The Honorable Phil Carruthers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Carruthers:

It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House File:

H. F. No. 293, relating to taxation; making technical and administrative changes and corrections.

Warmest regards,

Arne H. Carlson

Governor

The Honorable Phil Carruthers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Carruthers:

It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House File:

H. F. No. 2132, relating to taxation; providing an extension of time to file and pay certain state taxes for residents in a flood disaster area.

Warmest regards,

Arne H. Carlson

Governor

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 1997 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997
	293	31	2:05 p.m. April 15	April 15
	2132	34	10:23 a.m. April 15	April 15

Sincerely,

Joan Anderson Growe
Secretary of State

Sec. 18. Minnesota Statutes 1996, section 124.225, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For purposes of this section, the terms defined in this subdivision have the meanings given to them.

(a) "FTE" means a full-time equivalent pupil whose transportation is authorized for aid purposes by section 124.223 or levy.

(b) "Authorized cost for regular transportation "Actual expenditure in the regular and excess transportation categories" means the sum of:

(1) all expenditures for transportation in the regular category, as defined in paragraph (c), clause (1), for which aid is authorized in section 124.223 and the excess category, as defined in paragraph (c), clause (3), plus

(2) an amount equal to one year's depreciation on the district's school bus fleet and mobile units computed on a straight line basis at the rate of 15 percent per year for districts operating a program under section 121.585 for grades 1 to 12 for all students in the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(3) an amount equal to one year's depreciation on district school buses reconditioned by the department of corrections computed on a straight line basis at the rate of 33-1/3 percent per year of the cost to the district of the reconditioning, plus

(4) an amount equal to one year's depreciation on the district's type three school buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a majority of the time for the purposes in sections 124.223 and 124.226, subdivisions 5, 8, and 9, and were purchased after July 1, 1982, for authorized transportation of pupils, computed on a straight line basis at the rate of 20 percent per year of the cost of the type three school buses an amount equal to 15 percent per year of the original cost of each school bus or mobile unit owned by the district and used a majority of the time for pupil transportation purposes until the school bus or mobile unit is eight years old.

(c) "Transportation category" means a category of transportation service provided to pupils as follows:

(1) Regular transportation is transportation services provided during the regular school year under section 124.223, subdivisions 1 and 2, excluding the following transportation services provided under section 124.223, subdivision 1: transportation between schools; transportation to and from service-learning programs; noon transportation to and from school for kindergarten pupils attending half-day sessions; transportation of pupils to and from schools located outside their normal attendance areas under the provisions of a plan for desegregation mandated by the state board of education or under court order; and transportation of elementary pupils to and from school within a mobility zone.:

(i) transportation to and from school during the regular school year for resident elementary pupils residing one mile or more from the public or nonpublic school they attend, and resident secondary pupils residing two miles or more from the public or nonpublic school they attend, excluding desegregation transportation and noon kindergarten transportation; but with respect to transportation of pupils to and from nonpublic schools, only to the extent permitted by sections 123.76 to 123.79;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between the pupil's home and the child care provider and between the provider and the school, if the home and provider are within the attendance area of the school; and

(iv) transportation to and from or board and lodging in another district, of resident pupils of a district without a secondary school.

(2) Nonregular transportation is:

(i) transportation services provided under section 124.223, subdivision 1, that are excluded from the regular category between schools a resident pupil attends for instructional classes or to and from a service learning program under section 124.223, subdivision 1, paragraph (a);

(ii) transportation of an elementary pupil within a mobility zone under section 124.223, subdivision 1, paragraphs (c), (d), and (e); and

(iii) transportation services provided under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10 excluding transportation services for pupils with disabilities.

(3) Excess transportation is transportation to and from school during the regular school year for secondary pupils residing at least one mile but less than two miles from the public school they could attend or from the nonpublic school actually attended they attend, and transportation to and from school for pupils residing less than one mile from school who are transported because of extraordinary traffic, drug, or crime hazards.

(4) Desegregation transportation is transportation within and outside of the district during the regular school year of pupils to and from schools located outside their normal attendance areas under a plan for desegregation mandated by the state board or under court order.

(5) Handicapped transportation is transportation provided under section 124.223, subdivision 4, for pupils with a disability between home or a respite care facility and school or other buildings where special instruction required by sections 120.17 and 120.1701 is provided "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to other buildings, including centers such as developmental achievement centers, hospitals, and treatment centers where special instruction or services required by sections 120.17 and 120.1701 are provided, within or outside the district where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections 120.17, subdivision 4a, and 120.1701;

(iv) board and lodging for pupils with disabilities in a district maintaining special classes;

(v) transportation from one educational facility to another within the district for resident pupils enrolled on a shared-time basis in educational programs, and necessary transportation required by sections 120.17, subdivision 9, and 120.1701, for resident pupils with disabilities who are provided special instruction and services on a shared-time basis;

(vi) transportation for resident pupils with disabilities to and from board and lodging facilities when the pupil is boarded and lodged for educational purposes; and

(vii) services described in clauses (i) to (vi), when provided for pupils with disabilities in conjunction with a summer instructional program that relates to the pupil's individual education plan or in conjunction with a learning year program established under section 121.585.

(d) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational programs and services, including diagnostic testing, guidance and counseling services, and health services. A mobile unit located off nonpublic school premises is a neutral site as defined in section 123.932, subdivision 9.

(e) "Current year" means the school year for which aid will be paid.

(g) "Base cost" means the ratio of:

(1) the sum of the authorized cost actual expenditures in the base year for regular transportation as defined in paragraph (b) (c) plus the actual cost expenditures in the base year for excess transportation as defined in paragraph (c);

(2) to the sum of the number of weighted FTE's in the regular and excess categories in the base year.

(h) "Pupil weighting factor" for the excess transportation category for a school district means the lesser of one, or the result of the following computation:

(1) Divide the square mile area of the school district by the number of FTE's in the regular and excess categories in the base year.

(2) Raise the result in clause (1) to the one-fifth power.

(3) Divide four-tenths by the result in clause (2).

The pupil weighting factor for the regular transportation category is one.

(i) "Weighted FTE's" means the number of FTE's in each transportation category multiplied by the pupil weighting factor for that category.

(j) "Sparsity index" for a school district means the greater of .005 or the ratio of the square mile area of the school district to the sum of the number of weighted FTE's by the district in the regular and excess categories in the base year.

(k) "Density index" for a school district means the greater of one or the result obtained by subtracting the product of the district's sparsity index times 20 from two.

(l) "Contract transportation index" for a school district means the greater of one or the result of the following computation:

(1) Multiply the district's sparsity index by 20.

(2) Select the lesser of one or the result in clause (1).

(3) Multiply the district's percentage of regular FTE's in the current year using vehicles that are not owned by the school district by the result in clause (2).

(m) "Adjusted predicted base cost" means the predicted base cost as computed in subdivision 3a as adjusted under subdivision 7a.

(n) (m) "Regular transportation allowance" means the adjusted predicted base cost, inflated and adjusted under subdivision 7b.

Sec. 19. Minnesota Statutes 1996, section 124.225, subdivision 3a, is amended to read:

Subd. 3a. [PREDICTED BASE COST.] A district's predicted base cost equals the result of the following computation:

(a) Multiply the transportation formula allowance by the district's sparsity index raised to the one-fourth .22 power. The transportation formula allowance is $477 $530 for the 1993-1994 1996-1997 base year.

(b) Multiply the result in paragraph (a) by the district's density index raised to the 1/2 one-fourth power.

Sec. 20. Minnesota Statutes 1996, section 124.225, subdivision 7b, is amended to read:

Subd. 7b. [INFLATION FACTORS.] (a) The adjusted predicted base cost determined for a district under subdivision 7a for the base year must be increased by zero percent to determine the district's regular transportation allowance for the 1995-1996 current school year.

(b) Notwithstanding paragraph (a), the regular transportation allowance for a district for the 1995-1996 current school year cannot be less than the district's minimum regular transportation allowance according to Minnesota Statutes 1990, section 124.225, subdivision 1, paragraph (t).

Sec. 21. Minnesota Statutes 1996, section 124.225, subdivision 7d, is amended to read:

Subd. 7d. [TRANSPORTATION REVENUE.] Transportation revenue for each district equals the sum of the district's regular transportation revenue and the district's nonregular transportation revenue.

(a) The regular transportation revenue for each district equals the district's regular transportation allowance according to subdivision 7b times the sum of the number of FTE's by the district in the regular, and desegregation, and handicapped categories in the current school year.

(b) For the 1995-1996 school year, The nonregular transportation revenue for each district equals the lesser of the district's actual cost in the current school year for nonregular transportation services or the product of the district's actual cost in the base year for nonregular transportation services as defined for the current year in subdivision 1, paragraph (c), times the ratio of the district's average daily membership for the current year to the district's average daily membership for the base year according to section 124.17, subdivision 2, times the nonregular transportation inflation factor for the current year, minus the amount of regular transportation revenue attributable to FTE's in the desegregation and handicapped categories in the current school year, plus the excess nonregular transportation revenue for the current year according to subdivision 7e. The nonregular transportation inflation factor is 1.0 for the 1995-1996 1998-1999 and later school year years.

Sec. 22. Minnesota Statutes 1996, section 124.225, subdivision 7f, is amended to read:

Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A district shall reserve an amount equal to the greater of $500 or $1.50 $3.50 times the number of fund balance pupil units, for that school year to provide student transportation safety programs under section 123.799. This revenue may only be used if the district complies with the reporting requirements of section 123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5.

Sec. 23. Minnesota Statutes 1996, section 124.225, subdivision 8a, is amended to read:

Subd. 8a. [TRANSPORTATION AID.] (a) A district's transportation aid equals the product of:

(1) the difference between the transportation revenue and the sum of:

(i) the maximum basic transportation levy for that school year under section 124.226, subdivision 1, plus

(ii) the maximum nonregular transportation levy for that school year under section 124.226, subdivision 4, plus

(iii) the contracted services aid reduction under subdivision 8k,

(2) times the ratio of the sum of the actual amounts levied under section 124.226, subdivisions 1 and 4, to the sum of the permitted maximum levies under section 124.226, subdivisions 1 and 4.

Sec. 24. Minnesota Statutes 1996, section 124.225, subdivision 10, is amended to read:

Subd. 10. [DEPRECIATION.] (a) Any school district that owns school buses or mobile units shall may transfer annually from the undesignated fund balance account in its transportation general fund to the reserved fund balance account for bus purchases in its transportation general fund at least an amount equal to not to exceed 15 percent per year for districts operating a program under section 121.585 for grades 1 to 12 for all students in the district and 12-1/2 percent per year for other districts of the original cost of each type one or type two school bus or mobile unit until the original cost of each type one or type two school bus or mobile unit is fully amortized, plus 20 percent of the original cost of each type three bus included in the district's authorized cost under the provisions of subdivision 1, paragraph (b), clause (4), until the original cost of each type three bus is fully amortized, plus 33-1/3 percent of the cost to the district as of July 1 of each year for school bus reconditioning done by the department of corrections until the cost of the reconditioning is fully amortized; provided, if the district's transportation aid or levy is reduced pursuant to subdivision 8a because the appropriation for that year is insufficient, this amount shall be reduced in proportion to the reduction pursuant to subdivision 8a as a percentage of the district's transportation revenue under subdivision 7d eight years old.

(b) When a district finds that the transfers authorized under paragraph (a) are insufficient to eliminate a projected deficit in the reserved fund balance account for bus purchases, it may apply to the commissioner for permission to make an additional transfer. The commissioner must approve, modify, or deny the request within 60 days. The commissioner must not authorize a transfer under this paragraph in an amount greater than the amount of the projected deficit in the reserved fund balance account for bus purchases.

Sec. 25. Minnesota Statutes 1996, section 124.225, subdivision 13, is amended to read:

Subd. 13. [TARGETED NEEDS TRANSPORTATION REVENUE.] A district's targeted needs transportation revenue for the 1996-1997 and later 1997-1998 school years equals the sum of the special programs transportation revenue according to subdivision 14, the integration transportation revenue according to subdivision 15, and the nonpublic pupil transportation revenue aid according to subdivision 16.

Sec. 26. Minnesota Statutes 1996, section 124.225, subdivision 14, is amended to read:

Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A district's special programs transportation revenue for the 1996-1997 and later 1997-1998 school years equals the sum of:

(a) the district's actual cost in the base year for transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, paragraph (c), clause (5), times the ratio of the district's average daily membership for the current school year to the district's average daily membership for the base year; plus

(b) the greater of zero or 80 percent of the difference between:

(1) the district's actual cost in the current year for transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, paragraph (c), clause (5); and

(2) the amount computed in paragraph (a).

Sec. 27. Minnesota Statutes 1996, section 124.225, subdivision 15, is amended to read:

Subd. 15. [INTEGRATION TRANSPORTATION REVENUE.] A district's integration transportation revenue for the 1996-1997 and later 1997-1998 school years equals the following amounts:

(a) for independent school district No. 709, Duluth, $4 times the actual pupil units for the school year;

(b) for independent school district No. 625, St. Paul, $73 times the actual pupil units for the school year; and

Sec. 28. Minnesota Statutes 1996, section 124.225, subdivision 17, is amended to read:

Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) For fiscal years 1997 and 1998, a district's targeted needs transportation aid is the difference between its targeted needs transportation revenue under subdivision 13 and its targeted needs transportation levy under section 124.226, subdivision 10.

(b) If a district does not levy the entire amount permitted, aid must be reduced in proportion to the actual amount levied.

Sec. 29. Minnesota Statutes 1996, section 124.226, subdivision 4, is amended to read:

Subd. 4. [NONREGULAR TRANSPORTATION.] A school district may also make a levy for unreimbursed nonregular transportation costs pursuant to this subdivision.

For the 1995-1996 school year, The amount of the levy shall be the result of the following computation:

(1) multiply

(i) the amount of the district's nonregular transportation revenue under section 124.225, subdivision 7d, that is more than the product of $65 times the district's average daily membership, by

(ii) 50 percent;

(2) subtract the result in clause (1) from the district's total nonregular transportation revenue;

(3) multiply the result in clause (2) by the lesser of one or the ratio of

(i) the quotient derived by dividing the adjusted net tax capacity of the district for the year before the year the levy is certified by the average daily membership in the district for the school year to which the levy is attributable, to

(ii) $8,000.

Sec. 30. Minnesota Statutes 1996, section 124.226, subdivision 9, is amended to read:

Subd. 9. [LATE ACTIVITY BUSES.] (a) For taxes payable in 1996, A school district may levy an amount equal to the lesser of:

(1) the actual cost of late transportation home from school, between schools within a district, or between schools in one or more districts that have an agreement under sections 122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils involved in after school activities for the that school year beginning in the year the levy is certified; or

(2) two percent of the sum of the district's regular transportation revenue and the district's nonregular transportation revenue for that school year according to section 124.225, subdivision 7d.

(b) A district that levies under this section must provide late transportation from school for students participating in any academic-related activities provided by the district if transportation is provided for students participating in athletic activities.

(c) Notwithstanding section 121.904, 50 percent of the levy certified for taxes payable in 1994, and for each year thereafter the entire amount of this levy, shall be recognized as revenue for the fiscal year in which the levy is certified.

Sec. 31. Minnesota Statutes 1996, section 124.226, subdivision 10, is amended to read:

Subd. 10. [TARGETED NEEDS TRANSPORTATION LEVY.] A school district may make a levy for targeted needs transportation costs according to this subdivision. The amount of the levy shall be the result of the following computation:

(2) The targeted needs transportation levy equals the result in clause (1) times the lesser of one or the ratio of (i) the quotient derived by dividing the adjusted net tax capacity of the district for the year before the year the levy is certified by the actual pupil units in the district for the school year to which the levy is attributable, to (ii) $3,540.

Sec. 32. Minnesota Statutes 1996, section 124.912, subdivision 1, is amended to read:

Subdivision 1. [STATUTORY OBLIGATIONS.] (a) A school district may levy:

(1) the amount authorized for liabilities of dissolved districts pursuant to section 122.45;

(2) the amounts necessary to pay the district's obligations under section 268.06, subdivision 25; and the amounts necessary to pay for job placement services offered to employees who may become eligible for benefits pursuant to section 268.08 for the fiscal year the levy is certified;

(3) the amounts necessary to pay the district's obligations under section 127.05;

(4) the amounts authorized by section 122.531;

(5) the amounts necessary to pay the district's obligations under section 122.533; and

(6) for severance pay required by sections 120.08, subdivision 3, and 122.535, subdivision 6.

(b) Each year, a member district of an education district that levies under this subdivision must transfer the amount of revenue certified under paragraph (b) to the education district board according to this subdivision. By June 20 and November 30 of each year, an amount must be transferred equal to:

(1) 50 percent times

(2) the amount certified in paragraph (b) minus homestead and agricultural credit aid allocated for that levy according to section 273.1398, subdivision 6.

Sec. 33. Minnesota Statutes 1996, section 124.912, subdivision 2, is amended to read:

Subd. 2. [DESEGREGATION.] Each year, special school district No. 1, Minneapolis, may levy an amount not to exceed $197 times its actual pupil units for that fiscal year; independent school district No. 625, St. Paul, may levy an amount not to exceed $197 times its actual pupil units for that fiscal year; and independent school district No. 709, Duluth, may levy an amount not to exceed the sum of $660,000 and the amount raised by a tax rate of 2.0 percent times the adjusted net tax capacity of the district. Notwithstanding section 121.904, the entire amount of this levy shall be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155.

Sec. 34. Minnesota Statutes 1996, section 124.912, subdivision 3, is amended to read:

Subd. 3. [RULE COMPLIANCE.] Each year a district that is required to implement a plan according to the requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an amount not to exceed a net tax rate of 2.0 percent times the adjusted net tax capacity of the district for taxes payable in 1991 and thereafter. A district that levies according to subdivision 2 may not levy according to this subdivision. Notwithstanding section 121.904, the entire amount of this levy shall be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155.

Sec. 35. Minnesota Statutes 1996, section 124.916, subdivision 1, is amended to read:

(b) The school board of a joint vocational technical district formed under sections 136C.60 to 136C.69 and the school board of a school district may provide employer-paid hospital, medical, and dental benefits to a person who:

(1) is eligible for employer-paid insurance under collective bargaining agreements or personnel plans in effect on June 30, 1992;

(2) has at least 25 years of service credit in the public pension plan of which the person is a member on the day before retirement or, in the case of a teacher, has a total of at least 25 years of service credit in the teachers retirement association, a first-class city teacher retirement fund, or any combination of these;

(3) upon retirement is immediately eligible for a retirement annuity;

(4) is at least 55 and not yet 65 years of age; and

(5) retires on or after May 15, 1992, and before July 21, 1992.

A school board paying insurance under this subdivision may not exclude any eligible employees.

(c) An employee who is eligible both for the health insurance benefit under this subdivision and for an early retirement incentive under a collective bargaining agreement or personnel plan established by the employer must select either the early retirement incentive provided under the collective bargaining agreement personnel plan or the incentive provided under this subdivision, but may not receive both. For purposes of this subdivision, a person retires when the person terminates active employment and applies for retirement benefits. The retired employee is eligible for single and dependent coverages and employer payments to which the person was entitled immediately before retirement, subject to any changes in coverage and employer and employee payments through collective bargaining or personnel plans, for employees in positions equivalent to the position from which the employee retired. The retired employee is not eligible for employer-paid life insurance. Eligibility ceases when the retired employee attains the age of 65, or when the employee chooses not to receive the retirement benefits for which the employee has applied, or when the employee is eligible for employer-paid health insurance from a new employer. Coverages must be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program.

(d) Unilateral implementation of this section by a public employer is not an unfair labor practice for purposes of chapter 179A. The authority provided in this subdivision for an employer to pay health insurance costs for certain retired employees is not subject to the limits in section 179A.20, subdivision 2a.

(e) If a school district levies according to this subdivision, it may not also levy according to section 122.531, subdivision 9, for eligible employees.

Sec. 36. Minnesota Statutes 1996, section 124.916, subdivision 2, is amended to read:

Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes payable in 1996, 1997, 1998, and 1999 only, a school district may levy an amount up to the amount the district is required by the collective bargaining agreement in effect on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for licensed and nonlicensed employees who have terminated services in the employing district and withdrawn from active teaching service or other active service, as applicable, before July 1, 1992. The total amount of the levy each year may not exceed $300,000.

Notwithstanding section 121.904, 50 percent of the proceeds of this levy shall be recognized in the fiscal year in which it is certified.

Sec. 37. Minnesota Statutes 1996, section 124.916, subdivision 3, is amended to read:

(2) In 1979 and each year thereafter, any district which qualified in 1976 for an extra levy under paragraph (1) shall be allowed to levy the same amount as levied for retirement in 1978 under this clause reduced each year by ten percent of the difference between the amount levied for retirement in 1971 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 422.54 and the amount levied for retirement in 1975 under Minnesota Statutes 1974, section 275.127 and chapter 422A.

(3) In 1991 and each year thereafter, a district to which this subdivision applies may levy an additional amount required for contributions to the Minneapolis employees retirement fund as a result of the maximum dollar amount limitation on state contributions to the fund imposed under section 422A.101, subdivision 3. The additional levy shall not exceed the most recent amount certified by the board of the Minneapolis employees retirement fund as the district's share of the contribution requirement in excess of the maximum state contribution under section 422A.101, subdivision 3.

(4) For taxes payable in 1994 and thereafter, special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, may levy for the increase in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, section 1. Notwithstanding section 121.904, the entire amount of this levy may be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155.

(5) If the employer retirement fund contributions under section 354A.12, subdivision 2a, are increased for fiscal year 1994 or later fiscal years, special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, may levy in payable 1994 or later an amount equal to the amount derived by applying the net increase in the employer retirement fund contribution rate of the respective teacher retirement fund association between fiscal year 1993 and the fiscal year beginning in the year after the levy is certified to the total covered payroll of the applicable teacher retirement fund association. Notwithstanding section 121.904, the entire amount of this levy may be recognized as revenue for the fiscal year in which the levy is certified. This levy shall not be considered in computing the aid reduction under section 124.155. If an applicable school district levies under this paragraph, they may not levy under paragraph (4).

(6) In addition to the levy authorized under paragraph (5), special school district No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the contributions under section 423A.02, subdivision 3, and may also levy in payable 1994 or later an amount equal to the state aid contribution under section 354A.12, subdivision 3b. Independent school district No. 625, St. Paul, may levy payable in 1997 or later an amount equal to the supplemental contributions under section 423A.02, subdivision 3. Notwithstanding section 121.904, the entire amount of these levies may be recognized as revenue for the fiscal year in which the levy is certified. These levies shall not be considered in computing the aid reduction under section 124.155.

Sec. 38. Minnesota Statutes 1996, section 124.918, subdivision 6, is amended to read:

Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change enacted in law changes the levy authority for a school district or an intermediate school district for a fiscal year after the levy for that fiscal year has been certified by the district under section 275.07, the department of children, families, and learning shall adjust the next levy certified by the district by the amount of the change in levy authority for that fiscal year resulting from the change. Notwithstanding section 121.904, the entire amount for fiscal year 1992 and 50 percent for fiscal years thereafter of the levy adjustment must be recognized as revenue in the fiscal year the levy is certified, if sufficient levy resources are available under generally accepted accounting principles in the district fund where the adjustment is to occur. School districts that do not have sufficient levy resources available in the fund where the adjustment is to occur shall recognize in the fiscal year the levy is certified an amount equal to the levy resources available. The remaining adjustment amount shall be recognized as revenue in the fiscal year after the levy is certified.

Sec. 39. Minnesota Statutes 1996, section 124A.03, subdivision 1c, is amended to read:

Subd. 1c. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding subdivision 1b, a district's referendum allowance must not exceed the greater of:

(1) the district's referendum allowance for fiscal year 1994; or

(3) for a newly reorganized district created after July 1, 1994, the sum of the referendum revenue authority for the reorganizing districts for the fiscal year preceding the reorganization, divided by the sum of the actual pupil units of the reorganizing districts for the fiscal year preceding the reorganization.

Sec. 40. Minnesota Statutes 1996, section 124A.036, subdivision 5, is amended to read:

Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general education aid for districts must be adjusted for each pupil attending a nonresident district under sections 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. The adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount equal to the sum of:

(1) the general education revenue exclusive of compensatory basic skills revenue; and

(2) the referendum equalization revenue approved or renewed after July 1, 1997, attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this subdivision shall be increased by an amount equal to the sum of:

(1) the general education revenue exclusive of compensatory basic skills revenue; and

(2) the referendum equalization revenue approved or renewed after July 1, 1997, attributable to the pupil in the nonresident district.

(c) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district.

(d) The district of residence shall pay tuition to a district or an area learning center, operated according to paragraph (e), providing special instruction and services to a pupil with a disability, as defined in section 120.03, or a pupil, as defined in section 120.181, who is enrolled in a program listed in this subdivision. The tuition shall be equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for debt service and for capital expenditure facilities and equipment, and debt service but not including any amount for transportation, minus (2) the amount of general education aid, the amount of capital expenditure facilities aid and capital expenditure equipment aid received under section 124.245, subdivision 6, and special education aid, attributable to that pupil, that is received by the district providing special instruction and services.

(e) An area learning center operated by a service cooperative, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge tuition for pupils rather than to calculate general education aid adjustments under paragraph (a), (b), or (c). The tuition must be equal to the greater of the average general education revenue per pupil unit attributable to the pupil, or the actual cost of providing the instruction, excluding transportation costs, if the pupil meets the requirements of section 120.03 or 120.181.

Sec. 41. Minnesota Statutes 1996, section 124A.036, subdivision 6, is amended to read:

Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid for districts must be adjusted for each pupil attending a charter school under section 120.064. The adjustments must be made according to this subdivision.

(b) General education aid paid to a resident district must be reduced by an amount equal to the sum of:

(1) the general education revenue exclusive of compensatory basic skills revenue; and

(c) General education aid paid to a district in which a charter school not providing transportation according to section 120.064, subdivision 15, is located shall be increased by an amount equal to the product of: (1) the sum of $170, plus the transportation sparsity allowance for the district, plus the transportation transition allowance for the district; times (2) the pupil units attributable to the pupil.

(d) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district.

Sec. 42. Minnesota Statutes 1996, section 124A.04, subdivision 2, is amended to read:

Subd. 2. [1993 1999 AND LATER.] The training and experience index for fiscal year 1999 and later must be constructed in the following manner:

(a) The department shall construct a matrix that classifies teachers by the extent of training received in accredited institutions of higher education and by the years of experience that districts take into account in determining teacher salaries.

(b) The average salary for each cell of the matrix must be computed as follows using data from the second year of the previous biennium fiscal year 1997:

(1) For each school district, multiply the salary paid to full-time equivalent teachers with that combination of training and experience according to the district's teacher salary schedule by the number of actual pupil units in that district.

(2) Add the amounts computed in clause (1) for all districts in the state and divide the resulting sum by the total number of actual pupil units in all districts in the state that employ teachers.

(c) For each cell in the matrix, compute the ratio of the average salary in that cell to the average salary for all teachers in the state during fiscal year 1997.

(d) The index for each district that employs teachers equals the sum of: (i) for teachers employed in that district during fiscal year 1997 and the current fiscal year, the ratios for each teacher computed using data for fiscal year 1997; and (ii) for teachers employed in that district during the current fiscal year but not during fiscal year 1997, the ratio for teachers who are in their first year of teaching and who have no additional credits or degrees above a bachelor's degree divided by the number of teachers in that district. The index for a district that employs no teachers is zero.

Sec. 43. Minnesota Statutes 1996, section 124A.22, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal year 1996, the general education revenue for each district equals the sum of the district's basic revenue, compensatory education revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity revenue, and supplemental revenue.

(b) For fiscal year years 1997 and thereafter 1998, the general education revenue for each district equals the sum of the district's basic revenue, compensatory education revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total operating capital revenue, transition revenue, and supplemental revenue.

(b) For fiscal year 1999 and thereafter, the general education revenue for each district equals the sum of the district's basic revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity revenue, total operating capital revenue, transition revenue, and supplemental revenue.

Sec. 44. Minnesota Statutes 1996, section 124A.22, subdivision 2, as amended by Laws 1997, chapter 1, section 4, is amended to read:

Sec. 45. Minnesota Statutes 1996, section 124A.22, subdivision 3, is amended to read:

Subd. 3. [FISCAL YEAR 1998 COMPENSATORY EDUCATION REVENUE.] The compensatory education revenue for each district for fiscal year 1998 equals the formula allowance less $300 times the AFDC pupil units computed according to section 124.17, subdivision 1d.

Sec. 46. Minnesota Statutes 1996, section 124A.22, is amended by adding a subdivision to read:

Subd. 3a. [BASIC SKILLS REVENUE.] For fiscal year 1999 and thereafter, a school district's basic skills revenue equals the sum of:

(1) the formula allowance times the MFIP-S adjustment factor times the AFDC pupil units computed according to section 124.17, subdivision 1d; plus

(2) the limited English proficiency revenue according to section 124.273, subdivision 1g; plus

(3) $175 times the limited English proficiency pupil units according to section 124.17, subdivision 6; plus

(4) the lesser of: (i) $22 times the number of fund balance pupil units in kindergarten to grade 8; or (ii) the amount of district money provided to match basic skills revenue for the purposes described in section 124A.28.

The MFIP-S adjustment factor equals .877 for fiscal year 2000 and .862 for fiscal year 2001.

Sec. 47. Minnesota Statutes 1996, section 124A.22, subdivision 6, is amended to read:

Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's secondary sparsity revenue for a school year equals the sum of the results of the following calculation for each qualifying high school in the district:

(1) the formula allowance for the school year less $300, multiplied by

(2) the secondary average daily membership of the high school, multiplied by

(3) the quotient obtained by dividing 400 minus the secondary average daily membership by 400 plus the secondary daily membership, multiplied by

(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus 23 by ten.

(b) A newly formed school district that is the result of districts combining under the cooperation and combination program or consolidating under section 122.23 shall receive secondary sparsity revenue equal to the greater of: (1) the amount calculated under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary sparsity revenue the former school districts had in the year prior to consolidation, increased for any subsequent changes in the secondary sparsity formula.

Sec. 48. Minnesota Statutes 1996, section 124A.22, subdivision 6a, is amended to read:

Subd. 6a. [ELEMENTARY SPARSITY REVENUE.] A district's elementary sparsity revenue equals the sum of the following amounts for each qualifying elementary school in the district:

(1) the formula allowance for the year less $300, multiplied by

(2) the elementary average daily membership of the school, multiplied by

Sec. 49. Minnesota Statutes 1996, section 124A.22, subdivision 13b, is amended to read:

Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's transportation transition allowance for fiscal year 1997 equals the result of the following computation:

(1) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1997 is less than the fiscal year 1996 base allowance, the transportation transition allowance equals the fiscal year 1996 base allowance minus the result in subdivision 13a, paragraph (a), clause (iii).

(2) if the result in subdivision 13a, paragraph (b), for fiscal year 1997 is greater than the fiscal year 1996 base allowance and less than 110 percent of the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(3) if the result in subdivision 13a, paragraph (b), for fiscal year 1997 is greater than 110 percent of the fiscal year 1996 base allowance, the transportation transition allowance equals 110 percent of the fiscal year 1996 base allowance minus the result in subdivision 13a, paragraph (a), clause (iii).

(b) A district's transportation transition allowance for fiscal year 1998 equals the result of the following:

(1) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1998 is less than the fiscal year 1996 base allowance, the transportation transition allowance equals the fiscal year 1996 base allowance minus the result in subdivision 13a, paragraph (a), clause (iii); or

(2) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1998 is greater than or equal to the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(c) For fiscal years 1997 and 1998, a district's training and experience transition allowance is equal to the training and experience revenue the district would have received under Minnesota Statutes 1994, section 124A.22, subdivision 4, divided by the actual pupil units for fiscal year 1997 minus $130. For fiscal year 1999 and later, a district's training and experience transition allowance equals zero.

If the training and experience transition allowance is less than zero, the reduction shall be determined according to the following schedule:

(i) (1) for fiscal year 1997, the reduction is equal to .9 times the amount initially determined;

(ii) (2) for fiscal year 1998, the reduction is equal to .75 times the amount initially determined; and

(iii) for fiscal year 1999, the reduction is equal to .50 times the amount initially determined;

(iv) for fiscal year 2000, the reduction is equal to .25 times the amount initially determined; and

(v) for fiscal year 2001 and thereafter, the transition allowance shall not be less than zero

(3) a district's transition cooperation allowance equals the greater of: (i) zero; or (ii) the difference between $25,000 and the product of $67 times the district's actual pupil units for the 1997-1998 school year all divided by the district's actual pupil units for the 1997-1998 school year.

(d) (b) A district's transition allowance for fiscal year 1997 1999 and thereafter is equal to the sum of its transportation transition allowance and its training and experience its transition cooperation allowance.

Sec. 50. Minnesota Statutes 1996, section 124A.225, subdivision 4, is amended to read:

Subd. 4. [REVENUE USE.] (a) Revenue must be used according to either paragraph (b), (c), or (d).

(c) Notwithstanding paragraph (b), for fiscal year 1995, a district with exceptional need as defined in subdivision 6, paragraph (a), may use the revenue to reduce and maintain the district's instructor-to-learner ratios in kindergarten through grade 6 to a level that is at least 2.0 less than the district's adopted staffing ratio, if the remaining learning and development revenue is used to continue or initiate staffing patterns that meet the needs of a diverse student population. Programs to meet the needs of a diverse student population may include programs for at-risk pupils and learning enrichment programs.

(d) For fiscal year 1995 only, in any school building that meets the characteristics of exceptional need as defined in subdivision 6, paragraph (b), a district may use the revenue to employ education assistants or aides supervised by a learner's regular instructor to assist learners in those school buildings.

(e) The revenue may be used to prepare and use an individualized learning plan for each learner. A district must not increase the district wide instructor-learner ratios in other grades as a result of reducing instructor-learner ratios in kindergarten through grade 6. Revenue may not be used to provide instructor preparation time or to provide the district's share of revenue required under section 124.311. A school district may use a portion of the revenue reserved under this section to employ up to the same number of full-time equivalent education assistants or aides as the district employed during the 1992-1993 school year under Minnesota Statutes 1992, section 124.331, subdivision 2.

Sec. 51. Minnesota Statutes 1996, section 124A.23, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION TAX RATE.] The commissioner shall establish the general education tax rate by July 1 of each year for levies payable in the following year. The general education tax capacity rate shall be a rate, rounded up to the nearest tenth of a percent, that, when applied to the adjusted net tax capacity for all districts, raises the amount specified in this subdivision. The general education tax rate shall be the rate that raises $1,054,000,000 for fiscal year 1996 and $1,359,000,000 for fiscal year 1997 and 1998, $1,368,000,000 for fiscal year 1999, and $1,408,000,000 for fiscal year 2000, and later fiscal years. The general education tax rate may not be changed due to changes or, corrections made to a district's adjusted net tax capacity after the tax rate has been established.

Sec. 52. Minnesota Statutes 1996, section 124A.23, subdivision 3, is amended to read:

Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE FORMULA.] If the amount of the general education levy for a district exceeds the district's general education revenue, excluding training and experience transition revenue and supplemental revenue, the amount of the general education levy shall be limited to the following:

(1) the district's general education revenue, excluding training and experience transition revenue and supplemental revenue; plus

(2) the amount of the aid reduction for the same school year according to section 124A.24; minus

(3) payments made for the same school year according to section 124A.035, subdivision 4.

