for that 
 11.18  fiscal year; and independent school district No. 709, Duluth, 
 11.19  may levy an amount not to exceed the sum of $660,000 and the 
 11.20  amount raised by a tax rate of 2.0 percent times the adjusted 
 11.21  net tax capacity of the district.  Notwithstanding section 
 11.22  121.904, the entire amount of this levy shall be recognized as 
 11.23  revenue for the fiscal year in which the levy is certified.  
 11.24  This levy shall not be considered in computing the aid reduction 
 11.25  under section 124.155. 
 11.26     Sec. 11.  Minnesota Statutes 1996, section 124.912, 
 11.27  subdivision 3, is amended to read: 
 11.28     Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
 11.29  required to implement a plan according to the requirements of 
 11.30  Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
 11.31  amount not to exceed a net tax rate of 2.0 percent times the 
 11.32  adjusted net tax capacity of the district for taxes payable in 
 11.33  1991 and thereafter.  A district that levies according to 
 11.34  subdivision 2 may not levy according to this subdivision.  
 11.35  Notwithstanding section 121.904, the entire amount of this levy 
 11.36  shall be recognized as revenue for the fiscal year in which the 
 12.1   levy is certified.  This levy shall not be considered in 
 12.2   computing the aid reduction under section 124.155.  
 12.3      Sec. 12.  Minnesota Statutes 1996, section 124.916, 
 12.4   subdivision 1, is amended to read: 
 12.5      Subdivision 1.  [HEALTH INSURANCE.] (a) A school district 
 12.6   may levy the amount necessary to make employer contributions for 
 12.7   insurance for retired employees under this 
 12.8   subdivision.  Notwithstanding section 121.904, 50 percent of the 
 12.9   amount levied shall be recognized as revenue for the fiscal year 
 12.10  in which the levy is certified.  This levy shall not be 
 12.11  considered in computing the aid reduction under section 124.155. 
 12.12     (b) The school board of a joint vocational technical 
 12.13  district formed under sections 136C.60 to 136C.69 and the school 
 12.14  board of a school district may provide employer-paid hospital, 
 12.15  medical, and dental benefits to a person who: 
 12.16     (1) is eligible for employer-paid insurance under 
 12.17  collective bargaining agreements or personnel plans in effect on 
 12.18  June 30, 1992; 
 12.19     (2) has at least 25 years of service credit in the public 
 12.20  pension plan of which the person is a member on the day before 
 12.21  retirement or, in the case of a teacher, has a total of at least 
 12.22  25 years of service credit in the teachers retirement 
 12.23  association, a first-class city teacher retirement fund, or any 
 12.24  combination of these; 
 12.25     (3) upon retirement is immediately eligible for a 
 12.26  retirement annuity; 
 12.27     (4) is at least 55 and not yet 65 years of age; and 
 12.28     (5) retires on or after May 15, 1992, and before July 21, 
 12.29  1992. 
 12.30     A school board paying insurance under this subdivision may 
 12.31  not exclude any eligible employees. 
 12.32     (c) An employee who is eligible both for the health 
 12.33  insurance benefit under this subdivision and for an early 
 12.34  retirement incentive under a collective bargaining agreement or 
 12.35  personnel plan established by the employer must select either 
 12.36  the early retirement incentive provided under the collective 
 13.1   bargaining agreement personnel plan or the incentive provided 
 13.2   under this subdivision, but may not receive both.  For purposes 
 13.3   of this subdivision, a person retires when the person terminates 
 13.4   active employment and applies for retirement benefits.  The 
 13.5   retired employee is eligible for single and dependent coverages 
 13.6   and employer payments to which the person was entitled 
 13.7   immediately before retirement, subject to any changes in 
 13.8   coverage and employer and employee payments through collective 
 13.9   bargaining or personnel plans, for employees in positions 
 13.10  equivalent to the position from which the employee retired.  The 
 13.11  retired employee is not eligible for employer-paid life 
 13.12  insurance.  Eligibility ceases when the retired employee attains 
 13.13  the age of 65, or when the employee chooses not to receive the 
 13.14  retirement benefits for which the employee has applied, or when 
 13.15  the employee is eligible for employer-paid health insurance from 
 13.16  a new employer.  Coverages must be coordinated with relevant 
 13.17  health insurance benefits provided through the federally 
 13.18  sponsored Medicare program.  
 13.19     (d) Unilateral implementation of this section by a public 
 13.20  employer is not an unfair labor practice for purposes of chapter 
 13.21  179A.  The authority provided in this subdivision for an 
 13.22  employer to pay health insurance costs for certain retired 
 13.23  employees is not subject to the limits in section 179A.20, 
 13.24  subdivision 2a. 
 13.25     (e) If a school district levies according to this 
 13.26  subdivision, it may not also levy according to section 122.531, 
 13.27  subdivision 9, for eligible employees. 
 13.28     Sec. 13.  Minnesota Statutes 1996, section 124.916, 
 13.29  subdivision 2, is amended to read: 
 13.30     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 13.31  payable in 1996, 1997, 1998, and 1999 only, a school district 
 13.32  may levy an amount up to the amount the district is required by 
 13.33  the collective bargaining agreement in effect on March 30, 1992, 
 13.34  to pay for health insurance or unreimbursed medical expenses for 
 13.35  licensed and nonlicensed employees who have terminated services 
 13.36  in the employing district and withdrawn from active teaching 
 14.1   service or other active service, as applicable, before July 1, 
 14.2   1992.  The total amount of the levy each year may not exceed 
 14.3   $300,000.  
 14.4      Notwithstanding section 121.904, 50 percent of the proceeds 
 14.5   of this levy shall be recognized in the fiscal year in which it 
 14.6   is certified. 
 14.7      Sec. 14.  Minnesota Statutes 1996, section 124.916, 
 14.8   subdivision 3, is amended to read: 
 14.9      Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 14.10  excess levy authorized in 1976 any district within a city of the 
 14.11  first class which was authorized in 1975 to make a retirement 
 14.12  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 14.13  422A may levy an amount per pupil unit which is equal to the 
 14.14  amount levied in 1975 payable 1976, under Minnesota Statutes 
 14.15  1974, section 275.127 and chapter 422A, divided by the number of 
 14.16  pupil units in the district in 1976-1977. 
 14.17     (2) In 1979 and each year thereafter, any district which 
 14.18  qualified in 1976 for an extra levy under paragraph (1) shall be 
 14.19  allowed to levy the same amount as levied for retirement in 1978 
 14.20  under this clause reduced each year by ten percent of the 
 14.21  difference between the amount levied for retirement in 1971 
 14.22  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 14.23  422.54 and the amount levied for retirement in 1975 under 
 14.24  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 14.25     (3) In 1991 and each year thereafter, a district to which 
 14.26  this subdivision applies may levy an additional amount required 
 14.27  for contributions to the Minneapolis employees retirement fund 
 14.28  as a result of the maximum dollar amount limitation on state 
 14.29  contributions to the fund imposed under section 422A.101, 
 14.30  subdivision 3.  The additional levy shall not exceed the most 
 14.31  recent amount certified by the board of the Minneapolis 
 14.32  employees retirement fund as the district's share of the 
 14.33  contribution requirement in excess of the maximum state 
 14.34  contribution under section 422A.101, subdivision 3.  
 14.35     (4) For taxes payable in 1994 and thereafter, special 
 14.36  school district No. 1, Minneapolis, and independent school 
 15.1   district No. 625, St. Paul, may levy for the increase in the 
 15.2   employer retirement fund contributions, under Laws 1992, chapter 
 15.3   598, article 5, section 1.  Notwithstanding section 121.904, the 
 15.4   entire amount of this levy may be recognized as revenue for the 
 15.5   fiscal year in which the levy is certified.  This levy shall not 
 15.6   be considered in computing the aid reduction under section 
 15.7   124.155. 
 15.8      (5) If the employer retirement fund contributions under 
 15.9   section 354A.12, subdivision 2a, are increased for fiscal year 
 15.10  1994 or later fiscal years, special school district No. 1, 
 15.11  Minneapolis, and independent school district No. 625, St. Paul, 
 15.12  may levy in payable 1994 or later an amount equal to the amount 
 15.13  derived by applying the net increase in the employer retirement 
 15.14  fund contribution rate of the respective teacher retirement fund 
 15.15  association between fiscal year 1993 and the fiscal year 
 15.16  beginning in the year after the levy is certified to the total 
 15.17  covered payroll of the applicable teacher retirement fund 
 15.18  association.  Notwithstanding section 121.904, the entire amount 
 15.19  of this levy may be recognized as revenue for the fiscal year in 
 15.20  which the levy is certified.  This levy shall not be considered 
 15.21  in computing the aid reduction under section 124.155.  If an 
 15.22  applicable school district levies under this paragraph, they may 
 15.23  not levy under paragraph (4). 
 15.24     (6) In addition to the levy authorized under paragraph (5), 
 15.25  special school district No. 1, Minneapolis, may also levy 
 15.26  payable in 1997 or later an amount equal to the contributions 
 15.27  under section 423A.02, subdivision 3, and may also levy in 
 15.28  payable 1994 or later an amount equal to the state aid 
 15.29  contribution under section 354A.12, subdivision 3b.  Independent 
 15.30  school district No. 625, St. Paul, may levy payable in 1997 or 
 15.31  later an amount equal to the supplemental contributions under 
 15.32  section 423A.02, subdivision 3.  Notwithstanding section 
 15.33  121.904, the entire amount of these levies may be recognized as 
 15.34  revenue for the fiscal year in which the levy is certified.  
 15.35  These levies shall not be considered in computing the aid 
 15.36  reduction under section 124.155. 
 16.1      Sec. 15.  Minnesota Statutes 1996, section 124.918, 
 16.2   subdivision 6, is amended to read: 
 16.3      Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
 16.4   enacted in law changes the levy authority for a school district 
 16.5   or an intermediate school district for a fiscal year after the 
 16.6   levy for that fiscal year has been certified by the district 
 16.7   under section 275.07, the department of children, families, and 
 16.8   learning shall adjust the next levy certified by the district by 
 16.9   the amount of the change in levy authority for that fiscal year 
 16.10  resulting from the change.  Notwithstanding section 121.904, the 
 16.11  entire amount for fiscal year 1992 and 50 percent for fiscal 
 16.12  years thereafter of the levy adjustment must be recognized as 
 16.13  revenue in the fiscal year the levy is certified, if sufficient 
 16.14  levy resources are available under generally accepted accounting 
 16.15  principles in the district fund where the adjustment is to 
 16.16  occur.  School districts that do not have sufficient levy 
 16.17  resources available in the fund where the adjustment is to occur 
 16.18  shall recognize in the fiscal year the levy is certified an 
 16.19  amount equal to the levy resources available.  The remaining 
 16.20  adjustment amount shall be recognized as revenue in the fiscal 
 16.21  year after the levy is certified. 
 16.22     Sec. 16.  Minnesota Statutes 1996, section 124A.03, 
 16.23  subdivision 1c, is amended to read: 
 16.24     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 16.25  subdivision 1b, a district's referendum allowance must not 
 16.26  exceed the greater of:  
 16.27     (1) the district's referendum allowance for fiscal year 
 16.28  1994; or 
 16.29     (2) 25 percent of the formula allowance minus $300 for 
 16.30  fiscal year 1997 and later; or 
 16.31     (3) for a newly reorganized district created after July 1, 
 16.32  1994, the sum of the referendum revenue authority for the 
 16.33  reorganizing districts for the fiscal year preceding the 
 16.34  reorganization, divided by the sum of the actual pupil units of 
 16.35  the reorganizing districts for the fiscal year preceding the 
 16.36  reorganization. 
 17.1      Sec. 17.  Minnesota Statutes 1996, section 124A.22, 
 17.2   subdivision 13, is amended to read: 
 17.3      Subd. 13.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
 17.4   definitions in this subdivision apply to subdivisions 13a and 
 17.5   13b. 
 17.6      (a) "Sparsity index" for a school district means the 
 17.7   greater of .2 or the ratio of the square mile area of the school 
 17.8   district to the actual pupil units of the school district. 
 17.9      (b) "Density index" for a school district means the ratio 
 17.10  of the square mile area of the school district to the actual 
 17.11  pupil units of the school district.  However, the density index 
 17.12  for a school district cannot be greater than .2 or less than 
 17.13  .005. 
 17.14     (c) "Fiscal year 1996 base allowance" for a school district 
 17.15  means the result of the following computation: 
 17.16     (1) sum the following amounts: 
 17.17     (i) the fiscal year 1996 regular transportation revenue for 
 17.18  the school district according to section 124.225, subdivision 
 17.19  7d, paragraph (a), excluding the revenue attributable nonpublic 
 17.20  school pupils and to pupils with disabilities receiving special 
 17.21  transportation services; plus 
 17.22     (ii) the fiscal year 1996 nonregular transportation revenue 
 17.23  for the school district according to section 124.225, 
 17.24  subdivision 7d, paragraph (b), excluding the revenue for 
 17.25  desegregation transportation according to section 124.225, 
 17.26  subdivision 1, paragraph (c), clause (4), and the revenue 
 17.27  attributable to nonpublic school pupils and to pupils with 
 17.28  disabilities receiving special transportation services or board 
 17.29  and lodging; plus 
 17.30     (iii) the fiscal year 1996 excess transportation levy for 
 17.31  the school district according to section 124.226, subdivision 5, 
 17.32  excluding the levy attributable to nonpublic school pupils; plus 
 17.33     (iv) the fiscal year 1996 late activity bus levy for the 
 17.34  school district according to section 124.226, subdivision 9, 
 17.35  excluding the levy attributable to nonpublic school pupils; plus 
 17.36     (v) an amount equal to one-third of the fiscal year 1996 
 18.1   bus depreciation for the school district according to section 
 18.2   124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4).
 18.3      (2) divide the result in clause (1) by the school districts 
 18.4   district's 1995-1996 actual fund balance pupil units. 
 18.5      Sec. 18.  Laws 1992, chapter 499, article 7, section 31, is 
 18.6   amended to read: 
 18.7      Sec. 31.  [REPEALER.] 
 18.8      Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 18.9   124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 18.10  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 18.11  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 18.12  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 18.13  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 18.14  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 18.15  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 18.16  1999; Laws 1991, chapter 265, article 7, section 35, is repealed.
 18.17     Sec. 19.  Laws 1995, First Special Session chapter 3, 
 18.18  article 2, section 52, is amended to read: 
 18.19     Sec. 52.  [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 
 18.20     Minnesota Statutes 1994, sections 124.225, subdivisions 1, 
 18.21  3a, 7a, 7b, 7d, 7e, 8a, and 8k, 8m, and 10; and 124.226, 
 18.22  subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 
 18.23  payable in fiscal years 1997 and 1998 or to levies made in 1995 
 18.24  and 1996 for taxes payable in 1996 and 1997. 
