Ness was excused.

Olson, M., was excused until 10:45 a.m. Mahon was excused until 11:40 a.m.

The Chief Clerk proceeded to read the Journals of the preceding days. Cooper moved that further reading of the Journals be suspended and that the Journals be approved as corrected by the Chief Clerk. The motion prevailed.

The following communications were received:

The Honorable Irv Anderson

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 1996 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:

                                    Time and          

S.F.         H.F.   Session Laws    Date ApprovedDate Filed

No.           No.    Chapter No.             1996      1996

2499 351 3:37 p.m. March 20 March 21

2571 356 3:45 p.m. March 20 March 21

Sincerely,

Joan Anderson Growe

Secretary of State

March 21, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Anderson:

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 Files:

H. F. No. 2513, relating to economic development; authorizing port authorities to use certain provisions of the uniform municipal contracting law.

H. F. No. 2630, relating to health; permitting nursing home administrators to be shared under certain circumstances.

H. F. No. 2783, relating to state government; permitting state employees to donate vacation leave for the benefit of a certain state employee.

H. F. No. 2205, relating to agriculture; recreation; providing for the sale of nonoxygenated special recreational fuel; prescribing penalties.

H. F. No. 3070, relating to economic development; modifying the neighborhood revitalization program.

H. F. No. 2672, relating to landlords and tenants; changing the interest rate on security deposits; providing for a legislative review.

H. F. No. 2532, relating to the Minneapolis park and recreation board; providing for the appointment of various employees.

H. F. No. 3013, relating to the environment; modifying provisions relating to the environmental improvement pilot program; adopting federal standards for environmental marketing claims; providing penalties.

H. F. No. 3217, relating to claims against the state; providing for payment of various claims; appropriating money.

H. F. No. 1704, relating to commerce; making various technical and conforming changes related to limited liability companies; regulating investment securities.

H. F. No. 2415, relating to housing; making technical and policy changes to the low-income housing tax credit program; modifying procedures for allocating bonding authority to cities for single-family housing; making technical corrections.

H. F. No. 2340, relating to health professions; providing for the registration of speech-language pathologists and audiologists by the department of health; providing penalties.

Warmest regards,

Arne H. Carlson

Governor

March 22, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Anderson:

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 Files:

H. F. No. 2778, relating to courts; extending the streamlined dissolution procedure pilot project; modifying the duties and powers of a referee for the duration of a family court block calendar pilot program.

H. F. No. 2565, relating to private business, trade, and correspondence schools; modifying licensing standards; clarifying miscellaneous provisions.

Warmest regards,

Arne H. Carlson

Governor

The Honorable Irv Anderson

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 1996 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:

                                    Time and          

S.F.         H.F.   Session Laws    Date ApprovedDate Filed

No.           No.    Chapter No.             1996      1996

2513 349 2:03 p.m. March 21 March 21

2630 352 2:06 p.m. March 21 March 21

2783 353 2:08 p.m. March 21 March 21

2205 354 2:10 p.m. March 21 March 21

3070 355 1:58 p.m. March 21 March 21

2672 357 1:55 p.m. March 21 March 21

2532 358 1:50 p.m. March 21 March 21

3013 359 1:58 p.m. March 21 March 21

3217 360 1:32 p.m. March 21 March 21

1704 361 2:15 p.m. March 21 March 21

2415 362 2:18 p.m. March 21 March 21

2340 363 2:25 p.m. March 21 March 21

1775 364 10:52 a.m. March 22 Marcn 22

2778 365 10:45 a.m. March 22 March 22

2565 366 10:50 a.m. March 22 March 22

2196 367 10:56 a.m. March 22 March 22

Sincerely,

Joan Anderson Growe

Secretary of State

Munger from the Committee on Environment and Natural Resources to which was referred:

S. F. No. 1111, A bill for an act proposing an amendment to the Minnesota Constitution, article 1, by adding a section; affirming the right of citizens to hunt or take game and fish.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CONSTITUTIONAL AMENDMENT PROPOSED.]

An amendment to the Minnesota Constitution, article XIII, by adding a section, is proposed to the people. If the amendment is adopted, the section will read as follows:

Sec. 12. The citizens shall have the privilege to fish, hunt, and take game subject only to restrictions as prescribed by law.

Sec. 2. [SUBMISSION TO VOTERS.]

The proposed amendment must be submitted to the people at the 1996 general election. The question submitted shall be:

"Shall the Minnesota Constitution be amended to affirm the privilege of citizens to fish, hunt, and take game subject only to restrictions as prescribed by law?

Yes .......

No ........" "

Amend the title accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration without further recommendation.

The report was adopted.

The following House Advisory was introduced:

Winter, Peterson, Ness, Bakk and Dawkins introduced:

H. A. No. 31, A proposal to review the anticipated layoffs at Minnesota's technical colleges.

The advisory was referred to the Committee on Education.

The following Conference Committee Reports were received:

A bill for an act relating to education; prekindergarten through grade 12; providing for general education; transportation; special programs; community education; facilities; organization and cooperation; education excellence; other education programs and financing; education policy provisions; libraries; state agencies; technology; conforming amendments; budget reserve and cost management; appropriating money; amending Minnesota Statutes 1994, sections 120.06, subdivision 1; 120.08, subdivision 3; 120.101, by adding a subdivision; 120.17, subdivision 9; 120.1701, subdivision 10; 120.73, subdivision 1; 121.11, subdivision 15; 121.8355, subdivision 1; 121.906; 121.914, subdivision 1; 121.915; 122.32, subdivision 1; 122.535, subdivision 6; 122.895, subdivision 2; 123.35, subdivision 19a; 123.351, subdivision 10; 123.3514, subdivision 9; 123.37, subdivision 1a; 123.38, subdivisions 2 and 2b; 123.932, subdivisions 1b, 1c, 1e, and 11; 123.933, as amended; 123.935, subdivisions 2 and 7; 123.951; 124.09; 124.155, subdivision 1; 124.17, subdivision 1e, and by adding subdivisions; 124.19, subdivision 1; 124.195, subdivision 8; 124.239, subdivision 5, and by adding subdivisions; 124.2711, subdivision 6; 124.2713, subdivision 10; 124.273, by adding subdivisions; 124.311, subdivisions 2, 3, 5, and 7; 124.48, subdivision 3; 124.573, subdivisions 2e, 2f, and 3; 124.86, subdivision 1; 124.91, subdivision 1, and by adding a subdivision; 124.912, subdivision 6; 124.916, subdivision 4; 124A.02, subdivision 25; 124A.029, subdivision 4; 124A.03, subdivisions 2b, 3b, and by adding a subdivision; 124A.0311, subdivision 3; 124A.035, subdivision 4; 124A.036, by adding a subdivision; 124A.22, by adding a subdivision; 124A.26, subdivision 1; 125.05, subdivision 1a, and by adding a subdivision; 125.09, subdivision 4; 125.1385, subdivision 1; 125.185, subdivision 4; 125.60, subdivision 2; 125.611, subdivision 1; 126.151, subdivision 2; 127.29, subdivision 2; 134.34, by adding a subdivision; 136D.23, subdivision 1; 136D.83, subdivision 1; 144.4165; 169.4504, by adding a subdivision; and 256.736, subdivision 11; Minnesota Statutes 1995 Supplement, sections 13.46, subdivision 2; 43A.316, subdivision 2; 65B.132; 120.064, subdivision 9; 120.1045; 120.17, subdivisions 3a, 3b, and 6; 120.1701, subdivision 20; 120.181; 120.74, subdivision 1; 121.11, subdivision 7c; 121.15, subdivision 1; 121.904, subdivisions 4a and 4c; 121.911, subdivision 5;

121.917, subdivision 4; 121.935, subdivision 1a; 123.3514, subdivisions 6 and 6b; 124.155, subdivision 2; 124.17, subdivisions 1 and 1d; 124.195, subdivision 12; 124.223, subdivision 4; 124.225, subdivisions 8l, 14, 16, and 17; 124.227; 124.243, subdivision 2; 124.2445; 124.2455; 124.248, subdivisions 1, 1a, 2, and 3; 124.273, subdivisions 1c and 1d; 124.314, subdivision 2; 124.32, subdivision 12; 124.3201, subdivisions 1, 2, 3, and by adding subdivisions; 124.3202; 124.323, subdivisions 1 and 2; 124.574, subdivisions 2f and 2g; 124.71, subdivision 2; 124.912, subdivision 1; 124.961; 124A.0311, subdivision 2; 124A.22, subdivisions 2a, 10, and 13b; 124A.23, subdivision 4; 124C.74, subdivisions 2 and 3; 125.05, subdivision 1; 126.12, subdivision 2; 126.151, subdivision 1; 126.22, subdivisions 2 and 5; 126.70, subdivision 1; 134.46; 169.01, subdivision 6; 237.065; and 631.40, subdivision 1a; Laws 1993, chapter 224, article 1, section 34; article 12, sections 32, as amended; 39, as amended; and 41, as amended; Laws 1995, First Special Session chapter 3, article 1, sections 61; and 63; article 3, section 19, subdivision 15; article 4, section 29, subdivision 5; article 5, section 20, subdivisions 5 and 6; article 6, section 17, subdivisions 2, 4, and by adding subdivisions; article 8, sections 25, subdivision 2; and 27; article 11, sections 21, subdivision 2; 22; and 23; article 12, sections 8, subdivision 1; and 12, subdivision 7; article 14, section 5; and article 15, section 26, subdivisions 7 and 10; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 123; 124; 124A; 124C; 125; 126; and 136D; repealing Minnesota Statutes 1994, sections 124A.03, subdivision 3b; 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; and 136D.75; Minnesota Statutes 1995 Supplement, sections 120.1045, subdivision 3; 124B.01; 124B.03; and 124B.20, subdivision 1; Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700.

March 20, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2156, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2156 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1995 Supplement, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) the amounts of cash public assistance and relief paid to welfare recipients in this state, including their names, social security numbers, income, addresses, and other data as required, upon request by the department of revenue to administer the property tax refund law, supplemental housing allowance, early refund of refundable tax credits, and the income tax. "Refundable tax credits" means the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and, if the required federal waiver or waivers are granted, the federal earned income tax credit under section 32 of the Internal Revenue Code;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education services office to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate that: (i) the recipient is a fugitive felon, including the grounds for this determination; (ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and (iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c);

(18) data on a child support obligor who is in arrears may be disclosed for purposes of publishing the data pursuant to section 518.575;

(19) data on child support payments made by a child support obligor may be disclosed to the obligee; or

(20) data in the work reporting system may be disclosed under section 256.998, subdivision 7.; or

(21) to the Minnesota department of children, families, and learning for the purpose of matching department of children, families, and learning student records to public assistance records to determine students eligible for free and reduced price meals, meal supplements, and free milk pursuant to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to produce accurate numbers of students receiving aid to families with dependent children as required by section 124.175; and to allocate federal and state resources that are distributed based on income of the student's family.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 2. Minnesota Statutes 1994, section 121.906, is amended to read:

121.906 [EXPENDITURES; REPORTING.]

Subdivision 1. [RECOGNITION.] School district expenditures shall be recognized and reported on the district books of account in accordance with this section.

There shall be fiscal year-end recognition of expenditures and the related offsetting liabilities recorded in each fund in accordance with the uniform financial accounting and reporting standards for Minnesota school districts. Encumbrances outstanding at the end of the fiscal year do not constitute expenditures or liabilities.

Deviations from the principles set forth in this section subdivision shall be evaluated and explained in footnotes to audited financial statements.

Subd. 2. [ACCOUNTING.] Expenditures for any legal purpose of the school district not accounted for elsewhere shall be accounted for in the general fund.

Sec. 3. Minnesota Statutes 1995 Supplement, section 121.911, subdivision 5, is amended to read:

Subd. 5. [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by the commissioner of children, families, and learning, a district may incur a deficit in the capital expenditure fund reserve for operating capital account for a period not to exceed three years to provide money for capital projects. A description of the project and a financial plan to recover the deficit shall be approved by the commissioner prior to the initiation of the project.

Sec. 4. Minnesota Statutes 1995 Supplement, section 121.917, subdivision 4, is amended to read:

Subd. 4. (1) If the net negative undesignated unappropriated operating fund balance in all the funds of a school district, other than statutory operating debt pursuant to section 121.914, capital expenditure, building construction, debt service, trust and agency, and post-secondary vocational technical education funds as defined in section 124A.02, subdivision 25, calculated in accordance with the uniform financial accounting and reporting standards for Minnesota school districts, as of June 30 each year, is more than 2-1/2 percent of the year's expenditure amount, the district shall, prior to September 15 January 31 of the next fiscal year, submit a special operating plan to reduce the district's deficit expenditures to the commissioner of children, families, and learning for approval. The commissioner may also require the district to provide evidence that the district meets and will continue to meet all of the curriculum requirements of the state board.

Notwithstanding any other law to the contrary, a district submitting a special operating plan to the commissioner under this clause which is disapproved by the commissioner shall not receive any aid pursuant to chapters 124 and 124A until a special operating plan of the district is so approved.

(2) A district shall receive aids pending the approval of its special operating plan under clause (1). A district which complies with its approved operating plan shall receive aids as long as the district continues to comply with the approved operating plan.

Sec. 5. Minnesota Statutes 1994, section 124.09, is amended to read:

124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.]

The school endowment fund shall be apportioned semiannually by the commissioner, on the first Monday in March and October September in each year, to districts whose schools have been in session at least nine months. The apportionment shall be in proportion to the number of pupils in average daily membership during the preceding year; provided, that apportionment shall not be paid to a district for pupils for whom tuition is received by the district.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.155, subdivision 2, is amended to read:

Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in subdivision 1 shall be used to adjust the following state aids and credits in the order listed:

(1) general education aid authorized in sections 124A.23 and 124B.20;

(2) secondary vocational aid authorized in section 124.573;

(3) special education aid authorized in section sections 124.32, 124.3201, and 124.3202;

(4) secondary vocational aid for children with a disability authorized in section 124.574;

(5) aid for pupils of limited English proficiency authorized in section 124.273;

(6) transportation aid authorized in section 124.225;

(7) community education programs aid authorized in section 124.2713;

(8) adult education aid authorized in section 124.26;

(9) early childhood family education aid authorized in section 124.2711;

(10) capital expenditure aid authorized in sections 124.243, 124.244, and 124.83;

(11) school district cooperation aid authorized in section 124.2727;

(12) assurance of mastery aid according to section 124.311;

(13) homestead and agricultural credit aid, disparity credit and aid, and changes to credits for prior year adjustments according to section 273.1398, subdivisions 2, 3, 4, and 7;

(14) attached machinery aid authorized in section 273.138, subdivision 3;

(15) alternative delivery aid authorized in section 124.322;

(16) special education equalization aid authorized in section 124.321;

(17) special education excess cost aid authorized in section 124.323;

(18) learning readiness aid authorized in section 124.2615; and

(19) cooperation-combination aid authorized in section 124.2725; and

(20) district cooperation revenue aid authorized in section 124.2727.

(b) The commissioner of children, families, and learning shall schedule the timing of the adjustments to state aids and credits specified in subdivision 1, as close to the end of the fiscal year as possible.

Sec. 7. Minnesota Statutes 1994, section 124.17, subdivision 1e, is amended to read:

Subd. 1e. [AFDC PUPIL COUNTS.] AFDC pupil counts and average daily membership for subdivisions 1b and 1d shall be determined according to this subdivision:

(a) For districts where the number of pupils from families receiving aid to families with dependent children has increased over the preceding year for each of the two previous years, the number of pupils enrolled in the district from families receiving aid to families with dependent children shall be those counted on October 1 of the previous school year. The average daily membership used shall be from the previous school year.

(b) For districts that do not meet the requirement of paragraph (a), the number of pupils enrolled in the district from families receiving aid to families with dependent children shall be the average number of pupils on October 1 of the second previous school year and October 1 of the previous school year. The average daily membership used shall be the average number enrolled in the previous school year and the second previous school year.

(c) Notwithstanding paragraphs (a) and (b), for charter schools in the first three years of operation, the number of pupils enrolled from families receiving AFDC shall be those counted on October 1 of the current school year. The average daily membership used shall be from the current school year.

Sec. 8. Minnesota Statutes 1994, section 124.17, is amended by adding a subdivision to read:

Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is enrolled in a learning year program according to section 121.585, an area learning center according to 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.

(ii) General education revenue for a pupil in an approved alternative program without an independent study component must be prorated for a pupil participating for less than a full year, or its equivalent.

(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 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. 9. Minnesota Statutes 1994, section 124.195, subdivision 8, is amended to read:

Subd. 8. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One hundred percent of the aid for the last fiscal year must be paid for the following aids: special education special pupil aid according to section 124.32, subdivision 6; special education summer school aid, according to section 124.32, subdivision 10, for the previous fiscal year must be paid in the current year.

Sec. 10. Minnesota Statutes 1995 Supplement, section 124.195, subdivision 12, is amended to read:

Subd. 12. [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE CHANGE.] (a) The department of children, families, and learning shall reduce general education aid or any other aid paid in a fiscal year directly to school districts, intermediate school districts, education districts, education cooperative service units, special education cooperatives, secondary vocational cooperatives, regional management information centers, or another. Any district or cooperative unit providing elementary or secondary education services that is prohibited from receiving direct state aids by section 124.193 or 124.32, subdivision 12, is exempt from this reduction. The reduction shall equal the following percent of salaries paid in a fiscal year by the entity to members of the teachers retirement association established in chapter 354. However, salaries paid to members of the association who are employed by a technical college shall be excluded from this calculation:

(1) in fiscal year 1991, 0.84 percent,

(2) in fiscal year 1992 and later years, the greater of

(i) zero, or

(ii) 4.48 percent less the additional employer contribution rate established under section 354.42, subdivision 5.

(b) In fiscal year 1991, this reduction is estimated to equal $14,260,000.

Sec. 11. [124.2613] [FIRST-GRADE PREPAREDNESS PROGRAM.]

Subdivision 1. [PURPOSE.] The purposes of the first-grade preparedness program are to ensure that every child has the opportunity before first grade to develop the skills and abilities necessary to read and succeed in school and to reduce the underlying causes that create a need for compensatory revenue.

Subd. 2. [QUALIFYING DISTRICT.] A school district may receive first-grade preparedness revenue for qualifying school sites if, consistent with subdivision 5, the school board approves a resolution requiring the district to provide services to all children located in a qualifying school site attendance area.

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. 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.

(b) The commissioner shall establish a process and timelines to qualify school sites for the next school year. School sites must be qualified in each geographic area from the list of ranked sites until the estimated revenue available for this program has been allocated. The total estimated revenue of $3,500,000 must be distributed to qualified school sites in each geographic area as follows: 25 percent for Minneapolis sites, 25 percent for St. Paul sites, 25 percent for suburban Twin Cities sites, and 25 percent for greater Minnesota.

Subd. 4. [PROGRAM.] A qualifying school site must develop its first-grade preparedness program in collaboration with other providers of school readiness and child development services. A school site must either offer a full-day kindergarten program to participating children who are five years of age or older for the full school day every day or a half-day program for participating children who are four years old. Full-day and half-day kindergarten program providers must ensure that the program they provide supplements existing school readiness and child development programs and complements the services provided with compensatory revenue. Where possible, individuals receiving assistance under a family assistance plan can meet the work activity requirement of the plan by participating in a first-grade preparedness program as a volunteer.

Subd. 5. [EXTENDED DAY REQUIREMENTS.] The board of a qualifying school district must develop and approve a plan to provide extended day services to serve as many children as possible. To accept children whose families participate in child care assistance programs under section 256H.03 or 256H.05, and to meet the requirements of section 245A.03, subdivision 2, the board must formally approve the first-grade preparedness program. All revenue received under subdivision 6 must be allocated to the qualifying school sites within the district.

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.

Subd. 7. [EVALUATION.] The commissioner of children, families, and learning, in consultation with representatives of the state board of teaching, early childhood teachers, elementary school classroom teachers, and teacher educators, shall develop an evaluation for qualifying school sites to use in documenting results. The evaluation must use empirical and qualitative methods to gather information on the following: progress towards ensuring that every child entering the first grade has the knowledge and skills necessary to succeed in school; student readiness for first grade; an assessment of enrolling students by their teacher, and measures of parental satisfaction and parental involvement. The commissioner shall assist a school site with its evaluation at the request of the site.

Subd. 8. [EXPIRATION.] This section applies for fiscal years 1997, 1998, and 1999, and expires June 30, 1999.

Sec. 12. Minnesota Statutes 1995 Supplement, section 124.918, subdivision 2, is amended to read:

Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By September 30 October 7 of each year each district shall notify the commissioner of children, families, and learning of the proposed levies in compliance with the levy limitations of this chapter and chapters 124A, 124B, and 136D. By January 15 of each year each district shall notify the commissioner of children, families, and learning of the final levies certified. The commissioner of children, families, and learning shall prescribe the form of these notifications and may request any additional information necessary to compute certified levy amounts.

Sec. 13. Minnesota Statutes 1994, section 124A.02, subdivision 25, is amended to read:

Subd. 25. [NET UNAPPROPRIATED OPERATING FUND BALANCE.] "Net unappropriated operating fund balance" means the sum of the fund balances in the general, transportation, food service, and community service funds minus the balances reserved for statutory operating debt reduction, bus purchase, severance pay, taconite, reemployment insurance, maintenance levy reduction, operating capital, disabled access, health and safety, and encumbrances, computed as of June 30 each year.

Sec. 14. Minnesota Statutes 1994, section 124A.029, subdivision 4, is amended to read:

Subd. 4. [PER PUPIL REVENUE OPTION CONVERSION.] A district may, by school board resolution, request that the department convert the levy authority under section 124.912, subdivisions 2 and 3, or its current referendum revenue, excluding authority based on a dollar amount, authorized before July 1, 1993, to an allowance per pupil. The district must adopt a resolution and submit a copy of the resolution to the department by July 1, 1993. (a) The department shall convert a each district's referendum revenue authority for fiscal year 1995 2002 and later years to an allowance per pupil unit as follows: the revenue allowance equals the amount determined by dividing the district's maximum revenue under section 124A.03 or 124.912, subdivisions 2 and 3, for fiscal year 1994 2001 by the district's 1993-1994 2000-2001 actual pupil units. A district's maximum revenue for all later years for which the revenue is authorized equals the revenue allowance times the district's actual pupil units for that year. If a district has referendum authority under section 124A.03 and levy authority under section 124.912, subdivisions 2 and 3, and the district requests that each be converted, the department shall convert separate revenue allowances for each. However, if a district's referendum revenue is limited to a dollar amount, the maximum revenue under section 124A.03 must not exceed that dollar amount. If the referendum authority of a district is converted according to this subdivision, and the question on the referendum ballot did not provide for an expiration date, the authority shall expire according to section 124A.0311.

(b) The referendum allowance reduction shall be applied first to the authority with the earliest expiration date.

Sec. 15. Minnesota Statutes 1995 Supplement, section 124A.03, subdivision 2, is amended to read:

Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized by section 124A.22, subdivision 1, may be increased in the amount approved by the voters of the district at a referendum called for the purpose. The referendum may be called by the school board or shall be called by the school board upon written petition of qualified voters of the district. The referendum shall be conducted one or two calendar years before the increased levy authority, if approved, first becomes payable. Only one election to approve an increase may be held in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the referendum must be held on the first Tuesday after the first Monday in November. The ballot shall state the maximum amount of the increased revenue per actual pupil unit, the estimated referendum tax rate as a percentage of market value in the first year it is to be levied, and that the revenue shall be used to finance school operations. The ballot may state a schedule, determined by the board, of increased revenue per actual pupil units that differs from year to year over the number of years for which the increased revenue is authorized. If the ballot contains a schedule showing different amounts, it shall also indicate the

estimated referendum tax rate as a percent of market value for the amount specified for the first year and for the maximum amount specified in the schedule. The ballot may state that existing referendum levy authority is expiring. In this case, the ballot may also compare the proposed levy authority to the existing expiring levy authority, and express the proposed increase as the amount, if any, over the expiring referendum levy authority. The ballot shall designate the specific number of years, not to exceed ten, for which the referendum authorization shall apply. The notice required under section 275.60 may be modified to read, in cases of renewing existing levies:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."

The ballot may contain a textual portion with the information required in this subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of ........., School District No. .., be approved?"

If approved, an amount equal to the approved revenue per actual pupil unit times the actual pupil units for the school year beginning in the year after the levy is certified shall be authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the district at a subsequent referendum.

(b) The school board shall prepare and deliver by first class mail at least 15 days but no more than 30 days prior to the day of the referendum to each taxpayer a notice of the referendum and the proposed revenue increase. The school board need not mail more than one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision, owners shall be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer shall be deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of tax increase in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring and project the anticipated amount of increase over the existing referendum levy in the first year, if any, in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.

The notice must include the following statement: "Passage of this referendum will result in an increase in your property taxes." However, in cases of renewing existing levies, the notice may include the following statement: "Passage of this referendum may result in an increase in your property taxes."

(c) A referendum on the question of revoking or reducing the increased revenue amount authorized pursuant to paragraph (a) may be called by the school board and shall be called by the school board upon the written petition of qualified voters of the district. A referendum to revoke or reduce the levy amount must be based upon the dollar amount, local tax rate, or amount per actual pupil unit, that was stated to be the basis for the initial authorization. Revenue approved by the voters of the district pursuant to paragraph (a) must be received at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one revocation or reduction referendum may be held to revoke or reduce referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) shall be effective if signed by a number of qualified voters in excess of 15 percent of the registered voters of the school district on the day the petition is filed with the school board. A referendum invoked by petition shall be held on the date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this subdivision.

(f) At least 15 days prior to the day of the referendum, the district shall submit a copy of the notice required under paragraph (b) to the commissioner of children, families, and learning. Within 15 days after the results of the referendum have been certified by the school board, or in the case of a recount, the certification of the results of the recount by the canvassing board, the district shall notify the commissioner of children, families, and learning of the results of the referendum.

(g) Except for a referendum held under subdivision 2b, any referendum under this section held on a day other than the first Tuesday after the first Monday in November must be conducted by mail in accordance with section 204B.46. Notwithstanding paragraph (b) to the contrary, in the case of a referendum conducted by mail under this paragraph, the notice required by paragraph (b) shall be prepared and delivered by first class mail at least 20 days before the referendum.

Sec. 16. Minnesota Statutes 1994, section 124A.03, subdivision 2b, is amended to read:

Subd. 2b. [REFERENDUM DATE.] In addition to the referenda allowed in subdivision 2, clause (a), the commissioner may authorize a referendum for a different day.

(a) The commissioner may grant authority to a district to hold a referendum on a different day if the district is in statutory operating debt and has an approved plan or has received an extension from the department to file a plan to eliminate the statutory operating debt.

(b) The commissioner may grant authority for a district to hold a referendum on a different day if: (1) the district will conduct a bond election under chapter 475 on that same day; and (2) the proceeds of the referendum will provide only additional operating revenue necessitated by the facility for which bonding authority is sought. The commissioner may only grant authority under this paragraph if the district demonstrates to the commissioner's satisfaction that the district's ability to operate the new facility will be significantly affected if the operating referendum is not conducted until the November general election. Authority under this paragraph expires November 30, 1998.

(c) The commissioner must approve, deny, or modify each district's request for a referendum levy on a different day within 60 days of receiving the request from a district.

Sec. 17. Minnesota Statutes 1994, section 124A.03, subdivision 3b, is amended to read:

Subd. 3b. [FISCAL YEAR 1997 REFERENDUM ALLOWANCE REDUCTION.] For fiscal year 1997, a district's referendum allowance under subdivision 1c is reduced by the amounts calculated in paragraphs (a), (b), (c), and (d).

(a) The referendum allowance reduction equals the amount by which a district's supplemental revenue reduction exceeds the district's supplemental revenue allowance for fiscal year 1993.

(b) Notwithstanding paragraph (a), if a district's initial referendum allowance is less than ten percent of the formula allowance for that year, the reduction equals the lesser of (1) an amount equal to $100, or (2) the amount calculated in paragraph (a).

(c) Notwithstanding paragraph (a) or (b), a school district's referendum allowance reduction equals (1) an amount equal to $100, times (2) one minus the ratio of 20 percent of the formula allowance minus the district's initial referendum allowance limit to 20 percent of the formula allowance for that year if:

(i) the district's adjusted net tax capacity for assessment year 1992 per actual pupil unit for fiscal year 1995 is less than $3,000;

(ii) the district's net unappropriated operating fund balance as of June 30, 1993, divided by the actual pupil units for fiscal year 1995 is less than $200;

(iii) the district's supplemental revenue allowance for fiscal year 1993 is equal to zero; and

(iv) the district's initial referendum revenue authority for the current year divided by the district's net tax capacity for assessment year 1992 is greater than ten percent.

(d) Notwithstanding paragraph (a), (b), or (c), the referendum revenue reduction for a newly reorganized district is computed as follows:

(1) for a newly reorganized district created effective July 1, 1994, the referendum revenue reduction equals the lesser of the amount calculated for the combined district under paragraph (a), (b), or (c), or the sum of the amounts by which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the districts as if they were still in existence for fiscal year 1995; or

(2) for a newly reorganized district created after July 1, 1994, the referendum revenue reduction equals the lesser of the amount calculated for the combined district under paragraph (a), (b), or (c), or the sum of the amounts by which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the year preceding the year of reorganization.

Sec. 18. Minnesota Statutes 1994, section 124A.03, is amended by adding a subdivision to read:

Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal year 1998 and later, a district's referendum allowance for referendum authority under subdivision 1c is reduced as provided in this subdivision.

(a) For referendum revenue authority approved before June 1, 1996, and effective for fiscal year 1997, the reduction equals the amount of the reduction computed for fiscal year 1997 under subdivision 3b.

(b) For referendum revenue authority approved before June 1, 1996, and effective beginning in fiscal year 1998, the reduction equals the amount of the reduction computed for fiscal year 1998 under subdivision 3b.

(c) For referendum revenue authority approved after May 31, 1996, there is no reduction.

(d) For districts with more than one referendum authority, the reduction shall be computed separately for each authority. The reduction shall be applied first to authorities levied against tax capacity, and then to authorities levied against referendum market value. For districts with more than one authority levied against net tax capacity or against referendum market value, the referendum allowance reduction shall be applied first to the authority with the earliest expiration date.

(e) For a newly reorganized district created after July 1, 1996, the referendum revenue reduction equals the lesser of the amount calculated for the combined district, or the sum of the amounts by which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the year preceding the year of reorganization.

Sec. 19. Minnesota Statutes 1995 Supplement, section 124A.0311, subdivision 2, is amended to read:

Subd. 2. [CONVERSION TO MARKET VALUE.] (a) Prior to June 1, 1997, by June 1 of each year, a school board may, by resolution of a majority of its board, convert any remaining portion of its referendum authority under section 124A.03, subdivision 2, that is authorized to be levied against net tax capacity to referendum authority that is authorized to be levied against the referendum market value of all taxable property located within the school district. At the option of the school board, any remaining portion of its referendum authority may be converted in two or more parts at separate times. The referendum authority may be converted from net tax capacity to referendum market value according to a schedule adopted by resolution of the school board for years prior to taxes payable in 2001, provided that, for taxes payable in 2001 and later, the full amount of the referendum authority is levied against referendum market value. The board must notify the commissioner of children, families, and learning of the amount of referendum authority that has been converted from net tax capacity to referendum market value, if any, by June 15, of each year. The maximum length of a referendum converted under this paragraph is ten years.

(b) For referendum levy amounts converted between June 1, 1997, and June 1, 1998, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to seven years.

(c) For referendum levy amounts converted between June 1, 1998, and June 1, 1999, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to six years.

(d) For referendum levy amounts converted between June 1, 1999, and June 1, 2000, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to five years.

Sec. 20. Minnesota Statutes 1994, section 124A.0311, subdivision 3, is amended to read:

Subd. 3. [ALTERNATIVE CONVERSION.] A school district that has a referendum that is levied against net tax capacity that expires before taxes payable in 1998 may convert its referendum authority according to this subdivision. In the payable year prior to the year of expiration, the school board may authorize a referendum under section 124A.03. Notwithstanding any other law to the contrary, the district may propose, and if approved by its electors, have its referendum authority reauthorized in part on tax capacity and in part on referendum market value according to a schedule adopted by resolution of the school board for years prior to taxes payable in 2001, provided

that, for taxes payable in 2001 and later, the full amount of referendum authority is levied against referendum market value. If the full amount of the referendum is reauthorized on referendum market value prior to taxes payable in 1998, the referendum may extend for ten years. If the referendum becomes fully reauthorized on referendum market value for a later year, the referendum shall not extend for more than the maximum number of years allowed under subdivision 2.

Sec. 21. Minnesota Statutes 1994, section 124A.035, subdivision 4, is amended to read:

Subd. 4. [COUNTY APPORTIONMENT DEDUCTION.] Each year the amount of money apportioned to a school district for that year pursuant to section 124.10, subdivision 2, excluding any district where the general education levy is determined according to section 124A.23, subdivision 3, shall be deducted from the general education aid earned by that district for the same year or from aid earned from other state sources.

Sec. 22. Minnesota Statutes 1994, section 124A.036, is amended by adding a subdivision 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 general education revenue exclusive of compensatory revenue.

(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. 23. Minnesota Statutes 1995 Supplement, 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 in paragraph (b) for a district that operates a program under section 121.585, is increased by an amount equal to $15 times the number of actual pupil units at the site where the program is implemented.

Sec. 24. Minnesota Statutes 1994, section 124A.22, is amended by adding a subdivision to read:

Subd. 11a. [USES OF REVENUE.] Except as otherwise prohibited by law, a district may spend general fund money for capital purposes.

Sec. 25. Minnesota Statutes 1995 Supplement, 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 section 124A.22, 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) for fiscal year 1997, the reduction is equal to .9 times the amount initially determined;

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

(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.

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

Sec. 26. Minnesota Statutes 1995 Supplement, section 124A.23, subdivision 4, is amended to read:

Subd. 4. [GENERAL EDUCATION AID.] A district's general education aid is the sum of the following amounts:

(1) the product of (i) the difference between the general education revenue, excluding transition revenue and supplemental revenue, and the general education levy, times (ii) the ratio of the actual amount levied to the permitted levy;

(2) transition aid according to section 124A.22, subdivision 13e;

(3) supplemental aid according to section 124.214, subdivision 2;

(4) shared time aid according to section 124A.02, subdivision 21; and

(5) referendum aid according to section 124A.03.

Sec. 27. Minnesota Statutes 1994, section 124A.28, subdivision 1, is amended to read:

Subdivision 1. [USE OF THE REVENUE.] The compensatory education revenue under section 124A.22, subdivision 3, may be used to provide eligible services to eligible pupils according to section 124.311, subdivisions 3 and 4. It also may must be used to meet the educational needs of pupils whose educational achievement is below the level that is appropriate for pupils of their age. These needs may be met by providing at least some of the following:

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

(2) remedial instruction in reading, language arts, and mathematics to improve the achievement level of these pupils;

(2) (3) additional teachers and teacher aides to provide more individualized instruction to these pupils;

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

(4) (5) in-service education for teachers, teacher aides, principals, and other personnel to improve their ability to recognize these pupils and provide appropriate responses to the pupils' needs;

(5) (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;

(6) (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; and

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

(9) all day kindergarten;

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

(11) other methods to increase achievement, as needed.

Sec. 28. Laws 1993, chapter 224, article 1, section 34, subdivision 2, is amended to read:

Subd. 2. [AID ADJUSTMENT.] For fiscal year 1994 1996 only, the department of education children, families, and learning shall include in the general education aid calculation for independent school district No. 504, Slayton, or its successor district, and independent school district No. 918, Chandler-Lake Wilson, or its successor district, the sum of the amounts by which the district's general education aid was reduced for fiscal years 1992 and 1993 year 1994 under Minnesota Statutes, section 124A.26.

Sec. 29. Laws 1993, chapter 224, article 1, section 34, subdivision 3, is amended to read:

Subd. 3. [LEVY ADJUSTMENT.] For 1993 1996 taxes payable in 1994 1997 only, independent school district No. 504, Slayton, or its successor district, and independent school district No. 918, Chandler-Lake Wilson, or its successor district, may levy an amount not to exceed the sum of the levy reductions for fiscal years 1992 and 1993 year 1994 resulting from the general education revenue fund balance reduction under Minnesota Statutes, section 124A.26.

Sec. 30. Laws 1995, First Special Session chapter 3, article 1, section 63, subdivision 2, is amended to read:

Subd. 2. [REVENUE FOR FISCAL YEAR 1997.] Minnesota Statutes 1994, sections 121.912, subdivision 8; 124.243; 124.244; 124A.26; and 126.019, are repealed effective for revenue for fiscal year 1997.

Sec. 31. Laws 1995, First Special Session, chapter 3, article 15, section 25, is amended to read:

Sec. 25. [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.]

(a) For the computation of homestead and agricultural aid for taxes payable in 1996, the commissioner of revenue shall permanently reduce a school district's homestead and agricultural aid by an amount equal to the lesser of: (1) 25 percent of the amount of the district's homestead and agricultural aid for calendar year 1995; or (2) an amount equal to one percent times the district's adjusted net tax capacity for assessment year 1994.

(b) Prior to For the computation of homestead and agricultural aid for taxes payable in 1997, the commissioner of revenue shall permanently reduce the school district's homestead and agricultural aid by an amount equal to the lesser of: (1) 50 25 percent of the amount of the district's homestead and agricultural aid for calendar year 1995; or (2) an amount equal to one percent times the district's adjusted net tax capacity for assessment year 1994.

(c) Prior to For the computation of homestead and agricultural aid for taxes payable in 1998, the commissioner of revenue shall permanently reduce a school district's homestead and agricultural aid by an amount equal to the lesser of: (1) 75 25 percent of the amount of the district's homestead and agricultural aid for calendar year 1995; or (2) an amount equal to one percent times the district's adjusted net tax capacity for assessment year 1994.

(d) Prior to For the computation of homestead and agricultural aid for taxes payable in 1999, the commissioner of revenue shall permanently reduce a school district's homestead and agricultural aid by an amount equal to the lesser of: (1) 25 percent of the amount of the district's homestead and agricultural aid for calendar year 1995; or (2) an amount equal to one percent times the district's adjusted net tax capacity for assessment year 1994.

(e) Prior to For the computation of homestead and agricultural aid for taxes payable in 2000 and later years, the commissioner of revenue shall permanently reduce a school district's homestead and agricultural aid each year by an amount equal to the lesser of: (1) any remaining amount of the district's homestead and agricultural aid; or (2) an amount equal to one percent times the district's adjusted net tax capacity for assessment year 1994.

Sec. 32. [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; DISSOLUTION.]

Effective July 1, 1996, the transportation fund and the capital expenditure fund of each school district or other unit reporting under Minnesota Statutes, section 121.908, is dissolved. The June 30, 1996, balance of the unreserved transportation fund shall be transferred to the general fund unreserved balance. The June 30, 1996, balance of the reserved for bus purchase account shall be transferred to the general fund reserved for bus purchase account. The June 30, 1996, balance of the capital expenditure facilities account and capital expenditure equipment account shall be transferred to the general fund reserved for operating capital account. The June 30, 1996, balance of the reserved for health and safety account shall be transferred to the general fund reserved for health and safety account. The June 30, 1996, balance of the reserved for disabled accessibility account shall be transferred to the general fund reserved for disabled accessibility account. Effective July 1, 1996, all revenues and expenditures formerly accounted for in the capital expenditure fund and the transportation fund shall be accounted for in the general fund.

Sec. 33. [REFERENDUM AUTHORITY; PARK RAPIDS.]

Subdivision 1. [REVENUE.] Notwithstanding the reduction required by Minnesota Statutes, section 124A.03, subdivision 3b, the referendum revenue allowance for independent school district No. 309, Park Rapids, is $315 per pupil unit. This referendum authorization is available for the number of years specified on the district's referendum ballot held during June 1995.

Subd. 2. [LEVY RECLASSIFICATION.] Independent school district No. 309, Park Rapids, may reclassify as payable 1996 referendum levy other payable 1996 levies. The amount reclassified may not exceed the difference between the levy authority authorized in subdivision 1 and the amount of referendum levy certified by the district for taxes payable in 1996. Any reclassified levy is not subject to the market value requirement in Minnesota Statutes, section 124A.03, subdivision 2a.

Sec. 34. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT.] 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. [FIRST-GRADE PREPAREDNESS PROGRAM.]

$3,500,000 ..... 1997

For grants for first-grade preparedness programs under section 11. These grants represent 100 percent of the appropriations entitlement for 1997.

Subd. 3. [PEQUOT LAKES.]

$ 79,000 ..... 1997

For a grant to independent school district No. 186, Pequot Lakes, for the purpose of reducing the district's 1996 payable 1997 property taxes. The commissioner must reduce the district's 1996 payable 1997 property taxes by this amount.

Sec. 35. [REPEALER.]

Laws 1993, chapter 224, article 1, section 34, subdivision 1, is repealed. Section 8 is repealed July 1, 1999.

Sec. 36. [EFFECTIVE DATE.]

Sections 1, 6, 7, 9, 10, 16, 20, 21, 28, 29, and 32 are effective the day following final enactment.

Section 4 is effective for fiscal year 1996 and thereafter.

Section 33 is effective for fiscal year 1997 and later years.

Section 1. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 6, is amended to read:

Subd. 6. [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] The responsibility for special instruction and services for a child with a disability temporarily placed in another district for care and treatment shall be determined in the following manner:

(a) The school district of residence of a child shall be the district in which the child's parent resides, if living, or the child's guardian, or the district designated by the commissioner of children, families, and learning if neither parent nor guardian is living within the state.

(b) When a child is temporarily placed for care and treatment in a day program located in another district and the child continues to live within the district of residence during the care and treatment, the district of residence is responsible for providing transportation and an appropriate educational program for the child. The district may provide the educational program at a school within the district of residence, at the child's residence, or in the district in which the day treatment center is located by paying tuition to that district.

(c) When a child is temporarily placed in a residential program for care and treatment, the nonresident district in which the child is placed is responsible for providing an appropriate educational program for the child and necessary transportation within the district while the child is attending the educational program; and shall bill the district of the child's residence for the actual cost of providing the program, as outlined in subdivision 4, except that the board, lodging, and treatment costs incurred in behalf of a child with a disability placed outside of the school district of residence by the commissioner of human services or the commissioner of corrections or their agents, for reasons other than for making provision for the child's special educational needs shall not become the responsibility of either the district providing the instruction or the district of the child's residence.

(d) The district of residence shall pay tuition and other program costs, not including transportation costs, to the district providing the instruction and services. The district of residence may claim general education aid for the child as provided by law. Transportation costs shall be paid by the district responsible for providing the transportation and the state shall pay transportation aid to that district.

Sec. 2. Minnesota Statutes 1994, section 120.17, subdivision 9, is amended to read:

Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district who is eligible for special instruction and services pursuant to this section shall be denied provision of this instruction and service on a shared time basis because of attendance at a nonpublic school defined in section 123.932, subdivision 3. If a resident pupil with a disability attends a nonpublic school located within the district of residence, the district shall provide necessary transportation for that pupil within the district between the nonpublic school and the educational facility where special instruction and services are provided on a shared time basis. If a resident pupil with a disability attends a nonpublic school located in a another district contiguous to the district of residence and if no agreement exists pursuant to section 124A.034, subdivision 1 or 1a, for the provision of special instruction and services on a shared time basis to that pupil by the district of attendance and where the special instruction and services are provided within the district of residence, the district of residence shall provide necessary transportation for that pupil between the boundary of the district of residence and the educational facility where the special instruction and services are provided within the district of residence. The district of residence may provide necessary transportation for that pupil between its boundary and the nonpublic school attended, but the nonpublic school shall pay the cost of transportation provided outside the district boundary.

Sec. 3. Minnesota Statutes 1995 Supplement, section 120.181, is amended to read:

120.181 [PLACEMENT OF NONHANDICAPPED 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.

(a) The school district of residence of the pupil shall be the district in which the pupil's parent or guardian resides or the district designated by the commissioner of children, families, and learning if neither parent nor guardian is living within the state.

(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 within that district 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 handicapped disabled transportation category.

Sec. 4. Minnesota Statutes 1994, section 120.73, subdivision 1, is amended to read:

Subdivision 1. A school board is authorized to require payment of fees in the following areas:

(a) in any program where the resultant product, in excess of minimum requirements and at the pupil's option, becomes the personal property of the pupil;

(b) admission fees or charges for extra curricular activities, where attendance is optional;

(c) a security deposit for the return of materials, supplies, or equipment;

(d) personal physical education and athletic equipment and apparel, although any pupil may personally provide it if it meets reasonable requirements and standards relating to health and safety established by the school board;

(e) items of personal use or products which a student has an option to purchase such as student publications, class rings, annuals, and graduation announcements;

(f) fees specifically permitted by any other statute, including but not limited to section 171.04, subdivision 1, clause (1);

(g) field trips considered supplementary to a district educational program;

(h) any authorized voluntary student health and accident benefit plan;

(i) for the use of musical instruments owned or rented by the district, a reasonable rental fee not to exceed either the rental cost to the district or the annual depreciation plus the actual annual maintenance cost for each instrument;

(j) transportation of pupils to and from extra curricular activities conducted at locations other than school, where attendance is optional;

(k) transportation of pupils to and from school for which aid for fiscal year 1996 is not authorized under Minnesota Statutes 1994, section 124.223, subdivision 1, and for which levy for fiscal year 1996 is not authorized under Minnesota Statutes 1994, section 124.226, subdivision 5, if a district charging fees for transportation of pupils establishes guidelines for that transportation to ensure that no pupil is denied transportation solely because of inability to pay;

(l) motorcycle classroom education courses conducted outside of regular school hours; provided the charge shall not exceed the actual cost of these courses to the school district;

(m) transportation to and from post-secondary institutions for pupils enrolled under the post-secondary enrollment options program under section 123.39, subdivision 16. Fees collected for this service must be reasonable and shall be used to reduce the cost of operating the route. Families who qualify for mileage reimbursement under section 123.3514, subdivision 8, may use their state mileage reimbursement to pay this fee. If no fee is charged, districts shall allocate costs based on the number of pupils riding the route.

Sec. 5. Minnesota Statutes 1995 Supplement, section 120.74, subdivision 1, is amended to read:

Subdivision 1. (a) A school board is not authorized to charge fees in the following areas:

(1) textbooks, workbooks, art materials, laboratory supplies, towels;

(2) supplies necessary for participation in any instructional course except as authorized in sections 120.73 and 120.75;

(3) field trips which are required as a part of a basic education program or course;

(4) graduation caps, gowns, any specific form of dress necessary for any educational program, and diplomas;

(5) instructional costs for necessary school personnel employed in any course or educational program required for graduation;

(6) library books required to be utilized for any educational course or program;

(7) admission fees, dues, or fees for any activity the pupil is required to attend;

(8) any admission or examination cost for any required educational course or program;

(9) locker rentals;

(10) transportation of pupils (i) for which state transportation aid for fiscal year 1996 is authorized pursuant to Minnesota Statutes 1994, section 124.223 or (ii) for which a levy for fiscal year 1996 is authorized under Minnesota Statutes 1994, section 124.226, subdivision 5.

(b) Notwithstanding paragraph (a), clauses (1) and (6), a school board may charge fees for textbooks, workbooks, and library books, lost or destroyed by students. The board must annually notify parents or guardians and students about its policy to charge a fee under this paragraph.

Sec. 6. Minnesota Statutes 1994, section 123.39, subdivision 8b, is amended to read:

Subd. 8b. School districts may use school district owned or contractor operated school buses to provide transportation along regular school bus routes on a space available basis for senior citizens who are 62 years of age or older any person, provided that this use of a bus does not interfere with the transportation of pupils to and from school or other authorized transportation of pupils. In all cases, the total additional cost of providing these services, as determined by sound accounting procedures, shall be paid by charges made against those using these services or some third-party payor. In no case shall the additional cost of this transportation be paid by the school district.

The provisions of section 65B.47, subdivision 4, shall be applicable to senior citizens any person being transported pursuant to this subdivision.

Sec. 7. Minnesota Statutes 1995 Supplement, section 123.7991, subdivision 2, is amended to read:

Subd. 2. [STUDENT TRAINING.] (a) Each school district shall provide public school pupils enrolled in grades kindergarten through 10 with age-appropriate school bus safety training. The training shall be results-oriented and shall consist of both classroom instruction and practical training using a school bus. Upon completing the training, a student shall be able to demonstrate knowledge and understanding of at least the following competencies and concepts:

(1) transportation by school bus is a privilege and not a right;

(2) district policies for student conduct and school bus safety;

(3) appropriate conduct while on the school bus;

(4) the danger zones surrounding a school bus;

(5) procedures for safely boarding and leaving a school bus;

(6) procedures for safe street or road crossing; and

(7) school bus evacuation and other emergency procedures.

(b) Each nonpublic school located within the district shall provide all nonpublic school pupils enrolled in grades kindergarten through 10 who are transported by school bus at public expense and attend school within the district's boundaries with training as required in paragraph (a). The school district shall make a bus available for the practical training if the district transports the nonpublic students. Each nonpublic school shall provide the instruction.

(c) Student school bus safety training shall commence during school bus safety week. All students enrolled in grades kindergarten through 3 who are transported by school bus and are enrolled during the first or second week of school must demonstrate achievement of the school bus safety training competencies by the end of the third week of school. All students enrolled in grades 4 through 10 who are transported by school bus and are enrolled during the first or second week of school must demonstrate achievement of the competencies by the end of the sixth week

of school. Students enrolled in grades kindergarten through 10 who enroll in a school after the second week of school and are transported by school bus shall undergo school bus safety training and demonstrate achievement of the school bus safety competencies within four weeks of the first day of attendance. The pupil transportation safety director in each district must certify to the commissioner of children, families, and learning annually that all students transported by school bus within the district have satisfactorily demonstrated knowledge and understanding of the school bus safety competencies according to this section or provide an explanation for a student's failure to demonstrate the competencies. The principal or other chief administrator of each nonpublic school must certify annually to the public transportation safety director of the district in which the school is located that all of the school's students transported by school bus at public expense have received training. A school district may deny transportation to a student who fails to demonstrate the competencies, unless the student is unable to achieve the competencies due to a disability, or to a student who attends a nonpublic school that fails to provide training as required by this subdivision.

(d) A school district and a nonpublic school with students transported by school bus at public expense must, to the extent possible, provide kindergarten pupils with bus safety training before the first day of school.

(e) A school district and a nonpublic school with students transported by school bus at public expense must also provide student safety education for bicycling and pedestrian safety, for students enrolled in grades kindergarten through 5.

(f) A school district and a nonpublic school with students transported by school bus at public expense must make reasonable accommodations for the school bus, bicycle, and pedestrian safety training of pupils known to speak English as a second language and pupils with disabilities.

Sec. 8. Minnesota Statutes 1995 Supplement, section 124.223, subdivision 4, is amended to read:

Subd. 4. [PUPILS WITH DISABILITIES.] School districts may shall provide transportation or board and lodging of a pupil with a disability when that pupil cannot be transported on a regular school bus, the conveying of pupils with a disability between home or a respite care facility and school and within the school plant, necessary transportation of pupils with a disability 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, and necessary transportation for resident pupils with a disability required by sections 120.17, subdivision 4a, and 120.1701. Transportation of pupils with a disability between home or a respite care facility and school shall not be subject to any distance requirement for children.

Sec. 9. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 8l, is amended to read:

Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district that enrolls nonresident pupils in programs under sections 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22, may shall provide authorized transportation to the pupil within the attendance area for the school that the pupil attends. The resident district need not provide or pay for transportation between the pupil's residence and the district's border.

Sec. 10. Minnesota Statutes 1995 Supplement, 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 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, 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; and

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

Sec. 11. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 16, is amended to read:

Subd. 16. [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A district's nonpublic pupil transportation revenue for the 1996-1997 and later school years for transportation services for nonpublic school pupils according to sections 123.39, 123.76 to 123.78, 124.223, and 124.226, equals the sum of the amounts computed in paragraphs (b) and (c). This revenue does not limit the obligation to transport pupils under sections 123.76 to 123.79.

(b) For regular and excess transportation according to section 124.225, subdivision 1, paragraph (c), clauses (1) and (3), an amount equal to the product of:

(1) the district's actual expenditure per pupil transported in the regular and excess transportation categories during the second preceding school year; times

(2) the number of nonpublic school pupils residing in the district who receive regular or excess transportation service or reimbursement for the current school year; times

(3) the ratio of the formula allowance pursuant to section 124A.22, subdivision 2, for the current school year to the formula allowance pursuant to section 124A.22, subdivision 2, for the second preceding school year.

(c) For nonregular transportation according to section 124.225, subdivision 1, paragraph (c), clause (2), excluding transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8, and late activity transportation according to section 124.226, subdivision 9, an amount equal to the product of:

(1) the district's actual expenditure for nonregular and late activity transportation for nonpublic school pupils during the second preceding school year; times

(2) the ratio of the formula allowance pursuant to section 124A.22, subdivision 2, for the current school year to the formula allowance pursuant to section 124A.22, subdivision 2, for the second preceding school year.

(d) Notwithstanding the amount of the formula allowance for fiscal years 1997 and 1998 in section 124A.22, subdivision 2, the commissioner shall use the amount of the formula allowance less $300 in determining the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.

Sec. 12. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 17, is amended to read:

Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) A district's targeted needs transportation aid is the difference between its targeted needs transportation revenue under subdivision 13 and its targeted needs transportation revenue 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. 13. Minnesota Statutes 1995 Supplement, section 124.227, is amended to read:

124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION TRANSPORTATION GRANTS.]

(a) A district that provides transportation of pupils between resident and nonresident districts to and from an interdistrict program for desegregation or integration purposes may apply to the commissioner of children, families, and learning for a grant to cover the additional costs of transportation.

(b) A district in the metropolitan area may apply to the commissioner for a grant to cover the costs of transporting pupils who are enrolled under section 120.062 if the enrollment of the student in the nonresident district contributes to desegregation or integration purposes. The commissioner must develop the form and manner of applications, the criteria to be used to determine when transportation is for desegregation or integration purposes, and the accounting procedure to be used to determine excess costs. In determining the grant amount, the commissioner must consider other revenue received by the district for transportation for desegregation or integration purposes.

(c) Grants may be awarded under paragraph (b) only if grants awarded under paragraph (a) have been fully funded.

Sec. 14. Minnesota Statutes 1995 Supplement, section 169.01, subdivision 6, is amended to read:

Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle used to transport pupils to or from a school defined in section 120.101, or to or from school-related activities, by the school or a school district, or by someone under an agreement with the school or a school district. A school bus does not include a motor vehicle transporting children to or from school for which parents or guardians receive direct compensation from a school district, a motor coach operating under charter carrier authority, a transit bus providing services as defined in section 174.22, subdivision 7, or a vehicle otherwise qualifying as a type III vehicle under paragraph (5), when the vehicle is properly registered and insured and being driven by an employee or agent of a school district for nonscheduled transportation. A school bus may be type A, type B, type C, or type D, or type III as follows:

(1) A "type A school bus" is a conversion or body constructed upon a van-type compact truck or a front-section vehicle, with a gross vehicle weight rating of 10,000 pounds or less, designed for carrying more than ten persons.

(2) A "type B school bus" is a conversion or body constructed and installed upon a van or front-section vehicle chassis, or stripped chassis, with a gross vehicle weight rating of more than 10,000 pounds, designed for carrying more than ten persons. Part of the engine is beneath or behind the windshield and beside the driver's seat. The entrance door is behind the front wheels.

(3) A "type C school bus" is a body installed upon a flat back cowl chassis with a gross vehicle weight rating of more than 10,000 pounds, designated designed for carrying more than ten persons. All of the engine is in front of the windshield and the entrance door is behind the front wheels.

(4) A "type D school bus" is a body installed upon a chassis, with the engine mounted in the front, midship or rear, with a gross vehicle weight rating of more than 10,000 pounds, designed for carrying more than ten persons. The engine may be behind the windshield and beside the driver's seat; it may be at the rear of the bus, behind the rear wheels, or midship between the front and rear axles. The entrance door is ahead of the front wheels.

(5) Type III school buses and type III Head Start buses are restricted to passenger cars, station wagons, vans, and buses having a maximum manufacturer's rated seating capacity of ten people, including the driver, and a gross vehicle weight rating of 10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value specified by the manufacturer as the loaded weight of a single vehicle. A "type III school bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type A, B, C, or D school bus or type A, B, C, or D Head Start bus.

Sec. 15. Minnesota Statutes 1994, section 169.4504, is amended by adding a subdivision to read:

Subd. 5. [AISLE WIDTH.] All school buses equipped with a power lift shall provide at least a 12-inch aisle leading from wheelchair position to at least one emergency door and the lift area.

Sec. 16. Minnesota Statutes 1995 Supplement, section 631.40, subdivision 1a, is amended to read:

Subd. 1a. [CERTIFIED COPY OF DISQUALIFYING OFFENSE CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a person is convicted of committing a disqualifying offense, as defined in section 171.3215, subdivision 1, a gross misdemeanor, a fourth moving violation within a three-year period the previous three years, or a violation of section 169.121 or 169.129, or a similar statute or ordinance from another state, the court shall determine whether the offender is a school bus driver as defined in section 171.3215, subdivision 1, whether the offender possesses a school bus driver's endorsement on the offender's driver's license and in what school districts the offender drives a school bus. If the offender is a school bus driver or possesses a school bus driver's endorsement, the court administrator shall send a certified copy of the conviction to the department of public safety and to the school districts in which the offender drives a school bus within ten days after the conviction.

Sec. 17. Laws 1995, First Special Session chapter 3, article 2, section 53, is amended to read:

Sec. 53. [EFFECTIVE DATE.]

Sections 6 to 9 and 29 to 49 are effective the day following final enactment.

Section 12 is effective beginning with taxes payable in 1996 for fiscal year 1997.

Sec. 18. [APPROPRIATION.]

$150,000 is appropriated to the St. Paul school district to contract with the Metropolitan Council Transit Organization for a one-year pilot program during the 1996-1997 school year to transport students to and from Arlington High School. The MCTO and the St. Paul school district shall submit a joint preliminary report by March 1, 1997, to the chairs of the education committees of the senate and the house of representatives, the chair of the metropolitan and local government committee of the senate, and the chair of the local government and metropolitan affairs committee of the house of representatives. The MCTO may not charge the district any more than $150,000 for the school year.

Sec. 19. [EFFECTIVE DATE.]

Sections 8 to 13 are effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 3a, is amended to read:

Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district shall ensure that:

(1) all students with disabilities are provided the special instruction and services which are appropriate to their needs. Where the individual education plan team has determined appropriate goals and objectives based on the student's needs, including the extent to which the student can be included in the least restrictive environment, and where there are essentially equivalent and effective instruction, related services, or assistive technology devices available to meet the student's needs, cost to the school district may be among the factors considered by the team in choosing how to provide the appropriate services, instruction, or devices that are to be made part of the student's individual education plan. The student's needs and the special education instruction and services to be provided shall be agreed upon through the development of an individual education plan. The plan shall address the student's need to develop skills to live and work as independently as possible within the community. By grade 9 or age 14, the plan shall address the student's needs for transition from secondary services to post-secondary education and training, employment, community participation, recreation, and leisure and home living. The plan must include a statement of the needed transition services, including a statement of the interagency responsibilities or linkages or both before secondary services are concluded;

(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. 2. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 3b, is amended to read:

Subd. 3b. [PROCEDURES FOR DECISIONS.] Every district shall utilize at least the following procedures for decisions involving identification, assessment, and educational placement of children with a disability:

(a) Parents and guardians shall receive prior written notice of:

(1) any proposed formal educational assessment or proposed denial of a formal educational assessment of their child;

(2) a proposed placement of their child in, transfer from or to, or denial of placement in a special education program; or

(3) the proposed provision, addition, denial or removal of special education services for their child;

(b) The district shall not proceed with the initial formal assessment of a child, the initial placement of a child in a special education program, or the initial provision of special education services for a child without the prior written consent of the child's parent or guardian. The refusal of a parent or guardian to consent may be overridden by the decision in a hearing held pursuant to clause (e) at the district's initiative;

(c) Parents and guardians shall have an opportunity to meet with appropriate district staff in at least one conciliation conference, mediation, or other method of alternative dispute resolution that the parties agree to, if they object to any proposal of which they are notified pursuant to clause (a). The conciliation process or other form of alternative dispute resolution shall not be used to deny or delay a parent or guardian's right to a due process hearing. If the parent or guardian refuses efforts by the district to conciliate the dispute with the school district, the requirement of an opportunity for conciliation or other alternative dispute resolution shall be deemed to be satisfied. Notwithstanding other law, in any proceeding following a conciliation conference, the school district must not offer a conciliation conference memorandum into evidence, except for any portions that describe the district's final proposed offer of service. Otherwise, with respect to forms of dispute resolution, mediation, or conciliation, Minnesota Rule of Evidence 408 applies. The department of children, families, and learning may reimburse the districts or directly pay the costs of lay advocates, not to exceed $150 per dispute, used in conjunction with alternative dispute resolution.