For purposes of statutory cross-reference, a levy made according to this subdivision shall be construed to be the levy made according to subdivision 2.

Sec. 53. Minnesota Statutes 1996, section 124A.26, subdivision 1, is amended to read:

Subdivision 1. [REVENUE REDUCTION.] A district's general education revenue for a school year shall be reduced if the estimated net unappropriated operating fund balance as of June 30 in the prior school year exceeds 25 percent of the formula allowance for the current fiscal year times the fund balance pupil units in the prior year. For purposes of this subdivision and section 124.243, subdivision 2, fund balance pupil units means the number of resident pupil units in average daily membership, including shared time pupils, according to section 124A.02, subdivision 20, plus

(2) the sum of the resident pupils attending other districts for which general education aid adjustments are made according to section 124A.036, subdivision 5, plus pupils for whom payment is made according to section 126.22, subdivision 8, or 126.23. The amount of the reduction shall equal the lesser of:

(1) the amount of the excess, or

(2) $250 times the actual pupil units for the school year.

The final adjustment payments made under section 124.195, subdivision 6, must be adjusted to reflect actual net operating fund balances as of June 30 of the prior school year.

Sec. 54. Minnesota Statutes 1996, section 124A.28, is amended to read:

124A.28 [COMPENSATORY EDUCATION BASIC SKILLS REVENUE.]

Subdivision 1. [USE OF THE REVENUE.] The compensatory education basic skills revenue under section 124A.22, subdivision 3 3a, must be used to meet the educational needs of pupils whose educational achievement progress toward meeting state or local content or performance standards is below the level that is appropriate for pupils learners of their age. These needs may be met by providing the Any of the following may be provided to meet these learners' needs:

(1) direct instructional services under the assurance of mastery program according to section 124.311 124.3111;

(2) remedial instruction in reading, language arts, and mathematics, other content areas, or study skills to improve the achievement level of these pupils learners;

(3) additional teachers and teacher aides to provide more individualized instruction to these pupils learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;

(4) summer programs that enable these pupils to improve their achievement or that reemphasize material taught during the regular school year;

(5) in-service education comprehensive and ongoing staff development consistent with district and site plans according to section 126.70, for teachers, teacher aides, principals, and other personnel to improve their ability to recognize identify the needs of these pupils learners and provide appropriate responses to the pupils' needs remediation, intervention, accommodations, or modifications;

(6) for instructional material for these pupils including: textbooks, workbooks, periodicals, pamphlets, photographs, reproductions, filmstrips, prepared slides, prerecorded video programs, sound recordings, desk charts, games, study prints and pictures, desk maps, models, learning kits, blocks and cubes, flashcards, instructional computer software programs, pencils, pens, crayons, notebooks, duplicating fluids, and papers materials and technology appropriate for meeting the individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance self-concept, provide health services, provide nutrition services, provide a safe and secure learning environment, provide coordination for pupils receiving services from other governmental agencies, provide psychological services to determine the level of social, emotional, cognitive, and intellectual development, and provide counseling services, guidance services, and social work services;

(8) bilingual programs, bicultural programs, and programs for pupils learners of limited English proficiency;

(9) all day kindergarten;

(10) extended school day and extended school year programs; and

(11) substantial parent involvement in developing and implementing remedial education or intervention plans for a learner, including learning contracts between the school, the learner, and the parent that establish achievement goals and responsibilities of the learner and the learner's parent or guardian; and

Subd. 1a. [BUILDING ALLOCATION.] A district must consider the concentration of children from low-income families, children with limited English proficiency, and children whose progress toward meeting state or local content or performance standards is below the level that is appropriate for learners of their age in each school building in the district when allocating compensatory basic skills revenue.

Subd. 2. [SEPARATE ACCOUNTS.] Each district that receives compensatory education basic skills revenue shall maintain separate accounts to identify expenditures for salaries and programs related to this revenue.

Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district that receives compensatory education basic skills revenue shall submit a report identifying the expenditures it incurred in providing compensatory education to the pupils described in to meet the needs of eligible learners under subdivision 1. The report must conform to uniform financial and reporting standards established for this purpose.

Sec. 55. Laws 1991, chapter 265, article 1, section 30, as amended by Laws 1993, chapter 224, article 8, section 19, is amended to read:

Sec. 30. [BADGER SCHOOL DISTRICT FUND BALANCE.]

If independent school district No. 676, Badger, receives payment of delinquent property taxes from one taxpayer and the payment is more than five percent of the total property taxes paid in the fiscal year in which the payment is received, general education revenue for the district shall not be reduced according to Minnesota Statutes, section 124A.26, subdivision 1, for an excess fund balance attributed to the payment for the following five ten fiscal years.

Sec. 56. Laws 1992, chapter 499, article 7, section 31, is amended to read:

Sec. 31. [REPEALER.]

Minnesota Statutes 1990, sections 124A.02, subdivision 24; 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 1; and 124A.29, subdivision 1, are repealed effective June 30, 1999; Laws 1991, chapter 265, article 7, section 35, is repealed.

Sec. 57. Laws 1995, First Special Session chapter 3, article 1, section 56, is amended to read:

Sec. 56. [SUPPLEMENTAL REVENUE REDUCTION.]

For fiscal years 1996 and 1997, If a district's ratio of 1992 adjusted net tax capacity divided by 1994-1995 actual pupil units to $9,025 is less than or equal to .25, then the difference under Minnesota Statutes, section 124A.22, subdivision 9, clause (2), is equal to $25 for purposes of computing the district's supplemental revenue under Minnesota Statutes, section 124A.22, subdivision 8. For purposes of computing the referendum allowance reduction under Minnesota Statutes, section 124A.03, subdivision 3b, the supplemental revenue reduction shall be computed according to Minnesota Statutes, section 124A.22, subdivision 9.

Sec. 58. Laws 1995, First Special Session chapter 3, article 2, section 52, is amended to read:

Sec. 52. [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.]

Minnesota Statutes 1994, sections 124.225, subdivisions 1, 3a, 7a, 7b, 7d, 7e, 8a, and 8k, 8m, and 10; and 124.226, subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids payable in fiscal years 1997 and 1998 or to levies made in 1995 and 1996 for taxes payable in 1996 and 1997.

Sec. 59. [PILOT PROJECT.]

design and implementation of the four-period day model. If one or more site councils determine a four-period day model is not desirable, the site council shall report its recommendations back to the board and need not proceed with the development and implementation of the model.

Subd. 2. [MONITORING AND REPORT.] The south Washington county school board shall develop a system for monitoring and evaluating the development and implementation of the four-period day models at its high schools. The board shall monitor and evaluate: (1) the process used by the site council to discuss, develop, and implement a four-period day; and (2) the academic outcomes of students after the four-period day has been fully implemented. To evaluate the academic outcomes of students, the district shall compare the academic achievement of its high school students with the achievement of students in similar school districts using a six-period day model. The board shall report the results of its evaluation to the commissioner of children, families, and learning on August 30, 1998, and August 30, 1999. The reports shall include a detailed description of the site-based, decision-making model that was used to develop and implement the four-period day and the steps that were taken to successfully implement and evaluate the model.

Subd. 3. [CLASS SIZE MITIGATION PILOT PROJECT.] Independent school district No. 833, South Washington County, shall complete a class size mitigation pilot project to explore options for improving learning outcomes in elementary and junior high classrooms with 30 or more students. The options for mitigating the adverse impacts of large class sizes shall be developed and implemented using a site-based management decision-making process. The district shall report the results of its pilot project to the commissioner of children, families, and learning by August 30, 1998.

Sec. 60. [RESTORATION OF REVENUE LOST TO FUND BALANCE REDUCTION; MADELIA.]

Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota Statutes, section 124A.26, subdivision 3, general education aid for independent school district No. 837, Madelia, shall not be reduced for fiscal year 1997.

Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 837, Madelia, may make a positive levy adjustment for taxes payable in 1998 equal to the amount of the general education levy reduction required under Minnesota Statutes, section 124A.26, subdivision 2, attributed to fiscal year 1997.

Sec. 61. [RESTORATION OF REVENUE LOST TO FUND BALANCE REDUCTION; HERMAN-NORCROSS.]

Subdivision 1. [AID ADJUSTMENT.] Notwithstanding Minnesota Statutes, section 124A.26, subdivision 3, general education aid for independent school district No. 264, Herman-Norcross, shall not be reduced for fiscal year 1997.

Subd. 2. [LEVY ADJUSTMENT.] Independent school district No. 264, Herman-Norcross, may make a positive levy adjustment for taxes payable in 1998 equal to the amount of the general education levy reduction required under Minnesota Statutes, section 124A.26, subdivision 2, attributed to fiscal year 1997.

Sec. 62. [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF THE K-12 APPROPRIATIONS CAPS.]

Notwithstanding Minnesota Statutes, section 124.918, subdivision 6, a school district may spread any positive referendum levy adjustments for fiscal year 1998 resulting from the enactment of Laws 1997, chapter 1, over a three-year period beginning with taxes payable in 1998.

Sec. 63. [BUS PURCHASE LEVY.]

For 1997 taxes payable in 1998, a school district may levy the amount necessary to eliminate the deficit in the reserved fund balance account for bus purchases in its transportation fund as of June 30, 1996.

Sec. 64. [SHIFT SIMPLIFICATION APPROPRIATION.]

Sec. 65. [TRANSPORTATION GRANTS TO ACCOMMODATE LATER SCHOOL START TIMES.]

Subdivision 1. [ESTABLISHMENT.] A grant program for fiscal year 1998 is established to provide adjustments in transportation funding to school districts establishing school start times after 8:00 a.m. The purpose of the program is to explore the school district options for supporting family schedules, reducing teenagers' sleep deprivation and increasing their learning alertness, keeping children safe from unstructured time alone in the afternoon, and limiting opportunities for children to engage in at-risk behavior.

Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a school district with an administrative office located in the seven-county metropolitan area. To be eligible for a grant, a school district must not require a secondary school enrolling students in any portion of grades 7 through 12 within the district to begin the school day before 8:00 a.m.

Subd. 3. [APPLICATION PROCESS.] To obtain a grant for adjustments in transportation funding to accommodate an 8:00 a.m. or later school start time, a district must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner prescribes. The application must indicate the district's school start time and describe how the district anticipates adjusting its transportation schedules to accommodate that start time. The commissioner may require an applicant to provide additional information.

Subd. 4. [GRANT AWARDS; PROCEEDS.] The commissioner may award up to ten grants of up to $50,000 per grant. The commissioner shall base the amount of the grant on the number of children and families expected to be affected by the later school start time. Grant recipients shall use the money for transportation adjustments to accommodate the later school start time.

Subd. 5. [EVALUATION.] The commissioner shall evaluate the impact of the program on the grant recipients and recommend to the education committees of the legislature by February 15, 1999, whether to extend the program.

Sec. 66. [PERMANENT SCHOOL FUND PORTFOLIO RESTRUCTURING.]

The state board of investment is encouraged to shift the portfolio of permanent school fund investments so that the portfolio is more evenly balanced between equities and bonds.

Sec. 67. [PRIVATE ALTERNATIVE SCHOOL EVALUATION.]

The state board of education shall evaluate the performance of private alternative schools authorized according to Minnesota Statutes, section 126.22.

The state board may request any necessary information from the private alternative school or the contracting school district. The state board may provide assistance to a school district in evaluating a private alternative school that has been contracted with by a school board. The board must report annually to the education committees of the legislature on the results of its evaluations.

Sec. 68. [LEP CONCENTRATION AID; FISCAL YEAR 1998.]

For fiscal year 1998 only, a school district's compensatory revenue under Minnesota Statutes, section 124A.22, subdivision 3, is increased by LEP concentration aid. Fiscal year 1998 LEP concentration aid equals $175 times the district's LEP pupil units determined according to article 2, section 3.

Sec. 69. [CONVERSION TO MFIP-S.]

Sec. 70. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For general and supplemental education aid:

$2,522,599,000 . . . . . 1998

$2,496,758,000 . . . . . 1999

The 1998 appropriation includes $227,451,000 for 1997 and $2,295,148,000 for 1998.

The 1999 appropriation includes $255,016,000 for 1998 and $2,241,742,000 for 1999.

Of the 1998 appropriation, the first $113,800,000 is from the education aids reserve of the general fund.

Subd. 3. [TRANSPORTATION AID.] For transportation aid according to Minnesota Statutes, section 124.225:

$172,141,000 . . . . . 1999

The appropriation is based on an aid entitlement of $191,267,000.

Subd. 4. [TRANSPORTATION SAFETY.] For student transportation safety aid according to Minnesota Statutes, section 124.225, subdivision 8m:

$3,430,000 . . . . . 1998

$3,458,000 . . . . . 1999

The 1998 appropriation includes $129,000 for 1997 and $3,301,000 for 1998.

The 1999 appropriation includes $144,000 for 1997 and $3,314,000 for 1998.

Up to $2,000,000 each year is for school districts for school bus safety projects including, but not limited to: (1) costs associated with purchasing and retrofitting school buses with seatbelts; (2) adult bus monitors; (3) video cameras; (4) crossing arms; or (5) strobe lights.

Subd. 5. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For transportation of pupils attending post-secondary institutions according to Minnesota Statutes, section 123.3514, or for transportation of pupils attending nonresident districts according to Minnesota Statutes, section 120.062:

$102,000 . . . . . 1998

$102,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 6. [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] To expand the wide area transportation service project:

$100,000 . . . . . 1998

The purpose is to expand the project for the computerized mapping and scheduling programs for school districts to jointly provide transportation services for low-incidence programs in the metropolitan area. These services include, but are not limited to, transportation for special education, nonpublic pupils, results-oriented charter schools, enrollment options programs, area learning center programs, and desegregation programs. The department shall work with representatives of the affected programs, transportation managers from both metropolitan and rural districts, and the metropolitan council. The department shall contract for services as appropriate. The project shall consider the relationship of education transportation with transportation services provided by noneducation agencies.

Any balance in the first year does not cancel but is available in the second year.

Subd. 7. [INTERDISTRICT DESEGREGATION OR INTEGRATION TRANSPORTATION GRANTS.] For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124.227:

$800,000 . . . . . 1998

$970,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 8. [TARGETED NEEDS TRANSPORTATION AID.] For aid payments for targeted needs transportation aid under Minnesota Statutes, section 124.225, subdivision 13:

$76,195,000 . . . . . 1998

$ 7,671,000 . . . . . 1999

The 1998 appropriation includes $7,148,000 for 1997 and $69,047,000 for 1998.

The 1999 appropriation includes $7,671,000 for 1998 and $0 for 1999.

Subd. 9. [COMPUTERIZED TRANSPORTATION ROUTING.] For a grant to the Minnesota river valley special education cooperative, joint powers district No. 993, to establish and implement a computerized transportation routing system for special education students:

$70,000 . . . . . 1998

This appropriation is available until June 30, 1998.

Subd. 10. [HEALTH AND SAFETY AID.] For health and safety aid according to Minnesota Statutes, section 124.83, subdivision 5:

$14,091,000 . . . . . 1998

$14,179,000 . . . . . 1999

The 1998 appropriation includes $1,132,000 for 1997 and $12,959,000 for 1998.

The 1999 appropriation includes $1,440,000 for 1998 and $12,739,000 for 1999.

Subd. 11. [DEBT SERVICE AID.] For debt service aid according to Minnesota Statutes, section 124.95, subdivision 5:

$35,679,000 . . . . . 1998

The 1998 appropriation includes $3,313,000 for 1997 and $32,366,000 for 1998.

The 1999 appropriation includes $3,597,000 for 1998 and $34,389,000 for 1999.

Subd. 12. [MODEL FOUR-PERIOD DAY GRANT.] For a grant to independent school district No. 833, south Washington county, for the development and implementation of a model four-period day curriculum using a site-based, decision-making model:

$200,000 . . . . . 1998

Up to $100,000 of the grant funds may be used for all costs associated with the development and implementation of the model, including, but not limited to, staff development, curriculum development, textbooks, equipment and supplies, and salaries and benefits of the additional teachers necessary to fully staff the expanded number of class sections. No funds shall be dispersed by the commissioner unless at least one site council proceeds to fully develop and implement a model four-period day curriculum.

Up to $100,000 of the grant funds may be used for the class size mitigation pilot project.

This appropriation is available until June 30, 1999.

Subd. 13. [SCHOOL START TIME GRANTS.] For grants to provide adjustments in transportation funding to school districts establishing school start times after 8:00 a.m.

$500,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Sec. 71. [REPEALER.]

(a) Minnesota Statutes 1996, sections 121.904, subdivision 4d; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; and 124A.73, are repealed.

(b) Minnesota Statutes 1996, sections 124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 10; and 124A.22, subdivisions 13 and 13a, are repealed effective for revenue for fiscal year 1999.

Sec. 72. [EFFECTIVE DATE.]

(a) Sections 2, 12, 14 to 16, 24, 33 to 38, 55, 58, 60, 61, and 64 are effective the day following final enactment.

(b) Sections 47, 49, and 54 are effective for fiscal year 1999.

Section 1. Minnesota Statutes 1996, section 120.181, is amended to read:

120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; EDUCATION AND TRANSPORTATION.]

The responsibility for providing instruction and transportation for a pupil without a disability who has a short-term or temporary physical or emotional illness or disability, as determined by the standards of the state board, and who is temporarily placed for care and treatment for that illness or disability, shall be determined as provided in this section.

(b) Prior to the placement of a pupil for care and treatment, the district of residence shall be notified and provided an opportunity to participate in the placement decision. When an immediate emergency placement is necessary and time does not permit resident district participation in the placement decision, the district in which the pupil is temporarily placed, if different from the district of residence, shall notify the district of residence of the emergency placement within 15 days of the placement.

(c) When a pupil without a disability is temporarily placed for care and treatment in a day program and the pupil continues to live within the district of residence during the care and treatment, the district of residence shall provide instruction and necessary transportation for the pupil. The district may provide the instruction at a school within the district of residence, at the pupil's residence, or in the case of a placement outside of the resident district, in the district in which the day treatment program is located by paying tuition to that district. The district of placement may contract with a facility to provide instruction by teachers licensed by the state board of teaching.

(d) When a pupil without a disability is temporarily placed in a residential program for care and treatment, the district in which the pupil is placed shall provide instruction for the pupil and necessary transportation while the pupil is receiving instruction, and in the case of a placement outside of the district of residence, the nonresident district shall bill the district of residence for the actual cost of providing the instruction for the regular school year and for summer school, excluding transportation costs. When a pupil without a disability is temporarily placed in a residential program outside the district of residence, the administrator of the court placing the pupil shall send timely written notice of the placement to the district of residence. The district of placement may contract with a residential facility to provide instruction by teachers licensed by the state board of teaching.

(e) The district of residence shall include the pupil in its residence count of pupil units and pay tuition as provided in section 124.18 to the district providing the instruction. Transportation costs shall be paid by the district providing the transportation and the state shall pay transportation aid to that district. For purposes of computing state transportation aid, pupils governed by this subdivision shall be included in the disabled transportation category.

Sec. 2. Minnesota Statutes 1996, section 124.17, subdivision 4, is amended to read:

Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is enrolled in a learning year program according to under section 121.585, an area learning center according to under sections 124C.45 and 124C.46, or an alternative program approved by the commissioner, for more than 1,020 hours in a school year for a secondary student and for more than 935 hours in a school year for an elementary student, that pupil may be counted as more than one pupil in average daily membership. The amount in excess of one pupil must be determined by the ratio of the number of hours of instruction provided to that pupil in excess of 1,020 hours to 1,020 for a secondary pupil and of 935 hours to 935 for an elementary pupil. Hours that occur after the close of the instructional year in June shall be attributable to the following fiscal year.

(b)(i) To receive general education revenue for a pupil in an alternative program that has an independent study component, a school district must meet the requirements in this paragraph. The school district must develop with the pupil a continual learning plan for the pupil. A district must allow a minor pupil's parent or guardian to participate in developing the plan, if the parent or guardian wants to participate. The plan must identify the learning experiences and expected outcomes needed for satisfactory credit for the year and for graduation. The plan must be updated each year. Each school district that has a state-approved public alternative program must reserve revenue in an amount equal to at least 90 percent of the district's per pupil general education revenue times the number of pupils attending a state-approved public alternative program. The amount of reserved revenue available under this subdivision may only be spent for program costs associated with the state-approved public alternative program.

(iii) General education revenue for a pupil in an approved alternative program that has an independent study component must be paid for each hour of teacher contact time and each hour of independent study time completed toward a credit or graduation standards necessary for graduation. Average daily membership for a pupil shall equal the number of hours of teacher contact time and independent study time divided by 1,020.

(iv) For an alternative program having an independent study component, the commissioner shall require a description of the courses in the program, the kinds of independent study involved, the expected learning outcomes of the courses, and the means of measuring student performance against the expected outcomes.

Sec. 3. Minnesota Statutes 1996, section 124.17, is amended by adding a subdivision to read:

Subd. 6. [LEP PUPIL UNITS.] (a) Limited English proficiency pupil units for fiscal year 1998 and thereafter shall be determined according to this subdivision.

(b) The limited English proficiency concentration percentage for a district equals the product of 100 times the ratio of:

(1) the number of pupils of limited English proficiency residing in the district during the current fiscal year; to

(2) the number of pupils in average daily membership residing in the district.

(c) The limited English proficiency pupil units for each pupil enrolled in a program for pupils of limited English proficiency in accordance with sections 126.261 to 126.269 equals the lesser of one or the quotient obtained by dividing the limited English proficiency concentration percentage for the pupil's district of residence by 11.5.

(d) Limited English proficiency pupil units shall be counted by the district of enrollment.

Sec. 4. Minnesota Statutes 1996, section 124.248, subdivision 3, is amended to read:

Subd. 3. [SPECIAL EDUCATION AND LIMITED ENGLISH PROFICIENCY AID.] Except as provided in subdivision 1a, paragraph (b), special education aid shall be paid to a charter school according to sections 124.3201 and 124.3202, as though it were a school district. The charter school may charge tuition to the district of residence as provided in section 120.17, subdivision 4. Limited English proficiency programs aid shall be paid to a charter school according to section 124.273 as though it were a school district. The charter school shall allocate its special education levy equalization revenue to the resident districts of the pupils attending the charter school. The districts of residence shall levy as though they were participating in a cooperative, as provided in section 124.321, subdivision 3.

Sec. 5. Minnesota Statutes 1996, section 124.2613, subdivision 3, is amended to read:

Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner shall rank all school sites with kindergarten programs that do not exclusively serve students under section 120.17. The ranking must be from highest to lowest based on the site's free and reduced lunch count as a percent of the fall enrollment using the preceding October 1 enrollment data. Once a school site is calculated to be eligible, it remains eligible for the duration of the pilot program. For each school site, the percentage used to calculate the ranking must be the greater of (1) the percent of the fall kindergarten enrollment receiving free and reduced lunch, or (2) the percent of the total fall enrollment receiving free and reduced lunch. The list of ranked sites must be separated into the following geographic areas: Minneapolis district, St. Paul district, suburban Twin Cities districts in the seven-county metropolitan area, and school districts in greater Minnesota.

Sec. 6. Minnesota Statutes 1996, section 124.2613, subdivision 6, is amended to read:

Subd. 6. [PREPAREDNESS REVENUE.] (a) A qualifying school district is eligible for first-grade preparedness revenue equal to the basic formula allowance for that year times the number of pupil units calculated according to paragraph (b) in each qualifying school site. If the first-grade preparedness revenue is insufficient to fully fund the formula amounts, the commissioner shall prorate the revenue provided to each qualifying school site.

(b) A pupil enrolled in a half-day first-grade preparedness program under this section is counted as .53 pupil units. A pupil enrolled in a full-day first-grade preparedness program under this section is counted as a kindergarten pupil under section 124.17, subdivision 1, plus an additional .53 pupil units.

(c) This revenue must supplement and not replace compensatory revenue that the district uses for the same or similar purposes under chapter 124A.

(d) A pupil enrolled in the first grade preparedness program at a qualifying school site is eligible for transportation under section 123.39, subdivision 1.

(e) For fiscal year 1998, first grade preparedness revenue paid to a charter school for which a school district is providing transportation according to section 120.064, subdivision 15, shall be decreased by an amount equal to the product of $170 times the pupil units calculated according to paragraph (b). This amount shall be paid to the school district for transportation costs.

Sec. 7. Minnesota Statutes 1996, section 124.273, subdivision 1d, is amended to read:

Subd. 1d. [LEP BASE REVENUE.] (a) The limited English proficiency programs base revenue equals the sum of the following amounts, computed using base year data:

(1) 68 percent of the salary of one full-time equivalent teacher for each 40 pupils of limited English proficiency enrolled, or 68 percent of the salary of one-half of a full-time teacher in a district with 20 or fewer pupils of limited English proficiency enrolled; and

(2) for supplies and equipment purchased or rented for use in the instruction of pupils of limited English proficiency an amount equal to 47 percent of the sum actually spent by the district but not to exceed an average of $47 in any one school year for each pupil of limited English proficiency receiving instruction.

(b) For the purposes of this subdivision, a teacher includes nonlicensed personnel who provide direct instruction to students of limited English proficiency under the supervision of a licensed teacher.

(c) If requested by a school district operating a limited English proficiency program during the base year for less than the full school year, the commissioner may adjust the base revenue to reflect the expenditures that would have occurred during the base year had the program been operated for the full school year.

Sec. 8. Minnesota Statutes 1996, section 124.273, subdivision 1e, is amended to read:

Subd. 1e. [AID.] A district's limited English proficiency aid for fiscal year 1996 and later 1998 equals the aid percentage factor under section 124.3201, subdivision 1, times the district's limited English proficiency revenue.

Sec. 9. Minnesota Statutes 1996, section 124.273, subdivision 1f, is amended to read:

Subd. 1f. [STATE TOTAL LEP REVENUE.] (a) The state total limited English proficiency programs revenue for fiscal year 1996 1998 equals $12,202,000 $14,629,000. The state total limited English proficiency programs revenue for fiscal year 1997 1999 equals $13,299,000 $16,092,000.

(b) The state total limited English proficiency programs revenue for later fiscal years equals:

(2) the program growth factor under section 124.3201, subdivision 1; times

(3) the ratio of the state total number of pupils with limited English proficiency for the current fiscal year to the state total number of pupils with limited English proficiency for the preceding fiscal year.

Sec. 10. Minnesota Statutes 1996, section 124.273, subdivision 5, is amended to read:

Subd. 5. [NOTIFICATION; AID PAYMENTS REVENUE.] The department must promptly inform each applicant district of the amount of aid revenue it will receive pursuant to this section.

Sec. 11. [124.3111] [ASSURANCE OF MASTERY PROGRAMS.]

Subdivision 1. [ELIGIBLE DISTRICTS.] A district with a local process to review curriculum and instruction may provide an assurance of mastery program to eligible pupils.

Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive services through an assurance of mastery program if the pupil has not demonstrated progress toward mastering the required graduation standards, after receiving instruction that was designed to enable the pupil to make progress toward mastering the required graduation standards in a regular classroom setting. To determine pupil eligibility, a district must use a process adopted by the school board to review curriculum and instruction, for the subjects and at the grade level at which the district uses the revenue.

Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery programs may provide direct instructional services to an eligible pupil, or a group of eligible pupils, under the following conditions in paragraphs (b) to (d).

(b) Instruction may be provided at one or more grade levels from kindergarten to grade 8 and for students in grades 9 through 12 who have failed the basic skills tests. If an assessment of pupils' needs within a district demonstrates that the eligible pupils in grades kindergarten to grade 8 are being appropriately served, a district may serve eligible pupils in grades 9 to 12.

(c) Instruction must be provided under the supervision of the eligible pupil's regular classroom teacher. Instruction may be provided by the eligible pupil's classroom teacher, by another teacher, by a team of teachers, or by an education assistant or aide. A special education teacher may provide instruction, but instruction that is provided under this section is not eligible for aid under section 124.3201.

(d) The instruction that is provided must differ from the initial instruction the pupil received in the regular classroom setting. The instruction may differ by presenting different curriculum than was initially presented in the regular classroom or by presenting the same curriculum:

(1) at a different rate or in a different sequence than it was initially presented;

(2) using different teaching methods or techniques than were used initially; or

(3) using different instructional materials than were used initially.

Sec. 12. Minnesota Statutes 1996, section 124.312, subdivision 4, is amended to read:

Subd. 4. [INTEGRATION REVENUE.] For fiscal year years 1996, 1997, and later fiscal years 1998, integration revenue equals the sum of integration aid and integration levy under section 124.912, subdivision 2.

Sec. 13. Minnesota Statutes 1996, section 124.312, subdivision 5, is amended to read:

Subd. 5. [INTEGRATION AID.] For fiscal year years 1996, 1997, and later fiscal years 1998, integration aid equals the following amounts:

(1) for independent school district No. 709, Duluth, $1,385,000;

(2) for independent school district No. 625, St. Paul, $8,090,700; and

Sec. 14. Minnesota Statutes 1996, section 124.313, is amended to read:

124.313 [TARGETED NEEDS REVENUE.]

For fiscal year years 1996, 1997, and thereafter 1998, a school district's targeted needs revenue equals the sum of:

(1) assurance of mastery revenue according to section 124.311; plus

(2) the district's limited English proficiency revenue computed according to section 124.273, subdivision 1d; plus

(3) integration revenue computed according to section 124.312, subdivision 4.

Sec. 15. Minnesota Statutes 1996, section 124.314, subdivision 1, is amended to read:

Subdivision 1. [AID.] For fiscal year years 1996, 1997, and thereafter 1998, a school district's targeted needs aid equals the sum of its assurance of mastery aid according to section 124.311, its limited English proficiency aid according to section 124.273, subdivision 1e, and its integration aid according to section 124.312, subdivision 5.

Sec. 16. Minnesota Statutes 1996, section 124.314, subdivision 2, is amended to read:

Subd. 2. [LEVY.] For fiscal year years 1996, 1997, and thereafter 1998, a school district's targeted needs levy equals the sum of its integration levy under section 124.912, subdivision 2, and that portion of its special education levy attributed to the limited English proficiency program.

Sec. 17. [124.315] [INTEGRATION REVENUE.]

Subdivision 1. [USE OF THE REVENUE.] Integration revenue under this section must be used for programs established under a desegregation plan mandated by the state board or under court order, to increase learning opportunities and reduce the learning gap between learners living in high concentrations of poverty and their peers.

Subd. 2. [SEPARATE ACCOUNT.] Integration revenue shall be maintained in a separate account to identify expenditures for salaries and programs related to this revenue.

Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and later fiscal years, integration revenue equals the following amounts:

(1) for independent school district No. 709, Duluth, $193 times the actual pupil units for the school year;

(2) for independent school district No. 625, St. Paul, $427 times the actual pupil units for the school year;

(3) for special school district No. 1, Minneapolis, $523 times the actual pupil units for the school year; and

(4) for a district not listed in clause (1), (2), or (3) that is required to implement a plan according to the requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, the lesser of the actual cost of implementing the plan during the fiscal year or $93 times the actual pupil units for the school year.

Subd. 4. [INTEGRATION LEVY.] A district may levy an amount equal to 46 percent of the district's integration revenue as defined in subdivision 3.

Subd. 5. [INTEGRATION AID.] A district's integration aid equals 54 percent of the district's integration revenue as defined in subdivision 3.

(b) Aid paid to the district of the pupil's residence must be reduced by an amount equal to the revenue per actual pupil unit of the resident district times the number of actual pupil units attributable to the pupil for the time the pupil is enrolled in a nonresident district.

(c) Aid paid to a district serving nonresidents must be increased by an amount equal to the aid reduction to the resident district under paragraphs (b) and (d).

(d) If the amount of the reduction to be made from the aid of a district is greater than the amount of aid otherwise due the district, the excess reduction must be made from other state aids due the district.

Sec. 18. Minnesota Statutes 1996, section 124.3201, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For the purposes of this section and sections 124.3202 and 124.321, the definitions in this subdivision apply.

(a) "Base year" for fiscal year 1996 and fiscal year 1997 means the 1994 summer program and the 1994-1995 school year. Base year for 1998 and later fiscal years means the second fiscal year preceding the fiscal year for which aid will be paid.

(b) "Basic revenue" has the meaning given it in section 124A.22, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 124.17, subdivision 1.

(c) "Essential personnel" means teachers, related services, and support services staff providing direct services to students.

(d) "Average daily membership" has the meaning given it in section 124.17.

(e) "Program growth factor" means 1.00 for fiscal year 1998 2000 and later.

(f) "Aid percentage factor" means 60 percent for fiscal year 1996, 70 percent for fiscal year 1997, 80 percent for fiscal year 1998, 90 percent for fiscal year 1999, and 100 percent for fiscal years 2000 and later.

(g) "Levy percentage factor" means 100 minus the aid percentage factor for that year.

Sec. 19. Minnesota Statutes 1996, section 124.3201, subdivision 2, is amended to read:

Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special education base revenue equals the sum of the following amounts computed using base year data:

(1) 68 percent of the salary of each essential person employed in the district's program for children with a disability during the regular school year, whether the person is employed by one or more districts;

(2) for the Minnesota state academy for the deaf or the Minnesota state academy for the blind, 68 percent of the salary of each instructional aide assigned to a child attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract;

(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract for that pupil;

(6) for fiscal years 1997 and later, special education base revenue shall include amounts under clauses (1) to (5) for special education summer programs provided during the base year for that fiscal year; and

(7) for fiscal years 1999 and later, the cost of providing transportation services for children with disabilities under section 124.225, subdivision 1, paragraph (b), clause (5).

(b) If requested by a school district operating a special education program during the base year for less than the full school year, the commissioner may adjust the base revenue to reflect the expenditures that would have occurred during the base year had the program been operated for the full school year.

Sec. 20. Minnesota Statutes 1996, section 124.3201, subdivision 3, is amended to read:

Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For fiscal year 1996 1997 and later, a district's adjusted special education base revenue equals the district's special education base revenue times the ratio of the district's average daily membership for the current school year to the district's average daily membership for the base year; plus the district's special education tuition revenue under subdivision 2a and special education court placement revenue under subdivision 2b.

Sec. 21. Minnesota Statutes 1996, section 124.3201, subdivision 4, is amended to read:

Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The state total special education revenue for fiscal year 1996 1998 equals $327,846,000 $358,542,000. The state total special education revenue for fiscal year 1997 1999 equals $347,810,000 $435,322,000. The state total special education revenue for later fiscal years equals:

(1) the state total special education revenue for the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership for the current fiscal year to the state total average daily membership for the preceding fiscal year.

Sec. 22. Minnesota Statutes 1996, section 124.321, subdivision 1, is amended to read:

Subdivision 1. [LEVY EQUALIZATION REVENUE.] (a) For fiscal years 1996 and later year 1999, special education levy equalization revenue for a school district, excluding an intermediate school district, equals the sum of the following amounts:

(1) the levy percentage factor for that year times the district's special education revenue under section 124.3201; plus

(2) the levy percentage factor for that year times the district's special education summer program revenue under section 124.3202; plus

(3) the levy percentage factor for that year times the district's special education excess cost revenue under section 124.323; plus

(4) the levy percentage factor for that year times the district's secondary vocational education for children with a disability revenue under section 124.574; plus

(5) the levy percentage factor for that year times the district's limited English proficiency programs revenue under section 124.273.