 18.25     Sec. 20.  [REPEALER.] 
 18.26     Minnesota Statutes 1996, sections 121.904, subdivision 4d; 
 18.27  124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; and 
 18.28  124A.73, are repealed. 
 18.29     Sec. 21.  [EFFECTIVE DATE.] 
 18.30     Sections 2, 4, 9 to 15, 17, and 19 are effective the day 
 18.31  following final enactment. 
 18.32                             ARTICLE 2 
 18.33     Section 1.  Minnesota Statutes 1996, section 120.1701, 
 18.34  subdivision 3, is amended to read: 
 18.35     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 18.36  interagency coordinating council of at least 17, but not more 
 19.1   than 25 members is established, in compliance with Public Law 
 19.2   Number 102-119, section 682.  The members shall be appointed by 
 19.3   the governor.  Council members shall elect the council chair.  
 19.4   The representative of the commissioner of children, families, 
 19.5   and learning may not serve as the chair.  The council shall be 
 19.6   composed of at least five parents, including persons of color, 
 19.7   of children with disabilities under age 12, including at least 
 19.8   three parents of a child with a disability under age seven, five 
 19.9   representatives of public or private providers of services for 
 19.10  children with disabilities under age five, including a special 
 19.11  education director, county social service director, and a 
 19.12  community health services or public health nursing 
 19.13  administrator, one member of the senate, one member of the house 
 19.14  of representatives, one representative of teacher preparation 
 19.15  programs in early childhood-special education or other 
 19.16  preparation programs in early childhood intervention, at least 
 19.17  one representative of advocacy organizations for children with 
 19.18  disabilities under age five, one physician who cares for young 
 19.19  children with special health care needs, one representative each 
 19.20  from the commissioners of commerce, children, families, and 
 19.21  learning, health, human services, and economic security, and a 
 19.22  representative from Indian health services or a tribal council.  
 19.23  Section 15.059, subdivisions 2 to 5, apply to the council.  The 
 19.24  council shall meet at least quarterly.  
 19.25     The council shall address methods of implementing the state 
 19.26  policy of developing and implementing comprehensive, 
 19.27  coordinated, multidisciplinary interagency programs of early 
 19.28  intervention services for children with disabilities and their 
 19.29  families. 
 19.30     The duties of the council include recommending policies to 
 19.31  ensure a comprehensive and coordinated system of all state and 
 19.32  local agency services for children under age five with 
 19.33  disabilities and their families.  The policies must address how 
 19.34  to incorporate each agency's services into a unified state and 
 19.35  local system of multidisciplinary assessment practices, 
 19.36  individual intervention plans, comprehensive systems to find 
 20.1   children in need of services, methods to improve public 
 20.2   awareness, and assistance in determining the role of interagency 
 20.3   early intervention committees.  
 20.4      Each year by June 1, the council shall recommend to the 
 20.5   governor and the commissioners of children, families, and 
 20.6   learning, health, human services, commerce, and economic 
 20.7   security policies for a comprehensive and coordinated system. 
 20.8      Notwithstanding any other law to the contrary, the state 
 20.9   interagency coordinating council shall expire on June 30, 1997 
 20.10  1999. 
 20.11     Sec. 2.  Minnesota Statutes 1996, section 120.181, is 
 20.12  amended to read: 
 20.13     120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 20.14  EDUCATION AND TRANSPORTATION.] 
 20.15     The responsibility for providing instruction and 
 20.16  transportation for a pupil without a disability who has a 
 20.17  short-term or temporary physical or emotional illness or 
 20.18  disability, as determined by the standards of the state board, 
 20.19  and who is temporarily placed for care and treatment for that 
 20.20  illness or disability, shall be determined as provided in this 
 20.21  section.  
 20.22     (a) The school district of residence of the pupil shall be 
 20.23  the district in which the pupil's parent or guardian resides, or 
 20.24  when neither the pupil's parent or guardian resides within the 
 20.25  state and tuition has been denied, the district designated by 
 20.26  the commissioner of children, families, and learning if neither 
 20.27  parent nor guardian is living within the state.  
 20.28     (b) Prior to the placement of a pupil for care and 
 20.29  treatment, the district of residence shall be notified and 
 20.30  provided an opportunity to participate in the placement 
 20.31  decision.  When an immediate emergency placement is necessary 
 20.32  and time does not permit resident district participation in the 
 20.33  placement decision, the district in which the pupil is 
 20.34  temporarily placed, if different from the district of residence, 
 20.35  shall notify the district of residence of the emergency 
 20.36  placement within 15 days of the placement.  
 21.1      (c) When a pupil without a disability is temporarily placed 
 21.2   for care and treatment in a day program and the pupil continues 
 21.3   to live within the district of residence during the care and 
 21.4   treatment, the district of residence shall provide instruction 
 21.5   and necessary transportation for the pupil.  The district may 
 21.6   provide the instruction at a school within the district of 
 21.7   residence, at the pupil's residence, or in the case of a 
 21.8   placement outside of the resident district, in the district in 
 21.9   which the day treatment program is located by paying tuition to 
 21.10  that district.  The district of placement may contract with a 
 21.11  facility to provide instruction by teachers licensed by the 
 21.12  state board of teaching.  
 21.13     (d) When a pupil without a disability is temporarily placed 
 21.14  in a residential program for care and treatment, the district in 
 21.15  which the pupil is placed shall provide instruction for the 
 21.16  pupil and necessary transportation while the pupil is receiving 
 21.17  instruction, and in the case of a placement outside of the 
 21.18  district of residence, the nonresident district shall bill the 
 21.19  district of residence for the actual cost of providing the 
 21.20  instruction for the regular school year and for summer school, 
 21.21  excluding transportation costs.  When a pupil without a 
 21.22  disability is temporarily placed in a residential program 
 21.23  outside the district of residence, the administrator of the 
 21.24  court placing the pupil shall send timely written notice of the 
 21.25  placement to the district of residence.  The district of 
 21.26  placement may contract with a residential facility to provide 
 21.27  instruction by teachers licensed by the state board of teaching. 
 21.28     (e) The district of residence shall include the pupil in 
 21.29  its residence count of pupil units and pay tuition as provided 
 21.30  in section 124.18 to the district providing the instruction.  
 21.31  Transportation costs shall be paid by the district providing the 
 21.32  transportation and the state shall pay transportation aid to 
 21.33  that district.  For purposes of computing state transportation 
 21.34  aid, pupils governed by this subdivision shall be included in 
 21.35  the disabled transportation category.  
 21.36     Sec. 3.  Minnesota Statutes 1996, section 124.2613, 
 22.1   subdivision 3, is amended to read: 
 22.2      Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 22.3   shall rank all school sites with kindergarten programs that do 
 22.4   not exclusively serve students under section 120.17.  The 
 22.5   ranking must be from highest to lowest based on the site's free 
 22.6   and reduced lunch count as a percent of the fall enrollment 
 22.7   using the preceding October 1 enrollment data.  Once a school 
 22.8   site is calculated to be eligible, it remains eligible for the 
 22.9   duration of the pilot program.  For each school site, the 
 22.10  percentage used to calculate the ranking must be the greater of 
 22.11  (1) the percent of the fall kindergarten enrollment receiving 
 22.12  free and reduced lunch, or (2) the percent of the total fall 
 22.13  enrollment receiving free and reduced lunch.  The list of ranked 
 22.14  sites must be separated into the following geographic areas:  
 22.15  Minneapolis district, St. Paul district, suburban Twin Cities 
 22.16  districts in the seven-county metropolitan area, and school 
 22.17  districts in greater Minnesota. 
 22.18     (b) The commissioner shall establish a process and 
 22.19  timelines to qualify school sites for the next school year.  
 22.20  School sites must be qualified in each geographic area from the 
 22.21  list of ranked sites until the estimated revenue available for 
 22.22  this program has been allocated.  The total estimated revenue of 
 22.23  $3,500,000 must be distributed to qualified school sites in each 
 22.24  geographic area as follows:  25 percent for Minneapolis sites, 
 22.25  25 percent for St. Paul sites, 25 percent for suburban Twin 
 22.26  Cities sites, and 25 percent for greater Minnesota. 
 22.27     Sec. 4.  Minnesota Statutes 1996, section 124.2613, 
 22.28  subdivision 6, is amended to read: 
 22.29     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 22.30  district is eligible for first-grade preparedness revenue equal 
 22.31  to the basic formula allowance for that year times the number of 
 22.32  pupil units calculated according to paragraph (b) in each 
 22.33  qualifying school site.  If the first-grade preparedness revenue 
 22.34  is insufficient to fully fund the formula amounts, the 
 22.35  commissioner shall prorate the revenue provided to each 
 22.36  qualifying school site. 
 23.1      (b) A pupil enrolled in a half-day first-grade preparedness 
 23.2   program under this section is counted as .53 pupil units.  A 
 23.3   pupil enrolled in a full-day first-grade preparedness program 
 23.4   under this section is counted as a kindergarten pupil under 
 23.5   section 124.17, subdivision 1, plus an additional .53 pupil 
 23.6   units. 
 23.7      (c) This revenue must supplement and not replace 
 23.8   compensatory revenue that the district uses for the same or 
 23.9   similar purposes under chapter 124A. 
 23.10     (d) A pupil enrolled in the first grade preparedness 
 23.11  program at a qualifying school site is eligible for 
 23.12  transportation under section 123.39, subdivision 1.  
 23.13     (e) First grade preparedness revenue paid to a charter 
 23.14  school for which a school district is providing transportation 
 23.15  according to section 120.064, subdivision 15, shall be decreased 
 23.16  by an amount equal to the product of $170 times the pupil units 
 23.17  calculated according to paragraph (b).  This amount shall be 
 23.18  paid to the school district for transportation costs.  
 23.19     Sec. 5.  Minnesota Statutes 1996, section 124.273, 
 23.20  subdivision 1d, is amended to read: 
 23.21     Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 23.22  proficiency programs base revenue equals the sum of the 
 23.23  following amounts, computed using base year data:  
 23.24     (1) 68 percent of the salary of one full-time equivalent 
 23.25  teacher for each 40 pupils of limited English proficiency 
 23.26  enrolled, or 68 percent of the salary of one-half of a full-time 
 23.27  teacher in a district with 20 or fewer pupils of limited English 
 23.28  proficiency enrolled; and 
 23.29     (2) for supplies and equipment purchased or rented for use 
 23.30  in the instruction of pupils of limited English proficiency an 
 23.31  amount equal to 47 percent of the sum actually spent by the 
 23.32  district but not to exceed an average of $47 in any one school 
 23.33  year for each pupil of limited English proficiency receiving 
 23.34  instruction. 
 23.35     (b) For the purposes of this subdivision, a teacher 
 23.36  includes nonlicensed personnel who provide direct instruction to 
 24.1   students of limited English proficiency under the supervision of 
 24.2   a licensed teacher. 
 24.3      (c) If requested by a school district operating a limited 
 24.4   English proficiency program during the base year for less than 
 24.5   the full school year, the commissioner may adjust the base 
 24.6   revenue to reflect the expenditures that would have occurred 
 24.7   during the base year had the program been operated for the full 
 24.8   school year. 
 24.9      Sec. 6.  Minnesota Statutes 1996, section 124.3201, 
 24.10  subdivision 2, is amended to read: 
 24.11     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 24.12  education base revenue equals the sum of the following amounts 
 24.13  computed using base year data: 
 24.14     (1) 68 percent of the salary of each essential person 
 24.15  employed in the district's program for children with a 
 24.16  disability during the regular school year, whether the person is 
 24.17  employed by one or more districts; 
 24.18     (2) for the Minnesota state academy for the deaf or the 
 24.19  Minnesota state academy for the blind, 68 percent of the salary 
 24.20  of each instructional aide assigned to a child attending the 
 24.21  academy, if that aide is required by the child's individual 
 24.22  education plan; 
 24.23     (3) for special instruction and services provided to any 
 24.24  pupil by contracting with public, private, or voluntary agencies 
 24.25  other than school districts, in place of special instruction and 
 24.26  services provided by the district, 52 percent of the difference 
 24.27  between the amount of the contract and the basic revenue of the 
 24.28  district for that pupil for the fraction of the school day the 
 24.29  pupil receives services under the contract; 
 24.30     (4) for special instruction and services provided to any 
 24.31  pupil by contracting for services with public, private, or 
 24.32  voluntary agencies other than school districts, that are 
 24.33  supplementary to a full educational program provided by the 
 24.34  school district, 52 percent of the amount of the contract for 
 24.35  that pupil; 
 24.36     (5) for supplies and equipment purchased or rented for use 
 25.1   in the instruction of children with a disability an amount equal 
 25.2   to 47 percent of the sum actually expended by the district but 
 25.3   not to exceed an average of $47 in any one school year for each 
 25.4   child with a disability receiving instruction; and 
 25.5      (6) for fiscal years 1997 and later, special education base 
 25.6   revenue shall include amounts under clauses (1) to (5) for 
 25.7   special education summer programs provided during the base year 
 25.8   for that fiscal year.  
 25.9      (b) If requested by a school district operating a special 
 25.10  education program during the base year for less than the full 
 25.11  school year, the commissioner may adjust the base revenue to 
 25.12  reflect the expenditures that would have occurred during the 
 25.13  base year had the program been operated for the full school year.
 25.14     Sec. 7.  Minnesota Statutes 1996, section 124.3201, 
 25.15  subdivision 3, is amended to read: 
 25.16     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 25.17  fiscal year 1996 1997 and later, a district's adjusted special 
 25.18  education base revenue equals the district's special education 
 25.19  base revenue times the ratio of the district's average daily 
 25.20  membership for the current school year to the district's average 
 25.21  daily membership for the base year; plus the district's special 
 25.22  education tuition revenue under subdivision 2a and special 
 25.23  education court placement revenue under subdivision 2b. 
 25.24     Sec. 8.  Minnesota Statutes 1996, section 124.323, 
 25.25  subdivision 2, is amended to read: 
 25.26     Subd. 2.  [EXCESS COST REVENUE.] For 1996 1997 and later 
 25.27  fiscal years, a district's special education excess cost revenue 
 25.28  equals 70 the greatest of: 
 25.29     (a) 68 percent of the difference between (1) the district's 
 25.30  unreimbursed special education cost and (2) six percent for 
 25.31  fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
 25.32  years of the district's general revenue; 
 25.33     (b) 68 percent of the difference between (1) the increase 
 25.34  in the district's unreimbursed special education cost between 
 25.35  the base year as defined in section 124.3201, subdivision 1, and 
 25.36  the current year and (2) 1.6 percent of the district's general 
 26.1   revenue; or 
 26.2      (c) zero. 