(d) The commissioner shall establish a mediation process to assist parents, school districts, or other parties to resolve disputes arising out of the identification, assessment, or educational placement of children with a disability. The mediation process must be offered as an informal alternative to the due process hearing provided under clause (e), but must not be used to deny or postpone the opportunity of a parent or guardian to obtain a due process hearing.

(e) Parents, guardians, and the district shall have an opportunity to obtain an impartial due process hearing initiated and conducted by and in the school district responsible for assuring that an appropriate program is provided in accordance with state board rules, if the parent or guardian continues to object to:

(1) a proposed formal educational assessment or proposed denial of a formal educational assessment of their child;

(2) the proposed placement of their child in, or transfer of their child to a special education program;

(3) the proposed denial of placement of their child in a special education program or the transfer of their child from a special education program;

(4) the proposed provision or addition of special education services for their child; or

(5) the proposed denial or removal of special education services for their child.

Within five business days after the request for a hearing, or as directed by the hearing officer, the objecting party shall provide the other party with a brief written statement of particulars of the objection, the reasons for the objection, and the specific remedies sought. The other party shall provide the objecting party with a written response to the statement of objections within five business days of receipt of the statement.

The hearing shall take place before an impartial hearing officer mutually agreed to by the school board and the parent or guardian. If the school board and the parent or guardian are unable to agree on a Within four business days of the receipt of the request for the hearing, if the parties have not agreed on the hearing officer, the school board shall request the commissioner to appoint a hearing officer. The school board shall include with request the name of the person requesting the hearing, the name of the student, the attorneys involved, if any, and the date the hearing request was received. The hearing officer shall not be a school board member or employee of the school district where the child resides or of the child's school district of residence, an employee of any other public agency involved in the education or care of the child, or any person with a personal or professional interest which would conflict with the person's objectivity at the hearing. A person who otherwise qualifies as a hearing officer is not an employee of the district solely because the person is paid by the district to serve as a hearing officer. If the hearing officer requests an independent educational assessment of a child, the cost of the assessment shall be at district expense. The proceedings shall be recorded and preserved, at the expense of the school district, pending ultimate disposition of the action.

(f) The decision of the hearing officer pursuant to clause (e) shall be rendered not more than 45 calendar days from the date of the receipt of the request for the hearing, except that hearing officers are encouraged to accelerate the timeline to 30 days for children birth through two whose needs change rapidly and require quick resolution of complaints. A hearing officer may not grant specific extensions of time beyond the 45-day period at the request of either party unless requested by either party for good cause shown on the record. The decision of the hearing officer shall be binding on all parties unless appealed to the hearing review officer commissioner by the parent,; guardian, or the; school board of the district where the child resides pursuant to clause (g); and also in the case of children birth through two, by the county board.

The local decision shall:

(1) be in writing;

(2) state the controlling facts upon which the decision is made in sufficient detail to apprise the parties and the hearing review officer of the basis and reason for the decision; and

(3) state whether the special education program or special education services appropriate to the child's needs can be reasonably provided within the resources available to the responsible district or districts;

(4) state the amount and source of any additional district expenditure necessary to implement the decision; and

(5) be based on the standards set forth in subdivision 3a and the rules of the state board.

(g) Any local decision issued pursuant to clauses (e) and (f) may be appealed to the hearing review officer commissioner within 30 calendar days of receipt of that written decision, by the parent, guardian, or the school board of the district responsible for assuring that an appropriate program is provided in accordance with state board rules. The appealing party shall note the specific parts of the hearing decision being appealed.

If the decision is appealed, a written transcript of the hearing shall be made by the school district and shall be accessible provided by the district to the parties involved and the hearing review officer within five calendar days of the filing of the appeal. The hearing review officer shall conduct an appellate review and issue a final independent decision based on an impartial review of the local decision and the entire record within 30 calendar days after the filing of the appeal. However, the hearing review officer shall seek additional evidence if necessary and may afford the parties an opportunity for written or oral argument; provided any hearing held to seek additional evidence shall be an impartial due process hearing but shall be deemed not to be a contested case hearing for purposes of chapter 14. The hearing review officer may grant specific extensions of time beyond the 30-day period at the request of any party for good cause shown on the record.

The final decision shall:

(1) be in writing;

(2) include findings and conclusions; and

(3) be based upon the standards set forth in subdivision 3a and in the rules of the state board.

(h) The decision of the hearing review officer shall be final unless appealed by the parent or guardian or school board to the Minnesota court of appeals or federal district court as provided by federal law. The State judicial review shall be in accordance with chapter 14.

(i) The commissioner of children, families, and learning shall select an individual who has the qualifications enumerated in this paragraph to serve as the hearing review officer:

(1) the individual must be knowledgeable and impartial;

(2) the individual must not have a personal interest in or specific involvement with the student who is a party to the hearing;

(3) the individual must not have been employed as an administrator by the district that is a party to the hearing;

(4) the individual must not have been involved in the selection of the administrators of the district that is a party to the hearing;

(5) the individual must not have a personal, economic, or professional interest in the outcome of the hearing other than the proper administration of the federal and state laws, rules, and policies;

(6) the individual must not have substantial involvement in the development of a state or local policy or procedures that are challenged in the appeal; and

(7) the individual is not a current employee or board member of a Minnesota public school district, education district, intermediate unit or regional education agency, the department of children, families, and learning, the state board of education, or a parent advocacy organization or group; and

(8) the individual is not a current employee or board member of a disability advocacy organization or group.

(j) In all appeals, the parent or guardian of the pupil with a disability or the district that is a party to the hearing may challenge the impartiality or competence of the proposed hearing review officer by applying to the hearing review officer.

(k) Pending the completion of proceedings pursuant to this subdivision, unless the district and the parent or guardian of the child agree otherwise, the child shall remain in the child's current educational placement and shall not be denied initial admission to school.

(l) The child's school district of residence, a resident district, and providing district shall receive notice of and may be a party to any hearings or appeals under this subdivision.

(m) A school district is not liable for harmless technical violations of this subdivision or rules implementing this subdivision if the school district can demonstrate on a case-by-case basis that the violations did not harm the student's educational progress or the parent or guardian's right to notice, participation, or due process.

(n) Within ten calendar days after appointment, the hearing officer shall schedule and hold a prehearing conference. At that conference, or later, the hearing officer may take any appropriate action that a court might take under Rule 16 of Minnesota Rules of Civil Procedure including, but not limited to, scheduling, jurisdiction, and listing witnesses including expert witnesses.

(o) A hearing officer or hearing review officer appointed under this subdivision shall be deemed to be an employee of the state under section 3.732 for the purposes of section 3.736 only.

(p) In order to be eligible for selection, hearing officers and hearing review officers shall participate in training and follow procedures as designated by the commissioner.

(q) The hearing officer may admit all evidence which possesses probative value, including hearsay, if it is the type of evidence on which reasonable, prudent persons are accustomed to rely in the conduct of their serious affairs. The hearing officer shall give effect to the rules of privilege recognized by law. Evidence which is incompetent, irrelevant, immaterial, or unduly repetitious shall be excluded.

Sec. 3. Minnesota Statutes 1994, section 120.17, is amended by adding a subdivision to read:

Subd. 19. [PARENT ADVISORY COMMITTEES.] Provisions of Minnesota Rules, part 3525.1100, regarding parent advisory committees shall apply to local school boards or cooperative boards carrying out the provisions of Minnesota Statutes, section 120.17.

Sec. 4. Minnesota Statutes 1994, section 120.1701, subdivision 10, is amended to read:

Subd. 10. [PAYMENT FOR SERVICES.] Core early intervention services shall be provided at public expense with no cost to parents. Parents shall be requested to assist in the cost of additional early intervention services by using third-party payment sources and applying for available resources. If a parent chooses not to access these resources, additional early intervention services may not be provided. Payment structures permitted under state law shall be used to pay for additional early intervention services. Parental financial responsibility shall be clearly defined in the individualized family service plan. A parent's inability to pay shall not prohibit a child from receiving needed early intervention services.

Sec. 5. Minnesota Statutes 1995 Supplement, section 120.1701, subdivision 20, is amended to read:

Subd. 20. [DUE PROCESS HEARINGS.] By July 1, 1994, the departments of children, families, and learning, health, and human services shall develop procedures for hearings. The procedures for due process hearings and appeals shall be the same as those in section 120.17, subdivision 3b. The responsibility for payment of costs and conducting due process hearings and appeals shall be allocated to the appropriate agency in accordance with section 120.1701, subdivisions 5, 13, and 16.

Sec. 6. [120.187] [DEFINITION.]

Subdivision 1. [APPLICABILITY.] For the purposes of sections 120.187 to 120.190, the following terms have the meanings given them.

Subd. 2. [ASSISTIVE TECHNOLOGY DEVICE.] "Assistive technology device" means any item, piece of equipment, software, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of children with disabilities.

Sec. 7. [120.188] [PURCHASING GUIDELINES.]

Subdivision 1. [RIGHTS OF SCHOOL DISTRICTS TO PURCHASE SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a disability exits a school district and enters a new school district, the child's new school district may purchase any assistive technology devices that the child's former school district has purchased on the child's behalf. The child's new school district must notify, in writing, the child's former school district of the intent to purchase the device. The child's new school district must complete a purchase agreement according to section 4. The child's former school district must respond, in writing, to the request to purchase within 30 days.

(b) School districts may decline to sell a device if they can demonstrate the technology is a general use device or can be modified for use by other students.

Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The child's former school district shall not be liable for any nonconformities in the equipment after it is purchased by the child's new school district, or for injuries arising out of the use of the assistive technology device. This section does not foreclose the child's right to bring suit against the manufacturer, assistive device lessor, or assistive device dealer for nonconformities in or injuries arising out of the use of the assistive technology device.

Subd. 3. [THIRD-PARTY PAYORS.] Nothing contained in this section shall be construed as decreasing the obligation of an insurance company or other third-party payor to provide coverage for assistive technology.

Sec. 8. [120.189] [INTERAGENCY AGREEMENT TO PURCHASE USED ASSISTIVE TECHNOLOGY DEVICES.]

Subdivision 1. [OPTION TO PURCHASE BY DEPARTMENT OF ECONOMIC SECURITY.] (a) When a child with a disability transitions into a work environment or enrolls in a post-secondary course or program, the department of economic security may purchase any assistive technology device that the child's former school district purchased on the child's behalf.

(b) The department of economic security may purchase an assistive technology device initially purchased by a school district for a child who is currently a recipient of rehabilitation services and who needs the identical assistive technology device as stated on the recipient's individual written rehabilitation plan. The purchase may be made not more than three months prior to the child exiting the school district.

Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The department of economic security and the department of children, families, and learning shall not be liable for any nonconformities in the equipment after it is purchased by the department of economic security, or for injuries arising out of the use of the assistive technology device. This section does not foreclose the child's right to bring suit against the manufacturer, assistive device lessor, or assistive device dealer for nonconformities in or injuries arising out of the use of the assistive technology device.

Subd. 3. [THIRD-PARTY PAYOR.] Nothing contained in this section shall be construed as decreasing the obligation of an insurance company or other third-party payor to provide coverage for assistive technology.

Sec. 9. [120.190] [PURCHASE AGREEMENT; PRICE FORMULA.]

The commissioner shall develop guidelines for the sale of used assistive technology including a purchase agreement, a formula for establishing the sale price, and other terms and conditions of the sale.

Sec. 10. Minnesota Statutes 1994, section 123.35, is amended by adding a subdivision to read:

Subd. 9b. [SERVICES FOR INDIAN STUDENTS.] School districts may enter into agreements with Indian tribal governments for purposes of providing educational services for students. Such agreements may allow for the use of any resources available to either party and must give students the option to enroll in the school district at their election.

Sec. 11. Minnesota Statutes 1995 Supplement, section 124.273, subdivision 1c, is amended to read:

Subd. 1c. [ADJUSTED LEP BASE REVENUE.] (a) A district's adjusted limited English proficiency programs base revenue for fiscal year 1996 and later equals the product of:

(1) the district's base revenue for limited English proficiency programs under this section and section 124.321, times

(2) the ratio of:

(i) the greater of 20 or the number of pupils of limited English proficiency enrolled in the district during the current fiscal year to

(ii) the greater of 20 or the number of pupils of limited English proficiency enrolled in the district during fiscal the base year 1995.

(b) For the purposes of this section, the base year for fiscal year 1996 is fiscal year 1995. The base year for later fiscal years is the second fiscal year preceding the fiscal year for which aid shall be paid. The current year is the fiscal year for which aid shall be paid.

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

Sec. 12. Minnesota Statutes 1995 Supplement, 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 fiscal base year 1995 data:

(1) 68 percent of the salaries paid limited English proficiency program teachers 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.

Sec. 13. Minnesota Statutes 1994, section 124.273, is amended by adding a subdivision to read:

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

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

(1) the state total limited English proficiency programs revenue for the preceding fiscal year; times

(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. 14. Minnesota Statutes 1994, section 124.273, is amended by adding a subdivision to read:

Subd. 1g. [SCHOOL DISTRICT LEP REVENUE.] (a) A school district's limited English proficiency programs revenue for fiscal year 1996 and later equals the state total limited English proficiency programs revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted limited English proficiency programs base revenue to the state total adjusted limited English proficiency programs base revenue.

(b) Notwithstanding paragraph (a), if the limited English proficiency programs base revenue for a district equals zero, the limited English proficiency programs revenue equals the sum of the following amounts, computed using current 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.

Sec. 15. Minnesota Statutes 1994, section 124.311, subdivision 1, is amended to read:

Subdivision 1. [INSTRUCTION IN REGULAR CLASSROOM.] A school district may receive assurance of mastery revenue to provide direct instructional services to eligible pupils in the pupils' regular classroom.

Sec. 16. Minnesota Statutes 1994, section 124.311, subdivision 4, is amended to read:

Subd. 4. [ELIGIBLE SERVICES.] Assurance of mastery revenue must be used to provide direct instructional services to an eligible pupil, or group of eligible pupils, under the following conditions:

(a) Instruction may be provided at one or more grade levels from kindergarten through grade 8. If an assessment of pupils' needs within a district demonstrates that the eligible pupils in grades kindergarten through 8 are being appropriately served, a district may serve eligible pupils in grades 9 through 12.

(b) Instruction must be provided in the usual and customary classroom of the eligible pupil.

(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 124.32.

(d) (c) 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. 17. Minnesota Statutes 1994, section 124.311, subdivision 5, is amended to read:

Subd. 5. [REVENUE AMOUNT.] Assurance of mastery revenue is the sum of state and district money. The sum may equal up to $45 for fiscal year 1991 and thereafter times the number of actual fund balance pupil units in kindergarten through grade 8 in the district. The district shall determine the amount of money it will provide and the state shall provide an equal amount of money.

Sec. 18. Minnesota Statutes 1995 Supplement, section 124.314, subdivision 2, is amended to read:

Subd. 2. [LEVY.] For fiscal year 1997 1996 and thereafter, 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. 19. Minnesota Statutes 1995 Supplement, 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 fiscal year 1995 the 1994 summer program and the 1994-1995 school year. Base year for 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 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. 20. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 2, is amended to read:

Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] 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;

(5) for supplies and equipment purchased or rented for use in the instruction of children with a disability an amount equal to 47 percent of the sum actually expended by the district but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction; and

(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.

Sec. 21. Minnesota Statutes 1995 Supplement, section 124.3201, is amended by adding a subdivision to read:

Subd. 2a. [SPECIAL EDUCATION TUITION REVENUE.] (a) For fiscal year 1996 and later, a district's special education tuition revenue is equal to 50 percent of the difference between tuition costs in the base year and actual tuition costs for pupils whose individual education plans require placement in another district under section 120.17.

(b) For purposes of this section, "tuition costs" means expenditures for tuition bills as defined in section 124.323, subdivision 2, paragraph (a), clause (2).

Sec. 22. Minnesota Statutes 1995 Supplement, section 124.3201, is amended by adding a subdivision to read:

Subd. 2b. [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For fiscal year 1996 and later, a district's special education court placement revenue is equal to 50 percent of the difference between expenditures for teachers' salaries, contracted services, supplies, and equipment eligible for revenues under sections 124.3201 and 124.3202, in the base year and actual expenditures for pupils with disabilities who receive services pursuant to a court order.

Sec. 23. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 3, is amended to read:

Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For fiscal year 1996 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. 24. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 5, is amended to read:

Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) A school district's special education revenue for fiscal year 1996 and later equals the state total special education revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted special education base revenue to the state total adjusted special education base revenue. If the state board of education modifies its rules for special education in a manner that increases a school district's special education obligations or service requirements, the commissioner of children, families, and learning shall annually increase each district's special education revenue by the amount necessary to compensate for the increased service requirements. The additional revenue equals the cost in the current year attributable to rule changes not reflected in the computation of special education base revenue, multiplied by the appropriate percentages from subdivision 2.

(b) Notwithstanding paragraph (a), if the special education base revenue for a district equals zero, the special education revenue equals the amount computed according to subdivision 2 using current year data.

Sec. 25. Minnesota Statutes 1995 Supplement, section 124.3202, is amended to read:

124.3202 [SPECIAL EDUCATION SUMMER PROGRAM REVENUE.]

Subdivision 1. [SUMMER PROGRAM BASE REVENUE.] The summer program base revenue for fiscal year 1996 and fiscal year 1997 equals the sum of the following amounts computed using base year data:

(1) 68 percent of the summer program salary of each essential person employed in the district's program for children with a disability, 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 summer program 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 for the summer program and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract; and

(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 summer program contract for that pupil.

Subd. 2. [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For fiscal year 1996 and later fiscal year 1997, a district's adjusted summer program base revenue equals the district's summer program 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.

Subd. 3. [STATE TOTAL SUMMER PROGRAM REVENUE.] The state total summer program revenue for fiscal year 1996 equals $7,152,000. The state total summer program revenue for fiscal year 1997 equals $3,728,500. Fiscal year 1996 summer program revenue is for 1995 summer programs. Fiscal year 1997 summer program revenue is for 1996 summer programs provided in fiscal year 1996.

Subd. 4. [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] (a) A school district's summer program revenue for fiscal year 1996 and fiscal year 1997 equals the state total summer program revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted summer program base revenue to the state total adjusted summer program base revenue.

(b) Notwithstanding paragraph (a), if the special education base revenue for a district under section 124.3201, subdivision 2, equals zero, the summer program revenue equals the amount computed according to subdivision 1 using current year data.

Subd. 5. [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school district's special education summer program aid for fiscal year 1996 and fiscal year 1997 equals the district's summer program revenue times the aid percentage factor for that year.

Subd. 6. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND INTERMEDIATES.] For the purposes of this section and section 124.321, a special education cooperative or an intermediate district shall allocate its approved expenditures for special education programs among participating school districts. Special education summer program aid for services provided by a cooperative or intermediate district shall be paid to the participating school districts.

Sec. 26. Minnesota Statutes 1995 Supplement, section 124.323, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] In this section, the definitions in this subdivision apply.

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

(1) expenditures for teachers' salaries, contracted services, supplies, and equipment eligible for revenue under sections 124.3201, and 124.3202, and 124.321; 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, and 124.321; 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. 27. Minnesota Statutes 1995 Supplement, section 124.323, subdivision 2, is amended to read:

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

(1) 70 percent of the difference between (i) (1) the district's unreimbursed special education cost per actual pupil unit and (ii) (2) six percent for fiscal year 1996 and 5.7 percent for fiscal year 1997 and later years of the district's general revenue per actual pupil unit, times

(2) the district's actual pupil units for that year.

Sec. 28. Minnesota Statutes 1995 Supplement, section 124.574, subdivision 2f, is amended to read:

Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED REVENUE.] The state total secondary vocational-disabled revenue for fiscal year 1996 equals $7,645,000 $8,520,000. The state total secondary vocational-disabled revenue for fiscal year 1997 equals $7,960,000 $8,830,000. The state total secondary vocational-disabled revenue for later fiscal years equals:

(1) the state total secondary vocational-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. 29. Minnesota Statutes 1995 Supplement, section 124.574, subdivision 2g, is amended to read:

Subd. 2g. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED REVENUE.] (a) A school district's secondary vocational-disabled revenue for fiscal year 1996 and later equals the state total secondary vocational-disabled revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted secondary vocational-disabled base revenue to the state total adjusted secondary vocational-disabled base revenue.

(b) Notwithstanding paragraph (a), if the secondary vocational-disabled base revenue for a district equals zero and no district residents were enrolled in secondary vocational-disabled programs during the base year, the secondary vocational-disabled revenue equals the amount computed according to subdivision 2d using current year data.

Sec. 30. Minnesota Statutes 1994, section 124.86, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] Each year each American Indian-controlled tribal contract or grant school authorized by the United States Code, title 25, section 450f, that is located on a reservation within the state is eligible to receive tribal contract or grant school aid subject to the requirements in this subdivision.

(a) The school must plan, conduct, and administer an education program that complies with the requirements of either this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 126, 129, and 268A or Code of Federal Regulations, title 25, sections 31.0 to 45.80.

(b) The school must comply with all other state statutes governing independent school districts or their equivalent in the Code of Federal Regulations, title 25.

(c) The state tribal contract or grant school aid must be used to supplement, and not to replace, the money for American Indian education programs provided by the federal government.

Sec. 31. Minnesota Statutes 1994, 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:

(1) multiplying the formula allowance under section 124A.22, subdivision 2, times the difference between (a) the actual pupil units as defined in section 124A.02, subdivision 15, in average daily membership, excluding section 124.17, subdivision 2f, and (b) the number of pupils for the current school year, weighted according to section 124.17, subdivision 1, receiving benefits under section 123.933 or 123.935 or for which the school is receiving reimbursement under section 126.23;

(2) subtracting from the result in clause (1) 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) dividing the result in clause (2) by the actual pupil units in average daily membership, excluding section 124.17, subdivision 2f; and

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

Sec. 32. Minnesota Statutes 1994, section 126.531, subdivision 3, is amended to read:

Subd. 3. Each committee shall be reimbursed for expenses according to section 15.059, subdivision 6. The state board shall determine the membership terms and the duration of each committee, which expire no later than June 30, 1997.

Sec. 33. Minnesota Statutes 1995 Supplement, section 325G.203, subdivision 11, is amended to read:

Subd. 11. [NONCONFORMITY.] "Nonconformity" means a specific condition or generic defect or malfunction, or a defect or condition that substantially impairs the use, value, or safety of an assistive device, but does not include a condition or defect that is the result of abuse or unauthorized modification or alteration of the assistive device by the consumer.

For those assistive devices regulated under section 153A.19, "nonconformity" does not include a condition of the device that is the result of normal use which could be resolved through fitting adjustments, cleaning, or proper care.

Sec. 34. Minnesota Statutes 1994, section 466.01, subdivision 1, is amended to read:

Subdivision 1. [MUNICIPALITY.] For the purposes of sections 466.01 to 466.15, "municipality" means any city, whether organized under home rule charter or otherwise, any county, town, public authority, public corporation, special district, school district, however organized, county agricultural society organized pursuant to chapter 38, joint powers board or organization created under section 471.59 or other statute, public library, regional public library system, multicounty multitype library system, family services collaborative established under section 121.8355, other political subdivision, or community action agency.

Sec. 35. Minnesota Statutes 1994, section 471.59, subdivision 11, is amended to read:

Subd. 11. [JOINT POWERS BOARD.] (a) Two or more governmental units, through action of their governing bodies, by adoption of a joint powers agreement that complies with the provisions of subdivisions 1 to 5, may establish a joint board to issue bonds or obligations pursuant to under any law by which any of the governmental units establishing the joint board may independently issue bonds or obligations and may use the proceeds of the bonds or obligations to carry out the purposes of the law under which the bonds or obligations are issued. A joint board created pursuant to established under this section may issue obligations and other forms of indebtedness only pursuant to in accordance with express authority granted by the action of the governing bodies of the governmental units which that established the joint board. Except as provided in paragraph (b), the joint board established pursuant to under this subdivision shall must be composed solely of members of the governing bodies of the governmental unit which that established the joint board, and the. A joint board established under this subdivision may not pledge the full faith and credit or taxing power of any of the governmental units which that established the joint board. The obligations or other forms of indebtedness shall must be obligations of the joint board issued on behalf of the governmental units creating the joint board. The obligations or other forms of indebtedness shall must be issued in the same manner and subject to the same conditions and limitations which that would apply if the obligations were issued or indebtedness incurred by one of the governmental units which that established the joint board, provided that any reference to a governmental unit in the statute, law, or charter provision authorizing the issuance of the bonds or the incurring of the indebtedness shall be is considered a reference to the joint board.

(b) Notwithstanding paragraph (a), one school district, one county, and one public health entity, through action of their governing bodies, may establish a joint board to establish and govern a family services collaborative under section 121.8355. The school district, county, and public health entity may include other governmental entities at their discretion. The membership of a board established under this paragraph, in addition to members of the governing bodies of the participating governmental units, must include the representation required by section 121.8355, subdivision 1, paragraph (a), selected in accordance with section 121.8355, subdivision 1, paragraph (c).

Sec. 36. Laws 1995, First Special Session chapter 3, article 3, section 19, subdivision 7, is amended to read:

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

$238,000 ..... 1996

$361,000 $861,000 ..... 1997

The 1996 appropriation includes $19,000 for 1995 and $219,000 for 1996.

The 1997 appropriation includes $38,000 for 1996 and $323,000 $823,000 for 1997.

Sec. 37. Laws 1995, First Special Session chapter 3, article 3, section 19, subdivision 15, is amended to read:

Subd. 15. [SECONDARY VOCATIONAL EDUCATION AID.] For secondary vocational education aid according to Minnesota Statutes, section 124.573:

$11,874,000..... 1996

$11,596,000 $11,771,000 ..... 1997

The 1996 appropriation includes $2,017,000 for 1995 and $9,857,000 for 1996.

The 1997 appropriation includes $1,739,000 for 1996 and $9,857,000 $10,032,000 for 1997.

Sec. 38. Laws 1995, First Special Session chapter 3, article 15, section 26, subdivision 7, is amended to read:

Subd. 7. [TARGETED NEEDS AID.] For targeted needs aid:

$37,682,000 $39,546,000 ..... 1996

$41,597,000 $41,606,000 ..... 1997

(a) Of the 1996 amount, $945,000 is for 1995 LEP aid and $4,359,000 $6,223,000 is for 1996 LEP aid. Of the 1996 amount, $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM aid. Of the 1996 amount, $18,844,000 is for 1996 integration aid.

(b) Of the 1997 amount, $1,089,000 $1,098,000 is for 1996 LEP aid and $7,913,000 is for 1997 LEP aid. Of the 1997 amount, $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM aid. Of the 1997 amount, $18,844,000 is for 1997 integration 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.

Sec. 39. Laws 1995, First Special Session chapter 3, article 15, section 26, subdivision 8, is amended to read:

Subd. 8. [SECONDARY VOCATIONAL; STUDENTS WITH DISABILITIES.] For aid for secondary vocational education for pupils with disabilities according to Minnesota Statutes, section 124.574:

$4,489,000 $4,936,000 ..... 1996

$5,424,000 $6,020,000 ..... 1997

The 1996 appropriation includes $590,000 for 1995 and $3,899,000 $4,346,000 for 1996.

The 1997 appropriation includes $688,000 $766,000 for 1996 and $4,736,000 $5,254,000 for 1997.

Sec. 40. Laws 1995, First Special Session chapter 3, article 15, section 26, subdivision 10, is amended to read:

Subd. 10. [LOW-INCOME CONCENTRATION GRANTS.] For low-income concentration grants according to Laws 1994, chapter 647, article 8, section 43:

$1,150,000 ..... 1996

$1,150,000 $1,300,000 ..... 1997

Each grant shall be for no more than $50,000.

Sec. 41. [OSSEO LEVY.]

For levies payable in 1997 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. 42. [FISCAL YEAR 1997 SECONDARY VOCATIONAL GUARANTEE.]

(a) Notwithstanding Minnesota Statutes, section 124.573, subdivision 2f, paragraphs (a) and (b), a school district's secondary vocational aid for fiscal year 1997 shall not be less than 25 percent of the lessor of (1) $90,000, or (2) the approved expenditure included in subdivision 2b, paragraph (b).

(b) Aid provided according to this section is not included in the fiscal year 1997 base for calculating fiscal year 1998 aid according to Minnesota Statutes, section 124.573, subdivision 2f, paragraph (a).

(c) The amounts allocated according to this section are not included in the secondary vocational aid base for fiscal year 1998 and after.

Sec. 43. [EFFECTIVE DATE.]

Sections 11 to 14, 26 and 29 are effective retroactively to July 1, 1995, for the 1995-1996 school year and later. Sections 21 to 23 are effective for fiscal year 1996. Sections 24 and 38 are effective the day following final enactment.

Section 1. [120.063] [SCHOOL ATTENDANCE.]

Attendance at a particular public school is a privilege not a right for a pupil.

Sec. 2. Minnesota Statutes 1995 Supplement, section 120.064, subdivision 9, is amended to read:

Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may limit admission to:

(1) pupils within an age group or grade level;

(2) people who are eligible to participate in the high school graduation incentives program under section 126.22; or

(3) residents of a specific geographic area where the percentage of the population of non-Caucasian people of that area is greater than the percentage of the non-Caucasian population in the congressional district in which the geographic area is located, and as long as the school reflects the racial and ethnic diversity of the specific area.

A charter school shall enroll an eligible pupil who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In this case, pupils shall be accepted by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability.

Sec. 3. [121.615] [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION.]

Subdivision 1. [CITATION.] This section may be cited as the "Minnesota school-to-work student organization act."

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 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.

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

(1) chairs or designees from the board of directors of FFA (formerly Future Farmers of America), Future Leaders of America/Future Homemakers of America, post-secondary agriculture students, home economics related occupations, Health Occupations Student Association, Distributive Education Clubs of America, Delta Upsilon Chi, Secondary Vocational 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.

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

Subd. 4. [FOUNDATION PROGRAMS.] The foundation shall advance applied leadership and intracurricular vocational learning experiences for students. These may include, but are not limited to:

(1) recognition programs and awards for students demonstrating excellence in applied leadership;

(2) summer programs for student leadership, career development, applied academics, and mentorship programs with business and industry;

(3) recognition programs for teachers, administrators, and others who make outstanding contributions to school-to-work programs;

(4) outreach programs to increase the involvement of urban and suburban students;

(5) organized challenges requiring cooperation and competition for secondary and post-secondary students;

(6) assistance and training to community teams to increase career awareness and empowerment of youth as community leaders; and

(7) assessment and activities in order to plan for and implement continuous improvement.

To the extent possible, the foundation shall make these programs available to students in all parts of the state.

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;

(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.

Subd. 6. [CONTRACTS.] The foundation board of directors shall review and approve foundation personnel and programming contracts.

Subd. 7. [FOUNDATION STAFF.] The commissioner of the department of children, families, and learning 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 commissioner shall appoint from the office of lifework development a liaison to the foundation board.

Subd. 8. [PUBLIC FUNDING.] The commissioner of the department of children, families, and learning 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 school-to-work student organizations.

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

Subd. 10. [REPORT.] The foundation shall submit an annual report and assessment to the office of lifework development and to the board of trustees of the Minnesota state colleges and universities.

Subd. 11. [APPROPRIATION.] There is annually appropriated to the foundation all the amounts received by the foundation pursuant to this section.

Subd. 12. [STUDENT ORGANIZATIONS.] Individual boards of vocational education student organizations shall continue their operations in accordance with section 126.151 and applicable federal law.

Sec. 4. Minnesota Statutes 1994, section 121.8355, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] (a) In order to qualify as a family services collaborative, a minimum of one school district, one county, and one public health entity, one community action agency as defined in section 268.53, and one Head Start grantee if the community action agency is not the designated federal grantee for the Head Start program must agree in writing to provide coordinated family services and commit resources to an integrated fund. Collaboratives are expected to have broad community representation, which may include other local providers, including additional school districts, counties, and public health entities, other municipalities, public libraries, existing culturally specific community organizations, tribal entities, local health organizations, private and nonprofit service providers, child care providers, local foundations, community-based service groups, businesses, local transit authorities or other transportation providers, community action agencies under section 268.53, senior citizen volunteer organizations, parent organizations, parents, and sectarian organizations that provide nonsectarian services.

(b) Community-based collaboratives composed of representatives of schools, local businesses, local units of government, parents, students, clergy, health and social services providers, youth service organizations, and existing culturally specific community organizations may plan and develop services for children and youth. A community-based collaborative must agree to collaborate with county, school district, community action, and public health entities. Their services may include opportunities for children or youth to improve child health and development, reduce barriers to adequate school performance, improve family functioning, provide community service, enhance self esteem, and develop general employment skills.

(c) Members of the governing bodies of political subdivisions involved in the establishment of a family services collaborative shall select representatives of the nongovernmental entities listed in paragraph (a) to serve on the governing board of a collaborative. The governing body members of the political subdivisions shall select one or more representatives of the nongovernmental entities within the family service collaborative.

Sec. 5. Minnesota Statutes 1994, section 121.8355, is amended by adding a subdivision to read:

Subd. 2a. [DUTIES OF CERTAIN COORDINATING BODIES.] By mutual agreement of the collaborative and a coordinating body listed in this subdivision, a family services collaborative may assume the duties of a community transition interagency committee established under section 120.17, subdivision 16; an interagency early intervention committee established under section 120.1701, subdivision 5; a local advisory council established under section 245.4875, subdivision 5; or a local coordinating council established under section 245.4875, subdivision 6.

Sec. 6. Minnesota Statutes 1994, section 124.17, is amended by adding a subdivision to read:

Subd. 5. [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a pupil who has not passed an assessment of basic graduation standards in reading, writing, or mathematics is enrolled in a mastery of basic skills summer school program that is not a part of the regular school term and the student has a total enrollment time of more than 1,020 hours in a school year, the pupil may be counted as more than one pupil in average daily membership for purposes of this subdivision only. 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. For each pupil, only the amount of summer school enrollment time attributable to basic skills instruction may be used to calculate the additional hours in the school year. Basic skills instruction is defined as in Minnesota's rules on graduation standards and includes reading, writing, and mathematics. Hours that occur after the close of the instructional year in June shall be attributable to the following fiscal year. A pupil for whom payment is made under this subdivision may be counted by a district only for the computation of basic revenue, according to section 124A.22, subdivision 2, minus $300.

Sec. 7. Minnesota Statutes 1994, section 124.2711, subdivision 6, is amended to read:

Subd. 6. [RESERVE ACCOUNT.] Early childhood family education revenue, which includes aids, levies, fees, grants, and all other revenues received by the school district for early childhood family education programs, must be maintained in a reserve account within the community service fund.

Sec. 8. Minnesota Statutes 1994, section 124.2713, subdivision 10, is amended to read:

Subd. 10. [RESERVE ACCOUNT.] Community education revenue, which includes aids, levies, fees, grants, and all other revenues received by the school district for community education programs, must be maintained in a reserve account within the community service fund.

Sec. 9. Minnesota Statutes 1994, section 124.276, is amended to read:

124.276 [CAREER TEACHER FAMILY CONNECTIONS AID.]

Subdivision 1. [ELIGIBILITY.] A school district that has a career teacher family connections program, according to sections 125.70 to 125.705, for one or more of its teachers is eligible for aid to extend the teaching contract of a career family connections teacher.

Subd. 2. [STATE SHARE OF EXTENDED CONTRACT.] The state shall pay two-thirds of the portion of the teaching contract, excluding fringe benefits, that is in addition to the standard teaching contract of the district. The district shall pay the remaining portion.

Subd. 3. [COMMISSIONER APPROVAL.] The commissioner may approve plans and applications for districts throughout the state for career teacher family connections aid. Application procedures and deadlines shall be established by the commissioner.

Subd. 4. [USE OF AID.] Career teacher family connections aid may be used only to implement a career teacher family connections program.

Sec. 10. Minnesota Statutes 1994, section 124.912, subdivision 6, is amended to read:

Subd. 6. [CRIME RELATED COSTS.] For taxes levied in 1991 and subsequent years, payable in 1992 and subsequent years, each school district may make a levy on all taxable property located within the school district for the purposes specified in this subdivision. The maximum amount which may be levied for all costs under this subdivision shall be equal to $1 multiplied by the population of the school district. For purposes of this subdivision, "population" of the school district means the same as contained in section 275.14. The proceeds of the levy must be

used for reimbursing the cities and counties who contract with the school district for the following purposes: (1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison services in the district's middle and secondary schools and; (2) to pay the costs for a drug abuse prevention program as defined in Minnesota Statutes 1991 Supplement, section 609.101, subdivision 3, paragraph (f) in the elementary schools; or (3) to pay the costs for a gang resistance education training curriculum in the middle schools. The school district must initially attempt to contract for these services with the police department of each city or the sheriff's department of the county within the school district containing the school receiving the services. If a local police department or a county sheriff's department does not wish to provide the necessary services, the district may contract for these services with any other police or sheriff's department located entirely or partially within the school district's boundaries. The levy authorized under this subdivision is not included in determining the school district's levy limitations.

Sec. 11. Minnesota Statutes 1994, section 124A.291, is amended to read:

124A.291 [RESERVED REVENUE FOR CERTAIN TEACHER PROGRAM.]

A district that has a career teacher family connections program or a mentor-teacher program may reserve part of the basic revenue under section 124A.22, subdivision 2, for the district's share, of the portion of the teaching contract that is in addition to the standard teaching contract of the district.

Sec. 12. Minnesota Statutes 1994, section 124C.45, is amended by adding a subdivision 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 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. 13. Minnesota Statutes 1994, section 125.70, is amended to read:

125.70 [CITATION.]

Sections 125.701 to 125.705 may be cited as the "Minnesota career teacher family connections act."

Sec. 14. Minnesota Statutes 1994, section 125.701, is amended to read:

125.701 [PURPOSE OF THE CAREER TEACHER FAMILY CONNECTIONS ACT.]

The legislature recognizes the unique and lifelong learning and development process of all human beings. The legislature is committed to the goal of maximizing the individual growth potential of all learners. The purposes of the career teacher family connections act are:

(1) to offer career teacher family connections programs which emphasize learning and development based on learner outcomes;

(2) to recognize and utilize the unique skills that teachers, students, family, and the community have in both the teaching process and the learning and development process; and

(3) to provide an opportunity for maximum use of teachers, principals, and counselors.

Sec. 15. Minnesota Statutes 1994, section 125.703, is amended to read:

125.703 [ADVISORY COUNCIL.]

The school board of a district providing a career teacher family connections program shall appoint an advisory council. Council members shall be selected from the school attendance area in which programs are provided. Members of the council may include students, teachers, principals, administrators and community members. A majority of the members shall be parents with children participating in the local program. The local advisory council shall advise the school board in the development, coordination, supervision, and review of the career teacher program. The council shall meet at least two times each year with any established community education advisory council in the district. Members of the council may be members of the community education advisory council. The council shall report to the school board.

Sec. 16. Minnesota Statutes 1994, section 125.704, is amended to read:

125.704 [CAREER TEACHER FAMILY CONNECTIONS PROGRAM COMPONENTS.]

Subdivision 1. [MANDATORY COMPONENTS.] A career teacher family connections program shall include:

(1) participation by a designated individual as a career teacher, principal-teacher, or counselor teacher;

(2) an emphasis on each individual child's unique learning and development needs;

(3) procedures to give the career teacher a major responsibility for leadership of the instructional and noninstructional activities of each child beginning with early childhood family education;

(4) procedures to involve parents in the learning and development experiences of their children;

(5) procedures to implement outcome based education by focusing on the needs of the learner;

(6) procedures to coordinate and integrate the instructional program with all community education programs;

(7) procedures to concentrate career teacher programs at sites that provide early childhood family education and subsequent learning and development programs; and

(8) procedures for the district to fund the program.

Subd. 2. [OPTIONAL COMPONENTS.] A career teacher family connections program may include:

(1) efforts to improve curricula strategies, instructional strategies, and use of materials that respond to the individual educational needs and learning styles of each pupil in order to enable each pupil to make continuous progress and to learn at a rate appropriate to that pupil's abilities;

(2) efforts to develop student abilities in basic skills; applied learning skills; and, when appropriate, arts; humanities; physical, natural, and social sciences; multicultural education; physical, emotional, and mental health; consumer economics; and career education;

(3) use of community resources and communications media to pursue learning and development opportunities for pupils;

(4) staff development for teachers and other school personnel;

(5) improvements to the learning and development environment, including use of the community in general, to enhance the learning and development process;

(6) cooperative efforts with other agencies involved with human services or child development and development of alternative community based learning and development experiences;

(7) post-secondary education components for pupils who are able to accelerate or programs for pupils with special abilities and interests who are given advanced learning and development opportunities within existing programs;

(8) use of volunteers in the learning and development program;

(9) flexible attendance schedules for pupils;

(10) adult education component;

(11) coordination with early childhood family education and community education programs;

(12) variable student/faculty ratios for special education students to provide for special programming;

(13) inclusion of nonpublic pupils as part of the ratio in the career teacher, principal-teacher, and counselor teacher component;

(14) application of educational research findings;

(15) summer learning and development experiences for students as recommended by the career teacher, principal-teacher, and counselor teacher;

(16) use of education assistants, teacher aides, or paraprofessionals as part of the career teacher program;

(17) establishment of alternative criteria for high school graduation; and

(18) variable age and learning size groupings of students.

Sec. 17. Minnesota Statutes 1994, section 125.705, subdivision 1, is amended to read:

Subdivision 1. [STATUS.] A career teacher family connections program may include a career teacher, principal-teacher, and counselor teacher component. The career teacher, principal-teacher, and counselor teacher shall not be the exclusive teacher for students assigned to them but shall serve as a primary teacher and perform the function of developing and implementing a student's overall learning and development program. The career teacher, principal-teacher, and counselor teacher may be responsible for regular assignments as well as learning and development programs for other assigned students.

Sec. 18. Minnesota Statutes 1994, section 126.22, subdivision 1, is amended to read:

Subdivision 1. [PURPOSE.] The legislature finds that it is critical for persons to obtain at least a high school education to function in today's society to provide options for children to succeed in school. Therefore, the purpose of this section is to provide incentives for and encourage all Minnesota students who have experienced or are experiencing difficulty in the traditional education system to enroll in alternative programs in order to complete their high school education.

Sec. 19. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE PUPILS.] The following pupils are eligible to participate in the high school graduation incentives education options program:

(a) any pupil who is between the ages of 12 and under the age of 21, or who is an elementary pupil, and in either case, who:

(1) is at least two grade levels performs substantially below the performance level for pupils of the same age in a locally determined achievement test; or

(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

(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. 20. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 3, is amended to read:

Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible according to subdivision 2 may enroll in area learning centers under sections 124C.45 to 124C.48, or according to section 121.11, subdivision 12.

(b) A pupil who is eligible according to subdivision 2 and who is between the ages of 16 and 21 may enroll in post-secondary courses under section 123.3514.

(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary or secondary education program. However, a person who is eligible according to subdivision 2, clause (b), may enroll only if the school board has adopted a resolution approving the enrollment.

(d) A pupil who is eligible under subdivision 2, may enroll part time, if 16 years of age or older, or full time in any nonprofit, nonpublic, nonsectarian school that has contracted with the serving school district to provide educational services.

(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic education programs approved under section 124.26 and operated under the community education program contained in section 121.88.

Sec. 21. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 5, is amended to read:

Subd. 5. [DISSEMINATION OF INFORMATION.] A school district shall disseminate information, developed by the department of children, families, and learning, about the high school graduation incentives program to residents in the district who are under the age of 21.

Sec. 22. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 8, is amended to read:

Subd. 8. [ENROLLMENT VERIFICATION.] (a) For a pupil attending an eligible program full time under subdivision 3, paragraph (d), the department of children, families, and learning shall pay 88 90 percent of the basic revenue of the district to the eligible program and 12 ten percent of the basic revenue to the resident district within 30 days after the eligible program verifies enrollment using the form provided by the department. For a pupil attending an eligible program part time, basic revenue shall be reduced proportionately, according to the amount of time the pupil attends the program, and the payments to the eligible program and the resident district shall be reduced accordingly. A pupil for whom payment is made according to this section may not be counted by any district for any purpose other than computation of basic revenue, according to section 124A.22, subdivision 2. If payment is made for a pupil under this subdivision, a school district shall not reimburse a program under section 126.23 for the same pupil.

(b) The department of children, families, and learning shall pay up to 100 percent of the basic revenue to the eligible program if there is an agreement to that effect between the school district and the eligible program.

Sec. 23. Minnesota Statutes 1995 Supplement, section 126.23, is amended to read:

126.23 [AID FOR PRIVATE CONTRACTED ALTERNATIVE PROGRAMS.]

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 88 90 percent of the basic revenue of the district for each pupil attending the program full time. For a pupil attending the program part time, basic revenue paid to the program shall be reduced proportionately, according to the amount of time the pupil attends the program, and basic 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 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.

Subd. 2. [RESERVE ACCOUNT.] During the term of the contract to provide educational services under subdivision 1, all state aid under subdivision 1 accrues to the account assigned to the alternative program site and is reserved for that site.

Sec. 24. Minnesota Statutes 1995 Supplement, section 128B.03, subdivision 3a, is amended to read:

Subd. 3a. [STATE REVENUES.] The state shall pay to the council for the support of the school all aids, revenues, and grants available to a school district as though the school were a school district. The aids, revenues, and grants include, but are not limited to, the following:

(1) general education revenue, as defined in section 124A.22, subdivision 1, including at least compensatory revenue;

(2) transportation revenue;

(3) capital expenditure facilities revenue;

(4) capital expenditure equipment revenue;

(5) special education revenue;

(6) limited English proficiency aid;

(7) career teacher family connections aid;

(8) assurance of mastery revenue;

(9) school lunch revenue;

(10) school milk revenue;

(11) health and safety revenue;

(12) Indian language and culture grants;

(13) arts planning grants; and

(14) all other aids, revenues, or grants available to a school district.

If there are eligibility requirements for an aid, revenue, or grant, the requirements shall be met in order to obtain the aid, revenue, or grant, except that a requirement to levy shall be waived. To compute the amount of aid, revenue, or grant requiring a levy, the amount of the levy shall be zero.

If a school district obtains revenue from the proceeds of a levy, the council shall be deemed to have levied and the state shall pay aid equal to the amount that would have been levied. The amount shall be approved by the commissioner of children, families, and learning.

The proceeds of any aid, grant, or revenue shall be used only as provided in the applicable statute.

Sec. 25. Minnesota Statutes 1994, section 256.736, subdivision 11, is amended to read:

Subd. 11. [CASE MANAGEMENT SERVICES.] (a) The county agency may, to the extent of available resources, enroll targeted caretakers described in subdivision 16 in case management services and for those enrolled shall:

(1) Provide an assessment as described in subdivision 10, paragraph (a), clause (14). As part of the assessment, the case manager shall inform caretakers of the screenings available through the early periodic screening, diagnosis and treatment (EPSDT) program under chapter 256B and preschool screening under chapter 123, and encourage caretakers to have their children screened. The case manager must work with the caretaker in completing this task;

(2) Develop an employability development plan as described in subdivision 10, paragraph (a), clause (15). The case manager must work with the caretaker in completing this task. For caretakers who are not literate or who have not completed high school, the first goal for the caretaker should be to complete literacy training or a general equivalency diploma. Caretakers who are literate and have completed high school shall be counseled to set realistic attainable goals, taking into account the long-term needs of both the caretaker and the caretaker's family;

(3) Coordinate services such as child care, transportation, and education assistance necessary to enable the caretaker to work toward the goals developed in clause (2). The case manager shall refer caretakers to resource and referral services, if available, and shall assist caretakers in securing appropriate child care services. When a client needs child care services in order to attend a Minnesota public or nonprofit college, university or technical college, the case manager shall contact the appropriate agency to reserve child care funds for the client. A caretaker who needs child care services in order to complete high school or a general equivalency diploma is eligible for child care under sections 256H.01 to 256H.19;

(4) Develop, execute, and monitor a contract between the county agency and the caretaker. The contract must be based upon the employability development plan described in subdivision 10, paragraph (a), clause (15), but must be a separate document. It must include: (a) specific goals of the caretaker including stated measurements of progress toward each goal, the estimated length of participation in the program, and the number of hours of participation per week; (b) educational, training, and employment activities and support services provided by the county agency, including child care; and (c) the participant's obligations and the conditions under which the county will withdraw the services provided;

The contract must be signed and dated by the case manager and participant and may include other terms as desired or needed by either party. In all cases, however, the case manager must assist the participant in reviewing and understanding the contract and must ensure that the caretaker has set forth in the contract realistic goals consistent with the ultimate goal of self-sufficiency for the caretaker's family; and

(5) Develop and refer caretakers to counseling or peer group networks for emotional support while participating in work, education, or training.

(b) In addition to the duties in paragraph (a), for minor parents and pregnant minors, the case manager shall:

(1) Ensure that the contract developed under paragraph (a), clause (4), considers all factors set forth in section 257.33, subdivision 2;

(2) Assess the housing and support systems needed by the caretaker in order to provide the dependent children with adequate parenting. The case manager shall encourage minor parents and pregnant minors who are not living with friends or relatives to live in a group home or foster care setting. If minor parents and pregnant minors are unwilling to live in a group home or foster care setting or if no group home or foster care setting is available, the case manager shall assess their need for training in parenting and independent living skills and when appropriate shall refer them to available counseling programs designed to teach needed skills; and

(3) Inform minor parents or pregnant minors of, and assist them in evaluating the appropriateness of, the high school graduation incentives program under section 126.22, including post-secondary enrollment options, and the employment-related and community-based instruction programs.

(c) A caretaker may request a conciliation conference to attempt to resolve disputes regarding the contents of a contract developed under this section or a housing and support systems assessment conducted under this section. The caretaker may request a hearing pursuant to section 256.045 to dispute the contents of a contract or assessment developed under this section. The caretaker need not request a conciliation conference in order to request a hearing pursuant to section 256.045.

Sec. 26. Laws 1995, First Special Session chapter 3, article 1, section 61, is amended to read:

Sec. 61. [FORMULA ALLOWANCE.]

Notwithstanding the amount of the formula allowance for fiscal year 1997, in Minnesota Statutes, section 124A.22, subdivision 2, the commissioner shall use the amount of the formula allowance minus $300 for fiscal year 1997 in determining the payments under Minnesota Statutes, sections 123.3514, subdivisions 6 and 8; 6b; and 124A.02, subdivision 21; 126.22; and 126.23.

Sec. 27. Laws 1995, First Special Session chapter 3, article 4, section 29, subdivision 10, is amended to read:

Subd. 10. [FAMILY COLLABORATIVES.] For family collaboratives:

$6,000,000 ..... 1996

$6,000,000 ..... 1997

Of the appropriation, $150,000 each year is for grants targeted to assist in providing collaborative children's library service programs. To be eligible, a family collaborative grant recipient must collaborate with at least one public library and one children's or family organization. The public library must involve the regional public library system and multitype library system to which it belongs in the planning and provide for an evaluation of the program.

No more than 2.5 percent of the appropriation is available to the state to administer and evaluate the grant program.

Any balance in the first year does not cancel but is available in the second year. An applicant receiving a grant may carry forward any unencumbered money.

Sec. 28. Laws 1995, First Special Session chapter 3, article 8, section 25, subdivision 18, is amended to read:

Subd. 18. [CAREER TEACHER FAMILY CONNECTIONS AID.] For career teacher family connections aid according to Minnesota Statutes, section 124.276:

$125,000 ..... 1996

$125,000 $225,000 ..... 1997

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

Notwithstanding Minnesota Statutes, section 124.276, subdivision 2, the aid may be used for the increased district contribution to the teachers' retirement association and to FICA resulting from the portion of the teaching contract that is in addition to the standard teaching contract of the district.

Sec. 29. [MINNESOTA COMMISSION ON NATIONAL AND COMMUNITY SERVICE.]

The Minnesota commission on national and community service retains responsibility for implementing federal programs under the federal commission on national and community service. Responsibilities of the Minnesota commission on national and community service may only be transferred to the governor's workforce development council under Minnesota Statutes 1995 Supplement, section 268.665 after the attorney general has certified that the workforce development council meets all the federal requirements for the commission on national and community service.

Notwithstanding Minnesota Statutes 1995 Supplement, section 121.705, if the Minnesota commission on national and community service retains responsibility for federal programs under this section, it also retains responsibility for administering the youth works program and state appropriations made for the youth works program under Laws 1995, First Special Session chapter 3, article 4, section 29, subdivisions 19 and 20.

Sec. 30. [PILOT AFTER-SCHOOL ENRICHMENT PROGRAMS.]

Subdivision 1. [ESTABLISHMENT.] A pilot after-school enrichment grant program is established to provide implementation grants to community collaboratives for designated neighborhoods of Minneapolis and St. Paul, and for selected areas outside Minneapolis and St. Paul. The commissioner of children, families, and learning shall develop criteria for after-school enrichment programs in up to three qualifying neighborhoods in each of the cities, and selected neighborhoods in the rest of the state. Qualifying neighborhoods are designated by the commissioner under subdivision 2.

Subd. 2. [QUALIFYING NEIGHBORHOODS.] In Minneapolis, the neighborhoods that qualify for designation are the Near North Side, Hawthorne, Sumner-Glenwood, Powderhorn Central, Whittier and Phillips. In St. Paul, neighborhoods that qualify for designation are Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons Bluff, and the West Side.

Subd. 3. [PROGRAM OUTCOMES.] The outcomes of the after-school enrichment programs are to:

(1) increase the number of children participating in after-school programs who live in the designated neighborhoods;

(2) reduce the juvenile crime rate in the designated neighborhoods;

(3) reduce the number of police calls involving juveniles during the afternoon after-school hours;

(4) increase school attendance;

(5) reduce the number of school suspensions;

(6) increase the number of youth engaged in community service;

(7) increase youth academic achievement; and

(8) increase the skills of youth in computers, the arts, athletics, and other activities.

Subd. 4. [PLAN.] By July 1, 1996, a community collaborative, consisting of representatives of community organizations and representatives of the county, city, and school district, shall develop a plan for an after-school enrichment program for children ages nine through 13 who reside in the designated neighborhood to be served. Reading mentorship programs may be included in the plan. Each community collaborative developing a plan shall identify points of collaboration with other organizations and resources available to implement an after-school enrichment program. The plan shall include:

(1) collaboration and leverage of community resources that exist and are effective;

(2) creative outreach to the children;

(3) collaboration of grassroots organizations;

(4) local governments and schools acting as resources;

(5) community control over the design of the enrichment program;

(6) the availability of enrichment activities for a minimum of five days per week after school with future plans to extend to seven days per week; and

(7) identification of the sources of nonstate funding to extend the programming beyond the period of the pilot grant.

Subd. 5. [PLAN APPROVAL; GRANTS.] (a) A plan developed by a community collaborative under subdivision 4 shall be submitted to the commissioner of children, family, and learning. When a collaborative's plan is approved by the commissioner, the commissioner shall award a grant to the community collaborative for the implementation of the plan.

Sec. 31. [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.]

Subdivision 1. [POLICY.] The legislature acknowledges the importance of teaching students in a regular classroom setting to the extent possible. Students in an educational setting are expected to behave in a manner that is appropriate for learning to take place. When students fail to meet behavioral expectations, school discipline policies should penalize students' inappropriate behavior, with the ultimate goal of returning students to their regular classrooms. Schools should involve parents in collaborative efforts to alter students' inappropriate classroom behavior. Schools and parents should find ways to ensure that students' inappropriate behavior does not become chronic, necessitating long-term intervention and the need for special services.

Subd. 2. [ESTABLISHMENT.] A grant program for fiscal year 1997 is established to develop, implement, and evaluate school discipline policies, consistent with the pupil fair dismissal act under Minnesota Statutes, sections 127.26 to 127.48. Discipline policies, developed under this section, should be designed to enable students to

successfully return to the regular classroom setting after being sanctioned for inappropriate behavior. Discipline policies should focus on early intervention strategies to limit the need for providing regular education students with additional special programs and 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 mediate issues relating to district or school site codes of conduct that apply to students who are removed from a class or activity period;

(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 disciplinary measures, 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 grants of up to $50,000. Grant recipients must be located throughout the state. The commissioner shall make grant awards based on the district's disciplinary experience 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.

Subd. 6. [EVALUATION.] The commissioner shall evaluate the grant sites and selected control sites to determine the impact of the constructive discipline policy grant program on measures of student behavior and performance, including, but not limited to, student achievement and attendance, and the impact of the program on the school site, the student body, the classroom, 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, 1998, and a final report by February 1, 2000, on the effectiveness and impact of discipline policies.

Sec. 32. [ADULT BASIC EDUCATION STUDY.]

The legislature finds that increased adult literacy and access to educational opportunities are necessary for undereducated adults to more fully participate in their families and to become self-sufficient contributors to their communities and the Minnesota economy. There is a growing recognition that basic education provides the opportunity for adults to learn the skills necessary for fuller participation. To examine the current and future needs for adult basic education and the resources necessary to meet these identified needs, the commissioner of the department of children, families, and learning shall conduct or contract for a study of adult basic education. The study, at a minimum, must include the following:

(1) an examination of the adult basic education formula under section 124.26;

(2) the percentage of full adult basic education formula funding that is prorated and the impact of proration on programming and service delivery;

(3) the hold harmless provision based on an adult basic education project's 1991-1992 state aid, and the impact on program delivery;

(4) the distribution of funds under the adult basic education formula and how closely it matches the need for adult basic education throughout the state;

(5) an inventory of federal, state and local projects and programs with skills and education programming for adults, including education programs operated by the department of corrections for inmates; and

(6) an examination of the changing role for adult basic education with potential changes in income maintenance programs and other aspects of welfare reform.

The commissioner shall report the findings of the study to the chairs of the education committees of the legislature by December 1, 1996. The report must contain recommendations for funding of adult basic education and for consolidation or coordination of adult education programming.

Sec. 33. [SPECIAL COMMUNITY SERVICE LEVY.]

In addition to other levies it is authorized to make each year, independent school district No. 2190, Yellow Medicine East, may levy on the property in the former school district No. 892, Clarkfield, for the costs of operating the district-owned swimming pool in Clarkfield. The proceeds of this levy must be deposited in the district's community service fund. The levy may not exceed the net actual cost operation of the pool in the previous year. Net actual costs are defined as operating costs less operating revenues.

Sec. 34. [APPROPRIATIONS.]

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

Subd. 2. [YOUTH ENRICHMENT GRANTS.] For youth enrichment grants:

$5,000,000 ..... 1996

The commissioner may use up to five percent of this appropriation to provide technical assistance to community organizations.

The commissioner may use up to 20 percent of this appropriation for grants to neighborhoods outside of Minneapolis and St. Paul that meet the criteria established by the commissioner under section 30.

Of the amount for St. Paul, the commissioner may make a grant to independent school district No. 625 for operating and start-up costs of community-based charter schools sponsored by the district.

This appropriation is available until June 30, 1997.

Subd. 3. [DISCIPLINE.] For grants to implement constructive school discipline policies:

$300,000.....1997

Grant recipients may expend the grant proceeds over a three-year period. Of this amount, up to $20,000 is for evaluation under section 31, subdivision 6.

Subd. 4. [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a grant for community-based charter 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.

Subd. 5. [AID FOR CONTRACTED ALTERNATIVE PROGRAMS.] For aid for contracted alternative programs under sections 22 and 23:

$330,000.....1997

The appropriation is 85 percent of the entitlement for fiscal year 1997.

Sec. 35. [EFFECTIVE DATE.]