Sec. 23. Minnesota Statutes 1996, section 124.323, subdivision 1, is amended to read:

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, and equipment, and transportation services eligible for revenue under sections 124.3201 and 124.3202; plus

(2) expenditures for tuition bills received under section 120.17 for services eligible for revenue under sections 124.3201, subdivision 2, and 124.3202, subdivision 1; minus

(3) revenue for teachers' salaries, contracted services, supplies, and equipment under sections 124.3201 and 124.3202; minus

(4) tuition receipts under section 120.17 for services eligible for revenue under sections 124.3201, subdivision 2, and 124.3202, subdivision 1.

(b) "General revenue," for fiscal year 1996, means the sum of the general education revenue according to section 124A.22, subdivision 1, as adjusted according to section 124A.036, subdivision 5, plus the total referendum revenue according to section 124A.03, subdivision 1e. For fiscal years 1997 and later, "general revenue" means the sum of the general education revenue according to section 124A.22, subdivision 1, as adjusted according to section 124A.036, subdivision 5, plus the total referendum revenue minus transportation sparsity revenue minus total operating capital revenue.

Sec. 24. Minnesota Statutes 1996, section 124.323, subdivision 2, is amended to read:

Subd. 2. [EXCESS COST REVENUE.] For 1996 1997 and later fiscal years, a district's special education excess cost revenue equals 70 the greatest of:

(a) 70 percent of the difference between (1) the district's unreimbursed special education cost and (2) six percent for fiscal year 1996 and 5.7 percent for fiscal year 1997 and later years of the district's general revenue;

(b) 70 percent of the difference between (1) the increase in the district's unreimbursed special education cost between the base year as defined in section 124.3201, subdivision 1, and the current year and (2) 1.6 percent of the district's general revenue; or

(c) zero.

Sec. 25. Minnesota Statutes 1996, section 124.481, is amended to read:

124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.]

The state board of education, with the advice of the Minnesota Indian scholarship committee, may make grants to school districts or tribal grant or contract schools to support post-secondary preparation for secondary pupils who are of one-fourth or more Indian ancestry and who, in the opinion of the superintendent, have the capabilities to benefit from higher education. Distribution of the grants must be in accordance with a plan prepared by the state board, with the advice of the Minnesota Indian scholarship committee, that describes the objectives and methods of implementing the grant program, including the manner in which grants will be distributed in proportion to the geographical distribution of the Indian population of the state.

Sec. 26. Minnesota Statutes 1996, section 124.574, subdivision 2d, is amended to read:

Subd. 2d. [BASE REVENUE.] (a) The secondary vocational school-to-work program-disabled program base revenue equals the sum of the following amounts computed using base year data:

(1) 68 percent of the salary of each essential licensed person who provides direct instructional services to students employed during that fiscal year for services rendered in that district's secondary vocational education programs school-to-work program for children with a disability;

(3) 47 percent of the costs of necessary travel between instructional sites by secondary vocational education school-to-work program teachers of children with a disability but not including travel to and from local, regional, district, state, or national vocational student organization meetings;

(4) 47 percent of the costs of necessary supplies for secondary vocational education programs school-to-work programs for children with a disability but not to exceed an average of $47 in any one school year for each child with a disability receiving these services;

(5) for secondary vocational education programs school-to-work programs for children with disabilities provided by a contract approved by the commissioner with public, private, or voluntary agencies other than a Minnesota school district or cooperative center, in place of programs provided by the district, 52 percent of the difference between the amount of the contract and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract;

(6) for secondary vocational education programs school-to-work programs for children with disabilities provided by a contract approved by the commissioner with public, private, or voluntary agencies other than a Minnesota school district or cooperative center, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract; and

(7) for a contract approved by the commissioner with another Minnesota school district or cooperative center for vocational evaluation services for children with a disability for children that are not yet enrolled in grade 12, 52 percent of the amount of the contract.

(b) If requested by a school district for school-to-work programs during the base year for less than the full school year, the commissioner may adjust the base revenue to reflect the expenditures that would have occurred during the base year had the program been operated for the full year.

Sec. 27. Minnesota Statutes 1996, section 124.574, subdivision 2f, is amended to read:

Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state total secondary vocational-disabled school-to-work program-disabled revenue for fiscal year 1996 1998 equals $8,520,000 $8,924,000. The state total secondary vocational-disabled school-to-work program-disabled revenue for fiscal year 1997 1999 equals $8,830,000 $8,976,000. The state total secondary vocational-disabled school-to-work program-disabled revenue for later fiscal years equals:

(1) the state total secondary vocational-disabled school-to-work program-disabled revenue for the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership for the current fiscal year to the state total average daily membership for the preceding fiscal year.

Sec. 28. Minnesota Statutes 1996, section 124.86, subdivision 2, is amended to read:

Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled tribal contract or grant school that is located on a reservation within the state and that complies with the requirements in subdivision 1 is eligible to receive tribal contract or grant school aid. The amount of aid is derived by:

(2) adding to the result in clause (1) an amount equal to the product of the formula allowance under section 124A.22, subdivision 2, times the tribal contract AFDC pupil units;

(3) subtracting from the result in clause (1) (2) the amount of money allotted to the school by the federal government through Indian School Equalization Program of the Bureau of Indian Affairs, according to Code of Federal Regulations, title 25, part 39, subparts A to E, for the basic program as defined by section 39.11, paragraph (b), for the base rate as applied to kindergarten through twelfth grade, excluding small school adjustments and additional weighting, but not money allotted through subparts F to L for contingency funds, school board training, student training, interim maintenance and minor repair, interim administration cost, prekindergarten, and operation and maintenance, and the amount of money that is received according to section 126.23;

(3) (4) dividing the result in clause (2) (3) by the sum of the actual pupil units in average daily membership, excluding section 124.17, subdivision 2f, plus the tribal contract AFDC pupil units; and

(4) (5) multiplying the sum of the actual pupil units, including section 124.17, subdivision 2f, in average daily membership plus the tribal contract AFDC pupil units by the lesser of $1,500 or the sum of the result in clause (3) plus $300 (4).

Sec. 29. Minnesota Statutes 1996, section 124.86, is amended by adding a subdivision to read:

Subd. 5. [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for pupils enrolled in tribal contract schools shall be used only for the purpose of computing tribal contract aid according to this section.

Sec. 30. Minnesota Statutes 1996, section 124C.45, subdivision 1a, is amended to read:

Subd. 1a. [RESERVE REVENUE.] Each school district that is a member of an area learning center must reserve revenue in an amount equal to at least 90 percent of the basic general education revenue generated by each student attending an area learning center program under this section. The amount of reserved revenue under this subdivision may only be spent on program costs associated with the area learning center.

Sec. 31. Minnesota Statutes 1996, section 126.23, subdivision 1, is amended to read:

Subdivision 1. [AID.] If a pupil enrolls in an alternative program, eligible under section 126.22, subdivision 3, paragraph (d), or subdivision 3a, operated by a private organization that has contracted with a school district to provide educational services for eligible pupils under section 126.22, subdivision 2, the district contracting with the private organization must reimburse the provider an amount equal to at least 90 percent of the basic average general education revenue per pupil of the district for each pupil attending the program full time. For a pupil attending the program part time, basic general education revenue paid to the program shall be reduced proportionately, according to the amount of time the pupil attends the program, and basic general education revenue paid to the district shall be reduced accordingly. Pupils for whom a district provides reimbursement may not be counted by the district for any purpose other than computation of basic general education revenue, according to section 124A.22, subdivision 2. If payment is made to a district or program for a pupil under this section, the department of children, families, and learning shall not make a payment for the same pupil under section 126.22, subdivision 8.

Sec. 32. Minnesota Statutes 1996, section 126.82, is amended to read:

126.82 [STATE MULTICULTURAL EDUCATION ADVISORY COMMITTEE.]

(b) The state committee shall provide information and recommendations on:

(1) department procedures for reviewing and approving district plans and disseminating information on multicultural education;

(2) department procedures for improving inclusive education plans, curriculum and instruction improvement plans, and performance-based assessments;

(3) developing learner outcomes which are multicultural; and

(4) other recommendations that will further inclusive, multicultural education.

(c) The committee shall also participate in determining the criteria for and awarding the grants established under Laws 1993, chapter 224, article 8, section 22, subdivision 8.

Sec. 33. Laws 1995, First Special Session chapter 3, article 3, section 11, subdivision 1, is amended to read:

Subdivision 1. [PURPOSE.] A pilot program is established to support general education classroom teachers who teach children with specific learning disabilities. The goals of the pilot program are to:

(1) increase participation of these children in noncategorical programming designed to encourage their maximum potential and maintain their self-esteem;

(2) demonstrate results in measurable educational outcomes;

(3) provide alternatives to special education that focus on children's educational progress and results, respond to the individual child, are efficient and cost-effective, and ensure the rights of eligible children and their families to due process;

(4) increase general education's ability to educate in a manner that decreases the need for pull-out programs for students with specific learning disabilities; and

(5) implement alternative approaches to conflict resolution; and

(6) provide assistive technology to make individualized student accommodations.

Sec. 34. Laws 1995, First Special Session chapter 3, article 3, section 11, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purposes of this section the terms defined in this subdivision have the meanings given them.

(a) "Accommodation" means any technique that alters the educational setting to enable the child to reach the child's maximum potential and to demonstrate more accurately the child's knowledge and educational progress. Accommodations may include, but are not limited to: preferential seating, paraphrasing of information, instructions, practice activities and directions provided in a manner consistent with the child's learning style, opportunity for increased response time, more frequent opportunity for review, extended time to complete assignments and tests, larger print for assignments or tests, special study sheets, extended or untimed tests, oral testing and answering, and use of assistive technology within and outside the educational environment.

(b) "Assistive technology device" means any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities is as defined in Minnesota Statutes, section 120.187.

(d) "Consistently available" means that education personnel who demonstrate competency are site-based and designated as a resource for the development and use of accommodations, modifications, and personalized instruction in general education.

(e) "Eligible children" means those children who have specific learning disabilities or conditions related to these disabilities according to recognized professional standards and documented by appropriately licensed personnel.

(f) "Learner plan" means a concise written plan that is based on the eligible child's documented specific learning disabilities and needs; includes the eligible child's strengths that may compensate for those differences and needs; provides the child, the child's parent, and all general education personnel responsible for direct instruction with information that results in clear understanding and subsequent use of accommodations, modifications, and personalized instruction; and includes methods of evaluating the child's progress that are consistent with learning differences, needs, strengths, modifications, and accommodations, and are at intervals identical to the student population of the school in which the child participating in Options Plus is enrolled.

(g) "Modification" means any technique that alters the school work required, makes it different from the school work required or other students in the same course, and encourages the eligible child to reach the child's maximum potential and facilitate educational success. Modifications may include, but are not limited to: copies of teacher notes and lesson plans, assisted note taking, reduced or altered assignments, increased assignments in areas of strength, alternative test formats, modified testing, peer assistance, cooperative learning, and modified grading such as documentation of progress and results.

(h) "Parent" means a parent, guardian, or person acting as a parent of a child.

(i) "Personalized instruction" means direct instruction designed with knowledge of the child's learning style, strengths, and differences, to assist the child to gain in skill areas, so the child demonstrates progress toward and outcomes necessary to become a successful citizen.

Sec. 35. Laws 1995, First Special Session chapter 3, article 3, section 11, subdivision 5, is amended to read:

Subd. 5. [USE OF FUNDS.] Options Plus pilot program grants shall be used to supplement staff development funding under Minnesota Statutes, section 124A.29, to train general education classroom teachers to meet the needs of children with specific learning disabilities and provide assistive technology devices in a general education setting. The training shall result in each participating teacher achieving the following competencies:

(1) understanding and communicating to the parents of the child the options available for instruction;

(2) the ability to assess the learning environment and provide the necessary accommodations, modifications, and personalized instruction necessary to meet the needs of the child; and

(3) the ability to work collaboratively and in teams with other teachers and support and related services staff; and

(4) the ability to teach children to use the assistive technology devices.

Sec. 36. [OSSEO LEVY.]

For levies payable in 1998 only, independent school district No. 279, Osseo, may levy a tax in an amount not to exceed $800,000. The proceeds of this levy must be used to provide instructional services for at-risk children.

Sec. 37. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] For grants to American Indian language and culture education programs according to Minnesota Statutes, section 126.54, subdivision 1:

$591,000 . . . . . 1998

The 1998 appropriation includes $59,000 for 1997 and $532,000 for 1998.

The 1999 appropriation includes $59,000 for 1998 and $532,000 for 1999.

Any balance in the first year does not cancel but is available in the second year.

Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain American Indian education programs in school districts:

$175,000 . . . . . 1998

$175,000 . . . . . 1999

The 1998 appropriation includes $17,000 for 1997 and $158,000 for 1998.

The 1999 appropriation includes $17,000 for 1998 and $158,000 for 1999.

(b) These appropriations are available for expenditure with the approval of the commissioner of the department of children, families, and learning.

(c) The commissioner must not approve the payment of any amount to a school district or school under this subdivision unless that school district or school is in compliance with all applicable laws of this state.

(d) Up to the following amounts may be distributed to the following schools and school districts for each fiscal year: $54,800, Pine Point School; $9,800 to independent school district No. 166, Cook county; $14,900 to independent school district No. 432, Mahnomen; $14,200 to independent school district No. 435, Waubun; $42,200 to independent school district No. 707, Nett Lake; and $39,100 to independent school district No. 38, Red Lake. These amounts must be spent only for the benefit of American Indian pupils and to meet established state educational standards or statewide requirements.

(e) Before a district or school can receive money under this subdivision, the district or school must submit, to the commissioner, evidence that it has complied with the uniform financial accounting and reporting standards act, Minnesota Statutes, sections 121.904 to 121.917.

Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION GRANTS.] For American Indian post-secondary preparation grants according to Minnesota Statutes, section 124.481:

$857,000 . . . . . 1998

$857,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American Indian scholarships according to Minnesota Statutes, section 124.48:

$1,600,000 . . . . . 1998

$1,600,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For joint grants to assist Indian people to become teachers:

$190,000 . . . . . 1998

(b) Up to $70,000 each year is for a joint grant to the University of Minnesota at Duluth and the Duluth school district.

(c) Up to $40,000 each year is for a joint grant to each of the following:

(1) Bemidji state university and the Red Lake school district;

(2) Moorhead state university and a school district located within the White Earth reservation; and

(3) Augsburg college, independent school district No. 625, St. Paul, and the Minneapolis school district.

(d) Money not used for students at one location may be transferred for use at another location.

(e) Any balance in the first year does not cancel but is available in the second year.

Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract school aid according to Minnesota Statutes, section 124.86:

$2,243,000 . . . . . 1998

$2,689,000 . . . . . 1999

The 1998 appropriation includes $91,000 for 1997 and $2,152,000 for 1998.

The 1999 appropriation includes $238,000 for 1998 and $2,451,000 for 1999.

Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For early childhood family education programs at tribal contract schools:

$68,000 . . . . . 1998

$68,000 . . . . . 1999

Subd. 9. [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION HEARING.] To assist school districts in educating teachers in American sign language:

$13,000 . . . . . 1998

$12,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 10. [MEXICAN ORIGIN EDUCATION GRANTS.] For grants for a Mexican origin education pilot grant program:

$50,000 . . . . . 1998

$25,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 11. [LAY ADVOCATES.] To pay or reimburse lay advocates for their time and expense as provided in Minnesota Statutes, section 120.17:

This appropriation is available until June 30, 1999.

Subd. 12. [OPTIONS PLUS PILOT GRANTS.] For grants to school districts for options plus pilot programs:

$150,000 . . . . . 1998

Each grant shall not exceed $50,000.

This appropriation is available until June 30, 1999.

Subd. 13. [MAGNET SCHOOL GRANTS.] For magnet school and program grants:

$2,000,000 . . . . . 1998

$2,000,000 . . . . . 1999

These amounts must be used for planning and developing magnet schools and magnet programs.

Subd. 14. [INTEGRATION PROGRAMS.] For grants according to: minority fellowship grants according to Laws 1994, chapter 647, article 8, section 29; minority teacher incentives according to Minnesota Statutes, section 124.278; teachers of color grants according to Minnesota Statutes, section 125.623; and cultural exchange grants according to Minnesota Statutes, section 126.43:

$1,000,000 . . . . . 1998

$1,000,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

In awarding teacher of color grants, priority must be given to districts that have students who are currently in the process of completing their academic program.

Subd. 15. [SPECIAL EDUCATION AID.] For special education aid according to Minnesota Statutes, section 124.32:

$282,508,000 . . . . . 1998

$381,302,000 . . . . . 1999

The 1998 appropriation includes $24,346,000 for 1997 and $258,162,000 for 1998.

The 1999 appropriation includes $28,684,000 for 1998 and $352,618,000 for 1999.

Subd. 16. [AID FOR CHILDREN WITH A DISABILITY.] For aid according to Minnesota Statutes, section 124.32, subdivision 6, for children with a disability placed in residential facilities within the district boundaries for whom no district of residence can be determined:

$586,000 . . . . . 1998

$684,000 . . . . . 1999

If the appropriation for either year is insufficient, the appropriation for the other year is available. Any balance in the first year does not cancel but is available in the second year.

Subd. 17. [TRAVEL FOR HOME-BASED SERVICES.] For aid for teacher travel for home-based services according to Minnesota Statutes, section 124.32, subdivision 2b:

$107,000 . . . . . 1998

The 1998 appropriation includes $8,000 for 1997 and $99,000 for 1998.

The 1999 appropriation includes $10,000 for 1998 and $101,000 for 1999.

Subd. 18. [SPECIAL EDUCATION EXCESS COST AID.] For excess cost aid:

$28,045,000 . . . . . 1998

$47,654,000 . . . . . 1999

The 1998 appropriation includes $1,242,000 for 1997 and $26,803,000 for 1998.

The 1999 appropriation includes $2,978,000 for 1998 and $44,676,000 for 1999.

Subd. 19. [TARGETED NEEDS AID.] For targeted needs aid:

$44,064,000 . . . . . 1998

$ 2,547,000 . . . . . 1999

(a) Of the 1998 amount, $930,000 is for 1997 limited English proficiency aid and $10,533,000 is for 1998 limited English proficiency aid. Of the 1998 amount, $1,364,000 is for 1997 assurance of mastery aid and $12,393,000 is for 1998 assurance of mastery aid. Of the 1998 amount, $18,844,000 is for 1998 integration aid.

(b) Of the 1999 amount, $1,170,000 is for 1998 limited English proficiency aid and $0 is for 1999 limited English proficiency aid. Of the 1999 amount, $1,377,000 is for 1998 assurance of mastery aid and $0 is for 1999 assurance of mastery aid.

(c) As a condition of receiving a grant, each district must continue to report its costs according to the uniform financial accounting and reporting system. As a further condition of receiving a grant, each district must submit a report to the chairs of the education committees of the legislature about the actual expenditures it made for integration using the grant money including achievement results. These grants may be used to transport students attending a nonresident district under Minnesota Statutes, section 120.062, to the border of the resident district. A district may allocate a part of the grant to the transportation fund for this purpose.

Subd. 20. [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH DISABILITIES.] For aid for school-to-work programs for pupils with disabilities according to Minnesota Statutes, section 124.574:

$7,044,000 . . . . . 1998

$7,985,000 . . . . . 1999

The 1998 appropriation includes $618,000 for 1997 and $6,426,000 for 1998.

The 1999 appropriation includes $713,000 for 1998 and $7,272,000 for 1999.

Subd. 21. [SPECIAL PROGRAMS EQUALIZATION AID.] For special education levy equalization aid according to Minnesota Statutes, section 124.321:

$11,195,000 . . . . . 1998

$ 5,780,000 . . . . . 1999

The 1998 appropriation includes $1,783,000 for 1997 and $9,412,000 for 1998.

Subd. 22. [INTEGRATION AID.] For integration aid:

$26,124,000 . . . . . 1999

This appropriation is based on an entitlement of $29,026,000

Subd. 23. [CENTRAL MINNESOTA AREA LEARNING CENTER.] For a grant to two or more of the following school districts, independent school district Nos. 47, Sauk Rapids; 51, Foley; 738, Holdingford; 739, Kimball; 742, St. Cloud; 748, Sartell; and 750, Cold Spring, that form a joint powers agreement under Minnesota Statutes, section 471.59, to establish the central Minnesota area learning center:

$130,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 24. [LOW-INCOME CONCENTRATION GRANTS.] For low-income concentration grants under Laws 1994, chapter 647, article 8, section 43:

$1,838,000 . . . . . 1998

$1,838,000 . . . . . 1999

Each grant shall be for no more than $52,500.

Subd. 25. [NETT LAKE.] For grants to independent school district No. 707, Nett Lake:

$79,000 . . . . . 1998

$60,000 . . . . . 1999

$19,000 in 1998 is for a grant to independent school district No. 707, Nett Lake, to reimburse the district for property and boiler insurance premiums paid in fiscal year 1996.

$30,000 in 1998 and $30,000 in 1999 are for grants to independent school district No. 707, Nett Lake, to pay property insurance and boiler insurance premiums, and insurance premiums under Minnesota Statutes, section 466.06.

$30,000 in 1998 and $30,000 in 1999 are for grants to independent school district No. 707, Nett Lake, for the payment of obligations of the school district for unemployment compensation. The appropriation must be paid to the appropriate state agency for such purposes in the name of the school district.

Subd. 26. [NETT LAKE MEDIA SPECIALIST.] For a grant to independent school district No. 707, Nett Lake, for a media specialist for preschool through grade 6:

$35,000 . . . . . 1998

Subd. 27. [FIRST GRADE PREPAREDNESS.] For grants for the first grade preparedness program under Minnesota Statutes, section 124.2613, and for school sites that have provided a full-day kindergarten option for kindergarten students enrolled in fiscal years 1996 and 1997:

$3,900,000 . . . . . 1998

$3,900,000 . . . . . 1999

This appropriation is in addition to appropriations for the program under this act and Laws 1996, chapter 412, article 1, section 34, subdivision 2, and must be used to expand the number of sites providing first grade preparedness. The commissioner shall make grants to eligible sites within the limits of the appropriation.

Sec. 38. [REPEALER.]

Minnesota Statutes 1996, sections 124.3201, subdivisions 2a and 2b; and 128B.10, are repealed.

Sec. 39. [EFFECTIVE DATE.]

(a) Sections 2, 30, and 31 are effective for the 1997-1998 school year and thereafter.

(b) Sections 4 and 22 are effective for revenue for fiscal year 1999.

(c) Section 5 is effective the day following final enactment.

(d) Sections 6, 20, 24, and 38 are effective retroactively to July 1, 1996.

Section 1. Minnesota Statutes 1996, section 121.11, is amended by adding a subdivision to read:

Subd. 7e. [GRADUATION EDUCATION DEVELOPMENT TESTS RULES.] The state board may amend rules to reflect changes in the national minimum standard score for passing the Graduation Education Development (GED) tests.

Sec. 2. [121.498] [MINNESOTA CAREER INFORMATION SYSTEM.]

(a) The department of children, families, and learning, through the Minnesota career information system (MCIS), may provide career information to, including, but not limited to, school districts and other educational organizations, employment and training services, human service agencies, libraries, and families. The department shall collect fees necessary to recover all expenditures related to the operation of the Minnesota career information system.

(b) Grants and other legislative funds may be accepted and used for the improvement or operation of the Minnesota career information system. All receipts shall be deposited in a special account in the special revenue fund that shall be carried over at the end of each fiscal year. The money in the account, along with any interest earned, is appropriated to the commissioner of children, families, and learning for the Minnesota career information system and must be for the sole use and benefit of the system. The department shall recognize that the Minnesota career information system operates under a self-supporting directive, and accordingly, must provide sufficient administrative latitude within the confines of law to enable the system to operate effectively.

Sec. 3. Minnesota Statutes 1996, section 121.615, subdivision 2, is amended to read:

Subd. 2. [CREATION OF FOUNDATION.] There is created the Minnesota school-to-work student organization foundation. The purpose of the foundation shall be to promote vocational student organizations and applied leadership opportunities in Minnesota public and nonpublic schools through public-private partnerships. The foundation shall be a nonprofit organization. The board of directors of the foundation and activities of the foundation are under the direction of the department of children, families, and learning state board of education.

Sec. 4. Minnesota Statutes 1996, section 121.615, subdivision 3, is amended to read:

Subd. 3. [BOARD OF DIRECTORS.] The board of directors of the school-to-work student organization foundation shall consist of:

Industrial Clubs of America, Post-secondary Vocational Industrial Clubs of America, Secondary Business Professionals of America, and Post-secondary Business Professionals of America;

(2) four members from business and industry appointed by the governor; and

(3) five students representing diverse vocational areas, three of whom are appointed by the commissioner of the department of children, families, and learning and two of whom are appointed by the chancellor of the Minnesota state colleges and universities with the advice of the executive councils of each vocational education student organization.

(1) seven members appointed by the board of directors of the school-to-work student organizations and chosen so that each represents one of the following career areas: agriculture, family and consumer sciences, service occupations, health occupations, marketing, business, and technical/industrial;

(2) seven members from business, industry, and labor appointed by the governor to staggered terms and chosen so that each represents one of the following career areas: agriculture, family and consumer sciences, service occupations, health occupations, marketing, business, and technical/industrial;

(3) five students or alumni of school-to-work student organizations representing diverse career areas, three from secondary student organizations, and two from post-secondary student organizations. The students or alumni shall be appointed by the criteria and process agreed upon by the executive directors of the student-to-work organizations; and

(4) four members from education appointed by the governor to staggered terms and chosen so that each represents one of the following groups: school district level administrators, secondary school administrators, middle school administrators, and post-secondary administrators.

Executive directors of vocational education student organizations are ex officio, nonvoting members of the board.

Sec. 5. Minnesota Statutes 1996, section 121.615, subdivision 5, is amended to read:

Subd. 5. [POWERS AND DUTIES.] The foundation may:

(1) identify and plan common goals and priorities for the various school-to-work student organizations in Minnesota;

(2) publish brochures or booklets relating to the purposes of the foundation and collect reasonable fees for the publications;

(3) seek and receive public and private money, grants, and in-kind services and goods from nonstate sources for the purposes of the foundation, without complying with section 7.09, subdivision 1;

(4) contract with consultants on behalf of the school-to-work student organizations; and

(5) plan, implement, and expend money for awards and other forms of recognition for school-to-work student activities programs; and

(6) identifying an appropriate name for the foundation.

Sec. 6. Minnesota Statutes 1996, section 121.615, subdivision 6, is amended to read:

Subd. 6. [CONTRACTS.] The foundation board of directors shall review and approve foundation personnel and programming contracts each contract of the board. Each contract of the foundation board shall be subject to the same review and approval procedures as a contract of the state board of education.

Sec. 7. Minnesota Statutes 1996, section 121.615, subdivision 7, is amended to read:

Subd. 7. [FOUNDATION STAFF.] The commissioner of the department of children, families, and learning state board of education shall appoint the executive director of the foundation from three candidates nominated and submitted by the foundation board of directors and, as necessary, other staff who shall perform duties and have responsibilities solely

related to the foundation. The employees appointed are not state employees under chapter 43A, but are covered under section 3.736. The employees may participate in the state health and state insurance plans for employees in unclassified service. The employees shall be supervised by the executive director.

The commissioner shall appoint from the office of lifework development a liaison to the foundation board.

Sec. 8. Minnesota Statutes 1996, section 121.615, subdivision 8, is amended to read:

Subd. 8. [PUBLIC FUNDING.] The commissioner of the department of children, families, and learning state shall identify and secure appropriate sources of state and federal funding from various state agencies, including, but not limited to, Minnesota state colleges and universities, for the operation and development of basic staffing of the foundation and individual student school-to-work student organizations.

Sec. 9. Minnesota Statutes 1996, section 121.615, subdivision 9, is amended to read:

Subd. 9. [PRIVATE FUNDING.] The foundation shall seek private resources to supplement the allocated state and federal available public money. Individuals, businesses, and other organizations may contribute to the foundation in any manner specified by the board of directors. All money received shall be administered by the board of directors.

Sec. 10. Minnesota Statutes 1996, section 121.615, subdivision 10, is amended to read:

Subd. 10. [REPORT.] The board of directors of the foundation shall submit an annual report and assessment to the office of lifework development and on the progress of its activities to the state board of education and to the board of trustees of the Minnesota state colleges and universities. The annual report shall contain a financial report for the preceding year. The foundation shall submit a biennium report to the legislature before February 15, in the odd-numbered year.

Sec. 11. [121.618] [LIFEWORK LEARNING.]

Subdivision 1. [FUNCTIONS.] Lifework learning sites must:

(1) provide teaching and learning opportunities that demonstrate and model state-of-the-art practice in lifework education;

(2) offer professional development opportunities that train school personnel and other partners about state-of-the-art practices in lifework education;

(3) perform research and development by conducting needs assessment, and developing, field-testing, and evaluating current practice and advance state-of-the-art practice in lifework education; and

(4) serve as a clearinghouse for selecting and disseminating materials and information about state-of-the-art practice in lifework education throughout the state.

Subd. 2. [CRITERIA.] The department must develop a process for selecting learning sites, one of which must be located in the seven county metropolitan area and one of which must be located in greater Minnesota. The commissioner shall select learning center sites that:

(1) are committed to the site's purpose and focus;

(2) are able and willing to work with partners in supporting and housing a lifework learning site;

(3) are ready and competent to realize the site's duties; and

(4) will colocate with other educational, commercial, or community enterprises.

Subd. 3. [DUTIES.] The lifework learning site must:

(2) train school and nonschool staff to implement state-of-the-art practice of lifework learning;

(3) continuously improve state-of-the-art practice of lifework education at lifework learning sites and throughout Minnesota; and

(4) provide information about the state-of-the-art practice in lifework learning and how to implement it.

Subd. 4. [FUNDING.] A lifework learning site is eligible for funding under the laboratory school grant program.

Sec. 12. Minnesota Statutes 1996, section 121.703, subdivision 3, is amended to read:

Subd. 3. [DUTIES.] (a) The commission shall:

(1) develop, with the assistance of the governor, the commissioner of children, families, and learning, and affected state agencies, a comprehensive state plan to provide services under sections 121.701 to 121.710 and federal law;

(2) actively pursue public and private funding sources for services, including funding available under federal law;

(3) coordinate volunteer service-learning programs within the state;

(4) develop, in cooperation with the workforce development council and the commissioner of children, families, and learning, volunteer service-learning programs, including curriculum, materials, and methods of instruction;

(5) work collaboratively with the workforce development council, the commissioner of children, families, and learning, schools, public and private agencies, for-profit and nonprofit employers, and labor unions to identify mentoring and service-learning opportunities, solicit and recruit participants for these programs, and disseminate information on the programs;

(6) administer the youth works grant program under sections 121.704 to 121.709, with assistance from the commissioner of children, families, and learning and the executive director of the higher education services office, including soliciting and approving grant applications from eligible organizations, and administering individual postservice benefits;

(7) establish an evaluation plan for programs developed and services provided under sections 121.701 to 121.710;

(8) report to the governor, commissioner of children, families, and learning, and legislature;

(9) provide oversight and support for school, campus, and community-based service programs; and

(10) administer the federal AmeriCorps program.

(b) Nothing in sections 121.701 to 121.710 precludes an organization from independently seeking public or private funding to accomplish purposes similar to those described in paragraph (a).

(c) The commissioner of children, families, and learning shall consult with commission members before the commissioner selects the executive director for the commission, who shall serve in the unclassified service.

Sec. 13. Minnesota Statutes 1996, section 124.193, is amended to read:

124.193 [PROHIBITED AID AND LEVIES.]

Subd. 2. [GRANTS.] A cooperative unit may apply for and receive a grant on behalf of its members.

Subd. 3. [ALLOCATION FROM MEMBERS.] By July 1 of each year, a school district may, by board resolution, allocate to cooperative units of which it is a member an amount not to exceed the lesser of (a) the district's general education aid for the fiscal year beginning July 1, according to sections 124A.036, subdivision 5, and 124A.23, subdivision 4, or (b) an amount equal to $67 times the fund balance pupil units for the fiscal year beginning July 1. By July 15 of each year, the school district must report to the commissioner the amount allocated. The amount allocated to cooperative units shall be paid to cooperative units according to section 124.195, subdivision 15. Amounts allocated to cooperative units under this subdivision shall be recognized and reported as revenues and expenditures on the school district's books of account under sections 121.904 and 121.906.

Sec. 14. Minnesota Statutes 1996, section 124.195, is amended by adding a subdivision to read:

Subd. 15. [PAYMENTS TO COOPERATIVES.] Notwithstanding subdivision 3, 90 percent of the amounts allocated to cooperative units under section 124.193, subdivision 3, shall be paid in equal installments on August 30, December 30, and March 30, with a ten percent final adjustment payment on October 30 of the next fiscal year.

Sec. 15. Minnesota Statutes 1996, section 124.573, subdivision 2f, is amended to read:

Subd. 2f. [AID GUARANTEE.] Notwithstanding subdivision 2b, the secondary vocational education aid for a school district is not less than the lesser of:

(a) 95 percent of the secondary vocational education aid the district received for the previous fiscal year; or

(b) 40 percent of the approved expenditures for secondary vocational programs included in subdivision 2b, paragraph (b); or

(c) notwithstanding paragraphs (a) and (b), a school district's aid shall not be less than 25 percent of the lesser of (1) $200,000, or (2) the approved expenditure included in subdivision 2b, paragraph (b).

Sec. 16. Minnesota Statutes 1996, section 124.574, subdivision 1, is amended to read:

Subdivision 1. The purpose of this section is to provide a method to fund programs for secondary vocational education school-to-work programs for children with a disability. As used in this section, the term "children with a disability" shall have the meaning ascribed to it in section 120.03.

Sec. 17. Minnesota Statutes 1996, section 124.574, subdivision 5, is amended to read:

Subd. 5. The aid provided pursuant to this section shall be paid only for services rendered as designated in subdivision 2 or for the costs designated in subdivision 3 which are incurred in secondary vocational education programs school-to-work programs for children with a disability which are approved by the commissioner of children, families, and learning and operated in accordance with rules promulgated by the state board. These rules shall be subject to the restrictions provided in section 124.573, subdivision 3. The procedure for application for approval of these programs shall be as provided in section 124.32, subdivisions 7 and 10, and the application review process shall be conducted by the vocational education section of the state office of lifework development in the department.

Sec. 18. Minnesota Statutes 1996, section 124.574, subdivision 6, is amended to read:

Subd. 6. All aid pursuant to this section shall be paid to the district or cooperative center providing the services. All aid received by a district or center from any source for secondary vocational education school-to-work programs for children with a disability shall be utilized solely for that purpose.

Sec. 19. Minnesota Statutes 1996, section 124.574, subdivision 9, is amended to read:

Sec. 20. Minnesota Statutes 1996, section 124C.46, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM FOCUS.] The programs and services of a center must focus on academic and learning skills, applied learning opportunities, trade and vocational skills, work-based learning opportunities, work experience, youth service to the community, and transition services. The center shall coordinate the use of other available educational services, social services, health services, and post-secondary institutions in the community and services area.

Sec. 21. [126.685] [LIFEWORK DEVELOPMENT PLAN.]