 26.3      Sec. 9.  Minnesota Statutes 1996, section 124.48, 
 26.4   subdivision 3, is amended to read: 
 26.5      Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
 26.6   Indian scholarship committee is established.  Members shall be 
 26.7   appointed by the state board with the assistance of the Indian 
 26.8   affairs council as provided in section 3.922, subdivision 6.  
 26.9   Members shall be reimbursed for expenses as provided in section 
 26.10  15.059, subdivision 6.  The state board shall determine the 
 26.11  membership terms and duration of the committee, which expires no 
 26.12  later than June 30, 1997 2007.  The committee shall provide 
 26.13  advice to the state board in awarding scholarships to eligible 
 26.14  American Indian students and in administering the state board's 
 26.15  duties regarding awarding of American Indian post-secondary 
 26.16  preparation grants to school districts. 
 26.17     Sec. 10.  Minnesota Statutes 1996, section 124.481, is 
 26.18  amended to read: 
 26.19     124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 
 26.20     The state board of education, with the advice of the 
 26.21  Minnesota Indian scholarship committee, may make grants to 
 26.22  school districts or tribal grant or contract schools to support 
 26.23  post-secondary preparation for secondary pupils who are of 
 26.24  one-fourth or more Indian ancestry and who, in the opinion of 
 26.25  the superintendent, have the capabilities to benefit from higher 
 26.26  education.  Distribution of the grants must be in accordance 
 26.27  with a plan prepared by the state board, with the advice of the 
 26.28  Minnesota Indian scholarship committee, that describes the 
 26.29  objectives and methods of implementing the grant program, 
 26.30  including the manner in which grants will be distributed in 
 26.31  proportion to the geographical distribution of the Indian 
 26.32  population of the state. 
 26.33     Sec. 11.  Minnesota Statutes 1996, section 124.574, 
 26.34  subdivision 2d, is amended to read: 
 26.35     Subd. 2d.  [BASE REVENUE.] (a) The secondary vocational 
 26.36  disabled program base revenue equals the sum of the following 
 27.1   amounts computed using base year data: 
 27.2      (1) 68 percent of the salary of each essential licensed 
 27.3   person who provides direct instructional services to students 
 27.4   employed during that fiscal year for services rendered in that 
 27.5   district's secondary vocational education programs for children 
 27.6   with a disability; 
 27.7      (2) 47 percent of the costs of necessary equipment for 
 27.8   secondary vocational education programs for children with a 
 27.9   disability; 
 27.10     (3) 47 percent of the costs of necessary travel between 
 27.11  instructional sites by secondary vocational education teachers 
 27.12  of children with a disability but not including travel to and 
 27.13  from local, regional, district, state, or national vocational 
 27.14  student organization meetings; 
 27.15     (4) 47 percent of the costs of necessary supplies for 
 27.16  secondary vocational education programs for children with a 
 27.17  disability but not to exceed an average of $47 in any one school 
 27.18  year for each child with a disability receiving these services; 
 27.19     (5) for secondary vocational education programs for 
 27.20  children with disabilities provided by a contract approved by 
 27.21  the commissioner with public, private, or voluntary agencies 
 27.22  other than a Minnesota school district or cooperative center, in 
 27.23  place of programs provided by the district, 52 percent of the 
 27.24  difference between the amount of the contract and the basic 
 27.25  revenue of the district for that pupil for the fraction of the 
 27.26  school day the pupil receives services under the contract; 
 27.27     (6) for secondary vocational education programs for 
 27.28  children with disabilities provided by a contract approved by 
 27.29  the commissioner with public, private, or voluntary agencies 
 27.30  other than a Minnesota school district or cooperative center, 
 27.31  that are supplementary to a full educational program provided by 
 27.32  the school district, 52 percent of the amount of the contract; 
 27.33  and 
 27.34     (7) for a contract approved by the commissioner with 
 27.35  another Minnesota school district or cooperative center for 
 27.36  vocational evaluation services for children with a disability 
 28.1   for children that are not yet enrolled in grade 12, 52 percent 
 28.2   of the amount of the contract. 
 28.3      (b) If requested by a school district operating a secondary 
 28.4   vocational-disabled program during the base year for less than 
 28.5   the full school year, the commissioner may adjust the base 
 28.6   revenue to reflect the expenditures that would have occurred 
 28.7   during the base year had the program been operated for the full 
 28.8   year. 
 28.9      Sec. 12.  Minnesota Statutes 1996, section 126.531, 
 28.10  subdivision 3, is amended to read: 
 28.11     Subd. 3.  Each committee shall be reimbursed for expenses 
 28.12  according to section 15.059, subdivision 6.  The state board 
 28.13  shall determine the membership terms and the duration of each 
 28.14  committee, which expire no later than June 30, 1997 2007. 
 28.15     Sec. 13.  Minnesota Statutes 1996, section 126.82, is 
 28.16  amended to read: 
 28.17     126.82 [STATE MULTICULTURAL EDUCATION ADVISORY COMMITTEE.] 
 28.18     (a) The commissioner shall appoint a state multicultural 
 28.19  education advisory committee to advise the department and the 
 28.20  state board on multicultural education.  The committee must have 
 28.21  12 members and be composed of representatives from among the 
 28.22  following groups and community organizations:  African-American, 
 28.23  Asian-Pacific, Hispanic, and American Indian. 
 28.24     (b) The state committee shall provide information and 
 28.25  recommendations on: 
 28.26     (1) department procedures for reviewing and approving 
 28.27  district plans and disseminating information on multicultural 
 28.28  education; 
 28.29     (2) department procedures for improving inclusive education 
 28.30  plans, curriculum and instruction improvement plans, and 
 28.31  performance-based assessments; 
 28.32     (3) developing learner outcomes which are multicultural; 
 28.33  and 
 28.34     (4) other recommendations that will further inclusive, 
 28.35  multicultural education. 
 28.36     (c) The committee shall also participate in determining the 
 29.1   criteria for and awarding the grants established under Laws 
 29.2   1993, chapter 224, article 8, section 22, subdivision 8. 
 29.3      Sec. 14.  [REPEALER.] 
 29.4      Minnesota Statutes 1996, section 124.3201, subdivisions 2a 
 29.5   and 2b, are repealed. 
 29.6      Sec. 15.  [EFFECTIVE DATE.] 
 29.7      Sections 4, 7, 8, and 14 are effective retroactively to 
 29.8   July 1, 1996. 
 29.9                              ARTICLE 3 
 29.10     Section 1.  Minnesota Statutes 1996, section 121.11, is 
 29.11  amended by adding a subdivision to read: 
 29.12     Subd. 7e.  [GRADUATION EDUCATION DEVELOPMENT TESTS 
 29.13  RULES.] The state board may amend rules to reflect changes in 
 29.14  the national minimum standard score for passing the Graduation 
 29.15  Education Development (GED) tests. 
 29.16     Sec. 2.  Minnesota Statutes 1996, section 124C.498, 
 29.17  subdivision 2, is amended to read: 
 29.18     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
 29.19  extent money is available, the commissioner of children, 
 29.20  families, and learning may approve projects from applications 
 29.21  submitted under this section.  The grant money must be used only 
 29.22  to design, acquire, construct, remodel, improve, furnish, or 
 29.23  equip the building or site of a magnet school facility according 
 29.24  to contracts entered into within 15 24 months after the date on 
 29.25  which a grant is awarded. 
 29.26                             ARTICLE 4 
 29.27     Section 1.  Minnesota Statutes 1996, section 15.53, 
 29.28  subdivision 2, is amended to read: 
 29.29     Subd. 2.  [PERIOD OF ASSIGNMENT.] The period of individual 
 29.30  assignment or detail under an interchange program shall not 
 29.31  exceed 24 months, nor shall any person be assigned or detailed 
 29.32  for more than 24 months during any 36-month period, except when 
 29.33  the assignment or detail is made to coincide with an 
 29.34  unclassified appointment under section 15.06.  A school 
 29.35  district, a county, or a public health entity may make an 
 29.36  assignment for a period not to exceed five years, if the 
 30.1   assignment is made pursuant to section 121.8355, subdivision 6.  
 30.2   Details relating to any matter covered in sections 15.51 to 
 30.3   15.57 may be the subject of an agreement between the sending and 
 30.4   receiving agencies.  Elected officials shall not be assigned 
 30.5   from a sending agency nor detailed to a receiving agency. 
 30.6      Sec. 2.  Minnesota Statutes 1996, section 119A.13, 
 30.7   subdivision 2, is amended to read: 
 30.8      Subd. 2.  [ADVISORY COUNCIL.] An advisory council of 19 17 
 30.9   members is established under section 15.059.  The commissioners 
 30.10  of human services, public safety, health, and children, 
 30.11  families, and learning, and corrections shall each appoint one 
 30.12  member.  The subcommittee on committees of the senate and the 
 30.13  speaker of the house of representatives shall each appoint two 
 30.14  members of their respective bodies, one from each caucus.  The 
 30.15  governor shall appoint an additional ten members who shall 
 30.16  demonstrate knowledge in the area of child abuse prevention and 
 30.17  shall represent the demographic and geographic composition of 
 30.18  the state, and to the extent possible, represent the following 
 30.19  groups:  local government, parents, racial and ethnic minority 
 30.20  communities, the religious community, professional providers of 
 30.21  child abuse prevention and treatment services, and volunteers in 
 30.22  child abuse prevention and treatment services.  The council 
 30.23  shall advise and assist the commissioner in carrying out 
 30.24  sections 119A.10 to 119A.16.  The council does not expire as 
 30.25  provided by section 15.059, subdivision 5. 
 30.26     Sec. 3.  Minnesota Statutes 1996, section 119A.13, 
 30.27  subdivision 3, is amended to read: 
 30.28     Subd. 3.  [PLAN FOR DISBURSEMENT OF FUNDS.] By June 1, 
 30.29  1987, the commissioner, assisted by the advisory council, shall 
 30.30  develop a plan to disburse money from the trust fund.  In 
 30.31  developing the plan, the commissioner shall review prevention 
 30.32  programs.  The plan must ensure that all geographic areas of the 
 30.33  state have an equal opportunity to establish prevention programs 
 30.34  and receive trust fund money.  Biennially thereafter the 
 30.35  commissioner shall send the plan to the legislature and the 
 30.36  governor by January 1 of each odd-numbered year.  
 31.1      Sec. 4.  Minnesota Statutes 1996, section 119A.13, 
 31.2   subdivision 4, is amended to read: 
 31.3      Subd. 4.  [RESPONSIBILITIES OF THE COMMISSIONER.] (a) The 
 31.4   commissioner shall: 
 31.5      (1) provide for the coordination and exchange of 
 31.6   information on the establishment and maintenance of prevention 
 31.7   programs; 
 31.8      (2) develop and publish criteria for receiving trust fund 
 31.9   money by prevention programs; 
 31.10     (3) review, approve, and monitor the spending of trust fund 
 31.11  money by prevention programs; 
 31.12     (4) provide statewide educational and public informational 
 31.13  seminars to develop public awareness on preventing child abuse; 
 31.14  to encourage professional persons and groups to recognize 
 31.15  instances of child abuse and work to prevent them; to make 
 31.16  information on child abuse prevention available to the public 
 31.17  and to organizations and agencies; and to encourage the 
 31.18  development of prevention programs; 
 31.19     (5) establish a procedure for an annual, internal 
 31.20  evaluation of the functions, responsibilities, and performance 
 31.21  of the commissioner in carrying out Laws 1986, chapter 423.  In 
 31.22  a year in which the state plan is prepared, the evaluation must 
 31.23  be coordinated with the preparation of the state plan; 
 31.24     (6) provide technical assistance to local councils and 
 31.25  agencies working in the area of child abuse prevention; and 
 31.26     (7) accept and review grant applications beginning June 1, 
 31.27  1987. 
 31.28     (b) The commissioner shall recommend to the governor and 
 31.29  the legislature changes in state programs, statutes, policies, 
 31.30  budgets, and standards that will reduce the problems of child 
 31.31  abuse, improve coordination among state agencies that provide 
 31.32  prevention services, and improve the condition of children, 
 31.33  parents, or guardians in need of prevention program services. 
 31.34     Sec. 5.  Minnesota Statutes 1996, section 119A.14, is 
 31.35  amended to read: 
 31.36     119A.14 [LOCAL CHILD ABUSE PREVENTION COUNCILS.] 
 32.1      Subdivision 1.  [ESTABLISHMENT OF COUNCIL.] A child abuse 
 32.2   prevention council may be established in any county or group of 
 32.3   counties that was eligible to receive funds under Minnesota 
 32.4   Statutes 1986, section 145.917 as of January 1, 1986.  A council 
 32.5   organized in such a county or group of counties shall be 
 32.6   authorized by the commissioner to review programs seeking trust 
 32.7   fund money on finding that the council meets the criteria in 
 32.8   this subdivision: 
 32.9      (a) The council has submitted a plan for the prevention of 
 32.10  child abuse that includes a survey rank ordering of needed 
 32.11  programs and services, assesses the need for additional programs 
 32.12  or services, and demonstrates that standards and procedures have 
 32.13  been established to ensure that funds will be distributed and 
 32.14  used according to Laws 1986, chapter 423. 
 32.15     (b) A single-county council shall consist of: 
 32.16     (1) members of a multidisciplinary child protection team 
 32.17  which must be established under section 626.558 a minimum of 
 32.18  nine members with the majority consisting of members from the 
 32.19  community-at-large who do not represent service-providing 
 32.20  agencies.  These members shall represent the demographic and 
 32.21  geographic composition of the county and, to the extent 
 32.22  possible, represent the following groups:  parents, businesses, 
 32.23  racial, and ethnic minority communities, and the faith 
 32.24  communities; and 
 32.25     (2) if necessary, enough additional members appointed by 
 32.26  the county with knowledge in the area of child abuse prevention 
 32.27  so that a majority of the council is composed of members who do 
 32.28  not represent public agencies. 
 32.29     (c) A multicounty council shall be selected by composed of 
 32.30  the combined membership of those multidisciplinary teams which 
 32.31  have been established in the counties under section 626.558 and 
 32.32  shall consist of: persons in paragraph (b). 
 32.33     (1) one representative each from local human services 
 32.34  agencies, county attorney offices, county sheriff offices, and 
 32.35  health and education agencies, chosen from among the membership 
 32.36  of all the teams; 
 33.1      (2) one representative from any other public agency group 
 33.2   represented among the combined teams; and 
 33.3      (3) enough additional members from the public who have 
 33.4   knowledge in the area of child abuse so that a majority of the 
 33.5   council is composed of members who do not represent public 
 33.6   agencies. 
 33.7      (d) In any multicounty group eligible to establish a 
 33.8   council under this subdivision, at least 50 percent of the 
 33.9   counties must have established a multidisciplinary team under 
 33.10  section 626.558 before a council may be established. 