Section 20 is effective June 30, 1996. Sections 29 and 32 are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 124.239, subdivision 4, is amended to read:

Subd. 4. [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A district that participates in the alternative facilities bonding and levy program is not eligible to levy and cannot receive aid for any capital projects under sections 124.83 and 124.84 for any capital projects funded under this section. A district may levy and receive aid for health and safety environmental management costs and health and safety regulatory, hazard assessment, record keeping, and maintenance programs as defined in section 124.494, subdivision 2, and approved by the commissioner.

Sec. 2. Minnesota Statutes 1995 Supplement, section 124.243, subdivision 2, is amended to read:

Subd. 2. [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) Capital expenditure facilities previous formula revenue for a district equals $128 times its actual pupil units for the school year.

(b) For fiscal years 1996, capital expenditure facilities revenue for a district equals $100 times the district's maintenance cost index times its actual pupil units for the school year.

(c) 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.

(d) 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.

(e) 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.

(f) The revenue in paragraph (b) for a district that operates a program under section 121.585, is increased by an amount equal to $15 times the number of actual pupil units at the site where the program is implemented.

Sec. 3. Minnesota Statutes 1995 Supplement, section 124.2445, is amended to read:

124.2445 [PURCHASE OF CERTAIN EQUIPMENT.]

The board of a school district may issue certificates of indebtedness or capital notes subject to the school district debt limits to purchase vehicles other than school buses, 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. That The sum of the tax levy 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 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.

Sec. 4. Minnesota Statutes 1995 Supplement, 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 124.243, subdivision 6, capital expenditure facilities 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.

(b) Before a district issues bonds under this subdivision, it must publish notice of the intended projects, the amount of the bond issue, and the total amount of district indebtedness.

(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 may be issued in a principal amount, that when combined with interest thereon, will be paid off with not more than 50 percent of current and anticipated revenue for capital facilities under this section or a successor section for the current year plus projected revenue not greater than that of the current year for the next ten years. Once finally authorized, the district must set aside the lesser of the amount necessary to make the principal and interest payments or 50 percent of the current year's revenue for capital facilities under this section or a successor section each year in a separate account until all principal and interest on the bonds is paid. The district must annually transfer this amount from its capital fund to the debt redemption fund. 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 amount of the tax levies for debt service certified for each year for payment of the principal and interest on 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, bonds may be issued in a principal amount, that when combined with interest thereon, will be paid off with not more than 50 percent of current and anticipated revenue for capital facilities under this section or a successive section for the current year plus projected revenue not greater than that of the current year for the next 20 years must be paid off within 20 years of issuance. All the other provisions and limitation of paragraph (d) apply.

Sec. 5. Minnesota Statutes 1994, section 124.91, subdivision 1, is amended to read:

Subdivision 1. [TO LEASE BUILDING OR LAND.] When a district finds it economically advantageous to rent or lease a building or land for any instructional purposes or for school storage or furniture repair, and it determines that the capital expenditure facilities revenues authorized under section sections 124.243 and 124A.22, 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. 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.

Sec. 6. Minnesota Statutes 1994, section 124.91, is amended by adding a subdivision to read:

Subd. 7. [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon application to, and approval by, the commissioner in accordance with the procedures and limits in subdivision 1, a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease real or personal property with an option to purchase under a lease purchase agreement, by which installment contract or lease purchase agreement title is kept by the seller or vendor or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase agreement must not be included in the calculation of net debt for purposes of section 475.53, and does not constitute debt under other law. An election is not required in connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a school district required to have a comprehensive plan for the elimination of segregation whose plan has been determined by the commissioner to be in compliance with the state board of education rules relating to equality of educational opportunity and school desegregation; or

(2) a school district that participates in a joint program for interdistrict desegregation with a district defined in clause (1) if the facility acquired under this subdivision is to be primarily used for the joint program.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease or rent a district-owned building to itself does not apply to levies otherwise authorized by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building or land shall include personal property.

Sec. 7. Minnesota Statutes 1994, section 124.95, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the eligible debt service revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount needed to meet when due the principal and interest payments on the obligations of the district for eligible projects according to subdivision 2, including the amounts necessary for repayment of energy loans according to section 216C.37 or sections 298.292 to 298.298, debt service loans and capital loans, lease purchase payments under section 124.91, subdivisions 2 and 3, alternative facilities levies under section 124.239, subdivision 5, minus

(2) the amount of debt service excess levy reduction for that school year calculated according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 124.2445;

(2) the part of debt service principal and interest paid from the taconite environmental protection fund or northeast Minnesota economic protection trust;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 124.2455.

(c) For purposes of this section, if a preexisting school district reorganized under section 122.22, 122.23, or 122.241 to 122.248 is solely responsible for retirement of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt service equalization aid must be computed separately for each of the preexisting school districts.

Sec. 8. Minnesota Statutes 1995 Supplement, section 124.961, is amended to read:

124.961 [DEBT SERVICE APPROPRIATION.]

(a) $30,054,000 in fiscal year 1996, $27,370,000 $28,162,000 in fiscal year 1997, and $32,200,000 $33,948,000 in fiscal year 1998 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 appropriation includes $4,830,000 $4,970,000 for 1997 and $27,370,000 $28,978,000 for 1998.

(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. 9. Minnesota Statutes 1994, section 128D.11, subdivision 3, is amended to read:

Subd. 3. [NO ELECTION.] Subject to the provisions of subdivisions 7 to 10, the school district may also by a two-thirds majority vote of all the members of its board of education and without any election by the voters of the district, issue and sell in each calendar year general obligation bonds of the district in an amount not to exceed one-half of one five and one-tenth per cent of the net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 1996 2003, an amount not to exceed $7,500,000; with an additional provision that any amount of bonds so authorized for sale in a specific year and not sold can be carried forward and sold in the year immediately following); provided, however, that the board shall submit the list of projects and undertakings to be financed by a proposed issue to the city planning commission as provided in subdivision 10, paragraph (b).

Sec. 10. Minnesota Statutes 1994, section 128D.11, subdivision 5, is amended to read:

Subd. 5. [USE OF PROCEEDS.] The proceeds of the sale of the bonds shall be used only for the rehabilitating, remodeling, expanding, and equipping of existing school buildings and for the acquisition of sites, construction, and equipping of new school buildings, and for acquisition and betterment purposes, and no part of the proceeds shall be used for maintenance.

Sec. 11. Minnesota Statutes 1994, section 128D.11, subdivision 8, is amended to read:

Subd. 8. [NET DEBT LIMIT.] The school district shall not be subject to a net debt in excess of ten 102 percent of the net tax capacity of all taxable property therein.

Sec. 12. Laws 1995, First Special Session chapter 3, article 5, section 20, subdivision 5, is amended to read:

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

$30,054,000..... 1996

$27,370,000 $28,162,000 ..... 1997

The 1996 appropriation includes $30,054,000 for 1996.

The 1997 appropriation includes $27,370,000 $28,162,000 for 1997. This appropriation is 85 percent of the aid entitlement for 1997.

Sec. 13. [136D.93] [REFUNDING BONDS.]

Sections 136D.281, subdivision 8, 136D.741, subdivision 8, and 136D.87, subdivision 8, do not apply to bonds issued solely for refunding purposes.

Sec. 14. Laws 1995, First Special Session chapter 3, article 5, section 20, subdivision 6, is amended to read:

Subd. 6. [PLANNING GRANT.] (a) For a grant to for independent school district Nos. 325, Lakefield; 328, Sioux Valley; 330, Heron Lake-Okabena; 513, Brewster; and 516, Round Lake acting as a joint powers agreement, and neighboring school districts to plan delivery of educational services:

$40,000 ..... 1996

The grant is may also be used to cover costs associated with planning for facility needs for a combined district. The facilities must provide for the location of a significant number of noneducational student and community service programs within the facility students served by these districts. The joint powers group districts must consult with neighboring districts including independent school district Nos. 324, Jackson; 177, Windom; and 518, Worthington, and include facility needs and availability in those districts in the group's planning.

(b) A portion of the appropriation must be used to conduct an independent survey of parents as to their preference for a school of attendance for their children if a single high school is located within this group of districts. The survey of attendance preferences must include the single high school and high schools in neighboring districts.

(c) This appropriation is available until June 30, 1997.

Sec. 15. Laws 1995, First Special Session chapter 3, article 5, section 20, subdivision 7, is amended to read:

Subd. 7. [PRESTON-FOUNTAIN; HARMONY DISTRICT.] For a grant to the new school district comprised of independent school district No. 233, Preston-Fountain, and independent school district No. 228, Harmony:

$70,000 ..... 1996

$70,000.....1997

This grant These grants must be placed in the district's debt redemption fund. The department must reduce the new district debt service levy levies by this amount these amounts.

Debt service equalization aid for fiscal year 1997 shall not be reduced as a result of the grant.

Sec. 16. [APPROVAL FOR DEBT SERVICE EQUALIZATION AID: ROYALTON.]

Notwithstanding Minnesota Statutes, section 124.95, subdivision 2, debt service levy attributable to bonds authorized at an election conducted in 1995 by independent school district No. 485, Royalton, qualifies for debt service equalization aid.

Sec. 17. [HEALTH AND SAFETY REVENUE; HIBBING.]

Notwithstanding Minnesota Statutes, section 124.83, subdivision 6, independent school district No. 701, Hibbing, that has a high school building on the National Historic Register, may use health and safety revenue for the construction of a stair tower with classroom space but only to the extent the revenue is substituted for other expenditures required under orders from the fire marshal.

Sec. 18. [LEVY AUTHORITY.]

Subdivision 1. [DELAVAN.] For property taxes payable in 1997 only, independent school district No. 218, Delavan, or its successor district, may levy up to $97,000 on the property in independent school district No. 218. This levy may be made only if independent school district No. 218 has voted to consolidate with independent school district No. 2148, Blue Earth. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 218.

Subd. 2. [ELMORE.] For property taxes payable in 1997 only, independent school district No. 219, Elmore, or its successor district, may levy up to $116,000 on the property in independent school district No. 219. This levy may be made only if independent school district No. 219 has voted to consolidate with independent school district No. 2148, Blue Earth. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 219.

Subd. 3. [BLUE EARTH.] For property taxes payable in 1997 only, independent school district No. 2148, Blue Earth, or its successor district, may levy up to $58,000 on the property in independent school district No. 2148. This levy may be made only if independent school district No. 2148 has voted to consolidate with independent school districts Nos. 218, Delavan, and 219, Elmore. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 2148.

Subd. 4. [NO REFERENDUM LEVY.] Districts making a levy according to this section may not make a levy according to Minnesota Statutes, section 124A.03.

Sec. 19. [NORTH BRANCH LEASE LEVY.]

Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 124.91, subdivision 1, independent school district No. 138, North Branch, may apply to the commissioner of children, families, and learning to make an additional capital levy under Minnesota Statutes, section 124.91, subdivision 1, to rent or lease a building or land for administrative purposes. The levy may not exceed the amount necessary to obtain space similar in size and quality to the office space vacated for instructional purposes.

Sec. 20. [SCHOOL DISTRICTS; BONDS.]

Subdivision 1. [AUTHORIZATION.] Independent school district No. 316, Greenway-Coleraine, may issue bonds in an aggregate principal amount not exceeding $500,000; and independent school district No. 696, Ely, may issue bonds in an aggregate amount not exceeding $1,000,000; and independent school district No. 701, Hibbing, may issue bonds in an aggregate principal amount not exceeding $2,200,000; and independent school district No. 706, Virginia, may issue bonds in an aggregate principal amount not exceeding $6,000,000; and independent school district No. 2142, St. Louis county, may issue bonds in an aggregate principal amount not exceeding $3,000,000; and independent school district No. 2154, Eveleth-Gilbert, may issue bonds in an aggregate principal amount not exceeding $3,600,000; and independent school district No. 2711, Mesabi East, may issue bonds in an aggregate principal amount not exceeding $800,000 in addition to any bonds already issued or authorized, to provide funds to design, construct, equip, furnish, remodel, rehabilitate, and acquire land for school facilities and buildings, or abate, remove, and dispose of asbestos, polychlorinated biphenyls or petroleum as defined in Minnesota Statutes, section 115C.02, and make repairs related to the abatement, removal, or disposal of these substances. They may spend the proceeds of the bond sale for those purposes and any architect, engineer, and legal fees incidental to those purposes or the sale. The bond shall be authorized, issued, sold, executed, and delivered in the manner provided by Minnesota Statutes, chapter 475, including submission of the proposition to the electors under Minnesota Statutes, section 475.58. After authorization by the electors under Minnesota Statutes, section 475.58, a resolution of the board levying taxes for the payment of bonds and interest on them and pledging the proceeds of the levies for the payment of the bonds and interest on them shall be deemed to be in compliance with the provisions of Minnesota Statutes, chapter 475, with respect to the levying of taxes for their payment.

Subd. 2. [APPROPRIATION.] There is annually appropriated from the distribution of taconite production tax revenues to the taconite environmental protection fund pursuant to Minnesota Statutes, section 298.28, subdivision 11, and to the northeast Minnesota economic protection trust pursuant to section 298.28, subdivisions 9 and 11, in equal shares, an amount sufficient to pay when due 80 percent of the principal and interest on the bonds issued pursuant to subdivision 1. If the annual distribution to the northeast Minnesota economic protection trust is insufficient to pay its share after fulfilling any obligations of the trust under section 298.225 or 298.293, the deficiency shall be appropriated from the taconite environmental protection fund.

Subd. 3. [DISTRICT OBLIGATIONS.] Bonds issued under authority of this section shall be the general obligations of the school district, for which its full faith and credit and unlimited taxing powers shall be pledged. If there are any deficiencies in the amount received pursuant to subdivision 2, they shall be made good by general levies, not subject to limit, on all taxable properties in the district in accordance with Minnesota Statutes, section 475.64. If any deficiency levies are necessary, the school board may effect a temporary loan or loans on certificates of indebtedness issued in anticipation of them to meet payments of principal or interest on the bonds due or about to become due.

Subd. 4. [DISTRICT LEVY.] The school board shall by resolution levy on all property in the school district subject to the general ad valorem school tax levies, and not subject to taxation under Minnesota Statutes, sections 298.23 to 298.28, a direct annual ad valorem tax for each year of the term of the bonds in amounts that, if collected in full, will produce the amounts needed to meet when due 20 percent of the principal and interest payments on the bonds. A copy of the resolution shall be filed, and the necessary taxes shall be extended, assessed, collected, and remitted in accordance with Minnesota Statutes, section 475.61.

Subd. 5. [LEVY LIMITATIONS.] Taxes levied pursuant to this section shall be disregarded in the calculation of any other tax levies or limits on tax levies provided by other law.

Subd. 6. [BONDING LIMITATIONS.] Bonds may be issued under authority of this section notwithstanding any limitations upon the indebtedness of a district, and their amounts shall not be included in computing the indebtedness of a district for any purpose, including the issuance of subsequent bonds and the incurring of subsequent indebtedness.

Subd 7. [TERMINATION OF APPROPRIATION.] The appropriation authorized in subdivision 2 shall terminate upon payment or maturity of the last of those bonds.

Subd. 8. [BOND ISSUE REQUIREMENT.] No bonds may be issued under this section after February 28, 1998, unless they are issued under a contract in effect on or before February 28, 1998.

Subd. 9. [LOCAL APPROVAL.] This section is effective for independent school district No. 316 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and for independent school district No. 696 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and

for independent school district No. 701 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and for independent school district No. 706 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and for independent school district No. 2142 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and for independent school district No. 2154 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3; and for independent school district No. 2711 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 21. [COOK COUNTY SCHOOL DISTRICT BONDS.]

Subdivision 1. [AUTHORIZATION.] Independent school district No. 166, Cook county, may issue bonds in an aggregate principal amount not exceeding $9,240,000.

Subd. 2. [USES; PROCESS.] The bonds authorized under subdivision 1 may be issued in addition to any bonds already issued or authorized. The proceeds of the bonds shall be used to provide funds to design, construct, equip, furnish, remodel, rehabilitate, and acquire land for school facilities and buildings and to pay any architect, engineer and legal fees incidental to those purposes or to the sale of bonds. Except as permitted by this section, the bonds shall be authorized, issued, sold, executed, and delivered in the manner provided by Minnesota Statutes, chapter 475. A referendum on the question of issuing the bonds authorized under subdivision 1 is required. A resolution of the board levying taxes for the payment of the bonds and interest on them shall be deemed to be in compliance with the provisions of Minnesota Statutes, chapter 475 with respect to the levying of taxes for their payment.

Subd. 3. [APPROPRIATION.] There is annually appropriated from the distribution of taconite production tax revenues to the taconite environmental protection fund pursuant to Minnesota Statutes, section 298.28, subdivision 11, and to the northeast Minnesota economic protection trust pursuant to Minnesota Statutes, section 298.28, subdivisions 9 and 11, in equal shares, an amount sufficient to pay when due 70 percent of the principal and interest on the bonds issued under subdivision 1. If the annual distribution to the northeast Minnesota economic protection trust is insufficient to pay its share after fulfilling any obligations of the trust under Minnesota Statutes, section 298.225 or 298.293, the deficiency shall be appropriated from the taconite environmental protection fund.

Subd. 4. [DISTRICT OBLIGATIONS.] Bonds issued under authority of this section shall be the general obligations of the school district, for which its full faith and credit and unlimited taxing powers shall be pledged. If there are any deficiencies in the amount received pursuant to subdivision 3, they shall be satisfied by general levies, not subject to limit, on all taxable properties in the district in accordance with Minnesota Statutes, section 475.74. If any deficiency levies are necessary, the school board may effect a temporary loan or loans on certificates of indebtedness issued in anticipation of them to meet payments of principal or interest on the bonds due or about to become due.

Subd. 5. [DISTRICT LEVY.] The school board of the school district authorized to issue bonds under subdivision 1 shall by resolution levy on all property in the school district subject to the general ad valorem school tax levies, and not subject to taxation under Minnesota Statutes, sections 298.23 to 298.28, a direct annual ad valorem tax for each year of the term of the bonds in amounts that, if collected in full, will produce the amounts needed to meet when due 30 percent of the principal and interest payments on the bonds. A copy of the resolution shall be filed, and the necessary taxes shall be extended, assessed, collected, and remitted in accordance with Minnesota Statutes, section 475.61.

Subd. 6. [LEVY LIMITATIONS.] Taxes levied pursuant to this section shall be disregarded in the calculation of any other tax levies or limits on tax levies provided by other law.

Subd. 7. [BONDING LIMITATIONS.] Bonds may be issued under authority of this section notwithstanding any limitations upon the indebtedness of a district, and their amounts shall not be included in computing the indebtedness of a district for any purpose, including the issuance of subsequent bonds and the incurring of subsequent indebtedness.

Subd. 8. [TERMINATION OF APPROPRIATION.] The appropriation authorized in subdivision 3 shall terminate upon payment or maturity of the last of the bonds issued under this section.

Subd. 9. [BOND ISSUE REQUIREMENT.] No bonds may be issued under this section after February 28, 1998, unless they are issued under a contract in effect on or before February 28, 1998.

Subd. 10. [LOCAL APPROVAL.] This section is effective for independent school district No. 166 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 22. [GRAND RAPIDS SCHOOL DISTRICT BONDS.]

Subdivision 1. [AUTHORIZATION.] Independent school district No. 318, Grand Rapids, may issue bonds in an aggregate principal amount not exceeding $5,600,000, in addition to any bonds already issued or authorized other than bonds authorized in Laws 1992, chapter 499, article 5, section 29, but not issued by February 15, 1996, to provide funds to design, construct, equip, furnish, remodel, rehabilitate, and acquire land for school facilities and buildings. The school district may not issue any of the bonds authorized in this subdivision unless the district expends at least $100,000 of the proceeds of the bonds for capital improvements for the industrial technology program at Big Fork. It may spend the proceeds of the bond sale for those purposes and any architects', engineers', and legal fees incidental to those purposes or the sale. Except as permitted by this section, the bonds shall be authorized, issued, sold, executed, and delivered in the manner provided by Minnesota Statutes, chapter 475. A resolution of the board levying taxes for the payment of the bonds and interest on them as authorized by this section and pledging the proceeds of the levies for the payment of the bonds and interest on them shall be deemed to be in compliance with the provisions of Minnesota Statutes, chapter 475, with respect to the levying of taxes for their payment.

Subd. 2. [APPROPRIATION.] There is annually appropriated from the distribution of taconite production tax revenues to the taconite environmental protection fund pursuant to Minnesota Statutes, section 298.28, subdivision 11, and to the northeast Minnesota economic protection trust pursuant to Minnesota Statutes, section 298.28, subdivisions 9 and 11, in equal shares, an amount sufficient to pay when due 80 percent of the principal and interest on the bonds issued pursuant to subdivision 1. If the annual distribution to the northeast Minnesota economic protection trust is insufficient to pay its share after fulfilling any obligations of the trust under Minnesota Statutes, section 298.225 or 298.293, the deficiency shall be appropriated from the taconite environmental protection fund.

Subd. 3. [DISTRICT OBLIGATIONS.] Bonds issued under authority of this section shall be the general obligations of the school district, for which its full faith and credit and unlimited taxing powers shall be pledged. If there are any deficiencies in the amount received pursuant to subdivision 2, they shall be made good by general levies, not subject to limit, on all taxable properties in the district in accordance with Minnesota Statutes, section 475.64. If any deficiency levies are necessary, the school board may effect a temporary loan or loans on certificates of indebtedness issued in anticipation of them to meet payments of principal or interest on the bonds due or about to become due.

Subd. 4. [DISTRICT LEVY.] The school board shall by resolution levy on all property in the school district subject to the general ad valorem school tax levies, and not subject to taxation under Minnesota Statutes, sections 298.23 to 298.28, a direct annual ad valorem tax for each year of the term of the bonds in amounts that, if collected in full, will produce the amounts needed to meet when due 20 percent of the principal and interest payments on the bonds. A copy of the resolution shall be filed, and the necessary taxes shall be extended, assessed, collected, and remitted in accordance with Minnesota Statutes, section 475.61.

Subd. 5. [LEVY LIMITATIONS.] Taxes levied pursuant to this section shall be disregarded in the calculation of any other tax levies or limits on tax levies provided by other law.

Subd. 6. [BONDING LIMITATIONS.] Bonds may be issued under authority of this section notwithstanding any limitations upon the indebtedness of a district, and their amounts shall not be included in computing the indebtedness of a district for any purpose, including the issuance of subsequent bonds and the incurring of subsequent indebtedness.

Subd. 7. [TERMINATION OF APPROPRIATION.] The appropriation authorized in subdivision 2 terminates upon payment or maturity of the last of those bonds.

Subd. 8. [BOND ISSUE REQUIREMENT.] No bonds may be issued under this section after February 28, 1998, unless they are issued under a contract in effect on or before February 28, 1998.

Subd. 9. [LOCAL APPROVAL.] This section is effective for independent school district No. 318 the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 23. [COOK COUNTY CAPITAL FACILITIES BONDS.]

Notwithstanding Minnesota Statutes 1995 Supplement, section 124.2455, paragraph (d), bonds issued by independent school district No. 166, Cook county, pursuant to Minnesota Statutes, section 124.2455, must be paid off within 20 years of issuance. All the other provisions and limitations of Minnesota Statutes 1995 Supplement, section 124.2455, paragraph (d) apply.

Sec. 24. [BONDS PAID FROM TACONITE PRODUCTION TAX REVENUES.]

Subdivision 1. [REFUNDING BONDS.] The appropriation of funds from the distribution of taconite production tax revenues to the taconite environmental protection tax fund and the northeast Minnesota economic protection fund made by Laws 1988, chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, chapter 604, article 8, section 13, Laws 1992, chapter 499, article 5, section 29, and by sections 18 to 20, shall continue to apply to bonds issued under Minnesota Statutes, chapter 475, to refund bonds originally issued pursuant to those chapters.

Subd. 2. [LOCAL PAYMENTS.] School districts that are required in Laws 1988, chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, chapter 604, article 8, section 13, Laws 1992, chapter 499, article 5, section 29, and by sections 18 to 20, to impose levies to pay debt service on the bonds issued under those provisions to the extent the principal and interest on the bonds is not paid by distributions from the taconite environmental protection fund and the northeast Minnesota economic protection trust, may pay their portion of the principal and interest from any funds available to them. To the extent a school district uses funds other than the proceeds of a property tax levy to pay its share of the principal and interest on the bonds, the requirement to impose a property tax to pay the local share does not apply to the school district.

Sec. 25. [TAXPAYER NOTIFICATION.]

Subdivision 1. [APPLICABILITY.] This section applies only to newly authorized bonding authority granted under section 128D.11, subdivision 3, and applies only to such bonds issued for calendar years 1997 to 2003.

Subd. 2. [NOTICE.] (a) A school board must prepare a notice of the public meeting on the proposed sale of all or any of the bonds and mail the notice to each postal patron residing within the school district. The notice must be mailed at least 15 days but not more than 30 days before the meeting. Notice of the meeting must also be posted in the administrative office of the school district and must be published twice during the 14 days before the meeting in the official newspaper of the city in which the school district is located.

(b) The notice must contain the following information:

(1) the proposed dollar amount of bonds to be issued;

(2) the dollar amount of the levy increase necessary to pay the principal and interest on the newly authorized bonds;

(3) the estimated levy amount and net tax capacity rate necessary to make the debt service payments on any existing outstanding debt;

(4) the projected effects on individual property types; and

(5) the required levy and principal and interest on all outstanding bonds in addition to the bonds proposed under clause (1).

(c) To comply with paragraph (b), clause (4), the notice must show the projected annual dollar increase and net tax capacity rate increase for a representative range of residential homestead, residential nonhomestead, apartments, and commercial-industrial properties located within each state senate district in the school district.

Subd. 3. [BOND AUTHORIZATION.] A school board may vote to issue bonds for calendar years 1997 to 2003 only after complying with the requirements of subdivision 2.

Sec. 26. [ELIGIBLE DEBT SERVICE REVENUE; DULUTH.]

Notwithstanding Minnesota Statutes, section 124.95, subdivision 1, paragraph (a), the eligible debt service revenue for independent school district No. 709, Duluth, shall not be reduced below the amount of the alternative facilities levy under Minnesota Statutes, section 124.239, subdivision 5, paragraph (b), as a result of debt service excess attributable to transfers from the health and safety account to the debt redemption fund approved by the commissioner of children, families, and learning in 1993.

Sec. 27. [SLEEPY EYE.]

In addition to other levies, for taxes payable in 1997 through 2001, independent school district No. 84, Sleepy Eye, may levy a total cumulative amount of up to $66,000 for the costs associated with converting its heating system from district heat to a boiler system.

Sec. 28. [SPECIAL LEVY; KASSON-MANTORVILLE.]

Independent school district No. 204, Kasson-Mantorville, may levy an amount not to exceed $210,000. This levy may be spread over 15 years.

Sec. 29. [EFFECTIVE DATE.]

(a) Sections 6, 13, 14, 17, and 24 are effective the day following final enactment.

(b) Sections 8, 12, and 16 are effective the day following final enactment and apply to debt service aid payments for fiscal year 1997, and thereafter.

(c) Sections 9 and 11 are effective retroactive to August 1, 1994.

(d) Sections 1, 7, 19, and 26 are effective for revenue for fiscal year 1998 and thereafter.

Section 1. Minnesota Statutes 1994, section 123.35, subdivision 19a, is amended to read:

Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL SUPPORT.] (a) No school district shall be required by any type of formal or informal agreement except an agreement to provide building space according to paragraph (f), including a joint powers agreement, or membership in any cooperative unit defined in subdivision 19b, paragraph (d), to participate in or provide financial support for the purposes of the agreement for a time period in excess of one fiscal year, or the time period set forth in this subdivision. Any agreement, part of an agreement, or other type of requirement to the contrary is void.

(b) This subdivision shall not affect the continued liability of a school district for its share of bonded indebtedness or other debt incurred as a result of any agreement before July 1, 1993. The school district is liable only until the obligation or debt is discharged and only according to the payment schedule in effect on July 1, 1993, except that the payment schedule may be altered for the purpose of restructuring debt or refunding bonds outstanding on July 1, 1993, if the annual payments of the school district are not increased and if the total obligation of the school district for its share of outstanding bonds or other debt is not increased.

(c) To cease participating in or providing financial support for any of the services or activities relating to the agreement or to terminate participation in the agreement, the school board shall adopt a resolution and notify other parties to the agreement of its decision on or before February 1 of any year. The cessation or withdrawal shall be effective June 30 of the same year except that for a member of an education district organized under sections 122.91 to 122.95 or an intermediate district organized under chapter 136D, cessation or withdrawal shall be effective June 30 of the following fiscal year. At the option of the school board, cessation or withdrawal may be effective June 30 of the following fiscal year for a district participating in any type of agreement.

(d) Before issuing bonds or incurring other debt, the governing body responsible for implementing the agreement shall adopt a resolution proposing to issue bonds or incur other debt and the proposed financial effect of the bonds or other debt upon each participating district. The resolution shall be adopted within a time sufficient to allow the school board to adopt a resolution within the time permitted by this paragraph and to comply with the statutory deadlines set forth in sections 122.895, 125.12, and 125.17. The governing body responsible for implementing the agreement shall notify each participating school board of the contents of the resolution. Within 120 days of receiving the resolution of the governing body, the school board of the participating district shall adopt a resolution stating:

(1) its concurrence with issuing bonds or incurring other debt;

(2) its intention to cease participating in or providing financial support for the service or activity related to the bonds or other debt; or

(3) its intention to terminate participation in the agreement.

A school board adopting a resolution according to clause (1) is liable for its share of bonded indebtedness or other debt as proposed by the governing body implementing the agreement. A school board adopting a resolution according to clause (2) is not liable for the bonded indebtedness or other debt, as proposed by the governing body, related to the services or activities in which the district ceases participating or providing financial support. A school board adopting a resolution according to clause (3) is not liable for the bonded indebtedness or other debt proposed by the governing body implementing the agreement.

(e) After July 1, 1993, a district is liable according to paragraph (d) for its share of bonded indebtedness or other debt incurred by the governing body implementing the agreement to the extent that the bonds or other debt are directly related to the services or activities in which the district participates or for which the district provides financial support. The district has continued liability only until the obligation or debt is discharged and only according to the payment schedule in effect at the time the governing body implementing the agreement provides notice to the school board, except that the payment schedule may be altered for the purpose of refunding the outstanding bonds or restructuring other debt if the annual payments of the district are not increased and if the total obligation of the district for the outstanding bonds or other debt is not increased.

(f) A school district that is a member of a cooperative unit as defined in subdivision 19b, paragraph (d), may obligate itself to participate in and provide financial support for an agreement with a cooperative unit to provide school building space for a term not to exceed two years with an option on the part of the district to renew for an additional two years.

Sec. 2. Minnesota Statutes 1994, section 123.3514, subdivision 9, is amended to read:

Subd. 9. [EXCEPTION; INTERMEDIATE DISTRICTS.] A secondary pupil who is a resident of a member district of an intermediate district, as defined in section 136C.02, subdivision 7 136D.01, may not enroll in that intermediate district's vocational program as a post-secondary pupil under this section when the intermediate district operates a secondary program at a college facility and secondary students have access to the post-secondary curriculum and receive high school and college credit for successfully completing the program.

Sec. 3. Laws 1995, First Special Session chapter 3, article 6, section 17, subdivision 2, is amended to read:

Subd. 2. [SINGLE BOARD.] The districts shall provide in the enhanced pairing agreement that the governance of the districts will be by the combined membership of the separate boards acting as a single board for purposes of quorum and passing resolutions. A quorum must include a minimum of one member from each of the separate boards. The membership of the separate boards may be reduced to five four members in a manner consistent with Minnesota Statutes, section 123.33, subdivision 1. The actions reserved for the separate boards shall be ratification of amendments to the agreement, serving a notice of withdrawal from the agreement, and other items reserved for the separate boards as defined in the agreement.

Sec. 4. Laws 1995, First Special Session chapter 3, article 6, section 17, subdivision 4, is amended to read:

Subd. 4. [FINANCIAL.] (a) Fiscal operations shall be merged under the enhanced pairing agreement, and the single board shall be the fiscal agent to meet reporting requirements. The department of education children, families, and learning shall assign a single identification number to apply to the districts subject to the agreement. Aid entitlements and levy limitations shall be the sum of the amounts computed separately for each of the districts participating in the enhanced pairing agreement. Levies shall be made jointly except for levies under Minnesota Statutes, sections 124A.03 and 124.97 by the single board and shall be spread on all taxable property in the districts participating in the enhanced pairing agreement. Districts subject to the agreement shall be considered a single independent school district for purposes of fees or dues assessments.

(b) Notwithstanding paragraph (a), the single board may spread a levy under Minnesota Statutes, section 124A.03, approved before January 1, 1996, and levies under sections 124.2714, 124.83, 124.84, and 124.97, on the property which is taxable in each school district participating in the enhanced pairing agreement according to the separate levy limitations computed for each district. The single board shall certify to the county auditor and the department of children, families, and learning the amount of the levy to be spread on the taxable property in each district according to this paragraph.

(c) Title to all the unattached property and all cash reserves of any district subject to the enhanced pairing agreement shall become the property of the single board unless otherwise provided for in the agreement. All legally valid and enforceable claims and contract obligations pass to the single board. For purposes of litigation, the districts subject to the agreement may be recognized singly or jointly. If the agreement dissolves or a board withdraws from the agreement, the commissioner shall divide assets and liabilities of the single board proportionately based on the weighted average daily membership over the last three years.

Sec. 5. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4a. [REFERENDUM REVENUE.] (a) The single board shall submit the question of authorizing referendum revenue under Minnesota Statutes, section 124A.03, to the voters of the districts subject to the agreement. A majority of those voting in the affirmative on the question is sufficient to authorize the referendum revenue. The single board must certify the vote of the election.

(b) As of the effective date of the dissolution of the enhanced pairing agreement, the authorization for all referendum revenues under Minnesota Statutes, section 124A.03, previously approved by the voters of the districts subject to the agreement is canceled.

Sec. 6. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4b. [REFERENDUM; DEBT.] The single board shall submit the question of authorizing bonded debt to the voters of the districts subject to the agreement. The question submitted shall state the total amount of funding needed from all sources. A majority of those voting in the affirmative on the question is sufficient to authorize the bonded debt. The single board must certify the vote of the election and authorize the school boards to issue the bonds on public sale in accordance with Minnesota Statutes, chapter 475.

Sec. 7. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4c. [DATA REPORTING.] (a) For purposes of computing aid entitlements and levy limitations for the school districts participating in the enhanced pairing agreement, the commissioner must allocate combined financial data among the participating school districts based on the number of actual pupil units in each school district in the year for which financial data are allocated.

(b) Notwithstanding paragraph (a), if requested by the single board, the commissioner may allocate financial data among participating school districts based on estimates of actual expenditures for projects or services by school district.

Sec. 8. [SCHOOL BOARD ELECTION.]

Subdivision 1. [SPECIFYING AN ELECTION PROCESS.] Notwithstanding any language to the contrary in Minnesota Statutes, chapter 205A, or other statutory language to the contrary governing school district consolidation and board formation, the election of school board members for a newly consolidated district comprised of independent school district No. 437, Argyle, and independent school district No. 443, Stephen, shall be described in this section.

Subd. 2. [1997 GENERAL ELECTION.] At the 1997 general election, the terms of four members of the transition board shall expire and two school board members shall be elected to four-year terms. One member shall be elected from the area of the former independent school district No. 437, Argyle, and one shall be elected from the area of the former independent school district No. 443, Stephen.

Subd. 3. [1999 GENERAL ELECTION.] At the 1999 general election, the terms of six members of the transition board shall expire and three school board members shall be elected to four-year terms. One member shall be elected from the former independent school district No. 437, Argyle, and one shall be elected from the area of the former independent school district No. 443, Stephen. One member shall be elected at large for a four-year term from the newly created district.

Subd. 4. [2001 GENERAL ELECTION.] At the 2001 general election, the terms of the two school board members elected in 1997 to four-year terms shall expire and two school board members shall be elected. One member shall be elected from the area of the former independent school district No. 437, Argyle, and one shall be elected from the area of the former independent school district No. 443, Stephen. Also at the 2001 general election, the terms of the two school board members elected in 1996 to five-year terms shall expire and one school board member shall be elected at large to a four-year term from the newly created district.

Subd. 5. [2003 GENERAL ELECTION AND THEREAFTER.] At the 2003 general election and thereafter, all school board members whose terms expire shall be elected at large to four-year terms from the newly created district.

Subd. 6. [BOARD SEATS; APPLICABLE PROVISIONS.] (a) The transitional board shall determine which board seats expire at each election.

(b) At the end of the transition period, the statutory provisions governing board formation and election and Minnesota Statutes, chapter 205A, shall apply.

Sec. 9. [LEVY CALCULATION.]

Levy calculations under section 4 are effective for taxes payable in 1996 and later. The commissioner of the department of children, families, and learning shall adjust levy calculations as necessary to be consistent with section 2.

Sec. 10. [APPROPRIATION.]

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

Subd. 2. [CROW RIVER AND MEEKER AND WRIGHT SPECIAL EDUCATION COOPERATIVES.] For a grant to special education cooperatives No. 52-937, Crow River and No. 52-938, Meeker and Wright, for handicapped accessibility improvements to conform to the Americans with Disabilities Act and for code compliance in school building space for the students served by the cooperatives.

$ 100,000 ..... 1997

Sec. 11. [EFFECTIVE DATE.]

Section 9 is effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, 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) Assessments used to measure knowledge required by all students for graduation must be developed according to the most current version of professional standards for educational testing. 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;

(2) any state action regarding the rule must evidence consideration of school district autonomy; and

(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.

(c) (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, including 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.

(d) (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.

(e) (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. 2. [121.1115] [SYSTEM ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS.]

Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC REPORTING.] Consistent with the state board of education process to adopt a results-oriented graduation rule under section 121.11, subdivision 7c, the state board of education and the department of children, families, and learning, in consultation with education and other system stakeholders, shall establish a coordinated and comprehensive system of educational accountability and public reporting that promotes higher academic achievement.

Subd. 2. [STATISTICAL ADJUSTMENTS.] In developing policies and assessment processes to hold schools and school districts accountable for high levels of academic standards, including the profile of learning, the commissioner shall aggregate student data over time to report student performance levels measured at the school district, regional, or statewide level. When collecting and reporting the data, the commissioner shall: (1) acknowledge the impact of significant demographic factors such as residential instability, the number of single parent families, parents' level of education, and parents' income level on school outcomes; and (2) organize and report the data so that state and local policymakers can understand the educational implications of changes in districts' demographic profiles over time. Any report the commissioner disseminates containing summary data on student performance must integrate student performance and the demographic factors that strongly correlate with that performance.

Sec. 3. [123.97] [FINDINGS; IMPROVING INSTRUCTION AND CURRICULUM.]

The legislature finds that a process is needed to enable school boards and communities to decide matters related to planning, providing, and improving education instruction and curriculum in the context of the state's high school graduation standards. The process should help districts evaluate the impact of instruction and curriculum on students' abilities to meet graduation standards, use evaluation results to improve instruction and curriculum, and determine services that districts and other public education entities can provide collaboratively with institutions including families and private or public organizations and agencies. The legislature anticipates that a highly focused public education strategy will be an integral part of each district's review and improvement of instruction and curriculum.

Sec. 4. [123.972] [SCHOOL DISTRICT PROCESS.]

Subdivision 1. [DEFINITIONS.] For the purposes of sections 123.97 and 123.972, the following terms have the meanings given them.

(a) "Instruction" means methods of providing learning experiences that enables a student to meet graduation standards.

(b) "Curriculum" means written plans for providing students with learning experiences that lead to knowledge, skills, and positive attitudes.

Subd. 2. [ADOPTING POLICIES.] (a) A school board shall adopt annually a written policy that includes the following:

(1) district goals for instruction and curriculum;

(2) a process for evaluating each student's progress toward meeting graduation standards and identifying the strengths and weaknesses of instruction and curriculum affecting students' progress;

(3) a system for periodically reviewing all instruction and curriculum;

(4) a plan for improving instruction and curriculum; and

(5) an instruction plan that includes education effectiveness processes developed under section 121.608 and integrates instruction, curriculum, and technology.

Subd. 3. [INSTRUCTION AND CURRICULUM ADVISORY COMMITTEE.] Each school board shall establish an instruction and curriculum advisory committee to ensure active community participation in all phases of planning and improving the instruction and curriculum affecting state graduation standards. A district advisory committee, to the extent possible, shall reflect the diversity of the district and its learning sites, and shall include teachers, parents, support staff, pupils, and other community residents. The district may establish building teams as subcommittees of the district advisory committee under subdivision 4. The district advisory committee shall recommend to the school board districtwide education standards, assessments, and program evaluations. Learning sites may expand upon district evaluations of instruction, curriculum, assessments, or programs. Whenever possible, parents and other community residents shall comprise at least two-thirds of advisory committee members.

Subd. 4. [BUILDING TEAM.] A school may establish a building team to develop and implement an education effectiveness plan to improve instruction and curriculum. The team shall advise the board and the advisory committee about developing an instruction and curriculum improvement plan that aligns curriculum, assessment of student progress in meeting state graduation standards, and instruction.

Subd. 5. [REPORT.] (a) By October 1 of each year, the school board shall use standard statewide reporting procedures the commissioner develops and adopt a report that includes the following:

(1) student performance goals for meeting state graduation standards adopted for that year;

(2) results of local assessment data, and any additional test data;

(3) the annual school district improvement plans; and

(4) information about district and learning site progress in realizing previously adopted improvement plans.

(b) The school board shall publish the report in the local newspaper with the largest circulation in the district or by mail. The board shall make a copy of the report available to the public for inspection. The board shall send a copy of the report to the commissioner of children, families, and learning by October 15 of each year.

(c) The title of the report shall contain the name and number of the school district and read "Annual Report on Curriculum, Instruction, and Student Performance." The report must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the committee.

Subd. 6. [STUDENT EVALUATION.] The school board annually shall provide high school graduates or GED recipients who receive a diploma or its equivalent from the school district with an opportunity to report to the board on the following:

(1) the quality of district instruction, curriculum, and services;

(2) the quality of district delivery of instruction, curriculum, and services;

(3) the utility of district facilities; and

(4) the effectiveness of district administration.

Subd. 7. [PERIODIC REPORT.] Each school district shall periodically ask affected constituencies about their level of satisfaction with school. The district shall include the results of this evaluation in the report required under subdivision 5.

Subd. 8. [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At least once every two years, the district report shall include an evaluation of the district testing programs, according to the following:

(1) written objectives of the assessment program;

(2) names of tests and grade levels tested;

(3) use of test results; and

(4) implementation of an assurance of mastery program.

Sec. 5. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION REVENUE.] General education revenue shall be paid to a charter school as though it were a school district. 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 revenue as though the school were a school district.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 1a, is amended to read:

Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue shall be paid to a charter school that provides transportation services according to section 120.064, subdivision 15, as though it were a school district according to this subdivision. Transportation aid shall equal transportation revenue.

(a) For the first two years that In addition to the revenue under subdivision 1, a charter school is providing transportation services, the regular transportation allowance for the charter school shall be equal to the regular transportation allowance for the school district in which the charter school is located. For the third year of transportation services and later fiscal years, the predicted base cost for the charter school shall be equal to the predicted base cost for the school district in which the charter school is located shall receive general education aid for each pupil unit equal to the sum of $170, plus the transportation sparsity allowance for the school district in which the charter school is located, plus the transportation transition allowance for the school district in which the charter school is located.

(b) For the first two years that a charter school is providing transportation services, the nonregular special programs transportation revenue equals the charter school's actual cost in the current school year for nonregular transportation services, minus the amount of regular transportation revenue attributable to FTE's in the handicapped category in the current school year for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8. For the third year of transportation services and later fiscal years, the nonregular special programs transportation revenue shall be computed according to section 124.225, subdivision 7d, paragraph (b) 14.

Sec. 7. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 2, is amended to read:

Subd. 2. [CAPITAL EXPENDITURE EQUIPMENT USE OF TOTAL OPERATING CAPITAL REVENUE.] Capital expenditure equipment aid shall be paid to a charter school according to section 124.245, subdivision 6, as though it were a school district.

Capital expenditure equipment aid shall equal capital expenditure equipment revenue. Notwithstanding section 124.244 124A.22, subdivision 4 11, a charter school may use the total operating capital revenue for any purpose related to the school.

Sec. 8. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 3, is amended to read:

Subd. 3. [SPECIAL EDUCATION AND LIMITED ENGLISH PROFICIENCY AID.] Special education aid shall be paid to a charter school according to section 124.32 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 as though it were a cooperative, as provided in section 124.321, subdivision 2, paragraph (a), clauses (1) and (3). The districts of residence shall levy as though they were participating in a cooperative, as provided in section 124.321, subdivision 3.

Sec. 9. Minnesota Statutes 1994, section 124.311, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE DISTRICTS.] To be eligible to receive assurance of mastery revenue, a district must have a policy adopted according to section 126.67, subdivision 3a, that identifies the direct instructional services to be used to assure that individual pupils master the learner outcomes in communications and mathematics local process to review curriculum and instruction.

Sec. 10. Minnesota Statutes 1994, section 124.311, subdivision 3, is amended to read:

Subd. 3. [ELIGIBLE PUPILS.] A pupil is eligible to receive services provided with assurance of mastery revenue if the pupil has not demonstrated mastery of progress toward mastering learner outcomes in communications or mathematics, or both the required graduation standards, after receiving instruction that was designed to enable the pupil to master make progress toward mastering the learner outcomes required graduation standards in a regular classroom setting. To determine pupil eligibility, a district must use the learner outcomes and the evaluation a process, adopted by the school board under section 126.666, subdivision 1, paragraph (a), clauses (2) and (3) to review curriculum and instruction, for the subjects and at the grade level at which the district uses the revenue.

Sec. 11. Minnesota Statutes 1994, section 124.311, subdivision 7, is amended to read:

Subd. 7. [DISTRICT REPORT.] A district that receives assurance of mastery revenue shall include the following in the a report required by section 126.666, subdivision 4:

(a) (1) a summary of initial assessment results used to determine pupil eligibility to receive instructional services must be included. The summary must include:

(1) a description of the assessment device used;

(2) the number of pupils who were assessed; and

(3) the number of pupils who were determined to be eligible to receive services.;

(b) (2) a description of the services provided to eligible pupils must be included.; and

(c) (3) a summary of assessment results for eligible pupils obtained after providing the services must be included.

Sec. 12. Minnesota Statutes 1994, section 126.83, is amended to read:

126.83 [SECONDARY CREDIT FOR EIGHTH GRADE STUDENTS.]

A student in eighth grade who satisfactorily completes at least 120 hours of instruction in a high school course is eligible to shall receive secondary course credit and the credit shall count toward the student's graduation requirements. This section expires August 1, 1996.

Sec. 13. Laws 1995, First Special Session chapter 3, article 7, section 5, subdivision 4, is amended to read:

Subd. 4. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT PROGRAM GRANTS.] For year-round school/extended week or day pilot program grants:

$1,800,000 ..... 1996

$500,000 is for a grant to independent school district No. 624, White Bear Lake.

$500,000 is for a grant to independent school district No. 833, South Washington county.

$100,000 is for a grant to independent school district No. 911, Cambridge.

$300,000 is for a grant to independent school district No. 625, St. Paul.

$400,000 is for grants to two or more rural school districts selected by the commissioner of education children, families, and learning.

This appropriation is available until June 30, 1997.

Sec. 14. [EFFECTIVE DATE.]

Section 13 is effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 123.932, subdivision 1b, is amended to read:

Subd. 1b. "Textbook" means any book or book substitute which a pupil uses as a text or text substitute in a particular class or program in the school regularly attended and a copy of which is expected to be available for the individual use of each pupil in this class or program, which book or book substitute or text or text substitute shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf form, intended for use as a principal source of study material for a given class or a group of students. The term includes only such secular, neutral and nonideological textbooks as are available and are, used by, or of benefit to Minnesota public school pupils.

Sec. 2. Minnesota Statutes 1994, section 123.932, subdivision 1c, is amended to read:

Subd. 1c. "Standardized tests" means standardized tests and scoring services which are provided by commercial publishing organizations or the state and which are in use in the public schools of Minnesota to measure the progress of pupils in secular subjects.

Sec. 3. Minnesota Statutes 1994, section 123.932, subdivision 1e, is amended to read:

Subd. 1e. "Individualized instructional or cooperative learning materials" means educational materials which:

(a) are designed primarily for individual pupil use or use by pupils in a cooperative learning group in a particular class or program in the school the pupil regularly attends;

(b) are secular, neutral, nonideological and not capable of diversion for religious use; and

(c) are available and are, used by, or of benefit to Minnesota public school pupils.

Subject to the requirements in clauses (a), (b), and (c), "individualized instructional or cooperative learning materials" include, but are not limited to, the following if they do not fall within the definition of "textbook" in subdivision 1b: published materials; periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic works; film strips; prepared slides; prerecorded video programs; prerecorded tapes, cassettes and other sound recordings; manipulative materials; desk charts; games; study prints and pictures; desk maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia systems; prepared instructional computer software programs; and prerecorded film cartridges choral and band sheet music; and CD Rom.

"Individualized instructional or cooperative learning materials" do not include the following: chemicals; wall maps; wall charts; pencils, pens or crayons; notebooks; blackboards; chalk and erasers; duplicating fluids; paper; 16 mm films; unexposed films; blank tapes, cassettes or videotape; and instructional equipment, instructional hardware, or ordinary daily consumable classroom supplies.

Sec. 4. Minnesota Statutes 1994, section 123.932, subdivision 11, is amended to read:

Subd. 11. "Health services" means physician, dental, nursing or optometric services provided to pupils and health supplies brought to the site by the health professional for pupil usage in the field of physical or mental health; provided the term does not include direct educational instruction, services which are required pursuant to sections 120.17 and 120.1701, or services which are eligible to receive special education aid pursuant to section 124.32.

Sec. 5. Minnesota Statutes 1994, section 123.933, as amended by Laws 1995, First Special Session chapter 3, article 16, section 13, is amended to read:

123.933 [TEXTBOOKS, INDIVIDUAL INSTRUCTION OR COOPERATIVE LEARNING MATERIAL, STANDARD TESTS.]

Subdivision 1. [PROVISION.] The state board of education shall promulgate rules under the provisions of chapter 14 requiring that in each school year, based upon formal requests by or on behalf of nonpublic school pupils in a nonpublic school, the local districts or intermediary service areas shall purchase or otherwise acquire textbooks, individualized instructional or cooperative learning materials, and standardized tests and loan or provide them for use by children enrolled in that nonpublic school. These textbooks, individualized instructional or cooperative learning materials, and standardized tests shall be loaned or provided free to the children for the school year for which requested. The loan or provision of the textbooks, individualized instructional or cooperative learning materials, and standardized tests shall be subject to rules prescribed by the state board of education.

Subd. 2. [TITLE.] The title to textbooks, individualized instructional or cooperative learning materials, and standardized testing materials shall remain in the servicing school district or intermediary service area, and possession or custody may be granted or charged to administrators of the nonpublic school attended by the nonpublic school pupil or pupils to whom the textbooks, individualized instructional or cooperative learning materials, or standardized tests are loaned or provided.

Subd. 3. [COST OF TEXTBOOKS; LIMITATION.] (a) The cost per pupil of the textbooks, individualized instructional or cooperative learning materials, and standardized tests provided for in this section for each school year shall not exceed the statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota public elementary and secondary schools for textbooks, individualized instructional materials and standardized tests as computed and established by the department of children, families, and learning by March 1 of the preceding school year from the most recent public school year data then available.

(b) The cost computed in clause (a) shall be increased by an inflation adjustment equal to the percent of increase in the formula allowance, pursuant to section 124A.22, subdivision 2, from the second preceding school year to the current school year.

(c) The commissioner shall allot to the school districts or intermediary service areas the total cost for each school year of providing or loaning the textbooks, individualized instructional or cooperative learning materials, and standardized tests for the pupils in each nonpublic school. The allotment shall not exceed the product of the statewide average expenditure per pupil, according to clause (a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils who make requests pursuant to this section and who are enrolled as of September 15 of the current school year.

Sec. 6. Minnesota Statutes 1994, section 123.935, subdivision 2, is amended to read:

Subd. 2. Health services may be provided to nonpublic school pupils pursuant to this section at a public school, a neutral site, the nonpublic school or any other suitable location. Guidance and counseling services may be provided to nonpublic school pupils pursuant to this section only at a public school or a neutral site. District or intermediary service area personnel and representatives of the nonpublic school pupils receiving pupil support services shall hold an annual consultation regarding the type of services, provider of services, and the location of the provision of these services. The district board or intermediary service area governing board shall make the final decision on the location of the provision of these services.

Sec. 7. Minnesota Statutes 1994, section 123.935, subdivision 7, is amended to read:

Subd. 7. [NONPUBLIC EDUCATION COUNCIL.] (a) The commissioner shall appoint a 15-member council on nonpublic education. The 15 members shall represent various areas of the state, represent various methods of providing nonpublic education, and shall be knowledgeable about nonpublic education. The compensation, removal

of members, filling of vacancies, and terms are governed by section 15.0575. The council shall not expire. The council shall advise the commissioner and the state board on issues affecting nonpublic school matters under this section education and nonpublic schools. The council may recognize educational accrediting agencies, for the sole purpose of sections 120.101, 120.102, and 120.103. When requested by the commissioner or the state board, the council may submit its advice about other nonpublic school matters.

(b) A parent or guardian of a nonpublic school pupil or a nonpublic school may file a complaint about services provided under sections 123.931 to 123.937 with the nonpublic education council. The council may review the complaint and make a recommendation for resolution to the commissioner.

Sec. 8. Minnesota Statutes 1994, section 124.916, subdivision 4, is amended to read:

Subd. 4. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year special school district No. 1, Minneapolis, may make an additional levy not to exceed the amount raised by a net tax rate of .10 percent times the adjusted net tax capacity for taxes payable in 1991 and thereafter of the property in the district for the preceding year. The proceeds may be used only to subsidize health insurance costs for eligible teachers as provided in this section.

"Eligible teacher" means a retired teacher who was a basic member of the Minneapolis teachers retirement fund association, who retired before May 1, 1974, or who had 20 or more years of basic member service in the Minneapolis teacher retirement fund association and retired before June 30, 1983, and who is not eligible to receive the hospital insurance benefits of the federal Medicare program of the Social Security Act without payment of a monthly premium. The district shall notify eligible teachers that a subsidy is available. To obtain a subsidy, an eligible teacher must submit to the school district a copy of receipts for health insurance premiums paid. The school district shall disburse the health insurance premium subsidy to each eligible teacher according to a schedule determined by the district, but at least annually. An eligible teacher may receive a subsidy up to an amount equal to the lesser of 90 percent of the cost of the eligible teacher's health insurance or up to 90 percent of the cost of the number two qualified plan of health coverage for individual policies made available by the Minnesota comprehensive health association under chapter 62E.

If funds remaining from the previous year's health insurance subsidy levy, minus the previous year's required subsidy amount, are sufficient to pay the estimated current year subsidy, the levy must be discontinued until the remaining funds are estimated by the school board to be insufficient to pay the subsidy.

This subdivision does not extend benefits to teachers who retire after June 30, 1983, and does not create a contractual right or claim for altering the benefits in this subdivision. This subdivision does not restrict the school district's right to modify or terminate coverage under this subdivision.

Sec. 9. [124C.77] [ENDOWED CHAIR.]

Subdivision 1. [PURPOSE.] The purpose of the endowed chair program is to increase curriculum offerings and learning experiences available to students.

Subd. 2. [ELIGIBILITY.] A school site, represented by the school site council or, if no site council exists, the principal or lead teacher, and the party interested in endowing a chair may enter into an agreement for an endowed chair for no longer than one year in length. The party endowing the chair and the school site may, at their discretion, renew annually.

Subd. 3. [PROGRAM.] An endowed chair program may be for a semester, a summer session, or a full school year. Curriculum developed or provided under the endowed chair program must supplement the existing curriculum offerings available at the school in the particular subject chosen.

Subd. 4. [AGREEMENT.] The agreement must make available funds sufficient for the salary and benefit costs of the instructor, and necessary supplies for the course. The participating site must provide the classroom space and administer the program. The parties, in consultation with the school district and the exclusive representative of the teachers, jointly select the instructor for the endowed chair.

Sec. 10. Laws 1995, First Special Session chapter 3, article 8, section 25, subdivision 2, is amended to read:

Subd. 2. [ABATEMENT AID.] For abatement aid according to Minnesota Statutes, section 124.214:

$24,241,000 $22,251,600 ..... 1996

$ 7,905,000 $ 9,543,400 ..... 1997

The 1996 appropriation includes $1,135,000 for 1995 and $23,106,000 $21,116,600 for 1996.

The 1997 appropriation includes $4,077,000 $3,726,400 for 1996 and $3,828,000 $5,817,000 for 1997.

Sec. 11. Laws 1995, First Special Session chapter 3, article 8, section 27, is amended to read:

Sec. 27. [EFFECTIVE DATES.]

Sections 18, 20, and 21 are effective the day following final enactment.

Section 13 is effective July 1, 1997, if the governing body of the city of Saint Paul and the governing body of independent school district No. 625 have approved it and complied with Minnesota Statutes, section 645.021, subdivision 3, before January 1 31, 1996. Section 14 does not abrogate language that references city of St. Paul civil service rules in bargaining unit agreements in existence on March 31, 1995.

Sec. 12. [SCIMATHMN INTERCHANGE EMPLOYEES.]

Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, SciMathMN may contract with a school district for a period not to exceed three consecutive years for the services of a math specialist and a science specialist to work on curriculum frameworks.

Sec. 13. [SPECIAL LEVY; HENNING.]

For taxes payable in 1997, in addition to other levies, independent school district No. 545, Henning, may levy for up to $20,000 for the unreimbursed cost of an adult farm management program.

Sec. 14. [FUND TRANSFERS.]

Subdivision 1. [AITKIN.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on June 30, 1996, independent school district No. 0001, Aitkin, may permanently transfer the balance in its debt redemption fund to its building construction fund without making a levy reduction.

Subd. 2. [CHISAGO LAKES.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on June 30, 1996, independent school district No. 2144, Chisago Lakes, may permanently transfer up to $250,000 from the debt redemption fund to the capital expenditure fund for facility and technology improvements.

Subd. 3. [ADA-BORUP.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on June 30, 1996, the Ada-Borup school district may permanently transfer the balance in its debt redemption fund to its building construction fund without making a levy reduction.

Subd. 4. [NEVIS.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1996, independent school district No. 308, Nevis, may permanently transfer up to $100,000 from the bus purchase account in its transportation fund to its capital expenditure fund without making a levy reduction.

Subd. 5. [WHITE BEAR LAKE.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 123.36, subdivision 13, independent school district No. 624, White Bear Lake, may deposit the proceeds from a sale of properties known as the Beach school site or the Gall district center site into the building construction fund of the district without making a levy reduction.

Subd. 6. [LYLE.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1996, independent school district No. 497, Lyle, may permanently transfer the balance in its early childhood family education account to its capital expenditure fund for expanding the district's technology services.

Sec. 15. [INSTRUCTIONAL DAY CLARIFICATION.]

(a) This section applies to any school district employee who was scheduled to work on February 2, 1996, 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: (i) 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 (ii) compensate any school district employee under paragraph (a) for that day at the employee's normal rate of pay.

Sec. 16. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sum indicated in this section is appropriated from the general fund to the commissioner of children, families, and learning for the fiscal year designated.

Subd. 2. [MONTEVIDEO GRANT.] For a grant to independent school district No. 129, Montevideo, for the unreimbursed costs of an adult farm management program:

$100,000.....1996

Subd. 3. [MULTICULTURAL CONTINUING EDUCATION GRANT.] For a grant to independent school district No. 38, Red Lake, for continuation of a multicultural continuing education pilot project for teachers:

$69,000.....1996

The district must match this sum with staff development revenue under Minnesota Statutes, section 124A.29. This appropriation is available until June 30, 1997.

Subd. 4. [NETT LAKE COMMUNITY CENTER.] For a grant to independent school district No. 707, Nett Lake, for maintenance replacement funds to cover delayed lease payments for the collaborative community center.

$74,000.....1997

Subd. 5. [WEST ST. PAUL GRANT.] For a grant to independent school district No. 197, West St. Paul, for a project investigating the development of multiple pathways for students to meet graduation standards.