A school district may require students in grades seven through 12 to develop and maintain a record of all of the students' lifework development activities. This record would include, but is not limited to, the students' goals, skills, abilities, and interests, as well as information on formal service learning, out-of-school learning experiences, and career-related experiences, such as job shadowing, career mentoring, internships, apprenticeships, entrepreneurship, and other work-based learning activities. This ongoing record would assist the students in choosing their school-based courses and assist them in the research and exploration of career options. Each school year, the record would be reviewed by the student, the student's parent or guardian, and qualified school personnel to ensure that the record is updated and reflects the student's changing life goals and aspirations. The record would serve as the basis of a lifework plan that would be developed before graduation. The plan would outline the skills the students need to develop in order to attain their career aspirations. The plan would also outline future education and training options necessary to achieve their lifework goals.

Sec. 22. Minnesota Statutes 1996, section 136A.233, is amended by adding a subdivision to read:

Subd. 4. [COOPERATION WITH LOCAL SCHOOLS.] Each campus using the state work study program is encouraged to cooperate with its local public elementary and secondary schools to place college work study students in activities in the schools, such as tutoring, that assist students in kindergarten through grade 12 in meeting graduation standards. College students shall work under direct supervision; therefore, school hiring authorities are not required to request criminal background checks on these students under section 120.1045.

Sec. 23. [PILOT PROGRAM.]

A high school student entrepreneurship program is established within independent school district No. 175, Westbrook, to increase entrepreneurship education in secondary schools. Independent school district No. 175, Westbrook, shall operate a student-run business within Westbrook Walnut Grove high school, during the period of time a grant is available for that purpose.

Sec. 24. [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.]

In addition to other levies, independent school district No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the unreimbursed costs of an adult farm management program. This amount may be levied over a period of three years.

Sec. 25. [SMALL SCHOOL VIABILITY PROJECT.]

Subdivision 1. [PILOT PROJECT.] A small school viability pilot project is created. The purpose of the small school viability project is to serve as a small school model for the state of Minnesota demonstrating the capability of a small school district to provide a curriculum and teaching methodology allowing students to reach high levels of performance on the state graduation standards.

Subd. 2. [ACTIVITIES.] The school board of independent school district No. 330, Heron Lake-Okabena, must develop its small school viability project including its academic framework, goals, and delivery system in consultation with community members, teachers, and parents.

Sec. 26. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [SECONDARY VOCATIONAL EDUCATION AID.] For secondary vocational education aid according to Minnesota Statutes, section 124.573:

$13,217,000 . . . . . 1998

$13,355,000 . . . . . 1999

The 1998 appropriation includes $1,180,000 for 1997 and $12,037,000 for 1998.

The 1999 appropriation includes $1,337,000 for 1998 and $12,018,000 for 1999.

Subd. 3. [YOUTHWORKS PROGRAM.] For funding youthworks programs according to Minnesota Statutes, sections 121.701 to 121.710:

$1,900,000 . . . . . 1998

$1,900,000 . . . . . 1999

The commissioner may allocate up to $50,000 of the appropriation for the cost of administering the program.

A grantee organization may provide health and child care coverage to the dependents of each participant enrolled in a full-time youth works program to the extent such coverage is not otherwise available.

Any balance in the first year does not cancel but is available in the second year.

Subd. 4. [ENTREPRENEURSHIP PILOT PROGRAM.] For the high school student entrepreneurship program in independent school district No. 175, Westbrook:

$75,000 . . . . . 1998

This appropriation may be used for start-up expenses, including, but not limited to, salaries, travel, seminars, equipment purchases, contractual expenses, and other expenses related to the start up of the student-run business.

This appropriation is available until June 30, 1999.

Subd. 5. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM GRANTS.] For education and employment transitions program:

$4,000,000 . . . . . 1998

$4,000,000 . . . . . 1999

(a) $500,000 each year is for development of MnCEPs, an Internet-based education and employment information system. These are one-time funds.

(c) $400,000 each year is for youth apprenticeship program grants.

(d) $100,000 each year is for youth entrepreneurship grants under Minnesota Statutes, section 121.72.

(e) $100,000 each year is for youth employer grants under Laws 1995, First Special Session chapter 3, article 4, section 28.

(f) $150,000 each year is for parent and community awareness training.

(g) $1,500,000 each year is for lifework development and implementation activities and state-level activities, including the governor's workforce development council.

Any balance in the first year does not cancel but is available in the second year.

Subd. 6. [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION FOUNDATION.] For the Minnesota school-to-work student organization foundation under Minnesota Statutes, section 121.615:

$500,000 . . . . . 1998

$500,000 . . . . . 1999

Subd. 7. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to independent school district No. 330, Heron Lake-Okabena, to establish the Southwest Star Concept School:

$193,000 . . . . . 1998

Of this amount, up to $150,000 is for equipment needs; up to $8,100 is for activities beyond the classroom walls; and up to $17,000 is for professional planning assistance. Any remaining funds may be used for monitoring, evaluating, and reporting activities related to the case study prepared in section 25.

This appropriation is available until June 30, 1999.

Subd. 8. [WORKSTUDY STUDENT COMPENSATION.] For enabling school districts to pay the employer's share of work study students compensation under Minnesota Statutes, section 136A.233, subdivision 3:

$50,000 . . . . . 1998

$50,000 . . . . . 1999

Money shall be available to districts upon request until the appropriation is exhausted. The commissioner may establish an application procedure for allocating the money to districts.

Subd. 9. [JOB SHADOWING AT CAMP RIPLEY.] For a grant to the Mid-State Education District No. 6979, for a job shadowing program and internships:

$150,000 . . . . . 1998

$150,000 . . . . . 1999

The programs shall be conducted in conjunction with the department of military affairs' programs based at Camp Ripley. The goals of the program are to:

(1) provide "real-world" occupational experiences;

(3) provide a more complete continuum of integrated experiences in order to meet Minnesota's graduation standards;

(4) further develop the school-to-work career partnership; and

(5) provide mentoring services from both the school-based and worksite perspectives.

Sec. 27. [REPEALER.]

Laws 1993, chapter 146, article 5, section 20, is repealed. Minnesota Statutes 1996, section 126.113, is repealed.

Sec. 28. [EFFECTIVE DATES.]

(a) Section 1 is effective the day following final enactment.

(b) Sections 13 and 14 are effective July 1, 1997, for revenue for fiscal years 1998 and later.

(c) Section 15 is effective for revenue for fiscal year 1998.

Section 1. Minnesota Statutes 1996, section 120.0621, subdivision 5a, is amended to read:

Subd. 5a. [TUITION PAYMENTS.] In each odd-numbered year, before March 1, the state board of education commissioner shall agree to rates of tuition for Minnesota elementary and secondary pupils attending in other states for the next two fiscal years when the other state agrees to negotiate tuition rates. The board commissioner shall negotiate equal, reciprocal rates with the designated authority in each state for pupils who reside in an adjoining state and enroll in a Minnesota school district. The rates must be at least equal to the tuition specified in section 120.08, subdivision 1. If the other state does not agree to negotiate a general tuition rate, a Minnesota school district shall negotiate a tuition rate with the school district in the other state that sends a pupil to or receives a pupil from the Minnesota school district. The tuition rate for a pupil with a disability must be equal to the actual cost of instruction and services provided. The resident district of a Minnesota pupil attending in another state under this section must pay the amount of tuition agreed upon in this section to the district of attendance, prorated on the basis of the proportion of the school year attended.

Sec. 2. Minnesota Statutes 1996, section 120.0621, subdivision 5b, is amended to read:

Subd. 5b. [TRANSPORTATION OF STUDENTS.] (a) The agreement under subdivision 5a with each state must specify that the attending district in each state transport a pupil from the district boundary to the school of attendance.

(b) Notwithstanding paragraph (a), the districts of residence and attendance may agree that either district may provide transportation from a pupil's home or agreed upon location to school. Transportation aid for Minnesota students eligible for aid shall be paid only for transportation within the resident district.

Sec. 3. Minnesota Statutes 1996, section 120.0621, subdivision 6, is amended to read:

Subd. 6. [EFFECTIVE IF RECIPROCAL.] This section is effective with respect to South Dakota upon enactment of provisions by South Dakota that the commissioner determines are essentially similar to the provisions for Minnesota pupils in this section. After July 1, 1993, this section is effective with respect to any other bordering state upon enactment of provisions by the bordering state that the commissioner determines are essentially similar to the provisions for Minnesota pupils in this section.

Sec. 4. Minnesota Statutes 1996, section 120.0621, is amended by adding a subdivision to read:

Sec. 5. Minnesota Statutes 1996, section 121.15, is amended by adding a subdivision to read:

Subd. 1a. [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S ROLE.] As part of the consultation under subdivision 1, the commissioner shall provide each school district with information concerning indoor air quality.

Sec. 6. Minnesota Statutes 1996, section 121.15, is amended by adding a subdivision to read:

Subd. 7a. [INDOOR AIR QUALITY.] A school board seeking a review and comment under this section must submit information demonstrating to the commissioner's satisfaction that:

(1) indoor air quality issues have been considered; and

(2) the architects and engineers designing the facility will have professional liability insurance.

Sec. 7. [121.1501] [SCHOOL FACILITY COMMISSIONING.]

Subdivision 1. [APPLICATION.] This section applies to the installation or retrofitting of heating, ventilation, and air conditioning systems for which review and comment of the project under section 121.15 has been requested after July 1, 1997.

Subd. 2. [SYSTEM INSPECTOR.] For purposes of this section, system inspector means:

(1) a Minnesota-licensed engineer; or

(2) properly qualified testing and balancing agency or individual.

Subd. 3. [CERTIFICATION.] Prior to occupying or reoccupying a school facility affected by this section, a school board or its designee shall submit a document prepared by a system inspector to the building official or to the commissioner, verifying that the facility's heating, ventilation, and air conditioning system has been installed and operates according to design specifications.

Subd. 4. [OCCUPANCY.] If the document submitted by the school board to the building official or the commissioner does not demonstrate to that official's satisfaction that the heating, ventilation, and air conditioning system has been installed correctly or that the system is not operating at a level to meet design specifications, the official or commissioner may allow up to one year of occupancy while the heating, ventilation, and air conditioning system is improved to a level that is considered satisfactory by the system inspector.

Sec. 8. Minnesota Statutes 1996, section 121.155, is amended by adding a subdivision to read:

Subd. 3. [EXEMPTION.] Programs operated in facilities constructed under this section are exempt from the limitations under section 123.35, subdivision 19a.

Sec. 9. Minnesota Statutes 1996, section 124.2727, subdivision 6a, is amended to read:

Subd. 6a. [FISCAL YEAR 1998 DISTRICT COOPERATION REVENUE.] A district's cooperation revenue for fiscal year 1998 is equal to the greater of $67 times the actual pupil units or $25,000.

Sec. 10. Minnesota Statutes 1996, section 124.2727, subdivision 6c, is amended to read:

Subd. 6c. [FISCAL YEAR 1998 DISTRICT COOPERATION AID.] A district's cooperation aid for fiscal year 1998 is the difference between its district cooperation revenue and its district cooperation levy. If a district does not levy the entire amount permitted, aid must be reduced in proportion to the actual amount levied.

Sec. 11. Minnesota Statutes 1996, section 124.2727, subdivision 6d, is amended to read:

(b) A district that was a member of an intermediate school district organized pursuant to chapter 136D on July 1, 1994, must place its district cooperation revenue in a reserved account and must allocate a portion of the reserved revenue for instructional services from entities formed for cooperative services for special education programs and secondary vocational programs. The allocated amount is equal to the levy made according to section 124.2727, subdivision 6, for taxes payable in 1994 divided by the actual pupil units in the intermediate school district for fiscal year 1995 times the number of actual pupil units in the school district in 1995. The district must use 5/11 of the revenue for special education and 6/11 of the revenue for secondary vocational education. The district must demonstrate that the revenue is being used to provide the full range of special education and secondary vocational programs and services available to each child served by the intermediate. The secondary vocational programs and service must meet the requirements established in an articulation agreement developed between the state board of education and the board of trustees of the Minnesota state colleges and universities.

(c) A district that was not a member of an intermediate district organized under chapter 136D on July 1, 1994, must spend at least $9 per pupil unit of its district cooperation revenue on secondary vocational programs.

Sec. 12. Minnesota Statutes 1996, section 124.2445, is amended to read:

124.2445 [PURCHASE OF CERTAIN EQUIPMENT.]

The board of a school district may issue general obligation certificates of indebtedness or capital notes subject to the school district debt limits to purchase vehicles, computers, telephone systems, cable equipment, photocopy and office equipment, technological equipment for instruction, and other capital equipment having an expected useful life at least as long as the terms of the certificates or notes. The certificates or notes must be payable in not more than five years and must be issued on the terms and in the manner determined by the board. The certificates or notes may be issued by resolution and without the requirement for an election. The certificates or notes are general obligation bonds for purposes of section 124.755. A tax levy must be made for the payment of the principal and interest on the certificates or notes, in accordance with section 475.61, as in the case of bonds. The sum of the tax levies under this section and section 124.2455 for each year must not exceed the amount of the district's total operating capital revenue for the year the initial debt service levies are certified. The district's general education levy for each year must be reduced by the sum of (1) the amount of the tax levies for debt service certified for each year for payment of the principal and interest on the certificates or notes as required by section 475.61., and (2) any excess amount in the debt redemption fund used to retire certificates or notes issued after February 1, 1997. A district using an excess amount in the debt redemption fund to retire the certificates or notes shall report the amount used for this purpose to the commissioner by July 15 of the following fiscal year. A district having an outstanding capital loan under section 124.431 or an outstanding debt service loan under section 124.42 must not use an excess amount in the debt redemption fund to retire the certificates or notes.

Sec. 13. Minnesota Statutes 1996, section 124.2455, is amended to read:

124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.]

(a) In addition to other bonding authority, with approval of the commissioner, a school district may issue general obligation bonds for certain capital projects under this section. The bonds must be used only to make capital improvements including:

(1) under section 124A.22, subdivision 11, total operating capital revenue uses specified in clauses (4), (6), (7), (8), (9), and (10);

(2) the cost of energy modifications;

(3) improving handicap accessibility to school buildings; and

(4) bringing school buildings into compliance with life and safety codes and fire codes.

(c) A bond issue tentatively authorized by the board under this subdivision becomes finally authorized unless a petition signed by more than 15 percent of the registered voters of the school district is filed with the school board within 30 days of the board's adoption of a resolution stating the board's intention to issue bonds. The percentage is to be determined with reference to the number of registered voters in the school district on the last day before the petition is filed with the school board. The petition must call for a referendum on the question of whether to issue the bonds for the projects under this section. The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this section.

(d) The bonds must be paid off within ten years of issuance. The bonds must be issued in compliance with chapter 475, except as otherwise provided in this section. A tax levy must be made for the payment of principal and interest on the bonds in accordance with section 475.61. The sum of the tax levies under this section and section 124.2455 for each year must not exceed the amount of the district's total operating capital revenue for the year the initial debt service levies are certified. The district's general education levy for each year must be reduced by the sum of (1) the amount of the tax levies for debt service certified for each year for payment of the principal and interest on the bonds., and (2) any excess amount in the debt redemption fund used to retire bonds issued after February 1, 1997. A district using an excess amount in the debt redemption fund to retire the bonds shall report the amount used for this purpose to the commissioner by July 15 of the following fiscal year. A district having an outstanding capital loan under section 124.431 or an outstanding debt service loan under section 124.42 must not use an excess amount in the debt redemption fund to retire the bonds.

(e) Notwithstanding paragraph (d), bonds issued by a district within the first five years following voter approval of a combination according to section 122.243, subdivision 2, must be paid off within 20 years of issuance. All the other provisions and limitation of paragraph (d) apply.

Sec. 14. Minnesota Statutes 1996, section 124.42, subdivision 4, is amended to read:

Subd. 4. Each district receiving a debt service loan shall levy for debt service in that year and each year thereafter, until all its debts to the fund are paid, (a) the amount of its maximum effort debt service levy, or (b) the amount of its required debt service levy less the amount of any debt service loan in that year, whichever is greater. Whenever the maximum effort debt service levy is greater the district shall remit to the commissioner, within ten days after its receipt of the last regular tax distribution in the year in which it is collected, that portion of the maximum effort debt service tax collections, including penalties and interest, which exceeds the required debt service levy. The district shall remit payments to the commissioner according to section 124.45. On or before September 1 30 in each year the commissioner shall notify the county auditor of each county containing taxable property situated within the school district of the amount of the maximum effort debt service levy of the district for that year, and said county auditor or auditors shall extend upon the tax rolls an ad valorem tax upon all taxable property within the district in the aggregate amount so certified.

Sec. 15. Minnesota Statutes 1996, section 124.431, subdivision 2, is amended to read:

Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A school district or a joint powers district that intends to apply for a capital loan must submit a proposal to the commissioner for review and comment according to section 121.15 on or before July 1 of an odd-numbered year. The commissioner must prepare a review and comment on the proposed facility, regardless of the amount of the capital expenditure required to construct the facility. In addition to the information provided under section 121.15, subdivision 7, the commissioner shall require that predesign packages comparable to those required under section 16B.335 be prepared by the applicant school district. The predesign packages must be sufficient to define the scope, cost, and schedule of the project and must demonstrate that the project has been analyzed according to appropriate space needs standards and also consider the following criteria in determining whether to make a positive review and comment.

(a) To grant a positive review and comment the commissioner must determine that all of the following conditions are met:

(1) the facilities are needed for pupils for whom no adequate facilities exist or will exist;

(3) no form of cooperation with another district would provide the necessary facilities;

(4) the facilities are comparable in size and quality to facilities recently constructed in other districts that have similar enrollments;

(5) the facilities are comparable in size and quality to facilities recently constructed in other districts that are financed without a capital loan;

(6) the district is projected to maintain or increase its average daily membership over the next five years or is eligible for elementary or secondary sparsity revenue;

(7) the current facility poses a threat to the life, health, and safety of pupils, and cannot reasonably be brought into compliance with fire, health, or life safety codes;

(8) the district has made a good faith effort, as evidenced by its maintenance expenditures, to adequately maintain the existing facility during the previous ten years and to comply with fire, health, and life safety codes and state and federal requirements for handicapped accessibility;

(9) the district has made a good faith effort to encourage integration of social service programs within the new facility; and

(10) evaluations by school boards of adjacent districts have been received.

(b) The commissioner may grant a negative review and comment if:

(1) the state demographer has examined the population of the communities to be served by the facility and determined that the communities have not grown during the previous five years;

(2) the state demographer determines that the economic and population bases of the communities to be served by the facility are not likely to grow or to remain at a level sufficient, during the next ten years, to ensure use of the entire facility;

(3) the need for facilities could be met within the district or adjacent districts at a comparable cost by leasing, repairing, remodeling, or sharing existing facilities or by using temporary facilities;

(4) the district plans do not include cooperation and collaboration with health and human services agencies and other political subdivisions; or

(5) if the application is for new construction, an existing facility that would meet the district's needs could be purchased at a comparable cost from any other source within the area.

Sec. 16. Minnesota Statutes 1996, section 124.431, subdivision 11, is amended to read:

Subd. 11. [CONTRACT.] (a) Each capital loan must be evidenced by a contract between the school district and the state acting through the commissioner. The contract must obligate the state to reimburse the district, from the maximum effort school loan fund, for eligible capital expenses for construction of the facility for which the loan is granted, an amount computed as provided in subdivision 8. The commissioner must receive from the school district a certified resolution of the school board estimating the costs of construction and reciting that contracts for construction of the facilities for which the loan is granted have been awarded and that bonds of the district have been issued and sold in the amount necessary to pay all estimated costs of construction in excess of the amount of the loan. The contract must obligate the district to repay the loan out of the excesses of its maximum effort debt service levy over its required debt service levy, including interest at a rate equal to the weighted average annual rate payable on Minnesota state school loan bonds issued for the project and disbursed to the districts on a reimbursement basis, but in no event less than 3-1/2 percent per year on the principal amount from time to time unpaid.

outstanding capital loan shall compute the excess amount in the debt redemption fund. The commissioner shall prescribe the form and calculation to be used in computing the excess amount. A completed copy of this form shall be sent to the commissioner before December 1 of each year. The commissioner may recompute the excess amount and shall promptly notify the district of the recomputed amount. On December 15 of each year, the district shall remit to the commissioner an amount equal to the excess amount in the debt redemption fund. When the maximum effort debt service levy is greater, the district shall remit to the commissioner within ten days after its receipt of the last regular tax distribution in each year, that part of the debt service tax collections, including penalties and interest that exceeded the required debt service levy. The district shall remit payments to the commissioner according to section 124.45.

(c) The commissioner shall supervise the collection of outstanding accounts due the fund and may, by notice to the proper county auditor, require the maximum levy to be made as required in this subdivision. Interest on capital loans must be paid on December 15 of the year after the year the loan is granted and annually in later years. On or before September 1 30 in each year the commissioner shall notify the county auditor of each county containing taxable property situated within the school district of the amount of the maximum effort debt service levy of the district for that year. The county auditor or auditors shall extend upon the tax rolls an ad valorem tax upon all taxable property within the district in the aggregate amount so certified.

Sec. 17. Minnesota Statutes 1996, section 124.45, is amended to read:

124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.]

Subdivision 1. [PAYMENT.] (a) On November 20 of each year, each district having an outstanding capital loan or debt service loan shall compute the excess amount in the debt redemption fund. The commissioner shall prescribe the form and calculation to be used in computing the excess amount. A completed copy of this form shall be sent to the commissioner before December 1 of each year. The commissioner may recompute the excess amount and shall promptly notify the district of the recomputed amount.

(b) On December 15 of each year, the district shall remit to the commissioner an amount equal to the greater of:

(i) the excess amount in the debt redemption fund; or

(ii) the amount by which the maximum effort debt service levy exceeds the required debt service levy for that calendar year.

Any late payments shall be assessed an interest charge using the interest rates specified for the debt service notes and capital loan contracts.

(c) If a payment required under the maximum effort school aid law is not made within 30 days, the commissioner may reduce any subsequent payments due the district under chapters 124 and 124A by the amount due, after providing written notice to the district.

Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall apply payments received from collections of maximum effort debt service levies in excess of required debt service levies of a district on its debt service notes and capital loan contracts under the maximum effort school aid law and aids withheld according to subdivision 1, paragraph (b), as follows: First, to payment of interest accrued on its notes, if any; second, to interest on its contracts, if any; third, toward principal of its notes, if any; and last, toward principal of its contracts, if any. While more than one note or more than one contract is held, priority of payment of interest shall be given to the one of earliest date, and after interest accrued on all notes is paid, similar priority shall be given in the application of any remaining amount to the payment of principal. In any year when the receipts from a district are not sufficient to pay the interest accrued on any of its notes or contracts, the deficiency shall be added to the principal, and the commissioner shall notify the district and each county auditor concerned of the new amount of principal of the note or contract.

Sec. 18. [124.825] [HISTORIC BUILDING REVENUE.]

Subd. 2. [REVENUE.] A district's historic building revenue is equal to $100 times the number of actual pupil units served in the school building.

Subd. 3. [LEVY.] To obtain historic building revenue, a district may levy an amount, not to exceed the district's revenue, equal to the district's revenue authority for that year times the lesser of one or the ratio of the adjusted net tax capacity divided by its actual pupil units for that school year to the equalizing factor.

Subd. 4. [AID.] A district's historic building aid is equal to the difference between the district's revenue minus the levy. If a district does not levy the entire amount permitted, the district's aid must be reduced in proportion to the amount levied.

Sec. 19. Minnesota Statutes 1996, section 124.83, subdivision 1, is amended to read:

Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive health and safety revenue for any fiscal year a district must submit to the commissioner of children, families, and learning an application for aid and levy by the date determined by the commissioner. The application may be for hazardous substance removal, fire and life safety code repairs, labor and industry regulated facility and equipment violations, and health, safety, and environmental management, including indoor air quality management. The application must include a health and safety program adopted by the school district board. The program must include the estimated cost, per building, of the program by fiscal year.

Sec. 20. Minnesota Statutes 1996, section 124.83, subdivision 2, is amended to read:

Subd. 2. [CONTENTS OF PROGRAM.] A district must adopt a health and safety program. The program must include plans, where applicable, for hazardous substance removal, fire and life safety code repairs, regulated facility and equipment violations, and health, safety, and environmental management, including indoor air quality management.

(a) A hazardous substance plan must contain provisions for the removal or encapsulation of asbestos from school buildings or property, asbestos-related repairs, cleanup and disposal of polychlorinated biphenyls found in school buildings or property, and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296.01. If a district has already developed a plan for the removal or encapsulation of asbestos as required by the federal Asbestos Hazard Emergency Response Act of 1986, the district may use a summary of that plan, which includes a description and schedule of response actions, for purposes of this section. The plan must also contain provisions to make modifications to existing facilities and equipment necessary to limit personal exposure to hazardous substances, as regulated by the federal Occupational Safety and Health Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is determined by the commissioner to present a significant risk to district staff or student health and safety as a result of foreseeable use, handling, accidental spill, exposure, or contamination.

(b) A fire and life safety plan must contain a description of the current fire and life safety code violations, a plan for the removal or repair of the fire and life safety hazard, and a description of safety preparation and awareness procedures to be followed until the hazard is fully corrected.

(c) A facilities and equipment violation plan must contain provisions to correct health and safety hazards as provided in department of labor and industry standards pursuant to section 182.655.

(d) A health, safety, and environmental management plan must contain a description of training, record keeping, hazard assessment, and program management as defined in section 124.829.

(e) A plan to test for and mitigate radon produced hazards.

(f) A plan to monitor and improve indoor air quality.

Sec. 21. Minnesota Statutes 1996, section 124.91, subdivision 1, is amended to read:

subdivision 10, are insufficient for this purpose, it may apply to the commissioner for permission to make an additional capital expenditure levy for this purpose. An application for permission to levy under this subdivision must contain financial justification for the proposed levy, the terms and conditions of the proposed lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must include: the reasonableness of the price, the appropriateness of the space to the proposed activity, the feasibility of transporting pupils to the leased building or land, conformity of the lease to the laws and rules of the state of Minnesota, and the appropriateness of the proposed lease to the space needs and the financial condition of the district. The commissioner must not authorize a levy under this subdivision in an amount greater than the cost to the district of renting or leasing a building or land for approved purposes. The proceeds of this levy must not be used for custodial or other maintenance services. A district may not levy under this subdivision for the purpose of leasing or renting a district-owned building to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this subdivision for the purpose of: (i) leasing a building or land with an option to purchase under section 465.71; or (ii) leasing a building or land used primarily for purposes other than special or alternative education instruction from a cooperative unit of government, as defined in section 123.35, subdivision 19b, paragraph (d), that the cooperative unit is leasing with an option to purchase under section 465.71, if the commissioner determines that the payment required for the purchase at the end of the term of the lease is less than the projected market value of the property.

Sec. 22. Minnesota Statutes 1996, section 124.95, subdivision 2, is amended to read:

Subd. 2. [ELIGIBILITY.] (a) The following portions of a district's debt service levy qualify for debt service equalization:

(1) debt service for repayment of principal and interest on bonds issued before July 2, 1992;

(2) debt service for bonds refinanced after July 1, 1992, if the bond schedule has been approved by the commissioner and, if necessary, adjusted to reflect a 20-year maturity schedule; and

(3) debt service for bonds issued after July 1, 1992, for construction projects that have received a positive review and comment according to section 121.15, if the commissioner has determined that the district has met the criteria under section 124.431, subdivision 2, and if the bond schedule has been approved by the commissioner and, if necessary, adjusted to reflect a 20-year maturity schedule.

(b) The criterion in section 124.431, subdivision 2, paragraph (a), clause (2), shall be considered to have been met if the district in the fiscal year in which the bonds are authorized at an election conducted under chapter 475:

(i) serves an average of at least 66 pupils per grade in the grades to be served by the facility; or

(ii) is eligible for elementary or secondary sparsity revenue.

(c) The criterion described in section 124.431, subdivision 2, paragraph (a), clause (9), does not apply to bonds authorized by elections held before July 1, 1992.

(d) The criterion in section 124.431, subdivision 2, paragraph (a), clause (2), shall also be considered to have been met if the construction project under review serves students in elementary school grades. Only the debt service levy for that portion of the facility serving students in elementary school grades, as determined by the commissioner, shall be eligible for debt service equalization under this paragraph.

(e) For the purpose of this subdivision the department shall determine the eligibility for sparsity at the location of the new facility, or the site of the new facility closest to the nearest operating school if there is more than one new facility.

Sec. 23. Minnesota Statutes 1996, section 124.961, is amended to read:

124.961 [DEBT SERVICE APPROPRIATION.]

(a) $30,054,000 $35,679,000 in fiscal year 1996 1998, $28,162,000 $37,986,000 in fiscal year 1997 1999, and $33,948,000 $38,211,000 in fiscal year 1998 2000 and each year thereafter is appropriated from the general fund to the commissioner of children, families, and learning for payment of debt service equalization aid under section 124.95. The 1998 2000 appropriation includes $4,970,000 $3,821,000 for 1997 1999 and $28,978,000 $34,390,000 for 1998 2000.

(b) The appropriations in paragraph (a) must be reduced by the amount of any money specifically appropriated for the same purpose in any year from any state fund.

Sec. 24. Minnesota Statutes 1996, section 124A.22, subdivision 10, is amended to read:

Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For fiscal year 1997 and thereafter, total operating capital revenue for a district equals the amount determined under paragraph (b), (c), (d), (e), or (f), plus $68 times the actual pupil units for the school year. The revenue must be placed in a reserved account in the general fund and may only be used according to subdivision 11.

(b) For fiscal years 1996 and later, capital revenue for a district equals $100 times the district's maintenance cost index times its actual pupil units for the school year.

(c) For 1996 and later fiscal years, the previous formula revenue for a district equals $128 times its actual pupil units for fiscal year 1995.

(d) Notwithstanding paragraph (b), for fiscal year 1996, the revenue for each district equals 25 percent of the amount determined in paragraph (b) plus 75 percent of the previous formula revenue.

(e) Notwithstanding paragraph (b), for fiscal year 1997, the revenue for each district equals 50 percent of the amount determined in paragraph (b) plus 50 percent of the previous formula revenue.

(f) Notwithstanding paragraph (b), for fiscal year 1998, the revenue for each district equals 75 percent of the amount determined in paragraph (b) plus 25 percent of the previous formula revenue.

(g) The revenue for a district that operates a program under section 121.585, is increased by an amount equal to $15 $30 times the number of actual pupil units at the site where the program is implemented. This revenue shall be used for air conditioning and other capital needs related to the program.

Sec. 25. Minnesota Statutes 1996, section 124A.22, subdivision 11, is amended to read:

Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total operating capital revenue may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes, up to $400,000;

(3) to rent or lease buildings, including the costs of building repair or improvement that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school buildings with permanent attached fixtures;

(5) for a surplus school building that is used substantially for a public nonschool purpose;

(7) to bring school buildings into compliance with the uniform fire code adopted according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296.01;

(11) for energy audits for school buildings and to modify buildings if the audit indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123.36, subdivision 10;

(13) to pay special assessments levied against school property but not to pay assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to section 216C.37 or loans made under the northeast Minnesota economic protection trust fund act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by school board resolution, to transfer money into the debt redemption fund to: (i) pay the amounts needed to meet, when due, principal and interest payments on certain obligations issued according to chapter 475; or (ii) pay principal and interest on debt service loans or capital loans according to section 124.44;

(17) to pay capital expenditure equipment-related assessments of any entity formed under a cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines, telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library books;

(22) to purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required for students with individual education plans; and

(iii) other classroom information management needs; and

(24) to pay personnel costs directly related to the acquisition, operation, and maintenance of telecommunications systems, computers, related equipment, and network and applications software.

Sec. 26. [INDOOR AIR QUALITY ADVISORY COMMITTEE.]

Subd. 2. [MEMBERSHIP.] The advisory committee shall consist of no more than 15 members appointed by the commissioner. Up to ten members shall be appointed from the public, including teachers, parents, and other persons. At least three of the public members shall possess expertise regarding indoor air quality. One member shall be appointed from the medical profession. One member shall be appointed from each of the following educational organizations: (1) Minnesota school boards association; (2) Minnesota rural education association; (3) schools for equity in education; and (4) association of metropolitan school districts. Each of these educational organizations shall propose one member for appointment. The commissioner shall consider regional representation in appointing members.

Subd. 3. [EXPIRATION.] The indoor air quality advisory committee expires July 1, 1998.

Sec. 27. [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.]

Subdivision 1. [DUTIES.] The department of children, families, and learning will, in collaboration with the departments of health and administration, school districts, and other public agencies, develop the following:

(1) an indoor air quality maintenance manual;

(2) a planning and construction manual to ensure indoor air quality; and

(3) a public information plan for students, parents, staff, and other members of the public.

The above products will contain the following elements:

(1) process standards for school districts and the department of children, families, and learning to follow when addressing indoor air quality concerns;

(2) informational materials for a model school district indoor air quality program;

(3) training needs for school district employees;

(4) procedures for school districts when disseminating indoor air quality information and test results to parents, teachers, and others;

(5) indoor air quality considerations under the review and comment process for school buildings, specific evaluations of proposed construction standards and materials, to be included in the review and comment standards;

(6) building systems maintenance and housekeeping practices required to ensure adequate indoor air quality;

(7) architectural, engineering, maintenance engineering, and other design practices to positively affect indoor air quality;

(8) regional and state resources available to assist districts with information and training needs of school staff, parents, and community;

(9) regional and state resources available to assist districts with medical evaluation relative to indoor air quality complaints; and

(10) recommended steps a district should take to attain a satisfactory level of indoor air quality.

Subd. 2. [MANUAL; REPORT.] The indoor air quality resource manual shall be made available for distribution and training February 1, 1998, and a report regarding the status of indoor air quality in Minnesota schools shall be made to the 1998 legislature.

Sec. 28. [REVENUE USE APPROVAL.]

Sec. 29. [INTERDISTRICT COOPERATION FOR SCHOOL DISTRICT NO. 638, SANBORN.]

Notwithstanding Minnesota Statutes, section 122.541, subdivision 1, or other law to the contrary, independent school district No. 638, Sanborn, may participate in an interdistrict cooperation agreement with independent school district No. 178, Storden-Jeffers, and independent school district No. 633, Lamberton, although independent school district No. 638, Sanborn, does not operate a school with at least three grades. Resident pupils of independent school district No. 638, Sanborn, may be educated in either of the other two cooperating districts.

Sec. 30. [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.]

Independent school district No. 2144, Chisago Lakes Area, may modify its plan adopted according to Minnesota Statutes, section 122.242, subdivision 9, clause (1), so that independent school district No. 2144 assumes all of the remaining debt service as of the effective date of this section for bonds that were outstanding at the time of the combination of independent school districts No. 141, Chisago Lakes and No. 140, Taylors Falls, and the tax levy for that debt service is spread on all the property in independent school district No. 2144, Chisago Lakes Area.

Sec. 31. [TEACHER RETIREMENT DATE.]

Notwithstanding Minnesota Statutes, section 354.44, subdivision 4, teachers retiring in June 1997 from the high school in independent school district No. 701, Hibbing, shall have May 30, 1997, as their date of retirement for the purpose of receiving retirement benefits.

Sec. 32. [DEBT SERVICE EQUALIZATION AID.]