 33.11     Subd. 2.  [REVIEW BY COUNCIL.] To be eligible to receive a 
 33.12  grant from the trust fund, an applicant must have had 
 33.13  its program application reviewed by a child abuse prevention 
 33.14  council from the applicant's geographic area found by the 
 33.15  commissioner to meet the criteria in this section.  In reviewing 
 33.16  all such programs applications, the council shall consider the 
 33.17  extent to which the applicant meets the criteria and standards 
 33.18  in Laws 1986, chapter 423, and the degree to which the program 
 33.19  meets the needs of the geographic area.  The council shall 
 33.20  provide to the advisory council its comments and recommendations 
 33.21  concerning each program application reviewed and shall provide 
 33.22  the advisory council with its prioritization by rank ordering of 
 33.23  all programs applications reviewed. 
 33.24     Sec. 6.  Minnesota Statutes 1996, section 119A.15, 
 33.25  subdivision 2, is amended to read: 
 33.26     Subd. 2.  [MATCHING AND OTHER REQUIREMENTS.] Trust fund 
 33.27  money shall only be distributed to applicants that demonstrate 
 33.28  an ability to minimally match 40 percent of the amount of trust 
 33.29  fund money requested and whose proposals meet the other 
 33.30  criteria.  The matching requirement may be met through in-kind 
 33.31  donations.  In awarding grants, the commissioner shall consider 
 33.32  the extent to which the applicant has demonstrated a willingness 
 33.33  and ability to: 
 33.34     (1) continue the prevention program or service if trust 
 33.35  fund money is eliminated or reduced; and 
 33.36     (2) provide prevention program models and consultation to 
 34.1   other organizations and communities. 
 34.2      Sec. 7.  Minnesota Statutes 1996, section 119A.15, 
 34.3   subdivision 5, is amended to read: 
 34.4      Subd. 5.  [LOCAL COUNCIL AS RECIPIENT OF FUNDS.] The 
 34.5   commissioner may disburse funds to a local council on the same 
 34.6   basis as to any other applicant for community education 
 34.7   purposes, or as for administrative costs in carrying out Laws 
 34.8   1986, chapter 423, if all criteria and standards are met.  Funds 
 34.9   disbursed as administrative costs to a local council must not 
 34.10  exceed five percent of total funds disbursed to the area served 
 34.11  by the local council. 
 34.12     Sec. 8.  Minnesota Statutes 1996, section 119A.16, is 
 34.13  amended to read: 
 34.14     119A.16 [ACCEPTANCE OF FEDERAL FUNDS AND OTHER DONATIONS.] 
 34.15     The commissioner may accept federal money and gifts, 
 34.16  donations, and bequests for the purposes of Laws 1986, chapter 
 34.17  423.  Money so received and proceeds from the sale of 
 34.18  promotional items, minus sales promotional costs, must be 
 34.19  deposited in the trust fund and must be made available annually 
 34.20  to the commissioner. 
 34.21     Sec. 9.  Minnesota Statutes 1996, section 119B.01, is 
 34.22  amended by adding a subdivision to read: 
 34.23     Subd. 7a.  [DEPARTMENT.] "Department" means the department 
 34.24  of children, families, and learning. 
 34.25     Sec. 10.  Minnesota Statutes 1996, section 119B.01, 
 34.26  subdivision 8, is amended to read: 
 34.27     Subd. 8.  [EDUCATION PROGRAM.] "Education program" means 
 34.28  remedial or basic education or English as a second language 
 34.29  instruction, a program leading to a general equivalency or high 
 34.30  school diploma, post-secondary programs excluding 
 34.31  postbaccalaureate programs, and other education and training 
 34.32  needs as documented in an employability plan that is developed 
 34.33  by an employment and training service provider certified by the 
 34.34  commissioner of economic security or an individual designated by 
 34.35  the county to provide employment and training services.  The 
 34.36  employability plan must outline education and training needs of 
 35.1   a recipient, meet state requirements for employability plans, 
 35.2   meet the requirements of this chapter, and Minnesota Rules, 
 35.3   parts 9565.5000 3400.0010 to 9565.5200 3400.0230, and meet the 
 35.4   requirements of programs that provide federal reimbursement for 
 35.5   child care services.  
 35.6      Sec. 11.  Minnesota Statutes 1996, section 119B.01, 
 35.7   subdivision 9, is amended to read: 
 35.8      Subd. 9.  [EMPLOYMENT PROGRAM.] "Employment program" means 
 35.9   employment of recipients financially eligible for child care 
 35.10  assistance, preemployment activities, or other activities 
 35.11  approved in an employability plan that is developed by an 
 35.12  employment and training service provider certified by the 
 35.13  commissioner of economic security or an individual designated by 
 35.14  the county to provide employment and training services.  The 
 35.15  plans must meet the requirements of this chapter, Minnesota 
 35.16  Rules, parts 9565.5000 3400.0010 to 9565.5200 3400.0230, and 
 35.17  other programs that provide federal reimbursement for child care 
 35.18  services. 
 35.19     Sec. 12.  Minnesota Statutes 1996, section 119B.01, is 
 35.20  amended by adding a subdivision to read: 
 35.21     Subd. 12a.  [MFIP.] "MFIP" means Minnesota Family 
 35.22  Investment Program permitted under Public Law Number 104-193, 
 35.23  Title I, and shall be used as a synonym for AFDC for purposes of 
 35.24  child care assistance program eligibility under this chapter. 
 35.25     Sec. 13.  Minnesota Statutes 1996, section 119B.01, 
 35.26  subdivision 16, is amended to read: 
 35.27     Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
 35.28  families" means families who lose have received AFDC for at 
 35.29  least three of the last six months before losing eligibility for 
 35.30  AFDC due to increased hours of employment, increased income from 
 35.31  employment or child or spousal support, or the loss of income 
 35.32  disregards due to time limitations, as provided under Public Law 
 35.33  Number 100-485.  
 35.34     Sec. 14.  Minnesota Statutes 1996, section 119B.01, 
 35.35  subdivision 17, is amended to read: 
 35.36     Subd. 17.  [CHILD CARE FUND.] "Child care fund" means a 
 36.1   program under this chapter providing:  
 36.2      (1) financial assistance for child care to parents engaged 
 36.3   in employment or education and training leading to employment; 
 36.4   and 
 36.5      (2) grants to develop, expand, and improve the access and 
 36.6   availability of child care services statewide. 
 36.7      Sec. 15.  Minnesota Statutes 1996, section 119B.02, is 
 36.8   amended to read: 
 36.9      119B.02 [DUTIES OF COMMISSIONER.] 
 36.10     The commissioner shall develop standards for county and 
 36.11  human services boards to provide child care services to enable 
 36.12  eligible families to participate in employment, training, or 
 36.13  education programs.  Within the limits of available 
 36.14  appropriations, the commissioner shall distribute money to 
 36.15  counties to reduce the costs of child care for eligible 
 36.16  families.  The commissioner shall adopt rules to govern the 
 36.17  program in accordance with this section.  The rules must 
 36.18  establish a sliding schedule of fees for parents receiving child 
 36.19  care services.  The rules shall provide that funds received as a 
 36.20  lump sum payment of child support arrearages shall not be 
 36.21  counted as income to a family in the month received but shall be 
 36.22  prorated over the 12 months following receipt and added to the 
 36.23  family income during those months.  In the rules adopted under 
 36.24  this section, county and human services boards shall be 
 36.25  authorized to establish policies for payment of child care 
 36.26  spaces for absent children, when the payment is required by the 
 36.27  child's regular provider.  The rules shall not set a maximum 
 36.28  number of days for which absence payments can be made, but 
 36.29  instead shall direct the county agency to set limits and pay for 
 36.30  absences according to the prevailing market practice in the 
 36.31  county.  County policies for payment of absences shall be 
 36.32  subject to the approval of the commissioner.  The commissioner 
 36.33  shall maximize the use of federal money in section 256.736 and 
 36.34  other programs that provide federal or state reimbursement for 
 36.35  child care services for recipients of aid to low-income families 
 36.36  with dependent children who are in education, training, job 
 37.1   search, or other activities allowed under those programs.  Money 
 37.2   appropriated under this section must be coordinated with the 
 37.3   programs that provide federal reimbursement for child care 
 37.4   services to accomplish this purpose.  Federal reimbursement 
 37.5   obtained must be allocated to the county that spent money for 
 37.6   child care that is federally reimbursable under programs that 
 37.7   provide federal reimbursement for child care services.  The 
 37.8   counties shall use the federal money to expand child care 
 37.9   services.  The commissioner may adopt rules under chapter 14 to 
 37.10  implement and coordinate federal program requirements. 
 37.11     Sec. 16.  Minnesota Statutes 1996, section 119B.03, 
 37.12  subdivision 3, is amended to read: 
 37.13     Subd. 3.  [ELIGIBLE RECIPIENTS.] Families that meet the 
 37.14  eligibility requirements under sections 119B.09, except AFDC 
 37.15  recipients, MFIP recipients, and transition year families, and 
 37.16  119B.10 are eligible for child care assistance under the basic 
 37.17  sliding fee program.  Families enrolled in the basic sliding fee 
 37.18  program as of July 1, 1990, shall be continued until they are no 
 37.19  longer eligible.  Counties may restrict movement between 
 37.20  authorized activities as a condition of continued eligibility.  
 37.21  Counties shall make vendor payments to the child care provider 
 37.22  or pay the parent directly for eligible child care expenses on a 
 37.23  reimbursement basis.  Child care assistance provided through the 
 37.24  child care fund is considered assistance to the parent. 
 37.25     Sec. 17.  Minnesota Statutes 1996, section 119B.03, 
 37.26  subdivision 5, is amended to read: 
 37.27     Subd. 5.  [REVIEW OF USE OF FUNDS; REALLOCATION.] (a) After 
 37.28  each quarter, the commissioner shall review the use of basic 
 37.29  sliding fee program allocations by county.  The commissioner may 
 37.30  reallocate unexpended or unencumbered money among those counties 
 37.31  who have expended their full allocation or may allow a county to 
 37.32  expend up to ten percent of its allocation in the subsequent 
 37.33  allocation period.  
 37.34     (b) Any unexpended money state and federal appropriations 
 37.35  from the first year of the biennium may be carried forward to 
 37.36  the second year of the biennium.  
 38.1      Sec. 18.  Minnesota Statutes 1996, section 119B.03, 
 38.2   subdivision 8, is amended to read: 
 38.3      Subd. 8.  [GUARANTEED FLOOR.] (a) Beginning January 1, 
 38.4   1996, each county's guaranteed floor shall equal 90 percent of 
 38.5   the allocation received in the preceding calendar year.  For the 
 38.6   calendar year 1996 allocation, the preceding calendar year shall 
 38.7   be considered to be double the six-month allocation as provided 
 38.8   for in subdivision 7.  
 38.9      (b) When the amount of funds available for allocation is 
 38.10  less than the amount available in the previous year, each 
 38.11  county's previous year allocation shall be reduced in proportion 
 38.12  to the reduction in the statewide funding, for the purpose of 
 38.13  establishing the guaranteed floor.  
 38.14     Sec. 19.  Minnesota Statutes 1996, section 119B.04, is 
 38.15  amended to read: 
 38.16     119B.04 [FEDERAL AT-RISK CHILD CARE PROGRAM AND DEVELOPMENT 
 38.17  FUND.] 
 38.18     Subdivision 1.  [COMMISSIONER TO ADMINISTER PROGRAM.] The 
 38.19  commissioner of children, families, and learning is authorized 
 38.20  and directed to receive, administer, and expend funds available 
 38.21  under the at-risk child care program and development fund under 
 38.22  Public Law Number 101-508 (1) 104-193, Title I.  
 38.23     Subd. 2.  [RULEMAKING AUTHORITY.] The commissioner may 
 38.24  adopt rules under chapter 14 to administer the at-risk child 
 38.25  care program and development fund.  
 38.26     Sec. 20.  Minnesota Statutes 1996, section 119B.05, 
 38.27  subdivision 1, is amended to read: 
 38.28     Subdivision 1.  [ELIGIBLE RECIPIENTS.] Families eligible 
 38.29  for guaranteed child care assistance under the AFDC child care 
 38.30  program are: 
 38.31     (1) persons receiving services under section 256.736; 
 38.32     (2) AFDC recipients who are employed or in job search and 
 38.33  meet the requirements of section 119B.10; 
 38.34     (3) persons who are members of transition year families 
 38.35  under section 119B.01, subdivision 16; 
 38.36     (4) members of the control group for the STRIDE evaluation 
 39.1   conducted by the Manpower Demonstration Research Corporation; 
 39.2   and 
 39.3      (5) AFDC caretakers who are participating in the non-STRIDE 
 39.4   AFDC child care program; and 
 39.5      (6) MFIP families who are participating in employment and 
 39.6   training activities as required in their family support 
 39.7   agreement. 
 39.8      Sec. 21.  Minnesota Statutes 1996, section 119B.05, 
 39.9   subdivision 5, is amended to read: 
 39.10     Subd. 5.  [FEDERAL REIMBURSEMENT.] Counties shall maximize 
 39.11  their federal reimbursement under Public Law Number 100-485 or 
 39.12  other federal reimbursement programs for money spent for persons 
 39.13  eligible under this chapter.  The commissioner shall allocate 
 39.14  any federal earnings to the county to be used to expand child 
 39.15  care services under this chapter. 
 39.16     Sec. 22.  Minnesota Statutes 1996, section 119B.05, 
 39.17  subdivision 6, is amended to read: 
 39.18     Subd. 6.  [ACCESS CHILD CARE PROGRAM.] (a) Starting one 
 39.19  month after April 30, 1992, the commissioner shall reimburse 
 39.20  eligible expenditures for 2,000 family slots for AFDC caretakers 
 39.21  not eligible for services under section 256.736, who are engaged 
 39.22  in an authorized educational or job search program.  Each county 
 39.23  will receive a number of family slots based on the county's 
 39.24  proportion of the AFDC caseload.  A county must receive at least 
 39.25  two family slots.  Eligibility and reimbursement are limited to 
 39.26  the number of family slots allocated to each county.  County 
 39.27  agencies shall authorize an educational plan for each student 
 39.28  and may prioritize families eligible for this program in their 
 39.29  child care fund plan upon approval of the commissioner.  
 39.30     (b) Persons eligible for but unable to participate in the 
 39.31  JOBS (STRIDE) program because of a waiting list may be accepted 
 39.32  as a new participant, or continue to participate in the ACCESS 
 39.33  child care program if a slot is available as long as all other 
 39.34  eligibility factors are met.  Child care assistance must 
 39.35  continue under the ACCESS child care program until the 
 39.36  participant loses eligibility or is enrolled in project STRIDE. 
 40.1      (c)(1) Effective July 1, 1995, the commissioner shall 
 40.2   reclaim 90 percent of the vacant slots in each county and 
 40.3   distribute those slots to counties with waiting lists of persons 
 40.4   eligible for the ACCESS child care program.  The slots must be 
 40.5   distributed to eligible families based on the July 1, 1995, 
 40.6   waiting list placement date, first come, first served basis. 