$20,000.....1997

Subd. 6. [ST. PAUL ACCOUNTABILITY.] For a grant to independent school district No. 625, St. Paul, to assist in the implementation of the district accountability plan.

$100,000.....1997

The district must evaluate student achievement data by building and measure the results annually. The district must also establish criteria and modifications that may be used if buildings are not meeting the goals of the student improvement plan developed by the buildings.

Sec. 17. [EFFECTIVE DATE.]

Sections 9 and 12 are effective July 1, 1996. Sections 10, 14, 15, and 16 are effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, section 115A.072, subdivision 1, is amended to read:

Subdivision 1. [WASTE ENVIRONMENTAL EDUCATION COALITION ADVISORY BOARD.] (a) The director shall provide for the development and implementation of a program of general public environmental education on waste management in cooperation and coordination with the pollution control agency, department of children, families, and learning, department of agriculture, environmental quality board, environmental education board, educational institutions, other public agencies with responsibility for waste management or public education, and three other persons who represent private industry and who have knowledge of or expertise in recycling and solid waste management issues. The objectives of the program are to: develop increased public awareness of and interest in environmentally sound waste management methods; encourage better informed decisions on waste management issues by business, industry, local governments, and the public; and disseminate practical information about ways in which households and other institutions and organizations can improve the management of waste programs that are designed to meet the goals listed in section 126A.01.

(b) The director shall appoint an environmental education advisory task force, to be called the waste education coalition, of up to 18 members to board shall advise the director in carrying out the director's responsibilities under this section and whose membership represents the agencies and entities listed in this subdivision. The board consists of 20 members as follows:

(1) a representative of the pollution control agency, appointed by the commissioner of the agency;

(2) a representative of the department of children, families, and learning, appointed by the commissioner of children, families, and learning;

(3) a representative of the department of agriculture, appointed by the commissioner of agriculture;

(4) a representative of the department of health, appointed by the commissioner of health;

(5) a representative of the department of natural resources, appointed by the commissioner of natural resources;

(6) a representative of the board of water and soil resources, appointed by that board;

(7) a representative of the environmental quality board, appointed by that board;

(8) a representative of the board of teaching, appointed by that board;

(9) a representative of the University of Minnesota extension service, appointed by the director of the service;

(10) a citizen member from each congressional district, of which two must be licensed teachers currently teaching in the K-12 system, appointed by the director; and

(11) three at-large citizen members, appointed by the director.

The citizen members shall serve two-year terms. Compensation of board members is governed by section 15.059, subdivision 6. The task force board expires on June 30, 1997 2003.

Sec. 2. Minnesota Statutes 1995 Supplement, section 120.1045, subdivision 1, is amended to read:

Subdivision 1. [BACKGROUND CHECK REQUIRED.] A school hiring authority, as defined in subdivision 4, shall request a criminal history background check from the superintendent of the bureau of criminal apprehension on all individuals who are offered employment in the school, as defined in subdivision 4. In order to be eligible for employment, an individual who is offered employment must provide an executed criminal history consent form and a money order or cashier's check payable to the bureau of criminal apprehension for the fee for conducting the criminal history background check. A school may charge a person offered employment an additional fee of up to $2 to cover the school's costs under this section. The superintendent shall perform the background check by retrieving criminal history data maintained in the criminal justice information system computers.

Sec. 3. Minnesota Statutes 1995 Supplement, section 120.1045, is amended by adding a subdivision to read:

Subd. 4. [DEFINITIONS.] For purposes of this section:

(a) "School" means a school as defined in section 120.101, subdivision 4, except a home-school, and includes a school receiving tribal contract or grant school aid under section 124.86.

(b) "School hiring authority" means the school principal or other person having general control and supervision of the school.

Sec. 4. Minnesota Statutes 1995 Supplement, section 123.3514, subdivision 6, is amended to read:

Subd. 6. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in a course under this section, the department of children, families, and learning shall make payments according to this subdivision for courses that were taken for secondary credit.

The department shall not make payments to a school district or post-secondary institution for a course taken for post-secondary credit only. The department shall not make payments to a post-secondary institution for a course from which a student officially withdraws during the first 14 days of the quarter or semester or who has been absent from the post-secondary institution for the first 15 consecutive school days of the quarter or semester and is not receiving instruction in the home or hospital.

A post-secondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the formula allowance, multiplied by 1.3, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the general revenue formula allowance, multiplied by 1.3, and divided by 30.

The department of children, families, and learning shall pay to each post-secondary institution 100 percent of the amount in clause (1) or (2) within 30 days of receiving initial enrollment information each quarter or semester. If changes in enrollment occur during a quarter or semester, the change shall be reported by the post-secondary institution at the time the enrollment information for the succeeding quarter or semester is submitted. At any time the department of children, families, and learning notifies a post-secondary institution that an overpayment has been made, the institution shall promptly remit the amount due.

Sec. 5. Minnesota Statutes 1995 Supplement, section 123.3514, subdivision 6b, is amended to read:

Subd. 6b. [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] For a pupil enrolled in a course according to this section, the department of children, families, and learning shall make payments according to this subdivision for courses taken to fulfill high school graduation requirements by pupils eligible for adult high school graduation aid.

The department must not make payments to a school district or post-secondary institution for a course taken for post-secondary credit only. The department shall not make payments to a post-secondary institution for a course from which a student officially withdraws during the first 14 days of the quarter or semester or who has been absent from the post-secondary institution for the first 15 consecutive school days of the quarter or semester and is not receiving instruction in the home or hospital.

A post-secondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the formula allowance, multiplied by 1.3, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the general revenue formula allowance multiplied by 1.3, and divided by 30.

The department of children, families, and learning shall pay to each post-secondary institution 100 percent of the amount in clause (1) or (2) within 30 days of receiving initial enrollment information each quarter or semester. If changes in enrollment occur during a quarter or semester, the change shall be reported by the post-secondary institution at the time the enrollment information for the succeeding quarter or semester is submitted. At any time the department of children, families, and learning notifies a post-secondary institution that an overpayment has been made, the institution shall promptly remit the amount due.

A school district shall receive:

(1) for a pupil who is not enrolled in classes at a secondary program, 12 percent of the general education formula allowance times .65, times 1.3; or

(2) for a pupil who attends classes at a secondary program part time, the general education formula allowance times .65, times 1.3, times the ratio of the total number of hours the pupil is in membership for courses taken by the pupil for credit to 1020 hours.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124A.22, subdivision 2a, is amended to read:

Subd. 2a. [CONTRACT DEADLINE AND PENALTY.] (a) The following definitions apply to this subdivision:

(1) "Public employer" means:

(i) a school district; and

(ii) a public employer, as defined by section 179A.03, subdivision 15, other than a school district that (i) negotiates a contract under chapter 179A with teachers, and (ii) is established by, receives state money, or levies under chapters 120 to 129, or 136D, or 268A.

(2) "Teacher" means a person, other than a superintendent or assistant superintendent, principal, assistant principal, or a supervisor or confidential employee who occupies a position for which the person must be licensed by the board of teaching, state board of education, or state the former board of technical colleges, or the board of trustees of the Minnesota state colleges and universities.

(b) Notwithstanding any law to the contrary, a public employer and the exclusive representative of the teachers shall both sign a collective bargaining agreement on or before January 15 of an even-numbered calendar year. If a collective bargaining agreement is not signed by that date, state aid paid to the public employer for that fiscal year shall be reduced. However, state aid shall not be reduced if:

(1) a public employer and the exclusive representative of the teachers have submitted all unresolved contract items to interest arbitration according to section 179A.16 before December 31 of an odd-numbered year and filed required final positions on all unresolved items with the commissioner of mediation services before January 15 of an even-numbered year; and

(2) the arbitration panel has issued its decision within 60 days after the date the final positions were filed.

(c)(1) For a district that reorganizes according to section 122.22, 122.23, or 122.241 to 122.248 effective July 1 of an odd-numbered year, state aid shall not be reduced according to this subdivision if the school board and the exclusive representative of the teachers both sign a collective bargaining agreement on or before the March 15 following the effective date of reorganization.

(2) For a district that jointly negotiates a contract prior to the effective date of reorganization under section 122.22, 122.23, or 122.241 to 122.248 that, for the first time, includes teachers in all districts to be reorganized, state aid shall not be reduced according to this subdivision if the school board and the exclusive representative of the teachers sign a collective bargaining agreement on or before the March 15 following the expiration of the teacher contracts in each district involved in the joint negotiation.

(3) Only one extension of the contract deadline is available to a district under this paragraph.

(d) The reduction shall equal $25 times the number of actual pupil fund balance pupil units:

(1) for a school district, that are in the district during that fiscal year; or

(2) for a public employer other than a school district, that are in programs provided by the employer during the preceding fiscal year.

The department of children, families, and learning shall determine the number of full-time equivalent actual pupil units in the programs. The department of children, families, and learning shall reduce general education aid; if general education aid is insufficient or not paid, the department shall reduce other state aids.

(e) Reductions from aid to school districts and public employers other than school districts shall be returned to the general fund.

Sec. 7. Minnesota Statutes 1994, section 125.05, subdivision 1a, is amended to read:

Subd. 1a. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] (a) The board of teaching shall issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions.

(b) The board shall require a person to successfully complete an examination of skills in reading, writing, and mathematics before being granted an initial teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs. The board shall require colleges and universities offering a board approved teacher preparation program to provide remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on the skills examination, including those for whom English is a second language. The colleges and universities must provide assistance in the specific academic areas of deficiency in which the person did not achieve a qualifying score. School districts must provide similar, appropriate, and timely remedial assistance that includes a formal diagnostic component and mentoring to those persons employed by the district who completed their teacher education program outside the state of Minnesota, received a one-year license to teach in Minnesota and did not achieve a qualifying score on the skills examination, including those persons for whom English is a second language.

(c) A person who has completed an approved teacher preparation program and obtained a one-year license to teach, but has not successfully completed the skills examination, may renew the one-year license for two additional one-year periods. Each renewal of the one-year license is contingent upon the licensee:

(1) providing evidence of participating in an approved remedial assistance program provided by a school district or post-secondary institution that includes a formal diagnostic component in the specific areas in which the licensee did not obtain qualifying scores; and

(2) attempting to successfully complete the skills examination during the period of each one-year license.

(d) The board of teaching shall grant continuing licenses only to those persons who have met board criteria for granting a continuing license, which includes successfully completing the skills examination in reading, writing, and mathematics, or demonstrate skill proficiency under paragraph (f).

(e) All colleges and universities approved by the board of teaching to prepare persons for teacher licensure shall include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure. This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14.

(f) If a person has renewed a one-year provisional license under paragraphs (c)(1) and (c)(2) and then attempts but fails to achieve qualifying scores on the required skills examination, the person may seek from the employing school district an alternative process for demonstrating equivalent skill proficiency in reading, writing and mathematics. If the employing school district verifies to the satisfaction of the board that the person possesses and has demonstrated the required proficiency in the skills of reading, writing and mathematics under this section, the board shall waive the examination.

(g) If a person completes an approved teacher preparation program, does not achieve qualifying scores on the required skills examinations after three attempts, and completes the assistance program required under paragraph (b), the person may seek from the institution recommending the candidate for teacher licensure an alternative process for demonstrating equivalent skill proficiency in reading, writing and mathematics. If the recommending institution verifies to the satisfaction of the board that the candidate possesses and has demonstrated the required proficiency in the skills of reading, writing and mathematics under this section, the board shall waive the examination.

Sec. 8. Minnesota Statutes 1994, section 125.05, is amended by adding a subdivision to read:

Subd. 9. [TEACHER LICENSES.] The board of teaching may issue teacher licenses under the licensure rules in place on July 31, 1996.

Sec. 9. [125.192] [TEACHER LICENSURE.]

Teachers licensed in the education of blind and visually impaired students must demonstrate competence in reading and writing Braille. The board of teaching, at such time as a valid and reliable test is available, shall adopt a rule to assess these competencies that is consistent with the standards of the National Library Services for the Blind and Physically Handicapped.

Sec. 10. [126.091] [MOMENT OF SILENCE.]

A moment of silence may be observed.

Sec. 11. Minnesota Statutes 1995 Supplement, section 126.70, subdivision 1, is amended to read:

Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school board shall use the revenue authorized in section 124A.29 for in-service education for programs under section 126.77, subdivision 2, or for staff development plans under this section. The board must establish a staff development committee to develop the plan, assist site decision-making teams in developing a site plan consistent with the goals of the plan, and evaluate staff development efforts at the site level. A majority of the advisory committee must be teachers representing various grade levels, subject areas, and special education. The advisory committee must also include nonteaching staff, parents, and administrators. Districts shall report staff development results and expenditures to the commissioner in the form and manner determined by the commissioner. The expenditure report shall include expenditures by the school board for district level activities and expenditures made by the staff. The report shall provide a breakdown of expenditures for (1) curriculum development and programs, (2) inservice education, workshops, and conferences, and (3) the cost of teachers or substitute teachers for staff development purposes. Within each of these categories, the report shall also indicate whether the expenditures were incurred at the district level or the school site level, and whether the school site expenditures were made possible by the grants to school sites that demonstrate exemplary use of allocated staff development revenue. These expenditures are to be reported using the UFARS system. The commissioner shall report the staff development expenditure data to the education committees of the legislature by February 15 each year.

Sec. 12. Minnesota Statutes 1994, section 128D.11, subdivision 10, is amended to read:

Subd. 10. [CITY PLANNING COMMISSION APPROVAL; EXCEPTIONS.] (a) No election shall be held on a proposed issue of bonds unless the board has submitted to the city planning commission a statement of the location and general description, so far as then known, of any project proposed to be constructed or acquired from the proceeds of such bonds with a request for preliminary approval of each such project as being in accordance with the comprehensive plan of the city of Minneapolis. The commission may state its preliminary approval or disapproval of the projects included in such statement within 60 days after receipt thereof, and failure so to do shall be deemed to signify preliminary approval of such projects. In the event the commission shall disapprove any proposed project included in the statement, a vote of at least six members of the board of education shall be required for the adoption of a resolution submitting the proposed bond issue to the electors. Notwithstanding the preliminary approval of any project as herein provided, such project shall be resubmitted to the city planning commission at the time and in the manner specified in paragraph (b). The location and nature of each project shall be determined by the board of education and reviewed by the city planning commission at the time, with reference to the circumstances then existing. Nothing herein shall prevent the revision or elimination of any project previously given preliminary approval or the substitution of another project therefor, by the procedure specified in paragraph (b), if considered necessary by the board to fulfill its responsibilities for public education, and for the construction of school facilities so far as possible in accordance with the comprehensive city plan, provided however no such revision, elimination, or substitution shall be made unless approved by unanimous vote of all members of the board of education. Notwithstanding anything to the contrary contained in this act no election shall be held on a proposed issue of bonds on a date earlier than 60 days after preliminary approval or disapproval by the city planning commission.

(b) The school district shall not expend the proceeds of bonds for any purpose provided for in subdivisions 1 to 6 requiring approval of the city planning commission unless a proposed resolution stating the location and general description of the project or undertaking shall have been submitted to the city planning commission for consideration of the proposed project or undertaking as being in accordance with the comprehensive plan of the city of Minneapolis. The commission may state its approval or disapproval of the proposed project or undertaking within 60 days thereafter. A failure on the part of the commission to state its disapproval within 60 days after receipt of such resolution shall be deemed an approval. In the event the commission shall disapprove any proposed project or undertaking, a unanimous vote of the members of the board of education shall be required for the adoption of the resolution.

Sec. 13. Laws 1993, chapter 224, article 12, section 39, as amended by Laws 1994, chapter 532, article 2, section 14; Laws 1994, chapter 647, article 8, section 32; Laws 1994, chapter 647, article 12, section 35; and Laws 1995, First Special Session chapter 3, article 8, section 15, is amended to read:

Sec. 39. [REPEALER.]

(a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 3520.4910;

3520.5330; 3520.5340; 3520.5370; 3520.5461; 3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 3545.3024; 8700.4200; 8700.6800; and 8700.7100, are repealed.

(b) Minnesota Rules, parts 3520.1600; 3520.2900; 3520.3000; 3520.3200; 3520.3500; 3520.3680; 3520.3701; 3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 3520.5710; 3520.5900; 3520.5910; and 3520.5920, are repealed.

(c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0300; 3510.8100; 3510.8200; 3510.8300; 3510.8400; 3515.0100, subparts 2, 5, 6, and 26; 3515.0500, subpart 4, option two, items D and E; 3515.0700, subpart 4, options 4, 6, 7, and 8; 3515.1100; 3515.1500, subparts 2 and 3, item C; 3515.2100, subparts 2 and 3; 3515.3300; 3515.3400; 3515.3500; 3515.3600; 3515.3700; 3515.3800; 3515.3900; 3515.4000; 3515.4500; 3515.4600; 3515.4621; 3515.4700; 3515.4800; 3515.5000, subpart 2; 3515.5050; 3515.5500, subparts 3, 4, 5, 6, 7, 9, 10, and 11; 3515.5600; 3515.6005, subparts 2 and 3; 3515.6100; 3515.8300; 3515.8900; 3515.9910; 3515.9911; 3515.9912; 3515.9913; 3515.9920; 3515.9942; 3517.3150; 3517.3170; 3517.3420; 3517.3450; 3517.3500; 3517.3650; 3517.8500; 3517.8600; 3520.2400; 3520.2500; 3520.2600; 3520.2800; 3520.3100; 3520.3400; 3530.6500; 3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 3530.7600; 3530.7700; 3530.7800; and chapter 3560, are repealed.

(d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 8700.6310; 8700.6410; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 8700.8160; 8700.8170; 8700.8180; 8700.8190; 8700.9000; 8700.9010; 8700.9020; 8700.9030; 8750.0200; 8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 8750.2140; 8750.4000; 8750.4100; and 8750.4200; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700, are repealed.

(e) Minnesota Rules, parts 3510.0100; 3510.0200; 3510.0400; 3510.0500; 3510.0600; 3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8500; 3510.8600; 3510.8700; 3510.9000; 3510.9100; 3517.0100; and 3517.0120, are repealed.

Sec. 14. Laws 1993, chapter 224, article 12, section 41, as amended by Laws 1995, First Special Session chapter 3, article 8, section 16, is amended to read:

Sec. 41. [EFFECTIVE DATE.]

Sections 22 to 25 are effective July 1, 1995.

Section 32, paragraph (b), is effective July 1, 1995. Section 32, paragraph (c), is effective August 1, 1996.

Section 39, paragraph (b), is effective August 1, 1994. Section 39, paragraph (c), is effective July 1, 1995. Section 39, paragraph (d), is effective August 1, 1996. Section 39, paragraph (e), is effective July 1 December 31, 1996.

Sec. 15. [RECOMMENDATIONS FOR CONDUCTING BACKGROUND CHECKS.]

Subdivision 1. [WORKING GROUP.] The commissioner of children, families, and learning shall convene a working group to recommend an efficient and effective process for conducting background checks on candidates for teacher licensure, elementary and secondary school teachers, and other school district employees, consistent with the requirements under Minnesota Statutes, sections 120.1045 and 125.05, subdivision 8. The working group must include one representative from each of the following organizations: the state board of teaching; the Minnesota school boards association; the Minnesota education association; the Minnesota federation of teachers; the Minnesota state colleges and universities; the University of Minnesota; the private college council; the Minnesota association of colleges of teacher education; the statewide student associations from the state universities, the University of Minnesota, and the private liberal arts colleges; the Minnesota bureau of criminal apprehension; the American association of state, county and municipal employees; and other groups that the commissioner determines are relevant. By February 1, 1997, the commissioner shall submit the group's recommendations concerning an efficient and effective process, including recommended statutory changes, to the chairs of the education committees of the legislature.

Subd. 2. [ISSUES TO RESOLVE.] In recommending an efficient and effective process for conducting background checks, the working group must address at least the following:

(1) how might the process for conducting background checks be made more efficient and less burdensome for substitute employees;

(2) to what extent should service cooperative employees, teacher interns, student teachers, school volunteers, independent contractors, or student employees be subject to background checks;

(3) how might the process of paying for background checks be made more flexible and less expensive;

(4) to what extent should nonstate residents applying for school district employment be subject to background check requirements;

(5) to what extent would a central repository of background check data be useful and, if it is useful, how would it operate;

(6) how might duplication between licensure and employment checks be avoided;

(7) to what extent should an individual be subject to a periodic background check; and

(8) whether the scope of the background check is appropriate to accomplish the intended purpose of the statutes and whether the scope of the background check should be tailored to particular classes of individuals.

Subd. 3. [TEMPORARY PROVISIONS.] (a) Notwithstanding any law to the contrary, the following provisions apply until June 30, 1997.

(b) Any candidate for teacher licensure and any prospective school district employee for whom a background check was completed after December 1, 1995, shall not be required to undergo another background check solely to comply with the requirements of Minnesota Statutes, sections 120.1045 and 125.05, subdivision 8.

(c) The board of teaching and the state board of education shall issue a license to an otherwise qualified individual while completion of a background check is pending, subject to Minnesota Statutes, section 125.05, subdivision 8.

(d) A school hiring authority may use the results of a criminal history background check performed at the request of another school hiring authority if: the results of the check are on file with the other school hiring authority or are otherwise assessable; the check was performed within the past year; and there is no reason to believe that the individual has committed an act subsequent to the check that would not be included in it.

Sec. 16. [PARENT EDUCATION INSTRUCTOR LICENSE.]

(a) Notwithstanding Minnesota Statutes, section 125.05, subdivision 1, persons who currently hold or have held a parent education instructor license issued by the board of technical colleges or the board of trustees of the Minnesota state colleges and universities prior to June 30, 1997, shall, upon application, be issued a family education/parent educator license granted by the Minnesota board of teaching upon evidence of having met the renewal requirements listed on the expiring license.

(b) Effective June 30, 1997, the board of trustees of the Minnesota state colleges and universities shall not issue parent education instructor licenses.

Sec. 17. [BOARD OF TEACHING GUIDELINES.]

The board of teaching shall recommend guidelines for school districts and teacher preparation institutions to use in determining eligibility requirements for teacher candidates and in developing procedures for an alternative process, which may include authentic and qualitative assessments for candidates to demonstrate skill proficiency in reading, writing and mathematics consistent with the requirements of Minnesota Statutes, section 125.05, subdivision 1a, paragraphs (f) and (g).

Sec. 18. [BUFFALO; FARIBAULT; SLEEPY EYE; SCHOOL YEAR.]

Subdivision 1. [EXCEPTION.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, independent school districts No. 877, Buffalo, No. 656, Faribault, No. 84, Sleepy Eye, and students from the residential academies, independent school No. 0160 may begin the 1996-1997 school year prior to Labor Day only by the number of days necessary to accommodate the transition into the new or renovated elementary or senior high school buildings.

Subd. 2. [CONDITIONAL EXCEPTION.] If this act is effective after April 1, 1996, the boards of independent school district No. 877, Buffalo, No. 84, Sleepy Eye, and No. 656, Faribault, are exempt from the April 1 deadline for setting a school calendar for the 1996-1997 school year in Minnesota Statutes, section 126.12, subdivision 2. The board must set the calendar as soon as possible after the effective date of this section.

Subd. 3. [APPLICATION.] This section applies only for the 1996-1997 school year.

Sec. 19. [LOLA AND RUDY PERPICH SCHOOL FOR THE ARTS AND RESOURCE CENTER.]

It is the desire of the Minnesota legislature to recognize the many contributions of Lola and Rudy Perpich to the state and people of Minnesota, including the instrumental role Lola and Rudy Perpich played in establishing and supporting the Minnesota school for the arts and resource center. The legislature understands that the school's critical early successes were due in large measure to Lola and Rudy Perpich and greatly appreciates their efforts.

Sec. 20. [REVISOR INSTRUCTION.]

In the next and subsequent editions of Minnesota Statutes, the revisor shall change all references from "Minnesota center for arts education" to "Lola and Rudy Perpich Minnesota center for arts education."

Sec. 21. [REPEALER.]

(a) Minnesota Statutes 1995 Supplement, section 120.1045, subdivision 3, is repealed the day following final enactment.

(b) Minnesota Statutes 1995 Supplement, section 126A.02, subdivision 2, is repealed.

(c) Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700, are repealed.

Sec. 22. [EFFECTIVE DATE.]

Section 6 is effective for the 1995-1996 school year. Sections 1, 9, 13, 14, 16, and 21, paragraphs (a) and (b), are effective the day following final enactment. Sections 7 and 17 are effective July 1, 1996, but only if the governor, on recommendation of the commissioner of children, families, and learning, has approved before then the procedures for an alternative process the board of teaching proposes to recommend to school districts and teacher preparation institutions under section 17. Section 12 is effective January 1, 1997.

Section 21, paragraph (c), is effective August 1, 1997.

Section 1. Minnesota Statutes 1994, section 134.34, is amended by adding a subdivision to read:

Subd. 7. [PROPOSED BUDGET.] In addition to the annual report required in section 134.13, a regional public system that receives a basic system support grant under this section must provide each participating county and city with its proposed budget for the next year.

Section 1. Laws 1995, First Special Session chapter 3, article 11, section 21, subdivision 2, is amended to read:

Subd. 2. [DEPARTMENT.] For the department of education children, families, and learning:

$23,150,000 $26,110,000 ..... 1996

$21,803,000 ..... 1997

(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) $522,000 each year 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 education 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 1996 does not cancel but is available in 1997. The amount carried forward must not be used to establish a larger annual base appropriation for later fiscal years.

(d) $204,000 each year is for the state board of education.

(e) $227,000 each year 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.

The department of education children, families, and learning 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.

(k) The department of education 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 prepared in 1995 must include a complete set of goals, objectives, and measures for the department. The report presented in 1996 and subsequent years must include data to indicate the progress of the department in meeting its goals and objectives.

The department of education children, families, and learning must present a plan for 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. The plan for this report must be presented in 1995 and the first biennial report presented in 1996.

(l) The commissioner of education children, families, and learning shall perform a facilities standards evaluation of public elementary and secondary facilities in the state. This evaluation shall include a measure of the following:

(1) the physical condition of education facilities;

(2) the level of utilization relative to the capacity of education facilities;

(3) the intensity of technological use in both administrative and instructional areas in education facilities;

(4) the alignment between education programs in place and the structure of education facilities; and

(5) an estimate of facility construction over the next decade.

This evaluation may be based on a sample of facilities but must include geographic breakdowns of the state.

The report shall indicate which construction and repair of district facilities is required to bring a district into compliance with fire safety codes, occupational safety and health requirements, and the Americans with Disabilities Act.

The commissioner shall recommend to the 1996 legislature standards for the review and comment process under Minnesota Statutes, section 121.15. The standards must integrate the use of technology, both current and potential, flexible scheduling, and program adjustments relative to implementation of the graduation rule.

(m) $120,000 is for a feasibility and design study to develop a statewide student performance accountability report. The department must identify and assess the current availability of critical data-based information about student performance and feasibility of using information from the existing sources, recommend additional data-based elements and data collection strategies that will provide for ongoing assessment of educational reform and improvement, and recommend methods for improving the coordination and dissemination of local accountability reports as part of a statewide reporting system. The study must include a statewide implementation and budget plan. The study process must involve other government units, school and citizen leaders, and members of higher education concerned with the education and development of children and youth. It must also consider ways to access the research and development capacity of institutions of higher education in Minnesota. The commissioner shall report the results of the study to the education committees of the legislature and the state board of education by February 1, 1996.

(n) $1,000,000 in fiscal year 1996 is for grants to special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, for after school enrichment pilot programs targeted towards junior high and middle school students. These programs shall be developed collaboratively with city government, park boards, family services collaboratives, and any other community organizations offering similar programming. Any balance remaining in the first year does not cancel but is available in the second year.

(o) $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 from the special revenue fund not needed for the purposes of this paragraph to the Minnesota highway safety center at St. Cloud state 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 education 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.

(p) $600,000 in 1996 and $350,000 in 1997 is for transition aid for information support.

(q) Up to $50,000 each year is for grants to school districts for mentorship cooperative ventures between school districts and post-secondary teacher preparation institutions for alternative licensure programs according to Minnesota Statutes, section 125.188.

(r) Up to $50,000 each year is for GED coordination.

(s) Of the 1997 appropriation for education and employment transitions grants in Laws 1995, First Special Session chapter 3, article 4, section 29, subdivision 8, $100,000 is for work-based learning pilot programs.

Sec. 2. Laws 1995, First Special Session chapter 3, article 11, section 22, is amended to read:

Sec. 22. [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS EDUCATION.]

The sums indicated in this section are appropriated from the general fund to the Minnesota center for arts education for the fiscal years designated:

$5,217,000 $5,330,000 ..... 1996

$5,217,000 $5,456,000 ..... 1997

Of the fiscal year 1996 appropriation, $154,000 is to fund artist and arts organization participation in the education residency and education technology projects, $75,000 is for school support for the residency project, and $121,000 is for further development of the partners: arts and school for students (PASS) program, including pilots. Of the fiscal year 1997 appropriation, $154,000 is to fund artist and arts organizations participation in the education residency project, $75,000 is for school support for the residency project, and $121,000 is to fund the PASS program, including additional pilots. The guidelines for the education residency project and the pass program shall be developed and defined by the Minnesota arts board. The Minnesota arts board shall participate in the review and allocation process. The center for arts education shall cooperate with the Minnesota arts board to fund these projects.

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

The Minnesota 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.

In the next biennial budget, the Minnesota center for arts education must assess its progress in meeting its established performance measures and inform the legislature on the content of that assessment. The information must include an assessment of its progress by consumers and employees.

Sec. 3. Laws 1995, First Special Session chapter 3, article 11, section 23, is amended to read:

Sec. 23. [APPROPRIATIONS; FARIBAULT ACADEMIES.]

The sums indicated in this section are appropriated from the general fund to the department of education children, families, and learning for the Faribault academies for the fiscal years designated:

$8,075,000 $8,316,000 ..... 1996

$8,075,000 $8,526,000 ..... 1997

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.

Sec. 4. [APPROPRIATIONS.]

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

Subd. 2. [LITIGATION COSTS.] For costs associated with desegregation litigation:

$700,000.....1996

This appropriation is available until June 30, 1997, and may be expended only to the extent costs are incurred.

Subd. 3. [RETRAINING.] For retraining of department employees and employees who become department employees as a result of transfer from other agencies pursuant to Minnesota Statutes, section 119A.04:

$275,000.....1996

This appropriation is available until June 30, 1997.

The retraining is subject to Laws 1995, First Special Session chapter 3, article 16, section 10, subdivision 5.

Subd. 4. [STUDENT ORGANIZATIONS.] To replace federal funds for grants to organizations supporting vocational student groups:

$90,000.....1997

The commissioner must use these funds, in addition to state funds already designated for this purpose, to make grants to the student groups.

Subd. 5. [INTERNATIONAL CENTER.] For grants to the Minnesota International Center to expand the number of international speakers going into Minnesota classrooms to stimulate global understanding:

$40,000.....1997

This grant is available to the extent it is matched by contributions from nonpublic sources.

Sec. 5. [FEDERAL FUNDS.]

The expenditures of federal grants and aids as shown in budget change order number 1 dated January 18, 1996, for the department of children, families, and learning are approved and appropriated and may be spent as indicated. If the funds are spent for purposes other than those indicated in the change order, the department must notify the appropriate committees of the legislature.

Sec. 6. [EFFECTIVE DATE.]

Sections 1 to 5 are effective the day following final enactment.

Section 1. [121.95] [EDUCATION TECHNOLOGY IMPROVEMENT CLEARINGHOUSES.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of children, families, and learning shall establish a grant program for regional clearinghouses for school districts. The grants must be used to upgrade and refurbish computers that are donated to schools and provide opportunities for student involvement. The purposes of the enterprises are to:

(1) serve as centers where business or others may donate new or used computer and other technology for use by Minnesota schools;

(2) provide an opportunity for students to upgrade donated and existing school-owned computers so that they are capable of being connected to the internet and local networks; and

(3) provide a means of informing schools of available technology and distributing donated and upgraded computers to schools for technology improvements in support of learning.

Each clearinghouse must encourage opportunities for students to learn skills, including the technical skills needed to retrofit and upgrade computers. The clearinghouse shall retain the ability to review equipment for suitability and refuse equipment that does not meet the standards or is not suitable for use in schools. At a minimum, all donated computers must be suitable for upgrade so that the retrofitted computer can be connected to the internet and a local computer network.

Subd. 2. [GRANTS.] The commissioner shall establish procedures and develop forms for applying for grants under this section. The grants may be used to purchase needed technology for upgrading donated computers and other donated technology, for the cost of computer distribution, and for the cost of informing businesses and others about technology donations to the clearinghouse. The commissioner shall develop guidelines for the use and distribution of any computers donated and upgraded through this grant program. The commissioner may establish priorities and prorate grants to match appropriations for the grant program.

Sec. 2. Minnesota Statutes 1995 Supplement, section 124C.74, subdivision 2, is amended to read:

Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A school district may apply for a grant under this subdivision to: (1) establish connections among school districts, and between school districts and the MNet statewide telecommunications network administered by the department of administration under section 16B.465; or (2) if such a connection meeting minimum electronic connectivity standards is already established, enhance telecommunications capacity for a school district. The minimum standards of capacity are a 56 kilobyte data line and 768 kilobyte ITV connection, subject to change based on the recommendations by the Minnesota education telecommunications council. A district may submit a grant application for interactive television with higher capacity connections in order to maintain multiple simultaneous connections. To ensure coordination among school districts, a school district must submit its grant application to the council through an organization that coordinates the applications and connections of at least ten school districts or through an existing technology cooperative.

(b) The application must, at a minimum, contain information to document for each applicant school district the following:

(1) that the proposed connection meets the minimum standards and employs an open network architecture that will ensure interconnectivity and interoperability with other education institutions and libraries;

(2) that the proposed connection and system will be connected to MNet through the department of administration under section 16B.465 and that a network service and management agreement is in place;

(3) that the proposed connection and system will be connected to the higher education telecommunication network and that a governance agreement has been adopted which includes agreements between the school district system, a higher education regional council, libraries, and coordinating entities;

(4) the telecommunication vendor, which may be MNet, selected to provide service from the district to an MNet hub or to a more cost-effective connection point to MNet; and

(5) other information, as determined by the commissioner in consultation with the education telecommunications council, to ensure that connections are coordinated, meet state standards and are cost-effective, and that service is provided in an efficient and cost-effective manner.

(c) A grant applicant shall obtain a grant proposal for network services from MNet. If MNet is not selected as the vendor, the application must provide the reasons for choosing an alternative vendor. A school district may include, in its grant application, telecommunications access for collaboration with nonprofit arts organizations for the purpose of educational programs, or access for a secondary media center that: (1) is a member of a multitype library system; (2) is open during periods of the year when classroom instruction is occurring; and (3) has licensed school media staff on site.

(d) The Minnesota education telecommunications council shall award grants and the funds shall be dispersed by the commissioner. The highest priority for these grants shall be to bring school districts up to the minimum connectivity standards. The telecommunications council shall also give priority to grant proposals from school districts with fewer than 1,000 students which do not have a data connection. A grant to enhance telecommunications capacity beyond the minimum connectivity standards shall be no more than 75 percent of the maximum grant under this subdivision. Grant applications for minimum connection and enhanced telecommunications capacity grants must be submitted to the commissioner by a coordinating organization including, but not limited to, service cooperatives and education districts. For the purposes of this section, a school district includes charter schools under section 120.064. For the purposes of the grant, a school district may include a charter school under section 120.064, or the Faribault academies. Based on the award made by the council, all grants under this subdivision shall be paid by the commissioner directly to a school district (unless this application requests that the funds be paid to the coordinating agency). Nonpublic schools as defined in section 237.065, subdivision 2, located within the district may access the network. The nonpublic school is responsible for actual costs for connection from the school to the access site.

(e) Money awarded under this section may be used only for the purposes explicitly stated in the grant application.

Sec. 3. Minnesota Statutes 1995 Supplement, section 124C.74, subdivision 3, is amended to read:

Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A regional public library system may apply for a telecommunication access grant. The grant must be used to create or expand the capacity of electronic data access and connect the library system with the MNet statewide telecommunications network administered by the department of administration under section 16B.465. Connections must meet minimum system standards of a 56 kilobyte data line and 768 kilobyte ITV connection. To be eligible for a telecommunications access grant, a regional public library system must: (1) meet the level of local support required under section 134.34; and (2) be open at least 20 hours per week; and (3) provide a local match for the grant with local funds under section 134.46.

(b) Any grant award under this subdivision may not be used to substitute for any existing local funds allocated to provide electronic access, or equipment for library staff or the public, or local funds previously dedicated to other library operations.

(c) An application for a regional public library telecommunications access grant must, at a minimum, contain information to document the following:

(1) that the connection meets the minimum standards and employs an open network architecture that will ensure interconnectivity and interoperability with other libraries and the educational system;

(2) that the connection is being established through the most cost-effective means and that the public library has explored and coordinated connections through school districts or other governmental agencies;

(3) that the proposed connection and system will be connected to MNet through the department of administration under section 16B.465 and that a network service and management agreement is in place;

(4) that the proposed connection and system will be connected to the higher education and to the school district telecommunication networks subject to a governance agreement with one or more school districts and a higher education regional council specifying how the system will be coordinated;

(5) the telecommunication vendor, which may be MNet, selected to provide service from the library to an MNet hub or through a more cost-effective connection point to MNet; and

(6) other information, as determined by the commissioner, to ensure that connections are coordinated, meet state standards, are cost-effective, and that service is provided in an efficient and cost-effective manner so that libraries throughout the state are connected in as seamless a manner as technically possible.

(d) A grant applicant shall obtain a grant proposal for network services from MNet. If MNet is not selected as the vendor, the application must provide the reasons for choosing an alternative vendor.

Sec. 4. Minnesota Statutes 1995 Supplement, section 134.46, is amended to read:

134.46 [REGIONAL LIBRARY TELECOMMUNICATIONS AID.]

(a) A regional public library system may apply to the commissioner for telecommunications aid to support data access through regional public library systems, including access to Internet for library staff and the public. The maximum amount of aid for each public library shall be calculated as follows:

(1) multiply $1 times the lesser of the population of the area served by the regional public library system, or the sum of the populations of the participating portions of the system; and

(2) deduct an amount equal to the sum of .1 percent times the adjusted net tax capacity for each participating city or county for the year preceding the year the levy is certified.

(b) A regional public library must match state aid with local funds equal to .1 percent times the adjusted net tax capacity for each participating city or county for the year preceding the year the levy is certified. A regional public library that receives a telecommunications access grant under section 124C.74 may use local funds under this section for the grant match in the year the grant is awarded, without a reduction in state aid. Local matching funds must be an increase in the amount of local funds allocated to support library operations in the year prior to the first year of the telecommunication access grant. Local matching funds are exempt from section 134.34. A grant award under this section may not be used to substitute for any existing local funds allocated to provide electronic data access or equipment for library staff or the public, or local funds previously dedicated to other library operations.

(c) Telecommunications aid under this section may be used for the:

(1) construction, maintenance, and lease costs of data access connections, including Internet connections;

(2) purchase, maintenance, professional development, and support of computer hardware and software for data access;

(3) cost of technical support for a regional library systems' technology investments, including technical support, personnel, contracted services for technical support, and training; and

(4) promotion of electronic access through public libraries for members of the public.

(d) If appropriations are insufficient to fully fund aid under this section, the commissioner shall prorate aid payments to participating regional library systems.

Sec. 5. Minnesota Statutes 1995 Supplement, section 237.065, is amended to read:

237.065 [RATES FOR SPECIAL SERVICE TO SCHOOLS.]

Subdivision 1. [BASIC SERVICES.] Each telephone company, including a company that has developed an incentive plan under section 237.625, that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to 12th grade shall provide, upon request, additional service to the school that is sufficient to ensure access to basic telephone service from each classroom and other areas within the school, as determined by the school board. Each company shall set a flat rate for this additional service that is less than the company's flat rate for an access line for a business and the same as or greater than the company's flat rate for an access line for a residence in the same local telephone service exchange. When a company's flat rates for businesses and residences are the same, the company shall use the residential rate for service to schools under this section. The rate required under this section is available only for a school that installs additional service that includes access to basic telephone service from each classroom and other areas within the school, as determined by the school board.

Subd. 2. [BASIC AND ADVANCED TELECOMMUNICATION SERVICES.] (a) Notwithstanding the provisions of sections 237.09, 237.14, 237.60, subdivision 3, and 237.74, each telephone company and telecommunications carrier that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to grade 12 or that includes a public library may provide, upon request, basic and advanced telecommunication services at reduced or no cost to that school or library. A school or library receiving telecommunications services at reduced or no cost may not resell or sublease the discounted services. Telecommunications services shall be provided in accordance with Public Law Number 104-104.

(b) An agent that provides telecommunications services to a school or library may request the favorable rate on behalf of and for the exclusive benefit of the school or library. The school or library must authorize the agent to make the request of the local telephone company or telecommunications carrier. The telephone company or telecommunications carrier is not required to offer the same price discount to the agent that it would offer to the school district or library. An agent that receives a price discount for telecommunications services on behalf of a school or library may only resell or sublease the discounted services to that school or library.

(c) For the purposes of this subdivision, "school" includes a public school as defined in section 120.05, nonpublic, and church or religious organization schools that provide instruction in compliance with sections 120.101 to 120.102.

Sec. 6. Laws 1995, First Special Session chapter 3, article 12, section 8, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT; PURPOSE.] A grant program is established to help school districts work together and with higher education institutions, businesses, local government units, libraries, and community organizations in order to facilitate individualized learning and manage information by employing technological advances, especially computers and computer-related products, and other advanced industrial technologies supporting school-to-work transitions in manufacturing, engineering, and transportation courses. Recipients shall use grant proceeds to:

(1) enhance teaching and learning productivity through the use of technology;

(2) develop individual learner classroom-based teaching and learning systems that can be aggregated into site, district, and state frameworks;

(3) develop personalized learning plans designed to give learners more responsibility for their learning success and change the role of teacher to learning facilitator;

(4) match and allocate resources;

(5) create a curriculum environment that is multiplatform;

(6) provide user and contributor access to electronic libraries;

(7) schedule activities;

(8) automate progress reports;

(9) increase collaboration between school districts and sites, and with businesses, higher education institutions, libraries, and local government units;

(10) correlate state-defined outcomes to curriculum units for each student;

(11) increase accountability through a reporting system; and

(12) provide technical support, project evaluation, dissemination services, and replication.

Sec. 7. Laws 1995, First Special Session chapter 3, article 12, section 12, subdivision 7, is amended to read:

Subd. 7. [TELECOMMUNICATION ACCESS GRANTS.] For grants to school districts and regional public library systems to establish connections to MNet according to Minnesota Statutes, section 124C.74:

$5,500,000 ..... 1996

$5,000,000 $10,000,000 ..... 1997

Of these appropriations, up to $300,000 is to pay the transmission costs for programming over the network and costs associated with operating the network.

This appropriation is available until June 30, 1997. These appropriations do not cancel but are available until expended.

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. The commissioner may consider a school district's technology plan in making technology-related funding decisions.

Sec. 9. [AFTER-SCHOOL PROGRAMS.]

The commissioner of children, families, and learning shall establish a process to initiate a competitive grant program to enhance the use of technology in after-school programs. Eligible organizations include school districts, private schools, nonprofit community organizations, public housing agencies, and other successful programs that serve youth.

Sec. 10. [ADVANCEMENT OF TECHNOLOGY IN EDUCATION.]

The commissioner shall make a grant to the center for applied research and educational improvement, college of education and human development, University of Minnesota. The grant must be used to publicize information about the use of new methods and curriculum for using telecommunications and computers in support of learning. Information on new techniques, uses, and curricula must be distributed throughout the state. The center may use electronic or print distribution to reach classrooms and teachers in all parts of Minnesota.

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 of instructional and administrative software, computers, video, and network hardware. Public and nonpublic schools, public libraries, and political subdivisions may participate in the contracts if it meets their purchasing needs.

Sec. 12. [TECHNOLOGY INCENTIVES PILOT PROGRAM.]

Subdivision 1. [TECHNOLOGY INCENTIVES PILOT PROGRAM LEVY.] The commissioner of children, families, and learning shall select one district for a technology incentives pilot program. The purpose of the pilot program is to provide secondary school students with individual access to technology throughout the student's secondary educational program, to integrate computers into classroom learning activities, and to provide incentives for students to stay in school and achieve high educational standards.

Subd. 2. [APPLICATION.] In order to be considered for the technology incentives pilot program, a district shall submit a plan developed cooperatively with one or more private partners to the commissioner of children, families, and learning in the form and manner prescribed by the commissioner. The plan shall include goals for improving access to technology, student achievement, and school attendance for students participating in the pilot program; a description of the public and private partnership involved in developing the technology incentives plan; and the responsibilities of each partner. In selecting a district for the technology incentives pilot program, the commissioner shall take into consideration the number of students in a site who are from families whose household income is less than 185 percent of the federal poverty level.

Subd. 3. [TECHNOLOGY INCENTIVES LEVY.] A district may levy an amount not to exceed one-fourth of the cost of the district's lease purchase agreement under subdivision 4. The district may not levy under this section for more than three years following the first year of the lease purchase agreement.

Subd. 4. [USE OF LEVY.] A district shall use the technology levy to purchase a computer for each ninth grade student enrolled in one or more participating school sites. A portion may be used to purchase or provide technical support or maintenance services directly related to the program. The district may purchase computers for this program under a lease purchase agreement. Notwithstanding section 123.37, subdivision 1, a district may enter into a four-year lease purchase agreement after complying with the other contracting provisions of section 123.37. A ninth grade student must have exclusive use of a computer assigned by this program throughout the time the student is enrolled in the district issuing the computer or enrolled at a participating school site. Notwithstanding sections 120.71 to 120.76, the district may sell the computer to the student when the student receives a high school diploma from the district. The district shall consider ability to pay in establishing the purchase prices of computers.

Subd. 5. [REPORT.] By January 1, 1999, the selected district shall submit a report to the commissioner on the program with recommendations for expanding it or making changes.

Sec. 13. [TECHNOLOGY INTEGRATION MATCHING GRANTS.]

A technology integration matching grant program is established. Grant amounts shall be allocated to districts on a per pupil basis. To be eligible, a district must match the grant with $2 of local funds for each $1 of state funds and must have identified a person to act as a technology coordinator for the district. The grant and matching funds must be used to provide for training in districts to help staff learn how to integrate the use of technology in the classroom with alternative curriculum and instructional approaches, and to purchase computer hardware. Students may be included in training funded through this grant. The department shall establish guidelines and an application process for the grant.

Sec. 14. [TECHNOLOGY RELATED FUND BALANCE ADJUSTMENTS.]

Notwithstanding Minnesota Statutes, section 124A.26, a district must not receive an aid or levy reduction for general education revenue according to that section for fiscal year 1996. Aid adjustments shall be paid in fiscal year 1997. The department shall make the appropriate levy adjustments. This revenue must be transferred to the district's capital equipment account or the operating capital account for technology purposes. This provision assumes an aid payment of approximately $1,300,000 to be paid from general education and a levy of $800,000.

Sec. 15. [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 year designated.

Subd. 2. [EDUCATION TECHNOLOGY CLEARINGHOUSE AND UPGRADE SYSTEM.] For the education technology clearinghouse and upgrade system under section 1:

$250,000.....1997

Any amount of this appropriation not used shall be available for grants under section 7.

Subd. 3. [AFTER-SCHOOL PROGRAMS.] For after-school program grants under section 9:

$1,000,000 ..... 1997

The appropriation is available until June 30, 1998.

Subd. 4. [ELECTRONIC CURRICULUM.] For support of electronic curriculum development:

$860,000.....1997

(a) Of this amount, $750,000 shall be used for a pilot project for districts or a group of districts to implement and demonstrate an electronic curriculum library. The library must be aligned with the content standards of the graduation rule and must include benchmarks to track students' progress. The department shall establish guidelines and an application process to implement this project. The department shall give additional consideration to applicants who work with private sector experts and vendors in developing the library.

(b) Of this amount, $50,000 is for a grant to the environmental conservation section of the Minneapolis library for technology investments and for the expansion on the Internet of environmentally related information.

(c) Of this amount, $20,000 is for a grant to the center for applied research and educational improvement to publicize information about the use of new methods and curriculum for using telecommunications and computers in support of learning.

(d) Of this amount, $40,000 is for a grant to an organization with a demonstrated proficiency in applying computer hardware and software to reading improvement for at-risk students. The grant must be used to advance these techniques in other education organizations.

Subd. 5. [TECHNOLOGY INTEGRATION GRANTS.] For the purposes of sections 13 and 14:

$3,500,000 ..... 1997

Sec. 16. [EFFECTIVE DATE.]

Sections 5, 7, and 11 are effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, section 43A.316, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purpose of this section, the terms defined in this subdivision have the meaning given them.

(a) [COMMISSIONER.] "Commissioner" means the commissioner of employee relations.

(b) [EMPLOYEE.] "Employee" means:

(1) a person who is a public employee within the definition of section 179A.03, subdivision 14, who is insurance eligible and is employed by an eligible employer;

(2) an elected public official of an eligible employer who is insurance eligible; or

(3) a person employed by a labor organization or employee association certified as an exclusive representative of employees of an eligible employer or by another public employer approved by the commissioner, so long as the plan meets the requirements of a governmental plan under United States Code, title 29, section 1002(32).

(c) [ELIGIBLE EMPLOYER.] "Eligible employer" means:

(1) a public employer within the definition of section 179A.03, subdivision 15, that is a town, county, city, school district as defined in section 120.02, service cooperative as defined in section 123.582, intermediate district as defined in section 136C.02, subdivision 7 136D.01, cooperative center for vocational education as defined in section 123.351, regional management information center as defined in section 121.935, or an education unit organized under the joint powers action, section 471.59; or

(2) an exclusive representative of employees, as defined in paragraph (b); or

(3) another public employer approved by the commissioner.

(d) [EXCLUSIVE REPRESENTATIVE.] "Exclusive representative" means an exclusive representative as defined in section 179A.03, subdivision 8.

(e) [LABOR-MANAGEMENT COMMITTEE.] "Labor-management committee" means the committee established by subdivision 4.

(f) [PROGRAM.] "Program" means the statewide public employees insurance program created by subdivision 3.

Sec. 2. Minnesota Statutes 1995 Supplement, section 65B.132, is amended to read:

65B.132 [STUDENT DISCOUNTS; ELIGIBILITY.]

Any insurance company providing discounts on automobile insurance premiums to eligible persons attending colleges and universities must provide the discount to eligible students enrolled in technical colleges accredited by the department of children, families, and learning.

Sec. 3. Minnesota Statutes 1994, section 120.06, subdivision 1, is amended to read:

Subdivision 1. [AGE LIMITATIONS; PUPILS.] All schools supported in whole or in part by state funds are public schools. Admission to a public school, except a technical college, is free to any person who resides within the district which operates the school, who is under 21 years of age, and who satisfies the minimum age requirements imposed by this section. Notwithstanding the provisions of any law to the contrary, the conduct of all students under 21 years of age attending a public secondary school shall be governed by a single set of reasonable rules and regulations promulgated by the school board. No person shall be admitted to any public school (1) as a kindergarten pupil, unless the pupil is at least five years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences; or (2) as a 1st grade student, unless the pupil is at least six years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences or has completed kindergarten; except that any school board may establish a policy for admission of selected pupils at an earlier age.

Sec. 4. Minnesota Statutes 1994, section 120.08, subdivision 3, is amended to read:

Subd. 3. [SEVERANCE PAY.] A district shall pay severance pay to a teacher who is placed on unrequested leave of absence by the district as a result of an agreement under this section. A teacher is eligible under this subdivision if the teacher:

(1) is a teacher, as defined in section 125.12, subdivision 1, but not a superintendent;

(2) has a continuing contract with the district according to section 125.12, subdivision 4.

The amount of severance pay shall be equal to the teacher's salary for the school year during which the teacher was placed on unrequested leave of absence minus the gross amount the teacher was paid during the 12 months following the teacher's termination of salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching license, and minus the amount a teacher receives as severance or other similar pay according to a contract with the district or district policy. These entities include, but are not limited to, the school district that placed the teacher on unrequested leave of absence, another school district in Minnesota, an education district, an intermediate school district, an ECSU, a board formed under section 471.59, a technical college, a state residential academy, the Minnesota center for arts education, a vocational center, or a special education cooperative. These entities do not include a school district in another state, a Minnesota public post-secondary institution, or a state agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of employment as a teacher without loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose. To determine the amount of severance pay that is due for the second six months of the 12 months following the termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further reinstatement rights under section 125.12, subdivision 6a or 6b. If the teacher receives severance pay, the teacher shall not receive credit for any years of service in the district paying severance pay prior to the year in which the teacher becomes eligible to receive severance pay.

The severance pay is subject to section 465.72. The district may levy annually according to section 124.912, subdivision 1, for the severance pay.

Sec. 5. Minnesota Statutes 1995 Supplement, section 121.15, subdivision 1, is amended to read:

Subdivision 1. [CONSULTATION.] A school district shall consult with the commissioner of children, families, and learning before developing any plans and specifications to construct, remodel, or improve the building or site of an educational facility, other than a technical college, for which the estimated cost exceeds $100,000. This consultation shall occur before a referendum for bonds, solicitation for bids, or use of capital expenditure facilities revenue according to section 124.243, subdivision 6, clause (2). The commissioner may require the district to participate in a management assistance plan before conducting a review and comment on the project.

Sec. 6. Minnesota Statutes 1994, section 121.914, subdivision 1, is amended to read:

Subdivision 1. The "operating debt" of a school district means the net negative undesignated fund balance in all school district funds, other than capital expenditure, building construction, debt service, and trust and agency, and post-secondary vocational technical education funds, calculated as of June 30 of each year in accordance with the uniform financial accounting and reporting standards for Minnesota school districts.

Sec. 7. Minnesota Statutes 1994, section 121.915, is amended to read:

121.915 [REORGANIZATION OPERATING DEBT.]

The "reorganization operating debt" of a school district means the net negative undesignated fund balance in all school district funds, other than capital expenditure, building construction, debt redemption, and trust and agency, and post-secondary vocational technical education funds, calculated in accordance with the uniform financial accounting and reporting standards for Minnesota school districts as of:

(1) June 30 of the fiscal year before the first year that a district receives revenue according to section 124.2725; or

(2) June 30 of the fiscal year before the effective date of reorganization according to section 122.22 or 122.23.

Sec. 8. Minnesota Statutes 1995 Supplement, section 121.935, subdivision 1a, is amended to read:

Subd. 1a. [CENTER FOR DISTRICTS WITH ALTERNATIVE SYSTEMS.] Districts that operate alternative systems approved by the state board according to section 121.936 commissioner according to section 121.932, subdivision 4a, may create one regional management information center under section 471.59. The center shall have all of the powers authorized under section 471.59.

The center board may purchase or lease equipment. It may not employ any staff but may enter into a term contract for services. A person providing services according to a contract with the center board is not a state employee.

The department shall provide the center all services that are provided to regional centers formed under subdivision 1, including transferring software and providing accounting assistance.

Sec. 9. Minnesota Statutes 1994, section 122.32, subdivision 1, is amended to read:

Subdivision 1. If there be any organized school district not maintaining a classified school within the district, except those districts which have a contract with the a state university board, or with the board of regents of the University of Minnesota for the education of all the children of the district, such district shall hereby be dissolved as of the date the district ceases to maintain a classified school. Any such district not maintaining a classified school shall forthwith be attached by order of the county board to such district maintaining classified elementary or secondary schools upon notice and hearing as provided in section 122.22 for the attachment of dissolved districts.

Sec. 10. Minnesota Statutes 1994, section 122.535, subdivision 6, is amended to read:

Subd. 6. [SEVERANCE PAY.] A district shall pay severance pay to a teacher who is placed on unrequested leave of absence by the district as a result of the agreement. A teacher is eligible under this subdivision if the teacher:

(1) is a teacher, as defined in section 125.12, subdivision 1, but not a superintendent;

(2) has a continuing contract with the district according to section 125.12, subdivision 4.

The amount of severance pay shall be equal to the teacher's salary for the school year during which the teacher was placed on unrequested leave of absence minus the gross amount the teacher was paid during the 12 months following the teacher's termination of salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching license, and minus the amount a teacher receives as severance or other similar pay according to a contract with the district or district policy. These entities include, but are not limited to, the school district that placed the teacher on unrequested leave of absence, another school district in Minnesota, an education district, an intermediate school district, an ECSU, a board formed under section 471.59, a technical college, a state residential academy, the Minnesota center for arts education, a vocational center, or a special education cooperative. These entities do not include a school district in another state, a Minnesota public post-secondary institution, or a state agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of employment as a teacher without loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose. To determine the amount of severance pay that is due for the second six months of the 12 months following the termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further reinstatement rights under section 125.12, subdivision 6a or 6b. If the teacher receives severance pay, the teacher shall not receive credit for any years of service in the district paying severance pay prior to the year in which the teacher becomes eligible to receive severance pay.

The severance pay is subject to section 465.72. The district may levy annually according to section 124.912, subdivision 1, for the severance pay.

Sec. 11. Minnesota Statutes 1994, section 122.895, subdivision 2, is amended to read:

Subd. 2. [APPLICABILITY.] This section applies to:

(1) an education district organized according to sections 122.91 to 122.95;

(2) a cooperative vocational center organized according to section 123.351;

(3) a joint powers district or board organized according to section 471.59 which employs teachers to provide instruction;

(4) a joint vocational technical district organized according to sections 136C.60 to 136C.69;

(5) an intermediate district organized according to chapter 136D;

(6) (5) an educational cooperative service unit a service cooperative which employs teachers to provide instruction; and

(7) (6) school districts participating in an agreement for the cooperative provision of special education services to children with disabilities according to section 120.17, subdivision 4.

Sec. 12. Minnesota Statutes 1994, section 123.351, subdivision 10, is amended to read:

Subd. 10. [REVENUE.] A secondary vocational cooperative may be eligible for revenue under section 124.575 124.573.

Sec. 13. Minnesota Statutes 1994, section 123.37, subdivision 1a, is amended to read:

Subd. 1a. The board may authorize its superintendent or business manager, or technical college president in those districts operating a technical college, to lease, purchase, and contract for goods and services within the budget as approved by the board, provided that any transaction in an amount exceeding the minimum amount for which bids are required must first be specifically authorized by the board and must fulfill all other applicable requirements in subdivision 1.

Sec. 14. Minnesota Statutes 1994, section 123.38, subdivision 2, is amended to read:

Subd. 2. The board shall take charge of and control all cocurricular school activities of the teachers and children of the public schools in that district held in the school building or school grounds or under the supervision or direction of the school board and to that end adopt rules and regulations for the conduct of these activities in which the schools of the district or any class or pupils therein may participate. All money received on account of such activities shall be turned over to the school district treasurer, who shall keep the same in the general fund or the technical colleges fund, if applicable, to be disbursed for expenses and salaries connected with the activities, or otherwise, by the board upon properly allowed itemized claims.

No cocurricular activity shall be participated in by the teachers or pupils in the public schools of such district, nor shall the school name or any allied name be used in connection therewith, except by consent and direction of the board.

Sec. 15. Minnesota Statutes 1994, section 123.38, subdivision 2b, is amended to read:

Subd. 2b. (a) The board may take charge of and control all extracurricular activities of the teachers and children of the public schools in the district. Extracurricular activities shall mean all direct and personal services for public school pupils for their enjoyment that are managed and operated under the guidance of an adult or staff member.

(b) Extracurricular activities have all of the following characteristics:

(1) they are not offered for school credit nor required for graduation;

(2) they are generally conducted outside school hours, or if partly during school hours, at times agreed by the participants, and approved by school authorities;

(3) the content of the activities is determined primarily by the pupil participants under the guidance of a staff member or other adult.

(c) If the board does not take charge of and control extracurricular activities, these activities shall be self-sustaining with all expenses, except direct salary costs and indirect costs of the use of school facilities, met by dues, admissions, or other student fundraising events. The general fund or the technical colleges fund, if applicable, shall reflect only those salaries directly related to and readily identified with the activity and paid by public funds. Other revenues and expenditures for extra curricular activities must be recorded according to the "Manual of Instruction for Uniform Student Activities Accounting for Minnesota School Districts and Area Vocational-Technical Colleges." Extracurricular activities not under board control must have an annual financial audit and must also be audited annually for compliance with this section.