Notwithstanding Minnesota Statutes, section 124.95, subdivision 2, for the purpose of determining eligibility for debt service equalization aid for independent school district No. 2835, Janesville-Waldorf-Pemberton, the department of children, families, and learning must include pupils presently attending nonpublic schools to determine the average number of pupils served per grade in the proposed facility.

Sec. 33. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [SPECIAL CONSOLIDATION AID.] For special consolidation aid under Minnesota Statutes, section 124.2728:

$3,000 . . . . . 1998

The 1998 appropriation includes $3,000 for 1997 and $0 for 1998.

Subd. 3. [CONSOLIDATION TRANSITION AID.] For districts consolidating under Minnesota Statutes, section 124.2726:

$1,254,000 . . . . . 1998

$1,151,000 . . . . . 1999

The 1998 appropriation includes $67,000 for 1997 and $1,187,000 for 1998.

The 1999 appropriation includes $131,000 for 1998 and $1,020,000 for 1999.

Subd. 4. [COOPERATION AND COMBINATION AID.] For aid for districts that cooperate and combine according to Minnesota Statutes, section 124.2725:

$562,000 . . . . . 1998

$ 42,000 . . . . . 1999

The 1998 appropriation includes $178,000 for 1997 and $384,000 for 1998.

The 1999 appropriation includes $42,000 for 1998 and $0 for 1999.

Any balance in the first year does not cancel but is available in the second year.

Subd. 5. [DISTRICT COOPERATION REVENUE.] For district cooperation revenue aid:

$9,766,000 . . . . . 1998

$ 954,000 . . . . . 1999

The 1998 appropriation includes $1,172,000 for 1997 and $8,594,000 for 1998.

The 1999 appropriation includes $954,000 for 1998 and $0 for 1999.

Subd. 6. [INTERAGENCY COLLABORATION GRANTS.] For interagency collaboration grants to plan and implement collaborative programs between school districts, cities, counties, and other local units of government in the governance, administration, and operations of those local public entities:

$500,000 . . . . . 1998

Grants of up to $100,000 shall be awarded to plan and implement systems of joint governance, management, and delivery of programs and services which result in more effective and efficient services for children, families, and adults. Programs and services include, but are not limited to:

(1) long-range planning among local governing boards;

(2) transportation and vehicle maintenance;

(3) buildings and grounds management;

(4) food and nutrition services;

(5) business affairs;

(6) technology support; and

(7) library services.

The department of children, families, and learning shall give preference to local units of government that have previously demonstrated success in family collaboratives or other collaborative efforts.

Any balance available in the first year does not cancel but is available in the second year.

Subd. 7. [HIBBING GRANT.] For a grant to independent school district No. 701, Hibbing, for expenses not covered by insurance for a fire loss at Hibbing high school:

Independent school district No. 701, Hibbing, shall reimburse the state general fund for any expenses covered by this appropriation that are recovered as a result of a lawsuit related to the fire loss at Hibbing high school.

Subd. 8. [HISTORIC BUILDING AID.] For historic building aid under section 124.825:

$173,000 . . . . . 1998

$173,000 . . . . . 1999

Subd. 9. [PLANNING GRANT; ISLE.] For a facilities planning grant to independent school district No. 473, Isle:

$50,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 10. [ENVIRONMENTAL SPECIALIST.] For an environmental specialist at the department of children, families, and learning:

$50,000 . . . . . 1998

$50,000 . . . . . 1999

Sec. 34. [EFFECTIVE DATES.]

(a) Sections 1; 3; 12; 13; 28; 29; 31; and 33, subdivision 7, are effective the day following final enactment.

(b) Section 18 is effective for revenue for fiscal year 1999 and thereafter.

(c) Section 22 is effective for bonds authorized under Minnesota Statutes, chapter 475, in fiscal year 1997 and thereafter.

(d) Section 30 is effective the day following compliance by the school board of independent school district No. 2144, Chisago Lakes Area, with Minnesota Statutes, section 645.021.

(e) Section 32 is effective for bonds authorized by voters under Minnesota Statutes, chapter 475, during calendar year 1997 or 1998 only.

Section 1. Minnesota Statutes 1996, section 120.064, subdivision 3, is amended to read:

Subd. 3. [SPONSOR.] A school board, community college, state university, technical college, the state board of education, or the University of Minnesota may sponsor one or more charter schools.

No more than a total of 40 charter schools may be authorized not more than three of which may be sponsored by public post-secondary institutions. The state board of education shall advise potential sponsors when the maximum number of charter schools has been authorized.

Sec. 2. Minnesota Statutes 1996, section 120.064, subdivision 4, is amended to read:

Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may authorize any of the following types of applicants to operate a charter school:

(2) an individual, parent or group of parents, or a nonprofit organization governed by chapter 317A or operating as a tax exempt organization for educational purposes only under chapter 501(c)(3) of the Internal Revenue Code.

(b) When the sponsor is not the state board of education, the authorization is subject to the approval of the state board.

(c) When an applicant under paragraph (a), clause (2), seeks sponsorship directly from an entity other than a school board under subdivision 3, the applicant must submit for review and comment a copy of its proposal for sponsorship to the school board of the district of the proposed location of the charter school. The application may proceed simultaneously with the board's review and comment.

(d) If an applicant has sought sponsorship from a school board or a post-secondary institution and the school board or post-secondary institution elects not to sponsor a the charter school, the applicant may appeal the school board's decision of the school board or post-secondary institution to the state board of education if two members of the school board voted to sponsor the school. If the state board authorizes the school, the state board shall sponsor the school according to this section. The school shall be organized and operated as a cooperative under chapter 308A or nonprofit corporation under chapter 317A.

(b) (e) Before the operators may form and operate as a school, the a sponsor, other than the state board, must file an affidavit with the state board of education stating its intent to authorize a charter school. The affidavit must state the terms and conditions under which the sponsor would authorize a charter school. The state board must approve or disapprove the sponsor's proposed authorization within 60 days of receipt of the affidavit. Failure to obtain state board approval precludes a sponsor from authorizing the charter school that was the subject of the affidavit.

(c) (f) The operators authorized to organize and operate a school shall hold an election for members of the school's board of directors in a timely manner after the school is operating. Any staff members who are employed at the school, including teachers providing instruction under a contract with a cooperative, and all parents of children enrolled in the school may participate in the election. Licensed teachers employed at the school, including teachers providing instruction under a contract with a cooperative, must be a majority of the members of the board of directors., except when an alternative governance arrangement is approved by the state board. When an individual, parent or group of parents, or nonprofit organization that contracts for its instructional programs operate a school, teachers are not required to be a majority of the members of the board of directors. A provisional board may operate before the election of the school's board of directors. Board of director meetings must comply with section 471.705.

(d) (g) The granting or renewal of a charter by a sponsoring entity shall not be conditioned upon the bargaining unit status of the employees of the school.

Sec. 3. Minnesota Statutes 1996, section 120.064, subdivision 4a, is amended to read:

Subd. 4a. [CONVERSION OF EXISTING SCHOOLS.] A school board may convert one or more of its existing schools to charter schools under this section if 90 percent a majority of the full-time teachers at the school sign a petition seeking conversion. The conversion must occur at the beginning of an academic year.

Sec. 4. Minnesota Statutes 1996, section 120.064, subdivision 5, is amended to read:

Subd. 5. [CONTRACT.] The sponsor's authorization for a charter school shall be in the form of a written contract signed by the sponsor and the board of directors of the charter school. The contract is binding on both parties during its entire term except if the parties to the contract mutually agree to modify or terminate or the contract is terminated under subdivision 21. The contract for a charter school shall be in writing and contain at least the following:

(1) a description of a program that carries out one or more of the purposes in subdivision 1;

(2) specific outcomes pupils are to achieve under subdivision 10;

(4) management and administration of the school;

(5) requirements and procedures for program and financial audits;

(6) how the school will comply with subdivisions 8, 13, 15, and 21;

(7) assumption of liability by the charter school;

(8) types and amounts of insurance coverage to be obtained by the charter school; and

(9) the term of the contract, which may be up to shall be three school years.

Sec. 5. Minnesota Statutes 1996, section 120.064, subdivision 8, is amended to read:

Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet all applicable state and local health and safety requirements.

(b) The A school must sponsored by a school district may be located in the sponsoring any district, unless another the school board agrees to locate a charter school sponsored by another district in its boundaries of the district of the proposed location disapproves and has not adopted a resolution under section 120.062, subdivision 3. If such a school board denies a request to locate within its boundaries a charter school sponsored by another district school board, the sponsoring district school board may appeal to the state board of education. If the state board authorizes the school, the state board shall sponsor the school. A school sponsored by a post-secondary institution may be located at any place the institution considers convenient. Before agreeing to sponsor a charter school, a post-secondary institution that sponsors a charter school shall notify the school district of its intent to locate a charter school in that district.

(c) A charter school must be nonsectarian in its programs, admission policies, employment practices, and all other operations. A sponsor may not authorize a charter school or program that is affiliated with a nonpublic sectarian school or a religious institution.

(d) Charter schools shall not be used as a method of providing education or generating revenue for students who are being home schooled.

(e) The primary focus of a charter school must be to provide a comprehensive program of instruction for at least one grade or age group from five through 18 years of age. Instruction may be provided to people younger than five years and older than 18 years of age.

(f) A charter school may not charge tuition.

(g) A charter school is subject to and shall comply with chapter 363 and section 126.21.

(h) A charter school is subject to and shall comply with the pupil fair dismissal act, sections 127.26 to 127.39, and the Minnesota public school fee law, sections 120.71 to 120.76.

(i) A charter school is subject to the same financial audits, audit procedures, and audit requirements as a school district. The audit must be consistent with the requirements of sections 121.904 to 121.917, except to the extent deviations are necessary because of the program at the school. The department of children, families, and learning, state auditor, or legislative auditor may conduct financial, program, or compliance audits.

(j) A charter school is a school district for the purposes of tort liability under chapter 466.

(k) A charter school is subject to the graduation rule requirements under section 121.11, subdivision 7c, and system accountability and public reporting requirements under section 121.1115.

Sec. 6. Minnesota Statutes 1996, section 120.064, subdivision 11, is amended to read:

hold teaching licenses to perform duties other than teaching and may contract for other services. The school may discharge teachers and nonlicensed employees.

(b) A charter school may enter into a contract for teaching or administrative services related to instruction only with:

(1) an individual teacher for the teaching services of that teacher;

(2) an individual administrator for the administrative services of that administrator; or

(3) a nonprofit entity not controlled by or under common control with a related organization as defined in section 317A.011, subdivision 18, that is other than a nonprofit corporation.

(c) The board of directors also shall decide matters related to the operation of the school, including budgeting, curriculum and operating procedures.

Sec. 7. Minnesota Statutes 1996, section 120.064, is amended by adding a subdivision to read:

Subd. 14a. [REVIEW AND COMMENT.] The department shall review and comment on the evaluation, by the chartering school district, of the performance of a charter school before the charter school's contract is renewed. The information from the review and comment shall be reported to the state board of education in a timely manner.

Sec. 8. Minnesota Statutes 1996, section 120.064, subdivision 20a, is amended to read:

Subd. 20a. [TEACHERS TEACHER AND OTHER EMPLOYEE RETIREMENT.] (a) Teachers in a charter school shall be public school teachers for the purposes of chapters 354 and 354a.

(b) Except for teachers under paragraph (a), employees in a charter school shall be public employees for the purposes of chapter 353.

Sec. 9. Minnesota Statutes 1996, section 120.064, is amended by adding a subdivision to read:

Subd. 21a. [DISPOSITION OF ASSETS AND LIABILITIES UPON DISSOLUTION.] When a charter school, whether organized as a nonprofit under chapter 317A or a cooperative under chapter 308A, is dissolved, the school shall comply with the dissolution procedures under chapter 501B and either chapter 317A or chapter 308A.

Sec. 10. Minnesota Statutes 1996, section 121.11, subdivision 7c, is amended to read:

Subd. 7c. [RESULTS-ORIENTED GRADUATION RULE.] (a) The legislature is committed to establishing a rigorous, results-oriented graduation rule for Minnesota's public school students. To that end, the state board shall use its rulemaking authority under subdivision 7b to adopt a statewide, results-oriented graduation rule to be implemented starting with students beginning ninth grade in the 1996-1997 school year. The board shall not prescribe in rule or otherwise the delivery system, form of instruction, or a single statewide form of assessment that local sites must use to meet the requirements contained in this rule.

(b) To successfully accomplish paragraph (a), the state board shall set in rule high academic standards for all students. The standards must contain the foundational skills in the three core curricular areas of reading, writing, and mathematics while meeting requirements for high school graduation. The standards must also provide an opportunity for students to excel by meeting higher academic standards through a profile of learning that uses curricular requirements to allow students to expand their knowledge and skills beyond the foundational skills. All state board actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and schools;

(3) the department of children, families, and learning, with the assistance of school districts, must make available information about all state initiatives related to the rule to students and parents, teachers, and the general public in a timely format that is appropriate, comprehensive, and readily understandable.

(c) For purposes of adopting the rule, the state board, in consultation with the department, recognized psychometric experts in assessment, and other interested and knowledgeable educators, using the most current version of professional standards for educational testing, shall evaluate the alternative approaches to assessment.

(d) The content of the graduation rule must differentiate between minimum competencies reflected in the basic requirements assessment and rigorous profile of learning standards. When fully implemented, the requirements for high school graduation in Minnesota must include both basic requirements and the required profile of learning. The profile of learning must measure student performance using performance-based assessments compiled over time that integrate higher academic standards, higher order thinking skills, and application of knowledge from a variety of content areas. The profile of learning shall include a broad range of academic experience and accomplishment necessary to achieve the goal of preparing students to function effectively as purposeful thinkers, effective communicators, self-directed learners, productive group participants, and responsible citizens.

(e) The state board shall periodically review and report on the assessment process and student achievement with the expectation of raising the standards and expanding high school graduation requirements, and may use its rulemaking authority to amend an existing graduation rule by adding, modifying, or deleting a measure to accommodate a changed educational policy or circumstance. The state board shall provide the chairs of the education committees in the house and senate with a copy of any proposed amendment to an existing graduation rule at least ten business days before the amended rule is formally adopted.

(f) The state board shall report in writing to the legislature annually by January 15 on its progress in developing and implementing the graduation requirements according to the requirements of this subdivision and section 123.97 until such time as all the graduation requirements are implemented.

Sec. 11. Minnesota Statutes 1996, section 121.1115, is amended by adding a subdivision to read:

Subd. 1a. [EDUCATIONAL ACCOUNTABILITY; PURPOSE.] (a) An independent office of educational accountability is established to address the needs for educational accountability, credible information on the condition of prekindergarten to grade 12 education in Minnesota, cost-effectiveness, and long-term continuity, and to separate accountability and public reporting from monitoring and administrative oversight. The office shall consider and periodically report to the legislature, at least on a biennial basis, on the needs of students and the condition of education in Minnesota.

(b) In realizing its purpose under paragraph (a), the office of educational accountability shall advise the legislature on the degree to which the statewide educational accountability and reporting system includes a comprehensive, performance-based assessment framework that makes schools accountable for students achieving the goals described in the state's high school graduation rule. The office shall consider whether the statewide system of educational accountability provides useful comparative and contextual data on students, schools, districts, and the state, and whether it includes:

(1) public reporting on the condition of the educational system using multiple indicators that are essential to describing and understanding the needs of children and youth and apply to all students;

(2) a core set of educational indicators that are comparable and capable of being aggregated across school districts and across time on a statewide basis;

(3) public reporting on the condition of the educational system that supports the direction of state educational policy;

(4) a public reporting system that is flexible, permits the adding, modifying, and deleting of measures as policies and circumstances change;

(6) reports of performance information that assure all students' privacy and confidentiality;

(7) student performance indicators that contain clearly articulated standards of student performance and have broad community support;

(8) reports of educational performance that reflect current results and trends over time;

(9) a reporting system that reduces and consolidates the existing reporting burden on school districts by better using existing information and building on current data reporting systems at the state and district levels; and

(10) a reporting system that is managed in a nonpartisan and highly competent manner to ensure the public's use and confidence and minimizes the reporting burden on school districts. To the extent the statewide educational accountability and reporting system does not include a comprehensive, performance-based assessment framework that makes schools accountable for students achieving the goals described in the state's high school graduation rule, or does not provide useful comparative and contextual data on students, schools, districts, and the state, the office shall recommend to the legislature ways to improve the accountability and reporting system.

(c) When the office reviews the statewide educational accountability and reporting system, it shall also:

(1) consider the objectivity and neutrality of the state's educational accountability system;

(2) develop strong relationships with other policy actors and with leaders outside government;

(3) recommend a uniform, statewide policy applicable to all schools and school districts regarding the participation or exclusion of students with special needs or limited English proficiency on statewide assessments; and

(4) consider the impact of a high stakes testing program on school curriculum and student learning.

(d) A technical quality review advisory panel is established to assist the office of educational accountability in clearly articulating the criteria for judging the statewide education accountability and reporting system. Among other things, the criteria shall measure the extent to which the system:

(1) creates intended and unintended consequences;

(2) is fairly administered;

(3) evaluates the desired and appropriate complex intellectual processes;

(4) is relevant and meaningful to teachers, students, and parents;

(5) evaluates skills that are transferable;

(6) is cost-efficient; and

(7) is comprehensive in its coverage of content.

Panel members shall include psychometricians and other experts in the field of student assessment, an elementary school teacher employed in a state public school, a secondary school teacher employed in a state public school, a curriculum and instruction director employed in a state public school, and a local school administrator. Panel members are appointed by and serve at the pleasure of the speaker of the house, the house minority leader, the majority leader of the senate, and the senate minority leader. Panel members shall receive compensation according to section 15.059, subdivision 3.

Sec. 12. Minnesota Statutes 1996, section 121.1115, is amended by adding a subdivision to read:

Subd. 1b. [STATEWIDE TESTING POLICY.] (a) The commissioner shall include the following components in the statewide educational accountability and public reporting system:

(1) a statewide testing system that is consistent with the provisions of section 121.11, subdivision 7c, as amended by Laws 1997, chapter 1, section 1; and

(2) in order to identify successful and at-risk schools, an evaluation of school site and school district performance levels during the 1997-1998 school year and thereafter using an established performance baseline developed from students' test scores that reflects students' unweighted, mean test scores in each tested subject, and identifies demographic factors that strongly correlate with student performance listed in subdivision 2.

(b) The commissioner shall integrate into the statewide educational accountability and public reporting system a method for rewarding a school that achieves a specified gain over its threshold level for school improvement and for assisting a school that fails to achieve a specified gain or fails to reach its threshold level for school improvement. The commissioner shall integrate the distinguished teachers program under section 121.1116 into any school improvement plan.

Sec. 13. [121.1116] [DISTINGUISHED TEACHERS PROGRAM.]

The commissioner shall develop a distinguished teachers program to assist schools in improving performance and increasing accountability consistent with the requirements of section 121.1115, subdivision 1b. Outstanding and highly skilled licensed teachers who deserve recognition for their excellent teaching and who are willing to fulfill the purposes of the program shall be designated a "distinguished teacher."

Sec. 14. Minnesota Statutes 1996, section 121.611, is amended to read:

121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.]

Subdivision 1. [AUTHORIZATION.] Notwithstanding any law or state board of education rule to the contrary, the board of teaching may allow school districts or charter schools to hire nonlicensed community experts to teach in the public schools or charter schools on a limited basis according to this section.

Subd. 2. [APPLICATIONS; CRITERIA.] The school district or charter school shall apply to the board of teaching for approval to hire nonlicensed teaching personnel from the community. In approving or disapproving the district's application for each community expert, the board shall consider:

(1) the qualifications of the community person whom the district or charter school proposes to employ;

(2) the reasons for the district's need for a variance from the teacher licensure requirements;

(3) the district's efforts to obtain licensed teachers, who are acceptable to the school board, for the particular course or subject area or the charter school's efforts to obtain licensed teachers for the particular course or subject area;

(4) the amount of teaching time for which the community expert would be hired;

(5) the extent to which the district or charter school is utilizing other nonlicensed community experts under this section;

(6) the nature of the community expert's proposed teaching responsibility; and

(7) the proposed level of compensation to the community expert.

Sec. 15. Minnesota Statutes 1996, section 124.248, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION AND REFERENDUM REVENUE.] (a) General education revenue and referendum revenue shall be paid to a charter school as though it were a school district.

(b) The general education revenue for each pupil unit is the state average general education revenue per pupil unit minus $170, calculated without compensatory revenue, transportation sparsity revenue, and the transportation portion of the transition revenue adjustment, plus compensatory, limited English proficiency and assurance of mastery revenue as though the school were a school district.

(c) The referendum revenue for each pupil unit is the referendum equalization revenue per pupil unit in the resident district according to section 124A.03, subdivision 1f, if approved or renewed after July 1, 1997.

Sec. 16. Minnesota Statutes 1996, section 125.05, subdivision 1c, is amended to read:

Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF ETHICS.] The state board of education shall issue licenses under its jurisdiction to persons the state board finds to be qualified and competent for their respective positions under the rules it adopts. The state board of education must develop, by rule, a code of ethics for supervisory and coaching personnel covering standards of professional practices, including areas of ethical conduct and professional performance and methods of enforcement. The state board of education shall consult with the affected personnel when developing a code of ethics.

Sec. 17. Minnesota Statutes 1996, section 125.05, subdivision 2, is amended to read:

Subd. 2. [EXPIRATION AND RENEWAL.] (a) Each license issued the department of children, families, and learning issues through the its licensing section of the department of children, families, and learning must bear the date of issue. Licenses must expire and be renewed in accordance with according to the respective rules adopted by the board of teaching or the state board of education adopts. Requirements for renewal of renewing a license must include production of showing satisfactory evidence of successful teaching experience for at least one school year during the period covered by the license in grades or subjects for which the license is valid or completion of completing such additional preparation as the board of teaching shall prescribe prescribes. The state board of education shall establish requirements for renewal of renewing the licenses of supervisory personnel must be established by the state board of education.

(b) The board of teaching may offer alternative continuing relicensure options for teachers who are accepted into and complete the national board for professional teaching standards certification process, and offer additional continuing relicensure options for teachers who earn national board for professional teaching standards certification. Continuing relicensure requirements for teachers who do not maintain national board for professional teaching standards certification are those the board prescribes.

(c) The board of teaching may consider making technology instruction or technology proficiency a requirement for continuing education and relicensure under its teacher licensing rules.

Sec. 18. Minnesota Statutes 1996, section 128C.08, subdivision 5, is amended to read:

Subd. 5. [HEAD VARSITY COACH; CODE OF ETHICS.] (a) A head varsity coach may be excluded under this section only by the school board employing the coach.

(b) The board of directors of the Minnesota state high school league or a school board may exclude from any high school league activity any coach the school board employs who violates the code of ethics for coaching personnel under section 125.05, subdivision 1c.

Sec. 19. Laws 1995, First Special Session chapter 3, article 11, section 21, subdivision 3, is amended to read:

Subd. 3. [CHARTER SCHOOL EVALUATION.] For the state board of education to evaluate the performance of charter schools authorized according to Minnesota Statutes, section 120.064:

The state board must review and comment on the evaluation, by the chartering school district, of the performance of a charter school before that charter school's contract is renewed. The state board may provide assistance to a school district in evaluating a charter school that has been chartered by that school board. The board must report annually to the education committees of the legislature on the results of its evaluations. This amount is available until June 30, 1997.

Sec. 20. Laws 1996, chapter 412, article 4, section 34, subdivision 4, is amended to read:

Subd. 4. [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a grant for community-based charter schools or other schools located in independent school district No. 625, St. Paul:

$300,000 . . . . . 1997

The commissioner may establish criteria and any reporting or match requirements for the grant under this section.

Sec. 21. [RECOMMENDATIONS FOR SUPERVISORY AND COACHING PERSONNEL CODE OF ETHICS.]

Subdivision 1. [ADVISORY GROUP.] The state board of education shall convene by July 1, 1997, an advisory group to recommend to the state board the standards of professional practices for supervisory and coaching personnel, including provisions affecting ethical conduct, professional performance, and enforcement methods, consistent with the requirements in Minnesota Statutes, section 125.05, subdivision 1c, directing the state board to adopt in rule a code of ethics for supervisory and coaching personnel. The state board shall appoint the following seven members to the advisory group: two elementary school principals; two secondary school principals; one school superintendent; one other representative of supervisory personnel; and one athletic coach. Once convened, the task force members shall select a task force member to preside over subsequent task force meetings. The department of children, families, and learning may provide staff support for advisory group activities at the request of the advisory group.

Subd. 2. [ADVISORY GROUP RECOMMENDATIONS.] The advisory group shall present timely recommendations concerning appropriate standards of professional practices for supervisory and coaching personnel to the state board. The state board shall consider the advisory group recommendations when formulating its rule establishing a code of ethics for supervisory and coaching personnel.

Subd. 3. [EXPIRATION.] The advisory group shall expire after presenting its recommendations to the state board, or on February 1, 1998, whichever occurs first.

Sec. 22. [EXEMPTION.]

Any contract entered into during the 1996-1997 school year authorizing a charter school under Minnesota Statutes 1996, section 120.064, subdivision 5, is exempt from the amended requirements of Minnesota Statutes 1996, section 120.064, subdivision 11, only as long as the sponsor of the charter school finds and can adequately demonstrate to the state board of education that the charter school continues without interruption to satisfactorily meet all its performance outcomes. If either the charter school sponsor or the state board of education determines that a charter school under this section is not satisfactorily meeting one or more of its performance outcomes, the amended requirements of Minnesota Statutes 1996, section 120.064, subdivision 11, apply to that charter school when the determination is made.

Sec. 23. [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING STANDARDS.]

Subdivision 1. [ESTABLISHMENT.] A grant program to promote professional teaching standards through the national board for professional teaching standards for fiscal year 1998 is established to provide eligible teachers with the opportunity to receive national board for professional teaching standards certification and to reward teachers who have already received this certification.

Subd. 3. [APPLICATION PROCESS.] To obtain a grant to participate in the national board for professional teaching standards certification process or to receive a reward for already completing the board certification process, a teacher must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner establishes. The applicant must demonstrate either that the national board for professional teaching standards has accepted the teacher as a candidate for board certification or that the teacher already has received board certification. The commissioner shall consult with the state board of teaching when reviewing the applications.

Subd. 4. [GRANT AWARDS; PROCEEDS.] (a) The commissioner may award grants of $1,500 each to eligible teachers accepted as candidates for national board for professional teaching standards certification. Grant recipients shall use the grant to participate in the certification process. Within 24 months of receiving certification, a grant recipient must satisfactorily complete one year of teaching service in a state public school or repay the state the amount of the grant, except if the commissioner determines that death or disability prevents the grant recipient from providing the one year of teaching service.

(b) The commissioner may award grants to eligible teachers who have already completed the national board for professional teaching standards certification process to reward their effort. The amount of each grant shall not exceed $1,500 and the commissioner shall establish criteria to determine the actual amount of each grant. Grant recipients shall use the grant proceeds for educational purposes, including purchasing instructional materials, equipment, or supplies and realizing professional development opportunities.

Sec. 24. [LABORATORY SCHOOL GRANTS.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of children, families, and learning shall make grants to post-secondary institutions to establish at least three laboratory schools that cooperate with interested school districts to develop innovative teaching techniques that enhance students' learning experiences. A laboratory school must be nonsectarian in its programs, admissions policies, employment practices, and all other operations. Two laboratory school sites shall focus on improving education for work, family, and community roles and responsibilities in high schools throughout Minnesota. One laboratory school for improving lifework learning must be located in the seven-county metropolitan area and one laboratory school for improving lifework learning must be located in greater Minnesota.

Subd. 2. [GRANT APPLICATION.] A public or private post-secondary institution located in the state may submit an application for a grant. Each grant application must include:

(1) the location of the laboratory school determined in collaboration with a school district, or proposed as a charter school;

(2) a five-year fiscal plan demonstrating that the school shall operate with no additional state revenue except revenue received under Minnesota Statutes, chapters 124 and 124A, and the grant money awarded under this section; and

(3) for an applicant seeking a grant to improve lifework learning, a description of how the applicant will use information technologies and participate in partnerships with kindergarten through grade 12 schools and post-secondary institutions, business and industry, labor, agriculture, government, and community-based organizations.

The commissioner of children, families, and learning, in consultation with interested post-secondary institutions, shall establish guidelines and an application process for the grants.

Subd. 3. [GRANT MONEY.] The grant money may be used for:

(1) transporting students;

(2) technology;

(3) equipment;

(5) building remodeling, renovation, or repair;

(6) disseminating innovative and effective teaching techniques;

(7) education research to develop teaching methods, assessments, and curriculum design;

(8) developing creative opportunities for parental involvement;

(9) furthering school integration efforts; and

(10) other inventive teaching and learning practices designed to implement the high school graduation standards under Minnesota Statutes, section 121.11, subdivision 7c.

Sec. 25. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT PROGRAM.]

(a) Consistent with the terms for receiving program grants under Laws 1995, First Special Session chapter 3, article 7, section 4, as amended by Laws 1996, chapter 412, article 7, section 13, independent school district No. 624, White Bear Lake, is eligible to receive additional grant funding for its year-round school/extended week or day pilot program.

(b) The commissioner of children, families, and learning, with the assistance of independent school district No. 624, shall evaluate the efficacy of the district's program and submit a report to the education committees of the legislature by February 1, 2000. The commissioner shall include in the report sufficient information to permit other school districts to readily replicate the program if the commissioner determines that the program is successful.

Sec. 26. [GIFTED AND TALENTED GRANTS.]

Subdivision 1. [ESTABLISHMENT.] Gifted and talented grants are established to provide access to an appropriate program for students identified as gifted or talented. A school district or any group of school districts must use the grants to establish a process for identifying gifted and talented students, offer access to challenging learning experiences for students in kindergarten through grade 12, and provide for staff development in meeting the learning needs of gifted and talented students.

Subd. 2. [ELIGIBILITY; CRITERIA.] An applicant for a gifted and talented grant must be a school district or any group of school districts. The commissioner of children, families, and learning, a representative of the alliance of the Minnesota educators of the gifted and talented, a representative of the Minnesota council of the gifted and talented, and a representative of the challenge task force shall establish the criteria for awarding grants for appropriate programs.

Subd. 3. [APPLICATION.] A school district or any group of school districts must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner establishes.

Subd. 4. [GRANT AWARDS.] A school district or any group of districts may receive a grant in the amount of $25 per pupil per year. The grant recipient must match one local dollar for every state dollar received. The local match may include in kind contributions.

Sec. 27. [COMMISSIONER OF CHILDREN, FAMILIES, AND LEARNING.]

The commissioner of children, families, and learning shall designate a staff member as a resource person for gifted and talented programs to provide assistance to parents and school districts. The commissioner shall pay all costs for that staff member out of existing department appropriations.

Sec. 28. [APPROPRIATIONS.]

Subd. 2. [STATEWIDE TESTING.] For implementing statewide testing and establishing a performance baseline under section 14:

$2,500,000 . . . . . 1998

$2,500,000 . . . . . 1999

The commissioner shall contract with an institution of higher education to establish an independent office of educational accountability.

Any balance in the first year does not cancel but is available in the second year.

Subd. 3. [LABORATORY SCHOOL GRANTS.] For laboratory school grants under section 24:

$ 5,000,000 . . . . . 1998

Any balance in the first year does not cancel but is available in the second year.

Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.] For the state advanced placement and international baccalaureate programs, including public school teacher summer training programs, follow-up teacher support workshops, examination fee subsidies, and student scholarships:

$1,875,000 . . . . . 1998

$1,875,000 . . . . . 1999

$400,000 each year is for teachers to attend subject matter summer training programs and follow-up support workshops approved by the advanced placement or international baccalaureate programs. The commissioner shall determine the payment process and the amount of the subsidy.

Notwithstanding Minnesota Statutes, section 126.239, subdivision 3, $1,175,000 each year is for the commissioner to pay all examination fees for all students sitting for an advanced placement examination, international baccalaureate examination, or both. If this amount is not adequate, the commissioner may pay less than the full examination fee.

$300,000 each year is for payments resulting from students' qualifying scores. A school that offers an advanced placement or international baccalaureate course shall receive an award for each student in that teacher's course who receives a qualifying score on the advanced placement or international baccalaureate examination that covers the subject matter of the course. The instructors who prepare students for advanced placement and international baccalaureate exams in those schools receiving awards under this subdivision shall use the awards to enhance the advanced placement or international baccalaureate program. In this section, "qualifying score" means 3 or better on an advanced placement examination and 4 or better on an international baccalaureate examination. Teacher stipend amounts shall be $50 for each student who scores a 5 on an advanced placement examination or 7 on an international baccalaureate examination, $40 for each student who scores a 4 on an advanced placement examination or a 5 or 6 on an international baccalaureate examination, and $25 for each student who scores a 3 on an advanced placement examination or a 4 on an international baccalaureate examination. The commissioner shall determine the payment process and the amount of the award to the school.

A performance award to a school under this subdivision shall not be a mandatory subject of bargaining under Minnesota Statutes, chapter 179A, or any other law and shall not be a term or condition of employment. The amount of any award shall be final and shall not be subject to review by an arbitrator through any grievance or other process or by a court through any appeal process.

Subd. 5. [TEACHER EDUCATION IMPROVEMENT.] For board of teaching responsibilities relating to teacher licensure restructuring and implementation of the teaching residency program:

$450,000 . . . . . 1998

$450,000 . . . . . 1999

$200,000 of this biennial appropriation is available to the board of teaching for further developing the results-oriented teacher licensure system, for pilot site grants and other methods of implementing the teacher residency program, and for programs relating to teacher mentoring.

$300,000 of this biennial appropriation is for grants to promote professional teaching standards under section 23. Of this amount, $100,000 may be used by the commissioner to pay for four half-time state coordinators that recruit and assist teacher candidates. The state coordinators shall be licensed kindergarten through grade 12 public school teachers.

Any balance in the first year does not cancel but is available in the second year.

Subd. 6. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a grant to independent school district, No. 625, St. Paul, for establishing and operating a community-based school program:

$3,000,000 . . . . . 1998

$3,000,000 . . . . . 1999

The purpose of the program is to improve student achievement and to provide an integrated set of academic, health, social, and recreational support services year-round, and for an extended day to children, families, and the community.

Independent school district No. 625 shall collaborate with the city of St. Paul; Ramsey county; the commissioner of children, families, and learning; and a nonprofit operating foundation located in St. Paul to establish and operate the program. Before implementing the program, the district must submit the following to the commissioner:

(1) the name and address of the school or schools to be community-based schools;

(2) the grade levels and number of students to be served;

(3) general demographic characteristics of the area and students to be served;

(4) the education curriculum and other programs to be offered;

(5) the goals of the school and the means to measure student achievement;

(6) a budget and operating plan, at least including the governing structure and commitments by the city, county, and foundation to the program; and

(7) documentation of community support.

This money may also be used to remodel, renovate, and repair buildings used for a community-based school program. This appropriation is available until June 30, 1999.

$4,000,000 of the appropriation in each fiscal year shall not be included in the base for fiscal year 2000.

Subd. 7. [SCIENCE-MATHEMATICS GRANT.] For continuation of systemic change in science and mathematics education programs:

$1,332,000 . . . . . 1998

$1,332,000 . . . . . 1999

$40,000 of the appropriation in 1998 and $40,000 in 1999 is for the south central Minnesota talented youth program.