 40.7      (2) ACCESS child care slots remaining after the waiting 
 40.8   list under clause (1) has been eliminated must be distributed to 
 40.9   eligible families on a first come, first served basis, based on 
 40.10  the client's date of request. 
 40.11     (3) The county must notify the commissioner when an ACCESS 
 40.12  slot in the county becomes available.  Notification by the 
 40.13  county must be within five calendar days of the effective date 
 40.14  of the termination of the ACCESS child care services.  The 
 40.15  resulting vacant slot must be returned to the department of 
 40.16  children, families, and learning.  The slot must then be 
 40.17  redistributed under clause (2). 
 40.18     (4) The commissioner shall consult with the task force on 
 40.19  child care and make recommendations to the 1996 legislature for 
 40.20  future distribution of the ACCESS slots under this 
 40.21  paragraph. Effective July 1, 1997, no new applicants shall be 
 40.22  accepted in the ACCESS program.  Current ACCESS participants 
 40.23  shall continue to receive assistance until July 1, 1998, if all 
 40.24  other conditions of eligibility are met. 
 40.25     Sec. 23.  Minnesota Statutes 1996, section 119B.05, is 
 40.26  amended by adding a subdivision to read: 
 40.27     Subd. 7.  [APPROPRIATION CARRYFORWARD.] Any unexpended 
 40.28  state and federal appropriations from the first year of the 
 40.29  biennium may be carried forward to the second year of the 
 40.30  biennium. 
 40.31     Sec. 24.  Minnesota Statutes 1996, section 119B.07, is 
 40.32  amended to read: 
 40.33     119B.07 [USE OF MONEY.] 
 40.34     Money for persons listed in sections 119B.03, subdivision 
 40.35  3, and 119B.05, subdivision 1, shall be used to reduce the costs 
 40.36  of child care for students, including the costs of child care 
 41.1   for students while employed if enrolled in an eligible education 
 41.2   program at the same time and making satisfactory progress 
 41.3   towards completion of the program.  Counties may not limit the 
 41.4   duration of child care subsidies for a person in an employment 
 41.5   or educational program, except when the person is found to be 
 41.6   ineligible under the child care fund eligibility standards.  Any 
 41.7   limitation must be based on a person's employability plan in the 
 41.8   case of an AFDC recipient, and county policies included in the 
 41.9   child care allocation plan.  The maximum length of time a 
 41.10  student is eligible for child care assistance under the child 
 41.11  care fund for education and training shall be the equivalent of 
 41.12  24 months of full-time education, excluding basic or remedial 
 41.13  education programs needed to prepare for post-secondary 
 41.14  education or employment.  Education programs that are less than 
 41.15  full time and completed with employment programs shall be 
 41.16  considered half-time education.  Time limitations for child care 
 41.17  assistance, as specified in Minnesota Rules, parts 9565.5000 to 
 41.18  9565.5200, do not apply to basic or remedial educational 
 41.19  programs needed to prepare for post-secondary education or 
 41.20  employment.  These programs include:  high school, general 
 41.21  equivalency diploma, and English as a second language.  Programs 
 41.22  exempt from this time limit must not run concurrently with a 
 41.23  post-secondary program.  High school students who are 
 41.24  participating in a post-secondary options program and who 
 41.25  receive a high school diploma issued by the school district are 
 41.26  exempt from the time limitations while pursuing a high school 
 41.27  diploma.  Financially eligible students who have received child 
 41.28  care assistance for one academic year shall be provided child 
 41.29  care assistance in the following academic year if funds 
 41.30  allocated under sections 119B.03 and 119B.05 are available.  If 
 41.31  an AFDC recipient who is receiving AFDC child care assistance 
 41.32  under this chapter moves to another county, continues to 
 41.33  participate in educational or training programs authorized in 
 41.34  their employability development plans, and continues to be 
 41.35  eligible for AFDC child care assistance under this chapter, the 
 41.36  AFDC caretaker must receive continued child care assistance from 
 42.1   the county responsible for their current employability 
 42.2   development plan, without interruption. 
 42.3      Sec. 25.  Minnesota Statutes 1996, section 119B.08, 
 42.4   subdivision 1, is amended to read: 
 42.5      Subdivision 1.  [QUARTERLY REPORTS.] The commissioner shall 
 42.6   specify requirements for reports, including quarterly fiscal 
 42.7   reports, according to under the same authority as provided to 
 42.8   the commissioner of human services in section 256.01, 
 42.9   subdivision 2, paragraph (17).  Counties shall submit on forms 
 42.10  prescribed by the commissioner a quarterly financial and program 
 42.11  activity report.  The failure to submit a complete report by the 
 42.12  end of the quarter in which the report is due may result in a 
 42.13  reduction of child care fund allocations equal to the next 
 42.14  quarter's allocation.  The financial and program activity report 
 42.15  must include: 
 42.16     (1) a detailed accounting of the expenditures and revenues 
 42.17  for the program during the preceding quarter by funding source 
 42.18  and by eligibility group; 
 42.19     (2) a description of activities and concomitant 
 42.20  expenditures that are federally reimbursable under federal 
 42.21  reimbursement programs; 
 42.22     (3) a description of activities and concomitant 
 42.23  expenditures of child care money; 
 42.24     (4) information on money encumbered at the quarter's end 
 42.25  but not yet reimbursable, for use in adjusting allocations as 
 42.26  provided in section 119B.03, subdivision 5; and 
 42.27     (5) other data the commissioner considers necessary to 
 42.28  account for the program or to evaluate its effectiveness in 
 42.29  preventing and reducing participants' dependence on public 
 42.30  assistance and in providing other benefits, including 
 42.31  improvement in the care provided to children.  
 42.32     Sec. 26.  Minnesota Statutes 1996, section 119B.08, 
 42.33  subdivision 3, is amended to read: 
 42.34     Subd. 3.  [CHILD CARE FUND PLAN.] Effective January 1, 
 42.35  1992, the county will include the plan required under this 
 42.36  subdivision in its biennial community social services plan 
 43.1   required in this section, for the group described in section 
 43.2   256E.03, subdivision 2, paragraph (h).  For the period July 1, 
 43.3   1989, to December 31, 1991, the county shall submit separate 
 43.4   child care fund plans required under this subdivision for the 
 43.5   periods July 1, 1989, to June 30, 1990; and July 1, 1990, to 
 43.6   December 31, 1991.  The commissioner shall establish the dates 
 43.7   by which the county must submit these plans.  The county and 
 43.8   designated administering agency shall submit to the commissioner 
 43.9   an annual child care fund allocation plan.  The plan shall 
 43.10  include: 
 43.11     (1) a narrative of the total program for child care 
 43.12  services, including all policies and procedures that affect 
 43.13  eligible families and are used to administer the child care 
 43.14  funds; 
 43.15     (2) the number of families that requested a child care 
 43.16  subsidy in the previous year, the number of families receiving 
 43.17  child care assistance, the number of families on a waiting list, 
 43.18  and the number of families projected to be served during the 
 43.19  fiscal year; 
 43.20     (3) the methods used by the county to inform eligible 
 43.21  groups of the availability of child care assistance and related 
 43.22  services; 
 43.23     (4) (3) the provider rates paid for all children by 
 43.24  provider type; 
 43.25     (5) (4) the county prioritization policy for all eligible 
 43.26  groups under the basic sliding fee program and AFDC child care 
 43.27  program; and 
 43.28     (6) a report of all funds available to be used for child 
 43.29  care assistance, including demonstration of compliance with the 
 43.30  maintenance of funding effort required under section 119B.11; 
 43.31  and 
 43.32     (7) (5) other information as requested by the department to 
 43.33  ensure compliance with the child care fund statutes and rules 
 43.34  promulgated by the commissioner. 
 43.35     The commissioner shall notify counties within 60 days of 
 43.36  the date the plan is submitted whether the plan is approved or 
 44.1   the corrections or information needed to approve the plan.  The 
 44.2   commissioner shall withhold a county's allocation until it has 
 44.3   an approved plan.  Plans not approved by the end of the second 
 44.4   quarter after the plan is due may result in a 25 percent 
 44.5   reduction in allocation.  Plans not approved by the end of the 
 44.6   third quarter after the plan is due may result in a 100 percent 
 44.7   reduction in the allocation to the county.  Counties are to 
 44.8   maintain services despite any reduction in their allocation due 
 44.9   to plans not being approved. 
 44.10     Sec. 27.  Minnesota Statutes 1996, section 119B.09, 
 44.11  subdivision 1, is amended to read: 
 44.12     Subdivision 1.  [GENERAL ELIGIBILITY FACTORS REQUIREMENTS 
 44.13  FOR ALL APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care 
 44.14  services must be available to families who need child care to 
 44.15  find or keep employment or to obtain the training or education 
 44.16  necessary to find employment and who: 
 44.17     (a) (1) meet the requirements of section 119B.05, receive 
 44.18  aid to families with dependent children, and are receiving 
 44.19  employment and training services under section 256.736 or the 
 44.20  state welfare reform program under Public Law Number 104-193, 
 44.21  Title I; 
 44.22     (b) (2) have household income below the eligibility levels 
 44.23  for aid to families with dependent children; or 
 44.24     (c) (3) have household income within a range established by 
 44.25  the commissioner. 
 44.26     (d) (b) Child care services for the families receiving aid 
 44.27  to families with dependent children must be made available as 
 44.28  in-kind services, to cover any difference between the actual 
 44.29  cost and the amount disregarded under the aid to families with 
 44.30  dependent children program.  Child care services to families 
 44.31  whose incomes are below the threshold of eligibility for aid to 
 44.32  families with dependent children, but are not AFDC caretakers, 
 44.33  must be made available with the minimum same copayment required 
 44.34  by federal law of AFDC caretakers. 
 44.35     (c) All applicants for child care assistance and families 
 44.36  currently receiving child care assistance shall be assisted and 
 45.1   required to cooperate in establishment of paternity and 
 45.2   enforcement of child support obligations as a condition of 
 45.3   program eligibility. 
 45.4      Sec. 28.  Minnesota Statutes 1996, section 119B.09, 
 45.5   subdivision 2, is amended to read: 
 45.6      Subd. 2.  [SLIDING FEE.] Child care services to families 
 45.7   with incomes in the commissioner's established range must be 
 45.8   made available on a sliding fee basis.  The lower limit of the 
 45.9   sliding fee range must be the eligibility limit for aid to 
 45.10  families with dependent children.  The upper limit of the range 
 45.11  must be neither less than 70 percent nor more than 90 percent of 
 45.12  the state median income for a family of four, adjusted for 
 45.13  family size.  
 45.14     Sec. 29.  Minnesota Statutes 1996, section 119B.09, is 
 45.15  amended by adding a subdivision to read: 
 45.16     Subd. 6.  [MAXIMUM CHILD CARE ASSISTANCE.] The maximum 
 45.17  amount of child care assistance a local agency may authorize in 
 45.18  a two-week period is 120 hours per child. 
 45.19     Sec. 30.  Minnesota Statutes 1996, section 119B.09, is 
 45.20  amended by adding a subdivision to read: 
 45.21     Subd. 7.  [ELIGIBILITY FOR ASSISTANCE.] The date of 
 45.22  eligibility for child care assistance under chapter 119B is the 
 45.23  later of the date the application was signed; the beginning date 
 45.24  of employment, education, or training; the date a determination 
 45.25  has been made that the applicant is a participant in employment 
 45.26  and training programs under Minnesota Rules, part 3400.0080, 
 45.27  subpart 2a, section 256.736, or the state welfare reform program 
 45.28  under Public Law Number 104-193, Title I.  Payment of child care 
 45.29  assistance for employed persons on AFDC is effective the date of 
 45.30  employment or the date of AFDC eligibility, whichever is later.  
 45.31  Payment of child care assistance for transition year child care 
 45.32  shall be made retroactive to the date of eligibility for 
 45.33  transition year child care. 
 45.34     Sec. 31.  Minnesota Statutes 1996, section 119B.10, 
 45.35  subdivision 1, is amended to read: 
 45.36     Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
 46.1   RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
 46.2   and who are eligible for assistance under this section are 
 46.3   eligible to receive up to 240 hours of child care assistance per 
 46.4   calendar year.  
 46.5      (b) Employed persons who work at least an average of ten 20 
 46.6   hours a week and receive at least a minimum wage for all hours 
 46.7   worked are eligible for continued child care assistance.  Child 
 46.8   care assistance during employment shall be authorized as 
 46.9   provided in paragraphs (c) and (d). 
 46.10     (c) When the caregiver works for an hourly wage and the 
 46.11  hourly wage is equal to or greater than the applicable minimum 
 46.12  wage, child care assistance shall be provided for the actual 
 46.13  hours of employment, break, and meal time during the employment 
 46.14  and travel time up to two hours per day. 
 46.15     (d) When the caregiver does not work for an hourly wage, 
 46.16  child care assistance shall be provided for the lesser of: 
 46.17     (1) the amount of child care determined by dividing gross 
 46.18  earned income by the applicable minimum wage, up to one hour 
 46.19  every eight hours for meals and break time, plus up to two hours 
 46.20  per day for travel time; or 
 46.21     (2) the amount of child care equal to the actual amount of 
 46.22  child care used during employment, including break and meal time 
 46.23  during employment, and travel time up to two hours per day. 
 46.24     Sec. 32.  Minnesota Statutes 1996, section 119B.11, 
 46.25  subdivision 1, is amended to read: 
 46.26     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
 46.27  July 1, 1995 1997, in addition to payments from basic sliding 
 46.28  fee child care program participants, counties each county shall 
 46.29  contribute from county tax or other sources at the a fixed local 
 46.30  match percentage calculated according to subdivision 2 equal to 
 46.31  its calendar year 1996 required county contribution reduced by 
 46.32  the administrative funding loss that would have occurred in 
 46.33  state fiscal year 1996 under section 119B.15.  The commissioner 
 46.34  shall recover funds from the county as necessary to bring county 
 46.35  expenditures into compliance with this subdivision. 
 46.36     Sec. 33.  Minnesota Statutes 1996, section 119B.13, 
 47.1   subdivision 1, is amended to read: 
 47.2      Subdivision 1.  [SUBSIDY RESTRICTIONS.] Effective July 1, 
 47.3   1991, the maximum rate paid for child care assistance under the 
 47.4   child care fund is the maximum rate eligible for federal 
 47.5   reimbursement may not exceed the 75th percentile rate for 
 47.6   like-care arrangements in the county as surveyed by the 
 47.7   commissioner.  A rate which includes a provider bonus paid under 
 47.8   subdivision 2 or a special needs rate paid under subdivision 3 
 47.9   may be in excess of the maximum rate allowed under this 
 47.10  subdivision.  The department of children, families, and learning 
 47.11  shall monitor the effect of this paragraph on provider rates.  