(d) If the board takes charge of and controls extracurricular activities, any or all costs of these activities may be provided from school revenues and all revenues and expenditures for these activities shall be recorded in the same manner as other revenues and expenditures of the district.

(e) If the board takes charge of and controls extracurricular activities, no such activity shall be participated in by the teachers or pupils in the district, nor shall the school name or any allied name be used in connection therewith, except by consent and direction of the board.

Sec. 16. Minnesota Statutes 1994, section 124.573, subdivision 3, is amended to read:

Subd. 3. [COMPLIANCE WITH RULES.] Aid shall be paid under this section only for services rendered or for costs incurred in secondary vocational education programs approved by the commissioner and operated in accordance with rules promulgated by the state board. These rules shall provide minimum student-staff ratios required for a secondary vocational education program area to qualify for this aid. The rules must not require the collection of data at the program or course level to calculate secondary vocational aid. The rules shall not require any minimum number of administrative staff, any minimum period of coordination time or extended employment for secondary vocational education personnel, or the availability of vocational student activities or organizations for a secondary vocational education program to qualify for this aid. The requirement in these rules that program components be available for a minimum number of hours shall not be construed to prevent pupils from enrolling in secondary vocational education courses on an exploratory basis for less than a full school year. The state board shall not require a school district to offer more than four credits or 560 hours of vocational education course offerings in any school

year. Rules relating to secondary vocational education programs shall not incorporate the provisions of the state plan for vocational education by reference. This aid shall be paid only for services rendered and for costs incurred by essential, licensed personnel who meet the work experience requirements for licensure pursuant to the rules of the state board. Licensed personnel means persons holding a valid secondary vocational license issued by the commissioner, except that when an average of five or fewer secondary full-time equivalent students are enrolled per teacher in an approved post-secondary program at intermediate district No. 287, 916, or 917, licensed personnel means persons holding a valid vocational license issued by the commissioner or, the state board for vocational technical education, or the board of trustees of the Minnesota state colleges and universities. Notwithstanding section 124.15, the commissioner may modify or withdraw the program or aid approval and withhold aid under this section without proceeding under section 124.15 at any time. To do so, the commissioner must determine that the program does not comply with rules of the state board or that any facts concerning the program or its budget differ from the facts in the district's approved application.

Sec. 17. Minnesota Statutes 1995 Supplement, section 124.71, subdivision 2, is amended to read:

Subd. 2. Commissioner as used in sections 124.71 to 124.76 means the commissioner of children, families, and learning or, for certificates for a technical college, the chancellor of vocational technical education.

Sec. 18. Minnesota Statutes 1995 Supplement, section 124.912, subdivision 1, is amended to read:

Subdivision 1. [STATUTORY OBLIGATIONS.] (a) A school district may levy the amount authorized for liabilities of dissolved districts pursuant to section 122.45; the amounts necessary to pay the district's obligations under section 268.06, subdivision 25; the amounts necessary to pay for job placement services offered to employees who may become eligible for benefits pursuant to section 268.08; the amounts necessary to pay the district's obligations under section 127.05; the amounts authorized by section 122.531; the amounts necessary to pay the district's obligations under section 122.533; and for severance pay required by sections 120.08, subdivision 3, and 122.535, subdivision 6.

(b) An education district that negotiates a collective bargaining agreement for teachers under section 122.937 may certify to the department of children, families, and learning the amount necessary to pay all of the member districts' obligations and the education district's obligations under section 268.06, subdivision 25.

The department of children, families, and learning must allocate the levy amount proportionately among the member districts based on adjusted net tax capacity. The member districts must levy the amount allocated.

(c) 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. 19. Minnesota Statutes 1995 Supplement, section 125.05, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of teaching shall license teachers, as defined in section 125.03, subdivision 1, except for supervisory personnel, as defined in section 125.03, subdivision 4.

(b) The state board of education shall license supervisory personnel as defined in section 125.03, subdivision 4.

(c) The state board of technical colleges, according to section 136C.04, shall license post-secondary vocational and adult vocational teachers, support personnel, and supervisory personnel in technical colleges.

(d) Licenses under the jurisdiction of the board of teaching and the state board of education must be issued through the licensing section of the department of children, families, and learning.

Sec. 20. Minnesota Statutes 1994, section 125.09, subdivision 4, is amended to read:

Subd. 4. [MANDATORY REPORTING.] A school board shall report to the board of teaching, the state board of education, or the state board of technical colleges trustees of the Minnesota state colleges and universities, whichever has jurisdiction over the teacher's license, when its teacher is discharged or resigns from employment after a charge

is filed with the school board under section 125.17, subdivisions 4, clauses (1), (2), and (3), and 5, or after charges are filed that are ground for discharge under section 125.12, subdivision 8, clauses (a), (b), (c), (d), and (e), or when a teacher is suspended or resigns while an investigation is pending under section 125.12, subdivision 8, clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, clauses (1), (2), and (3), and 5; or 626.556. The report must be made to the board within ten days after the discharge, suspension, or resignation has occurred. The board to which the report is made shall investigate the report for violation of subdivision 1 and the reporting school board shall cooperate in the investigation. Notwithstanding any provision in chapter 13 or any law to the contrary, upon written request from the licensing board having jurisdiction over the teacher's license, a school board or school superintendent shall provide the licensing board with information about the teacher from the school district's files, any termination or disciplinary proceeding, any settlement or compromise, or any investigative file. Upon written request from the appropriate licensing board, a school board or school superintendent may, at the discretion of the school board or school superintendent, solicit the written consent of a student and the student's parent to provide the licensing board with information that may aid the licensing board in its investigation and license proceedings. The licensing board's request need not identify a student or parent by name. The consent of the student and the student's parent must meet the requirements of chapter 13 and Code of Federal Regulations, title 34, section 99.30. The licensing board may provide a consent form to the school district. Any data transmitted to any board under this section shall be private data under section 13.02, subdivision 12, notwithstanding any other classification of the data when it was in the possession of any other agency.

The board to which a report is made shall transmit to the attorney general's office any record or data it receives under this subdivision for the sole purpose of having the attorney general's office assist that board in its investigation. When the attorney general's office has informed an employee of the appropriate licensing board in writing that grounds exist to suspend or revoke a teacher's license to teach, that licensing board must consider suspending or revoking or decline to suspend or revoke the teacher's license within 45 days of receiving a stipulation executed by the teacher under investigation or a recommendation from an administrative law judge that disciplinary action be taken.

Sec. 21. Minnesota Statutes 1994, section 125.1385, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY; LIMITS.] The state university board of trustees of the Minnesota state colleges and universities and the board of regents of the University of Minnesota may develop programs to exchange faculty between colleges or schools of education and school districts, subject to section 125.138.

The programs must be used to assist in improving teacher education by involving current teachers in education courses and placing post-secondary faculty in elementary and secondary classrooms. Programs must include exchanges that extend beyond the immediate service area of the institution to address the needs of different types of schools, students, and teachers.

Sec. 22. Minnesota Statutes 1994, section 125.185, subdivision 4, is amended to read:

Subd. 4. [LICENSE AND RULES.] (a) The board shall adopt rules to license public school teachers and interns subject to chapter 14.

(b) The board shall adopt rules requiring a person to successfully complete a skills examination in reading, writing, and mathematics as a requirement for initial teacher licensure. Such rules shall require college and universities offering a board approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.

(c) The board shall adopt rules to approve teacher preparation programs.

(d) The board shall provide the leadership and shall adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes.

(e) The board shall adopt rules requiring successful completion of an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective on the dates determined by the board, but not later than July 1, 1999.

(f) The board shall adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.

(g) The board shall grant licenses to interns and to candidates for initial licenses.

(h) The board shall design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board shall receive recommendations from local committees as established by the board for the renewal of teaching licenses.

(j) The board shall grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 125.09 and 214.10. The board shall not establish any expiration date for application for life licenses.

(k) With regard to post-secondary vocational education teachers the board of teaching shall adopt and maintain as its rules the rules of the state board of technical colleges.

Sec. 23. Minnesota Statutes 1994, section 125.60, subdivision 2, is amended to read:

Subd. 2. The board of any district may grant an extended leave of absence without salary to any full- or part-time elementary, or secondary, or technical college teacher who has been employed by the district for at least five years and has at least ten years of allowable service, as defined in section 354.05, subdivision 13, or the bylaws of the appropriate retirement association or ten years of full-time teaching service in Minnesota public elementary, and secondary, and technical colleges schools. The maximum duration of an extended leave of absence pursuant to this section shall be determined by mutual agreement of the board and the teacher at the time the leave is granted and shall be at least three but no more than five years. An extended leave of absence pursuant to this section shall be taken by mutual consent of the board and the teacher. If the school board denies a teacher's request, it shall provide reasonable justification for the denial.

Sec. 24. Minnesota Statutes 1994, section 125.611, subdivision 1, is amended to read:

Subdivision 1. [CRITERIA.] For purposes of this section, "teacher" means a teacher as defined in section 125.03, subdivision 1, who:

(a) is employed in the a public elementary, or secondary, or technical colleges school in the state and

(b) either

(1)(i) has not less than 15 total years of full-time teaching service in elementary, secondary, and technical colleges, or at least 15 years of allowable service as defined in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article II, section 1 and

(ii) has or will have attained the age of 55 years but less than 65 years as of the June 30 in the school year during which an application for an early retirement incentive is made, or

(2) has not less than 30 total years of full-time teaching service in elementary, secondary, and technical colleges, or at least 30 years of allowable service as defined in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article II, section 1.

Sec. 25. Minnesota Statutes 1995 Supplement, section 126.151, subdivision 1, is amended to read:

Subdivision 1. [ACTIVITIES OF THE ORGANIZATION.] Any student enrolled in a vocational technical education program approved by the state boards board of education and technical colleges or the board of trustees of the Minnesota state colleges and universities may belong to a vocational student organization that is operated as an integral part of the vocational program. The commissioner of children, families, and learning and the chancellor of technical colleges board of trustees of the Minnesota state colleges and universities may provide necessary technical assistance and leadership at the state level for administration of approved vocational student organizations and fiscal accounts, including administration of state and national conferences.

Sec. 26. Minnesota Statutes 1994, section 126.151, subdivision 2, is amended to read:

Subd. 2. [ACCOUNTS OF THE ORGANIZATION.] The commissioner and the state board of technical trustees of the Minnesota state colleges and universities may retain dues and other money collected on behalf of students participating in approved vocational student organizations and may deposit the money in separate accounts. The money in these accounts shall be available for expenditures for state and national activities related to specific organizations. Administration of money collected under this section is not subject to the provisions of chapters 15, 16A, and 16B, and may be deposited outside the state treasury. Money shall be administered under the policies of the applicable state board or agency relating to post-secondary and secondary vocational student organizations and is subject to audit by the legislative auditor. Any unexpended money shall not cancel but may be carried forward to the next fiscal year.

Sec. 27. [136D.01] [INTERMEDIATE DISTRICT.]

"Intermediate district" means a district with a cooperative program which has been established under Laws 1967, chapter 822, as amended; Laws 1969, chapter 775, as amended; and Laws 1969, chapter 1060, as amended, offering integrated services for secondary, post-secondary, and adult students in the areas of vocational education, special education, and other authorized services.

Sec. 28. Minnesota Statutes 1994, section 136D.23, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC AGENCY.] The joint school board shall be a public agency of the participating school districts and may receive and disburse federal and state funds made available to it or to the participating school districts, including moneys described in section 136C.07.

Sec. 29. Minnesota Statutes 1994, section 136D.83, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC AGENCY.] The joint school board shall be a public agency of the participating school districts and may receive and disburse federal and state funds made available to it or to the participating school districts, including moneys described in section 136C.07.

Sec. 30. Minnesota Statutes 1994, section 144.4165, is amended to read:

144.4165 [TOBACCO PRODUCTS PROHIBITED IN PUBLIC SCHOOLS.]

No person shall at any time smoke, chew, or otherwise ingest tobacco or a tobacco product in a public school, as defined in section 120.05, subdivision 2. This prohibition extends to all facilities, whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents, contracts for, or controls. This prohibition does not apply to a technical college. Nothing in this section shall prohibit the lighting of tobacco by an adult as a part of a traditional Indian spiritual or cultural ceremony. For purposes of this section, an Indian is a person who is a member of an Indian tribe as defined in section 257.351, subdivision 9.

Sec. 31. [REPEALER.]

Minnesota Statutes 1994, sections 121.11, subdivision 15; and 136D.75, are repealed.

Section 1. Minnesota Statutes 1995 Supplement, section 121.904, subdivision 4c, is amended to read:

Subd. 4c. [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money appropriated under section 16A.152, subdivision 2, must be used to reduce the levy recognition percent specified in subdivision 4a, clauses (b)(2) and (b)(3), for taxes payable in the succeeding same calendar year the appropriation is made.

(b) The levy recognition percent shall equal the result of the following computation: the current levy recognition percent, times the ratio of

(1) the statewide total amount of levy recognized in June of the year in which the taxes are payable pursuant to subdivision 4a, clause (b), excluding those levies that are shifted for revenue recognition but are not included in the computation of the adjustment to aids under section 124.155, subdivision 1, reduced by the difference between the

amount of money appropriated under section 16A.152, subdivision 2, and the amount required for the adjustment payment under clause (d), to

(2) the statewide total amount of the levy recognized in June of the year in which the taxes are payable pursuant to subdivision 4a, clause (b), excluding those levies that are shifted for revenue recognition but are not included in the computation of the adjustment to aids under section 124.155, subdivision 1.

The result shall be rounded up to the nearest one-tenth of a percent. However, in no case shall the levy recognition percent be reduced below zero or increased above the current levy recognition percent.

(c) The commissioner of finance must certify to the commissioner of children, families, and learning the amount available to reduce the levy recognition percent computed under this subdivision by January 5 of each year. The commissioner of children, families, and learning must notify school districts of a change in the levy recognition percent by January 15 of the same month.

(d) When the levy recognition percent is increased or decreased as provided in this subdivision, a special aid adjustment shall be made to each school district with an operating referendum levy:

(i) When the levy recognition percent is increased from the prior fiscal year, the commissioner of children, families, and learning shall calculate the difference between (1) the amount of the levy under section 124A.03, that is recognized as revenue for the current fiscal year according to subdivision 4a; and (2) the amount of the levy, under section 124A.03, that would have been recognized as revenue for the current fiscal year had the percentage according to subdivision 4a, not been increased. The commissioner shall reduce other aids due the district by the amount of the difference. This aid reduction shall be in addition to the aid reduction required because of the increase pursuant to this subdivision of the levy recognition percent.

(ii) When the levy recognition percent is reduced from the prior fiscal year, a special adjustment payment shall be made to each school district with an operating referendum levy that received an aid reduction when the levy recognition percent was last increased. The special adjustment payment shall be in addition to the additional payments required because of the reduction pursuant to this subdivision of the levy recognition percent. The amount of the special adjustment payment shall be computed by the commissioner of children, families, and learning such that any remaining portion of the aid reduction these districts received that has not been repaid is repaid on a proportionate basis as the levy recognition percent is reduced from 50 percent to 31 percent. The special adjustment payment must be included in the state aid payments to school districts according to the schedule specified in section 124.195, subdivision 3.

(e) The commissioner of finance shall transfer from the general fund to the education aids appropriations specified by the commissioner of children, families, and learning, the amounts needed to finance the additional payments required because of the reduction pursuant to this subdivision of the levy recognition percent. Payments to a school district of additional state aids resulting from a reduction in the levy recognition percent must be included in the cash metering of payments made according to section 124.195 after January 15, and must be paid in a manner consistent with the percent specified in that section.

Sec. 2. Minnesota Statutes 1995 Supplement, section 124.17, subdivision 1, is amended to read:

Subdivision 1. [PUPIL UNIT.] Pupil units for each resident pupil in average daily membership shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individual education plan is counted as the ratio of the number of hours of assessment and education service to 825 with a minimum of 0.28, but not more than one.

(b) A prekindergarten pupil who is assessed but determined not to be handicapped is counted as the ratio of the number of hours of assessment service to 825.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individual education program plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as .53 of a pupil unit for fiscal year 1995 and thereafter.

(e) A pupil who is in any of grades 1 to 6 is counted as 1.06 pupil units for fiscal year 1995 and thereafter.

(f) For fiscal year 1996 and fiscal year 1997, a pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in any of grades 7 to 12 is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(g) For fiscal year 1996 and fiscal year 1997, a pupil who is in the post-secondary enrollment options program is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in the post-secondary enrollment options program is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in the post-secondary enrollment options program is counted as 1.2 pupil units.

(h) In fiscal year 1998, the sum of pupil units used in computing a district's general education revenue and referendum revenue may not be reduced by more than two percent due to the reduction in the secondary pupil weight from 1.3 as specified in paragraphs (f) and (g). In fiscal year 1999 and later years, the sum of pupil units used in computing a district's general education revenue and referendum revenue may not be decreased by more than four percent due to the reduction in the secondary weight from 1.3 as specified in paragraphs (f) and (g).

Sec. 3. Laws 1995, First Special Session chapter 3, article 14, section 5, is amended to read:

Sec. 5. [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.]

The appropriations for the 1998-99 biennium for programs contained in this act shall be $2,943,900,000 $2,968,714,000 for fiscal year 1998 and $3,076,600,000 $3,022,210,000 for fiscal year 1999, plus or minus any adjustments due to variance in pupil forecasts, levies, or other factors generating entitlements for the general revenue program. These amounts shall first be allocated to fully fund the general revenue program. Amounts remaining shall be allocated to other programs in proportion to the fiscal year 1997 appropriations or to entitlements generated by existing law for those programs for each year, up to the amount of the entitlement or the fiscal year 1997 appropriations. Any amounts remaining after allocation to these other programs shall be maintained for allocation recommendations by the governor and legislature in the 1997 session.

Sec. 4. [LEVY RECOGNITION; REFERENDUM.]

Notwithstanding Minnesota Statutes 1995 Supplement, section 121.904, subdivision 4a, the levy recognition percentage for fiscal year 1996 and later applied to the operating referendum levy is 31.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 and 4 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to education; prekindergarten through grade 12; providing for general education; transportation; special programs; community education; facilities; organization and cooperation; education excellence; other education programs and financing; education policy provisions; libraries; state agencies; technology; conforming amendments; budget reserve and cost management; appropriating money; amending Minnesota Statutes 1994, sections 120.06, subdivision 1; 120.08, subdivision 3; 120.17, subdivision 9, and by adding a subdivision; 120.1701, subdivision 10; 120.73, subdivision 1; 121.8355, subdivision 1, and by adding a subdivision; 121.906; 121.914, subdivision 1; 121.915; 122.32, subdivision 1; 122.535, subdivision 6; 122.895, subdivision 2; 123.35, subdivision 19a, and by adding a subdivision; 123.351, subdivision 10; 123.3514, subdivision 9; 123.37, subdivision 1a; 123.38, subdivisions 2 and 2b; 123.39, subdivision 8b; 123.932, subdivisions 1b, 1c, 1e, and 11; 123.933, as amended; 123.935, subdivisions 2 and 7; 124.09; 124.17, subdivision 1e, and by adding subdivisions; 124.195, subdivision 8; 124.239, subdivision 4; 124.2711, subdivision 6; 124.2713, subdivision 10; 124.273, by adding subdivisions; 124.276; 124.311, subdivisions 1, 2, 3, 4, 5, and 7; 124.573, subdivision 3; 124.86, subdivisions 1 and 2; 124.91, subdivision 1, and by adding a subdivision; 124.912, subdivision 6; 124.916, subdivision 4; 124.95, subdivision 1; 124A.02, subdivision 25; 124A.029, subdivision 4; 124A.03, subdivisions 2b, 3b, and by adding a subdivision; 124A.0311, subdivision 3; 124A.035, subdivision 4; 124A.036, by adding a subdivision; 124A.22, by adding a subdivision; 124A.28, subdivision 1; 124A.291; 124C.45, by adding a subdivision; 125.05, subdivision 1a, and by adding a subdivision; 125.09, subdivision 4; 125.1385, subdivision 1; 125.185, subdivision 4; 125.60, subdivision 2; 125.611, subdivision 1; 125.70; 125.701; 125.703; 125.704; 125.705, subdivision 1; 126.151, subdivision 2; 126.22, subdivision 1; 126.531, subdivision 3; 126.83; 128D.11, subdivisions 3, 5, 8, and 10; 134.34, by adding a subdivision; 136D.23, subdivision 1; 136D.83, subdivision 1; 144.4165;

169.4504, by adding a subdivision; 256.736, subdivision 11; 466.01, subdivision 1; and 471.59, subdivision 11; Minnesota Statutes 1995 Supplement, sections 13.46, subdivision 2; 43A.316, subdivision 2; 65B.132; 115A.072, subdivision 1; 120.064, subdivision 9; 120.1045, subdivision 1, and by adding a subdivision; 120.17, subdivisions 3a, 3b, and 6; 120.1701, subdivision 20; 120.181; 120.74, subdivision 1; 121.11, subdivision 7c; 121.15, subdivision 1; 121.904, subdivision 4c; 121.911, subdivision 5; 121.917, subdivision 4; 121.935, subdivision 1a; 123.3514, subdivisions 6 and 6b; 123.7991, subdivision 2; 124.155, subdivision 2; 124.17, subdivision 1; 124.195, subdivision 12; 124.223, subdivision 4; 124.225, subdivisions 8l, 14, 16, and 17; 124.227; 124.243, subdivision 2; 124.2445; 124.2455; 124.248, subdivisions 1, 1a, 2, and 3; 124.273, subdivisions 1c and 1d; 124.314, subdivision 2; 124.3201, subdivisions 1, 2, 3, 5, and by adding subdivisions; 124.3202; 124.323, subdivisions 1 and 2; 124.574, subdivisions 2f and 2g; 124.71, subdivision 2; 124.912, subdivision 1; 124.918, subdivision 2; 124.961; 124A.03, subdivision 2; 124A.0311, subdivision 2; 124A.22, subdivisions 2a, 10, and 13b; 124A.23, subdivision 4; 124C.74, subdivisions 2 and 3; 125.05, subdivision 1; 126.151, subdivision 1; 126.22, subdivisions 2, 3, 5, and 8; 126.23; 126.70, subdivision 1; 128B.03, subdivision 3a; 134.46; 169.01, subdivision 6; 237.065; 325G.203, subdivision 11; and 631.40, subdivision 1a; Laws 1993, chapter 224, article 1, section 34, subdivisions 2 and 3; article 12, sections 39, as amended; and 41, as amended; Laws 1995, First Special Session chapter 3, article 1, sections 61; and 63, subdivision 2; article 2, section 53; article 3, section 19, subdivisions 7 and 15; article 4, section 29, subdivision 10; article 5, section 20, subdivisions 5, 6, and 7; article 6, section 17, subdivisions 2, 4, and by adding subdivisions; article 7, section 5, subdivision 4; article 8, sections 25, subdivisions 2 and 18; and 27; article 11, sections 21, subdivision 2; 22; and 23; article 12, sections 8, subdivision 1; and 12, subdivision 7; article 14, section 5; article 15, sections 25; and 26, subdivisions 7, 8, and 10; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 123; 124; 124C; 125; 126; and 136D; repealing Minnesota Statutes 1994, sections 121.11, subdivision 15; and 136D.75; Minnesota Statutes 1995 Supplement, sections 120.1045, subdivision 3; and 126A.02, subdivision 2; Laws 1993, chapter 224, article 1, section 34, subdivision 1; Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700."

We request adoption of this report and repassage of the bill.

House Conferees: Alice M. Johnson, Lyndon R. Carlson, Matt Entenza, Jeff Bertram and Robert Ness.

Senate Conferees: Lawrence J. Pogemiller, Jane Krentz, Jerry R. Janezich, Martha R. Robertson and David L. Knutson.

Johnson, A., moved that the report of the Conference Committee on H. F. No. 2156 be adopted and that the bill be repassed as amended by the Conference Committee.

Koppendrayer raised a point of order pursuant to Joint Rule 2.06 relating to Conference Committees. The Speaker ruled the point of order not well taken.

Koppendrayer moved that the House refuse to adopt the Conference Committee report on H. F. No. 2156, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Koppendrayer motion and the roll was called. There were 98 yeas and 32 nays as follows:

Those who voted in the affirmative were:

Abrams       Goodno       Leighton     Orenstein    Sviggum
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8844

Anderson, B. Greenfield   Leppik       Osskopp      Swenson, D.
Bettermann   Greiling     Lieder       Ostrom       Swenson, H.
Bishop       Gunther      Lindner      Otremba      Sykora
Boudreau     Haas         Long         Ozment       Tompkins
Bradley      Hackbarth    Lynch        Paulsen      Tuma
Broecker     Harder       Macklin      Pawlenty     Tunheim
Carlson, S.  Holsten      Mahon        Pellow       Van Dellen
Commers      Jefferson    Mares        Perlt        Van Engen
Daggett      Jennings     Marko        Peterson     Vickerman
Davids       Johnson, V.  McCollum     Pugh         Wagenius
Dehler       Kalis        McElroy      Rest         Warkentin
Delmont      Kelley       McGuire      Rhodes       Weaver
Dempsey      Kelso        Milbert      Rostberg     Wenzel
Dorn         Knight       Molnau       Sarna        Winter
Erhardt      Knoblach     Mulder       Schumacher   Wolf
Farrell      Koppendrayer Olson, E.    Seagren      Worke
Finseth      Kraus        Olson, M.    Skoglund     Workman 
Frerichs     Krinkie      Onnen        Smith        
Girard       Larsen       Opatz        Stanek       

Anderson, R. Cooper       Jaros        Mariani      Tomassoni
Bakk         Dauner       Johnson, A.  Munger       Trimble
Bertram      Dawkins      Johnson, R.  Murphy       Wejcman
Brown        Entenza      Kahn         Orfield      Sp.Anderson,I
Carlson, L.  Garcia       Kinkel       Osthoff      
Carruthers   Hausman      Lourey       Rukavina     
Clark        Huntley      Luther       Solberg      

A bill for an act relating to public funds; regulating the deposit and investment of these funds, and agreements related to these funds; requiring a study; amending Minnesota Statutes 1994, section 6.745; proposing coding for new law as Minnesota Statutes, chapter 118A; repealing Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66; and 475.76.

March 21, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 1567, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 1567 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 6.745, as amended by Laws 1995, chapter 134, section 1, is amended to read:

6.745 [SUMMARY BUDGET DATA TO THE STATE AUDITOR.]

Subdivision 1. [CITIES.] Annually, upon adoption of the city budget, the city council of each home rule charter or statutory city shall forward summary budget information to the office of the state auditor. The summary budget information shall be provided on forms prescribed by the state auditor. The office of the state auditor shall work with representatives of city government to develop a budget reporting form that conforms with city budgeting practices and provides the necessary summary budget information to the office of the state auditor. The summary budget data must include separately any net unrealized gains or losses from investments. The summary budget data shall be provided to the office of the state auditor no later than January 31 of each budget year.

Subd. 2. [COUNTIES.] Annually, upon adoption of the county budget, the county board shall forward summary budget information to the office of the state auditor. The summary budget information shall be provided on forms prescribed by the state auditor. The office of the state auditor shall work with representatives of county government to develop a budget reporting form that conforms with county budgeting practices and provides the necessary summary budget information to the office of the state auditor. The summary budget data must include separately any net unrealized gains or losses from investments. The summary budget data shall be provided to the office of the state auditor no later than December 31 of the year preceding each budget year.

Sec. 2. [118A.01] [PUBLIC FUNDS; DEPOSITORIES AND INVESTMENTS.]

Subdivision 1. [DEFINITIONS.] The definitions in this section apply to sections 118A.01 to 118A.06.

Subd. 2. [GOVERNMENT ENTITY.] "Government entity" means a county, city, town, school district, hospital district, public authority, public corporation, public commission, special district, any other political subdivision, except an entity whose investment authority is specified under chapter 11A or 356A.

Subd. 3. [FINANCIAL INSTITUTION.] "Financial institution" means a savings association, commercial bank, trust company, credit union, or industrial loan and thrift company.

Subd. 4. [PUBLIC FUNDS.] "Public funds" means all general, special, permanent, trust, and other funds, regardless of source or purpose, held or administered by a government entity, unless otherwise restricted.

Sec. 3. [118A.02] [AUTHORIZATION FOR DEPOSIT AND INVESTMENT.]

Subdivision 1. The governing body of each government entity shall designate, as a depository of its funds, one or more financial institutions. The governing body may authorize the treasurer or chief financial officer to (1) designate depositories of the funds; (2) make investments of funds under sections 118A.01 to 118A.06 or other applicable law; or (3) both designate depositories and make investments as provided in this subdivision.

Subd. 2. The treasurer or chief financial officer of a government entity may at any time sell obligations purchased pursuant to this section and the money received from such sale, and the interest and profits or loss on such investment shall be credited or charged, as the case may be, to the fund from which the investment was made. Neither such official nor government entity, nor any other official responsible for the custody of such funds, shall be personally liable for any loss sustained from the deposit or investment of funds in accordance with the provisions of sections 118A.04 and 118A.05.

Sec. 4. [118A.03] [DEPOSITORIES AND COLLATERAL.]

Subdivision 1. To the extent that funds deposited are in excess of available federal deposit insurance, the government entity shall require the financial institution to furnish collateral security or a corporate surety bond executed by a company authorized to do business in the state.

Subd. 2. The following are the allowable forms of collateral in lieu of a corporate surety bond:

(1) United States government treasury bills, treasury notes, treasury bonds;

(2) issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity;

(3) general obligation securities of any state or local government with taxing powers which is rated A or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated AA or better by a national bond rating service;

(4) irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and

(5) time deposits that are fully insured by the Federal Deposit Insurance Corporation.

Subd. 3. The total amount of the collateral computed at its market value shall be at least ten percent more than the amount on deposit plus accrued interest at the close of the business day. The financial institution may furnish both a surety bond and collateral aggregating the required amount.

Subd. 4. Any collateral pledged shall be accompanied by a written assignment to the government entity from the financial institution. The written assignment shall recite that, upon default, the financial institution shall release to the government entity on demand, free of exchange or any other charges, the collateral pledged. Interest earned on assigned collateral will be remitted to the financial institution so long as it is not in default. The government entity may sell the collateral to recover the amount due. Any surplus from the sale of the collateral shall be payable to the financial institution, its assigns, or both.

Subd. 5. A financial institution may withdraw excess collateral or substitute other collateral after giving written notice to the governmental entity and receiving confirmation. The authority to return any delivered and assigned collateral rests with the government entity.

Subd. 6. For purposes of this section, default on the part of the financial institution includes, but is not limited to, failure to make interest payments when due, failure to promptly deliver upon demand all money on deposit, less any early withdrawal penalty that may be required in connection with the withdrawal of a time deposit, or closure of the depository. If a financial institution closes, all deposits shall be immediately due and payable. It shall not be a default under this subdivision to require prior notice of withdrawal if such notice is required as a condition of withdrawal by applicable federal law or regulation.

Subd. 7. All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection shall be approved by the government entity.

Sec. 5. [118A.04] [INVESTMENTS.]

Subdivision 1. Any public funds, not presently needed for other purposes or restricted for other purposes, may be invested in the manner and subject to the conditions provided for in this section.

Subd. 2. Public funds may be invested in governmental bonds, notes, bills, mortgages (excluding high-risk mortgage-backed securities), and other securities, which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress.

Subd. 3. Funds may be invested in the following:

(1) any security which is a general obligation of any state or local government with taxing powers which is rated A or better by a national bond rating service;

(2) any security which is a revenue obligation of any state or local government with taxing powers which is rated AA or better by a national bond rating service; and

(3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the state of Minnesota and is rated A or better by a national bond rating agency.

Subd. 4. Funds may be invested in commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by at least two nationally recognized rating agencies and matures in 270 days or less.

Subd. 5. Funds may be invested in time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of United States banks.

Subd. 6. For the purposes of this section and section 118A.05, "high-risk mortgage-backed securities" are:

(a) interest-only or principal-only mortgage-backed securities; and

(b) any mortgage derivative security that:

(1) has an expected average life greater than ten years;

(2) has an expected average life that:

(i) will extend by more than four years as the result of an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or

(ii) will shorten by more than six years as the result of an immediate and sustained parallel shift in the yield curve of minus 300 basis points; or

(3) will have an estimated change in price of more than 17 percent as the result of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.

Subd. 7. Funds may be invested in general obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7, 469.178, subdivision 5, or 475.61, subdivision 6.

Subd. 8. Funds held in a debt service fund may be used to purchase any obligation, whether general or special, of an issue which is payable from the fund, at such price, which may include a premium, as shall be agreed to by the holder, or may be used to redeem any obligation of such an issue prior to maturity in accordance with its terms. The securities representing any such investment may be sold by the governmental entity at any time, but the money so received remains part of the fund until used for the purpose for which the fund was created. Any obligation held in a debt service fund from which it is payable may be canceled at any time unless otherwise provided in a resolution or other instrument securing obligations payable from the fund.

Subd. 9. (a) For the purpose of this section and section 118A.05, the term "broker" means a broker-dealer, broker, or agent of a government entity, who transfers, purchases, sells, or obtains securities for, or on behalf of, a government entity.

(b) Prior to completing an initial transaction with a broker, a government entity shall provide annually to the broker a written statement of investment restrictions which shall include a provision that all future investments are to be made in accordance with Minnesota Statutes governing the investment of public funds.

(c) A broker must acknowledge annually receipt of the statement of investment restrictions in writing and agree to handle the government entity's account in accordance with these restrictions. A government entity may not enter into a transaction with a broker until the broker has provided this written agreement to the government entity.

(d) The state auditor shall prepare uniform notification forms which shall be used by the government entities and the brokers to meet the requirements of this subdivision.

Sec. 6. [118A.05] [CONTRACTS AND AGREEMENTS.]

Subdivision 1. In addition to other authority granted in sections 118A.01 to 118A.06, government entities may enter into contracts and agreements as follows.

Subd. 2. Repurchase agreements consisting of collateral allowable in section 118A.04, and reverse repurchase agreements may be entered into with any of the following entities:

(1) a financial institution qualified as a "depository" of public funds of the government entity;

(2) any other financial institution which is a member of the Federal Reserve System and whose combined capital and surplus equals or exceeds $10,000,000;

(3) a primary reporting dealer in United States government securities to the Federal Reserve Bank of New York; or

(4) a securities broker-dealer licensed pursuant to chapter 80A, or an affiliate of it, regulated by the securities and exchange commission and maintaining a combined capital and surplus of $40,000,000 or more, exclusive of subordinated debt.

Reverse agreements may only be entered into for a period of 90 days or less and only to meet short-term cash flow needs. In no event may reverse repurchase agreements be entered into for the purpose of generating cash for investments, except as stated in subdivision 3.

Subd. 3. Securities lending agreements, including custody agreements, may be entered into with a financial institution meeting the qualifications of subdivision 2, clause (1) or (2), and having its principal executive office in Minnesota. Securities lending transactions may be entered into with entities meeting the qualifications of subdivision 2 and the collateral for such transactions shall be restricted to the securities described in sections 118A.04 and 118A.05.

Subd. 4. Government entities may enter into agreements or contracts for shares of a Minnesota joint powers investment trust whose investments are restricted to securities described in sections 118A.04 and 118A.05, subdivision 2, or shares of an investment company which is registered under the Federal Investment Company Act of 1940, and whose shares are registered under the Federal Securities Act of 1933, as long as the investment company's fund receives the highest credit rating and is rated in one of the two highest risk rating categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturity no longer than 13 months.

Subd. 5. Agreements or contracts for guaranteed investment contracts may be entered into if they are issued or guaranteed by United States commercial banks, domestic branches of foreign banks, United States insurance companies, or their Canadian subsidiaries. The credit quality of the issuer's or guarantor's short- and long-term unsecured debt must be rated in one of the two highest categories by a nationally recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded below A, the government entity must have withdrawal rights.

Sec. 7. [118A.06] [DELIVERY AND SAFEKEEPING.]

Investments, contracts, and agreements may be held in safekeeping with:

(1) any Federal Reserve Bank;

(2) any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased;

(3) a primary reporting dealer in United States government securities to the Federal Reserve Bank of New York; or

(4) a securities broker-dealer having its principal executive office in Minnesota, licensed under chapter 80A, or an affiliate of it, and regulated by the Securities and Exchange Commission; provided that the government entity's ownership of all securities is evidenced by written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks.

Sec. 8. [118A.07] [ADDITIONAL INVESTMENT AUTHORITY.]

Subdivision 1. [AUTHORITY PROVIDED.] As used in this section, "governmental entity" means a city with a population in excess of 200,000 or a county that contains a city of that size. If a governmental entity meets the requirements of subdivisions 2 and 3, it may exercise additional investment authority under subdivisions 4, 5, and 6.

Subd. 2. [WRITTEN POLICIES AND PROCEDURES.] Prior to exercising any additional authority under subdivisions 4, 5, and 6, the governmental entity must have written investment policies and procedures governing the following:

(1) the use of or limitation on mutual bond funds or other securities authorized or permitted investments under law;

(2) specifications for and limitations on the use of derivatives;

(3) the final maturity of any individual security;

(4) the maximum average weighted life of the portfolio;

(5) the use of and limitations on reverse repurchase agreements;

(6) credit standards for financial institutions with which the government entity deals; and

(7) credit standards for investments made by the government entity.

Subd. 3. [OVERSIGHT PROCESS.] Prior to exercising any authority under subdivisions 4, 5, and 6, the governmental entity must establish an oversight process that provides for review of the government entity's investment strategy and the composition of the financial portfolio. This process shall include one or more of the following:

(1) audit reviews;

(2) internal or external investment committee reviews; and

(3) internal management control.

Additionally, the governing body of the governmental entity must, by resolution, authorize its treasurer to utilize the additional authorities under this section within their prescribed limits, and in conformance with the written limitations, policies, and procedures of the governmental entity.

If the governing body of a governmental entity exercises the authority provided in this section, the treasurer of the governmental entity must annually report to the governing body on the findings of the oversight process required under this subdivision. If the governing body intends to continue to exercise the authority provided in this section for the following calendar year, it must adopt a resolution affirming that intention by December 1.

Subd. 4. [REPURCHASE AGREEMENTS.] A government entity may enter into repurchase agreements as authorized under section 118A.05, provided that the exclusion of mortgage-backed securities defined as "high risk mortgage-backed securities" under section 118A.04, subdivision 6, shall not apply to repurchase agreements under this authority if the margin requirements is 101 percent or more.

Subd. 5. [REVERSE REPURCHASE AGREEMENTS.] Notwithstanding the limitations contained in section 118A.05, subdivision 2, the county may enter into reverse repurchase agreements to:

(1) meet cash flow needs; or

(2) generate cash for investments, provided that the total securities owned shall be limited to an amount not to exceed 130 percent of the annual daily average of general investable monies for the fiscal year as disclosed in the most recently available audited financial report. Excluded from this limit are:

(i) securities with maturities of one year or less; and

(ii) securities that have been reversed to maturity.

There shall be no limit on the term of a reverse repurchase agreement. Reverse repurchase agreements shall not be included in computing the net debt of the governmental entity, and may be made without an election or public sale, and the interest payable thereon shall not be subject to the limitation in section 475.55. The interest shall not be deducted or excluded from gross income of the recipient for the purpose of state income, corporate franchise, or bank excise taxes, or if so provided by federal law, for the purpose of federal income tax.

Subd. 6. [OPTIONS AND FUTURES.] A government entity may enter into futures contracts, options on futures contracts, and option agreements to buy or sell securities authorized under law as legal investments for counties, but only with respect to securities owned by the governmental entity, including securities that are the subject of reverse repurchase agreements under this section that expire at or before the due date of the option agreement.

Sec. 9. [NO SUPERSEDING EFFECT.]

Except as provided in section 11, sections 2 to 7 shall not supersede any general or special law relating to the deposit and investment of public funds.

Sec. 10. [STUDY; REPORT.]

The department of finance, in cooperation with the Minnesota Association of County Treasurers, the Minnesota Association of School Business Officials, and the Minnesota Government Finance Officers Association, shall review the adequacy of training and certification programs for representatives of local government entities which are entrusted with the deposit and investment of public funds. The department shall report its finding and any recommendations to the local government and metropolitan affairs committee of the house of representatives and the metropolitan and local government committee of the senate no later than November 15, 1996.

Sec. 11. [REPEALER.]

Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66, as amended by Laws 1995, chapter 122, section 3; and 475.76, are repealed.

Sec. 12. [EFFECTIVE DATE.]

Sections 2 to 7 and 11 are effective January 1, 1997. Section 10 is effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 103E.635, subdivision 8, is amended to read:

Subd. 8. [COUNTY INVESTMENT, PURCHASE, AND SELLING OF TEMPORARY DRAINAGE BONDS.] (a) Funds of the issuing county may be invested in temporary drainage bonds under sections 471.56 and 475.66 section 118A.04, except that the temporary drainage bonds may be:

(1) purchased by the county when the temporary drainage bonds are initially issued;

(2) purchased only out of funds that the board determines will not be required for other purposes before the temporary drainage bonds mature; and

(3) resold before the temporary drainage bonds mature only if there is an unforeseen emergency.

(b) If a temporary drainage bond purchase is made from money held in a sinking fund for other bonds of the county, the holders of the other bonds may enforce the county's obligation to sell definitive bonds at or before the maturity of the temporary drainage bonds, or exchange the other bonds, in the same manner as holders of the temporary drainage bonds.

Sec. 2. Minnesota Statutes 1994, section 121.148, subdivision 4, is amended to read:

Subd. 4. [UNFAVORABLE REVIEW AND COMMENT.] If the commissioner submits an unfavorable review and comment for a proposal under section 121.15, the school board, by resolution of the board, must reconsider construction. If, upon reconsideration, the school board decides to proceed with construction, it may initiate proceedings for issuing bonds to finance construction under sections 475.51 to 475.76 chapter 475. Unless 60 percent of the voters at the election approve of issuing the obligations, the board is not authorized to issue the obligations.

Sec. 3. Minnesota Statutes 1994, section 136A.32, subdivision 7, is amended to read:

Subd. 7. The authority may invest any bond proceeds, sinking funds or reserves in any securities authorized for investment of debt service funds of municipalities pursuant to section 475.66, subdivision 3 118A.04, including securities described in section 475.67, subdivision 8. In addition, such bond proceeds, sinking funds and reserves may be

(1) deposited in time deposits of any state or national bank subject to the limitations and requirements of chapter 118, or

(2) invested in repurchase agreements with, providing for the repurchase of securities described in the preceding sentence by, a bank qualified as a depository of money of the authority, a national or state bank in the United States that is a member of the federal reserve system and whose combined capital and surplus equals or exceeds $10,000,000, or a reporting dealer to the federal reserve bank of New York. Power to make any such investment or deposit is subject to the provisions of any applicable covenant or restriction in a resolution or trust agreement of the authority.

Sec. 4. Minnesota Statutes 1994, section 385.07, is amended to read:

385.07 [FUNDS, WHERE DEPOSITED OR INVESTED.]

All county funds shall be deposited promptly and intact by the county treasurer in the name of the county or invested as provided in sections 471.56 and 475.66 section 118A.04. Interest and profits which accrue from such investment shall, when collected, be credited to the general revenue fund of the county.

Sec. 5. Minnesota Statutes 1994, section 447.49, is amended to read:

447.49 [MISCELLANEOUS PROVISIONS.]

Bonds issued under sections 447.45 to 447.50 must be issued and sold as provided in chapter 475. If the bonds do not pledge the credit of the county, city, or hospital district as provided in section 447.48, the governing body may negotiate their sale without advertisement for bids. They shall not be included in the net debt of any municipality, and are not subject to interest rate limitations, as defined or referred to in sections 475.51 and 475.55. If the bonds do not pledge the credit of the county, city, or hospital district as provided in section 447.48 and are payable from rental payments to be made under a lease agreement entered into pursuant to section 447.47, the county, city, or hospital district may invest or deposit, or authorize a trustee to invest or deposit, any proceeds of the bonds, rental payments, and income from the investment of them, in any manner and upon any terms and conditions agreed to by the lessee under the lease agreement, resolution, or indenture, notwithstanding chapter 118 or section 471.56 or 475.66 118A, but subject to any statutory provisions that govern the deposit and investment of funds of a lessee which is itself a governmental subdivision or agency.

Sec. 6. Minnesota Statutes 1994, section 469.012, subdivision 1, is amended to read:

Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be a public body corporate and politic and shall have all the powers necessary or convenient to carry out the purposes of sections 469.001 to 469.047, except that the power to levy and collect taxes or special assessments is limited to the power provided in sections 469.027 to 469.033. Its powers include the following powers in addition to others granted in sections 469.001 to 469.047:

(1) to sue and be sued; to have a seal, which shall be judicially noticed, and to alter it; to have perpetual succession; and to make, amend, and repeal rules consistent with sections 469.001 to 469.047;

(2) to employ an executive director, technical experts, and officers, agents, and employees, permanent and temporary, that it requires, and determine their qualifications, duties, and compensation; for legal services it requires, to call upon the chief law officer of the city or to employ its own counsel and legal staff; so far as practicable, to use the services of local public bodies in its area of operation, provided that those local public bodies, if requested, shall make the services available;

(3) to delegate to one or more of its agents or employees the powers or duties it deems proper;

(4) within its area of operation, to undertake, prepare, carry out, and operate projects and to provide for the construction, reconstruction, improvement, extension, alteration, or repair of any project or part thereof;

(5) subject to the provisions of section 469.026, to give, sell, transfer, convey, or otherwise dispose of real or personal property or any interest therein and to execute leases, deeds, conveyances, negotiable instruments, purchase agreements, and other contracts or instruments, and take action that is necessary or convenient to carry out the purposes of these sections;

(6) within its area of operation, to acquire real or personal property or any interest therein by gifts, grant, purchase, exchange, lease, transfer, bequest, devise, or otherwise, and by the exercise of the power of eminent domain, in the manner provided by chapter 117, to acquire real property which it may deem necessary for its purposes, after the adoption by it of a resolution declaring that the acquisition of the real property is necessary to eliminate one or more of the conditions found to exist in the resolution adopted pursuant to section 469.003 or to provide decent, safe, and sanitary housing for persons of low and moderate income, or is necessary to carry out a redevelopment project. Real property needed or convenient for a project may be acquired by the authority for the project by condemnation pursuant to this section. This includes any property devoted to a public use, whether or not held in trust, notwithstanding that the property may have been previously acquired by condemnation or is owned by a public utility corporation, because the public use in conformity with the provisions of sections 469.001 to 469.047 shall be deemed a superior public use. Property devoted to a public use may be so acquired only if the governing body of the municipality has approved its acquisition by the authority. An award of compensation shall not be increased by reason of any increase in the value of the real property caused by the assembly, clearance or reconstruction, or proposed assembly, clearance or reconstruction for the purposes of sections 469.001 to 469.047 of the real property in an area;

(7) within its area of operation, and without the adoption of an urban renewal plan, to acquire, by all means as set forth in clause (6) but without the adoption of a resolution provided for in clause (6), real property, and to demolish, remove, rehabilitate, or reconstruct the buildings and improvements or construct new buildings and improvements thereon, or to so provide through other means as set forth in Laws 1974, chapter 228, or to grade, fill, and construct foundations or otherwise prepare the site for improvements. The authority may dispose of the property pursuant to section 469.029, provided that the provisions of section 469.029 requiring conformance to an urban renewal plan shall not apply. The authority may finance these activities by means of the redevelopment project fund or by means of tax increments or tax increment bonds or by the methods of financing provided for in section 469.033 or by means of contributions from the municipality provided for in section 469.041, clause (9), or by any combination of those means. Real property with buildings or improvements thereon shall only be acquired under this clause when the buildings or improvements are substandard. The exercise of the power of eminent domain under this clause shall be limited to real property which contains, or has contained within the three years immediately preceding the exercise of the power of eminent domain and is currently vacant, buildings and improvements which are vacated and substandard. Notwithstanding the prior sentence, in cities of the first class the exercise of the power of eminent domain under this clause shall be limited to real property which contains, or has contained within the three years immediately preceding the exercise of the power of eminent domain, buildings and improvements which are substandard. For the purpose of this clause, substandard buildings or improvements mean hazardous buildings as defined in section 463.15, subdivision 3, or buildings or improvements that are dilapidated or obsolescent, faultily designed, lack adequate ventilation, light, or sanitary facilities, or any combination of these or other factors that are detrimental to the safety or health of the community;

(8) within its area of operation, to determine the level of income constituting low or moderate family income. The authority may establish various income levels for various family sizes. In making its determination, the authority may consider income levels that may be established by the Department of Housing and Urban Development or a similar or successor federal agency for the purpose of federal loan guarantees or subsidies for persons of low or moderate income. The authority may use that determination as a basis for the maximum amount of income for admissions to housing development projects or housing projects owned or operated by it;

(9) to provide in federally assisted projects any relocation payments and assistance necessary to comply with the requirements of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and any amendments or supplements thereto;

(10) to make an agreement with the governing body or bodies creating the authority which provides exemption from all real and personal property taxes levied or imposed by the state, city, county, or other political subdivisions, for which the authority shall make payments in lieu of taxes to the state, city, county, or other political subdivisions as provided in section 469.040. The governing body shall agree on behalf of all the applicable governing bodies affected that local cooperation as required by the federal government shall be provided by the local governing body or bodies in whose jurisdiction the project is to be located, at no cost or at no greater cost than the same public services and facilities furnished to other residents;

(11) to cooperate with or act as agent for the federal government, the state or any state public body, or any agency or instrumentality of the foregoing, in carrying out any of the provisions of sections 469.001 to 469.047 or of any other related federal, state, or local legislation; and upon the consent of the governing body of the city to purchase, lease, manage, or otherwise take over any housing project already owned and operated by the federal government;

(12) to make plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements, and plans for the enforcement of laws, codes, and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements. The authority may develop, test, and report methods and techniques, and carry out demonstrations and other activities for the prevention and elimination of slums and blight;

(13) to borrow money or other property and accept contributions, grants, gifts, services, or other assistance from the federal government, the state government, state public bodies, or from any other public or private sources;

(14) to include in any contract for financial assistance with the federal government any conditions that the federal government may attach to its financial aid of a project, not inconsistent with purposes of sections 469.001 to 469.047, including obligating itself (which obligation shall be specifically enforceable and not constitute a mortgage, notwithstanding any other laws) to convey to the federal government the project to which the contract relates upon

the occurrence of a substantial default with respect to the covenants or conditions to which the authority is subject; to provide in the contract that, in case of such conveyance, the federal government may complete, operate, manage, lease, convey, or otherwise deal with the project until the defaults are cured if the federal government agrees in the contract to reconvey to the authority the project as then constituted when the defaults have been cured;

(15) to issue bonds for any of its corporate purposes and to secure the bonds by mortgages upon property held or to be held by it or by pledge of its revenues, including grants or contributions;

(16) to invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control or in the manner and subject to the conditions provided in section 475.66 118A.04 for the deposit and investment of debt service public funds;

(17) within its area of operation, to determine where blight exists or where there is unsafe, unsanitary, or overcrowded housing;

(18) to carry out studies of the housing and redevelopment needs within its area of operation and of the meeting of those needs. This includes study of data on population and family groups and their distribution according to income groups, the amount and quality of available housing and its distribution according to rentals and sales prices, employment, wages, desirable patterns for land use and community growth, and other factors affecting the local housing and redevelopment needs and the meeting of those needs; to make the results of those studies and analyses available to the public and to building, housing, and supply industries;

(19) if a local public body does not have a planning agency or the planning agency has not produced a comprehensive or general community development plan, to make or cause to be made a plan to be used as a guide in the more detailed planning of housing and redevelopment areas;

(20) to lease or rent any dwellings, accommodations, lands, buildings, structures, or facilities included in any project and, subject to the limitations contained in sections 469.001 to 469.047 with respect to the rental of dwellings in housing projects, to establish and revise the rents or charges therefor;

(21) to own, hold, and improve real or personal property and to sell, lease, exchange, transfer, assign, pledge, or dispose of any real or personal property or any interest therein;

(22) to insure or provide for the insurance of any real or personal property or operations of the authority against any risks or hazards;

(23) to procure or agree to the procurement of government insurance or guarantees of the payment of any bonds or parts thereof issued by an authority and to pay premiums on the insurance;

(24) to make expenditures necessary to carry out the purposes of sections 469.001 to 469.047;

(25) to enter into an agreement or agreements with any state public body to provide informational service and relocation assistance to families, individuals, business concerns, and nonprofit organizations displaced or to be displaced by the activities of any state public body;

(26) to compile and maintain a catalog of all vacant, open and undeveloped land, or land which contains substandard buildings and improvements as that term is defined in clause (7), that is owned or controlled by the authority or by the governing body within its area of operation and to compile and maintain a catalog of all authority owned real property that is in excess of the foreseeable needs of the authority, in order to determine and recommend if the real property compiled in either catalog is appropriate for disposal pursuant to the provisions of section 469.029, subdivisions 9 and 10;

(27) to recommend to the city concerning the enforcement of the applicable health, housing, building, fire prevention, and housing maintenance code requirements as they relate to residential dwelling structures that are being rehabilitated by low- or moderate-income persons pursuant to section 469.029, subdivision 9, for the period of time necessary to complete the rehabilitation, as determined by the authority;

(28) to recommend to the city the initiation of municipal powers, against certain real properties, relating to repair, closing, condemnation, or demolition of unsafe, unsanitary, hazardous, and unfit buildings, as provided in section 469.041, clause (5);

(29) to sell, at private or public sale, at the price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development, job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an individual;

(30) within its area of operation, to acquire and sell real property that is benefited by federal housing assistance payments, other rental subsidies, interest reduction payments, or interest reduction contracts for the purpose of preserving the affordability of low- and moderate-income multifamily housing;

(31) to apply for, enter into contracts with the federal government, administer, and carry out a section 8 program. Authorization by the governing body creating the authority to administer the program at the authority's initial application is sufficient to authorize operation of the program in its area of operation for which it was created without additional local governing body approval. Approval by the governing body or bodies creating the authority constitutes approval of a housing program for purposes of any special or general law requiring local approval of section 8 programs undertaken by city, county, or multicounty authorities; and

(32) to secure a mortgage or loan for a rental housing project by obtaining the appointment of receivers or assignments of rents and profits under sections 559.17 and 576.01, except that the limitation relating to the minimum amounts of the original principal balances of mortgages specified in sections 559.17, subdivision 2, clause (2); and 576.01, subdivision 2, does not apply.

Sec. 7. Minnesota Statutes 1994, section 469.155, subdivision 15, is amended to read:

Subd. 15. [INVESTMENT AND DEPOSIT OF FUNDS.] It may invest or deposit, or authorize a trustee to invest or deposit, any proceeds of revenue bonds or notes issued pursuant to sections 469.152 to 469.165, and income from the investment of the proceeds, in any manner and upon any terms and conditions agreed to by the contracting party under the related revenue agreement, resolution, or indenture, notwithstanding chapter 118 or section 471.56 or 475.56 118A, but subject to any statutory provisions which govern the deposit and investment of funds of a contracting party which is itself a governmental subdivision or agency.

Sec. 8. Minnesota Statutes 1994, section 473.197, subdivision 4, is amended to read:

Subd. 4. [DEBT RESERVE; LEVY.] To provide money to pay debt service on bonds issued under the credit enhancement program if pledged revenues are insufficient to pay debt service, the council must maintain a debt reserve fund in the manner and with the effect provided by section 475.66 118A.04 for public debt service funds. To provide funds for the debt reserve fund, the council may use up to $3,000,000 of the proceeds of solid waste bonds issued by the council under section 473.831 before its repeal. To provide additional funds for the debt reserve fund, the council may levy a tax on all taxable property in the metropolitan area and must levy the tax if sums in the debt reserve fund are insufficient to cure any deficiency in the debt service fund established for the bonds. The tax authorized by this section does not affect the amount or rate of taxes that may be levied by the council for other purposes and is not subject to limit as to rate or amount.

Sec. 9. Minnesota Statutes 1994, section 473.543, subdivision 3, is amended to read:

Subd. 3. The moneys on hand in said funds and accounts may be deposited in the official depositories of the council or invested as hereinafter provided. The amount thereof not currently needed or required by law to be kept in cash on deposit may be invested in obligations authorized for the investment of municipal sinking public funds by section 475.66 118A.04. Such moneys may also be held under certificates of deposit issued by any official depository of the council.

Sec. 10. Minnesota Statutes 1995 Supplement, section 473.900, subdivision 3, is amended to read:

Subd. 3. [DEPOSITORIES; INVESTMENTS.] The money on hand in the funds and accounts may be deposited in the official depositories of the metropolitan council or invested as provided in this subdivision. The amount not currently needed or required by law to be kept in cash on deposit, may be invested in obligations authorized for the investment of municipal sinking public funds by section 475.66 118A.04. The money may also be held under certificates of deposit issued by any official depository of the metropolitan council.

Sec. 11. Minnesota Statutes 1994, section 475.51, subdivision 1, is amended to read:

Subdivision 1. [TERMS.] For the purposes of sections 475.51 to 475.76 this chapter, the terms defined in this section shall have the meanings given them.

Sec. 12. [REVISOR'S INSTRUCTION.]

To replace or remove references to repealed statutes, in the next edition of Minnesota Statutes the revisor of statutes shall

(a) in the sections listed in column A, change the reference in column B to the reference in column C:

Row

No.Column A Column BColumn C

(1) 37.07 118.01 118A.03

(2) 37.07 118.10 118A.03

(3) 60F.05 475.66 118A.04

(4) 62H.05 475.66 118A.04

(5) 115.46, subd. 2 475.66118A.04

(6) 136F.90, subd. 5 475.66118A.04

(7) 356A.06, subd. 6 118.01118A.03

(8) 356A.06, subd. 8a 118.01118A.03

(9) 400.11 475.66 118A.04

(10) 427.01 118.01 118A.03

(11) 427.02 118.01 118A.03

(12) 429.091 471.56 118A.04

(13) 458D.16 118.01 118A.03

(14) 458D.17, subd. 3 475.66118A.04

(15) 462.396, subd. 6 118.10118A.03

(16) 469.084, subd. 13 471.56118A.04

(17) 469.178, subd. 5 471.56118A.04

(18) 471.982, subd. 2 475.66118A.04

(19) 473.542 118.01 118A.03

(20) 473.606, subd. 3 471.56118A.04

(21) 473.711, subd. 3 118.01118A.03

(22) 473.711, subd. 3 118.10118A.03

(23) 473.811, subd. 1 475.66118A.04

(24) 473.899 118.01 118A.03

(25) 475.54, subd. 6a 475.66, subd. 1 118A.06

(26) 475.60, subd. 7 475.66118A.04

(27) 475.61, subd. 6 471.56118A.04

(28) 475.67, subd. 13 475.66, subd. 3, 118A.05, subd. 5;

clause (f)

and (b) in sections 365.48, subdivision 4; 469.129, subdivision 1; and 475.79, remove the reference to section 475.66."

Delete the title and insert:

"A bill for an act relating to public funds; regulating the deposit and investment of these funds, and agreements related to these funds; requiring a study; making conforming changes; amending Minnesota Statutes 1994, sections 6.745, as amended; 103E.635, subdivision 8; 121.148, subdivision 4; 136A.32, subdivision 7; 385.07; 447.49; 469.012, subdivision 1; 469.155, subdivision 15; 473.197, subdivision 4; 473.543, subdivision 3; and 475.51, subdivision 1; Minnesota Statutes 1995 Supplement, section 473.900, subdivision 3; proposing coding for new law as Minnesota Statutes, chapter 118A; repealing Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66, as amended; and 475.76."

We request adoption of this report and repassage of the bill.

House Conferees: Dee Long, Leslie Schumacher and Mike Osskopp.

Senate Conferees: Lawrence J. Pogemiller, Ted A. Mondale and William V. Belanger, Jr.