Any balance in the first year does not cancel but is available in the second year.

Subd. 8. [MINNESOTA HOMEWORK HELPLINE.] For the southeast service cooperative to operate the Minnesota homework helpline:

$175,000 . . . . . 1998

$175,000 . . . . . 1999

Subd. 9. [WHITE BEAR LAKE EXTENDED YEAR, WEEK OR DAY PILOT PROGRAM.] For independent school district No. 624, White Bear Lake, for an additional year-round school/extended week or day pilot program grant under section 25:

$100,000 . . . . . 1998

The appropriation is available until June 30, 1999.

Subd. 10. [GIFTED AND TALENTED GRANTS.] For grants for gifted and talented programs according to section 26:

$2,500,000 . . . . . 1998

$2,500,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 11. [METRO HOMEWORK HOTLINE.] For Metro Hotline for Homework programs to assist students with homework by telephone or other interactive technology:

$125,000 . . . . . 1998

$125,000 . . . . . 1999

Subd. 12. [URBAN EDUCATOR PROGRAM.] For a collaborative urban educator program:

$200,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Sec. 29. [REPEALERS.]

Minnesota Statutes 1996, section 124A.22, subdivision 2a; and Laws 1994, chapter 647, article 7, section 18, are repealed.

Sec. 30. [EFFECTIVE DATES.]

(a) Section 15 is effective for revenue for fiscal year 1999.

Section 1. Minnesota Statutes 1996, section 120.101, is amended by adding a subdivision to read:

Subd. 5d. [WITHDRAWAL FROM SCHOOL.] Notwithstanding subdivision 5 of this section, a student between the ages of 16 and 18 years old who seeks to withdraw from school is not subject to compulsory instruction requirements under this section if:

(1) school personnel meet with the student and the student's parent or guardian to discuss the educational opportunities available to the student at the school site and other available educational opportunities, including at least alternative secondary programs, area learning centers, charter schools, post-secondary enrollment options, and enrollment in another district; and

(2) the student and the student's parent or guardian elect not to participate in an educational course or program at the school site or elsewhere and instead have the student withdraw from school, the student and the student's parent or guardian sign a statement confirming the student's election to withdraw from school.

Sec. 2. [120.1015] [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.]

A school board's annual school calendar shall include at least three additional days of student instruction beyond the number of days of student instruction the board formally adopted as its school calendar at the beginning of the 1996-1997 school year. Notwithstanding any law to the contrary, a school district may adjust its 1997-98 school calendar to accommodate this section.

Sec. 3. Minnesota Statutes 1996, section 121.602, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM OUTCOMES.] The outcomes of the educational effectiveness program are to:

(1) increase meaningful parental involvement in site-based decision making;

(2) improve results-oriented instructional educational processes;

(3) create flexible school-based organizational structures; and

(4) improve student achievement.

Sec. 4. Minnesota Statutes 1996, section 121.602, subdivision 2, is amended to read:

Subd. 2. [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] The commissioner of children, families, and learning shall develop and maintain a program of educational effectiveness and results-oriented instruction education. The commissioner may appoint an advisory task force to assist the department of children, families, and learning in developing an implementation program for providing staff development to school district staff in educational effectiveness. The program shall be based on established principles of instructional design and the essential elements of effective instruction as determined by educational research. The program shall take into account the diverse needs of the school districts due to such factors as district size and location.

Sec. 5. Minnesota Statutes 1996, section 121.602, subdivision 4, is amended to read:

building level decision-making teams. The staff development shall include clarification of individual school missions, goals, expectations, enhancement of collaborative planning and collegial relationships among the building staff, improvement of curriculum, assessment, instructional and organizational skills, improvement of financial and management skills, and planning of other staff development programs.

Sec. 6. Minnesota Statutes 1996, section 123.34, is amended by adding a subdivision to read:

Subd. 9b. [SUPERINTENDENT PERFORMANCE CONTRACTS.] The board of a district with more than 5,000 full-time enrolled students may enter into an employment contract with a superintendent containing performance results the superintendent must achieve. The performance results shall include student achievement, and may also include curriculum improvement, quality of instruction, student attendance, family involvement, community involvement, school district management, or any other performance result desired by the board.

Notwithstanding section 43A.17, subdivision 9, if the superintendent achieves the required performance results, the board may fix the superintendent's compensation exceeding 95 percent of the salary of the governor as set under section 15A.082. The board must establish a review and evaluation procedure to measure achievement of the performance results.

Sec. 7. [124.305] [ENHANCED STUDENT PERFORMANCE THROUGH A LENGTHENED SCHOOL YEAR.]

Subdivision 1. [ESTABLISHMENT.] A funding source is established to provide additional instructional time to students who may be at risk of underperforming on the state's basic skills test. School districts must use funding to extend the school year by three weeks. School districts may extend the school year through extended week, extended day, or extended hour school programs. To the extent possible, school sites must target programming to students most at risk of underperforming on the state's graduation standards.

Subd. 2. [PUPIL ATTENDANCE.] A school district shall require students to attend an extended school year program if the student:

(1) failed a Minnesota basic skills test; or

(2) is at risk of failing a Minnesota basic skills test as determined by educators at the school site.

A school site may make the extended school year program available to other students.

Subd. 3. [BASIC HOURS OF INSTRUCTION.] "Basic hours of instruction" means the number of hours of instruction that a school district provides for that grade level in the school district during the second previous school year.

Subd. 4. [REVENUE.] Extended instructional time revenue equals the product of:

(1) $187; and

(2) the number of pupils eligible for free lunch as determined by the count for the previous fall.

Extended instructional time revenue is provided through state aid.

Subd. 5. [RESERVE.] If a site determines that the revenue available under subdivision 4 is insufficient to fund the required offerings for students who failed or are at risk of failing a Minnesota basic skills test, the site may apply to the commissioner for additional extended instructional time state aid. The commissioner shall establish criteria for allocating additional extended instructional time state aid.

Subd. 7. [REVENUE USES.] A school site must use extended school year revenue to fund costs associated with providing programs designed to help students reach the levels of proficiency required by the state graduation rule. The programs may be offered through a longer school day or week during the regular school year or through a summer school program.

Subd. 8. [GIFTED AND TALENTED REVENUE USES.] A site that determines that its students are meeting graduation requirements may use any remaining extended school year revenue to provide gifted and talented programming during the extended school year.

Subd. 9. [ADDITIONAL ELIGIBILITY.] A student eligible for extended school year revenue under this section is also eligible to participate in the graduation incentives program under section 126.22.

Sec. 8. Minnesota Statutes 1996, section 124.646, subdivision 1, is amended to read:

Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school year, school districts participating in the national school lunch program shall be paid by the state in the amount of 6.5 7.5 cents for each full paid, reduced, and free student lunch served to students in the district.

Sec. 9. [124.6475] [SUMMER FOOD SERVICE REPLACEMENT AID.]

States funds are available to compensate department-approved summer food program sponsors for reduced federal operating reimbursement rates under Public Law Number 104-193, the federal summer food service program. A sponsor is eligible for summer food service replacement aid equal to the sum of the following amounts:

(1) for breakfast service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of breakfasts the district served during the current school year;

(2) for lunch or supper service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of lunches and suppers the district served during the current school year; and

(3) for supplement service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of supplement meals the district served during the current school year.

Sec. 10. Minnesota Statutes 1996, section 124C.46, subdivision 2, is amended to read:

Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide programs for secondary pupils and adults, giving priority to serving persons between 16 and 21 years of age. Secondary pupils to be served are those who are chemically dependent, not likely to graduate from high school, need assistance in vocational and basic skills, can benefit from employment experiences, and need assistance in transition from school to employment. Adults to be served are dislocated homemakers and workers and others who need basic educational and social services. In addition to offering programs, the center shall coordinate the use of other available educational services, social services, and post-secondary institutions in the community. The A center may also provide programs, including work-based, service-learning, and applied learning opportunities developed in collaboration with a local education and employment transitions partnership, and services for elementary and secondary pupils who are not attending the center to assist them in completing high being successful in school. Pupils eligible to be served are those age five to adults 21 and older who qualify under the graduation incentives program in section 126.22, subdivision 2.

Sec. 11. Minnesota Statutes 1996, section 126.22, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE PUPILS.] The following pupils are eligible to participate in the education options graduation incentives program:

(a) any pupil under the age of 21 who:

(2) is at least one year behind in satisfactorily completing coursework or obtaining credits for graduation; or

(3) is pregnant or is a parent; or

(4) has been assessed as chemically dependent; or

(5) has been excluded or expelled according to sections 127.26 to 127.39; or

(6) has been referred by a school district for enrollment in an eligible program or a program pursuant to section 126.23; or

(7) is a victim of physical or sexual abuse; or

(8) has experienced mental health problems; or

(9) has experienced homelessness sometime within six months before requesting a transfer to an eligible program; or

(10) speaks English as a second language or has limited English proficiency; or

(11) is eligible to receive extended school year revenue under section 124.305; or

(12) has withdrawn from school or has been chronically truant; or

(b) any person who is at least 21 years of age and who:

(1) has received fewer than 14 years of public or nonpublic education, beginning at age 5;

(2) has not completed the requirements for a high school diploma; and

(3) at the time of application, (i) is eligible for reemployment insurance benefits or has exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support services, as defined in section 268.0111, subdivision 5, or (iii) is eligible for services under the displaced homemaker program, state wage-subsidy program, or any programs under the federal Jobs Training Partnership Act or its successor.

Sec. 12. [TARGETED BREAKFAST GRANTS.]

Subdivision 1. [ESTABLISHMENT.] A grant program for fiscal year 1998 is established to further explore the policy of providing nutritious breakfasts to public elementary school children, without regard to whether the children are eligible to receive free or reduced price meals, so that they can learn effectively.

Subd. 2. [ELIGIBILITY.] An applicant for a grant must be an elementary school that participates in the federal school breakfast and lunch programs. For a school to receive a grant, at least 33 percent of the lunches the school served to children during the preceding school year must have been provided free or at a reduced price.

Subd. 3. [APPLICATION PROCESS.] To obtain a grant to receive reimbursement for providing breakfasts to all children, whether or not the children are from low-income families and eligible to receive free or reduced price meals, a public elementary school must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner prescribes. The application must describe how the applicant will encourage all children in the school to participate in the breakfast program. The applicant also must demonstrate to the commissioner that the applicant will receive a $1 local match of funding or in-kind contributions for every $3 of state funding the applicant receives. The commissioner may require additional information from the applicant.

Sec. 13. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [ABATEMENT AID.] For abatement aid according to Minnesota Statutes, section 124.214:

$13,661,000 . . . . . 1998

$13,612,000 . . . . . 1999

The 1998 appropriation includes $684,000 for 1997 and $12,977,000 for 1998.

The 1999 appropriation includes $1,441,000 for 1998 and $12,171,000 for 1999.

Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil education aid according to Minnesota Statutes, sections 123.79 and 123.931 to 123.947:

$9,430,000 . . . . . 1998

$9,688,000 . . . . . 1999

The 1998 appropriation includes $900,000 for 1997 and $8,530,000 for 1998.

The 1999 appropriation includes $947,000 for 1998 and $8,741,000 for 1999.

Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For school lunch aid according to Minnesota Statutes, section 124.646, and Code of Federal Regulations, title 7, section 210.17, and for food storage and transportation costs for United States Department of Agriculture donated commodities; and for a temporary transfer to the commodity processing revolving fund to provide cash flow to permit schools and other recipients of donated commodities to take advantage of volume processing rates and for school milk aid according to Minnesota Statutes, section 124.648:

$8,754,000 . . . . . 1998

$8,754,000 . . . . . 1999

(b) Any unexpended balance remaining from the appropriations in this subdivision shall be prorated among participating schools based on the number of free, reduced, and fully paid federally reimbursable student lunches served during that school year.

(c) If the appropriation amount attributable to either year is insufficient, the rate of payment for each fully paid student lunch shall be reduced and the aid for that year shall be prorated among participating schools so as not to exceed the total authorized appropriation for that year.

(d) Any temporary transfer processed in accordance with this subdivision to the commodity processing fund will be returned by June 30 in each year so that school lunch aid and food storage costs can be fully paid as scheduled.

(e) Not more than $800,000 of the amount appropriated each year may be used for school milk aid.

(f) The commissioner may reduce other future aid and grant payments to school districts and other organizations for the costs of processing and storage of commodities used by the school district or organization.

Subd. 5. [SUMMER FOOD SERVICE.] For summer food service:

$15,000 . . . . . 1998

Subd. 6. [SCHOOL BREAKFAST.] To operate the school breakfast program according to Minnesota Statutes, sections 124.6469 and 124.6472:

$456,000 . . . . . 1998

$456,000 . . . . . 1999

If the appropriation amount attributable to either year is insufficient, the rate of payment for each fully paid student breakfast shall be reduced and the aid for that year shall be prorated among participating schools so as not to exceed the total authorized appropriation for that year. Any unexpected balance remaining shall be used to subsidize the payments made for school lunch aid per Minnesota Statutes, section 124.646.

Up to one percent of the program funding can be used by the department of children, families, and learning for technical and administrative assistance.

Subd. 7. [PSEO REPLACEMENT AID.] For PSEO replacement aid:

$12,000 . . . . . 1998

The 1998 appropriation includes $12,000 for 1997 and $-0- for 1998.

Subd. 8. [EXTENDED INSTRUCTIONAL TIME REVENUE.] For the purpose of funding the extended hours program under Minnesota Statutes, section 124.305:

$25,800,000 . . . . . 1998

$25,800,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year. Of each year's appropriation, up to $2,000,000 in fiscal year 1998 and up to $1,000,000 in fiscal year 1999 is available for allocation under Minnesota Statutes, section 124.305, subdivision 5.

Subd. 9. [SCHOOL BREAKFAST OUTREACH.] To initiate school breakfast programs under Minnesota Statutes, section 124.6469, at school sites not currently providing a school breakfast program or at schools that initiated a school breakfast program during the 1996-1997 school year:

$15,000 . . . . . 1998

$15,000 . . . . . 1999

Subd. 10. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer food service replacement aid under Minnesota Statutes, section 124.6475:

$150,000 . . . . . 1998

$150,000 . . . . . 1999

Subd. 11. [TARGETED BREAKFAST GRANTS.] For targeted breakfast grants under section 12:

$500,000 . . . . . 1998

Subd. 12. [FAMILY CONNECTIONS AID.] For family connections aid according to Minnesota Statutes, section 124.276:

$125,000 . . . . . 1998

$125,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Sec. 14. [REPEALER.]

Minnesota Statutes 1996, section 124.177, is repealed.

Section 1. Minnesota Statutes 1996, section 120.062, subdivision 7, is amended to read:

Subd. 7. [BASIS FOR DECISIONS.] The school board must adopt, by resolution, specific standards for acceptance accepting and rejection of rejecting applications. Standards may include the capacity of a program, class, grade level, or school building or disciplinary proceeding during the current or two preceding calendar years if the proceeding resulted in expelling a secondary student who willfully engaged in dangerous or violent behavior or the secondary school student was convicted of or adjudicated for committing a felony. Standards may not include previous academic achievement, athletic or other extracurricular ability, disabling conditions, or proficiency in the English language, or previous disciplinary proceedings.

Sec. 2. Minnesota Statutes 1996, section 120.101, subdivision 5c, is amended to read:

Subd. 5c. [EDUCATION RECORDS.] (a) A school district from which a student is transferring must transmit the student's educational records, within ten business days of a request, to the school district in which the student is enrolling. School districts must make reasonable efforts to determine the school district in which a transferring student is next enrolling in order to comply with this subdivision.

(b) A school district that transmits a student's educational records to another school district or other educational entity to which the student is transferring must include in the transmitted records information about disciplinary action taken as a result of any incident in which the student possessed or used a dangerous weapon.

Sec. 3. Minnesota Statutes 1996, section 120.17, subdivision 3a, is amended to read:

Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district shall ensure that:

(2) children with a disability under age five and their families are provided special instruction and services appropriate to the child's level of functioning and needs;

(3) children with a disability and their parents or guardians are guaranteed procedural safeguards and the right to participate in decisions involving identification, assessment including assistive technology assessment, and educational placement of children with a disability;

(4) to the maximum extent appropriate, children with a disability, including those in public or private institutions or other care facilities, are educated with children who are not disabled, and that special classes, separate schooling, or other removal of children with a disability from the regular educational environment occurs only when and to the extent that the nature or severity of the disability is such that education in regular classes with the use of supplementary services cannot be achieved satisfactorily;

(5) in accordance with recognized professional standards, testing and evaluation materials, and procedures utilized for the purposes of classification and placement of children with a disability are selected and administered so as not to be racially or culturally discriminatory; and

(6) the rights of the child are protected when the parents or guardians are not known or not available, or the child is a ward of the state.

Sec. 4. Minnesota Statutes 1996, section 123.3514, subdivision 4c, is amended to read:

Subd. 4c. [LIMIT ON PARTICIPATION.] A pupil who first enrolls in grade 11 may not enroll in post-secondary courses under this section for secondary credit for more than the equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in post-secondary courses under this section for secondary credit for more than the equivalent of one academic year. If a pupil in grade 11 or 12 first enrolls in a post-secondary course for secondary credit during the school year, the time of participation shall be reduced proportionately. If a pupil is in a learning year or other year-round program and begins each grade in the summer session, summer sessions shall not be counted against the time of participation. A pupil who has graduated from high school cannot participate in a program under this section. A pupil who has completed course requirements for graduation but who has not received a diploma may participate in the program under this section.

Sec. 5. Minnesota Statutes 1996, section 123.3514, subdivision 8, is amended to read:

Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil enrolled in a course for secondary credit may apply to the pupil's district of residence for reimbursement for transporting the pupil between the secondary school in which the pupil is enrolled or the pupil's home and the post-secondary institution that the pupil attends. The commissioner shall establish guidelines for providing state aid to Districts to shall reimburse the parent or guardian for the necessary transportation costs, which shall be based on financial need when the family's or guardian's income is at or below the poverty level, as determined by the federal government. The reimbursement may not exceed shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for more than 250 miles per week. However, if the nearest post-secondary institution is more than 25 miles from the pupil's resident secondary school, the weekly reimbursement may not exceed the reimbursement rate per mile times the actual distance between the secondary school or the pupil's home and the nearest post-secondary institution times ten. The state shall pay aid to the district according to the guidelines established under this subdivision. Chapter 14 does not apply to the guidelines.

Sec. 6. Minnesota Statutes 1996, section 124C.498, subdivision 2, is amended to read:

Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.] To the extent money is available, the commissioner of children, families, and learning may approve projects from applications submitted under this section. The grant money must be used only to design, acquire, construct, remodel, improve, furnish, or equip the building or site of a magnet school facility according to contracts entered into within 15 24 months after the date on which a grant is awarded.

Sec. 7. Minnesota Statutes 1996, section 125.12, subdivision 14, is amended to read:

shall be available to each individual teacher upon written request. The teacher shall have the right to reproduce any of the contents of the files at the teacher's expense and to submit for inclusion in the file written information in response to any material contained therein.

A school district may destroy the files as provided by law and shall expunge from the teacher's file any material found to be false or substantially inaccurate through the grievance procedure required pursuant to section 179A.20, subdivision 4; provided, the grievance procedure promulgated by the director of the bureau of mediation services, pursuant to section 179A.04, subdivision 3, clause (h), shall apply to those principals and supervisory employees not included in an appropriate unit as defined in section 179A.03. Expungement proceedings shall be commenced within the time period provided in the collective bargaining agreement for the commencement of a grievance. If no time period is provided in the bargaining agreement, the expungement proceedings shall commence within 15 days after the teacher has knowledge of the inclusion in the teacher's file of the material the teacher seeks to have expunged.

Sec. 8. Minnesota Statutes 1996, section 126.77, subdivision 1, is amended to read:

Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The commissioner of children, families, and learning, in consultation with the commissioners of health and human services, state minority councils, battered women's programs, sexual assault centers, representatives of religious communities, and the assistant commissioner of the office of drug policy and violence prevention, shall assist districts on request in developing or implementing a violence prevention program for students in kindergarten to grade 12 that can be integrated into existing curriculum. The purpose of the program is to help students learn how to resolve conflicts within their families and communities in nonviolent, effective ways.

(b) Each district is encouraged to integrate into its existing curriculum a program for violence prevention that includes at least:

(1) a comprehensive, accurate, and age appropriate curriculum on violence prevention, nonviolent conflict resolution, and sexual, racial, and cultural harassment, and student hazing that promotes equality, respect, understanding, effective communication, individual responsibility, thoughtful decision making, positive conflict resolution, useful coping skills, critical thinking, listening and watching skills, and personal safety;

(2) planning materials, guidelines, and other accurate information on preventing physical and emotional violence, identifying and reducing the incidence of sexual, racial, and cultural harassment, and reducing child abuse and neglect;

(3) a special parent education component of early childhood family education programs to prevent child abuse and neglect and to promote positive parenting skills, giving priority to services and outreach programs for at-risk families;

(4) involvement of parents and other community members, including the clergy, business representatives, civic leaders, local elected officials, law enforcement officials, and the county attorney;

(5) collaboration with local community services, agencies, and organizations that assist in violence intervention or prevention, including family-based services, crisis services, life management skills services, case coordination services, mental health services, and early intervention services;

(6) collaboration among districts and SCs;

(7) targeting early adolescents for prevention efforts, especially early adolescents whose personal circumstances may lead to violent or harassing behavior;

(8) opportunities for teachers to receive in-service training or attend other programs on strategies or curriculum designed to assist students in intervening in or preventing violence in school and at home; and

(9) administrative policies that reflect, and a staff that models, nonviolent behaviors that do not display or condone sexual, racial, or cultural harassment or student hazing.

Sec. 9. [126.801] [SCHOOL USE POLICY FOR COMPUTERS.]

Subdivision 1. [MODEL POLICY.] The commissioner of children, families, and learning shall develop and distribute a model policy for school districts concerning appropriate usage of the Internet with recommended protocols for staff and students to follow in order to maximize the educational benefits of on-line services.

Subd. 2. [PROTECTIVE SOFTWARE.] The commissioner of children, families, and learning shall research, evaluate, and make recommendations to school districts on computer software products that are proven to filter, block, or otherwise prevent the use of school computers for the transmission of any comment, request, suggestion, proposal, image, or other communication which is:

(1) obscene, indecent, or sexually explicit; or

(2) intended to promote or incite violence against other living persons.

Subd. 3. [SCHOOL DISTRICTS.] Within one year of the commissioner completing the requirements of subdivisions 1 and 2, each school district must adopt a policy on Internet usage.

Sec. 10. Minnesota Statutes 1996, section 127.27, subdivision 10, is amended to read:

Subd. 10. [SUSPENSION.] "Suspension" means an action taken by the school administration, under rules promulgated by the school board, prohibiting a pupil from attending school for a period of no more than ten school days. If a suspension is longer than five days, the suspending administrator must provide the superintendent with a reason for the longer suspension. This definition does not apply to dismissal from school for one school day or less. Each suspension action shall include a readmission plan. The readmission plan shall include, where appropriate, a provision for implementing alternative programs to be implemented educational services upon readmission. Suspension may not be consecutively imposed The school administration may not impose consecutive suspensions against the same pupil for the same course of conduct, or incident of misconduct, except where the pupil will create an immediate and substantial danger to self or to surrounding persons or property, or where the district is in the process of initiating an expulsion, in which case the school administration may extend the suspension up to 15 days. In no event shall suspension exceed 15 school days, provided that an In the case of a pupil with a disability, a suspension may not exceed ten school days. The school administration shall implement alternative program shall be implemented educational services to the extent that suspension exceeds five days. A separate administrative conference is required for each period of suspension.

Sec. 11. Minnesota Statutes 1996, section 127.282, is amended to read:

127.282 [EXPULSION FOR POSSESSION OF FIREARM.]

(a) Notwithstanding the time limitation in section 127.27, subdivision 5, a school board must expel for a period of at least one calendar year a pupil who is determined to have brought a firearm to school except the board may modify this expulsion requirement for a pupil on a case-by-case basis. For the purposes of this section, firearm is as defined in United States Code, title 18, section 921.

(b) Notwithstanding chapter 13, a student's expulsion or withdrawal or transfer from a school after an expulsion action is initiated against the student for a weapons violation under paragraph (a) may be disclosed by the school district initiating the expulsion proceeding. Unless the information is otherwise public, the disclosure may be made only to another school district in connection with the possible admission of the student to the other district.

Sec. 12. [127.4105] [INFORMATION ON TEACHER LIABILITY.]

Sec. 13. [127.465] [HAZING POLICY.]

Subdivision 1. [DEFINITIONS.] (a) "Hazing" means committing an act against a student, or coercing a student into committing an act, that creates a substantial risk of harm to a person in order for the student to be initiated into or affiliated with a student organization.

(b) "Student organization" means a group, club, or organization having students as its primary members or participants.

Subd. 2. [MODEL POLICY.] The commissioner of children, families, and learning shall maintain and make available to school boards a model policy on student hazing that addresses the requirements of subdivision 3.

Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall adopt a written policy governing student hazing. The policy must apply to student behavior that occurs on or off school property and during and after school hours. The policy must include reporting procedures and disciplinary consequences for violating the policy. Disciplinary consequences must be sufficiently severe to deter violations and appropriately discipline prohibited behavior. Disciplinary consequences must conform with sections 127.27 to 127.39. Each school must include the policy in the student handbook on school policies.

Sec. 14. Minnesota Statutes 1996, section 128C.02, subdivision 2, is amended to read:

Subd. 2. [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The board of the league shall adopt a policy, rules, penalties, and recommendations addressing sexual harassment and sexual violence and hazing toward and by participants in league activities.

Sec. 15. [CONSULTATION.]

The commissioner of children, families, and learning shall consult with the Minnesota school board association in preparing the model hazing policy under section 127.465.

Sec. 16. [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR CALENDARS.]

Subdivision 1. [WORKING GROUP RECOMMENDATIONS.] The commissioner of children, families, and learning shall convene a working group to consider alternative school year calendars, including at least 45-15 plans, four-quarter plans, quinmester plans, extended learning year plans, flexible all-year plans, and four-day week plans, and recommend to the legislature those alternative school year calendars that best allow school districts to meet the educational needs of their students. The working group must include one representative from each of the following organizations: the Minnesota school boards association; the Minnesota education association; the Minnesota federation of teachers; the Minnesota association of school administrators; the Minnesota association of secondary school principals; the Minnesota elementary school principals' association; the Minnesota association for pupil transportation; the Minnesota association for supervision and curriculum; the Minnesota congress of parents, teachers, and students; the Minnesota state high school league; the Minnesota business partnership; and the Minnesota restaurant, hotel, and resort associations. By February 1, 1998, the commissioner shall submit the group's recommendations concerning the alternative school year calendars that best allow school districts to meet the educational needs of their students to the chairs of the education committees of the legislature.

Subd. 2. [ISSUE TO RESOLVE.] In recommending to the legislature the alternative school year calendars that best allow school districts to meet the educational needs of their students, the working group must at least consider:

(1) how buildings and other facilities can be optimally used during an entire year;

(2) what the optimal learning year schedule is of elementary and secondary disabled students and staff in schools and residential facilities;

(3) how a district divides its students among its facilities to accommodate an alternative school year calendar;

(5) what parent involvement is required in establishing an alternative school year calendar;

(6) how school staff is assigned in a district with fewer than all facilities adopting an alternative school year calendar;

(7) how teachers' contracting rights are affected by an alternative school year calendar;

(8) what educational standards and requirements apply to a district operating an alternative school year calendar;

(9) what adjustments of attendance and apportionments of state aid are required; and

(10) how concerns of the Minnesota restaurant, hotel, and resort associations can be addressed in an alternative school year calendar.

Sec. 17. [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.]

Subdivision 1. [POLICY.] The legislature acknowledges the importance of teaching students in a regular classroom setting where possible. Students in an educational setting should expect to behave in a manner that is appropriate for learning. When students misbehave, school discipline policies should penalize students' misbehavior, with the ultimate goal of returning students to their regular classrooms. Schools should involve parents in collaborative efforts to alter students' classroom misbehavior. Schools and parents should find ways to ensure that students' misbehavior does not become chronic, necessitating long-term intervention and the need for special services.

Subd. 2. [ESTABLISHMENT.] A grant program for fiscal year 1998 is established to develop, implement, and evaluate school discipline policies, consistent with the Pupil Fair Dismissal Act under Minnesota Statutes, sections 127.26 to 127.39 and sections 127.40 to 127.48. Discipline policies, developed under this section, should be designed to enable students to successfully return to the regular classroom setting after being disciplined for misbehavior. Discipline policies should focus on early intervention strategies that limit the need to provide regular education students with additional special programs or services.

Subd. 3. [ELIGIBILITY.] An applicant for a grant must be a school site, a school district, a charter school, or a provider of an alternative education program. To be eligible for a grant, the grant applicant must meet all of the following criteria:

(1) develop a plan to establish a school site mediation board under Minnesota Statutes, sections 127.411 to 127.42, to mediate issues relating to district or school site codes of conduct that apply to students;

(2) include in the code of conduct a plan to remove from the regular classroom setting those students who violate the code;

(3) provide students who violate the code with an alternative education setting within the school or program site; and

(4) make the alternative education setting a constructive experience by using instructional materials tied to educational standards, placing students in an alternative setting outside the normal school day, involving parents in effecting discipline, or developing intervention techniques such as time outs, among other alternatives.

Subd. 4. [APPLICATION PROCESS.] To obtain a grant to implement constructive school discipline policies, a grant applicant must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner establishes. The application must describe how the applicant will meet the eligibility criteria under subdivision 3. The commissioner may require the applicant to provide additional information.

Subd. 5. [GRANT AWARDS.] The commissioner may award up to five grants of up to $50,000. Grant recipients must be located throughout the state and have diverse experiences with student disciplinary matters. The amount of the grant shall be based on the number of students the grant recipient anticipates will be disciplined and on the alternative education settings the grant recipient proposes to use. Grant recipients must use the grant proceeds to accomplish the purposes of this section.

and the school faculty. The evaluation must also address the financial impact of the program on the district and the school site. Upon implementing a student code of conduct consistent with this section, the grant recipient must cooperate in evaluating the impact of code policies. As a part of the evaluation process, the grant recipient must document student and parent response to code policies over at least a three-year period. The commissioner shall compile for the education committees of the legislature a progress report by February 1, 1999, and a final report by February 1, 2001, on the effectiveness and impact of discipline policies.

Sec. 18. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT PILOT TRAINING PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] The school improvement training and performance pilot program is established to accelerate school quality and performance improvement initiatives that lead to improved student achievement in both high-performing and under-performing schools.

Subd. 2. [ELIGIBILITY.] A school district is eligible to apply for a grant to establish one or more school improvement training and performance sites. The application and selection process must be developed and implemented by the Minnesota academic excellence foundation and reviewed by the commissioner of children, families, and learning. Priority for participation must be given to school districts in which:

(1) the district has received an educational performance improvement grant under Laws 1994, chapter 647, article 7, section 18, and has demonstrated improvement in student learning as a result of the grant;

(2) one school or the district has completed training in a statewide quality improvement initiative;

(3) the district has demonstrated accountability by developing and communicating an agenda to increase student learning;

(4) there are significant numbers of students with critical learning needs and gaps in learning between these students and other groups of students; and

(5) site-based management is being implemented.

Subd. 3. [PROGRAM SERVICES.] The Minnesota academic excellence foundation must provide training and technical assistance to selected districts to:

(1) create plans for the district-wide deployment of quality improvement training to all staff;

(2) create a means for identifying and providing remedial, interventive, or preventive assistance to schools in the district, based upon the schools' performances against state and local goals and standards;

(3) accelerate school performance and student learning in high-performing and under-performing schools; and

(4) train quality program trainers at each site.

Subd. 4. [SCHOOL DISTRICT PARTICIPANTS.] Selected districts must enter into a contract to achieve increases in student learning, staff development and performance, and administrative support services to schools within the district. Additionally, each selected district must:

(1) plan and deploy quality improvement and other training to all staff in the district;

(2) establish quality and performance goals and measure results and report the achieved results at the selected school sites; and

(3) assist in duplicating successful programs in other districts by providing training to other school districts for a period of up to four years, in collaboration with the Minnesota academic excellence foundation.

Sec. 19. [GRANT PROGRAM FOR VIOLENCE PREVENTION THROUGH THE DEVELOPMENT OF PLAYS, WORKSHOPS, AND EDUCATIONAL RESOURCES.]

Subdivision 1. [GRANT PROGRAM.] The commissioner shall administer a grant program to fund statewide programs to create and develop theatrical plays, workshops, and educational resources based on peer education models that promote increased awareness and prevention of sexual abuse, interpersonal violence, emotional violence, and sexual harassment. Programs eligible for grants must use a combination of theater professionals and prevention specialists in the delivery of the service and use a peer education model that uses researched and proven content in training youth to perform in the plays and workshops. Programs must provide the source material, the training program, develop the educational materials, and provide technical assistance.

Subd. 2. [GRANT PROCEDURE.] Programs may apply for a grant by submitting an application to the commissioner. The commissioner may distribute grants to one or more programs meeting the criteria described in subdivision 1.

Sec. 20. [CLASS SIZE PROJECT.]

A class size project is established in independent school district No. 12, Centennial. The purpose of this project is to establish that significantly lower class size and instructor-to-learner ratios in a suburban community will result in measurable achievements for students, staff, and parents.

Sec. 21. [INSTRUCTIONAL DAY CLARIFICATION.]

(a) This section applies to any school district employee who was scheduled to work on January 16, 1997, did not work on that day, and did not receive compensation for that day.

(b) Notwithstanding any law to the contrary, a school district must either: (1) allow any school district employee under paragraph (a) the opportunity to work on another day that the school district designates and must compensate the employee working on the designated day at the employee's normal rate of pay; or (2) compensate any school district employee under paragraph (a) for that day at the employee's normal rate of pay.

Sec. 22. [BEFORE LABOR DAY SCHOOL START.]

Subdivision 1. [LAKE PARK; AUDUBON.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, for the 1997-1998 school year, independent school district Nos. 24, Lake Park, and 21, Audubon, may begin the elementary and secondary school year on August 25, 1997, in order for independent school district No. 24, Lake Park, to accommodate its building renovation schedule at the end of that school year.

Subd. 2. [NEW PRAGUE.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, independent school district No. 721, New Prague, may begin the 1997-1998 school year prior to Labor Day only by the number of days necessary to accommodate the district building and remodeling project.

Subd. 3. [WAYZATA.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, independent school district No. 284, Wayzata, may begin the 1997-1998 school year prior to Labor Day only by the number of days necessary to accommodate the transition into the new senior high school building.

Subd. 4. [ISLE.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, for the 1997-1998 school year, independent school district No. 473, Isle, may begin the elementary and secondary school year on August 18, 1997, in order for the school district to complete its conversion of an existing elementary school to a K-12 facility before the beginning of the 1998-1999 school year.

Sec. 23. [FUND TRANSFERS.]

Subdivision 1. [HILL CITY.] (a) Notwithstanding Minnesota Statutes, section 121.912 or 121.9121, before June 30, 1997, independent school district No. 2, Hill City, may permanently transfer up to $55,000 from its general fund to its debt redemption fund for the purpose of repaying the principal and any interest owed on its outstanding debt service loans. Any amount transferred but not used to repay the debt service loans must be applied to the district's outstanding capital loan balance.