 47.12  The county shall pay the provider's full charges for every child 
 47.13  in care up to the maximum established.  The commissioner shall 
 47.14  determine the maximum rate for each type of care, including 
 47.15  special needs and handicapped care.  
 47.16     When the provider charge is greater than the maximum 
 47.17  provider rate allowed, the parent is responsible for payment of 
 47.18  the difference in the rates in addition to any family copayment 
 47.19  fee. 
 47.20     Sec. 34.  Minnesota Statutes 1996, section 119B.15, is 
 47.21  amended to read: 
 47.22     119B.15 [ADMINISTRATIVE EXPENSES.] 
 47.23     The commissioner shall use up to one-eleventh 1/21 of the 
 47.24  state and federal funds available for the basic sliding fee 
 47.25  program and 1/21 of the state and federal funds available for 
 47.26  the AFDC child care program for payments to counties for 
 47.27  administrative expenses.  
 47.28     Sec. 35.  Minnesota Statutes 1996, section 121.8355, 
 47.29  subdivision 1, is amended to read: 
 47.30     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
 47.31  a family services collaborative, a minimum of one school 
 47.32  district, one county, one public health entity, one community 
 47.33  action agency as defined in section 268.53, and one Head Start 
 47.34  grantee if the community action agency is not the designated 
 47.35  federal grantee for the Head Start program must agree in writing 
 47.36  to provide coordinated family services and commit resources to 
 48.1   an integrated fund.  Collaboratives are expected to have broad 
 48.2   community representation, which may include other local 
 48.3   providers, including additional school districts, counties, and 
 48.4   public health entities, other municipalities, public libraries, 
 48.5   existing culturally specific community organizations, tribal 
 48.6   entities, local health organizations, private and nonprofit 
 48.7   service providers, child care providers, local foundations, 
 48.8   community-based service groups, businesses, local transit 
 48.9   authorities or other transportation providers, community action 
 48.10  agencies under section 268.53, senior citizen volunteer 
 48.11  organizations, parent organizations, parents, and sectarian 
 48.12  organizations that provide nonsectarian services. 
 48.13     (b) Community-based collaboratives composed of 
 48.14  representatives of schools, local businesses, local units of 
 48.15  government, parents, students, clergy, health and social 
 48.16  services providers, youth service organizations, and existing 
 48.17  culturally specific community organizations may plan and develop 
 48.18  services for children and youth.  A community-based 
 48.19  collaborative must agree to collaborate with county, school 
 48.20  district, community action, and public health entities.  Their 
 48.21  services may include opportunities for children or youth to 
 48.22  improve child health and development, reduce barriers to 
 48.23  adequate school performance, improve family functioning, provide 
 48.24  community service, enhance self esteem, and develop general 
 48.25  employment skills.  
 48.26     (c) Members of the governing bodies of political 
 48.27  subdivisions involved in the establishment of a family services 
 48.28  collaborative shall select representatives of the 
 48.29  nongovernmental entities listed in paragraph (a) to serve on the 
 48.30  governing board of a collaborative.  The governing body members 
 48.31  of the political subdivisions shall select one or more 
 48.32  representatives of the nongovernmental entities within the 
 48.33  family service collaborative. 
 48.34     Sec. 36.  Minnesota Statutes 1996, section 124.2615, 
 48.35  subdivision 1, is amended to read: 
 48.36     Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
 49.1   15, 1992, for the 1991-1992 school year or by January 1 of May 1 
 49.2   preceding subsequent school years, a district must submit to the 
 49.3   commissioners of children, families, and learning, and health, 
 49.4   human services, and economic security:  
 49.5      (1) a description of the services to be provided; 
 49.6      (2) a plan to ensure children at greatest risk receive 
 49.7   appropriate services; 
 49.8      (3) a description of procedures and methods to be used to 
 49.9   coordinate public and private resources to maximize use of 
 49.10  existing community resources, including school districts, health 
 49.11  care facilities, government agencies, neighborhood 
 49.12  organizations, and other resources knowledgeable in early 
 49.13  childhood development; 
 49.14     (4) comments about the district's proposed program by the 
 49.15  advisory council required by section 121.831, subdivision 7; and 
 49.16     (5) agreements with all participating service providers.  
 49.17     Each commissioner may review and comment on the program, 
 49.18  and make recommendations to the commissioner of children, 
 49.19  families, and learning, within 30 days of receiving the plan. 
 49.20     Sec. 37.  Minnesota Statutes 1996, section 124.2615, 
 49.21  subdivision 2, is amended to read: 
 49.22     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
 49.23  receive learning readiness aid if the program plan as required 
 49.24  by subdivision 1 has been approved by the commissioner of 
 49.25  children, families, and learning.  The aid is equal to: 
 49.26     (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
 49.27  times the number of eligible four-year old children residing in 
 49.28  the district, as determined according to section 124.2711, 
 49.29  subdivision 2; plus 
 49.30     (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
 49.31  times the result of; 
 49.32     (3) the ratio of the number of pupils enrolled in the 
 49.33  school district from families eligible for the free or reduced 
 49.34  school lunch program to the total number of pupils enrolled in 
 49.35  the school district; times 
 49.36     (4) the number of children in clause (1). 
 50.1      (b) For fiscal year 1994 1998 and thereafter, a district 
 50.2   shall receive learning readiness aid equal to: 
 50.3      (1) the number of eligible four-year old children in the 
 50.4   district times the ratio of 50 percent of the total learning 
 50.5   readiness aid for that year to the total number of eligible 
 50.6   four-year old children reported to the commissioner for that 
 50.7   year; plus 
 50.8      (2) the number of participating eligible children times the 
 50.9   ratio of 15 percent of the total learning readiness aid for that 
 50.10  year to the total number of participating eligible children for 
 50.11  that year; plus 
 50.12     (3) the number of pupils enrolled in the school district 
 50.13  from families eligible for the free or reduced school lunch 
 50.14  program times the ratio of 35 50 percent of the total learning 
 50.15  readiness aid for that year to the total number of pupils in the 
 50.16  state from families eligible for the free or reduced school 
 50.17  lunch program. 
 50.18     Sec. 38.  Minnesota Statutes 1996, section 268.913, 
 50.19  subdivision 2, is amended to read: 
 50.20     Subd. 2.  [PROGRAM ACCOUNT 20.] "Program account 20" means 
 50.21  the federally designated and funded account limited to for 
 50.22  training and technical assistance activities. 
 50.23     Sec. 39.  Minnesota Statutes 1996, section 268.913, 
 50.24  subdivision 4, is amended to read: 
 50.25     Subd. 4.  [PROGRAM ACCOUNT 26 25.] "Program account 26 25" 
 50.26  means the federally designated and funded account that can only 
 50.27  be used to provide special services to handicapped diagnosed 
 50.28  children for Parent Child Centers. 
 50.29     Sec. 40.  Minnesota Statutes 1996, section 268.914, 
 50.30  subdivision 1, is amended to read: 
 50.31     Subdivision 1.  [STATE SUPPLEMENT FOR FEDERAL GRANTEES.] 
 50.32  (a) The commissioner of economic security shall distribute money 
 50.33  appropriated for that purpose to Head Start program grantees to 
 50.34  expand services to additional low-income children.  Money must 
 50.35  be allocated to each project Head Start grantee in existence on 
 50.36  the effective date of Laws 1989, chapter 282.  Migrant and 
 51.1   Indian reservation grantees must be initially allocated money 
 51.2   based on the grantees' share of federal funds.  The remaining 
 51.3   money must be initially allocated to the remaining local 
 51.4   agencies based equally on the agencies' share of federal funds 
 51.5   and on the proportion of eligible children in the agencies' 
 51.6   service area who are not currently being served.  A Head Start 
 51.7   grantee must be funded at a per child rate equal to its 
 51.8   contracted, federally funded base level for program accounts 
 51.9   20 to 26, 22, and 25 at the start of the fiscal year.  In 
 51.10  allocating funds under this paragraph, the commissioner of 
 51.11  economic security must assure that each Head Start grantee is 
 51.12  allocated no less funding in any fiscal year than was allocated 
 51.13  to that grantee in fiscal year 1993.  The commissioner may 
 51.14  provide additional funding to grantees for start-up costs 
 51.15  incurred by grantees due to the increased number of children to 
 51.16  be served.  Before paying money to the grantees, the 
 51.17  commissioner shall notify each grantee of its initial 
 51.18  allocation, how the money must be used, and the number of 
 51.19  low-income children that must be served with the allocation.  
 51.20  Each grantee must notify the commissioner of the number of 
 51.21  additional low-income children it will be able to serve.  For 
 51.22  any grantee that cannot serve additional children to its full 
 51.23  allocation, the commissioner shall reduce the allocation 
 51.24  proportionately.  Money available after the initial allocations 
 51.25  are reduced must be redistributed to eligible grantees. 
 51.26     (b) Up to 11 percent of the funds appropriated annually may 
 51.27  be used to provide grants to local Head Start agencies to 
 51.28  provide funds for innovative programs designed either to target 
 51.29  Head Start resources to particular at-risk groups of children or 
 51.30  to provide services in addition to those currently allowable 
 51.31  under federal Head Start regulations.  The commissioner shall 
 51.32  award funds for innovative programs under this paragraph on a 
 51.33  competitive basis. 
 51.34     Sec. 41.  [EARLY CHILDHOOD PROFESSIONAL DEVELOPMENT.] 
 51.35     The Minnesota Institute for Early Childhood Professional 
 51.36  Development shall make recommendations by January 15, 1998, 
 52.1   related to the qualifications for child care center staff and 
 52.2   family child care providers to the commissioners of human 
 52.3   services and children, families, and learning and the Minnesota 
 52.4   state legislature.  Recommendations shall be made in the 
 52.5   following areas: 
 52.6      (1) whether the procedures for licensing individuals should 
 52.7   be separated from the licensing of the program and physical 
 52.8   plant of child care centers and homes; 
 52.9      (2) what entity would be the most appropriate to issue 
 52.10  individual licenses; 
 52.11     (3) core competencies which are based on the age of the 
 52.12  children served and type of provider; and 
 52.13     (4) the amount of preservice training, experience, and 
 52.14  in-service training for child care providers.  
 52.15     Sec. 42.  [REPEALER.] 
 52.16     Minnesota Statutes 1996, sections 119B.03, subdivision 7; 
 52.17  119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 121.8355, 
 52.18  subdivision 1a; and 268.913, subdivision 5, are repealed. 
 52.19                             ARTICLE 5 
 52.20     Section 1.  [121.498] [MINNESOTA CAREER INFORMATION 
 52.21  SYSTEM.] 
 52.22     (a) The department of children, families, and learning, 
 52.23  through the Minnesota career information system (MCIS), may 
 52.24  provide career information to, including, but not limited to, 
 52.25  school districts and other educational organizations, employment 
 52.26  and training services, human service agencies, libraries, and 
 52.27  families.  The department shall collect fees necessary to 
 52.28  recover all expenditures related to the operation of the 
 52.29  Minnesota career information system. 
 52.30     (b) Grants and other legislative funds may be accepted and 
 52.31  used for the improvement or operation of the Minnesota career 
 52.32  information system.  All receipts shall be deposited in a 
 52.33  special account in the special revenue fund that shall be 
 52.34  carried over at the end of each fiscal year.  The money in the 
 52.35  account, along with any interest earned, is appropriated to the 
 52.36  commissioner of children, families, and learning for the 
 53.1   Minnesota career information system and must be for the sole use 
 53.2   and benefit of the system.  The department shall recognize that 
 53.3   the Minnesota career information system operates under a 
 53.4   self-supporting directive, and accordingly, must provide 
 53.5   sufficient administrative latitude within the confines of law to 
 53.6   enable the system to operate effectively. 
 53.7      (c) The department, through the Minnesota career 
 53.8   information system, may order printing documents, disk 
 53.9   duplication services, and materials directly from private 
 53.10  vendors or public agencies as needed to improve communications 
 53.11  with vendors and product acquisition timelines and to more 
 53.12  efficiently deliver client services thereby assisting the system 
 53.13  in meeting the self-supporting directive.  For this purpose, the 
 53.14  Minnesota career information system is exempt from the 
 53.15  department of administration printing authority in chapter 16B 
 53.16  but is required to utilize competitive purchasing practices and 
 53.17  to provide due consideration to targeted group business. 
 53.18     Sec. 2.  Minnesota Statutes 1996, section 124.574, 
 53.19  subdivision 1, is amended to read: 
 53.20     Subdivision 1.  The purpose of this section is to provide a 
 53.21  method to fund programs for secondary vocational education 
 53.22  school-to-work activities for children with a disability.  As 
 53.23  used in this section, the term "children with a disability" 
 53.24  shall have the meaning ascribed to it in section 120.03. 
 53.25     Sec. 3.  Minnesota Statutes 1996, section 124.574, 
 53.26  subdivision 2d, is amended to read: 
 53.27     Subd. 2d.  [BASE REVENUE.] The secondary vocational 
 53.28  disabled program base revenue equals the sum of the following 
 53.29  amounts computed using base year data: 
 53.30     (1) 68 percent of the salary of each essential licensed 
 53.31  person who provides direct instructional services to students 
 53.32  employed during that fiscal year for services rendered in that 
 53.33  district's secondary vocational education programs 
 53.34  school-to-work activities for children with a disability; 
 53.35     (2) 47 percent of the costs of necessary equipment for 
 53.36  secondary vocational education programs school-to-work 
 54.1   activities for children with a disability; 
 54.2      (3) 47 percent of the costs of necessary travel between 
 54.3   instructional sites by secondary vocational education teachers 
 54.4   of children with a disability but not including travel to and 
 54.5   from local, regional, district, state, or national vocational 
 54.6   student organization meetings; 
 54.7      (4) 47 percent of the costs of necessary supplies for 
 54.8   secondary vocational education programs school-to-work 
 54.9   activities for children with a disability but not to exceed an 
 54.10  average of $47 in any one school year for each child with a 
 54.11  disability receiving these services; 
 54.12     (5) for secondary vocational education programs 
 54.13  school-to-work activities for children with disabilities 
 54.14  provided by a contract approved by the commissioner with public, 
 54.15  private, or voluntary agencies other than a Minnesota school 
 54.16  district or cooperative center, in place of programs provided by 
 54.17  the district, 52 percent of the difference between the amount of 
 54.18  the contract and the basic revenue of the district for that 
 54.19  pupil for the fraction of the school day the pupil receives 
 54.20  services under the contract; 
 54.21     (6) for secondary vocational education programs 
 54.22  school-to-work activities for children with disabilities 
 54.23  provided by a contract approved by the commissioner with public, 
 54.24  private, or voluntary agencies other than a Minnesota school 
 54.25  district or cooperative center, that are supplementary to a full 
 54.26  educational program provided by the school district, 52 percent 
 54.27  of the amount of the contract; and 
 54.28     (7) for a contract approved by the commissioner with 
 54.29  another Minnesota school district or cooperative center for 
 54.30  vocational evaluation services for children with a disability 
 54.31  for children that are not yet enrolled in grade 12, 52 percent 
 54.32  of the amount of the contract. 