Long moved that the report of the Conference Committee on H. F. No. 1567 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 1567, A bill for an act relating to public funds; regulating the deposit and investment of these funds, and agreements related to these funds; requiring a study; amending Minnesota Statutes 1994, section 6.745; proposing coding for new law as Minnesota Statutes, chapter 118A; repealing Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66; and 475.76.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 130 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Koppendrayer Opatz        Sviggum
Anderson, B. Finseth      Kraus        Orenstein    Swenson, D.
Anderson, R. Frerichs     Larsen       Orfield      Swenson, H.
Bakk         Garcia       Leighton     Osskopp      Sykora
Bertram      Girard       Leppik       Osthoff      Tomassoni
Bettermann   Goodno       Lieder       Ostrom       Tompkins
Bishop       Greiling     Lindner      Otremba      Trimble
Boudreau     Gunther      Long         Ozment       Tuma
Bradley      Haas         Lourey       Paulsen      Tunheim
Broecker     Hackbarth    Luther       Pawlenty     Van Dellen
Brown        Harder       Lynch        Pellow       Van Engen
Carlson, L.  Hasskamp     Macklin      Pelowski     Vickerman
Carlson, S.  Hausman      Mahon        Perlt        Wagenius
Carruthers   Holsten      Mares        Peterson     Warkentin
Clark        Huntley      Mariani      Pugh         Weaver
Commers      Jaros        Marko        Rest         Wejcman
Cooper       Jefferson    McCollum     Rhodes       Wenzel
Daggett      Jennings     McElroy      Rice         Winter
Dauner       Johnson, A.  McGuire      Rostberg     Wolf
Davids       Johnson, R.  Milbert      Rukavina     Worke
Dawkins      Johnson, V.  Molnau       Sarna        Workman
Dehler       Kahn         Mulder       Schumacher   Sp.Anderson,I
Delmont      Kalis        Munger       Seagren      
Dempsey      Kelley       Murphy       Skoglund     
Dorn         Kelso        Olson, E.    Smith        
Entenza      Kinkel       Olson, M.    Solberg      
Erhardt      Knoblach     Onnen        Stanek       

Knight       Krinkie                   

A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, and by adding a subdivision; 16B.35, by adding a subdivision; 16B.41, subdivision 2; 16B.482; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; 136F.80, subdivision 2; and 169.441, subdivision 5; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and

136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, sections 135A.08; 136F.25; and 136F.59, subdivision 1; Laws 1995, chapter 212, article 1, section 6, subdivision 1.

March 22, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2206, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2206 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 15.43, subdivision 2, is amended to read:

Subd. 2. [TEXTBOOKS EXEMPTED.] Textbooks, software, and other course materials authored by an employee of the state's education systems Minnesota state colleges and universities or of the University of Minnesota may be used as required course material upon receipt of written approval from the head of the department. Instructors in state institutions and at the university may accept free samples of textbooks and related teaching materials.

Sec. 2. Minnesota Statutes 1994, section 15.43, subdivision 3, is amended to read:

Subd. 3. [OTHER EXEMPTIONS.] The commissioners of human services and corrections, and the chancellors of the state university and community college systems may by rule prescribe procedure for the acceptance of gifts from any person or organization, provided that such gifts are accepted by the commissioner or chancellor, or a designated representative of the commissioner or chancellor, and that such gifts are used solely for the direct benefit of patients, or inmates or students under the jurisdiction of the accepting state officer.

Sec. 3. Minnesota Statutes 1994, section 16B.01, subdivision 2, is amended to read:

Subd. 2. [AGENCY.] "Agency" means any state officer, employee, board, commission, authority, department, or other agency of the executive branch of state government. Unless specifically provided elsewhere in this chapter, agency does not include the Minnesota state colleges and universities.

Sec. 4. Minnesota Statutes 1995 Supplement, section 16B.17, subdivision 6, is amended to read:

Subd. 6. [EXCLUSIONS.] This section and section 16B.167 do not apply:

(1) to Minnesota state college or university contracts to provide instructional services to public or private organizations, agencies, businesses, or industries;

(2) to contracts with individuals or organizations for administration of employee pension plans authorized under chapter 354B or 354C; or

(3) to instructional services provided to Minnesota state colleges or universities by organizations or individuals provided the contracts are consistent with terms of applicable labor agreements.

Sec. 5. Minnesota Statutes 1994, section 16B.21, subdivision 1, is amended to read:

Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] The commissioner shall submit an annual report pursuant to section 3.195 to the governor and the legislature with a copy to the commissioner of trade and economic development indicating the progress being made toward the objectives and goals of sections 16B.19 to 16B.22, 137.31, 137.35, 161.321, and 473.142 during the preceding fiscal year. The commissioner shall also submit a quarterly report

to the small business and targeted group procurement advisory council. These reports shall include the following information:

(1) the total dollar value and number of potential set-aside awards identified during this period and the percentage of total state procurement this figure reflects;

(2) the number of small businesses identified by and responding to the small business procurement program, the total dollar value and number of set-aside and other contracts actually awarded to small businesses, and the total number of small businesses that were awarded set-aside and other contracts;

(3) the total dollar value and number of contracts awarded to small targeted group businesses pursuant to each bidding process authorized by sections 16B.19, subdivision 2c, 137.31, 137.35, 161.321, and 473.142; the total number and value of these contracts awarded to each small targeted group business and to each type of small targeted group business in each purchasing category, and the percentages of the total procurement for each purchasing category the figures represent;

(4) the total dollar value and number of contracts awarded to small businesses in economically disadvantaged areas under the bidding process authorized in section 16B.19, subdivision 2d; the total number and value of these contracts awarded to each business, and to all businesses within each economically disadvantaged area in each purchasing category, and the percentages of total procurement for each purchasing category the figures represent.

The information required by clauses (1) and (2) must be presented on a statewide basis and also broken down by geographic regions within the state.

Sec. 6. Minnesota Statutes 1994, section 16B.21, subdivision 3, is amended to read:

Subd. 3. [REPORTS FROM OTHER AGENCIES.] The commissioner of transportation, and each metropolitan agency listed in section 473.143, subdivision 1, and the University of Minnesota shall report to the commissioner of administration all information that the commissioner requests to make reports required under this section. The information must be reported at the time and in the manner requested by the commissioner of administration.

Sec. 7. Minnesota Statutes 1994, section 16B.33, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them:

(a) "Agency" has the meaning given in section 16B.01, and also includes the University of Minnesota.

(b) "Architect" means an architect or landscape architect registered to practice under sections 326.02 to 326.15.

(c) "Board" means the state designer selection board.

(d) "Designer" means an architect or engineer, or a partnership, association, or corporation comprised primarily of architects or engineers or of both architects and engineers.

(e) "Engineer" means an engineer registered to practice under sections 326.02 to 326.15.

(f) "Person" includes an individual, corporation, partnership, association, or any other legal entity.

(g) "Primary designer" means the designer who is to have primary design responsibility for a project, and does not include designers who are merely consulted by the user agency and do not have substantial design responsibility, or designers who will or may be employed or consulted by the primary designer.

(h) "Project" means an undertaking to construct, erect, or remodel a building by or for the state or an agency.

(i) "User agency" means the agency undertaking a specific project.

Sec. 8. Minnesota Statutes 1994, section 16B.33, subdivision 3, is amended to read:

Subd. 3. [AGENCIES MUST REQUEST DESIGNER.] (a) [APPLICATION.] Upon undertaking a project with an estimated cost greater than $750,000 or a planning project with estimated fees greater than $60,000, every user agency, except the capitol area architectural and planning board, shall submit a written request for a primary designer for its

project to the commissioner, who shall forward the request to the board. The University of Minnesota and the Minnesota state colleges and universities shall follow the process in subdivision 3a to select designers for their projects. The written request must include a description of the project, the estimated cost of completing the project, a description of any special requirements or unique features of the proposed project, and other information which will assist the board in carrying out its duties and responsibilities set forth in this section.

(b) [REACTIVATED PROJECT.] If a project for which a designer has been selected by the board becomes inactive, lapses, or changes as a result of project phasing, insufficient appropriations, or other reasons, the commissioner, the Minnesota state colleges and universities, or the University of Minnesota may, if the project is reactivated, retain the same designer to complete the project.

(c) [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a project initially estimated to be below the cost and planning fee limits of this subdivision has its cost or planning fees revised so that the limits are exceeded, the project must be referred to the board for designer selection even if a primary designer has already been selected. In this event, the board may, without conducting interviews, elect to retain the previously selected designer if it determines that the interests of the state are best served by that decision and shall notify the commissioner of its determination.

Sec. 9. Minnesota Statutes 1994, section 16B.33, is amended by adding a subdivision to read:

Subd. 3a. [HIGHER EDUCATION PROJECTS.] (a) When the University of Minnesota or the Minnesota state colleges and universities undertakes a project involving construction or major remodeling, as defined in section 16B.335, subdivision 1, with an estimated cost greater than $2,000,000 or a planning project with estimated fees greater than $200,000, the system shall submit a written request for a primary designer to the commissioner, as provided in subdivision 3.

(b) When the University of Minnesota or the Minnesota state colleges and universities undertakes a project involving renovation, repair, replacement, or rehabilitation, the system office may submit a written request for a primary designer to the commissioner as provided in subdivision 3.

Sec. 10. Minnesota Statutes 1994, section 16B.33, subdivision 4, is amended to read:

Subd. 4. [DESIGNER SELECTION PROCESS.] (a) [PUBLICITY.] Upon receipt of a request from a user agency for a primary designer, the board shall publicize the proposed project in order to determine the identity of designers interested in the design work on the project. The board shall establish criteria for the selection process and make this information public, and shall compile data on and conduct interviews of designers. The board's selection criteria must include consideration of each interested designer's performance on previous projects for the state or any other person. Upon completing the process, the board shall select the primary designer and shall state its reasons in writing. Notification to the commissioner of the selection shall be made not more than 60 days after receipt from a user agency of a request for a primary designer. The commissioner shall promptly notify the designer and the user agency. The commissioner shall negotiate the designer's fee and prepare the contract to be entered into between the designer and the user agency.

(b) [CONFLICT OF INTEREST.] The board may not select a designer or firm in which a member of the designer selection board has a current financial interest.

(c) [SELECTION BY COMMISSIONER.] In the event the board receives a request for a primary designer on a project, the estimated cost of which is less than the limit established by subdivision 3, or a planning project with estimated fees of less than the limit established by subdivision 3, the board may submit the request to the commissioner of administration, with or without recommendations, and the commissioner shall thereupon select the primary designer for the project.

(d) [SECOND SELECTION.] If the designer selected for a project declines the appointment or is unable to reach agreement with the commissioner on the fee or the terms of the contract, the commissioner shall, within 60 days after the first appointment, request the board to make another selection.

(e) [SIXTY DAYS TO SELECT.] If the board fails to make a selection and forward its recommendation to the commissioner within 60 days of the user agency's request for a designer, the commissioner may appoint a designer to the project without the recommendation of the board.

(f) [LESS THAN SATISFACTORY PERFORMANCE.] The commissioner, or the University of Minnesota and the Minnesota state colleges and universities for projects under its their supervision, shall forward to the board a written report describing each instance in which the performance of a designer selected by the board or the commissioner has been less than satisfactory. Criteria for determining satisfaction include the ability of the designer to complete design work on time, to provide a design responsive to program needs within the constraints of the budget, to solve design problems and achieve a design consistent with the proposed function of the building, to avoid costly design errors or omissions, and to observe the construction work. These reports are public data and are available for inspection under section 13.03.

Sec. 11. Minnesota Statutes 1994, section 16B.35, is amended by adding a subdivision to read:

Subd. 4. [CAMPUSES.] Art for a building on a public college or university campus shall be selected by the campus, in consultation with the arts board. Consideration of the artwork of faculty and students on that campus is encouraged.

Sec. 12. Minnesota Statutes 1994, section 16B.36, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] The commissioner may examine, investigate, or make a survey of the organization, administration, and management of state agencies and institutions under their control, and may assist state agencies by providing analytical, statistical, and organizational development services to them in order to secure greater efficiency and economy through reorganization or consolidation of agencies or functions and to eliminate duplication of function, effort, or activity, so far as possible. The commissioner shall periodically submit to the legislature a list of the studies being conducted for this purpose and any future studies scheduled at the time the list is submitted. For purposes of this section, the Minnesota state colleges and universities is a state agency.

Sec. 13. Minnesota Statutes 1994, section 16B.37, subdivision 1, is amended to read:

Subdivision 1. [COMMISSIONER'S AUTHORITY.] To improve efficiency and avoid duplication, the commissioner may transfer personnel, powers, or duties, or any combination of them, from a state agency to another state agency that has been in existence for at least one year prior to the date of transfer. A transfer must have received the prior approval of the governor. The commissioner shall no later than January 15 of each year submit to the legislature a bill making all statutory changes required by reorganization orders issued by the commissioner during the preceding calendar year. For purposes of this section, the Minnesota state colleges and universities is a state agency.

Sec. 14. Minnesota Statutes 1994, section 16B.41, subdivision 2, is amended to read:

Subd. 2. [RESPONSIBILITIES.] The office has the following duties:

(a) The office must develop and establish a state information architecture to ensure that further state agency development and purchase of information systems equipment and software is directed in such a manner that individual agency information systems complement and do not needlessly duplicate or needlessly conflict with the systems of other agencies. In those instances where state agencies have need for the same or similar computer data, the commissioner shall ensure that the most efficient and cost-effective method of producing and storing data for or sharing data between those agencies is used. The development of this information architecture must include the establishment of standards and guidelines to be followed by state agencies. On January 1, 1988, and every six months thereafter, any state agency that has purchased information systems equipment or software in the past six months, or that is contemplating purchasing this equipment or software in the next six months, must report to the office and to the chairs of the house ways and means committee and the senate finance committee on how the purchases or proposed purchases comply with the applicable standards and guidelines.

(b) The office shall assist state agencies in the planning and management of information systems so that an individual information system reflects and supports the state agency's and the state's mission, requirements, and functions.

(c) The office must review and approve all agency requests for legislative appropriations for the development or purchase of information systems equipment or software. Requests may not be included in the governor's budget submitted to the legislature, unless the office has approved the request.

(d) Each biennium the office must rate agency requests for new appropriations for development or purchase of information systems equipment or software based on established information management criteria. The office must submit this rating to the legislature at the same time, or no later than 14 days after, the governor submits the budget message to the legislature. The governor must provide information necessary to rate agency requests to the office.

(e) The office must define, review, and approve major purchases of information systems equipment to (1) ensure that the equipment follows the standards and guidelines of the state information architecture; (2) ensure that the equipment is consistent with the information management principles adopted by the information policy council; (3) evaluate whether or not the agency's proposed purchase reflects a cost-effective policy regarding volume purchasing; and (4) ensure the equipment is consistent with other systems in other state agencies so that data can be shared among agencies, unless the office determines that the agency purchasing the equipment has special needs justifying the inconsistency. The commissioner of finance may not allot funds appropriated for major purchases of information systems equipment until the office reviews and approves the proposed purchase. A public institution of higher education must not may purchase interconnective up to $250,000 of equipment or other computer technology to connect the college or university to sites outside the institution without the prior approval of the office.

(f) The office shall review the operation of information systems by state agencies and provide advice and assistance so that these systems are operated efficiently and continually meet the standards and guidelines established by the office. These standards and guidelines shall emphasize uniformity that encourages information interchange, open systems environments, and portability of information whenever practicable and consistent with an agency's authority and the Minnesota government data practices act. The office, in consultation with the intergovernmental information systems advisory council and the legislative reference library, shall adopt specific standards and guidelines to be met by each state agency within a time period fixed by the office in regard to the following:

(1) establishment of methodologies and systems directed at reducing and ultimately eliminating redundant storage of data and encouraging greater use of central databases;

(2) establishment of data retention schedules, disaster recovery plans and systems, security systems, and procedural safeguards concerning privacy of data;

(3) establishment of pricing policies and incentives that encourage electronic transfer of information in electronic forms, while giving due consideration to the value and cost of providing the information in those forms. These pricing policies may include preferential prices for information requested by a public entity for a public purpose; and

(4) establishment of information sales systems that utilize licensing and royalty agreements to the greatest extent possible, together with procedures for agency denial of requests for licenses or royalty agreements by commercial users or resellers of the information. Section 3.751 does not apply to these licensing and royalty agreements and the agreements must include provisions that section 3.751 does not apply and that the state is immune from liability under the agreement.

If an agency needs additional funds to comply with the requirements of this paragraph, the agency must first obtain approval of the proposal by the office as required by paragraph (c) before submitting it to the legislature.

(g) The office must conduct a comprehensive review at least every three years of the information systems investments that have been made by state agencies and higher education institutions. The review must include recommendations on any information systems applications that could be provided in a more cost beneficial manner by an outside source. The office must report the results of its review to the legislature and the governor.

(h) The office shall recommend to the legislature any statutory changes that are necessary or desirable to accomplish the duties described in this subdivision.

(i) The office must report to the legislature by January 15 each year on progress in implementing paragraph (f), clauses (1) to (4).

Sec. 15. Minnesota Statutes 1995 Supplement, section 16B.465, subdivision 4, is amended to read:

Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may require the participation of state agencies, the state board of education, and the governing boards board of trustees of the Minnesota state colleges and universities, the community colleges, and the technical colleges, and may request the participation of the board of regents of the University of Minnesota, in the planning and implementation of the network to provide interconnective technologies.

The commissioner shall establish reimbursement rates in cooperation with the commissioner of finance to be billed to participating agencies and educational institutions sufficient to cover the operating, maintenance, and administrative costs of the system.

(b) A direct appropriation made to an educational institution for usage costs associated with the STARS network must only be used by the educational institution for payment of usage costs of the network as billed by the commissioner of administration. The post-secondary appropriations may be shifted between systems as required by unanticipated usage patterns. An intersystem transfer must be requested by the appropriate system and may be made only after review and approval by the commissioner of finance, in consultation with the commissioner of administration.

Sec. 16. Minnesota Statutes 1994, section 16B.482, is amended to read:

16B.482 [REIMBURSEMENT FOR MATERIALS AND SERVICES.]

The commissioner of administration may provide materials and services under this chapter to state legislative and judicial branch agencies, political subdivisions, the Minnesota state colleges and universities, the University of Minnesota, and federal government agencies. Legislative and judicial branch agencies, political subdivisions, the Minnesota state colleges and universities, the University of Minnesota, and federal government agencies purchasing materials and services from the commissioner of administration shall reimburse the general services, intertechnologies, and cooperative purchasing revolving funds for cost.

Sec. 17. [16B.4821] [PROVISION OF MATERIALS AND SERVICES TO MNSCU.]

Subdivision 1. [MATERIALS AND SERVICES AVAILABLE.] Notwithstanding any law to the contrary, the Minnesota state colleges and universities may request from the commissioner of administration any services and materials available to any state agency under this chapter, including but not limited to purchasing, contracting, leasing, energy conservation, communications systems, construction, and all other programs and contracts administered by the department of administration, whether administered directly or indirectly by contract or otherwise. The commissioner of administration shall make reasonable efforts to comply with any such request. The chancellor of the Minnesota state colleges and universities and the commissioner of administration shall cooperate to identify services and materials available to state agencies from the department of administration.

Subd. 2. [STATUS REQUESTED BY CHANCELLOR.] The Minnesota state colleges and universities shall be a state agency where being a state agency is a prerequisite to obtaining or participating in any services, materials acquisition, or programs under this chapter which are requested by the chancellor.

Subd. 3. [NOTIFICATION.] The Minnesota state colleges and universities shall be a state agency for purposes of being included on any state agency's list to receive notices and information appropriate to the purposes of the Minnesota state colleges and universities.

Sec. 18. Minnesota Statutes 1994, section 16B.49, is amended to read:

16B.49 [CENTRAL MAILING SYSTEM.]

The commissioner shall maintain and operate for agencies a central mailing system. Official mail of an agency occupying quarters within the boundaries of the city of St. Paul must be delivered unstamped to the central mailing station. Account must be kept of the postage required on that mail, which is then a proper charge against the agency delivering the mail. To provide funds for the payment of postage, each agency shall make advance payments to the commissioner sufficient to cover its postage obligations for at least 60 days. For purposes of this section, the Minnesota state colleges and universities is a state agency.

Sec. 19. Minnesota Statutes 1994, section 16B.531, is amended to read:

16B.531 [TRAVEL SERVICES.]

The commissioner may offer a centralized travel service to all state departments and agencies, and to the Minnesota state colleges and universities, and may, in connection with that service, accept payments from travel agencies under contracts for the provision of travel services. The payments must be deposited in the motor pool revolving account established by section 16B.54, subdivision 8, and must be used for the expenses of managing the centralized travel service. Revenues in excess of the management costs of the centralized service must be returned to the general fund.

Sec. 20. Minnesota Statutes 1994, section 16B.54, subdivision 1, is amended to read:

Subdivision 1. [MOTOR POOLS.] The commissioner shall manage a central motor pool of passenger motor vehicles and trucks used by state agencies with principal offices in the city of St. Paul and may provide for branch central motor pools at other places within the state. For purposes of this section, (1) "agencies" includes the Minnesota state colleges and universities, and (2) "truck" means a pickup or panel truck up to one ton carrying capacity.

Sec. 21. Minnesota Statutes 1994, section 16B.85, subdivision 2, is amended to read:

Subd. 2. [RISK MANAGEMENT FUND.] (a) All state agencies, and the Minnesota state colleges and universities, may, in cooperation with the commissioner, participate in insurance programs and other funding alternative programs provided by the risk management fund.

(b) When an agency or agencies enter into an insurance or self-insurance program, each agency shall contribute the appropriate share of its costs as determined by the commissioner.

(c) The money in the fund to pay claims arising from state activities and for administrative costs, including costs for the adjustment and defense of the claims, is appropriated to the commissioner.

(d) Interest earned from the investment of money in the fund shall be credited to the fund and be available to the commissioner for the expenditures authorized in this subdivision.

(e) The fund is exempt from the provisions of section 16A.152, subdivision 4. In the event that proceeds in the fund are insufficient to pay outstanding claims and associated administrative costs, the commissioner, in consultation with the commissioner of finance, may assess state agencies participating in the fund amounts sufficient to pay the costs. The commissioner shall determine the proportionate share of the assessment of each agency.

Sec. 22. Minnesota Statutes 1994, section 43A.05, subdivision 4, is amended to read:

Subd. 4. [TIME OFF IN EMERGENCIES.] The commissioner shall authorize appointing authorities to pay for time off in emergencies. The commissioner, after consultation with the commissioner of public safety, may excuse employees from duty with full pay in the event of a natural or other emergency, if continued operation would involve a threat to the health or safety of individuals. Absence with pay shall not exceed 16 working hours at any one time unless the commissioner authorizes a longer duration. Authority to excuse employees from duty with full pay on the campuses of the Minnesota state colleges and universities is vested in the college and university presidents, under guidelines established by the board of trustees of the Minnesota state colleges and universities.

Sec. 23. Minnesota Statutes 1995 Supplement, section 43A.06, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] (a) The commissioner, through the labor relations bureau, shall perform the duties assigned to the commissioner by sections 3.855, 179A.01 to 179A.25 and this section.

(b) The deputy commissioner for the labor relations bureau shall be the state labor negotiator for purposes of negotiating and administering agreements with exclusive representatives of employees and shall perform any other duties delegated by the commissioner subject to the limitations in paragraph (c).

(c) In consultation with the commissioner of employee relations and except as specified in this paragraph, The board of trustees of the Minnesota state colleges and universities may exercise the powers under this section for employees included in units 9, 10, 11, and 12 in section 179A.10, subdivision 2. The power and authority to engage in collective bargaining or to enter into interest arbitration remains with the commissioner of employee relations, who shall exercise those powers in consultation with the board of trustees of the Minnesota state colleges and universities. The commissioner of employee relations shall have the right to review and comment to the Minnesota state colleges and universities on the board's final proposals prior to exchange of final positions with the designated bargaining units as well as any requests for interest arbitration. When submitting a proposed collective bargaining agreement to the legislative coordinating commission and the legislature under section 3.855, subdivision 2, the board of trustees must use procedures and assumptions consistent with those used by the commissioner of employee relations in calculating the costs of the proposed contract.

Sec. 24. Minnesota Statutes 1994, section 43A.10, subdivision 3, is amended to read:

Subd. 3. [FACILITIES FURNISHED EXAMINERS.] The authorities having control of public buildings in political subdivisions of the state and school districts, upon written request of the commissioner, shall furnish without charge convenient facilities for the administration of examinations. Upon such request, it shall be the duty of state and local authorities and employees, as it is consistent with their other duties, to aid in carrying out the provisions of this section. Campuses of the Minnesota state colleges and universities may charge the commissioner for actual costs incurred in providing facilities for examinations, provided that the costs were incurred due solely to the examination.

Sec. 25. Minnesota Statutes 1994, section 123.70, subdivision 10, is amended to read:

Subd. 10. A statement required to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization shall include month, day, and year for immunizations administered after January 1, 1990.

(a) For persons enrolled in grades 7 and 12 during the 1992-1993 1996-1997 school term, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less that one month apart a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(b) For persons enrolled in grades 7, 8, and 12 during the 1993-1994 1997-1998 school term, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less than one month apart a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(c) For persons enrolled in grades 7, 8, 9, and 12 during the 1994-1995 1998-1999 school term, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less than one month apart a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(d) For persons enrolled in grades 7, 8, 9, 10, and 12 during the 1995-1996 1999-2000 school term, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less than one month apart a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(e) For persons enrolled in grades 7 through 12 during the 2000-2001 school term and for each year thereafter, the statement must indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.

(f) For persons enrolled in grades 7 through 12 during the 1996-1997 school year and for each year thereafter, the statement must indicate that the person has received at least two doses of vaccine against measles, mumps, and rubella, given alone or separately and given not less than one month apart.

Sec. 26. Minnesota Statutes 1994, section 135A.033, is amended to read:

135A.033 [PERFORMANCE FUNDING.]

The governing boards of the University of Minnesota, the state universities, the community colleges, and the technical colleges and the Minnesota state colleges and universities, in conjunction with their respective campuses, shall each specify performance categories and indicators relating to section 135A.053, subdivision 1, to be used for policy and appropriations decisions, as well as allocations for rewarding campuses that achieve performance levels and assisting campuses that are unable to achieve these levels. Because the mission of each system and type of campus varies, categories and indicators shall vary accordingly.

Sec. 27. [135A.053] [STATE HIGHER EDUCATION POLICY.]

Subdivision 1. [STATEWIDE OBJECTIVES.] Minnesota's higher education investment is made in pursuit of the following objectives:

(1) to ensure quality - to provide a level of excellence that is competitive on a national and international level, through high quality teaching, scholarship, and learning in a broad range of arts and sciences, technical education, and professional fields;

(2) to foster student success - to enable and encourage students to choose institutions and programs that are best suited for their talents and abilities, and to provide an educational climate that supports students in pursuing their goals and aspirations;

(3) to promote democratic values - to enhance Minnesota's quality of life by developing understanding and appreciation of a free and diverse society;

(4) to maintain access - to provide an opportunity for all Minnesotans, regardless of personal circumstances, to participate in higher education; and

(5) to enhance the economy - to assist the state in being competitive in the world market, and to prepare a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs.

Subd. 2. [PERFORMANCE AND ACCOUNTABILITY.] Higher education systems and campuses are expected to achieve the objectives in subdivision 1 and will be held accountable for doing so. The legislature is increasing the flexibility of the systems and campuses to provide greater responsibility to higher education in deciding how to achieve statewide objectives, and to decentralize authority so that those decisions can be made at the level where the education is delivered. To demonstrate their accountability, the legislature expects each system and campus to measure and report on its performance, using meaningful indicators that are critical to achieving the objectives in subdivision 1, as provided in section 135A.033. Nothing in this section precludes a system or campus from determining its own objectives and performance measures beyond those identified in this section.

Sec. 28. Minnesota Statutes 1994, section 135A.14, as amended by Laws 1995, chapter 212, article 3, section 59, and Laws 1995, First Special Session chapter 3, article 16, section 13, is amended to read:

135A.14 [STATEMENT OF IMMUNIZATION OF POST-SECONDARY STUDENTS.]

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them.

(a) "Administrator" means the administrator of the institution or other person with general control and supervision of the institution.

(b) "Public or private post-secondary educational institution" or "institution" means any of the following institutions having an enrollment of more than 100 persons during any quarter, term, or semester during the preceding year: (1) the University of Minnesota; (2) the state universities; (3) the state community colleges; (4) public technical colleges; (5) private four-year, professional and graduate institutions; (6) private two-year colleges; and (7) schools subject to either chapter 141, sections 136A.61 to 136A.71, or schools exempt under section 136A.657, and which offer educational programs within the state for an academic year greater than six consecutive months. An institution's report to the Minnesota higher education services office or the Minnesota department of children, families, and learning may be considered when determining enrollment.

(c) "Student" means a person born after 1956 who did not graduate from a Minnesota high school in 1997 or later, and who is (1) registering for more than one class during a full academic term, such as a quarter or a semester; or (2) housed on campus and is registering for one or more classes. Student does not include persons enrolled in extension classes only or correspondence classes only.

Subd. 2. [STATEMENT OF IMMUNIZATION REQUIRED.] Except as provided in subdivision 3, no student may remain enrolled in a public or private post-secondary educational institution unless the student has submitted to the administrator a statement that the student has received appropriate immunization against measles, rubella, and mumps after having attained the age of 12 months, and against diphtheria and tetanus within ten years of first registration at the institution. This statement must indicate the month and year of each immunization given. Instead of submitting a statement, a student may provide an immunization record maintained by a school according to section 123.70, subdivision 7, or a school in another state if the required information is contained in the record. A student who has submitted a statement as provided in this subdivision may transfer to a different Minnesota institution without submitting another statement if the student's transcript or other official documentation indicates that the statement was submitted.

Subd. 3. [EXEMPTIONS FROM IMMUNIZATION.] (a) An immunization listed in subdivision 2 is not required if the student submits to the administrator a statement signed by a physician that shows:

(1) that, for medical reasons, the student did not receive an immunization;

(2) that the student has experienced the natural disease against which the immunization protects; or

(3) that a laboratory has confirmed the presence of adequate immunity.

(b) If the student submits a notarized statement that the student has not been immunized as required in subdivision 2 because of the student's conscientiously held beliefs, the immunizations described in subdivision 2 are not required. The institution shall forward this statement to the commissioner of health.

Subd. 4. [IMMUNIZATION FILES REQUIRED.] The institution must maintain an immunization record within the student's file for all students each student governed by this section for at least one year from the time of original filing. The immunization records may be inspected by the department of health and the local board of health in whose jurisdiction the institution is located.

Subd. 5. [DEADLINE FOR SUBMITTING STATEMENT.] The institution shall require that the statement from the student, as required within subdivision 2 or 3, be submitted within 45 days of commencement of the academic term for which the student has registered.

Sec. 29. Minnesota Statutes 1995 Supplement, section 135A.181, subdivision 2, is amended to read:

Subd. 2. [COMMON CALENDAR.] In converting to the semester system required in subdivision 1 shall be offered on a common calendar throughout all, the campuses under the jurisdiction of the board of trustees of the Minnesota state colleges and universities. This calendar, in consultation with the system office, shall set calendars that best meet the needs of students, including those jointly enrolled in local school districts and other cooperative programs. Common calendars shall include be a priority at colocated campuses including a common start and end date for each semester as well as common summer school schedules. The board of trustees may exempt a campus from this calendar if they determine that because of extenuating circumstances an alternative calendar would better serve students' needs.

Sec. 30. Minnesota Statutes 1995 Supplement, section 136A.101, subdivision 10, is amended to read:

Subd. 10. "Satisfactory academic progress" means that:

(1) at a point between by the end of a student's first and second academic year of attendance at an institution, the student has at least a cumulative grade point average of C or its equivalent, or academic standing consistent with the institution's graduation requirements; and

(2) by the end of the first term of the third and fourth academic year of attendance, (i) the student has a cumulative grade point average of at least a C or its equivalent, (ii) the student's advisor certifies that the student has reviewed the general education requirements necessary for graduation and is making satisfactory progress toward completing them, and (iii) the student's advisor certifies that the student has chosen a major and reviewed the requirements necessary for completion of the major.

Sec. 31. [136A.1312] [FINANCIAL AID ADMINISTRATOR, PROFESSIONAL JUDGMENT.]

Nothing in this chapter or in the office's rules shall be interpreted as limiting the ability of student financial aid administrators, on the basis of adequate documentation, to make necessary adjustments to the cost of attendance and expected family contribution computations to allow for treatment of individual students with special circumstances, with the exception of the cost of attendance defined under section 136A.121, subdivision 6. In addition, nothing in this chapter or in the office's rules shall be interpreted as limiting the ability of the student financial aid administrator to use supplementary information about the financial status of eligible applicants with special circumstances in selecting recipients of state financial aid and determining the amount of awards. Nothing in this section precludes a financial aid administrator from establishing an appeals process for other extenuating circumstances.

Sec. 32. [136A.1313] [FINANCIAL AID AUDITS.]

Beginning with audits for fiscal year 1996, in place of the audits provided by the office, public institutions that administer state grants under decentralized delivery may arrange for audits of state financial aid awards and tuition reciprocity recipients in conjunction with their audits for federal financial aid. Audits must be conducted in compliance with guidelines and materials prepared by the office. The office shall develop a review process including procedures for responding to audit exceptions. All other institutions under decentralized delivery may arrange for audits under this section beginning with audits for fiscal year 1997.

Sec. 33. Minnesota Statutes 1995 Supplement, section 136F.06, subdivision 1, is amended to read:

Subdivision 1. [GENERAL AUTHORITY.] The board shall possess all powers necessary to govern the state colleges and universities and all related property. Those powers shall include, but are not limited to, those enumerated in this section. The board shall prescribe courses of study and conditions of admission, set tuition and fees, prescribe approve programs of study and requirements for completion of programs, approve the awarding of appropriate certificates, diplomas, and degrees, enter into contracts and other agreements, and adopt suitable policies for the institutions it governs. To the extent practicable in protecting statewide interests, the board shall provide autonomy to the campuses while holding them accountable for their decisions. Sections 14.01 to 14.47 do not apply to policies and procedures of the board.

Sec. 34. Minnesota Statutes 1995 Supplement, section 136F.06, subdivision 2, is amended to read:

Subd. 2. [GOVERNANCE AUTHORITY.] The board shall have the authority needed to operate and govern the state colleges and universities unless otherwise directed or limited prohibited by law. The board is responsible for its operations and necessary decisions unless these are specifically delegated by law to a state department or agency.

Sec. 35. Minnesota Statutes 1995 Supplement, section 136F.12, is amended to read:

136F.12 [FOND DU LAC CAMPUS.]

The Fond du Lac campus has a unique mission among two-year colleges to serve the lower division general education needs in Carlton and south St. Louis counties, and the education needs of American Indians throughout the state and especially in northern Minnesota. Accordingly, while the college is governed by the board of trustees, its governance is accomplished in conjunction with the board of directors of Fond du Lac tribal college. By July 1, 1995, the board of trustees and the board of directors of Fond du Lac tribal college shall implement the mechanisms necessary to accomplish the sharing of authority while ensuring accountability for college actions. The mechanisms shall supersede any previous arrangement, agreement, or memorandum of understanding.

Sec. 36. Minnesota Statutes 1995 Supplement, section 136F.16, subdivision 3, is amended to read:

Subd. 3. [OFF-CAMPUS SITES.] The board shall not establish off-campus centers or other permanent sites to provide academic programs, courses, or student services without authorizing legislation. For the purposes of this subdivision, the campus of Metropolitan State University is the seven-county metropolitan area. This section does not apply to sites set up specifically for the delivery of courses and programs through telecommunications.

Sec. 37. Minnesota Statutes 1995 Supplement, section 136F.18, is amended to read:

136F.18 [CAMPUS CLOSING.]

The board may close a campus or center under its jurisdiction according to policies adopted by the board. Prior to closing a campus or center, the board shall hold a public hearing on the issue in the area which would be affected by the closing. At the hearing affected persons shall have an opportunity to present testimony. The board shall give notice of this hearing by publishing notice in the State Register and in a newspaper of general circulation in the affected area at least 30 days before the scheduled hearing.

Sec. 38. Minnesota Statutes 1995 Supplement, section 136F.30, is amended to read:

136F.30 [COURSES AND PROGRAMS.]

The board shall prescribe the courses review and approve or disapprove campus proposals for adding, deleting, or substantially changing programs of study, including graduate and undergraduate academic programs, training in professional, semiprofessional, and technical fields, and adult education. The board shall avoid duplicate program offerings. The board may initiate activities to close programs. The board shall place a high priority on ensuring the transferability of credit.

Sec. 39. Minnesota Statutes 1995 Supplement, section 136F.36, subdivision 2, is amended to read:

Subd. 2. [EXEMPTIONS.] The sale requirements of chapters 92 and 94 do not apply to this section, nor do the leasing provisions of section 16B.24, nor do the construction supervision and control provisions of sections 16B.30 to 16B.335. The board shall develop policies for leasing requirements and construction supervision. The board will

normally competitively bid contracts related to instructional construction but, notwithstanding the provisions of sections 16B.07 to 16B.09, may negotiate contracts without competitive bidding where it deems appropriate.

Sec. 40. [136F.42] [PERSONNEL MANAGEMENT.]

Subdivision 1. [TIME REPORTING.] As provided in executive order 96-2, the board, in consultation with the commissioners of employee relations and finance, may develop policies to allow system office or campus employees on salaries, as defined in section 43A.17, subdivision 1, to use negative time reporting in which employees report only that time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation with the commissioners of employee relations and finance, shall evaluate the use of negative time reporting and its potential for use with other state employees.

Subd. 2. [TRAVEL POLICIES.] The board may adopt policies for colleges and universities to approve and administer travel arrangements, other than reimbursement, for employees on campus, and for the system office to provide the same services for employees in that office.

Sec. 41. Minnesota Statutes 1995 Supplement, section 136F.44, is amended to read:

136F.44 [ADMINISTRATIVE INTERACTION WITH STUDENTS.]

Subdivision 1. [SYSTEM AND CAMPUS ADMINISTRATORS.] As part of their annual goal setting activity, all unrepresented system and campus academic administrators employed in their positions before July 1, 1995, shall have the expectation of are encouraged to substantially increasing increase their interaction with students through activities such as teaching a regularly scheduled course or serving as an academic advisor. Contracts for persons initially employed in unclassified administrative positions on or after July 1, 1995, shall include requirements for activities involving student contact. Actions to increase the interaction of students and administrators under this section shall not displace permanent faculty or staff.

Subd. 2. [EVALUATION INFORMATION.] Each state university, community college, and technical college campus shall provide an evaluation of this activity to the board, and The board shall include a summary of campus and system activities related to subdivision 1 in its 1998-1999 biennial budget request.

Sec. 42. Minnesota Statutes 1995 Supplement, section 136F.50, is amended to read:

136F.50 [COOPERATION OR PROMOTION OF A STATE COLLEGE OR UNIVERSITY.]

The board, system office, and the campuses may cooperate by contractual arrangement or otherwise with responsible persons, firms, corporations, associations, or governmental agencies to promote short courses, research, and other programs and activities in the state colleges and universities as in the judgment of the board, system office, or the campus contribute to the development of the state colleges and universities and the welfare of their students.

Sec. 43. [136F.526] [AUDITS.]

Each college and university shall be audited as provided by board policy. The policy shall be designed to ensure financial integrity, necessary internal controls, and appropriate accordance between board policies and campus expenditures. The college or university may arrange for any additional audits it desires by contracting with the legislative auditor or a private certified public accountant. Nothing in this section shall limit the authority of the legislative auditor to perform selected scope audits or other duties of the office as provided under section 3.971.

Sec. 44. Minnesota Statutes 1995 Supplement, section 136F.53, subdivision 1, is amended to read:

Subdivision 1. [BOARD POWER CAMPUS PARKING AUTHORITY.] Notwithstanding section 169.966, the board may authorize a state college or university to may adopt and enforce policies, regulations, or ordinances for the regulation of traffic and parking in parking facilities and on private roads and roadways situated on property owned, leased, occupied, or operated by the state college or university.

Sec. 45. Minnesota Statutes 1995 Supplement, section 136F.53, subdivision 3, is amended to read:

Subd. 3. [DISPUTES.] A state college or university, with the approval of the board, shall establish procedures to resolve a dispute arising from enforcement of a policy.

Sec. 46. Minnesota Statutes 1995 Supplement, section 136F.58, is amended to read:

136F.58 [BOOKSTORES.]

The board may permit A state college or university to conduct may operate a bookstore in a state college or university building, or may allocate space in a state college or university building and permit a person or corporation to conduct operate a bookstore therein without rent at the board's campus' pleasure and on such conditions as the board may impose. The board may provide insurance, at no cost to the state, for the inventory of a bookstore a state college or university conducts in its building.

Sec. 47. [136F.581] [PURCHASES AND CONTRACTS.]

Subdivision 1. [CONDITIONS.] The board and the colleges and universities are subject to the provisions of section 471.345.

Subd. 2. [POLICIES AND PROCEDURES.] The board shall develop policies, and each college and university shall develop procedures, for purchases and contracts that are consistent with subdivision 1. In addition, each college and university, in consultation with the system office, shall develop procedures for those purchases and contracts that can be accomplished by a college and university without board approval. The board policies must allow each college and university the local authority to enter into contracts for construction projects of up to $250,000 and to make other purchases of up to $50,000, without receiving board approval. The board may allow a college or university local authority to make purchases over $50,000 without receiving board approval.

Subd. 3. [PROCUREMENT FROM DESIGNATED BUSINESSES.] The policies and procedures must include provisions for procurement, including construction, from small targeted group businesses and businesses from economically disadvantaged areas designated under section 16B.19. The board, colleges, and universities shall use the methods contained in section 471.345, subdivision 8, for such purchasing, or may develop additional methods in which the cost percentage preferences are consistent with the provision of section 16B.19, subdivision 2c and 2d, or consistent with the provisions of the University of Minnesota's targeted group business purchasing program.

Subd. 4. [PROFESSIONAL OR TECHNICAL SERVICES.] (a) The board shall develop policies for entering into contracts for professional or technical services, other than instructional services. The policies must allow each college and university the authority to enter into contracts for professional or technical services up to $15,000 without board approval. The board may allow a college or university authority to enter into contracts for professional or technical services over $15,000 without receiving board approval.

(b) Each college and university, in consultation with the system office, shall develop procedures to enter into contracts for professional or technical services.

(c) The policies and procedures developed by the board and by each college and university for professional or technical service contracts must be done in consultation with employees and their exclusive bargaining representatives and must address topics such as employee protections, information availability and reporting, conflict of interest, and renewal restrictions.

Sec. 48. [136F.582] [LOCAL CONTRACTING AUTHORITY.]

College and university presidents may enter into contracts to provide customized training or for short-term leases of instructional space or equipment without additional authorization.

Sec. 49. [136F.61] [STATE BUILDING CODE.]

All Minnesota state college and university facilities are subject to the provisions of the state building code under chapter 16B and the Uniform Fire Code under chapter 299F.

Sec. 50. [136F.67] [FINANCING OF CHILD CARE; PARKING.]

Subdivision 1. [AUTHORIZATION.] A technical college or a community college must not seek financing for child care facilities or parking facilities through the higher education facilities authority, as provided in section 136A.28, subdivision 7, without the explicit authorization of the board.

Subd. 2. [PARKING.] State appropriations for repair or construction of parking facilities must not be used for more than two-thirds of the repair or construction cost of a parking facility at any technical college or community college campus. The campus must provide the remaining costs through local revenue.

Sec. 51. Minnesota Statutes 1995 Supplement, section 136F.71, is amended by adding a subdivision to read:

Subd. 3. [INTEREST INCOME.] Beginning July 1, 1997, interest income attributable to general fund dedicated receipts of the board is appropriated to the board. The board shall allocate the income proportionately among the colleges and universities. The board shall report this income separately in its biennial budget requests.

Sec. 52. Minnesota Statutes 1995 Supplement, section 136F.72, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATION.] The board Each college and university, independent of other authority and notwithstanding chapters 16A and 16B, shall administer the money collected for the state colleges and universities its activity funds and the administrative fund. The board, independent of other authority and notwithstanding chapters 16A and 16B, shall administer the administrative fund established in the system office. All activity fund money collected shall be administered under the policies of the board subject to audit of the legislative auditor.

Sec. 53. Minnesota Statutes 1995 Supplement, section 136F.80, subdivision 2, is amended to read:

Subd. 2. [DEPOSIT OF MONEY.] The board shall provide by policy, in accordance with provisions of chapter 118, for the deposit of all money received or referred to under this section. Whenever the board shall by resolution determine that there are moneys in the state college or university funds not currently needed, the board may by resolution authorize and direct the president of the college or university to invest a specified amount in securities as are duly authorized as legal investments for savings banks and trust companies. Securities so purchased shall be deposited and held for the board by any bank or trust company authorized to do a banking business in this state. Notwithstanding the provisions of chapter 118, the state board of investment may invest assets of the board, colleges, and universities when requested by the board, college, or university.

Sec. 54. Minnesota Statutes 1994, section 137.37, is amended to read:

137.37 [OFF-CAMPUS SITES AND CENTERS.]

The board of regents and the university campuses are requested to not establish any off-campus centers or other permanent sites located off university campuses to provide academic programs, courses, or student services without authorizing legislation. This section does not apply to sites set up specifically for the delivery of courses and programs through telecommunications.

Sec. 55. Minnesota Statutes 1995 Supplement, section 169.441, subdivision 5, is amended to read:

Subd. 5. [OPTIONAL MARKINGS; RULES.] A school district or technical college may elect to show on the front and rear of the school buses that it owns or contracts for, a plainly visible, summary message explaining section 169.444, subdivisions 1 and 2. If the school district or technical college elects to display the message, it must conform with the rules of the commissioner of children, families, and learning. The commissioner shall adopt rules governing the size, type, design, display, and content of the summary message that may be shown.

Sec. 56. Minnesota Statutes 1994, section 169.448, subdivision 2, is amended to read:

Subd. 2. [SCHOOL MOTOR COACHES.] (a) Neither A school district nor a technical college may not acquire a motor coach for transportation purposes.

(b) A motor coach acquired by a school district or technical college before March 26, 1986, may be used by it only to transport students participating in school activities, their instructors, and supporting personnel to and from school activities. A motor coach may not be outwardly equipped and identified as a school bus. A motor coach operated under this subdivision is not a school bus for purposes of section 124.225. The state board of education shall implement rules governing the equipment, identification, operation, inspection, and certification of motor coaches operated under this subdivision.

(c) After January 1, 1998, neither a school district nor a technical college may not own or operate a motor coach for any purpose.

Sec. 57. Minnesota Statutes 1994, section 201.1611, is amended to read:

201.1611 [POST-SECONDARY INSTITUTION VOTER REGISTRATION.]

Subdivision 1. [FORMS.] All post-secondary institutions that enroll students accepting state or federal financial aid shall provide voter registration forms to each student upon payment of tuition, fees, and activities funds at the commencement of as early as possible in the fall quarter. The forms must contain spaces for the information required in section 201.071, subdivision 1, and applicable rules of the secretary of state. The institutions may request these forms from the secretary of state. Institutions shall consult with their campus student government in determining the most effective means of distributing the forms and in seeking to facilitate election day registration of students under section 201.061, subdivision 3.

Subd. 2. [STUDENT VOTER REGISTRATION.] Upon registration or receipt of payment of fees, students must be asked if they want to register to vote at the same time. A copy of each completed voter registration form must be sent to the county auditor of the county in which the voter maintains residence or to the secretary of state as soon as possible. All completed voter registration forms must be forwarded to the county auditor within five days and in no case later than 21 days before the general election.

Sec. 58. Minnesota Statutes 1994, section 248.07, subdivision 7, is amended to read:

Subd. 7. [BLIND, VENDING STANDS AND MACHINES ON GOVERNMENTAL PROPERTY.] Notwithstanding any other law, for the rehabilitation of blind persons the commissioner shall have exclusive authority to establish and to operate vending stands and vending machines in all buildings and properties owned or rented exclusively by the Minnesota state colleges and universities at a state university or, a community college systems, a consolidated community technical college, or a technical college served by the commissioner before January 1, 1996, or by any department or agency of the state of Minnesota except the department of natural resources properties operated directly by the division of state parks and not subject to private leasing. The merchandise to be dispensed by such vending stands and machines may include nonalcoholic beverages, food, candies, tobacco, souvenirs, notions and related items. Such vending stands and vending machines herein authorized shall be operated on the same basis as other vending stands for the blind established and supervised by the commissioner under federal law. The commissioner shall waive this authority to displace any present private individual concessionaire in any state-owned or rented building or property who is operating under a contract with a specific renewal or termination date, until the renewal or termination date. With the consent of the governing body of a governmental subdivision of the state, the commissioner may establish and supervise vending stands and vending machines for the blind in any building or property exclusively owned or rented by the governmental subdivision.

Sec. 59. Laws 1995, chapter 212, article 2, section 15, is amended to read:

Sec. 15. [CREDIT STUDENT TRACKING.] The board of regents of the University of Minnesota and the board of trustees of the Minnesota state colleges and universities are requested to develop a centralized electronic tracking system systems of credits earned by students student enrollment.

Sec. 60. Laws 1995, chapter 212, article 2, section 20, subdivision 1, is amended to read:

Subdivision 1. [PLAN.] The state universities, community colleges, and technical colleges shall each develop and implement plans, in conjunction with the board of trustees, to provide students with job placement history and projected demand to students at the time the student declares a major program or field of study for careers in major programs or fields of study. The University of Minnesota campuses are requested to develop and implement similar plans. These plans may allow for this information to be provided through such means as in-person student advising or electronic delivery, as determined by the campus to best address student needs.

Sec. 61. Laws 1995, chapter 212, article 2, section 20, subdivision 2, is amended to read:

Subd. 2. [CONTENTS.] Information provided must include program placement history, and projected demand in the field and in associated types of placement, using labor market forecasting information from the department of economic security or similar materials. The plan must provide for students to indicate in writing that they received the information.

Sec. 62. [MINNESOTA STATE COLLEGE AND UNIVERSITY POLICIES.]

Subdivision 1. [GENERAL.] In establishing system policies under this section and elsewhere in this act, the system office and campus representatives shall consult with the departments of administration, employee relations, and finance.

Subd. 2. [DEVELOPMENT.] The system office and the campuses shall begin developing policies and procedures and do other necessary planning to implement this act immediately upon final enactment. Policies and procedures necessary to implement section 47 shall be developed by July 1, 1996. To the extent possible, policies and procedures necessary to implement any other sections shall be developed before the beginning of the 1996-1997 academic year.

Subd. 3. [PROPERTY DISPOSAL POLICY.] Notwithstanding Minnesota Statutes, section 15.054, Minnesota state college and university system and campus officials, in consultation with the department of administration, shall establish an efficient method for the disposal and exchange of property and equipment no longer needed by the system office or a campus, but that might be of use to another college or university in the system.

Minnesota state college and university system and campus officials may allow other state and local governmental agencies access to property and equipment to be used for educational purposes.

Subd. 4. [ENVIRONMENTALLY RESPONSIBLE PRACTICES.] The board shall develop (1) resource recovery policies that ensure recycling in the system office and at the colleges and universities is at least maintained at the current level, and (2) environmentally responsible practices that are consistent in their intent and goals with Minnesota Statutes, sections 16B.121 and 115A.15, and related administrative policies.

Sec. 63. [FINANCIAL AID RULES.]

The higher education services office shall eliminate the requirement that schools document that students have been counseled regarding responsibilities as SELF loan borrowers. Schools shall have a campus policy for counseling students about their obligations and responsibilities as SELF borrowers. This counseling may be done in conjunction with federal loan counseling. The office shall work with the Minnesota association of financial aid administrators to determine a solution to the problems created by different federal and state disbursement schedules and to improve the process relating to holds on state grants for nonpayment of child support.

Sec. 64. [CONTRACT LIABILITY.]

Any procurement contract involving the department of administration that (1) was entered into before March 1, 1996, and (2) would be breached without the participation of the Minnesota state colleges and universities as determined by the attorney general, shall remain in effect until the first time that the Minnesota state colleges and universities can be excluded without liability.

Sec. 65. [TRANSITIONAL BARGAINING.]

Changes in the authority of the board of trustees to negotiate contracts under section 23 apply to negotiations for contracts for the period beginning July 1, 1999.

Sec. 66. [REPEALER.]

Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, section 136F.59, subdivision 1, are repealed.

Sec. 67. [EFFECTIVE DATE.]

Sections 1, 2, 5 to 11, 14, 15, 26 to 31, 33 to 38, 41 to 46, 48, and 53 to 66 are effective the day following final enactment. Sections 3, 4, 12, 13, 16 to 24, 32, 39, 40, 47, and 49 to 52 are effective July 1, 1996. Section 25 is effective January 1, 1997."

Delete the title and insert:

"A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; allowing higher education greater flexibility in conducting its business; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, and by adding a subdivision; 16B.35, by adding a subdivision; 16B.36,

subdivision 1; 16B.37, subdivision 1; 16B.41, subdivision 2; 16B.482; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181, subdivision 2; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; 136F.80, subdivision 2; and 169.441, subdivision 5; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 16B; 135A; 136A; and 136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, section 136F.59, subdivision 1."

We request adoption of this report and repassage of the bill.

House Conferees: Gene Pelowski, Jr., Lyndon R. Carlson and John Tuma.

Senate Conferees: Steve L. Murphy, Deanna Wiener and Cal Larson.

Pelowski moved that the report of the Conference Committee on H. F. No. 2206 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2206, A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, and by adding a subdivision; 16B.35, by adding a subdivision; 16B.41, subdivision 2; 16B.482; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; 136F.80, subdivision 2; and 169.441, subdivision 5; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and 136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, sections 135A.08; 136F.25; and 136F.59, subdivision 1; Laws 1995, chapter 212, article 1, section 6, subdivision 1.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 131 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Onnen        Stanek
Anderson, B. Finseth      Koppendrayer Opatz        Sviggum
Anderson, R. Frerichs     Kraus        Orenstein    Swenson, D.
Bakk         Garcia       Larsen       Orfield      Swenson, H.
Bertram      Girard       Leighton     Osskopp      Sykora
Bettermann   Goodno       Leppik       Osthoff      Tomassoni
Bishop       Greenfield   Lieder       Ostrom       Tompkins
Boudreau     Greiling     Lindner      Otremba      Trimble
Bradley      Gunther      Long         Ozment       Tuma
Broecker     Haas         Lourey       Paulsen      Tunheim
Brown        Hackbarth    Luther       Pawlenty     Van Dellen
Carlson, L.  Harder       Lynch        Pellow       Van Engen
Carlson, S.  Hasskamp     Macklin      Pelowski     Vickerman
Carruthers   Hausman      Mahon        Perlt        Wagenius
Clark        Holsten      Mares        Peterson     Warkentin
Commers      Huntley      Mariani      Pugh         Weaver
Cooper       Jaros        Marko        Rest         Wejcman
Daggett      Jefferson    McCollum     Rhodes       Wenzel
Dauner       Jennings     McElroy      Rice         Winter
Davids       Johnson, A.  McGuire      Rostberg     Wolf
Dawkins      Johnson, R.  Milbert      Rukavina     Worke
Dehler       Johnson, V.  Molnau       Sarna        Workman
Delmont      Kahn         Mulder       Schumacher   Sp.Anderson,I
Dempsey      Kalis        Munger       Seagren      
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8874

Dorn         Kelley       Murphy       Skoglund     
Entenza      Kelso        Olson, E.    Smith        
Erhardt      Kinkel       Olson, M.    Solberg      

Knight       Krinkie                   

A bill for an act relating to local government; providing for creation of an advisory council on intergovernmental relations; proposing coding for new law in Minnesota Statutes, chapter 15.

March 22, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2782, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2782 be further amended as follows:

Page 2, line 22, delete "governor" and insert "executive"

Page 3, line 15, delete, "December 31, 1999" and insert "June 30, 1998"

We request adoption of this report and repassage of the bill.

House Conferees: Howard Orenstein, Andy Dawkins and Tim Pawlenty.

Senate Conferees: James P. Metzen, John C. Hottinger and Dan Stevens.

Orenstein moved that the report of the Conference Committee on H. F. No. 2782 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2782, A bill for an act relating to local government; providing for creation of an advisory council on intergovernmental relations; proposing coding for new law in Minnesota Statutes, chapter 15.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 125 yeas and 7 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Opatz        Stanek
Anderson, R. Finseth      Koppendrayer Orenstein    Swenson, D.
Bakk         Frerichs     Kraus        Orfield      Swenson, H.
Bertram      Garcia       Larsen       Osskopp      Sykora
Bettermann   Girard       Leighton     Osthoff      Tomassoni
Bishop       Goodno       Leppik       Ostrom       Tompkins
Boudreau     Greenfield   Lieder       Otremba      Trimble
Bradley      Greiling     Long         Ozment       Tunheim
Broecker     Gunther      Lourey       Paulsen      Van Dellen
Brown        Haas         Luther       Pawlenty     Van Engen
Carlson, L.  Harder       Lynch        Pellow       Vickerman
Carlson, S.  Hasskamp     Macklin      Pelowski     Wagenius
Carruthers   Hausman      Mahon        Perlt        Warkentin
Clark        Holsten      Mares        Peterson     Weaver
Commers      Huntley      Mariani      Pugh         Wejcman
Cooper       Jaros        Marko        Rest         Wenzel
Daggett      Jefferson    McCollum     Rhodes       Winter
Dauner       Jennings     McElroy      Rice         Wolf
Davids       Johnson, A.  McGuire      Rostberg     Worke
Dawkins      Johnson, R.  Milbert      Rukavina     Workman
Dehler       Johnson, V.  Molnau       Sarna        Sp.Anderson,I
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8875

Delmont      Kahn         Mulder       Schumacher   
Dempsey      Kalis        Munger       Seagren      
Dorn         Kelley       Murphy       Skoglund     
Entenza      Kelso        Olson, E.    Smith        
Erhardt      Kinkel       Onnen        Solberg      

Anderson, B. Knight       Lindner      Sviggum 
Hackbarth    Krinkie      Olson, M.    

A bill for an act relating to consumer protection; restricting the provision of immigration services; regulating notaries public; providing penalties; proposing coding for new law in Minnesota Statutes, chapters 325E; and 359.

March 20, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2478, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2478 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [325E.031] [IMMIGRATION SERVICES.]

Subdivision 1. [DEFINITIONS.] (a) For the purpose of this section, the terms in this subdivision have the meanings given.

(b) "Immigration matter" means any proceeding, filing, or action affecting the nonimmigrant, immigrant, or citizenship status of any person that arises under immigration and naturalization law, executive order, or presidential proclamation of the United States or any foreign country, or that arises under action of the United States Immigration and Naturalization Service, the United States Department of Labor, or the United States Department of State.

(c) "Immigration assistance service" means any advice, guidance, information, or action provided or offered to customers or prospective customers relating to any immigration matter and for which a fee is charged.

Subd. 2. [NOTICE.] (a) Any person who provides or offers immigration assistance services in this state shall post a notice at that person's place of business, setting forth information in English and in every other language in which the person provides or offers to provide immigration assistance services. Each language must be on a separate sign and posted in a location visible to customers. Each sign must be at least 11 inches by 17 inches and must contain the following statements:

(1) "I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW AND MAY NOT GIVE LEGAL ADVICE OR ACCEPT FEES FOR LEGAL ADVICE."

(2) "I AM NOT ACCREDITED TO REPRESENT YOU BEFORE THE UNITED STATES IMMIGRATION AND NATURALIZATION SERVICE AND THE IMMIGRATION BOARD OF APPEALS."

(b) Any person who advertises immigration assistance services in a language other than English, whether by radio, television, signs, pamphlets, newspapers, or other written communication, with the exception of a single desk plaque, shall post or otherwise include with the advertisement a notice in English and the language in which the advertisement appears that contains the language in paragraph (a), clause (1).

Subd. 3. [PROHIBITED ACTIVITIES.] Any person who provides or offers to provide immigration assistance services may not do any of the following:

(1) give any legal advice concerning an immigration matter or perform an act constituting the practice of immigration law as defined in Code of Federal Regulations, title 8, section 1.1 (i), (j), (k), or (m);

(2) represent, hold out or advertise, in connection with the provision of assistance in immigration matters, other titles or credentials in any language, including, but not limited to, "notary public" or "immigration consultant," that could cause a customer to believe that the person possesses special professional skills or is authorized to provide advice on an immigration matter;

(3) make any misrepresentation or false statement, directly or indirectly, to influence, persuade, or induce patronage;

(4) retain any compensation for service not performed; or

(5) refuse to return documents supplied by, prepared on behalf of, or paid for by the customer upon the request of the customer even if subject to a fee dispute.