(b) The commissioner of children, families, and learning shall recompute the general education fund balance reduction for fiscal year 1997 for independent school district No. 2, Hill City. For purposes of this reduction, the commissioner shall lower the district's net unappropriated operating balance as of June 30, 1996, by the amount that is transferred from the general fund to the debt redemption fund under paragraph (a).

General education aid for fiscal year 1997 for independent school district No. 2, Hill City, must be adjusted according to this subdivision.

The general education levy attributable to fiscal year 1997 for independent school district No. 2, Hill City, must be adjusted according to this subdivision.

Subd. 2. [FERGUS FALLS.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on June 30, 1997, independent school district No. 544, Fergus Falls, may permanently transfer up to $202,000 from its debt redemption fund to its building construction fund without making a levy reduction.

Subd. 3. [FOSSTON.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on or before June 30, 1997, independent school district No. 601, Fosston, may permanently transfer up to $105,000 from the debt redemption fund to its building construction fund without making a levy reduction.

Subd. 4. [MEDFORD.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, independent school district No. 763, Medford, may permanently transfer up to a total of $200,000 by June 30, 1998, from reserve accounts in the general fund to the unreserved general fund. The transfers may be made from either the bus purchase account or from the reserve for operating capital account. Transfers from the bus purchase account may be made without making a levy reduction.

Subd. 5. [BELGRADE-BROOTEN-ELROSA.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1997, independent school district No. 2364, Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 from the bus purchase account to its general fund.

Sec. 24. [TEACHER CONTRACTS; ARBITRATION.]

Notwithstanding any law to the contrary, if the school board and the exclusive representative of teachers employed by independent school district No. 821, Menagha, have not agreed on an employment contract by July 1, 1997, and have not agreed to submit the matter to interest arbitration, the parties must submit the matter to the commissioner of mediation services. Each party must submit to the commissioner of mediation services its final position on all issues. The arbitrator must consider the financial condition of the school district and select the total package of one side or the other in its entirety.

Sec. 25. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For the school improvement pilot training program:

Up to $30,000 may be used by the Minnesota academic excellence foundation to deliver training, coaching, technical assistance, and other services to selected districts. Contracts shall be awarded to at least six districts, two each to rural, suburban, and urban school districts. Any portion of the appropriation not expended in the first year shall not cancel but shall be available until June 30, 1999.

Subd. 3. [PREVENTING VIOLENCE THROUGH PLAYS AND WORKSHOPS.] For administering the grant program for preventing violence through developing plays, workshops, and educational resources:

$75,000 . . . . . 1998

$75,000 . . . . . 1999

Subd. 4. [CLASS SIZE PROJECT.] For a grant to independent school district No. 12, Centennial, for the class size project:

$180,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 5. [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the model school for chronic truants located in the law enforcement center in Mankato:

$40,000 . . . . . 1998

$40,000 . . . . . 1999

Subd. 6. [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant to independent school district No. 283, St. Louis Park, for the Aquila community together project:

$30,000 . . . . . 1998

$30,000 . . . . . 1999

This appropriation must be matched from nonstate sources. This appropriation is available until June 30, 1999.

Subd. 7. [MINNESOTA INTERNATIONAL CENTER.] For the Minnesota International Center to encourage and foster contacts between Minnesota school children, their teachers, and people from other nations through international classroom connection:

$40,000 . . . . . 1998

$40,000 . . . . . 1999

Subd. 8. [COMMUNITY HEALTH CENTER.] For independent school district No. 99, Esko, to develop and operate a community health and physical fitness center offering district residents programs in community health and fitness, athletic training services, and physical therapy:

$30,000 . . . . . 1998

This appropriation is contingent upon the school district obtaining a $30,000 in-kind contribution of physical fitness equipment from a private nonprofit source that is made permanently available to the community health and physical fitness center.

Subd. 9. [PROJECT PROTECT.] For a grant to the Grant Hussey Foundation for implementing of Project Protect:

This appropriation is available until June 30, 1999.

Subd. 10. [CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.] For grants to develop, implement, and evaluate school discipline policies:

$250,000 . . . . . 1998

Grant recipients may expend grant proceeds over a three-year period. Of this amount, $13,500 is for performing an evaluation.

Sec. 26. [EFFECTIVE DATES.]

(a) Section 13 is effective January 1, 1998.

(b) Sections 16 and 21 to 23 are effective the day following final enactment.

Section 1. Minnesota Statutes 1996, section 134.155, subdivision 2, is amended to read:

Subd. 2. [GRANTS.] The commissioner of children, families, and learning, in consultation with the multicultural advisory committee established in section 126.82, shall award grants for professional development programs to recruit and educate people of color in the field of library science or information management. Grant applicants must be a public library jurisdiction with a growing minority population working in collaboration with an accredited institution of higher education with a library education program in the state of Minnesota.

Sec. 2. Minnesota Statutes 1996, section 134.155, subdivision 3, is amended to read:

Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient shall recruit people of color to be library staff in public libraries and provide support in linking program participants with jobs in the recipient's library jurisdiction.

(b) A grant recipient shall establish an advisory council composed of representatives of communities of color.

(c) A grant recipient, with the assistance of the advisory council, may recruit high school students, undergraduate students or other persons; support them through the higher education application and admission process; advise them while enrolled; and link them with support resources in the college or university and the community.

(d) A grant recipient shall award stipends to people of color enrolled in a library education program to help cover the costs of tuition, student fees, supplies, and books. Stipend awards must be based upon a student's financial need and students must apply for any additional financial aid for which they are eligible to supplement this program. No more than ten percent of the grant may be used for costs of administering the program. Students must agree to work in the grantee library jurisdiction for at least two years after graduation if the student acquires a master's degree and at least three years after graduation if the student acquires both a bachelor's and a master's degree while participating in the program. If no full-time position is available in the library jurisdiction, the student may fulfill the work requirement in another Minnesota public library.

(e) The commissioner of children, families, and learning shall consider the following criteria in awarding grants:

(1) whether the program is likely to increase the recruitment and retention of persons of color in librarianship;

(2) whether grant recipients will establish or have a mentoring program for persons of color; and

Sec. 3. Minnesota Statutes 1996, section 134.34, subdivision 4, is amended to read:

Subd. 4. A regional library basic system support grant shall not be made to a regional public library system for a participating city or county which decreases the dollar amount provided for support for operating purposes of public library service below the amount provided by it for the second preceding year. This subdivision shall not apply to participating cities or counties where the adjusted net tax capacity of that city or county has decreased, if the dollar amount of the reduction in support is not greater than the dollar amount by which support would be decreased if the reduction in support were made in direct proportion to the decrease in adjusted net tax capacity.

Sec. 4. [LIBRARY PILOT PROJECT.]

Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the contrary and subject to approvals in subdivision 2, a public library may operate as a pilot project jointly with the school library at Nashwauk-Keewatin high school, located in the city of Nashwauk. The public library is established to serve persons within the boundaries of independent school district No. 319, except the city of Keewatin.

Subd. 2. [APPROVALS.] Operation of the public library is contingent upon a resolution approved by the governing bodies of cities, towns, and unorganized townships within the geographical boundaries of independent school district No. 319, except for the city of Keewatin. For the purposes of this subdivision, the Itasca county board is designated as the governing body for the unorganized townships.

Subd. 3. [BOARD; APPOINTMENTS.] The resolution in subdivision 2 shall provide for a library board of five members as follows: two members appointed by the school board of independent school district No. 319, one member appointed by each town board located within independent school district No. 319 boundaries, one member appointed by the council of the city of Nashwauk, and one member appointed by the Itasca county board to represent the unorganized towns within the school district territory.

Subd. 4. [BOARD TERMS; COMPENSATION.] The library board members shall serve for the term of the pilot program. An appointing authority may remove for misconduct or neglect any member it has appointed to the board and may replace that member by appointment. Board members shall receive no compensation for their services but may be reimbursed for actual and necessary travel expenses incurred in the discharge of library board duties and activities.

Subd. 5. [FUNDING.] For taxes payable in 1998 and 1999 only, the library board may levy a tax in an amount up to $25,000 annually on property located within the boundaries of independent school district No. 319, except the city of Keewatin. The Itasca county auditor shall collect the tax and distribute it to the library board. The money may be used for library staff and for the purchase of library materials, including computer software. The levy must also fund the amount necessary to receive bookmobile services from the Arrowhead regional library system. For taxes payable in 1998 and 1999 only, the county may not levy under Minnesota Statutes, section 134.07, for the areas described in this section.

Subd. 6. [BUILDING.] The school district shall provide the physical space and costs associated with operating the library including, but not limited to, heat, light, telephone service, and maintenance.

Subd. 7. [ORGANIZATION.] Immediately after appointment, the library board shall organize by electing one of its number as president and one as secretary, and it may appoint other officers it finds necessary.

Subd. 8. [DUTIES.] The library board shall adopt bylaws and regulations for the library and for the conduct of its business as may be expedient and conformable to law. It shall have exclusive control of the expenditure of all money collected for it. The library board shall appoint a qualified library director and other staff, establish the compensation of employees, and remove any of them for cause. The library board may contract with the school board, the regional library board, or the city in which the library is located to provide personnel, fiscal, or administrative services. The contract shall state the personnel, fiscal, and administrative services and payments to be provided by each party.

Subd. 10. [REPORT.] The library board shall report to the department of children, families, and learning by February 1, 1999, about the costs of providing the library service and the number of patrons served.

Subd. 11. [EXPIRATION.] This section expires January 31, 2000.

Sec. 5. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants according to Minnesota Statutes, sections 134.32 to 134.35:

$10,069,000 . . . . . 1998

$10,319,000 . . . . . 1999

The 1998 appropriation includes $781,000 for 1997 and $9,288,000 for 1998.

The 1999 appropriation includes $1,032,000 for 1998 and $9,287,000 for 1999.

Subd. 3. [LIBRARIANS OF COLOR.] For the librarians of color program according to Minnesota Statutes, section 134.155:

$55,000 . . . . . 1998

$55,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 4. [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants for collaborative programs to strengthen library services to children, young people, and their families:

$100,000 . . . . . 1998

$100,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Subd. 5. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For grants according to Minnesota Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

$865,000 . . . . . 1998

$903,000 . . . . . 1999

The 1998 appropriation includes $52,000 for 1997 and $813,000 for 1998.

The 1999 appropriation includes $90,000 for 1998 and $813,000 for 1999.

Sec. 6. [REPEALER.]

Sec. 7. [EFFECTIVE DATE.]

Section 4 is effective in the territory located within independent school district No. 319, except Keewatin, the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the last of all the governing bodies for the cities, towns, and unorganized townships. For the unorganized townships, the governing body is the Itasca county board.

Section 1. Minnesota Statutes 1996, section 124.91, subdivision 5, is amended to read:

Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district with its central administrative office located within economic development region one, two, three, four, five, six, seven, eight, nine, and ten may apply to the commissioner of children, families, and learning for ITV revenue up to the greater of .5 percent of the adjusted net tax capacity of the district or $25,000 for. Eligible interactive television expenditures include the construction, maintenance, and lease costs of an interactive television system for instructional purposes. An eligible school district that has completed the construction of its interactive television system may also purchase computer hardware and software used primarily for instructional purposes and access to the Internet provided that its total expenditures for interactive television maintenance and lease costs and for computer hardware and software under this subdivision do not exceed its interactive television revenue for fiscal year 1998. The approval by the commissioner of children, families, and learning and the application procedures set forth in subdivision 1 shall apply to the revenue in this subdivision. In granting the approval, the commissioner must consider whether the district is maximizing efficiency through peak use and off-peak use pricing structures.

(b) To obtain ITV revenue, a district may levy an amount not to exceed the district's ITV revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the year before the year the levy is certified by the actual pupil units in the district for the year to which the levy is attributable; to

(2) 100 percent of the equalizing factor as defined in section 124A.02, subdivision 8, for the year to which the levy is attributable.

(c) A district's ITV aid is the difference between its ITV revenue and the ITV levy.

(d) The revenue in the first year after reorganization for a district that has reorganized under section 122.22, 122.23, or 122.241 to 122.247 shall be the greater of:

(1) the revenue computed for the reorganized district under paragraph (a), or

(2)(i) for two districts that reorganized, 75 percent of the revenue computed as if the districts involved in the reorganization were separate, or

(ii) for three or more districts that reorganized, 50 percent of the revenue computed as if the districts involved in the reorganization were separate.

(e) The revenue in paragraph (d) is increased by the difference between the initial revenue and ITV lease costs for leases that had been entered into by the preexisting districts on the effective date of the consolidation or combination and with a term not exceeding ten years. This increased revenue is only available for the remaining term of the lease. However, in no case shall the revenue exceed the amount available had the preexisting districts received revenue separately.

Sec. 2. [124.98] [TECHNOLOGY PLAN.]

A district must submit a technology plan to the commissioner of children, families, and learning. The technology plan must include school building detail and provide the following:

(2) an explanation of how the school will make technology integral to curriculum, instruction, and assessment, helping teachers to individualize the learning process and integrate and administer the graduation standards;

(3) a description of the academic content and skills that will be taught using electronic technology;

(4) an inventory of existing hardware, software, and connectivity;

(5) a list of the hardware and software investment plans;

(6) a description of the role of private businesses, post-secondary education institutions, parents, the community, and other interested parties in developing and supporting the plan;

(7) an explanation of how the school will work collaboratively with the private sector libraries and other public agencies and institutions of higher education to design, develop, and distribute interactive multimedia instructional materials over local- and wide-area networks, including the learning network and the Internet;

(8) an inventory of staff technology skills;

(9) objectives and plans for ongoing staff training to increase and integrate the use of technology into the classroom;

(10) a plan for the accessibility needs of special students; and

(11) plans for ongoing system support and development.

The commissioner shall review the technology plan and determine that it complies with the goal of statewide interoperability of technology investments. A district must post its technology plan on the Internet so that it is accessible to other school districts.

Sec. 3. Laws 1995, First Special Session chapter 3, article 12, section 7, subdivision 1, is amended to read:

Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership of the Minnesota education telecommunications council established in Laws 1993, First Special Session chapter 2, is expanded to include representatives of elementary and secondary education. The membership shall consist of three representatives from the University of Minnesota; three representatives of the board of trustees for Minnesota state colleges and universities; one representative of the higher education services offices; one representative appointed by the private college council; eight representatives selected by the commissioner of education children, families, and learning, at least one of which must come from each of the six higher education telecommunication regions; a representative from the information policy office; one member two members each from the senate and the house of representatives selected by the subcommittee on committees of the committee on rules and administration of the senate and the speaker of the house, one member from each body must be a member of the minority party; and three representatives of libraries, one representing regional public libraries, one representing multitype libraries, and one representing community libraries, selected by the governor. The council shall:

(1) develop a statewide vision and plans for the use of distance learning technologies and provide leadership in implementing the use of such technologies;

(2) recommend to the commissioner and the legislature by December 15, 1996, a plan for long-term governance and a proposed structure for statewide and regional telecommunications;

(3) recommend educational policy relating to telecommunications;

(4) determine priorities for use;

(5) oversee coordination of networks for post-secondary campuses, K-12 education, and regional and community libraries;

(7) determine priorities for grant funding proposals;

(8) establish technical standards for all Minnesota schools and libraries to ensure interoperability of hardware, software, and telecommunications which shall be compatible with national and international standards and which allow an open architecture of computer systems and technology systems to be considered and facilitate the communication of information and data among public sector agencies and jurisdictions, private sector organizations, and the general public; and

(9) develop technical standards for the operation and maintenance of all Minnesota interactive television cooperatives.

The council shall consult with representatives of the telecommunication industry in implementing this section.

Sec. 4. Laws 1996, chapter 412, article 12, section 8, is amended to read:

Sec. 8. [TECHNOLOGY; TECHNICAL ASSISTANCE.]

The commissioner of the department of children, families, and learning shall work with interested and involved organizations including, but not limited to, representatives of school districts, service cooperatives, TIES, education districts, higher education institutions, public libraries, and other government agencies to develop a technology planning guide for school districts. The department must distribute the guides to school districts and hold regional meetings to discuss the planning process. In making technology-related funding decisions, the commissioner may consider a school district's technology plan in making technology-related funding decisions and the degree to which it meets the technical standards established by the Minnesota education telecommunication council under Laws 1995, First Special Session chapter 3, article 12, section 7.

Sec. 5. Laws 1996, chapter 412, article 12, section 11, is amended to read:

Sec. 11. [COOPERATIVE PURCHASING.]

The department of children, families, and learning shall work with the department of administration to make available to public libraries, public and nonpublic schools, political subdivisions and state agencies, state level contracts from multiple sources, including manufacturers and software publishers, for the purchase or lease of instructional and administrative software, computers, video, and network hardware. Notwithstanding section 471.345, public and nonpublic schools, public libraries, and political subdivisions may participate in the contracts a negotiated or a sealed bid contract legally entered into by the state of Minnesota, if it meets their technology purchasing needs.

Sec. 6. [TECHNOLOGY GRANT AWARD.]

The commissioner shall award a one-time technology grant to school districts for any purpose that is consistent with the district's technology plan under section 2. The commissioner may establish criteria for awarding grants under this section. A school district is eligible for a grant that is equal to the greater of:

(1) $30 per fund balance pupil unit; or

(2) the lesser of $25,000 or $80 per fund balance pupil unit.

Sec. 7. [COMPETITIVE TECHNOLOGY INVESTMENT GRANTS.]

Eligible applicants must, at a minimum, describe how the proposed project is consistent with the district's technology plan, identify the specific needs that the project will address, define the project's expected outcomes, and provide the source, type, and amounts of all matching funds. To be eligible for a technology investment grant, a school district must:

(1) have each dollar of grant money matched by at least $1 of school district money, nonstate or nonschool district money, or in-kind contributions; and

(2) maintain any ongoing costs of support for the technology project after the initial funding under the grant program. Districts may count toward their match any eligible expenditures made from July 1, 1996.

Sec. 8. [LEARNING RESOURCE NETWORK.]

The commissioner shall contract with multiple vendors to develop a learning resource network that expands the electronic curriculum library under Laws 1996, chapter 412, article 12, section 15, subdivision 4, paragraph (a), and to support the statewide implementation of the graduation standards.

The learning resource network must be made available to public schools over the learning network established through telecommunication access grants under Minnesota Statutes, section 124C.74. Products and services available on the learning resource network must be integrated and provide methods to align curriculum with the graduation standards, and to assist teachers in curriculum delivery and integration, student assessment, and classroom recordkeeping. The commissioner shall also identify ways to make the learning resource network available to students and parents to enhance the learning experience.

The commissioner shall consult with representatives from the public and private sector in the development, use, and operation of the learning resource network. The commissioner, as part of the learning network, shall compile a list of vendors of software that can be used to support implementation of the graduation standards. The commissioner shall also identify district-initiated projects and facilitate collaboration between districts to develop and adapt electronic teaching and administering tools.

Sec. 9. [GRANTS TO ANALYZE THE NUTRITIONAL COMPONENTS OF SCHOOL MEALS.]

A grant program for fiscal year 1998 is established to allow school districts to purchase a computer, monitor, printer, or software to analyze the nutritional components of school meals, ensure districts' compliance with federal dietary guidelines applicable to school meals, and improve districts' management of meal costs, meal program tracking, and government reporting of meals served. To obtain a grant, a district must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner prescribes. The applicant, in the application, must describe:

(1) the computer hardware and software the applicant requires to comply with the terms of the grant program;

(2) how the applicant will analyze the nutritional components of school meals;

(3) how the applicant will use the analysis to ensure its compliance with federal dietary guidelines applicable to school meals;

(4) how the applicant will improve its management of meal costs, meal program tracking, and government reporting of meals; and

(5) the source of a $1 local match of funding or in-kind contributions the applicant will receive for every $2 of state funding the applicant receives.

Sec. 10. [OPEN ENROLLMENT TECHNOLOGY PROJECT.]

The commissioner of children, families, and learning shall establish an open enrollment year-round project which demonstrates the use of technology as the primary instructional delivery system for elementary and secondary students. The purposes of this program include:

(1) to allow for open enrollment of students via technology;

(2) to utilize on-line education resources as an alternative to the traditional classroom setting;

(3) to provide alternative instructional tools for home school families;

(4) to implement a variety of electronic curriculum packages which support distance learning;

(5) to support a performance-based system of achievement;

(6) to use individual education learning plans to prescribe learning activities and track student performance in an open enrollment setting;

(7) to evaluate technology as a distance education tool, disseminate information on the project, and report on the effectiveness of technology as a means of open enrollment; and

(8) to advance opportunities for year-round learning.

Sec. 11. [LIBRARY SITE TECHNOLOGY GRANTS.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] A matching grant program is established to fund library site technology grants. The grants are available to public or school library sites or to a partnership of library sites. Recipients shall use grant proceeds for technology projects that are consistent with technology plans and the LDS/MINITEX Joint Standards and Guidelines for Automated Library Systems. The grants shall fund projects to expand and integrate technology into library operations and increase public access to technology by:

(1) converting school media center bibliographic records into a standard format;

(2) loading school library site media records into regional, public, or multicounty, multitype library systems or other appropriate library networks;

(3) upgrading and increasing database development; and

(4) improving public library staff use of networked library resources at library sites throughout the regional multitype cooperatives.

Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner shall establish a process and application forms for library sites to apply for grant funds. Libraries must describe how they will cooperate with schools. An applicant must submit a technology plan with the application. Eligible applicants must, at a minimum, describe how the proposed project is consistent with the technology plan; describe how it ensures interoperability of hardware, software, and telecommunication; identify the specific site needs that the project will address; define the project's expected outcomes; and provide the source, type, and amounts of all matching funds. To be eligible for a site-based technology learning grant, a library site must:

(1) be a multicounty, multitype library system as defined in Minnesota Statutes, section 134.001, subdivision 6; members of a multicounty, multitype library system receiving public funds, including public libraries as defined in Minnesota Statutes, section 134.001, subdivision 2; regional public library systems, as defined in Minnesota Statutes, section 134.001, subdivision 4; a school library; or a partnership of public and school libraries;

(3) agree to disseminate and share information about its project;

(4) provide a benefit to the greater community; and

(5) maintain any ongoing costs of support for the technology project after the initial funding under the grant program.

Subd. 3. [GRANT AWARD.] The commissioner shall establish criteria for awarding grants under this section. All grant awards shall be made directly to the multicounty, multitype library systems or to a partnership of libraries that belong to a multitype system. The commissioner shall consult with representatives from the library planning task force and the Minnesota education telecommunications council in establishing criteria for the library site technology grants.

Sec. 12. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND SCHOOL MEDIA CENTERS.]

Subdivision 1. [ESTABLISHMENT.] The commissioner shall establish a program to provide statewide licenses to commercial electronic databases of periodicals, encyclopedias, and associated reference materials for school media centers and public libraries. The commissioner shall solicit proposals for access licenses to such databases from commercial vendors and responses to those proposals shall be evaluated by staff of the office of library development and service, Minitex staff, and a representative panel of school media specialists and public librarians.

Subd. 2. [ELIGIBILITY.] Access to the selected databases shall be made available to any school media center that is a member of a multicounty, multitype library system as defined in Minnesota Statutes, section 134.001, subdivision 6, or any public library system as defined in Minnesota Statutes, section 134.001, subdivision 2 or 4. Any user of those libraries with appropriate authentication may have access to the databases from a remote site.

Sec. 13. [LEARNING ACADEMY; COMPUTER INCENTIVE PROGRAM.]

In order to promote the use of technology and its integration into all classroom activities including implementation of the graduation standards, integration of curriculum, and recordkeeping, the commissioner of children, families, and learning shall establish a process to develop standards and certify training for an incentive program to provide computers for teachers. A district that chooses to participate in the incentive program must share in the cost of providing computers to eligible teachers. A participating district shall provide a computer to teachers who complete the requirements under this section. The teacher may choose any computer up to a maximum value established by the department.

The district shall own computers purchased under the learning academy. The computer may be used by the teacher during school and nonschool hours. The commissioner, in consultation with the office of technology and representatives of education and the private sector, shall establish the requirement for participation including training standards, training protocols and courses, and minimum competency or number of hours of training. After consulting with districts on the types and numbers of computers and standard software to be installed on the computers, the commissioner, in cooperation with the department of administration and the office of technology, shall negotiate with vendors to purchase computers for eligible teachers. The cost should reflect the state's quantity purchases.

Sec. 14. [RETOOLING INSTRUCTION FOR PUBLIC LIBRARY STAFF.]

Subdivision 1. [RETOOLING INSTRUCTION PROGRAM.] In order to ensure that citizens throughout Minnesota have effective access to resources now available through technological innovations, including the Internet, massive databases in electronic format, and high-speed data communication systems, the commissioner of children, families, and learning shall facilitate the design and implementation of a program to upgrade the skills of public library staff throughout the state. Not later than June 30, 1999, the commissioner shall complete at least five major elements in a program to upgrade public library staff skills and capabilities. The commissioner may conduct or contract for:

(1) the preparation and development of a curriculum for public library staff skill building;

(2) a pilot project to determine the benefits and instructional costs for public library staff skill building;

(4) implementation of a reliable system for tracking course and workshop attendance, including provisions for appropriate certification of attendees, and for making recognition of staff achievements portable from one public library system to another; and

(5) a pilot project to evaluate cost-effective alternative distant learning technologies and methodologies.

Subd. 2. [REPORT AND RECOMMENDATIONS.] The commissioner of children, families, and learning shall conduct or contract for a report to the legislature, to be delivered not later than February 15, 2000, concerning the costs and accomplishments of the project under subdivision 1 and providing recommendations for additional measures to provide excellent information services to the citizens of Minnesota.

Sec. 15. [REFURBISHED COMPUTER PROGRAM.]

The commissioner of children, families, and learning shall establish a program to refurbish donated computers to increase the number of multimedia computers in Minnesota schools. In establishing the program, the commissioner shall work with the commissioners of administration and corrections and the office of technology. The program must be implemented in conjunction with the education technology improvement clearinghouses under Laws 1996, chapter 412, article 12, section 1, and in partnership with business, nonprofit organizations, and institutions of higher education. The program must:

(1) establish the number of multimedia computers to be refurbished by July 1, 2000;

(2) establish partnerships with nonprofit or business organizations to solicit donations;

(3) develop an agreement with the commissioner of corrections to facilitate computers in Minnesota correctional institutions with procedures to minimize security risks;

(4) promote the program to school districts; and

(5) develop plans to equitably distribute computers to districts and ensure proper recycling of unsuitable equipment.

Sec. 16. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated, unless otherwise indicated, from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [TELECOMMUNICATION ACCESS GRANTS.] For one-time grants to school districts and regional public library systems to establish connections according to Minnesota Statutes, section 124C.74:

$ 9,000,000 . . . . . 1998

$10,000,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Before a district can receive a grant under this subdivision in fiscal year 1999, the district must submit, to the commissioner, evidence that it has pursued all possible funding options, including ITV revenue under Minnesota Statutes, section 124.91, subdivision 5. Notwithstanding Minnesota Statutes, section 124.91, subdivision 5, ITV revenue may also be used for the purposes of the telecommunication access grants under Minnesota Statutes, section 124C.74. $9,000,000 of this amount shall not be included as part of the base for fiscal year 2000-2001.

Subd. 3. [LEARNING ACADEMY.] For learning academies under section 13:

This appropriation is available until expended.

The commissioner shall use these funds to share in the costs of the computer incentives under section 13.

Subd. 4. [LEARNING RESOURCE NETWORK.] For the learning resource network in section 8:

$200,000 . . . . . 1998

This appropriation is available until June 30, 1999. These funds are a one-time appropriation.

The commissioner shall be responsible for the initial cost of establishing the learning resource network. A school site choosing to be part of the network shall be responsible for the ongoing costs.

Subd. 5. [TECHNOLOGY GRANT AWARD.] For a grant award to districts under section 6:

$30,000,000 . . . . . 1998

This appropriation is available until June 30, 1999. These funds are a one-time appropriation.

Subd. 6. [SCHOOL MEALS.] For technology grants to analyze the nutritional components of school meals under section 9:

$200,000 . . . . . 1998

Subd. 7. [OPEN ENROLLMENT TECHNOLOGY PROJECT.] For the open enrollment project under section 10:

$100,000 . . . . . 1998

$100,000 . . . . . 1999

Any balance in the first year does not cancel but is available for the second year. This appropriation is for a grant to a learning site. The site shall be chosen by the commissioner of children, families, and learning and must be one of the rural sites funded by the year-round school/extended week or day pilot program created under Laws 1995, First Special Session chapter 3, article 7, section 4, as amended by Laws 1996, chapter 412, article 7, section 13.

Subd. 8. [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] For one-time library site grants under section 11:

$2,000,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 9. [TECHNOLOGY ENHANCEMENT; RESIDENTIAL ACADEMIES.] For technology improvements at the Minnesota state academies:

$500,000 . . . . . 1998

$500,000 . . . . . 1999

The appropriation is for implementing the Minnesota state academies' technology plan including completion of a local area network; installation of ten technology laboratories, classroom work stations, and additional hardware and software; purchases of large screen monitors, speech synthesizers, screen reader software, and braille display; and technology support and maintenance to assist the academies in fulfilling their educational mission.

Subd. 10. [RETOOLING.] For retooling instruction for public library staff and reporting requirements under section 14:

$100,000 . . . . . 1998

Subd. 11. [REGIONAL MANAGEMENT INFORMATION CENTERS.] The sum indicated in this subdivision is appropriated from the general fund to the office of technology for the fiscal year designated. For grants to regional management information centers under Minnesota Statutes, section 121.935, for the transition period in their technology uses and consolidation of processing needs:

$978,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 12. [UNREIMBURSED TELECOMMUNICATIONS COSTS.] For a grant to the northeast Minnesota telecommunications access grant governance board:

$124,000 . . . . . 1998

The grant is to fund interconnectivity costs incurred by school districts and libraries that were not included in the telecommunication access grant awarded to the region.

Subd. 13. [INTERACTIVE TELEVISION (ITV) AID.] For interactive television (ITV) aid under Minnesota Statutes, section 124.91, subdivision 5:

$4,030,000 . . . . . 1998

$5,942,000 . . . . . 1999

The 1998 appropriation includes $384,000 for 1997 and $3,646,000 for 1998.

The 1999 appropriation includes $405,000 for 1998 and $5,537,000 for 1999.

Subd. 14. [TECHNOLOGY INVESTMENT GRANTS.] For grants to school districts for the purposes of section 7:

$20,000,000 . . . . . 1998

Of this amount, up to $6,000,000 is for the multimedia computer refurbishment program under section 15.

The commissioner may use all or part of this appropriation for an agreement with the commissioner of corrections to establish refurbishment centers at one or more correctional institutions.

This appropriation is available until expended. These funds are a one-time appropriation.

Subd. 15. [RED ROCK CENTRAL REMOTE LEARNER GRANT.] For a grant to independent school district Nos. 178, Storden-Jeffers; 633, Lamberton; and 638, Sanborn, to establish a high school program for remote access for learners to the districts' educational network of data and training, commercial access for youth entrepreneurship, and commercial access for school-to-work programs:

$75,000 . . . . . 1998

This appropriation may be used for start-up and operation costs.

Subd. 16. [DATABASE ACCESS.] For the purposes of section 13:

$1,000,000 . . . . . 1998

Sec. 17. [REPEALER.]

Minnesota Statutes 1996, section 134.46, is repealed. Laws 1995, First Special Session chapter 3, article 12, section 8, is repealed.

Section 1. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.

Subd. 2. [DEPARTMENT.] For the department of children, families, and learning:

$24,389,000 . . . . . 1998

$24,007,000 . . . . . 1999

(a) Any balance in the first year does not cancel but is available in the second year.

(b) $21,000 each year is from the trunk highway fund.

(c) $622,000 in 1998 and $627,000 in 1999 is for the academic excellence foundation.

Up to $50,000 each year is contingent upon the match of $1 in the previous year from private sources consisting of either direct monetary contributions or in-kind contributions of related goods or services, for each $1 of the appropriation. The commissioner of children, families, and learning must certify receipt of the money or documentation for the private matching funds or in-kind contributions. The unencumbered balance from the amount actually appropriated from the contingent amount in 1998 does not cancel but is available in 1999. The amount carried forward must not be used to establish a larger annual base appropriation for later fiscal years.

(d) $207,000 in 1998 and $210,000 in 1999 is for the state board of education.

(e) $230,000 in 1998 and $234,000 in 1999 is for the board of teaching.

(f) $775,000 each year is for educational effectiveness programs according to Minnesota Statutes, sections 121.602 and 121.608.

(g) $60,000 each year is for contracting with the state fire marshal to provide the services required according to Minnesota Statutes, section 121.1502.

(h) $400,000 each year is for health and safety management assistance contracts under Minnesota Statutes, section 124.83.

(i) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated.

(j) The commissioner shall maintain no more than five total complement in the categories of commissioner, deputy commissioner, assistant commissioner, assistant to the commissioner, and executive assistant.

(k) The department of children, families, and learning shall develop a performance report on the quality of its programs and services. The report must be consistent with the process specified in Minnesota Statutes, sections 15.90 to 15.92. The goals, objectives, and measures of this report must be developed in cooperation with the chairs of the finance divisions of the education committees of the house of representatives and senate, the department of finance, and the office of legislative auditor. The report must include data to indicate the progress of the department in meeting its goals and objectives.

The department of children, families, and learning must present a biennial report on the quality and performance of key education programs in Minnesota's public early childhood, elementary, middle, and secondary education programs. To the extent possible, the plan must be consistent with Minnesota Statutes, sections 15.90 to 15.92. The department must consult with the chairs of the finance divisions of the education committees of the house of representatives and senate, the department of finance, and the office of legislative auditor in developing this plan.

(l) $188,000 each year is appropriated from the special revenue fund for the graduation rule. The department appropriation is to be used to fund continued assessment and standards development and piloting; to broaden public understanding through communication; to continue development of learning benchmarks; for ongoing statewide assessment efforts; to develop system performance standards; and to provide technical assistance to schools throughout the state. The appropriation from the special revenue fund is to be used for appropriate development efforts in health-related standards and assessments. The commissioner may transfer any portion of this appropriation not needed for the purpose of this paragraph to the Minnesota highway safety center at St. Cloud University. Any amount of this appropriation does not cancel and shall be carried forward to the following fiscal year. Notwithstanding any law to the contrary, the commissioner may contract for national expertise and related services in each of these development areas. Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, the commissioner of children, families, and learning may contract with a school district for a period no longer than five consecutive years for the services of an educator to work in the development, implementation, or both, of the graduation rule. The commissioner may contract for services and expertise as necessary for development and implementation of the graduation standards. Notwithstanding any law to the contrary, the contracts are not subject to the contract certification procedures of the commissioner of administration or of Minnesota Statutes, chapter 16B, and are not subject to or included in any spending limitations on contracts.

(m) $50,000 is to ensure compliance with state and federal laws prohibiting discrimination because of race, religion, or sex. The department shall use the appropriation to provide state-level leadership on equal education opportunities which promote elimination of discriminatory practices in the areas of race, religion, and sex in public schools and public educational agencies under its general supervision and on activities including, at least, compliance monitoring and voluntary compliance when local school district deficiencies are found.