 54.33     Sec. 4.  Minnesota Statutes 1996, section 124.574, 
 54.34  subdivision 5, is amended to read: 
 54.35     Subd. 5.  The aid provided pursuant to this section shall 
 54.36  be paid only for services rendered as designated in subdivision 
 55.1   2 or for the costs designated in subdivision 3 which are 
 55.2   incurred in secondary vocational education programs 
 55.3   school-to-work activities for children with a disability which 
 55.4   are approved by the commissioner of children, families, and 
 55.5   learning and operated in accordance with rules promulgated by 
 55.6   the state board.  These rules shall be subject to the 
 55.7   restrictions provided in section 124.573, subdivision 3.  The 
 55.8   procedure for application for approval of these programs shall 
 55.9   be as provided in section 124.32, subdivisions 7 and 10, and the 
 55.10  application review process shall be conducted by the vocational 
 55.11  education section of the state office of lifework development in 
 55.12  the department. 
 55.13     Sec. 5.  Minnesota Statutes 1996, section 124.574, 
 55.14  subdivision 6, is amended to read: 
 55.15     Subd. 6.  All aid pursuant to this section shall be paid to 
 55.16  the district or cooperative center providing the services.  All 
 55.17  aid received by a district or center from any source for 
 55.18  secondary vocational education school-to-work activities for 
 55.19  children with a disability shall be utilized solely for that 
 55.20  purpose. 
 55.21     Sec. 6.  Minnesota Statutes 1996, section 124.574, 
 55.22  subdivision 9, is amended to read: 
 55.23     Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 55.24  INTERMEDIATE DISTRICTS.] For purposes of this section and 
 55.25  section 124.321, a cooperative center or an intermediate 
 55.26  district shall allocate its approved expenditures for secondary 
 55.27  vocational programs school-to-work activities for children with 
 55.28  a disability among participating school districts.  Aid for 
 55.29  secondary vocational programs school-to-work activities for 
 55.30  children with a disability for services provided by a 
 55.31  cooperative or intermediate district shall be paid to the 
 55.32  participating school districts. 
 55.33     Sec. 7.  [126.685] [LIFEWORK DEVELOPMENT PLAN.] 
 55.34     A school district may require students in grades seven 
 55.35  through 12 to develop and maintain a record of all of the 
 55.36  students' lifework development activities.  This record would 
 56.1   include, but is not limited to, the students' goals, skills, 
 56.2   abilities, and interests, as well as information on formal 
 56.3   service learning, out-of-school learning experiences, and 
 56.4   career-related experiences, such as job shadowing, career 
 56.5   mentoring, internships, apprenticeships, entrepreneurship, and 
 56.6   other work-based learning activities.  This ongoing record would 
 56.7   assist the students in choosing their school-based courses and 
 56.8   assist them in the research and exploration of career options.  
 56.9   Each school year, the record would be reviewed by the student, 
 56.10  the student's parent or guardian, and qualified school personnel 
 56.11  to ensure that the record is updated and reflects the student's 
 56.12  changing life goals and aspirations.  The record would serve as 
 56.13  the basis of a lifework plan that would be developed before 
 56.14  graduation.  The plan would outline the skills the students need 
 56.15  to develop in order to attain their career aspirations.  The 
 56.16  plan would also outline future education and training options 
 56.17  necessary to achieve their lifework goals. 
 56.18                             ARTICLE 6 
 56.19     Section 1.  Minnesota Statutes 1996, section 121.155, is 
 56.20  amended by adding a subdivision to read: 
 56.21     Subd. 3.  [EXEMPTION.] Programs operated in facilities 
 56.22  constructed under this section are exempt from the limitations 
 56.23  under section 123.35, subdivision 19a. 
 56.24     Sec. 2.  Minnesota Statutes 1996, section 124.431, 
 56.25  subdivision 2, is amended to read: 
 56.26     Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
 56.27  school district or a joint powers district that intends to apply 
 56.28  for a capital loan must submit a proposal to the commissioner 
 56.29  for review and comment according to section 121.15 on or before 
 56.30  July 1 of an odd-numbered year.  The commissioner must prepare a 
 56.31  review and comment on the proposed facility, regardless of the 
 56.32  amount of the capital expenditure required to construct the 
 56.33  facility.  In addition to the information provided under section 
 56.34  121.15, subdivision 7, the commissioner shall require that 
 56.35  predesign packages comparable to those required under section 
 56.36  16B.335 be prepared by the applicant school district which is 
 57.1   sufficient to define the scope, cost, and schedule of the 
 57.2   project and must demonstrate that the project has been analyzed 
 57.3   according to appropriate space needs standards and also consider 
 57.4   the following criteria in determining whether to make a positive 
 57.5   review and comment.  
 57.6      (a) To grant a positive review and comment the commissioner 
 57.7   must determine that all of the following conditions are met: 
 57.8      (1) the facilities are needed for pupils for whom no 
 57.9   adequate facilities exist or will exist; 
 57.10     (2) the district will serve, on average, at least 80 pupils 
 57.11  per grade or is eligible for elementary or secondary sparsity 
 57.12  revenue; 
 57.13     (3) no form of cooperation with another district would 
 57.14  provide the necessary facilities; 
 57.15     (4) the facilities are comparable in size and quality to 
 57.16  facilities recently constructed in other districts that have 
 57.17  similar enrollments; 
 57.18     (5) the facilities are comparable in size and quality to 
 57.19  facilities recently constructed in other districts that are 
 57.20  financed without a capital loan; 
 57.21     (6) the district is projected to maintain or increase its 
 57.22  average daily membership over the next five years or is eligible 
 57.23  for elementary or secondary sparsity revenue; 
 57.24     (7) the current facility poses a threat to the life, 
 57.25  health, and safety of pupils, and cannot reasonably be brought 
 57.26  into compliance with fire, health, or life safety codes; 
 57.27     (8) the district has made a good faith effort, as evidenced 
 57.28  by its maintenance expenditures, to adequately maintain the 
 57.29  existing facility during the previous ten years and to comply 
 57.30  with fire, health, and life safety codes and state and federal 
 57.31  requirements for handicapped accessibility; 
 57.32     (9) the district has made a good faith effort to encourage 
 57.33  integration of social service programs within the new facility; 
 57.34  and 
 57.35     (10) evaluations by school boards of adjacent districts 
 57.36  have been received. 
 58.1      (b) The commissioner may grant a negative review and 
 58.2   comment if: 
 58.3      (1) the state demographer has examined the population of 
 58.4   the communities to be served by the facility and determined that 
 58.5   the communities have not grown during the previous five years; 
 58.6      (2) the state demographer determines that the economic and 
 58.7   population bases of the communities to be served by the facility 
 58.8   are not likely to grow or to remain at a level sufficient, 
 58.9   during the next ten years, to ensure use of the entire facility; 
 58.10     (3) the need for facilities could be met within the 
 58.11  district or adjacent districts at a comparable cost by leasing, 
 58.12  repairing, remodeling, or sharing existing facilities or by 
 58.13  using temporary facilities; 
 58.14     (4) the district plans do not include cooperation and 
 58.15  collaboration with health and human services agencies and other 
 58.16  political subdivisions; or 
 58.17     (5) if the application is for new construction, an existing 
 58.18  facility that would meet the district's needs could be purchased 
 58.19  at a comparable cost from any other source within the area. 
 58.20                             ARTICLE 7 
 58.21     Section 1.  Minnesota Statutes 1996, section 120.064, is 
 58.22  amended by adding a subdivision to read: 
 58.23     Subd. 14b.  [REVIEW AND COMMENT.] The department shall 
 58.24  review and comment on the evaluation, by the chartering school 
 58.25  district, of the performance of a charter school before the 
 58.26  charter school's contract is renewed.  The information from the 
 58.27  review and comment shall be reported to the state board of 
 58.28  education in a timely manner. 
 58.29     Sec. 2.  Minnesota Statutes 1996, section 121.11, 
 58.30  subdivision 7c, is amended to read: 
 58.31     Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
 58.32  legislature is committed to establishing a rigorous, 
 58.33  results-oriented graduation rule for Minnesota's public school 
 58.34  students.  To that end, the state board shall use its rulemaking 
 58.35  authority under subdivision 7b to adopt a statewide, 
 58.36  results-oriented graduation rule to be implemented starting with 
 59.1   students beginning ninth grade in the 1996-1997 school year.  
 59.2   The board shall not prescribe in rule or otherwise the delivery 
 59.3   system, form of instruction, or a single statewide form of 
 59.4   assessment that local sites must use to meet the requirements 
 59.5   contained in this rule. 
 59.6      (b) To successfully accomplish paragraph (a), the state 
 59.7   board shall set in rule high academic standards for all 
 59.8   students.  The standards must contain the foundational skills in 
 59.9   the three core curricular areas of reading, writing, and 
 59.10  mathematics while meeting requirements for high school 
 59.11  graduation.  The standards must also provide an opportunity for 
 59.12  students to excel by meeting higher academic standards through a 
 59.13  profile of learning that uses curricular requirements to allow 
 59.14  students to expand their knowledge and skills beyond the 
 59.15  foundational skills.  All state board actions regarding the rule 
 59.16  must be premised on the following:  
 59.17     (1) the rule is intended to raise academic expectations for 
 59.18  students, teachers, and schools; 
 59.19     (2) any state action regarding the rule must evidence 
 59.20  consideration of school district autonomy; and 
 59.21     (3) the department of children, families, and learning, 
 59.22  with the assistance of school districts, must make available 
 59.23  information about all state initiatives related to the rule to 
 59.24  students and parents, teachers, and the general public in a 
 59.25  timely format that is appropriate, comprehensive, and readily 
 59.26  understandable. 
 59.27     (c) For purposes of adopting the rule, the state board, in 
 59.28  consultation with the department, recognized psychometric 
 59.29  experts in assessment, and other interested and knowledgeable 
 59.30  educators, using the most current version of professional 
 59.31  standards for educational testing, shall evaluate the 
 59.32  alternative approaches to assessment.  
 59.33     (d) The content of the graduation rule must differentiate 
 59.34  between minimum competencies reflected in the basic requirements 
 59.35  assessment and rigorous profile of learning standards.  When 
 59.36  fully implemented, the requirements for high school graduation 
 60.1   in Minnesota must include both basic requirements and the 
 60.2   required profile of learning.  The profile of learning must 
 60.3   measure student performance using performance-based assessments 
 60.4   compiled over time that integrate higher academic standards, 
 60.5   higher order thinking skills, and application of knowledge from 
 60.6   a variety of content areas.  The profile of learning shall 
 60.7   include a broad range of academic experience and accomplishment 
 60.8   necessary to achieve the goal of preparing students to function 
 60.9   effectively as purposeful thinkers, effective communicators, 
 60.10  self-directed learners, productive group participants, and 
 60.11  responsible citizens. 
 60.12     (e) The state board shall periodically review and report on 
 60.13  the assessment process and student achievement with the 
 60.14  expectation of raising the standards and expanding high school 
 60.15  graduation requirements and shall use its rulemaking authority 
 60.16  under subdivision 7b to carry out this expectation by adopting 
 60.17  or amending graduation rules when it determines that raising 
 60.18  standards or expanding high school graduation requirements is 
 60.19  appropriate or that the assessment process should be improved. 
 60.20     (f) The state board shall report in writing to the 
 60.21  legislature annually by January 15 on its progress in developing 
 60.22  and implementing the graduation requirements according to the 
 60.23  requirements of this subdivision and section 123.97 until such 
 60.24  time as all the graduation requirements are implemented. 
 60.25     Sec. 3.  Minnesota Statutes 1996, section 121.602, 
 60.26  subdivision 1, is amended to read: 
 60.27     Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
 60.28  educational effectiveness program are to: 
 60.29     (1) increase meaningful parental involvement in site-based 
 60.30  decision making; 
 60.31     (2) improve results-oriented instructional educational 
 60.32  processes; 
 60.33     (3) create flexible school-based organizational structures; 
 60.34  and 
 60.35     (4) improve student achievement. 
 60.36     Sec. 4.  Minnesota Statutes 1996, section 121.602, 
 61.1   subdivision 2, is amended to read: 
 61.2      Subd. 2.  [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 
 61.3   The commissioner of children, families, and learning shall 
 61.4   develop and maintain a program of educational effectiveness and 
 61.5   results-oriented instruction education.  The commissioner may 
 61.6   appoint an advisory task force to assist the department of 
 61.7   children, families, and learning in developing an implementation 
 61.8   program for providing staff development to school district staff 
 61.9   in educational effectiveness.  The program shall be based on 
 61.10  established principles of instructional design and the essential 
 61.11  elements of effective instruction as determined by educational 
 61.12  research.  The program shall take into account the diverse needs 
 61.13  of the school districts due to such factors as district size and 
 61.14  location. 
 61.15     Sec. 5.  Minnesota Statutes 1996, section 121.602, 
 61.16  subdivision 4, is amended to read: 
 61.17     Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 
 61.18  The department of children, families, and learning shall provide 
 61.19  assistance to the school districts in implementing an 
 61.20  educational effectiveness program.  In selecting an agency to 
 61.21  provide assistance to the school districts, the department shall 
 61.22  consider such factors as support of the proposal by the 
 61.23  participating school districts and the extent to which the 
 61.24  proposal provides for participation by school district staff.  
 61.25  The department shall evaluate the performance of the service 
 61.26  providers.  The staff development shall be facilitated by 
 61.27  building level decision-making teams.  The staff development 
 61.28  shall include clarification of individual school missions, 
 61.29  goals, expectations, enhancement of collaborative planning and 
 61.30  collegial relationships among the building staff, improvement of 
 61.31  curriculum, assessment, instructional and organizational skills, 
 61.32  improvement of financial and management skills, and planning of 
 61.33  other staff development programs. 