Subd. 4. [WRITTEN CONTRACT.] Except as otherwise provided in this section, before providing an immigration assistance service a person shall provide the customer with a written contract that includes the following:

(1) an explanation of the services to be performed;

(2) identification of all compensation and costs to be charged to the customer for the services to be performed; and

(3) a statement that documents submitted in support of an application for nonimmigrant, immigrant, or naturalization status may not be retained by the person for any purpose, including payment of compensation or costs.

The written contract must be in both English and in the language of the customer. A copy of the contract must be provided to the customer upon the customer's execution of the contract. A customer has the right to rescind a contract within 72 hours after signing the contract. Any documents prepared on behalf of, or paid for by the customer, must be returned upon demand of the customer.

This subdivision does not apply to a not-for-profit organization that provides advice or assistance in immigration matters to clients without charge beyond a reasonable fee to reimburse the organization's or clinic's reasonable costs relating to providing immigration services to that client.

Subd. 5. [EXEMPTIONS.] This section does not apply to:

(1) an attorney licensed to practice law in any state or territory of the United States, or in any foreign country when authorized by the Minnesota supreme court, to the extent the attorney renders immigration assistance service in the course of practicing as an attorney;

(2) a nonlawyer assistant, as described by the rules of the Minnesota supreme court, employed by and under the direct supervision of a licensed attorney and rendering immigration assistance service in the course of the assistant's employment;

(3) a not-for-profit organization recognized by the Board of Immigration Appeals under Code of Federal Regulations, title 8, section 292.2(a), and employees of those organizations accredited under Code of Federal Regulations, title 8, section 292.2(d), and designated entities as defined under Code of Federal Regulations, title 8, section 245a.1; and

(4) an organization employing or desiring to employ an alien or nonimmigrant alien, where the organization, its employees or its agents provide advice or assistance in immigration matters to alien or nonimmigrant alien employees or potential employees without compensation from the individuals to whom the advice or assistance is provided.

Subd. 6. [PENALTY AND REMEDIES.] A person who violates this section is guilty of a misdemeanor. The penalties and remedies of section 8.31 apply to violations of this section, including a private cause of action.

Sec. 2. [359.062] [NOTICE; LANGUAGES OTHER THAN ENGLISH.]

(a) A notary public who is not an attorney who advertises the services of a notary public in a language other than English, whether by radio, television, signs, pamphlets, newspapers, or other written communication, with the exception of a single desk plaque, shall post or otherwise include with the advertisement a notice in English and the language in which the advertisement appears. This notice must be of a conspicuous size, if in writing, and must state: "I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW IN MINNESOTA AND MAY NOT GIVE LEGAL ADVICE OR ACCEPT FEES FOR LEGAL ADVICE." If the advertisement is by radio or television, the statement may be modified but must include substantially the same message.

(b) A notary public who violates this section is guilty of a misdemeanor."

We request adoption of this report and repassage of the bill.

House Conferees: Carlos Mariani, Matt Entenza and Fran Bradley.

Senate Conferees: Sandra L. Pappas, Randy C. Kelly and Martha R. Robertson.

Mariani moved that the report of the Conference Committee on H. F. No. 2478 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2478, A bill for an act relating to consumer protection; restricting the provision of immigration services; regulating notaries public; providing penalties; proposing coding for new law in Minnesota Statutes, chapters 325E; and 359.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 131 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Onnen        Stanek
Anderson, B. Finseth      Koppendrayer Opatz        Sviggum
Anderson, R. Frerichs     Kraus        Orenstein    Swenson, D.
Bakk         Garcia       Larsen       Orfield      Swenson, H.
Bertram      Girard       Leighton     Osskopp      Sykora
Bettermann   Goodno       Leppik       Osthoff      Tomassoni
Bishop       Greenfield   Lieder       Ostrom       Tompkins
Boudreau     Greiling     Lindner      Otremba      Trimble
Bradley      Gunther      Long         Ozment       Tuma
Broecker     Haas         Lourey       Paulsen      Tunheim
Brown        Hackbarth    Luther       Pawlenty     Van Dellen
Carlson, L.  Harder       Lynch        Pellow       Van Engen
Carlson, S.  Hasskamp     Macklin      Pelowski     Vickerman
Carruthers   Hausman      Mahon        Perlt        Wagenius
Clark        Holsten      Mares        Peterson     Warkentin
Commers      Huntley      Mariani      Pugh         Weaver
Cooper       Jaros        Marko        Rest         Wejcman
Daggett      Jefferson    McCollum     Rhodes       Wenzel
Dauner       Jennings     McElroy      Rice         Winter
Davids       Johnson, A.  McGuire      Rostberg     Wolf
Dawkins      Johnson, R.  Milbert      Rukavina     Worke
Dehler       Johnson, V.  Molnau       Sarna        Workman
Delmont      Kahn         Mulder       Schumacher   Sp.Anderson,I
Dempsey      Kalis        Munger       Seagren      
Dorn         Kelley       Murphy       Skoglund     
Entenza      Kelso        Olson, E.    Smith        
Erhardt      Kinkel       Olson, M.    Solberg      
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8878

Knight  Krinkie                   

A bill for an act relating to watercraft; modifying the requirements for operation of a motor boat by a youth; modifying the provisions for operation of a personal watercraft by a youth; amending Minnesota Statutes 1994, sections 86B.305, subdivisions 1 and 2; and 86B.313, subdivision 2.

March 19, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2834, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2834 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [TITLE.]

This act shall be called the "Aaron Sahli child boating safety act."

Sec. 2. Minnesota Statutes 1994, section 86B.305, subdivision 1, is amended to read:

Subdivision 1. [UNDER AGE 12.] (a) Except in case of an emergency, a person under age 12 may not operate or be allowed to operate a watercraft propelled by a motor with a factory rating of more than 30 25 horsepower unless there is present in the watercraft, in addition to the operator, the operator's parent or legal guardian or at least one person of the age 18 21 or older who is within immediate reach of the controls of the motor. For purposes of section 86B.331, the person age 21 or older, as well as the actual operator, is in physical control of the motorboat.

(b) A person under age 12 may not operate or be allowed to operate a watercraft propelled by a motor with a factory rating of more than 75 horsepower.

Sec. 3. Minnesota Statutes 1994, section 86B.305, subdivision 2, is amended to read:

Subd. 2. [AGE 12 TO 17; PERMIT REQUIRED.] Except as provided in this subdivision, a person age 12 or older and younger than age 18 may not operate a motorboat powered by a motor over 30 25 horsepower without possessing a valid watercraft operator's permit from this state or from the operator's state of residence unless there is a person age 18 21 or older in the motorboat who is within immediate reach of the controls of the motor. For purposes of section 86B.331, the person age 21 or older, as well as the actual operator, is in physical control of the motorboat.

Sec. 4. Minnesota Statutes 1994, section 86B.313, subdivision 2, is amended to read:

Subd. 2. [AGE OF OPERATOR.] Except in the case of an emergency, a person under the age of 13 years may not operate or be permitted to operate a personal watercraft, regardless of horsepower, unless there is a person 18 years of age or older on board the craft. It is unlawful for the owner of a personal watercraft to permit the personal watercraft to be operated contrary to this subdivision.

Sec. 5. [ADVISORY GROUP REPORT.]

The department of natural resources shall continue its work with a boating advisory panel, consisting of members from the marine industry, boat dealers, shoreland owners, county sheriffs, boat user groups, legislators, and department representatives to review boating safety issues. The department shall report back to the chairs of the senate and house environment and natural resources committees with any recommendations for legislative changes by January 15, 1997.

Sec. 6. [EFFECTIVE DATE.]

Sections 2, paragraph (b), 4, and 5 are effective May 1, 1996. The remainder of this act is effective January 1, 1997."

Amend the title as follows:

Page 1, line 5, after "youth;" insert "requiring an advisory group report;"

We request adoption of this report and repassage of the bill.

House Conferees: Kris Hasskamp, Thomas Bakk and Dennis Ozment.

Senate Conferees: Janet B. Johnson, Gene Merriam and Gen Olson.

Hasskamp moved that the report of the Conference Committee on H. F. No. 2834 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2834, A bill for an act relating to watercraft; modifying the requirements for operation of a motor boat by a youth; modifying the provisions for operation of a personal watercraft by a youth; amending Minnesota Statutes 1994, sections 86B.305, subdivisions 1 and 2; and 86B.313, subdivision 2.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 94 yeas and 39 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Dempsey      Kahn         Milbert      Rukavina
Bakk         Dorn         Kalis        Mulder       Sarna
Bertram      Entenza      Kelley       Munger       Schumacher
Bettermann   Erhardt      Kelso        Murphy       Seagren
Bishop       Farrell      Kinkel       Olson, E.    Skoglund
Boudreau     Finseth      Knoblach     Opatz        Solberg
Broecker     Garcia       Larsen       Orenstein    Stanek
Brown        Goodno       Leighton     Orfield      Swenson, D.
Carlson, L.  Greenfield   Leppik       Osthoff      Tomassoni
Carlson, S.  Greiling     Lieder       Ostrom       Tompkins
Carruthers   Haas         Long         Otremba      Trimble
Clark        Hasskamp     Lourey       Ozment       Tuma
Commers      Hausman      Luther       Pawlenty     Vickerman
Cooper       Huntley      Mahon        Pellow       Warkentin
Daggett      Jaros        Mares        Pelowski     Wejcman
Dauner       Jefferson    Mariani      Peterson     Wenzel
Dawkins      Jennings     Marko        Pugh         Winter
Dehler       Johnson, A.  McCollum     Rhodes       Sp.Anderson,I
Delmont      Johnson, R.  McGuire      Rice         

Abrams       Harder       Lynch        Perlt        Van Dellen
Anderson, B. Holsten      Macklin      Rest         Van Engen
Bradley      Johnson, V.  McElroy      Rostberg     Wagenius
Davids       Knight       Molnau       Smith        Weaver
Frerichs     Koppendrayer Olson, M.    Sviggum      Wolf
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8880

Girard       Kraus        Onnen        Swenson, H.  Worke
Gunther      Krinkie      Osskopp      Sykora       Workman 
Hackbarth    Lindner      Paulsen      Tunheim      

A bill for an act relating to the environment; increasing the amount of reimbursement available for cleanup of petroleum releases by certain responsible persons; amending Minnesota Statutes 1995 Supplement, section 115C.09, subdivision 3.

March 21, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2519, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2519 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 115C.08, subdivision 4, is amended to read:

Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03 to 115C.06, and costs of corrective action taken by the agency under section 115C.03, including investigations;

(3) for costs of recovering expenses of corrective actions under section 115C.04;

(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

(5) for agency administrative costs of enforcing rules governing the construction, installation, operation, and closure of aboveground and underground petroleum storage tanks;

(6) for reimbursement of the harmful substance compensation account under subdivision 5 and section 115B.26, subdivision 4; and

(7) for administrative and staff costs as set by the board to administer the petroleum tank release program established in this chapter; and

(8) for corrective action performance audits under section 115C.093.

(b) Money in the fund is appropriated to the board to make reimbursements or payments under this section.

Sec. 2. Minnesota Statutes 1995 Supplement, section 115C.09, subdivision 3, is amended to read:

Subd. 3. [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) The board shall reimburse a responsible person who is eligible under subdivision 2 from the fund in the following amounts:

(1) 90 percent of the total reimbursable costs on the first $250,000 and 75 percent on any remaining costs in excess of $250,000 on a site; or

(2) for corrective actions at a residential site used as a permanent residence at the time the release was discovered, 92.5 percent of the total reimbursable costs on the first $100,000 and 100 percent of any remaining costs in excess of $100,000; or

(3) 90 percent of the total reimbursable costs on the first $250,000 and 100 percent of the cumulative total reimbursable costs in excess of $250,000 at all sites in which the responsible person had interest, and for which the commissioner has not issued a closure letter as of the effective date of this clause, if the responsible person dispensed less than 1,000,000 gallons of petroleum at each location in each of the last three calendar years that the responsible person dispensed petroleum at the location and:

(i) has owned no more than three locations in the state at which motor fuel was dispensed into motor vehicles and has discontinued operation of all petroleum retail operations; or

(ii) has owned no more than one location in the state at which motor fuel was dispensed into motor vehicles.

Not more than $1,000,000 may be reimbursed for costs associated with a single release, regardless of the number of persons eligible for reimbursement, and not more than $2,000,000 may be reimbursed for costs associated with a single tank facility.

(b) A reimbursement may not be made from the fund under this subdivision until the board has determined that the costs for which reimbursement is requested were actually incurred and were reasonable.

(c) When an applicant has obtained responsible competitive bids or proposals according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal are presumed to be reasonable by the board, unless the costs of the low bid or proposal are substantially in excess of the average costs charged for similar tasks, procedures, services, materials, equipment, and tests in the same geographical area during the same time period.

(d) When an applicant has obtained a minimum of two responsible competitive bids or proposals on forms prescribed by the board and where the rules promulgated under this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures, services, materials, equipment and tests, the eligible costs of the low bid or proposal are deemed reasonable if the costs are at or below the maximums set forth in the rules.

(e) Costs incurred for change orders executed as prescribed in rules promulgated under this chapter after June 1, 1995, are presumed reasonable if the costs are at or below the maximums set forth in the rules, unless the costs in the change order are above those in the original bid or proposal or are unsubstantiated and inconsistent with the process and standards required by the rules.

(f) A reimbursement may not be made from the fund under this subdivision in response to either an initial or supplemental application for costs incurred after June 4, 1987, that are payable under an applicable insurance policy, except that if the board finds that the responsible person has made reasonable efforts to collect from an insurer and failed, the board shall reimburse the responsible person under this subdivision.

(g) If the board reimburses a responsible person for costs for which the responsible person has petroleum tank leakage or spill insurance coverage, the board is subrogated to the rights of the responsible person with respect to that insurance coverage, to the extent of the reimbursement by the board. The board may request the attorney general to bring an action in district court against the insurer to enforce the board's subrogation rights. Acceptance by a responsible person of reimbursement constitutes an assignment by the responsible person to the board of any rights of the responsible person with respect to any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this paragraph, the board may instead request a return of the reimbursement under subdivision 5 and may employ against the responsible party the remedies provided in that subdivision, except where the board has knowingly provided reimbursement because the responsible person was denied coverage by the insurer.

(h) Money in the fund is appropriated to the board to make reimbursements under this section. A reimbursement to a state agency must be credited to the appropriation account or accounts from which the reimbursed costs were paid.

(i) The board may reduce the amount of reimbursement to be made under this section if it finds that the responsible person has not complied with a provision of this chapter, a rule or order issued under this chapter, or one or more of the following requirements:

(1) the agency was given notice of the release as required by section 115.061;

(2) the responsible person, to the extent possible, fully cooperated with the agency in responding to the release; and

(3) the state and federal rules and regulations applicable to the condition or operation of the tank when the noncompliance caused or failed to mitigate the release.

(j) The reimbursement may be reduced as much as 100 percent for failure by the responsible person to comply with the requirements in paragraph (i), clauses (1) to (3). In determining the amount of the reimbursement reduction, the board shall consider:

(1) the reasonable determination by the agency of the environmental impact of the noncompliance;

(2) whether the noncompliance was negligent, knowing, or willful;

(3) the deterrent effect of the award reduction on other tank owners and operators; and

(4) the amount of reimbursement reduction recommended by the commissioner.

(k) A person may assign the right to receive reimbursement to each lender who advanced funds to pay the costs of the corrective action or to each contractor or consultant who provided corrective action services. An assignment must be made by filing with the board a document, in a form prescribed by the board, indicating the identity of the responsible person, the identity of the assignee, the dollar amount of the assignment, and the location of the corrective action. An assignment signed by the responsible person is valid unless terminated by filing a termination with the board, in a form prescribed by the board, which must include the written concurrence of the assignee. The board shall maintain an index of assignments filed under this paragraph. The board shall pay the reimbursement to the responsible person and to one or more assignees by a multiparty check. The board has no liability to a responsible person for a payment under an assignment meeting the requirements of this paragraph.

Sec. 3. [115C.093] [CORRECTIVE ACTION PERFORMANCE AUDITS.]

(a) The board shall contract for performance audits of corrective actions for which reimbursement is sought under section 115C.09, subdivision 3, paragraph (a), clause (3), and may contract for audits of other corrective actions.

(b) A responsible person may request a performance audit under this section. If the board denies the request, it must provide the requester with the reasons for the denial.

(c) A performance audit conducted under this section must evaluate the adequacy of the corrective actions, the validity of the corrective action costs, and whether alternative methods or technologies could have been used to carry out the corrective actions at a lower cost. The board shall report the results of audits conducted under this section to the chairs of the senate committees on environment and natural resources and commerce and consumer protection, the finance division of the senate committee on environment and natural resources, and the house of representatives committees on environment and natural resources, environment and natural resources finance, and commerce, tourism, and consumer affairs. Money in the fund is appropriated to the board for the purposes of this section.

Sec. 4. Laws 1995, chapter 254, article 1, section 93, is amended to read:

Sec. 93. [SPENDING LIMITATION ON CONTRACTS.]

(a) During the biennium ending June 30, 1997, the aggregate amount spent by all departments or agencies defined in Minnesota Statutes, section 15.91, subdivision 1, on professional or technical service contracts may not exceed 95 percent of the aggregate amount these departments or agencies spent on these contracts during the biennium from July 1, 1993, to June 30, 1995. For purposes of this section, professional or technical service contracts are as defined in Minnesota Statutes, section 16B.17, but do not include contracts for highway construction or maintenance, contracts between state agencies, contracts paid for from insurance trust funds, gift and deposit funds, capital projects funds, or federal funds, contracts with private collection agencies, contracts that are entered into in connection with the agency's distribution of grant funds, or contracts entered into under Minnesota Statutes, section 16B.35 or 115C.093. The governor or a designated official must limit or disapprove proposed contracts as necessary to comply with this section.

(b) During the biennium ending June 30, 1997, the amount spent by (1) the house of representatives; (2) the senate; and (3) the legislative coordinating commission and all groups under its jurisdiction, from direct-appropriated funds on professional or technical service contracts may not exceed 95 percent of the amount spent on these contracts from direct-appropriated funds during the biennium from July 1, 1993, to June 30, 1995. Each entity listed in clauses (1), (2), and (3) of this paragraph must be treated separately for purposes of determining compliance with this paragraph, except that the legislative coordinating commission and all groups under its jurisdiction must be treated as one unit. For purposes of this paragraph, "professional or technical service contract" has the meaning defined in section 16B.17, but does not include contracts for actuarial services entered into by the legislative commission on pensions and retirement, or contracts with other legislative or state executive agencies. The house of representatives committee on rules and legislative administration, the senate committee on rules and administration, and the legislative coordinating commission must each determine the amount of the reduction to be made under this paragraph.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the environment; increasing the amount of reimbursement available for cleanup of petroleum releases by certain responsible persons; requiring corrective action performance audits in certain circumstances; exempting petroleum tank cleanup contracts from certain spending limitations; amending Minnesota Statutes 1995 Supplement, sections 115C.08, subdivision 4; and 115C.09, subdivision 3; Laws 1995, chapter 254, article 1, section 93; proposing coding for new law in Minnesota Statutes, chapter 115C."

We request adoption of this report and repassage of the bill.

House Conferees: Gene Pelowski, Jr., Virgil J. Johnson and Richard Mulder.

Senate Conferees: Steven Morse, Leonard R. Price and Pat Pariseau.

Pelowski moved that the report of the Conference Committee on H. F. No. 2519 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2519, A bill for an act relating to the environment; increasing the amount of reimbursement available for cleanup of petroleum releases by certain responsible persons; amending Minnesota Statutes 1995 Supplement, section 115C.09, subdivision 3.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Solberg
Anderson, B. Finseth      Koppendrayer Onnen        Stanek
Anderson, R. Frerichs     Kraus        Opatz        Sviggum
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8884

Bakk         Garcia       Krinkie      Orenstein    Swenson, D.
Bertram      Girard       Larsen       Orfield      Swenson, H.
Bettermann   Goodno       Leighton     Osskopp      Sykora
Bishop       Greenfield   Leppik       Osthoff      Tomassoni
Boudreau     Greiling     Lieder       Ostrom       Tompkins
Bradley      Gunther      Lindner      Otremba      Trimble
Broecker     Haas         Long         Ozment       Tuma
Brown        Hackbarth    Lourey       Paulsen      Tunheim
Carlson, L.  Harder       Luther       Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Lynch        Pellow       Van Engen
Carruthers   Hausman      Macklin      Pelowski     Vickerman
Clark        Holsten      Mahon        Perlt        Wagenius
Commers      Huntley      Mares        Peterson     Warkentin
Cooper       Jaros        Mariani      Pugh         Weaver
Daggett      Jefferson    Marko        Rest         Wejcman
Dauner       Jennings     McCollum     Rhodes       Wenzel
Davids       Johnson, A.  McElroy      Rice         Winter
Dawkins      Johnson, V.  McGuire      Rostberg     Wolf
Dehler       Kahn         Milbert      Rukavina     Worke
Delmont      Kalis        Molnau       Sarna        Workman
Dempsey      Kelley       Mulder       Schumacher   Sp.Anderson,I
Dorn         Kelso        Munger       Seagren      
Entenza      Kinkel       Murphy       Skoglund     
Erhardt      Knight       Olson, E.    Smith        

A bill for an act relating to state government; clarifying powers of the pollution control agency board and commissioner; amending Minnesota Statutes 1994, sections 116.03, as amended; and 514.673, subdivision 3; Minnesota Statutes 1995 Supplement, section 116.02, by adding subdivisions.

March 21, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2171, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2171 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 116.02, is amended by adding a subdivision to read:

Subd. 6. The agency shall make final decisions on the following matters:

(1) a petition for the preparation of an environmental assessment worksheet, if the project proposer or a person commenting on the proposal requests that the decision be made by the agency and the agency requests that it make the decision under subdivision 8;

(2) the need for an environmental impact statement following preparation of an environmental assessment worksheet under applicable rules, if:

(i) the agency has received a request for an environmental impact statement;

(ii) the project proposer or a person commenting on the proposal requests that the declaration be made by the agency and the agency requests that it make the decision under subdivision 8; or

(iii) the commissioner is recommending preparation of an environmental impact statement;

(3) the scope and adequacy of environmental impact statements;

(4) issuance, reissuance, modification, or revocation of a permit if:

(i) a variance is sought in the permit application or a contested case hearing request is pending; or

(ii) the permit applicant, the permittee, or a person commenting on the permit action requests that the decision be made by the agency and the agency requests that it make the decision under subdivision 8;

(5) final adoption or amendment of agency rules for which a public hearing is required under section 14.25 or for which the commissioner decides to proceed directly to a public hearing under section 14.14, subdivision 1;

(6) approval or denial of an application for a variance from an agency rule if:

(i) granting the variance request would change an air, soil, or water quality standard;

(ii) the commissioner has determined that granting the variance would have a significant environmental impact; or

(iii) the applicant or a person commenting on the variance request requests that the decision be made by the agency and the agency requests that it make the decision under subdivision 8; and

(7) whether to reopen, rescind, or reverse a decision of the agency.

Sec. 2. Minnesota Statutes 1995 Supplement, section 116.02, is amended by adding a subdivision to read:

Subd. 7. The commissioner may request that the agency make additional decisions or provide advice to the commissioner.

Sec. 3. Minnesota Statutes 1995 Supplement, section 116.02, is amended by adding a subdivision to read:

Subd. 8. Any other action not specifically within the authority of the commissioner shall be made by the agency if:

(1) prior to the commissioner's final decision on the action, one or more members of the agency notify the commissioner of their request that the decision be made by the agency; or

(2) any person submits a petition to the commissioner requesting that the decision be made by the agency and the commissioner grants the petition.

If the commissioner denies a petition submitted under clause (2), the commissioner shall advise the agency and the petitioner of the reasons for the denial.

Sec. 4. Minnesota Statutes 1995 Supplement, section 116.02, is amended by adding a subdivision to read:

Subd. 9. The commissioner shall inform interested persons as appropriate in public notices and other public documents of their right to request the agency to make decisions in specific matters provided in subdivision 6 and the right of agency members to request that decisions be made by the agency as provided in subdivision 8. The commissioner shall also regularly inform the agency of activities that have broad policy implications or potential environmental significance and of activities in which the public has exhibited substantial interest.

Sec. 5. Minnesota Statutes 1995 Supplement, section 116.02, is amended by adding a subdivision to read:

Subd. 10. (a) The agency must not reopen, rescind, or reverse a decision of the agency except upon:

(1) the affirmative vote of two-thirds of the agency; or

(2) a finding that there was an irregularity in a hearing related to the decision, an error of law, or a newly discovered material issue of fact.

(b) The requirements in paragraph (a) are minimum requirements and do not limit the agency's authority under sections 14.06 and 116.07, subdivision 3, to adopt rules:

(1) applying the requirement in paragraph (a), clause (1) or (2), to certain decisions of the agency; or

(2) establishing additional or more stringent requirements for reopening, rescinding, or reversing decisions of the agency.

Sec. 6. Minnesota Statutes 1994, section 116.03, as amended by Laws 1995, chapters 186, section 31, and 248, article 11, section 7, is amended to read:

116.03 [COMMISSIONER.]

Subdivision 1. (a) The office of commissioner of the pollution control agency is created and is under the supervision and control of the commissioner, who is appointed by the governor under the provisions of section 15.06.

(b) The commissioner may appoint a deputy director and an assistant commissioner and assistant commissioners who shall be in the unclassified service.

(c) The commissioner shall make all decisions on behalf of the agency that are not required to be made by the agency under section 116.02.

Subd. 2. The commissioner shall organize the agency and employ such assistants and other officers, employees and agents as the commissioner may deem necessary to discharge the functions of the commissioner's office, define the duties of such officers, employees and agents, and delegate to them any of the commissioner's powers, duties, and responsibilities, subject to the commissioner's control and under such conditions as the commissioner may prescribe. The commissioner may also contract with persons, firms, corporations, the federal government and any agency or instrumentality thereof, the water research center of the University of Minnesota or any other instrumentality of such university, for doing any of the work of the commissioner's office, and none of the provisions of chapter 16B, relating to bids, shall apply to such contracts. All personnel employed and all contracts entered into pursuant to this subdivision shall be subject to the approval of the pollution control agency. Agreements to exercise delegated powers shall be by written order filed with the secretary of state. An employee of the state commissioner of health engaged in environmental sanitation work may transfer to the pollution control agency with the approval of the commissioner. Under such a transfer the employee shall be assigned to a position of similar responsibility and pay without loss of seniority, vacation, sick leave, or other benefits under the state civil service act.

Subd. 2a. [MISSION; EFFICIENCY.] It is part of the agency's mission that within the agency's resources the commissioner and the members of the agency shall endeavor to:

(1) prevent the waste or unnecessary spending of public money;

(2) use innovative fiscal and human resource practices to manage the state's resources and operate the agency as efficiently as possible;

(3) coordinate the agency's activities wherever appropriate with the activities of other governmental agencies;

(4) use technology where appropriate to increase agency productivity, improve customer service, increase public access to information about government, and increase public participation in the business of government;

(5) utilize constructive and cooperative labor-management practices to the extent otherwise required by chapters 43A and 179A;

(6) include specific objectives in the performance report required under section 15.91 to increase the efficiency of agency operations, when appropriate; and

(7) recommend to the legislature, in the performance report of the agency required under section 15.91, appropriate changes in law necessary to carry out the mission of the agency.

Subd. 3. The commissioner of the pollution control agency is the state agent to apply for, receive, and disburse federal funds made available to the state by federal law or rules and regulations promulgated thereunder for any purpose related to the powers and duties of the pollution control agency or the commissioner. The commissioner shall comply with any and all requirements of such federal law or such rules and regulations promulgated thereunder to facilitate application for, receipt, and disbursement of such funds. All such moneys received by the commissioner shall be deposited in the state treasury and are hereby annually appropriated to the commissioner for the purposes for which they are received. None of such moneys in the state treasury shall cancel and they shall be available for expenditure in accordance with the requirements of federal law.

The provisions of section 3.3005 shall not apply to money available under the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, United States Code, title 42, sections 9601 to 9657, for which a state match is not required or for which a state match is available under the Environmental Response and Liability Act or from a political subdivision. The receipt of the money shall be reported to the legislative advisory commission.

Subd. 4. Before entering upon the duties of the office the commissioner of the pollution control agency shall take and subscribe an oath.

Subd. 5. The salary of the commissioner of the pollution control agency shall be prescribed by the governor, unless otherwise fixed by law.

Subd. 6. The term of the first director of the pollution control agency shall expire with the term of the governor expiring in January, 1971. Thereafter, the term of the commissioner shall be in conformity with the provisions of this section.

Sec. 7. Minnesota Statutes 1994, section 514.673, subdivision 3, is amended to read:

Subd. 3. [APPROVAL BY AGENCY OR PETROLEUM TANK RELEASE COMPENSATION BOARD.] (a) The commissioner may not file an environmental lien notice until the agency board for cleanup action expenses incurred under chapter 115B, or the petroleum tank release compensation board for cleanup action expenses incurred under chapter 115C, the person referred to in section 514.672, subdivision 1, and each record owner and mortgagee of the real property have been notified in writing of the commissioner's intention to file the lien notice and the requirements for filing the lien under paragraph (b) have been met.

(b) By 30 days after receiving notification from the commissioner under paragraph (a), the agency board or petroleum tank release compensation board, after notice and opportunity for the person referred to in section 514.672, subdivision 1, to appear before the appropriate board, shall approve or disapprove of the filing of the lien by the commissioner. If the appropriate board disapproves of the filing, the lien may not be filed. If the appropriate board approves of the filing or, in the case of the petroleum tank release compensation board, takes no action on the matter within the 30-day period, the commissioner may file the lien notice.

Sec. 8. [EFFECTIVE DATE.]

Sections 1 to 7 are effective June 1, 1996."

We request adoption of this report and repassage of the bill.

House Conferees: Dennis Ozment, Anthony G. "Tony" Kinkel and Jerry Dempsey.

Senate Conferees: Steven Morse, Gene Merriam and Dan Stevens.

Ozment moved that the report of the Conference Committee on H. F. No. 2171 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2171, A bill for an act relating to state government; clarifying powers of the pollution control agency board and commissioner; amending Minnesota Statutes 1994, sections 116.03, as amended; and 514.673, subdivision 3; Minnesota Statutes 1995 Supplement, section 116.02, by adding subdivisions.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 125 yeas and 8 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Orenstein    Sviggum
Anderson, R. Frerichs     Kraus        Orfield      Swenson, D.
Bakk         Garcia       Larsen       Osskopp      Swenson, H.
Bertram      Girard       Leighton     Osthoff      Sykora
Bettermann   Goodno       Leppik       Ostrom       Tomassoni
Bishop       Greenfield   Lieder       Otremba      Tompkins
Boudreau     Greiling     Lindner      Ozment       Trimble
Bradley      Gunther      Long         Paulsen      Tuma
Broecker     Haas         Lourey       Pawlenty     Tunheim
Brown        Harder       Luther       Pellow       Van Dellen
Carlson, L.  Hasskamp     Lynch        Pelowski     Van Engen
Carlson, S.  Hausman      Macklin      Perlt        Vickerman
Carruthers   Holsten      Mahon        Peterson     Wagenius
Clark        Huntley      Mares        Pugh         Warkentin
Commers      Jaros        Mariani      Rest         Weaver
Cooper       Jefferson    Marko        Rhodes       Wejcman
Daggett      Jennings     McCollum     Rice         Wenzel
Dauner       Johnson, A.  McElroy      Rostberg     Winter
Dawkins      Johnson, R.  McGuire      Rukavina     Wolf
Dehler       Johnson, V.  Milbert      Sarna        Worke
Delmont      Kahn         Molnau       Schumacher   Sp.Anderson,I
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8888

Dempsey      Kalis        Mulder       Seagren      
Dorn         Kelley       Munger       Skoglund     
Entenza      Kelso        Murphy       Smith        
Erhardt      Kinkel       Olson, E.    Solberg      
Farrell      Knoblach     Opatz        Stanek       

Anderson, B. Hackbarth    Krinkie      Onnen        
Davids       Knight       Olson, M.    Workman      

A bill for an act relating to local improvements; prohibiting fees for preparing certain reports from being based primarily on the estimated cost of improvement; amending Minnesota Statutes 1994, section 429.031, subdivision 1.

March 20, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2375, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 2375 be further amended as follows:

Page 2, line 15, after "is" insert "necessary, cost-effective, and"

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "requiring a report to show the need and cost-effectiveness of local improvements;"

We request adoption of this report and repassage of the bill.

House Conferees: Ann H. Rest, Jean Wagenius and Dan McElroy.

Senate Conferees: Ember D. Reichgott Junge, Deanna Wiener and Martha R. Robertson.

Rest moved that the report of the Conference Committee on H. F. No. 2375 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2375, A bill for an act relating to local improvements; prohibiting fees for preparing certain reports from being based primarily on the estimated cost of improvement; amending Minnesota Statutes 1994, section 429.031, subdivision 1.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knight       Olson, E.    Smith
Anderson, B. Finseth      Knoblach     Olson, M.    Stanek
Anderson, R. Frerichs     Koppendrayer Onnen        Sviggum
Bakk         Garcia       Kraus        Opatz        Swenson, D.
Bertram      Girard       Krinkie      Orenstein    Swenson, H.
Bettermann   Goodno       Larsen       Orfield      Sykora
Bishop       Greenfield   Leighton     Osskopp      Tomassoni
Boudreau     Greiling     Leppik       Osthoff      Tompkins
Bradley      Gunther      Lieder       Ostrom       Trimble
Broecker     Haas         Lindner      Otremba      Tuma
Brown        Hackbarth    Long         Ozment       Tunheim
Carlson, L.  Harder       Lourey       Paulsen      Van Dellen
Carlson, S.  Hasskamp     Luther       Pawlenty     Van Engen
Carruthers   Hausman      Lynch        Pellow       Vickerman
Clark        Holsten      Macklin      Pelowski     Wagenius
Commers      Huntley      Mahon        Perlt        Warkentin
Cooper       Jaros        Mares        Peterson     Weaver
Daggett      Jefferson    Mariani      Pugh         Wejcman
Dauner       Jennings     Marko        Rest         Wenzel
Davids       Johnson, A.  McCollum     Rhodes       Winter
Dawkins      Johnson, R.  McElroy      Rice         Wolf
Dehler       Johnson, V.  McGuire      Rostberg     Worke
Delmont      Kahn         Milbert      Rukavina     Workman
Dempsey      Kalis        Molnau       Sarna        Sp.Anderson,I
Dorn         Kelley       Mulder       Schumacher   
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     

A bill for an act relating to game and fish; modifying restrictions for nonresident fish houses; amending Minnesota Statutes 1994, section 97C.355, subdivision 6.

March 19, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2580, report that we have agreed upon the items in dispute and recommend as follows:

That the House concur in the Senate amendments.

We request adoption of this report and repassage of the bill.

House Conferees: Stephen G. Wenzel, John J. Sarna and Richard Pellow.

Senate Conferees: Don Samuelson, Dallas C. Sams and Dan Stevens.

Wenzel moved that the report of the Conference Committee on H. F. No. 2580 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2580, A bill for an act relating to game and fish; modifying restrictions for nonresident fish houses; amending Minnesota Statutes 1994, section 97C.355, subdivision 6.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage 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      Knight       Olson, E.    Smith
Anderson, B. Finseth      Knoblach     Olson, M.    Solberg
Anderson, R. Frerichs     Koppendrayer Onnen        Stanek
Bakk         Garcia       Kraus        Opatz        Sviggum
Bertram      Girard       Krinkie      Orenstein    Swenson, D.
Bettermann   Goodno       Larsen       Orfield      Swenson, H.
Bishop       Greenfield   Leighton     Osskopp      Sykora
Boudreau     Greiling     Leppik       Osthoff      Tomassoni
Bradley      Gunther      Lieder       Ostrom       Tompkins
Broecker     Haas         Lindner      Otremba      Trimble
Brown        Hackbarth    Long         Ozment       Tuma
Carlson, L.  Harder       Lourey       Paulsen      Tunheim
Carlson, S.  Hasskamp     Luther       Pawlenty     Van Dellen
Carruthers   Hausman      Lynch        Pellow       Van Engen
Clark        Holsten      Macklin      Pelowski     Vickerman
Commers      Huntley      Mahon        Perlt        Wagenius
Cooper       Jaros        Mares        Peterson     Warkentin
Daggett      Jefferson    Mariani      Pugh         Weaver
Dauner       Jennings     Marko        Rest         Wejcman
Davids       Johnson, A.  McCollum     Rhodes       Wenzel
Dawkins      Johnson, R.  McElroy      Rice         Winter
Dehler       Johnson, V.  McGuire      Rostberg     Wolf
Delmont      Kahn         Milbert      Rukavina     Worke
Dempsey      Kalis        Molnau       Sarna        Workman
Dorn         Kelley       Mulder       Schumacher   Sp.Anderson,I
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     

Daggett was excused for the remainder of today's session.

A bill for an act relating to consumer protection; providing for the licensing and regulation of pawnbrokers; providing penalties; amending Minnesota Statutes 1994, sections 471.924, subdivision 1; 471.925; and 471.927; proposing coding for new law as Minnesota Statutes, chapter 325J; repealing Minnesota Statutes 1994, section 609.81.

March 21, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2752, report that we have agreed upon the items in dispute and recommend as follows:

That the House concur in the Senate amendments and that H. F. No. 2752 be further amended as follows:

Page 6, line 7, of the Rule 49 amendment, delete "be charged" and insert "exceed $20"

We request adoption of this report and repassage of the bill.

House Conferees: Darlene Luther and Walter E. Perlt.

Senate Conferees: Leonard R. Price, Ember D. Reichgott Junge and Randy C. Kelly.

Perlt moved that the report of the Conference Committee on H. F. No. 2752 be adopted and that the bill be repassed as amended by the Conference Committee.

Pellow moved that the House refuse to adopt the Conference Committee report on H. F. No. 2752, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Pellow motion and the roll was called. There were 61 yeas and 71 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Osthoff      Tuma
Anderson, B. Girard       Larsen       Ozment       Van Dellen
Bettermann   Goodno       Leppik       Paulsen      Van Engen
Boudreau     Gunther      Lindner      Pawlenty     Vickerman
Bradley      Haas         Lynch        Pellow       Warkentin
Broecker     Hackbarth    Macklin      Rhodes       Weaver
Carlson, S.  Harder       Mares        Rostberg     Wolf
Commers      Holsten      McElroy      Seagren      Worke
Davids       Johnson, V.  Molnau       Smith        Workman 
Dehler       Knight       Mulder       Sviggum      
Dempsey      Knoblach     Olson, M.    Swenson, D.  
Erhardt      Koppendrayer Onnen        Swenson, H.  
Finseth      Kraus        Osskopp      Sykora       

Anderson, R. Garcia       Kinkel       Opatz        Solberg
Bakk         Greenfield   Leighton     Orenstein    Stanek
Bertram      Greiling     Lieder       Orfield      Tomassoni
Bishop       Hasskamp     Long         Ostrom       Tompkins
Brown        Hausman      Lourey       Otremba      Trimble
Carlson, L.  Huntley      Luther       Pelowski     Tunheim
Carruthers   Jaros        Mahon        Perlt        Wagenius
Clark        Jefferson    Mariani      Peterson     Wejcman
Cooper       Jennings     Marko        Pugh         Wenzel
Dauner       Johnson, A.  McCollum     Rest         Winter
Dawkins      Johnson, R.  McGuire      Rice         Sp.Anderson,I
Delmont      Kahn         Milbert      Rukavina     
Dorn         Kalis        Munger       Sarna        
Entenza      Kelley       Murphy       Schumacher   
Farrell      Kelso        Olson, E.    Skoglund     

The question recurred on the Perlt motion that the report of the Conference Committee on H. F. No. 2752 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2752, A bill for an act relating to consumer protection; providing for the licensing and regulation of pawnbrokers; providing penalties; amending Minnesota Statutes 1994, sections 471.924, subdivision 1; 471.925; and 471.927; proposing coding for new law as Minnesota Statutes, chapter 325J; repealing Minnesota Statutes 1994, section 609.81.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 119 yeas and 13 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Onnen        Solberg
Anderson, R. Frerichs     Kraus        Opatz        Stanek
Bakk         Garcia       Larsen       Orenstein    Sviggum
Bertram      Girard       Leighton     Orfield      Swenson, D.
Bettermann   Goodno       Leppik       Osskopp      Swenson, H.
Bishop       Greenfield   Lieder       Osthoff      Sykora
Boudreau     Greiling     Long         Ostrom       Tomassoni
Bradley      Haas         Lourey       Otremba      Tompkins
Broecker     Harder       Luther       Paulsen      Trimble
Brown        Hasskamp     Lynch        Pawlenty     Tuma
Carlson, L.  Hausman      Macklin      Pelowski     Tunheim
Carlson, S.  Holsten      Mahon        Perlt        Van Dellen
Carruthers   Huntley      Mares        Peterson     Van Engen
Clark        Jaros        Mariani      Pugh         Vickerman
Commers      Jefferson    Marko        Rest         Wagenius
Cooper       Jennings     McCollum     Rhodes       Warkentin
Dauner       Johnson, A.  McElroy      Rice         Weaver
Dawkins      Johnson, R.  McGuire      Rostberg     Wejcman
Delmont      Johnson, V.  Milbert      Rukavina     Wenzel
Dempsey      Kahn         Molnau       Sarna        Winter
Dorn         Kalis        Mulder       Schumacher   Wolf
Entenza      Kelley       Munger       Seagren      Worke
Erhardt      Kelso        Murphy       Skoglund     Sp.Anderson,I
Farrell      Kinkel       Olson, E.    Smith        

Anderson, B. Gunther      Koppendrayer Olson, M.    Workman 
Davids       Hackbarth    Krinkie      Ozment       
Dehler       Knight       Lindner      Pellow       

On the motion of Carruthers and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams       Farrell      Kinkel       Munger       Smith
Anderson, B. Finseth      Knight       Murphy       Solberg
Anderson, R. Frerichs     Knoblach     Olson, E.    Stanek
Bakk         Garcia       Koppendrayer Olson, M.    Sviggum
Bertram      Girard       Kraus        Onnen        Swenson, D.
Bettermann   Goodno       Krinkie      Opatz        Swenson, H.
Bishop       Greenfield   Larsen       Orenstein    Sykora
Boudreau     Greiling     Leighton     Orfield      Tomassoni
Bradley      Gunther      Leppik       Osskopp      Tompkins
Broecker     Haas         Lieder       Ostrom       Trimble
Brown        Hackbarth    Lindner      Otremba      Tuma
Carlson, L.  Harder       Long         Ozment       Tunheim
Carlson, S.  Hasskamp     Lourey       Pawlenty     Van Dellen
Carruthers   Hausman      Luther       Pellow       Van Engen
Clark        Holsten      Lynch        Pelowski     Vickerman
Commers      Huntley      Macklin      Perlt        Wagenius
Cooper       Jaros        Mahon        Peterson     Warkentin
Dauner       Jefferson    Mares        Pugh         Weaver
Davids       Jennings     Mariani      Rest         Wejcman
Dawkins      Johnson, A.  Marko        Rhodes       Wenzel
Dehler       Johnson, R.  McCollum     Rostberg     Winter
Delmont      Johnson, V.  McElroy      Rukavina     Wolf
Dempsey      Kahn         McGuire      Sarna        Worke
Dorn         Kalis        Milbert      Schumacher   Workman
Entenza      Kelley       Molnau       Seagren      Sp.Anderson,I
Erhardt      Kelso        Mulder       Skoglund     

Carruthers moved that the vote whereby H. F. No. 220, as amended by the Senate, was not passed on Friday, March 22, 1996, be now reconsidered.

A roll call was requested and properly seconded.

The question was taken on the Carruthers motion and the roll was called. There were 67 yeas and 65 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       Kinkel       Olson, E.    Sarna
Bakk         Greenfield   Leighton     Opatz        Schumacher
Bertram      Greiling     Lieder       Orenstein    Skoglund
Brown        Hasskamp     Long         Orfield      Solberg
Carlson, L.  Hausman      Lourey       Osthoff      Tomassoni
Carruthers   Huntley      Luther       Ostrom       Trimble
Clark        Jaros        Mahon        Otremba      Tunheim
Cooper       Jefferson    Mariani      Pelowski     Wagenius
Dauner       Jennings     Marko        Perlt        Wejcman
Dawkins      Johnson, A.  McCollum     Peterson     Winter
Delmont      Johnson, R.  McGuire      Pugh         Sp.Anderson,I
Dorn         Kahn         Milbert      Rest         
Entenza      Kelley       Munger       Rice         
Farrell      Kelso        Murphy       Rukavina     

Abrams       Finseth      Koppendrayer Onnen        Swenson, H.
Anderson, B. Frerichs     Kraus        Osskopp      Sykora
Bettermann   Girard       Krinkie      Ozment       Tompkins
Bishop       Goodno       Larsen       Paulsen      Tuma
Boudreau     Gunther      Leppik       Pawlenty     Van Dellen
Bradley      Haas         Lindner      Pellow       Van Engen
Broecker     Hackbarth    Lynch        Rhodes       Vickerman
Carlson, S.  Harder       Macklin      Rostberg     Warkentin
Commers      Holsten      Mares        Seagren      Weaver
Davids       Johnson, V.  McElroy      Smith        Wenzel
Dehler       Kalis        Molnau       Stanek       Wolf
Dempsey      Knight       Mulder       Sviggum      Worke
Erhardt      Knoblach     Olson, M.    Swenson, D.  Workman 

Carruthers moved to lay H. F. No. 220, as amended by the Senate, on the table.

A roll call was requested and properly seconded.

The question was taken on the Carruthers motion and the roll was called. There were 68 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       KelsoMurphyRukavina
Bakk         Greenfield   KinkelSarna
Bertram      Greiling     LeightonSchumacher
Brown        Hasskamp     LiederSkoglund
Carlson, L.  Hausman      LongSolberg
Carruthers   Huntley      LoureyTomassoni
Clark        Jaros        LutherTrimble
Cooper       Jefferson    MahonTunheim
Dauner       Jennings     MarianiWagenius
Dawkins      Johnson, A.  MarkoWejcman
Delmont      Johnson, R.  McCollumWinter
Dorn         Kahn         McGuireSp.Anderson,I
Entenza      Kalis        Milbert
Farrell      Kelley       Munger
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
Olson, E.    
Opatz        
Orenstein    
Orfield      
Osthoff      
Ostrom       
Otremba      
Pelowski     
Perlt        
Peterson     
Pugh         
Rest         
Rice         

Abrams       Finseth      Kraus        Osskopp      Sykora
Anderson, B. Frerichs     Krinkie      Ozment       Tompkins
Bettermann   Girard       Larsen       Paulsen      Tuma
Bishop       Goodno       Leppik       Pawlenty     Van Dellen
Boudreau     Gunther      Lindner      Pellow       Van Engen
Bradley      Haas         Lynch        Rhodes       Vickerman
Broecker     Hackbarth    Macklin      Rostberg     Warkentin
Carlson, S.  Harder       Mares        Seagren      Weaver
Commers      Holsten      McElroy      Smith        Wenzel
Davids       Johnson, V.  Molnau       Stanek       Wolf
Dehler       Knight       Mulder       Sviggum      Worke
Dempsey      Knoblach     Olson, M.    Swenson, D.  Workman 
Erhardt      Koppendrayer Onnen        Swenson, H.  
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8894

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 637, A bill for an act relating to taxation; property; allowing for a market value exclusion for electric power generation facilities based on facility efficiency; providing for an analysis of utility taxation; proposing coding for new law in Minnesota Statutes, chapter 272.

Patrick E. Flahaven, Secretary of the Senate

Jennings moved that the House refuse to concur in the Senate amendments to H. F. No. 637, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses. The motion prevailed.

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendment the concurrence of the House is respectfully requested:

H. F. No. 2284, A bill for an act relating to family law; regulating reductions in monthly payments for overpayment of support or maintenance; requiring the commissioner of human services to present to the legislature a proposal regarding child support payments; amending Minnesota Statutes 1995 Supplement, section 518.611, subdivision 2.

Patrick E. Flahaven, Secretary of the Senate

Johnson, A., moved that the House concur in the Senate amendments to H. F. No. 2284 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 2284, A bill for an act relating to family law; regulating reductions in monthly payments for overpayment of support or maintenance; amending Minnesota Statutes 1995 Supplement, section 518.611, subdivision 2.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, M.    Solberg
Anderson, B. Frerichs     Koppendrayer Onnen        Stanek
Anderson, R. Garcia       Kraus        Opatz        Sviggum
Bakk         Girard       Krinkie      Orenstein    Swenson, D.
Bertram      Goodno       Larsen       Orfield      Swenson, H.
Bettermann   Greenfield   Leighton     Osskopp      Sykora
Bishop       Greiling     Leppik       Osthoff      Tomassoni
Boudreau     Gunther      Lieder       Ostrom       Tompkins
Bradley      Haas         Lindner      Otremba      Trimble
Broecker     Hackbarth    Long         Ozment       Tuma
Brown        Harder       Lourey       Paulsen      Tunheim
Carlson, L.  Hasskamp     Luther       Pawlenty     Van Dellen
Carlson, S.  Hausman      Lynch        Pellow       Van Engen
Carruthers   Holsten      Macklin      Pelowski     Vickerman
Clark        Huntley      Mahon        Perlt        Wagenius
Commers      Jaros        Mares        Peterson     Warkentin
Cooper       Jefferson    Mariani      Pugh         Weaver
Dauner       Jennings     Marko        Rest         Wejcman
Davids       Johnson, A.  McCollum     Rhodes       Wenzel
Dawkins      Johnson, R.  McElroy      Rice         Winter
Dehler       Johnson, V.  McGuire      Rostberg     Wolf
Delmont      Kahn         Milbert      Rukavina     Worke
Dempsey      Kalis        Molnau       Sarna        Workman
Dorn         Kelley       Mulder       Schumacher   Sp.Anderson,I
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     
Farrell      Knight       Olson, E.    Smith        

Carruthers moved that the call of the House be suspended. The motion prevailed and it was so ordered.

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 2167.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to the organization and operation of state government; appropriating money and modifying provisions relating to the environment, natural resources, and agriculture; supplementing, reducing, and modifying earlier appropriations; establishing a board; establishing an off-highway vehicle recreation area; authorizing and modifying state trails; providing for reports and fees; amending Minnesota Statutes 1994, sections 17.117, subdivision 3; 17B.15, subdivision 1; 18E.02, subdivision 5; 85.015, by adding a subdivision; 85.052, subdivision 3; 85.054, by adding a subdivision; 85.055, subdivision 1; 94.16, subdivision 3; and 97A.028, subdivision 3; Minnesota Statutes 1995 Supplement, sections 85.015, subdivision 7; 103F.725, subdivision 1a; and 446A.07, subdivision 8; Laws 1995, chapters 207, article 1, section 2, subdivision 7; 220, section 19, subdivisions 4, 6, 10, and 19; and 254, article 1, section 93; proposing coding for new law in Minnesota Statutes, chapters 17 and 21; repealing Laws 1995, chapter 224, section 18, subdivision 4.

March 20, 1996

The Honorable Allan H. Spear

President of the Senate

The Honorable Irv Anderson

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2167, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 2167 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.]

The sums in the columns headed "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified to be available for the fiscal years indicated for each purpose. Amounts to be reduced are designated by parentheses. Fiscal year 1996 appropriations are available during the biennium ending June 30, 1997.

1996 1997 TOTAL

General $1,858,000 $1,152,000$3,010,000

Solid Waste 150,000 629,000 779,000

Minnesota Future Resources 3,258,000 -0- 3,258,000

Environment and Natural Resources Trust 1,630,000 -0- 1,630,000

Natural Resources 1,350,000 -0- 1,350,000

Taconite Environmental Protection 750,000 -0- 750,000

Permanent University (250,000) (250,000)

TOTAL 8,996,000 1,531,00010,527,000

APPROPRIATIONS

Available for the Year

Ending June 30

1996 1997

Sec. 2. POLLUTION CONTROL AGENCY $ 309,000$ 264,000

Summary by Fund

General 250,000 -0-

Solid Waste59,000 264,000

$200,000 in fiscal year 1996 is for a detailed assessment of the water quality point source activities as detailed in the 1995 blue ribbon task force report to the legislature.

$50,000 in fiscal year 1996 is for legal defense of a lawsuit relating to the expansion of the Potlatch facility in the city of Cook.

$59,000 in fiscal year 1996 and $264,000 in fiscal year 1997 are from the solid waste fund for insurance claims settlement and recovery associated with landfills in the landfill cleanup program under Minnesota Statutes, chapter 115B.

Sec. 3. NATURAL RESOURCES 2,693,000 802,000

Summary by Fund

General 593,000 1,052,000

Natural Resources 1,350,000 -0-

Taconite Environmental

Protection750,000 -0-

Permanent University -0- (250,000)

$20,000 in fiscal year 1997 is for posting of state forest land boundaries in the Richard J. Dorer Memorial Hardwood state forest. This appropriation is to supplement, and not supplant, existing posting activities.

$250,000 in fiscal year 1996 is for grants to the counties of Aitkin, Becker, Clearwater, Hubbard, and St. Louis for reforestation, timber stand improvements, forest road reconstruction and maintenance, aerial photography, and new forest inventories in areas damaged by windstorms in July 1995. Of this amount, $4,200 is for Aitkin county, $113,300 is for Becker county, $83,800 is for Clearwater county, $7,000 is for Hubbard county, and $41,700 is for St. Louis county.

$240,000 in fiscal year 1996 is for unanticipated costs the department incurred for the assessment of timber damage, cleanup, reconstruction, replacement of damaged natural resources, facilities, and roads, removal of damaged trees and other storm debris, and the cleanup and repair of state park facilities related to July 1995 storm damage.

$250,000 in fiscal year 1997 is for minerals resources management. This appropriation is added to the appropriation in Laws 1995, chapter 220, section 5, subdivision 2.

$350,000 in fiscal year 1997 is for parks and recreation management. The department shall implement an electronic state park permit tracking system in fiscal year 1997 in accordance with the plan prepared under Laws 1995, chapter 220, section 5, subdivision 5. The legislature intends that the state park permit fee increases in section 38 and increased camping fees will raise $325,000 by June 30, 1997.

$75,000 in fiscal year 1996 is for a grant to Morrison county to address the problem of water flow along the easterly shoreline of the Mississippi river near Highway 10 in Morrison county. This funding is to be utilized by the St. Anthony Falls laboratory of the University of Minnesota to conduct a comprehensive analysis of what is causing the accelerated sedimentation in the river, and how the problem can best be resolved.

$28,000 in fiscal year 1996 is for a grant to the city of Warren in Marshall county to construct two dams on the Snake river within the city of Warren in Marshall county.

$150,000 in fiscal year 1997 is for maintenance of state trails.

The commissioner of natural resources must complete a long range plan, to the year 2025, that identifies trail maintenance needs and proposed costs for the statewide trail system under Minnesota Statutes, section 85.015.

$1,350,000 in fiscal year 1996 is from the all-terrain vehicle account in the natural resources fund to plan, acquire, develop, and operate the Iron Range off-highway vehicle recreation area and to conduct the feasibility study, to be available until June 30, 1998. This appropriation is contingent on the city of Gilbert entering into an agreement to lease the city-owned land within the Iron Range off-highway vehicle recreation area to the state for $1 per year. The lease term must be at least ten years, and notwithstanding Minnesota Statutes, section 16B.24, subdivision 6, paragraph (a), may be up to 20 years.

The commissioner of finance shall transfer $675,000 from the off-road vehicle account in the natural resources fund to the all-terrain vehicle account in the natural resources fund, in one or more installments, before July 1, 1998.

The commissioner of finance shall transfer $135,000 from the off-highway motorcycle account in the natural resources fund to the all-terrain vehicle account in the natural resources fund, in one or more installments, before July 1, 1998.

$750,000 in fiscal year 1996 is from the taconite environmental protection fund to acquire and develop the Iron Range off-highway vehicle recreation area.

The legislature hereby approves the final plan for the integrated resource management pilot project required in Laws 1995, chapter 220, section 5, subdivision 10.

$262,000 in fiscal year 1997 is to partially restore a program reduction made to the administrative, regional, and support functions of the department. This appropriation is added to the appropriation in Laws 1995, chapter 220, section 5, subdivision 9.

$20,000 in fiscal year 1997 is for preparation of recommendations on the reorganization of state and local entities that protect and manage state water resources.

Sec. 4. AGRICULTURE 670,000

$20,000 in fiscal year 1996 is for purposes of the Minnesota dairy producers board established in section 13. Upon request of the board, the commissioner shall release money for appropriate expenditures of the board.

$50,000 in fiscal year 1996 is for a grant to the Passing on the Farm Center under Minnesota Statutes, section 17.985. This appropriation is available only to the extent it is matched by nonstate money.

$75,000 in fiscal year 1996 is for a grant to the central lakes agricultural center for continuation and expansion of a research project on potato blight. This appropriation is available to the extent that matching money in the amount of $1 for every $2 of state money is provided by nonstate sources.

$150,000 in fiscal year 1996 is for grants to establish a one-on-one educational delivery team system to provide appropriate new technologies applicable to all sizes of dairy farms to farmers to enhance the financial success and long-term sustainability of dairy farms in the state. The teams must consist of farm business management instructors, dairy extension specialists, and dairy industry partners to deliver the informational and technological services. Not later than January 15, 1997, the commissioner shall report to the agriculture and environment and natural resources finance committees of the house of representatives and the agriculture and rural development committee and the finance division of the environmental and natural resources committee of the senate on the program under this paragraph and the activities and the findings of the dairy producers board.

$75,000 in fiscal year 1996 is for a grant to a joint powers board formed for the purpose of beaver damage control that includes at least ten of the following counties: Beltrami, Clay, Clearwater, Marshall, Pennington, Polk, Red Lake, Mahnomen, Norman, Becker, Hubbard, Itasca, Kittson, Koochiching, St. Louis, Roseau, and Lake of the Woods. The grant must be matched by at least $75,000 from the joint powers board. The joint powers board may enter into an agreement with the Red Lake Band of Chippewa Indians for participation by the band in the joint powers board's beaver damage control program.

$25,000 in fiscal year 1996 is for a contract with the Wabasha county extension service for a pilot project that will assist retiring farmers in transferring their farms to beginning farmers and provide educational and social support necessary for the transfer. The project must bring together retiring farmers and prospective farmers; help the parties negotiate agreements; monitor the progress of matches; coordinate mentors to provide beginning farmers with expertise; and develop and implement an educational farm management and peer support program for beginning farmers. The extension service shall coordinate with other local and statewide agricultural interest groups.

$200,000 in fiscal year 1996 is for research and development of best management practices for the production of alfalfa, development of alfalfa varieties that possess optimal energy and protein-value characteristics, and the development of value-added alfalfa products. The commissioner of agriculture shall accomplish the purposes of this appropriation through a collaborative effort that includes the participation of the University of Minnesota, the Agricultural Utilization Research Institute and other appropriate public and private organizations.

$75,000 in fiscal year 1996 is for development and promotion of integrated pest management in an urban environment. The urban integrated pest management development and promotion program must be coordinated with metropolitan state university.

Sec. 5. OFFICE OF STRATEGIC AND LONG-RANGE PLANNING20,000

$20,000 in fiscal year 1996 is for a study by the environmental quality board of the issue of environmental justice, as the term is defined by the United States Environmental Protection Agency and as described in Executive Order No. 12898, issued February 11, 1994. As part of the study, the board must consult with the Asian-Pacific Minnesotans council, the council on Black Minnesotans, the Indian affairs council, the Spanish-speaking affairs council, the attorney general, the departments of human rights, trade and economic development, health, natural resources, and agriculture, the pollution control agency, and appropriate business and labor groups. By January 1, 1997, the board must report on the study to the senate and house of representatives environment and natural resources committees. The report must address whether any environmental justice concerns exist in the state and what, if any, legislative actions should be taken to address any identified concerns.

Sec. 6. BOARD OF WATER AND SOIL RESOURCES 125,000

$125,000 in fiscal year 1996 is for a grant to the Minnesota river basin joint powers board for projects in the Minnesota river basin, which may include development of a recreation plan. This appropriation is contingent on the joint powers board providing a $75,000 match.