(n) $500,000 each year is for department support of technology initiatives and growing data and information processing needs.

Sec. 2. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA CENTER FOR ARTS EDUCATION.]

The sums indicated in this section are appropriated from the general fund to the center for arts education for the fiscal years designated:

$5,541,000 . . . . . 1998

$6,054,000 . . . . . 1999

The center for arts education may establish full-time, part-time, or seasonal positions as necessary to carry out assigned responsibilities and missions. Actual employment levels are limited by the availability of state funds appropriated for salaries, benefits, and agency operations or funds available from other sources for such purposes.

Any balance in the first year does not cancel but is available in the second year.

Sec. 3. [APPROPRIATIONS; FARIBAULT ACADEMIES.]

The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the Faribault academies for the fiscal years designated:

$8,910,000 . . . . . 1998

$8,908,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

The state board of education may establish full-time, part-time, or seasonal positions as necessary to carry out assigned responsibilities and missions of the Faribault academies. Actual employment levels are limited by the availability of state funds appropriated for salaries, benefits, and agency operations or funds available from other sources for such purposes.

In the next biennial budget, the academies must assess their progress in meeting the established performance measures for the Faribault academies and inform the legislature on the content of that assessment. The information must include an assessment of its progress by consumers and employees.

Section 1. Minnesota Statutes 1996, section 124A.225, subdivision 1, is amended to read:

Subdivision 1. [REVENUE.] Of a district's general education revenue an amount equal to the sum of the number of elementary fund balance pupils in average daily membership defined in section 124.17, subdivision 1h 1f, and one-half of the number of kindergarten fund balance pupils in average daily membership as defined in section 124.17, subdivision 1h 1f, times .06 for fiscal year 1995 and thereafter times the formula allowance must be reserved according to this section."

Delete the title and insert:

124.95, subdivision 2; 124.961; 124A.03, subdivision 1c; 124A.036, subdivisions 5 and 6; 124A.04, subdivision 2; 124A.22, subdivisions 1, 2, as amended, 3, 6, 6a, 10, 11, 13b, and by adding a subdivision; 124A.225, subdivisions 1 and 4; 124A.23, subdivisions 1 and 3; 124A.26, subdivision 1; 124A.28; 124C.45, subdivision 1a; 124C.46, subdivisions 1 and 2; 124C.498, subdivision 2; 125.05, subdivisions 1c and 2; 125.12, subdivision 14; 126.22, subdivision 2; 126.23, subdivision 1; 126.77, subdivision 1; 126.82; 127.27, subdivision 10; 127.282; 128C.02, subdivision 2; 128C.08, subdivision 5; 134.155, subdivisions 2 and 3; 134.34, subdivision 4; and 136A.233, by adding a subdivision; Laws 1991, chapter 265, article 1, section 30, as ameded; Laws 1992, chapter 499, article 7, section 31; Laws 1995, First Special Session chapter 3, article 1, section 56; article 2, section 52; article 3, section 11, subdivisions 1, 2, and 5; article 11, section 21, subdivision 3; article 12, section 7, subdivision 1; Laws 1996, chapter 412, article 4, section 34, subdivision 4; and article 12, sections 8 and 11; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 124; 126; and 127; repealing Minnesota Statutes 1996, sections 121.904, subdivision 4d; 124.177; 124.225, subdivisions 13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 10; 124.3201, subdivisions 2a and 2b; 124A.22, subdivisions 2a, 13, and 13a; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; 124A.73; 126.113; 128B.10; 134.34, subdivision 4a; and 134.46; Laws 1993, chapter 146, article 5, section 20; Laws 1994, chapter 647, article 7, section 18; and Laws 1995, First Special Session chapter 3, article 12, section 8."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

H. F. No. 2147, A bill for an act relating to education; providing for early childhood education, community, prevention, and self-sufficiency programs; appropriating money; amending Minnesota Statutes 1996, sections 15.53, subdivision 2; 119A.01, subdivision 3; 119A.04, subdivision 6, and by adding a subdivision; 119A.13, subdivisions 2, 3, and 4; 119A.14; 119A.15, subdivisions 2, 5, and by adding a subdivision; 119A.16; 119A.31, subdivisions 1 and 2; 119B.01, subdivisions 8, 9, 12, 16, 17, and by adding subdivisions; 119B.02; 119B.03, subdivisions 3, 4, 5, 6, 7, 8, and by adding subdivisions; 119B.04; 119B.05, subdivisions 1, 5, 6, and by adding a subdivision; 119B.07; 119B.08, subdivisions 1 and 3; 119B.09, subdivisions 1, 2, and by adding subdivisions; 119B.10, subdivision 1; 119B.11, subdivisions 1, 3, and by adding a subdivision; 119B.12; 119B.13, subdivision 1, and by adding subdivisions; 119B.15; 119B.16, subdivision 1; 119B.18, by adding a subdivision; 119B.20, subdivisions 7, 9, and 10; 119B.21, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 121.831, subdivisions 3 and 4; 121.8355, subdivision 1; 121.88, subdivisions 1, 10, and by adding a subdivision; 121.882, subdivisions 2 and 6; 124.17, subdivision 2e; 124.26, subdivision 2, and by adding a subdivision; 124.2601, subdivisions 3, 4, 5, 6, and by adding a subdivision; 124.261, subdivision 1; 124.2615, subdivisions 1 and 2; 124.2711, subdivisions 1 and 2a; 124.2713, subdivisions 6 and 8; 124.2716, subdivision 3; 268.38, by adding a subdivision; 268.53, subdivision 5; 268.55, by adding a subdivision; 268.912; 268.913, subdivisions 2 and 4; and 268.914, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 119A; and 119B; repealing Minnesota Statutes 1996, sections 119B.03, subdivision 7; 119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 119B.19, subdivision 2; 119B.21, subdivision 7; 121.8355, subdivision 1a; and 268.913, subdivision 5.

Reported the same back with the following amendments:

Page 11, line 7, delete "Sections" and insert "Section"

Page 11, lines 7 and 8, delete "and 14, subdivision 3 (ECFE aid), are" and insert "is"

Page 19, after line 33, insert:

"Sec. 10. Laws 1996, chapter 463, section 4, subdivision 2, as amended by Laws 1997, chapter 3, section 1, is amended to read:

Subd. 2. Youth Initiative Grants 16,000,000

grades four through eight, with regular enrichment activities during nonschool hours, including after school, evenings, weekends, and school vacation periods, and that will provide equal access and programming for girls. The buildings may be leased to nonprofit community organizations, subject to Minnesota Statutes, section 16A.695, for the same purposes. Enrichment programs include academic enrichment, homework assistance, computer and technology use, arts and cultural activities, clubs, school-to-work and work force development, athletic, and recreational activities. Grants must be used to expand the number of children participating in enrichment programs or improve the quality or range of program offerings. The facilities must be fully available for programming sponsored by youth-serving nonprofit and community groups, or school, county, or city programs, for maximum hours after school, evenings, weekends, summers, and other school vacation periods. Priority must be given to proposals that demonstrate collaboration among private, nonprofit, and public agencies, including regional entities dealing with at-risk youth, and community and parent organizations in arranging for programming, staffing, transportation, and equipment. All proposals must include an inventory of existing facilities and an assessment of programming needs in the community.

(a) Enrichment grants within the city of Minneapolis 5,000,000

Of this amount, at least $2,500,000 must be used in the neighborhoods of the Near North, Hawthorne, Sumner- Glenwood-Harrison, Powderhorn, Central, Whittier, and Phillips.

(b) Enrichment grants within the city of St. Paul 5,000,000

Of this amount, at least $2,500,000 must be used in the neighborhoods of Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons Bluff, and the West Side.

The remaining $2,500,000 is available citywide, with priority for some of the remaining amount given to proposals by public/private partnerships currently offering after-school enrichment programs in low-income areas in conjunction with a neighborhood-based organization. Up to $100,000 of the remaining $2,500,000 may be used to develop urban sports facilities for at-risk inner city youth, including those older than eighth grade.

(c) Enrichment grants outside of the cities of Minneapolis and St. Paul 6,000,000

Priority must be given to school attendance areas with high concentrations of children eligible for free or reduced school lunch and to government units demonstrating a commitment to collaborative youth efforts.

$500,000 is to the city of Bloomington for after school enrichment activities in the northeast Bloomington study area.

(d) Each grant must be matched by $1 from local sources for each $2 of state money. In-kind contributions of facilities may be used for the local match. The value of in-kind contributions must be determined by the commissioner of finance.

(e) Preference must be given to projects for which at least ten percent of the youth initiative grant is expended using youthbuild under Minnesota Statutes, sections 268.361 to 268.367, or other youth employment and training programs, for the labor portion of the construction. Eligible programs must consult with appropriate labor organizations to deliver education and training."

Page 22, line 35, delete "Up to" and insert "Of this amount,"

Page 31, line 33, strike "and later" and insert ", 1996, and 1997"

Page 32, line 19, strike "1996" and insert "1998"

Page 36, line 29, after "of" insert "cost effectively"

Page 43, line 4, delete "$3,185,000" and insert "$2,780,000"

Page 43, line 5, delete "$2,453,000" and insert "$2,858,000"

Page 43, line 7, delete "$2,961,000" and insert "$2,556,000"

Page 43, line 8, delete "$329,000" and insert "$284,000"

Page 43, line 9, delete "$2,124,000" and insert "$2,574,000"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 33, after the semicolon, insert "Laws 1996, chapter 463, section 4, subdivision 2, as amended;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Solberg from the Committee on Ways and Means to which was referred:

S. F. No. 4, A bill for an act relating to the military; changing the tuition and textbook reimbursement grant program; amending Minnesota Statutes 1996, section 192.501, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 192.501, subdivision 2, is amended to read:

(b) Eligibility is limited to a member of the national guard who:

(1) is serving satisfactorily as defined by the adjutant general;

(2) is attending a post-secondary educational institution, as defined by section 136A.15, subdivision 6, including a vocational or technical school operated or regulated by this state or another state or province; and

(3) provides proof of satisfactory completion of coursework, as defined by the adjutant general.

In addition, if a member of the Minnesota national guard is killed in the line of state active service or federally funded state active service, as defined in section 190.05, subdivisions 5a and 5b, the member's surviving spouse, and any surviving dependent who has not yet reached 24 years of age, shall be is eligible for a tuition and textbook reimbursement grant.

The adjutant general may, within the limitations of this paragraph and other applicable laws, determine additional eligibility criteria for the grant, and must specify the criteria in department regulations and publish changes as necessary.

(c) The amount of a tuition and textbook reimbursement grant must be specified on a schedule as determined and published in department regulations by the adjutant general, but is limited to a maximum of an amount equal to the greater of:

(1) 75 percent of the cost of tuition for lower division programs in the college of liberal arts at the twin cities campus of the University of Minnesota in the most recent academic year,; or

(2) 50 percent of the cost of tuition for the program in which the person is enrolled at that Minnesota public institution, or if that public institution is outside the state of Minnesota, for the cost of a comparable program at the University of Minnesota, except that in the case of a survivor as defined in paragraph (b), the amount of the tuition and textbook reimbursement grant for coursework satisfactorily completed by the person shall be is limited to 100 percent of the cost of tuition for post-secondary courses at a Minnesota public educational institution.

Paragraph (b) notwithstanding, a person is no longer eligible for a grant under this subdivision once the person has received grants under this subdivision for the equivalent of 208 quarter credits or 144 semester credits of coursework.

(d) Tuition and textbook reimbursement grants received under this subdivision shall may not be considered by the Minnesota higher education services office or by any other state board, commission, or entity in determining a person's eligibility for a scholarship or grant-in-aid under sections 136A.095 to 136A.1311.

(e) If a member fails to complete a term of enlistment during which a tuition and textbook reimbursement grant was paid, the adjutant general may seek to recoup a prorated amount as determined by the adjutant general."

Delete the title and insert:

"A bill for an act relating to the military; changing the tuition and textbook reimbursement grant program; amending Minnesota Statutes 1996, section 192.501, subdivision 2."

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. Nos. 664, 1082 and 2147 were read for the second time.

S. F. Nos. 117, 333, 495, 574, 1025, 1136, 1179, 1513, 1833 and 4 were read for the second time.

The following House Files were introduced:

Wenzel, Lieder, Osthoff, Larsen and Jefferson introduced:

H. F. No. 2151, A bill for an act relating to highways; designating the Jim Rice memorial expressway; amending Minnesota Statutes 1996, section 161.14, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Transportation and Transit.

Davids introduced:

H. F. No. 2152, A bill for an act relating to insurance; regulating the termination of agent contracts; amending Minnesota Statutes 1996, section 60A.172.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

The following message was received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 1905, 1431 and 448.

Patrick E. Flahaven, Secretary of the Senate

subdivision 5; 14.131; 16A.10, subdivision 2; 16A.11, subdivisions 1, 3, and 3c; 16A.1285, subdivision 3; 16A.129, subdivision 3; 16A.15, subdivision 3; 16B.19, subdivision 2b; 16B.24, subdivision 5; 16B.35, by adding a subdivision; 16B.465, subdivision 3; 16B.70, subdivision 2; 176.611, by adding subdivisions; 240A.08; 327.33, subdivision 2; 327B.04, subdivision 7; 349.163, subdivision 4; 356.865, subdivision 3; 363.073, subdivision 1; and 473.556, subdivision 16; proposing coding for new law in Minnesota Statutes, chapters 14; 16A; 16B; 43A; 260; and 465; proposing coding for new law as Minnesota Statutes, chapter 237A; repealing Minnesota Statutes 1996, sections 10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.42; 16B.43; and 16B.58, subdivision 8.

The bill was read for the first time and referred to the Committee on Governmental Operations.

S. F. No. 1431, A bill for an act relating to crime; adding an exception to the crime of female genital mutilation for certified nurse midwives; amending Minnesota Statutes 1996, section 609.2245, subdivision 2.

The bill was read for the first time and referred to the Committee on Judiciary.

S. F. No. 448, A bill for an act relating to mines and minerals; expanding membership on the mineral coordinating committee; establishing the aggregate resources task force; amending Minnesota Statutes 1996, section 93.002, subdivision 1.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

S. F. No. 539 was reported to the House.

Jefferson moved to amend S. F. No. 539 as follows:

Page 2, after line 11, insert:

"Sec. 4. Minnesota Statutes 1996, section 161.14, is amended by adding a subdivision to read:

Subd. 42. [RUBY L. HUGHES BOULEVARD.] The north frontage road just off Olson Memorial Highway, from its intersection with Logan Avenue North and Morgan Avenue North in the city of Minneapolis, is designated "Ruby L. Hughes Boulevard" subject to section 161.139. The commissioner of transportation shall adopt a suitable marking design to mark this road and erect appropriate signs. The people of the community, having resolved to support and financially back the marking of this road, shall reimburse the department for costs incurred in marking and memorializing this road."

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 539, A bill for an act relating to highways; modifying designation of the George Mann memorial highway; designating the Augie Mueller and Don Rickers memorial highways; amending Minnesota Statutes 1996, section 161.14, subdivision 21, and by adding subdivisions.

The question was taken on the passage of the bill and the roll was called. There were 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westfall
Daggett	Holsten	Leppik	Opatz	Skoglund	Westrom
Davids	Huntley	Lieder	Orfield	Slawik	Winter
Dawkins	Jaros	Lindner	Osskopp	Smith	Wolf
Dehler	Jefferson	Long	Osthoff	Solberg	Workman
Delmont	Jennings	Luther	Otremba	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The bill was passed, as amended, and its title agreed to.

S. F. No. 475, A bill for an act relating to drivers' licenses; exempting applicants for farm work licenses from minimum six-month permit possession requirement; amending Minnesota Statutes 1996, section 171.041.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 134 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westfall
Daggett	Holsten	Leppik	Opatz	Skoglund	Westrom
Davids	Huntley	Lieder	Orfield	Slawik	Winter
Journal of the House - 40th Day - Top of Page 2239
Dawkins	Jaros	Lindner	Osskopp	Smith	Wolf
Dehler	Jefferson	Long	Osthoff	Solberg	Workman
Delmont	Jennings	Luther	Otremba	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The bill was passed and its title agreed to.

S. F. No. 1675, A resolution memorializing the strawberry industry to recognize and respect the rights of strawberry workers.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 76 yeas and 54 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Farrell	Johnson, R.	Mahon	Osskopp	Skoglund
Bakk	Folliard	Juhnke	Mares	Osthoff	Slawik
Biernat	Garcia	Kahn	Mariani	Otremba	Solberg
Carlson	Greenfield	Kalis	Marko	Paymar	Tomassoni
Chaudhary	Greiling	Kelso	McCollum	Pelowski	Trimble
Clark	Hasskamp	Kinkel	McGuire	Peterson	Tunheim
Dawkins	Hausman	Knoblach	Milbert	Pugh	Wagenius
Delmont	Hilty	Koskinen	Mullery	Rest	Wejcman
Dempsey	Huntley	Kubly	Munger	Rhodes	Wenzel
Dorn	Jaros	Leighton	Murphy	Rukavina	Winter
Entenza	Jefferson	Lieder	Olson, E.	Schumacher	Spk. Carruthers
Erhardt	Jennings	Long	Opatz	Sekhon
Evans	Johnson, A.	Luther	Orfield	Skare

Those who voted in the negative were:

Anderson, B.	Finseth	Kraus	Mulder	Seagren	Tingelstad
Bettermann	Goodno	Krinkie	Ness	Seifert	Tompkins
Bishop	Gunther	Kuisle	Nornes	Smith	Tuma
Boudreau	Haas	Larsen	Olson, M.	Stanek	Van Dellen
Bradley	Harder	Leppik	Ozment	Stang	Weaver
Broecker	Holsten	Lindner	Paulsen	Sviggum	Westfall
Daggett	Kielkucki	Macklin	Reuter	Swenson, D.	Westrom
Davids	Knight	McElroy	Rifenberg	Swenson, H.	Wolf
Dehler	Koppendrayer	Molnau	Rostberg	Sykora	Workman

The bill was passed and its title agreed to.

H. F. No. 458 was reported to the House.

H. F. No. 257 was reported to the House.

Dorn moved to amend H. F. No. 257, the second engrossment, as follows:

Page 6, after line 5, insert:

"Sec. 4. [144.8014] [SUMMARY APPROVAL.]

Subdivision 1. [ELIMINATING OVERLAP; EXPANSION.] An ambulance service may request a change in its primary service area, as established under section 144E.06, to eliminate any overlap in primary service areas or to expand its primary service area to provide service to a contiguous, but undesignated, primary service area. An ambulance service requesting a change in its primary service area must submit a written application to the board on a form provided by the board and must comply with the requirements of this section.

Subd. 2. [RETRACTION.] An applicant requesting to retract service from a geographic area within its designated primary service area must provide documentation showing that another licensed ambulance service is providing or will provide ambulance coverage within the proposed area of withdrawal.

Subd. 3. [OVERLAPPING EXPANSION.] An applicant requesting to provide service in a geographic area that is within the primary service area of another licensed ambulance service or services must submit documentation from the service or services whose primary service areas overlap the proposed expansion area, approving the expansion and agreeing to withdraw any service coverage from the proposed expanded area. The application may include documentation from the public safety answering point coordinator or coordinators endorsing the proposed change.

Subd. 4. [NO PRIMARY SERVICE.] An applicant requesting to provide service in a geographic area where no primary ambulance service has been designated must submit documentation of approval from the ambulance service or ambulance services which are contiguous to the proposed expansion area. The application may include documentation from the public safety answering point coordinator or coordinators endorsing the proposed change. If a licensed ambulance service provides evidence of historically providing 911 ambulance coverage to the undesignated area, it is not necessary to provide documentation from the contiguous ambulance service or ambulance services approving the change. At a minimum, a 12-month history of primary ambulance coverage must be included with the application.

Subd. 5. [REPORTING.] The board shall report any approved change to the local public safety answering point coordinator."

Page 10, line 31, after "144.802" insert ", subdivisions 1, 2, 3, 3b, 4, 5, and 6" and delete "is" and insert "are"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

H. F. No. 257, A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; establishing registration requirements for first responders; proposing coding for new law as Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1996, section 144.802.

The question was taken on the passage of the bill and the roll was called. There were 126 yeas and 7 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mares	Ozment	Stang
Anderson, I.	Evans	Kahn	Mariani	Paulsen	Swenson, D.
Bakk	Farrell	Kalis	Marko	Pawlenty	Swenson, H.
Bettermann	Finseth	Kelso	McCollum	Paymar	Sykora
Biernat	Folliard	Kielkucki	McElroy	Pelowski	Tingelstad
Bishop	Garcia	Kinkel	McGuire	Peterson	Tompkins
Boudreau	Goodno	Knoblach	Milbert	Pugh	Trimble
Bradley	Greenfield	Koppendrayer	Molnau	Rest	Tuma
Broecker	Greiling	Koskinen	Mulder	Rhodes	Tunheim
Carlson	Gunther	Kraus	Mullery	Rifenberg	Van Dellen
Chaudhary	Haas	Kubly	Munger	Rostberg	Vickerman
Clark	Hasskamp	Kuisle	Murphy	Rukavina	Wagenius
Commers	Hausman	Larsen	Ness	Schumacher	Weaver
Daggett	Hilty	Leighton	Nornes	Seagren	Wejcman
Davids	Holsten	Leppik	Olson, E.	Sekhon	Wenzel
Dawkins	Huntley	Lieder	Olson, M.	Skare	Westfall
Dehler	Jaros	Lindner	Opatz	Skoglund	Westrom
Delmont	Jefferson	Long	Orfield	Slawik	Winter
Dempsey	Jennings	Luther	Osskopp	Smith	Wolf
Dorn	Johnson, A.	Macklin	Osthoff	Solberg	Workman
Entenza	Johnson, R.	Mahon	Otremba	Stanek	Spk. Carruthers

Those who voted in the negative were:

Anderson, B.	Harder	Knight	Krinkie	Reuter	Seifert
Sviggum

The bill was passed, as amended, and its title agreed to.

S. F. No. 1527 was reported to the House.

Tomassoni moved to amend S. F. No. 1527 as follows:

Page 11, line 22, after "is" delete "determined" and insert "entered"

The motion prevailed and the amendment was adopted.

S. F. No. 1527, A bill for an act relating to insurance; Minnesota Insurance Guaranty Act; conforming state law to provisions of the Post-Assessment Property and Liability Insurance Guaranty Association Model Act of the National Association of Insurance Commissioners; amending Minnesota Statutes 1996, sections 60C.02; 60C.03, subdivisions 6, 8, and by adding a subdivision; 60C.05, subdivision 1; 60C.07, subdivision 2; 60C.09; 60C.11, subdivision 5; 60C.13, subdivision 1; 60C.14, subdivision 2; 60C.15; 60C.19; and 60C.21, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 60C; repealing Minnesota Statutes 1996, section 60C.06, subdivision 6.

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, B.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Anderson, I.	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westfall
Daggett	Holsten	Leppik	Opatz	Skoglund	Westrom
Davids	Huntley	Lieder	Orfield	Slawik	Winter
Dawkins	Jaros	Lindner	Osskopp	Smith	Wolf
Dehler	Jefferson	Long	Osthoff	Solberg	Workman
Delmont	Jennings	Luther	Otremba	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.
Evans	Kalis	Marko	Pelowski	Sykora

The bill was passed, as amended, and its title agreed to.

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 1888.

S. F. No. 1888 was reported to the House.

Pelowski moved to amend S. F. No. 1888, the unofficial engrossment, as follows:

Page 5, line 50, after "on" insert "an average of (a)"

Page 5, line 52, before the period, insert "and (b) the proportion of each campus to the total system full year equivalent enrollment for the 1996-1997 academic year"

The motion prevailed and the amendment was adopted.

Dehler moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 43, article 3, delete sections 28 and 29

Renumber the remaining sections

The question was taken on the Dehler amendment and the roll was called. There were 45 yeas and 88 nays as follows:

Those who voted in the affirmative were:

Abrams	Gunther	Kraus	McElroy	Rostberg	Tuma
Anderson, B.	Haas	Krinkie	Molnau	Seagren	Van Dellen
Bradley	Harder	Kuisle	Olson, M.	Smith	Weaver
Broecker	Holsten	Larsen	Paulsen	Stanek	Wolf
Commers	Kielkucki	Leppik	Pawlenty	Sviggum	Workman
Davids	Knight	Lindner	Reuter	Sykora
Dehler	Knoblach	Macklin	Rhodes	Tingelstad
Erhardt	Koppendrayer	Mares	Rifenberg	Tompkins

Those who voted in the negative were:

Anderson, I.	Farrell	Johnson, R.	McCollum	Ozment	Swenson, D.
Bakk	Finseth	Juhnke	McGuire	Paymar	Swenson, H.
Bettermann	Folliard	Kahn	Milbert	Pelowski	Tomassoni
Biernat	Garcia	Kalis	Mulder	Peterson	Trimble
Boudreau	Goodno	Kelso	Mullery	Pugh	Tunheim
Carlson	Greenfield	Kinkel	Munger	Rest	Vickerman
Chaudhary	Greiling	Koskinen	Murphy	Rukavina	Wagenius
Clark	Hasskamp	Kubly	Ness	Schumacher	Wejcman
Daggett	Hausman	Leighton	Nornes	Seifert	Wenzel
Dawkins	Hilty	Lieder	Olson, E.	Sekhon	Westfall
Delmont	Huntley	Long	Opatz	Skare	Westrom
Dempsey	Jaros	Luther	Orfield	Skoglund	Winter
Dorn	Jefferson	Mahon	Osskopp	Slawik	Spk. Carruthers
Entenza	Jennings	Mariani	Osthoff	Solberg
Evans	Johnson, A.	Marko	Otremba	Stang

The motion did not prevail and the amendment was not adopted.

Krinkie, Farrell, Rukavina, Solberg, Kahn and Abrams moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 12, after line 16, insert:

"The University of Minnesota and the Minnesota state colleges and universities shall jointly prepare a report to be submitted to the higher education divisions of the legislature by February 1, 1998, that provides a detailed review of current and planned expenditures on information technology. The plan shall specify the goals and objectives of the systems and the campuses in their use of technology and demonstrate how these goals and objectives will serve the state's interest in higher education."

The motion prevailed and the amendment was adopted.

Milbert, Osthoff, Pawlenty, Luther, Delmont, Hasskamp, Pugh, Greiling and Kahn moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

"Sec. 34. [COLLEGE AND UNIVERSITY HOCKEY PROGRAMS.]

A public college or university that has a NCAA Division I men's hockey program and is not in compliance with Title IX must develop a women's varsity hockey program by August 1, 1998, for competition during the 1998-1999 hockey season."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Molnau moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 7, line 51, delete "554,994,000" and insert "553,394,000"

Page 7, line 55, delete "474,905,000" and insert "473,305,000"

Page 8, delete lines 48 to 52

Adjust the totals accordingly

A roll call was requested and properly seconded.

The question was taken on the Molnau amendment and the roll was called. There were 59 yeas and 75 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kraus	Ness	Rostberg	Tingelstad
Anderson, B.	Goodno	Krinkie	Nornes	Seagren	Tompkins
Bishop	Gunther	Kuisle	Olson, M.	Seifert	Van Dellen
Boudreau	Haas	Larsen	Osskopp	Smith	Vickerman
Bradley	Harder	Leppik	Ozment	Stanek	Weaver
Broecker	Holsten	Lindner	Paulsen	Stang	Westfall
Commers	Kielkucki	Macklin	Pawlenty	Sviggum	Westrom
Daggett	Knight	McElroy	Reuter	Swenson, D.	Wolf
Davids	Knoblach	Molnau	Rhodes	Swenson, H.	Workman
Dempsey	Koppendrayer	Mulder	Rifenberg	Sykora

Those who voted in the negative were:

Anderson, I.	Farrell	Johnson, A.	Mahon	Osthoff	Solberg
Bakk	Finseth	Johnson, R.	Mares	Otremba	Tomassoni
Bettermann	Folliard	Juhnke	Mariani	Paymar	Trimble
Biernat	Garcia	Kahn	Marko	Pelowski	Tuma
Carlson	Greenfield	Kalis	McCollum	Peterson	Tunheim
Chaudhary	Greiling	Kelso	McGuire	Pugh	Wagenius
Clark	Hasskamp	Kinkel	Milbert	Rest	Wejcman
Dawkins	Hausman	Koskinen	Mullery	Rukavina	Wenzel
Dehler	Hilty	Kubly	Munger	Schumacher	Winter
Delmont	Huntley	Leighton	Murphy	Sekhon	Spk. Carruthers
Dorn	Jaros	Lieder	Olson, E.	Skare
Entenza	Jefferson	Long	Opatz	Skoglund
Evans	Jennings	Luther	Orfield	Slawik

Reuter, Pelowski, Tomassoni, Rukavina, McElroy, Kahn, Solberg, Leppik and Bradley moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 4, line 13, after the period, insert:

"Prior to purchasing any new technology or related equipment, the office shall ensure that all problems related to the year 2000 are resolved."

Page 6, line 14, after the period, insert:

"Prior to purchasing any new technology or related equipment, the system shall ensure that all problems related to the year 2000 are resolved."

Page 8, after line 9, insert:

"Prior to purchasing any new technology or related equipment, the University shall ensure that all problems related to the year 2000 are resolved."

Page 8, line 47, after the period, insert:

"Prior to purchasing any new technology or related equipment, the University shall ensure that all problems related to the year 2000 are resolved."

The motion prevailed and the amendment was adopted.

Tuma and Stang moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 3, delete line 2 and insert"

"100,996,000 109,846,000"

Page 5, line 38, delete "505,778,000" and insert "501,778,000" and delete "525,183,000" and insert "520,183,000"

Page 7, line 56, delete "474,905,000" and insert "470,905,000" and delete "476,692,000" and insert "471,692,000"

Page 15, line 34, strike "50" and insert "48"

Correct the appropriation totals as neceessary

The question was taken on the Tuma and Stang amendment and the roll was called. There were 33 yeas and 101 nays as follows:

Those who voted in the affirmative were:

Anderson, B.	Kielkucki	Lindner	Osskopp	Stang	Van Dellen
Bradley	Knight	McElroy	Osthoff	Sviggum	Weaver
Broecker	Knoblach	Molnau	Paulsen	Swenson, D.	Workman
Commers	Koppendrayer	Mulder	Pawlenty	Swenson, H.
Dehler	Krinkie	Olson, E.	Rifenberg	Tingelstad
Gunther	Kuisle	Olson, M.	Stanek	Tuma

Those who voted in the negative were:

Abrams	Erhardt	Jefferson	Luther	Ozment	Smith
Anderson, I.	Evans	Jennings	Macklin	Paymar	Solberg
Bakk	Farrell	Johnson, A.	Mahon	Pelowski	Sykora
Bettermann	Finseth	Johnson, R.	Mares	Peterson	Tomassoni
Biernat	Folliard	Juhnke	Mariani	Pugh	Tompkins
Bishop	Garcia	Kahn	Marko	Rest	Trimble
Boudreau	Goodno	Kalis	McCollum	Reuter	Tunheim
Carlson	Greenfield	Kelso	McGuire	Rhodes	Vickerman
Chaudhary	Greiling	Kinkel	Milbert	Rostberg	Wagenius
Clark	Haas	Koskinen	Mullery	Rukavina	Wejcman
Daggett	Harder	Kraus	Munger	Schumacher	Wenzel
Davids	Hasskamp	Kubly	Murphy	Seagren	Westfall
Dawkins	Hausman	Larsen	Ness	Seifert	Westrom
Delmont	Hilty	Leighton	Nornes	Sekhon	Winter
Dempsey	Holsten	Leppik	Opatz	Skare	Wolf
Dorn	Huntley	Lieder	Orfield	Skoglund	Spk. Carruthers
Entenza	Jaros	Long	Otremba	Slawik

The motion did not prevail and the amendment was not adopted.

Sviggum moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 9, line 1, delete "48,297,000" and insert "47,697,000"

Page 9, delete lines 20 to 24

Pages 28 to 32, delete sections 2 to 4

Adjust the totals accordingly

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 48 yeas and 86 nays as follows:

Those who voted in the affirmative were:

Abrams	Gunther	Kuisle	Mulder	Rhodes	Sykora
Anderson, B.	Haas	Larsen	Ness	Rifenberg	Tingelstad
Bishop	Holsten	Leppik	Nornes	Seagren	Tompkins
Boudreau	Kalis	Lieder	Olson, E.	Smith	Tunheim
Bradley	Knight	Lindner	Olson, M.	Stanek	Van Dellen
Broecker	Knoblach	Macklin	Paulsen	Sviggum	Vickerman
Commers	Koppendrayer	Mares	Pawlenty	Swenson, D.	Wolf
Erhardt	Krinkie	McElroy	Reuter	Swenson, H.	Workman

Those who voted in the negative were:

Anderson, I.	Evans	Jennings	Mariani	Paymar	Tomassoni
Bakk	Farrell	Johnson, A.	Marko	Pelowski	Trimble
Bettermann	Finseth	Johnson, R.	McCollum	Peterson	Tuma
Journal of the House - 40th Day - Top of Page 2247
Biernat	Folliard	Juhnke	McGuire	Pugh	Wagenius
Carlson	Garcia	Kahn	Milbert	Rest	Weaver
Chaudhary	Goodno	Kelso	Molnau	Rostberg	Wejcman
Clark	Greenfield	Kielkucki	Mullery	Rukavina	Wenzel
Daggett	Greiling	Kinkel	Munger	Schumacher	Westfall
Davids	Harder	Koskinen	Murphy	Seifert	Westrom
Dawkins	Hasskamp	Kraus	Opatz	Sekhon	Winter
Dehler	Hausman	Kubly	Orfield	Skare	Spk. Carruthers
Delmont	Hilty	Leighton	Osskopp	Skoglund
Dempsey	Huntley	Long	Osthoff	Slawik
Dorn	Jaros	Luther	Otremba	Solberg
Entenza	Jefferson	Mahon	Ozment	Stang

The motion did not prevail and the amendment was not adopted.

Rifenberg moved to amend S. F. No. 1888, the unofficial engrossment, as amended, as follows:

Page 2, line 23, delete "126,261,000" and insert "123,735,780" and delete "129,926,000" and insert "127,327,480"

Page 2, line 26, delete "505,778,000" and insert "495,662,440" and delete "523,183,000" and insert "512,719,340"

Page 2, line 28, delete "554,994,000" and insert "543,894,120" and delete "540,681,000" and insert "529,867,380"

Page 2, line 30, delete "1,179,000" and insert "1,155,420" and delete "1,282,000" and insert "1,256,360"

Adjust the totals accordingly

A roll call was requested and properly seconded.

The question was taken on the Rifenberg amendment and the roll was called. There were 41 yeas and 93 nays as follows:

Those who voted in the affirmative were:

Abrams	Davids	Knoblach	Molnau	Reuter	Tompkins
Anderson, B.	Erhardt	Koppendrayer	Mulder	Rifenberg	Van Dellen
Bishop	Haas	Krinkie	Murphy	Seagren	Vickerman
Boudreau	Harder	Kuisle	Olson, M.	Sviggum	Westrom
Bradley	Holsten	Lindner	Osskopp	Swenson, D.	Wolf
Broecker	Kielkucki	Mares	Paulsen	Sykora	Workman
Commers	Knight	McElroy	Pawlenty	Tingelstad