 61.34     Sec. 6.  Minnesota Statutes 1996, section 123.3514, 
 61.35  subdivision 8, is amended to read: 
 61.36     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
 62.1   enrolled in a course for secondary credit may apply to the 
 62.2   pupil's district of residence for reimbursement for transporting 
 62.3   the pupil between the secondary school in which the pupil is 
 62.4   enrolled or the pupil's home and the post-secondary institution 
 62.5   that the pupil attends.  The commissioner shall establish 
 62.6   guidelines for providing state aid to Districts to shall 
 62.7   reimburse the parent or guardian for the necessary 
 62.8   transportation costs, which shall be based on financial 
 62.9   need when the family's or guardian's income is at or below the 
 62.10  poverty level, as determined by the federal government.  The 
 62.11  reimbursement may not exceed shall be the pupil's actual cost of 
 62.12  transportation or 15 cents per mile traveled, whichever is 
 62.13  less.  Reimbursement may not be paid for more than 250 miles per 
 62.14  week.  However, if the nearest post-secondary institution is 
 62.15  more than 25 miles from the pupil's resident secondary school, 
 62.16  the weekly reimbursement may not exceed the reimbursement rate 
 62.17  per mile times the actual distance between the secondary school 
 62.18  or the pupil's home and the nearest post-secondary institution 
 62.19  times ten.  The state shall pay aid to the district according to 
 62.20  the guidelines established under this subdivision.  Chapter 14 
 62.21  does not apply to the guidelines. 
 62.22     Sec. 7.  Minnesota Statutes 1996, section 124.248, 
 62.23  subdivision 4, is amended to read: 
 62.24     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 62.25  school is eligible to receive other aids, grants, and revenue 
 62.26  according to chapters 120 to 129, as though it were a school 
 62.27  district except that, notwithstanding section 124.195, 
 62.28  subdivision 3, the payments shall be of an equal amount on each 
 62.29  of the 23 payment dates unless a charter school is in its first 
 62.30  year of operation in which case it shall receive on its first 
 62.31  payment date 15 percent of its cumulative amount guaranteed for 
 62.32  the year and 22 payments of an equal amount thereafter the sum 
 62.33  of which shall be 85 percent of the cumulative amount 
 62.34  guaranteed.  However, it may not receive aid, a grant, or 
 62.35  revenue if a levy is required to obtain the money, except as 
 62.36  otherwise provided in this section.  Federal aid received by the 
 63.1   state must be paid to the school, if it qualifies for the aid as 
 63.2   though it were a school district. 
 63.3      (b) Any revenue received from any source, other than 
 63.4   revenue that is specifically allowed for operational, 
 63.5   maintenance, capital facilities revenue under paragraph (c), and 
 63.6   capital expenditure equipment costs under this section, may be 
 63.7   used only for the planning and operational start-up costs of a 
 63.8   charter school.  Any unexpended revenue from any source under 
 63.9   this paragraph must be returned to that revenue source or 
 63.10  conveyed to the sponsoring school district, at the discretion of 
 63.11  the revenue source. 
 63.12     (c) A charter school may receive money from any source for 
 63.13  capital facilities needs.  Any unexpended capital facilities 
 63.14  revenue must be reserved and shall be expended only for future 
 63.15  capital facilities purposes.  In the year-end report to the 
 63.16  state board of education, the charter school shall report the 
 63.17  total amount of funds received from grants and other outside 
 63.18  sources. 
 63.19     Sec. 8.  Minnesota Statutes 1996, section 124C.46, 
 63.20  subdivision 1, is amended to read: 
 63.21     Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
 63.22  of a center must focus on academic and learning skills, applied 
 63.23  learning opportunities, trade and vocational skills, work-based 
 63.24  learning opportunities, work experience, youth service to the 
 63.25  community, and transition services.  Applied learning, 
 63.26  work-based learning, and service learning may best be developed 
 63.27  in collaboration with a local education and transitions 
 63.28  partnership.  In addition to offering programs, the center shall 
 63.29  coordinate the use of other available educational services, 
 63.30  social services, health services, and post-secondary 
 63.31  institutions in the community and services area.  
 63.32     Sec. 9.  Minnesota Statutes 1996, section 124C.46, 
 63.33  subdivision 2, is amended to read: 
 63.34     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
 63.35  programs for secondary pupils and adults, giving priority to 
 63.36  serving persons between 16 and 21 years of age.  Secondary 
 64.1   pupils to be served are those who are chemically dependent, not 
 64.2   likely to graduate from high school, need assistance in 
 64.3   vocational and basic skills, can benefit from employment 
 64.4   experiences, and need assistance in transition from school to 
 64.5   employment.  Adults to be served are dislocated homemakers and 
 64.6   workers and others who need basic educational and social 
 64.7   services.  In addition to offering programs, the center shall 
 64.8   coordinate the use of other available educational services, 
 64.9   social services, and post-secondary institutions in the 
 64.10  community.  The A center may also provide programs, including 
 64.11  work-based, service-learning, and applied learning opportunities 
 64.12  developed in collaboration with a local education and employment 
 64.13  transitions partnership, and services for elementary and 
 64.14  secondary pupils who are not attending the center to assist them 
 64.15  in completing high being successful in school.  Pupils eligible 
 64.16  to be served are those age five to adults 21 and older who 
 64.17  qualify under the graduation incentives program in section 
 64.18  126.22, subdivision 2.  
 64.19     Sec. 10.  Minnesota Statutes 1996, section 126.22, 
 64.20  subdivision 2, is amended to read: 
 64.21     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 64.22  eligible to participate in the education options graduation 
 64.23  incentives program:  
 64.24     (a) any pupil under the age of 21 who:  
 64.25     (1) performs substantially below the performance level for 
 64.26  pupils of the same age in a locally determined achievement test; 
 64.27  or 
 64.28     (2) is at least one year behind in satisfactorily 
 64.29  completing coursework or obtaining credits for graduation; or 
 64.30     (3) is pregnant or is a parent; or 
 64.31     (4) has been assessed as chemically dependent; or 
 64.32     (5) has been excluded or expelled according to sections 
 64.33  127.26 to 127.39; or 
 64.34     (6) has been referred by a school district for enrollment 
 64.35  in an eligible program or a program pursuant to section 126.23; 
 64.36  or 
 65.1      (7) is a victim of physical or sexual abuse; or 
 65.2      (8) has experienced mental health problems; or 
 65.3      (9) has experienced homelessness sometime within six months 
 65.4   before requesting a transfer to an eligible program; or 
 65.5      (10) speaks English as a second language or has limited 
 65.6   English proficiency; or 
 65.7      (11) has withdrawn from school or has been chronically 
 65.8   truant; or 
 65.9      (b) any person who is at least 21 years of age and who:  
 65.10     (1) has received fewer than 14 years of public or nonpublic 
 65.11  education, beginning at age 5; 
 65.12     (2) has not completed the requirements for a high school 
 65.13  diploma; and 
 65.14     (3) at the time of application, (i) is eligible for 
 65.15  reemployment insurance benefits or has exhausted the benefits, 
 65.16  (ii) is eligible for, or is receiving income maintenance and 
 65.17  support services, as defined in section 268.0111, subdivision 5, 
 65.18  or (iii) is eligible for services under the displaced homemaker 
 65.19  program, state wage-subsidy program, or any programs under the 
 65.20  federal Jobs Training Partnership Act or its successor. 
 65.21     Sec. 11.  Laws 1995, First Special Session chapter 3, 
 65.22  article 11, section 21, subdivision 3, is amended to read: 
 65.23     Subd. 3.  [CHARTER SCHOOL EVALUATION.] For the state board 
 65.24  of education to evaluate the performance of charter schools 
 65.25  authorized according to Minnesota Statutes, section 120.064: 
 65.26       $75,000     .....     1996 
 65.27     The state board must review and comment on the evaluation, 
 65.28  by the chartering school district, of the performance of a 
 65.29  charter school before that charter school's contract is 
 65.30  renewed.  The state board may provide assistance to a school 
 65.31  district in evaluating a charter school that has been chartered 
 65.32  by that school board.  The board must report annually to the 
 65.33  education committees of the legislature on the results of its 
 65.34  evaluations.  This amount is available until June 30, 1997. 
 65.35     Sec. 12.  [REPEALER.] 
 65.36     Minnesota Statutes 1996, sections 121.602, subdivisions 3 
 66.1   and 5; and 124A.292, are repealed. 
 66.2                              ARTICLE 8 
 66.3      Section 1.  Minnesota Statutes 1996, section 123.3514, 
 66.4   subdivision 4c, is amended to read: 
 66.5      Subd. 4c.  [LIMIT ON PARTICIPATION.] A pupil who first 
 66.6   enrolls in grade 11 may not enroll in post-secondary courses 
 66.7   under this section for secondary credit for more than the 
 66.8   equivalent of two academic years.  A pupil who first enrolls in 
 66.9   grade 12 may not enroll in post-secondary courses under this 
 66.10  section for secondary credit for more than the equivalent of one 
 66.11  academic year.  If a pupil in grade 11 or 12 first enrolls in a 
 66.12  post-secondary course for secondary credit during the school 
 66.13  year, the time of participation shall be reduced 
 66.14  proportionately.  If a pupil is in a learning year or other 
 66.15  year-round program and so begins each grade in the summer 
 66.16  session, summer sessions shall not be counted against the time 
 66.17  of participation.  A pupil who has graduated from high school 
 66.18  cannot participate in a program under this section.  A pupil who 
 66.19  has completed course requirements for graduation but who has not 
 66.20  received a diploma may participate in the program under this 
 66.21  section. 
 66.22                             ARTICLE 9 
 66.23     Section 1.  Minnesota Statutes 1996, section 127.27, 
 66.24  subdivision 10, is amended to read: 
 66.25     Subd. 10.  "Suspension" means an action taken by the school 
 66.26  administration, under rules promulgated by the school board, 
 66.27  prohibiting a pupil from attending school for a period of no 
 66.28  more than ten school days.  If a suspension is longer than five 
 66.29  days, the suspending administrator must provide the 
 66.30  superintendent with a reason for the longer suspension.  This 
 66.31  definition does not apply to dismissal from school for one 
 66.32  school day or less.  Each suspension action shall include a 
 66.33  readmission plan.  The readmission plan shall include, where 
 66.34  appropriate, a provision for alternative programs to be 
 66.35  implemented upon readmission.  Suspension may not be 
 66.36  consecutively imposed against the same pupil for the same course 
 67.1   of conduct, or incident of misconduct, except where the pupil 
 67.2   will create an immediate and substantial danger to surrounding 
 67.3   persons or property.  In no event shall suspension exceed 15 
 67.4   school days, provided that If a district initiates expulsion 
 67.5   proceedings, a suspension may be extended for up to a total of 
 67.6   15 school days.  An alternative program shall be implemented to 
 67.7   the extent that suspension exceeds five days. 
 67.8      Sec. 2.  Minnesota Statutes 1996, section 127.282, is 
 67.9   amended to read: 
 67.10     127.282 [EXPULSION FOR POSSESSION OF FIREARM.] 
 67.11     (a) Notwithstanding the time limitation in section 127.27, 
 67.12  subdivision 5, a school board must expel for a period of at 
 67.13  least one year a pupil who is determined to have brought a 
 67.14  firearm to school except the board may modify this expulsion 
 67.15  requirement for a pupil on a case-by-case basis.  For the 
 67.16  purposes of this section, firearm is as defined in United States 
 67.17  Code, title 18, section 921. 
 67.18     (b) Notwithstanding chapter 13, a student's expulsion or 
 67.19  withdrawal or transfer from a school after an expulsion action 
 67.20  is initiated against the student for a weapons violation under 
 67.21  paragraph (a) may be disclosed by the school district initiating 
 67.22  the expulsion proceeding.  Unless the information is otherwise 
 67.23  public, the disclosure may be made only to another school 
 67.24  district in connection with the possible admission of the 
 67.25  student to the other district. 
 67.26                             ARTICLE 10 
 67.27     Section 1.  Minnesota Statutes 1996, section 134.155, 
 67.28  subdivision 2, is amended to read: 
 67.29     Subd. 2.  [GRANTS.] The commissioner of children, families, 
 67.30  and learning, in consultation with the multicultural advisory 
 67.31  committee established in section 126.82, shall award grants for 
 67.32  professional development programs to recruit and educate people 
 67.33  of color in the field of library science or information 
 67.34  management.  Grant applicants must be a public library 
 67.35  jurisdiction with a growing minority population working in 
 67.36  collaboration with an accredited institution of higher education 
 68.1   with a library education program in the state of Minnesota. 
 68.2      Sec. 2.  Minnesota Statutes 1996, section 134.155, 
 68.3   subdivision 3, is amended to read: 
 68.4      Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
 68.5   shall recruit people of color to be library staff in public 
 68.6   libraries and provide support in linking program participants 
 68.7   with jobs in the recipient's library jurisdiction. 
 68.8      (b) A grant recipient shall establish an advisory council 
 68.9   composed of representatives of communities of color. 
 68.10     (c) A grant recipient, with the assistance of the advisory 
 68.11  council, may recruit high school students, undergraduate 
 68.12  students or other persons; support them through the higher 
 68.13  education application and admission process; advise them while 
 68.14  enrolled; and link them with support resources in the college or 
 68.15  university and the community.  
 68.16     (d) A grant recipient shall award stipends to people of 
 68.17  color enrolled in a library education program to help cover the 
 68.18  costs of tuition, student fees, supplies, and books.  Stipend 
 68.19  awards must be based upon a student's financial need and 
 68.20  students must apply for any additional financial aid for which 
 68.21  they are eligible to supplement this program.  No more than ten 
 68.22  percent of the grant may be used for costs of administering the 
 68.23  program.  Students must agree to work in the grantee library 
 68.24  jurisdiction for at least two years after graduation if the 
 68.25  student acquires a master's degree and at least three years 
 68.26  after graduation if the student acquires both a bachelor's and a 
 68.27  master's degree while participating in the program.  If no 
 68.28  full-time position is available in the library jurisdiction, the 
 68.29  student may fulfill the work requirement in another Minnesota 
 68.30  public library.  
 68.31     (e) The commissioner of children, families, and learning 
 68.32  shall consider the following criteria in awarding grants:  
 68.33     (1) whether the program is likely to increase the 
 68.34  recruitment and retention of persons of color in librarianship; 
 68.35     (2) whether grant recipients will establish or have a 
 68.36  mentoring program for persons of color; and 
 69.1      (3) whether grant recipients will provide a library 
 69.2   internship for persons of color while participating in this 
 69.3   program.  
 69.4      Sec. 3.  Minnesota Statutes 1996, section 134.34, 
 69.5   subdivision 4, is amended to read: 
 69.6      Subd. 4.  A regional library basic system support grant 
 69.7   shall not be made to a regional public library system for a 
 69.8   participating city or county which decreases the dollar amount 
 69.9   provided for support for operating purposes of public library 
 69.10  service below the amount provided by it for the second preceding 
 69.11  year.  This subdivision shall not apply to participating cities 
 69.12  or counties where the adjusted net tax capacity of that city or 
 69.13  county has decreased, if the dollar amount of the reduction in 
 69.14  support is not greater than the dollar amount by which support 
 69.15  would be decreased if the reduction in support were made in 
 69.16  direct proportion to the decrease in adjusted net tax capacity. 
 69.17     Sec. 4.  [REPEALER.] 
 69.18     Minnesota Statutes 1996, section 134.34, subdivision 4a, is 
 69.19  repealed.