Sec. 7. OFFICE OF ENVIRONMENTAL ASSISTANCE 100,000

$100,000 in fiscal year 1997 is for transfer to the attorney general to assist local governments in dealing with legal issues that arise in the course of implementing state solid waste programs, and to assist local governments in the defense of selected lawsuits challenging local government implementation of state solid waste programs. The attorney general shall assign at least one full-time attorney to provide assistance under this program.

Sec. 8. MINNESOTA RESOURCES

Subdivision 1. Total Appropriation 4,888,000

Summary by Fund

Minnesota Future Resources 3,258,000

Environment and Natural Resources Trust1,630,000

Unless otherwise provided, the amounts in this section are available until December 31, 1997, when projects must be completed and final products delivered.

Subd. 2. Definitions

(a) "Future resource fund" means the Minnesota future resources fund in Minnesota Statutes, section 116P.l3

(b) "Trust Fund" means the Minnesota environment and natural resources trust fund in Minnesota Statutes, section 116P.02, subdivision 6.

Subd. 3. Parks and Trails

(a) Metropolitan Regional Park System 1,000,000

This appropriation is from the future resources fund for payment by the commissioner of natural resources to the metropolitan council for subgrants to rehabilitate, develop, acquire, and retrofit the metropolitan regional park system consistent with the metropolitan council regional recreation open space capital improvement program.

This appropriation may be used for the purchase of homes only if the purchases are expressly included in the work program approved by the legislative commission on Minnesota resources.

(b) State Park and Recreation Area Acquisition 1,000,000

This appropriation is from the trust fund to the commissioner of natural resources for acquisition of land within the statutory boundaries of state parks and recreation areas.

(c) Local Grants 895,000

This appropriation is from the future resources fund to the commissioner of natural resources to provide matching grants to local units of government for local park and recreation areas; trail linkages between communities, trails, and parks; and at least $100,000 for the conservation partners program as provided in Laws 1995, chapter 220, section 19, subdivision 4, paragraph (e). In addition to the required work program, grants may not be approved until grant proposals to be funded have been submitted to the legislative commission on Minnesota resources, and the commission has either made a recommendation or allowed 60 days to pass

without making a recommendation. The above appropriations are available half for the seven-county metropolitan area and half for outside the metropolitan area. For the purposes of this paragraph, match includes nonstate contributions in either cash or in-kind.

(d) Chippewa County Regional Trail 410,000

This appropriation is to the commissioner of natural resources from the future resources fund for a grant to the city of Montevideo for acquisition and development of the Chippewa county regional trail.

Subd. 4. Urban Natural Resources

Greenway Corridors and Natural Areas Project 50,000

This appropriation is to the commissioner of natural resources from the future resources fund, to be administered through region six, for the greenway corridors and natural areas project. The appropriation must be used to develop a strategy to protect and manage greenway corridors and significant natural areas in the seven-county metropolitan area.

Subd. 5. Management Approaches

Upper Mississippi River Assessment Project 57,000

This appropriation is from the future resources fund to the commissioner of natural resources to assist the evaluation of the economic and environmental sustainability of the upper Mississippi river.

Subd. 6. Natural Resource Data

(a) Public Internet Access to Data and Information 360,000

This appropriation is from the future resources fund to the commissioner of natural resources for a joint project with the pollution control agency to provide public access via the internet to natural resource, environmental, and ecosystem data and information.

(b) Assessment of Wetland Regulations 15,000

This appropriation is from the future resources fund to the board of soil and water resources, to be available until June 30, 1997, for a contract to assess the economic impact of wetland regulations on property values, in connection with a study by the wetland heritage advisory committee of the issue of compensation to landowners for costs, including reduced property values, resulting from regulation under state law of draining and filling of wetlands. The wetland heritage advisory committee shall conduct the study in consultation with the attorney general and representatives of property rights groups and taxpayers groups. The board of water and soil resources shall report on the study by November 1, 1996, to the chairs of the senate committees on agriculture and rural development and

environment and natural resources, the finance division of the senate committee on environment and natural resources, and the house committees on environment and natural resources, agriculture, and environment and natural resources finance. The report must include recommendations for legislation to address weaknesses identified.

Subd. 7. Wildlife

(a) RIM - Accelerate Critical Habitat Match Program 750,000

$630,000 of this appropriation is from the environment and natural resources trust fund and $120,000 is from the future resources fund to the commissioner of natural resources for activities authorized by Minnesota Statutes, section 84.943. Projects must occur in both urban and rural areas.

(b) Investigation of deformed frogs in Minnesota 151,000

This appropriation is from the future resources fund to the commissioner of the pollution control agency to investigate the health of frog populations and evaluate the causes of frog deformities.

$28,000 of this appropriation is for a grant to the Center for Global Environmental Education at Hamline University to be used to work with schools and other organizations, including the study of frogs as environmental indicators.

(c) Niemackl Watershed Improvement 200,000

This appropriation is from the future resources fund to the commissioner of natural resources to continue the restoration of the Niemackl watershed by improvement of water quality, flood reduction, fish and wildlife habitat, and recreation through citizen participation with federal, state and local governments, and nongovernment agencies.

Subd. 8. Project Requirements

It is a condition of acceptance of the appropriations in this section that any agency or entity receiving the appropriation must comply with Minnesota Statutes, chapter 116P, and Laws 1995, chapter 220, section 19, subdivisions 17, 18, and 20.

Subd. 9. Carryforward

The availability of the appropriations for the following projects is extended to December 31, 1997, when projects must be completed and final products delivered: Laws 1995, chapter 220, section 19, subdivision 5, paragraph (g), mercury deposition and lake quality trends; Laws 1994, chapter 632, article 2, section 6, Silver Bay harbor; and Laws 1993, chapter 172, section 14, subdivision 10, paragraph (o), Lake Superior safe harbors-continuation.

Sec. 9. UNIVERSITY OF MINNESOTA 200,000

$50,000 in fiscal year 1996 is for funding of continued research and development on improved turf grasses to be produced in Minnesota. The agronomy department shall continue its collaboration with turf seed-producing and seed-marketing companies in the state.

$150,000 in fiscal year 1996 is for the Minnesota institute for sustainable agriculture for the purposes of section 11, including the establishment of a pilot regional agricultural sustainable development center. By February 15, 1997, the institute must report to the senate committee on agriculture and rural development and the finance division of the environment and natural resources committee, and the house of representatives committees on agriculture and environment and natural resources finance on the development of the pilot center. The report must include an analysis of nonstate financing sources that may be available to match state appropriations for the program in future years.

Sec. 10. ATTORNEY GENERAL 91,000 365,000

This appropriation is from the solid waste fund for insurance claims settlement and recovery associated with landfills in the landfill cleanup program under Minnesota Statutes, chapter 115B.

Sec. 11. [17.1161] [SUSTAINABLE DEVELOPMENT OF MINNESOTA AGRICULTURE PROGRAM.]

Subdivision 1. [ESTABLISHMENT; FRAMEWORK.] The Minnesota institute for sustainable agriculture shall establish a framework for participatory problem-solving in local communities throughout rural Minnesota that will strengthen the connection between local communities, regions, and the land-grant university; invest research, education, and outreach dollars to meet agreed-upon local and regional needs; and foster the development of integrated agricultural systems that are profitable, enhance environmental quality, and support rural communities. The framework must include regional, community-controlled agricultural sustainable development centers located at University of Minnesota regional experiment stations. At each center, the Minnesota institute for sustainable agriculture shall facilitate the development of a leadership team comprised of farmers, researchers, public agencies, and other local community representatives to identify problems, chart trends in problems over time, and develop an understanding of the agricultural system as a whole, common goals for development of the system, and five-year action plans to address those goals. The Minnesota institute for sustainable agriculture shall appoint a statewide oversight group of persons with a thorough knowledge of agriculture-related issues, including farmers' organizations, commodity groups, rural economic development groups, the department of agriculture and other public agencies, academic personnel, the agricultural utilization research institute, the Minnesota extension service, and representatives from each regional leadership team. The oversight group shall review and comment on the regional centers' action plans and integrate them into a comprehensive agenda for long-term basic and applied research, education, and outreach activities. The oversight group shall use this agenda to make recommendations on the allocation of funds for regional or statewide use. The Minnesota institute for sustainable agriculture board of directors shall review and give final approval of the allocation of funds after consultation with the dean of the college of agricultural, food, and environmental sciences at the University of Minnesota.

Subd. 2. [PROGRAM AREAS.] Long-term research and education activities must be focused in four program areas:

(1) sustainable cropping systems;

(2) development of markets and agriculture-related businesses;

(3) sustainable livestock systems; and

(4) intergenerational transfer in agriculture.

Sec. 12. Minnesota Statutes 1994, section 17.117, subdivision 3, is amended to read:

Subd. 3. [APPROPRIATIONS.] Up to $20,000,000 $40,000,000 of the balance in the water pollution control revolving fund in section 446A.07, as determined by the public facilities authority, is appropriated to the commissioner for the establishment of this program.

Sec. 13. [17.76] [MINNESOTA DAIRY PRODUCERS BOARD.]

Subdivision 1. [ESTABLISHMENT; COMPOSITION; OFFICERS.] (a) The Minnesota dairy producers board consists of 17 members. Fourteen of the members must be eligible family dairy producers. Three of the members must represent food consumer groups. For purposes of this section, "eligible family dairy producer" means a natural person who daily manages and operates a dairy farm owned by the person. "Eligible family dairy producer" does not include a person who is currently an employee of or a member of the board of directors of an organization involved in milk processing or dairy marketing.

(b) The board shall elect from among its members a chair and other appropriate officers.

Subd. 2. [APPOINTMENT; TERMS; COMPENSATION.] (a) Two members of the board shall be appointed by each of seven organizations representing agriculture in Minnesota. The organizations are:

Minnesota Farms Union;

National Farmers Organization;

Farmers Union Milk Marketing Cooperative;

Minnesota Milk Producers;

Sustainable Farming Association of Minnesota;

Minnesota Farm Bureau; and

Minnesota COACT.

One member of the board shall be appointed by each of three organizations representing consumers in Minnesota. The organizations are:

Minnesota Food Association;

Minnesota Senior Federation; and

Minnesota COACT.

To the extent practicable, the members must be selected to represent the broad diversity of Minnesota's dairy producers.

(b) The terms and compensation of members and reimbursement for their expenses is governed by section 15.059.

Subd. 3. [DUTIES.] (a) The board shall monitor economic aspects of the dairy production, processing, and marketing process including:

(1) the movement of milk by processors;

(2) price setting at the Green Bay, Wisconsin, cheese exchange;

(3) processor pricing schemes;

(4) producer checkoffs and the use of checkoff funds;

(5) federal and state pricing policy; and

(6) other activities that affect the farm gate price of raw milk.

(b) The board shall regularly educate producers, processors, consumers, and policymakers about the reasons for inadequate raw milk prices.

(c) The board shall conduct quarterly surveys of dairy producers to identify problems created by milk prices that do not provide a fair return on the investment of producers. The board must compile the information from these surveys and recommend solutions to producers.

(d) The board shall determine dairy production costs in each county through periodic surveys and from local organizations of producers.

(e) The board shall serves as an advocate for dairy producers in assuring that members of cooperatives are awarded protections similar to the rights of members of cooperative electric associations under section 216B.027.

Sec. 14. Minnesota Statutes 1994, section 17B.15, subdivision 1, is amended to read:

Subdivision 1. [ADMINISTRATION; APPROPRIATION.] The fees for inspection and weighing shall be fixed by the commissioner and be a lien upon the grain. The commissioner shall set fees for all inspection and weighing in an amount adequate to pay the expenses of carrying out and enforcing the purposes of sections 17B.01 to 17B.23, including the portion of general support costs and statewide indirect costs of the agency attributable to that function, with a reserve sufficient for up to six months. The commissioner shall review the fee schedule twice each year. Fee adjustments are not subject to chapter 14. Payment shall be required for services rendered. If the grain is in transit, the fees shall be paid by the carrier and treated as advance charges, and, if received for storage, the fees shall be paid by the warehouse operator, and added to the storage charges.

All fees collected and all fines and penalties for violation of any provision of this chapter shall be deposited in the grain inspection and weighing account, which is created in the state treasury for carrying out the purpose of sections 17B.01 to 17B.23. The money in the account, including interest earned on the account, is annually appropriated to the commissioner of agriculture to administer the provisions of sections 17B.01 to 17B.23. When money from any other account is used to administer sections 17B.01 to 17B.23, the commissioner shall notify the chairs of the agriculture, environment and natural resources finance, and ways and means committees of the house of representatives; the agriculture and rural development and finance committees of the senate; and the finance division of the environment and natural resources committee of the senate.

Sec. 15. Minnesota Statutes 1994, section 18E.02, subdivision 5, is amended to read:

Subd. 5. [ELIGIBLE PERSON.] "Eligible person" means:

(1) a responsible party or an owner of real property, but does not include the state, a state agency, a political subdivision of the state, except as provided in clause (2), the federal government, or an agency of the federal government; or

(2) the owners of municipal airports at Perham, Madison, and Hector, Minnesota where a licensed aerial pesticide applicator has caused an incident through storage, handling, or distribution operations for agricultural chemicals if (i) the commissioner has determined that corrective action is necessary and (ii) the commissioner determines, and the agricultural chemical response compensation board concurs, that based on an affirmative showing made by the owner, a responsible party cannot be identified or the identified responsible party is unable to comply with an order for corrective action.; or

The commissioner and the agricultural chemical response compensation board must study and report to the legislative water commission by January, 1994, the effect on the agricultural chemical response and reimbursement account of including other owners of municipal airports as eligible persons under this chapter.

(3) a person involved in a transaction relating to real property who is not a responsible party or owner of the real property and who voluntarily takes corrective action on the property in response to a request or order for corrective action from the commissioner, except an owner of a municipal airport not listed in clause (2).

Sec. 16. [21.901] [BRAND NAME REGISTRATION.]

The owner or originator of a variety of nonhybrid seed that is to be sold in this state must annually register the variety with the commissioner if the variety is to be sold only under a brand name. The registration must include the brand name and the variety of seed. The brand name for a blend or mixture need not be registered.

The fee is $15 for each variety registered for sale by brand name.

Sec. 17. Minnesota Statutes 1995 Supplement, section 28A.03, is amended to read:

28A.03 [DEFINITIONS.]

As used in Subdivision 1. [SCOPE.] The definitions in this section apply to sections 28A.01 to 28A.16 the terms defined in this section shall have the following meanings:.

(a) Subd. 2. [COMMISSIONER.] "Commissioner" means the commissioner of agriculture of the state of Minnesota.

(b) Subd. 3. [PERSON.] "Person" means any individual, firm, corporation, company, association, cooperative, or partnership and includes any trustee, receiver, assignee, or other similar representative thereof.

(c) Subd. 4. [PLACE OF BUSINESS.] "Place of business" means every location where food or food items are manufactured, processed, sold, stored, or handled, including buildings, locations, permanent or portable structures, carnivals, circuses, fairs, or any other permanent or temporary location.

Any vehicle or similar mobile unit from which food is sold shall be considered a place of business for purposes of this section if the food therefrom has been manufactured, packaged or dispensed from bulk, or processed in any manner thereon.

(d) Subd. 5. [FOOD.] "Food" includes every article used for, entering into the consumption of, or used or intended for use in the preparation of food, drink, confectionery, or condiment for humans, whether simple, mixed or compound.

(1) (a) "Perishable food" is food which includes, but is not limited to fresh fruits, fresh vegetables, and other products which need protection from extremes of temperatures in order to avoid decomposition by microbial growth or otherwise.

(2) (b) "Readily perishable food" is food or a food ingredient consisting in whole or in part of milk, milk products, eggs, meat, fish, poultry or other food or food ingredient which is capable of supporting rapid and progressive growth of infectious or toxigenic microorganisms.

(3) (c) "Frozen food" is food which is processed and preserved by freezing in accordance with good commercial practices and which is intended to be sold in the frozen state.

(4) (d) For the purposes of this definition, packaged food in hermetically sealed containers processed by heat to prevent spoilage; packaged pickles; jellies, jams and condiments in sealed containers; bakery products such as bread, rolls, buns, donuts, fruit-filled pies and pastries; dehydrated packaged food; and dry or packaged food so low in moisture content as to preclude development of microorganisms are not "perishable food," "readily perishable food," or "frozen food" within the meaning of definitions (1), (2) and (3) herein paragraphs (a), (b), and (c), when they are stored and handled in accordance with good commercial practices.

(e) "Nonperishable food" is food described in paragraph (d) with a shelf life of more than 90 days.

(e) Subd. 6. [SELL; SALE.] "Sell" and "sale" includes include the keeping, offering, or exposing for sale, use, transporting, transferring, negotiating, soliciting, or exchange of food, the having in possession with intent to sell, use, transport, negotiate, solicit, or exchange the same and the storing, or carrying thereof in aid of traffic therein whether done or permitted in person or through others.

(f) Subd. 7. [PRINCIPAL MODE OF BUSINESS.] "Principal mode of business" means that type of business described under either paragraph (a), (b), (c) or (d) in section 28A.05 within which category the greatest amount of the applicant's food business lies.

(g) Subd. 8. [CUSTOM PROCESSOR.] "Custom processor" means a person who slaughters animals or processes noninspected meat for the owner of the animals, and returns the meat products derived from the slaughter or processing to the owner. "Custom processor" does not include a person who slaughters animals or poultry or processes meat for the owner of the animals or poultry on the farm or premises of the owner of the animals, meat, or poultry. For the purpose of this clause, "animals" or "meat" do not include poultry or game animals or meat derived therefrom.

(h) Subd. 9. [MAJOR VIOLATIONS.] "Major violation" includes conditions that cause food products to become adulterated, as defined in section 31.121, or fraudulently misbranded, as defined in section 31.123.

Sec. 18. Minnesota Statutes 1994, section 28A.04, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION; DATE OF ISSUANCE.] No person shall engage in the business of manufacturing, processing, selling, handling, or storing food without having first obtained from the commissioner a license for doing such business. Applications for such license shall be made to the commissioner in such manner and time as required and upon such forms as provided by the commissioner and shall contain the name and address of the applicant, address or description of each place of business, and the nature of the business to be conducted at each place, and such other pertinent information as the commissioner may require.

A retail or wholesale food handler license shall be issued for the period July 1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1 each year, except that licenses for all mobile food concession units and retail mobile units shall be issued for the period April 1 to March 31, and shall be renewed thereafter by the licensee on or before April 1 each year. A license for a food broker or for a food processor or manufacturer shall be issued for the period January 1 to December 31 following and shall be renewed thereafter by the licensee on or before January 1 of each year. A penalty for a late renewal shall be assessed in accordance with section 28A.08.

Sec. 19. Minnesota Statutes 1995 Supplement, section 28A.08, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] License fees, penalties for late renewal of licenses, and penalties for not obtaining a license before conducting business in food handling that are set in this section apply to the sections named except as provided under section 28A.09. Except as specified herein, bonds and assessments based on number of units operated or volume handled or processed which are provided for in said laws shall not be affected, nor shall any penalties for late payment of said assessments, nor shall inspection fees, be affected by this chapter. The penalties may be waived by the commissioner. Fees for all new licenses must be based on the anticipated future gross annual food sales.

Sec. 20. Minnesota Statutes 1994, section 28A.09, subdivision 1, is amended to read:

Subdivision 1. [ANNUAL FEE; EXCEPTIONS.] Every coin-operated food vending machine is subject to an annual state inspection fee of $15 for each nonexempt machine except nut vending machines which are subject to an annual state inspection fee of $5 for each machine, provided that:

(a) Food vending machines may be inspected by either a home rule charter or statutory city, or a county, but not both, and if inspected by a home rule charter or statutory city, or a county they shall not be subject to the state inspection fee, but the home rule charter or statutory city, or the county may impose an inspection or license fee of no more than the state inspection fee. A home rule charter or statutory city or county that does not inspect food vending machines shall not impose a food vending machine inspection or license fee.

(b) Vending machines dispensing only gum balls, hard candy, unsorted confections candy, or ice manufactured and packaged by another shall be exempt from the state inspection fee, but may be inspected by the state. A home rule charter or statutory city may impose by ordinance an inspection or license fee of no more than the state inspection fee for nonexempt machines on the vending machines described in this paragraph. A county may impose by ordinance an inspection or license fee of no more than the state inspection fee for nonexempt machines on the vending machines described in this paragraph which are not located in a home rule charter or statutory city.

(c) Vending machines dispensing only bottled or canned soft drinks are exempt from the state, home rule charter or statutory city, and county inspection fees, but may be inspected by the commissioner or the commissioner's designee.

Sec. 21. Minnesota Statutes 1994, section 28A.15, subdivision 7, is amended to read:

Subd. 7. Persons whose principal business is not food handling but who sell only ice manufactured and prepackaged by another or, such nonperishable items as bottled or canned soft drinks, prepackaged confections candy or nuts at retail, or persons who for their own convenience or the convenience of their employees have available for rehydration and consumption on the premises such nonperishable items as dehydrated coffee, soup, hot chocolate or other dehydrated food or beverage.

Sec. 22. Minnesota Statutes 1994, section 28A.15, subdivision 8, is amended to read:

Subd. 8. A licensed pharmacy selling only food additives, food supplements, canned or prepackaged infant formulae, ice manufactured and packaged by another, or such nonperishable food items as bottled or canned soft drinks and prepackaged confections candy or nuts at retail.

Sec. 23. Minnesota Statutes 1994, section 28A.15, is amended by adding a subdivision to read:

Subd. 9. An individual who prepares and sells food that is not potentially hazardous food, as defined in rules adopted under section 31.11, at a community event or farmer's market on ten or fewer days in a calendar year and with gross receipts of $1,000 or less in a calendar year. If the food is not prepared in a kitchen that is licensed or inspected, the seller must post a visible sign or placard stating that: "These products are homemade and not inspected."

Sec. 24. Minnesota Statutes 1994, section 28A.16, is amended to read:

28A.16 [PERSONS SELLING LIQUOR.]

The provisions of the Minnesota consolidated food licensing law, sections 28A.01 to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, provided that these persons sell only ice manufactured and packaged by another, or such nonperishable food items as bottled or canned soft drinks and prepacked confections candy at retail.

Sec. 25. Minnesota Statutes 1994, section 28A.17, is amended to read:

28A.17 [LICENSE RENEWAL.]

Licenses for food processors or manufacturers or food brokers shall be renewed annually on January 1. Licenses for retail and wholesale food handlers shall be renewed annually on July 1. Licenses for mobile food concessions and for retail mobile units shall be renewed annually on April 1.

Sec. 26. Minnesota Statutes 1994, section 32.21, subdivision 4, is amended to read:

Subd. 4. [PENALTIES.] (a) A person, other than a milk producer, who violates this section is guilty of a misdemeanor or subject to a civil penalty up to $1,000.

(b) A milk producer may not change milk plants within 30 days, without permission of the commissioner, after receiving notification from the commissioner under paragraph (c) or (d) that the milk producer has violated this section.

(c) A milk producer who violates subdivision 3, clause (1), (2), (3), (4), or (5), is subject to clauses (1) to (3) of this paragraph.

(1) Upon notification of the first violation in a 12-month period, the producer must meet with the dairy plant field service representative to initiate corrective action within 30 days.

(2) Upon the second violation within a 12-month period, the producer is subject to a civil penalty of $300. The commissioner shall notify the producer by certified mail stating the penalty is payable in 30 days, the consequences of failure to pay the penalty, and the consequences of future violations.

(3) Upon the third violation within a 12-month period, the producer is subject to an additional civil penalty of $300 and possible revocation of the producer's permit or certification. The commissioner shall notify the producer by certified mail that all civil penalties owed must be paid within 30 days and that the commissioner is initiating administrative procedures to revoke the producer's permit or certification to sell milk for at least 30 days.

(d) The producer's shipment of milk must be immediately suspended if the producer is identified as an individual source of milk containing residues causing a bulk load of milk to test positive in violation of subdivision 3, clause (6) or (7). Shipment may resume only after subsequent milk has been sampled by the commissioner or the commissioner's agent and found to contain no residues above established tolerances or safe levels.

The producer remains eligible only for manufacturing grade until the producer completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, displays the signed certificate in the milkhouse, and sends verification to the commissioner. A milk producer who violates whose milk supply is in violation of subdivision 3, clause (6) or (7), and has caused a bulk load to test positive is subject to clauses (1) to (3) of this paragraph.

(1) For the first violation in a 12-month period, a producer shall not receive payment for any milk contaminated or the equivalent of at least the value of two days' milk production on that farm. Milk purchased for use from the producer during the two-day penalty period will be assessed a civil penalty equal to the minimum value of that milk and is payable to the commissioner by the dairy plant or marketing organization who purchases the milk. The producer remains eligible only for manufacturing grade until the producer completes the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, displays the signed certificate in the milkhouse, and sends verification to the commissioner. To maintain a permit or certification to market milk, this program must be completed within 30 days dairy plant may collect from the responsible producer the value of the contaminated truck load of milk. If the amount collected by the plant is less than two days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer.

(2) For the second violation in a 12-month period, a producer shall not receive payment for any milk contaminated or the equivalent of at least the value of four days' milk production on that farm. Milk purchased for use from the producer during the four-day penalty period will be assessed a civil penalty equal to the minimum value of that milk and is payable to the commissioner by the dairy plant or marketing organization who purchases the milk. The producer remains eligible only for manufacturing grade until the producer reviews the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, displays the updated certificate in the milkhouse, and sends verification to the commissioner. To maintain a permit or certification to market milk, this program must be reviewed within 30 days dairy plant may collect from the responsible producer the value of the contaminated truck load of milk. If the amount collected by the plant is less than four days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer.

(3) For the third violation in a 12-month period, a producer shall not receive payment for any milk contaminated or the equivalent of at least the value of four days' milk production on that farm. Milk purchased for use from the producer during the four-day penalty period will be assessed a civil penalty equal to the minimum value of that milk and is payable to the commissioner by the dairy plant or marketing organization who purchases the milk. The producer remains eligible only for manufacturing grade until the producer reviews the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian, displays the updated certificate in the milkhouse, and sends verification to the commissioner. To maintain a permit or certification to market milk, this program must be reviewed within 30 days dairy plant may collect from the responsible producer the value of the contaminated load of milk. If the amount collected by the plant is less than four days of milk production on that farm, then the commissioner must assess the difference as a civil penalty payable by the plant or marketing organization on behalf of the responsible producer. The commissioner shall also notify the producer by certified mail that the commissioner is initiating administrative procedures to revoke the producer's permit or certification right to sell milk for a minimum of 30 days.

(4) If a bulk load of milk tests negative for residues and there is a positive producer sample on the load, no civil penalties may be assessed to the producer. The plant must report the positive result within 24 hours and reject further milk shipments from that producer until the producer's milk tests negative. The department shall suspend the producer's permit and count the violation on the producer's record. The producer remains eligible only for manufacturing grade until the producer reviews the "Milk and Dairy Beef Residue Prevention Protocol" with a licensed veterinarian. To maintain a permit or certification to market milk, this program must be reviewed within 30 days.

(e) A milk producer that has been certified as completing the "Milk and Dairy Beef Residue Prevention Protocol" within 12 months of the first violation of subdivision 3, clause (7), need only review the cause of the violation with a field service representative within three days to maintain shipping status if all other requirements of this section are met.

(f) Civil penalties collected under this section must be deposited in the milk inspection services account established in this chapter.

Sec. 27. Minnesota Statutes 1994, section 32.394, subdivision 8d, is amended to read:

Subd. 8d. [PROCESSOR ASSESSMENT.] (a) A manufacturer shall pay to the commissioner a fee for fluid milk processed and milk used in the manufacture of fluid milk products sold for retail sale in Minnesota. Beginning May 1, 1993, the fee is six cents per hundredweight. If the commissioner determines that a different fee, not less than five cents and not more than nine cents per hundredweight, when combined with general fund appropriations and fees charged under sections 31.39 and 32.394, subdivision 8, is needed to provide adequate funding for the Grades A and B inspection programs and the administration and enforcement of Laws 1993, chapter 65, the commissioner may, by rule, change the fee on processors within the range provided within this subdivision.

(b) Processors must report quantities of milk processed under paragraph (a) on forms provided by the commissioner. Processor fees must be paid monthly. The commissioner may require the production of records as necessary to determine compliance with this subdivision.

(c) The commissioner may create within the department a dairy consulting program to provide assistance to dairy producers who are experiencing problems meeting the sanitation and quality requirements of the dairy laws and rules.

The commissioner may use money appropriated from the dairy services account created in subdivision 9 to pay for the program authorized in this paragraph.

Sec. 28. Minnesota Statutes 1994, section 32.394, is amended by adding a subdivision to read:

Subd. 8e. [FARM BULK MILK PICK-UP TANKERS.] Farm bulk milk pick-up tankers must be inspected and obtain a permit issued by the commissioner annually by July 1. The owner or operator must pay a $25 permit fee per tanker to the commissioner. The commissioner may appoint such persons as the commissioner deems qualified to make inspections.

Sec. 29. Minnesota Statutes 1994, section 32.415, is amended to read:

32.415 [MILK FOR MANUFACTURING; QUALITY STANDARDS.]

(a) The commissioner may adopt rules to provide uniform quality standards, and producers of milk used for manufacturing purposes shall conform to the standards contained in Subparts B, C, D, E, and F of the United States Department of Agriculture Consumer and Marketing Service Recommended Requirements for Milk for Manufacturing Purposes and its Production and Processing, Vol. 37 Federal Register, No. 68, Part II, April 7, 1972, with the following exceptions:

(1) inspections of producers shall begin not later than January 1, 1984;

(2) producers shall comply with the standards not later than July 1, 1985, except as otherwise allowed under the standards; and

(3) as revised through March 1, 1996, except that the commissioner shall develop methods by which producers can comply with the standards without violation of religious beliefs.

(b) The commissioner shall perform or contract for the performance of the inspections necessary to implement this section or shall certify dairy industry personnel to perform the inspections.

(c) The commissioner and other employees of the department shall make every reasonable effort to assist producers in achieving the milk quality standards at minimum cost and to use the experience and expertise of the University of Minnesota and the agricultural extension service to assist producers in achieving the milk quality standards in the most cost-effective manner.

(d) The commissioner shall consult with producers, processors, and others involved in the dairy industry in order to prepare for the implementation of this section including development of informational and educational materials, meetings, and other methods of informing producers about the implementation of standards under this section.

Sec. 30. Minnesota Statutes 1994, section 35.821, subdivision 3, is amended to read:

Subd. 3. [BRAND.] "Brand" means a permanent identification mark, of which the letters, numbers, and figures used are each four inches or more in length or diameter and applied using the technique of freeze branding or burned into the hide of a live animal with a hot iron, which is to be considered in relation to its location on the animal. The term relates to both the mark burned into the hide and its location. In the case of sheep, the term includes, but is not limited to, a painted mark which is renewed after each shearing.

Sec. 31. Minnesota Statutes 1994, section 35.821, is amended by adding a subdivision to read:

Subd. 3a. [FREEZE BRANDING.] "Freeze branding" means the application of an intensely cold iron to the hide of a live animal.

Sec. 32. [OFF-HIGHWAY VEHICLE RECREATION AREA.]

Subdivision 1. [DEFINITION.] For purposes of this act, "off-highway vehicle" means an all-terrain vehicle, an off-highway motorcycle, or an off-road vehicle as those terms are defined in Minnesota Statutes, chapter 84.

Subd. 2. [85.013] [Subd. 12a.] [IRON RANGE OFF-HIGHWAY VEHICLE RECREATION AREA.] The Iron Range off-highway vehicle recreation area is established in St. Louis county.

Subd. 3. [ACQUISITION AND MANAGEMENT.] The commissioner of natural resources is authorized to acquire by gift or purchase the lands for the Iron Range off-highway vehicle recreation area. The commissioner shall manage the unit as a state recreation area as provided by Minnesota Statutes, section 86A.05, subdivision 3. The commissioner or the commissioner's designee in the trails and waterways division of the department of natural resources shall develop and manage the area for off-highway vehicle recreational use.

Subd. 4. [ADVISORY COMMITTEE.] (a) A local area advisory committee is established to provide direction on the establishment, planning, development, and operation of the Iron Range off-highway vehicle recreation area. Except as provided in paragraph (b), the commissioner of natural resources shall appoint the members of the advisory committee.

(b) Membership on the advisory committee shall include:

(1) a representative of the all-terrain vehicle association of Minnesota;

(2) a representative of the amateur riders of motorcycles association;

(3) a representative of the Minnesota four-wheel drive association;

(4) a representative of the St. Louis county board;

(5) a state representative appointed by the speaker of the house of representatives;

(6) a state senator appointed by the senate committee on committees;

(7) a designee of the local environmental community selected by the area environmental organizations;

(8) a designee of the local tourism community selected by the iron trail convention and visitors bureau; and

(9) a representative of the Tower regional office of the department of natural resources.

(c) The advisory committee shall elect its own chair and meetings shall be at the call of the chair.

(d) The advisory committee members shall serve as volunteers and accept no per diem.

Subd. 5. [MANAGEMENT PLAN.] The commissioner and the local area advisory committee shall cooperatively develop a comprehensive management plan that provides for:

(1) multiple use recreation for off-highway vehicles;

(2) protection of natural resources;

(3) limited timber management;

(4) land acquisition needs; and

(5) road and facility development.

The completed management plan shall serve as the master plan for purposes of Minnesota Statutes, section 86A.09.

Subd. 6. [BOUNDARIES.] The following described lands are located within the boundaries of the Iron Range off-highway vehicle recreation area:

That part of St. Louis county, Minnesota, lying within:

Section 25, Township 58 North, Range 17 West.

EXCEPT the North Half of the Northeast Quarter.

EXCEPT the Northwest Quarter.

EXCEPT the Northwest Quarter of the Southwest Quarter.

EXCEPT the Southwest Quarter of the Southwest Quarter lying north of the Duluth Missabe and Iron Range Railroad.

Section 26, Township 58 North, Range 17 West.

EXCEPT the Northeast Quarter.

EXCEPT the Northwest Quarter.

EXCEPT the Southwest Quarter.

EXCEPT the Southeast Quarter, 100 feet along the east side of the quarter.

Section 35, Township 58 North, Range 17 West.

EXCEPT the Northwest Quarter.

EXCEPT the Southwest Quarter.

EXCEPT the Southeast Quarter.

EXCEPT the West 970 feet of the Northeast Quarter of the Northeast Quarter.

EXCEPT the Northwest Quarter of the Northeast Quarter.

Section 36, Township 58 North, Range 17 West.

EXCEPT the Southeast Quarter of the Southwest Quarter.

Subd. 7. [ADOPT-A-RECREATION AREA.] The commissioner shall utilize Minnesota Statutes, section 85.045, as much as possible in developing and operating the Iron Range off-highway vehicle recreation area.

Subd. 8. [FEASIBILITY STUDY.] The trails and waterways division of the department of natural resources in consultation with the local area advisory committee shall conduct a study to identify additional sites to expand the Iron Range off-highway vehicle recreation area and to determine the feasibility of acquiring, developing, and connecting the sites.

Subd. 9. [VEHICLES MUST BE REGISTERED.] An off-highway vehicle being operated in the Iron Range off-highway vehicle recreation area must be properly registered under Minnesota Statutes, chapter 84.

Sec. 33. Minnesota Statutes 1995 Supplement, section 85.015, subdivision 7, is amended to read:

Subd. 7. [BLUFFLANDS TRAIL SYSTEM, FILLMORE, OLMSTED, WINONA, AND HOUSTON COUNTIES.] (a) The Root River trail shall originate at Chatfield in Fillmore county, and thence extend easterly in the Root river valley to the intersection of the river with Minnesota trunk highway No. 26 in Houston county, and extend to the Mississippi river.

(b) Additional trails shall be established that extend the Blufflands Trail System to include La Crescent, Hokah, Caledonia, and Spring Grove in Houston county; Preston, Harmony, Fountain, Wykoff, Spring Valley, Mabel, Canton, and Ostrander in Fillmore county; Dover, Eyota, Stewartville, Byron, and Chester Woods county park in Olmsted county; and Winona, Minnesota City, Rollingstone, Altura, Lewiston, Utica, St. Charles, and Elba in Winona county. In addition to the criteria in section 86A.05, subdivision 4, these trails must utilize abandoned railroad rights-of-way where possible.

(c) The trails shall be developed primarily for nonmotorized riding and hiking.

Sec. 34. Minnesota Statutes 1994, section 85.015, is amended by adding a subdivision to read:

Subd. 19. [BLAZING STAR TRAIL, FREEBORN AND MOWER COUNTIES.] (a) The trail shall originate in the city of Albert Lea and extend to the city of Austin.

(b) The trail shall be developed primarily for hiking and nonmotorized riding.

Sec. 35. Minnesota Statutes 1995 Supplement, section 85.019, subdivision 4a, is amended to read:

Subd. 4a. [NATURAL AND SCENIC AREAS.] The commissioner shall administer a program to provide grants to units of government and school districts for the acquisition and betterment of natural and scenic areas such as blufflands, prairies, shorelands, wetlands, and wooded areas. A grant may not exceed 50 percent or $50,000 $200,000, whichever is less, of the costs of acquisition and betterment of land acquired under this subdivision.

Sec. 36. Minnesota Statutes 1994, section 85.053, subdivision 7, is amended to read:

Subd. 7. [HANDICAPPED PERSONS AND PERSONS OVER AGE 65.] (a) The commissioner shall prescribe and issue special state park permits for:

(1) an individual age 65 years or older who furnishes satisfactory proof of age and is a resident of the state;

(2) a physically handicapped person with a motor vehicle (i) that has special plates issued under section 168.021, subdivision 1, or (ii) who has a permanent disability certificate issued under section 169.345, subdivision 3, and who can demonstrate proof of ownership of the vehicle for which the state park permit is being purchased or proof of a leasehold interest in the vehicle for a term at least as long as the term of the permit; and

(3) (2) a physically handicapped person who: (i) does not own or operate a motor vehicle; (ii) possesses a statement certified under section 169.345, subdivision 2a; and (iii) applies to the commissioner in writing.

(b) Except for vehicles permitted under paragraph (a), clause (3), the permit or the decal issued under this subdivision is valid only when displayed on a vehicle owned and occupied by the person to whom the permit is issued.

Sec. 37. Minnesota Statutes 1994, section 85.054, is amended by adding a subdivision to read:

Subd. 6. [IRON RANGE OFF-HIGHWAY VEHICLE RECREATION AREA.] A state park permit is not required and a fee may not be charged for motor vehicle entry or parking at the Iron Range off-highway vehicle recreation area, except that the commissioner may establish special event fees.

Sec. 38. Minnesota Statutes 1994, section 85.055, subdivision 1, is amended to read:

Subdivision 1. [FEES.] The fee for state park permits for:

(1) an annual use of state parks is $18 $20;

(2) a second vehicle state park permit is $12 $15;

(3) a special state park permit valid up to two days is $4;

(4) a special daily vehicle state park permit for groups is $2;

(5) an employee's state park permit is without charge; and

(6) a special state park permit for handicapped persons and persons over age 65 under section 85.053, subdivision 7, clauses (1), and (2), and (3), is $12.

The fees specified in this subdivision include any sales tax required by state law.

Sec. 39. Minnesota Statutes 1994, section 94.16, subdivision 3, is amended to read:

Subd. 3. [PROCEEDS FROM NATURAL RESOURCES LAND.] The remainder of the proceeds from the sale of lands that were under the control and supervision of the commissioner of natural resources shall be credited to the land acquisition account in the natural resources fund.

Sec. 40. Minnesota Statutes 1994, section 97A.028, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.

(b) "Agricultural crops" means annually seeded crops, legumes, fruit orchards, tree farms and nurseries, turf farms, and apiaries.

(c) "Parcel" has the meaning given in section 272.03, subdivision 6.

(d) "Specialty crops" means fruit orchards, vegetables, tree farms and nurseries, turf farms, and apiaries.

Sec. 41. Minnesota Statutes 1994, section 97A.028, subdivision 3, is amended to read:

Subd. 3. [EMERGENCY DETERRENT MATERIALS ASSISTANCE.] (a) For the purposes of this subdivision, "cooperative damage management agreement" means an agreement between a landowner or tenant and the commissioner that establishes a program for addressing the problem of destruction of the landowner's or tenant's specialty crops by wild animals on the landowner's property.

(b) A person landowner or tenant may apply to the commissioner for emergency deterrent materials assistance in controlling destruction of the landowner's or tenant's specialty crops by wild animals. Subject to the availability of money appropriated for this purpose, the commissioner shall provide suitable deterrent materials, up to $3,000 in value per individual or corporation, when the commissioner determines that:

(1) immediate action is necessary to prevent significant damage from continuing; and

(2) a cooperative damage management agreement cannot be implemented immediately.

(c) A person may receive emergency deterrent materials assistance under this subdivision more than once, but the cumulative total value of deterrent materials provided to a person, or for use on a parcel, may not exceed $3,000. If a person is a coowner or cotenant with respect to the specialty crops for which the deterrent materials are provided, the deterrent materials are deemed to be "provided" to the person for the purposes of this paragraph.

(d) As a condition of receiving emergency deterrent materials assistance under this subdivision, a landowner or tenant shall enter into a cooperative damage management agreement with the commissioner. Deterrent materials provided by the commissioner may include repellents, fencing materials, or other materials recommended in the

agreement to alleviate the damage problem. If requested by a landowner or tenant, any fencing materials provided must be capable of providing long-term protection of specialty crops. A landowner may not receive emergency deterrent materials assistance under this subdivision more than once. A landowner or tenant who receives emergency deterrent materials assistance under this subdivision shall comply with the terms of the cooperative damage management agreement.

Sec. 42. Minnesota Statutes 1994, section 103D.345, is amended by adding a subdivision to read:

Subd. 5. [APPLICABILITY OF PERMIT REQUIREMENTS TO STATE.] A rule adopted by the managers that requires a permit for an activity applies to the department of transportation.

Sec. 43. [103F.378] [MINNESOTA RIVER BASIN JOINT POWERS BOARD.]

Subdivision 1. [DUTIES.] The Minnesota river basin joint powers board, established under section 471.59 for the purpose of coordinating efforts to improve water quality in the Minnesota river and achieving the goal of making the Minnesota river suitable for fishing and swimming by the year 2005, has the following duties:

(1) coordination of comprehensive cleanup goals for the Minnesota river by coordinating the work plans of the 12 major watersheds and the member counties of the joint powers board, state agencies, and the University of Minnesota in cleanup efforts and submission of periodic river cleanup plans for submission to the governor and the legislature;

(2) advising on the development and use of monitoring and evaluation systems in the Minnesota river and the incorporation of the data obtained from these systems into the planning process;

(3) conducting public meetings of the board on at least a quarterly basis at locations within the Minnesota river basin;

(4) conducting an ongoing information and education program concerning the status of the Minnesota river, including an annual conference on the state of the Minnesota river; and

(5) providing periodic reports and budget requests to the governor's office and the chairs of the agriculture and environment and natural resources committees of the senate and the house of representatives regarding progress on meeting river water quality management goals and future funding required for this effort.

Subd. 2. [MEMBERSHIP.] Upon acceptance of the joint powers agreement, each member county that agrees to join the board shall have one county commissioner as its delegate to the board and one county commissioner as an alternate. A technical and citizen advisory committee shall be established to advise the board consisting of a technical representative from each of the counties in the basin and citizens who are not county employees but who have an interest in agriculture, conservation, sporting activities, and other relevant areas as determined by the board.

Sec. 44. Minnesota Statutes 1995 Supplement, section 103F.725, subdivision 1a, is amended to read:

Subd. 1a. [FINANCIAL ASSISTANCE; LOANS.] (a) Up to $12,000,000 $24,000,000 of the balance in the water pollution control revolving fund in section 446A.07, as determined by the public facilities authority shall be appropriated to the commissioner for the establishment of a clean water partnership loan program.

(b) The agency may award loans for up to 100 percent of the costs associated with activities identified by the agency as best management practices pursuant to section 319 and section 320 of the federal Water Quality Act of 1987, as amended, including associated administrative costs.

(c) Loans may be used to finance clean water partnership grant project eligible costs not funded by grant assistance.

(d) The interest rate, at or below market rate, and the term, not to exceed 20 years, shall be determined by the agency in consultation with the public facilities authority.

(e) The repayment must be deposited in the water pollution control revolving fund under section 446A.07.

(f) The local unit of government receiving the loan is responsible for repayment of the loan.

(g) For the purpose of obtaining a loan from the agency, a local government unit may provide to the agency its general obligation note. All obligations incurred by a local government unit in obtaining a loan from the agency must be in accordance with chapter 475, except that so long as the obligations are issued to evidence a loan from the agency to the local government unit, an election is not required to authorize the obligations issued, and the amount of the obligations shall not be included in determining the net indebtedness of the local government unit under the provisions of any law or chapter limiting the indebtedness.

Sec. 45. Minnesota Statutes 1994, section 103G.405, is amended to read:

103G.405 [WATER LEVEL CONTROL FOR LANDLOCKED LAKES.]

(a) Except as provided in paragraph (c), the commissioner must issue a water level control permit to establish a control elevations elevation for a landlocked lakes up to three feet lake below the ordinary high water level for the lake if:

(1) the commissioner finds that:

(i) the control is necessary to prevent flooding of homesteads adverse impacts to the lake or adjoining property;

(2) (ii) other reasonable or cost-effective alternatives are not available; and

(3) a change in the control elevation is prescribed in an approved stormwater plan under section 103B.235.

(iii) natural resource or hydrologic conditions exist in the watershed that would limit the potential for continuous discharge of excess waters from the lake; and

(2) the outlet and discharge of excess waters is addressed in an approved water management plan under chapter 103B or 103D.

(b) In addition to the requirements in section 103G.301, subdivision 6, if the proposed control elevation is more than 1-1/2 feet below the ordinary high water level, the permit applicant shall serve a copy of the application on each county and municipality within which any portion of the lake is located and the lake improvement district, if one exists.

(c) The commissioner may not issue a permit to establish a control elevation more than 1-1/2 feet below the ordinary high water level of a lake if a county, municipality, watershed district, or lake improvement district required to be served under paragraph (b) or section 103G.301, subdivision 6, files a written objection to the issuance of the permit with the commissioner within 30 days after receiving a copy of the application.

Sec. 46. Minnesota Statutes 1994, section 161.1419, subdivision 2, is amended to read:

Subd. 2. [MEMBERS.] The commission shall be composed of ten members of which one shall be appointed by the commissioner of transportation, one shall be appointed by the commissioner of natural resources, one shall be appointed by the commissioner of trade and economic development, three one shall be appointed by the commissioner of agriculture, one shall be appointed by the director of the Minnesota historical society, two shall be members of the senate to be appointed by the committee on committees, and three two shall be members of the house of representatives to be appointed by the speaker. The tenth member shall be the secretary appointed pursuant to subdivision 3. The members of the commission shall be selected immediately after final enactment of this act and shall serve for a term expiring at the close of the next regular session of the legislature and until their successors are appointed. Successor members shall be appointed at the close of each regular session of the legislature by the same appointing authorities. Members may be reappointed. Any vacancy shall be filled by the appointing authority. The commissioner of transportation, the commissioner of natural resources, and the director of the Minnesota historical society shall be ex officio members, and shall be in addition to the ten members heretofore provided for. Immediately upon making the appointments to the commission the appointing authorities shall so notify the Mississippi river parkway commission, hereinafter called the national commission, giving the names and addresses of the members so appointed.

Sec. 47. Minnesota Statutes 1995 Supplement, section 446A.07, subdivision 8, is amended to read:

Subd. 8. [OTHER USES OF REVOLVING FUND.] The water pollution control revolving fund may be used as provided in title VI of the Federal Water Pollution Control Act, including the following uses:

(1) to buy or refinance the debt obligation of governmental units for treatment works where debt was incurred and construction begun after March 7, 1985, at or below market rates;

(2) to guarantee or purchase insurance for local obligations to improve credit market access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the authority if the bond proceeds are deposited in the fund;

(4) to provide loan guarantees, loans, or set-aside for similar revolving funds established by a governmental unit other than state agencies, or state agencies under sections 17.117, 103F.725, subdivision 1a, 116J.403, and 116J.617; provided that no more than $2,000,000 $4,000,000 of the balance in the fund may be used for the small cities block grant program under section 116J.403 and the tourism loan program under section 116J.617, taken together;

(5) to earn interest on fund accounts; and

(6) to pay the reasonable costs incurred by the authority and the agency of administering the fund and conducting activities required under the federal Water Pollution Control Act, including water quality management planning under section 205(j) of the act and water quality standards continuing planning under section 303(e) of the act.

Amounts spent under clause (6) may not exceed the amount allowed under the Federal Water Pollution Control Act.

Sec. 48. Laws 1995, chapter 207, article 1, section 2, subdivision 7, is amended to read:

Subd. 7. Community Mental Health and State-Operated Services

General

254,604,000 260,379,000

The amounts that may be spent from this appropriation for each purpose are as follows:

(a) Mental Health Grants - Children

7,097,000 12,536,000

[MENTAL HEALTH COLLABORATIVE.] Mental health grants available for children formerly served under the TEFRA program shall be distributed and administered by a children's mental health collaborative where a collaborative exists.

(b) Mental Health Grants - Adults

38,222,000 40,918,000

(c) Residential Treatment Center Facilities

194,921,000 192,265,000

(d) Developmental Disability and Mentally Ill (DD and MI)

State-Operated Community Services (SOCS)

13,001,000 13,297,000

(e) Administration and Other Grants

1,363,000 1,363,000

[MENTAL HEALTH GRANTS.] (a) Mental health grants appropriated for the biennium as part of the TEFRA and PCA restructuring proposal shall be distributed to children's mental health collaboratives, or where there is no collaborative, to counties. Grants shall be prorated by county based on the estimated dollar value of services for children and adults with a mental health diagnosis that will be lost due to the changes in Minnesota Statutes, sections 256B.055, subdivision 12, and 256B.0627.

(b) The commissioner shall form a work group to recommend a process for awarding grants that will maximize services purchased and minimize administrative overhead. The task force shall include representatives of the state advisory council on mental health and the children's subcommittee, parents, consumers, advocacy groups, providers, and local social service and public health staff. The work group shall consider whether the process for awarding consumer support grants under Minnesota Statutes, section 256.476, can be utilized for awarding these mental health grants. In addition, the work group shall recommend ways to minimize harm to children and families and to reduce barriers to accessing alternative services.

(c) For the first year of the biennium, funds must be distributed by January 1, 1996, and for the second year, by July 1, 1996. None of this appropriation shall be used for county administration, but must be used to fund direct services to persons found ineligible for TEFRA or PCA services.

[MENTAL HEALTH CASE MANAGEMENT.] Notwithstanding section 12 of this article, this paragraph does not expire. The reimbursement rate for mental health case management services provided by counties under Minnesota Statutes, sections 245.4881 and 256B.0625, for children with severe emotional disturbance is $45.

[CALCULATION OF FTE's.] When calculating regional treatment center full-time equivalent employees, the commissioner of finance shall make a separate calculation for physicians and their salaries.

[RELOCATIONS FROM FARIBAULT.] Of this appropriation, $162,000 in fiscal year 1996 and $37,000 in fiscal year 1997 are for grants to counties for discharge planning related to persons with mental retardation or related conditions being relocated from the Faribault regional center to community services.

[TRANSFERS TO MOOSE LAKE.] Notwithstanding Minnesota Statutes, sections 253B.18, subdivisions 4 and 6, and 253B.185, subdivision 2, with the establishment of the Minnesota sexual psychopathic personality treatment center, the commissioner is authorized to transfer any person committed as a psychopathic personality, sexual psychopathic personality, or sexually dangerous person, between the Minnesota security hospital and the facility at Moose Lake.

[RTC CHEMICAL DEPENDENCY PROGRAMS.] When the operations of the regional treatment center chemical dependency fund created in Minnesota Statutes, section 246.18, subdivision 2, are impeded by projected cash deficiencies resulting from delays in the receipt of grants, dedicated income, or other similar receivables, and when the deficiencies would be corrected within the budget period involved, the commissioner of finance may transfer general fund cash reserves into this account as necessary to meet cash demands.

The cash flow transfers must be returned to the general fund in the fiscal year that the transfer was made. Any interest earned on general fund cash flow transfers accrues to the general fund and not the regional treatment center chemical dependency fund.

[RTC RESTRUCTURING.] For purposes of restructuring the regional treatment centers and state nursing homes, any regional treatment center or state nursing home employee whose position is to be eliminated shall be afforded the options provided in applicable collective bargaining agreements. All salary and mitigation allocations from fiscal year 1996 shall be carried forward into fiscal year 1997. Provided there is no conflict with any collective bargaining agreement, any regional treatment center or state nursing home position reduction must only be accomplished through mitigation, attrition, transfer, and other measures as provided in state or applicable collective bargaining agreements and in Minnesota Statutes, section 252.50, subdivision 11, and not through layoff.

[RTC POPULATION.] If the resident population at the regional treatment centers is projected to be higher than the estimates upon which the medical assistance forecast and budget recommendations for the 1996-97 biennium were based, the amount of the medical assistance appropriation that is attributable to the cost of services that would have been provided as an alternative to regional treatment center services, including resources for community placements and waivered services for persons with mental retardation and related conditions, is transferred to the residential facilities appropriation.

[INFRASTRUCTURE REINVESTMENT.] $750,000 is available from the public facilities authority under Minnesota Statutes 446A.071 for grant funds to a local unit of government for the planning and development of infrastructure and planning for redevelopment in response to the memorandum of understanding for the regional treatment centers. Eligible costs include sewer, water, and easements and engineering costs associated with the project proposal.

[CAMP.] Of this appropriation, $30,000 is from the mental health special projects account for adults and children with mental illness from across the state, for a camping program which utilizes the Boundary Waters Canoe Area and is cooperatively sponsored by client advocacy, mental health treatment, and outdoor recreation agencies.

[IMD DOWNSIZING FLEXIBILITY.] If a county presents a budget-neutral plan for a net reduction in the number of institution for mental disease (IMD) beds funded under group residential housing, the commissioner may transfer the net savings from group residential housing and general assistance medical care to medical assistance and mental health grants to provide appropriate services in non-IMD settings.

[REPAIRS AND BETTERMENTS.] The commissioner may transfer unencumbered appropriation balances between fiscal years for the state residential facilities repairs and betterments account and special equipment.

[PROJECT LABOR.] Wages for project labor may be paid by the commissioner of human services out of repairs and betterments money if the individual is to be engaged in a construction project or

a repair project of short term and nonrecurring nature. Compensation for project labor shall be based on the prevailing wage rates, as defined in Minnesota Statutes, section 177.42, subdivision 6. Project laborers are excluded from the provisions of Minnesota Statutes, sections 43A.22 to 43A.30, and shall not be eligible for state-paid insurance and benefits.

[PLAN FOR ADOLESCENT TREATMENT EXPANSION.] The commissioner shall report to the legislature by January 15, 1996, with a cost-neutral plan to add up to 20 beds to each of the two existing adolescent treatment facilities at the regional treatment centers in order to reduce or eliminate out-of-state placement of adolescents who have serious emotional disturbance and exhibit violent behavior, if they cannot be treated in their own communities. Cost neutrality shall be determined by comparing the costs of program expansion with the projected costs of out-of-state placements.

Sec. 49. Laws 1995, chapter 220, section 5, subdivision 3, is amended to read:

Subd. 3. Water Resources Management

8,781,000 8,706,000

Summary by Fund

General 8,540,000 8,465,000

Natural Resources 241,000 241,000

$95,000 the first year and $95,000 the second year are for a grant to the Mississippi headwaters board for up to 50 percent of the cost of implementing the comprehensive plan for the upper Mississippi within areas under its jurisdiction.

$17,000 the first year and $17,000 the second year are for payment to the Leech Lake Band of Chippewa Indians to implement its portion of the comprehensive plan for the upper Mississippi.

$50,000 is for development and administration of contracts with water well contractors for exploratory drilling and installation of observation wells to characterize the geologic and hydrologic conditions in the southwest region of the state where water supplies are difficult to locate. This appropriation is available until June 30, 1997, and is contingent on the receipt by the commissioner of $50,000 in nonstate money. Results must be reported to the legislative water commission by February 15, 1996, and February 15, 1997.

$25,000 is appropriated in fiscal year 1996 under Minnesota Statutes, section 103G.701, to the commissioner of natural resources for a grant, requiring no local match, to Morrison county for improving water flow along the easterly shoreline of the Mississippi river near Highway 10 in Morrison county, notwithstanding Minnesota Statutes, section 103G.701, subdivision 4. This appropriation may also be used to fund a comprehensive analysis regarding the cause of accelerated sedimentation in this portion of the Mississippi river. This appropriation remains available until June 30, 1997.

Sec. 50. Laws 1995, chapter 220, section 19, subdivision 4, is amended to read:

Subd. 4. Parks and Trails

(a) METROPOLITAN REGIONAL PARK SYSTEM 3,950,000

This appropriation is from the trust fund for payment by the commissioner of natural resources to the metropolitan council for subgrants to rehabilitate, develop, acquire, and retrofit the metropolitan regional park system consistent with the metropolitan council regional recreation open space capital improvement program and subgrants for regional trails, consistent with an updated regional trail plan. $1,666,000 of this appropriation is from the trust fund acceleration.

This appropriation may be used for the purchase of homes only if the purchases are expressly included in the work program approved by the legislative commission on Minnesota resources.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(b) STATE PARK AND RECREATION AREA ACQUISITION,

DEVELOPMENT, BETTERMENT, AND REHABILITATION3,150,000

This appropriation is from the trust fund to the commissioner of natural resources as follows: (1) for state park and recreation area acquisition $1,070,000, of which up to $670,000 may be used for state trail acquisition of a critical nature; (2) for state park and recreation area development $680,000; and (3) for betterment and rehabilitation of state parks and recreation areas $1,400,000. The use of the Minnesota conservation corps is encouraged in the rehabilitation and development.

$1,384,000 of this appropriation is from the trust fund acceleration. The commissioner must submit grant requests for supplemental funding for federal ISTEA money in eligible categories and report the results to the legislative commission on Minnesota resources.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(c) STATE TRAIL REHABILITATION AND ACQUISITION250,000

This appropriation is from the trust fund to the commissioner of natural resources for state trail plan priorities. $94,000 of this appropriation is from the trust fund acceleration. The commissioner must submit grant requests for supplemental funding for federal ISTEA money and report the results to the legislative commission on Minnesota resources.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(d) WATER ACCESS 600,000

This appropriation is from the trust fund to the commissioner of natural resources to accelerate public water access acquisition and development statewide. Access includes boating access, fishing piers, and shoreline access. Up to $100,000 of this appropriation

may be used for a cooperative project to acquire and develop land, local park facilities, an access trail, and a boat access at the LaRue pit otherwise consistent with the water access program.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(e) LOCAL GRANTS 1,800,000

This appropriation is from the future resources fund to the commissioner of natural resources to provide matching grants, as follows: (1) $500,000 to local units of government for local park and recreation areas; (2) $500,000 to local units of government for natural and scenic areas pursuant to Minnesota Statutes, section 85.019; (3) $400,000 to local units of government for trail linkages between communities, trails, and parks; and (4) $400,000 for a conservation partners program, a statewide pilot to encourage private organizations and local governments to cost share enhancement of fish, wildlife, and native plant habitats; and research and surveys of fish and wildlife, and related education activities. Conservation partners grants may be up to $10,000 each and must be equally matched. In addition to the required work program, grants may not be approved until grant proposals to be funded have been submitted to the legislative commission on Minnesota resources and the commission has either made a recommendation or allowed 60 days to pass without making a recommendation. The above appropriations are available half for the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, and half for outside of the metropolitan area. For the purpose of this paragraph, match includes nonstate contributions either cash or in-kind.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(f) MINNEAPOLIS PARK AND TRAIL CONNECTIONS141,000

This appropriation is from the future resources fund to the commissioner of transportation for half of the nonfederal match of ISTEA projects for the Minneapolis park and recreation board to develop park and trail connections including: Minnehaha park to Mendota bridge, Stone Arch bridge to bridge number 9 on West River Parkway, Boom island to St. Anthony Parkway, and West River Parkway to Shingle Creek Parkway. The Minneapolis park and recreation board must apply for and receive approval of the federal money in order to receive this appropriation.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(g) LOCAL SHARE FOR ISTEA FEDERAL PROJECTS 300,000

This appropriation is from oil overcharge money to the commissioner of administration for half of the nonfederal match of ISTEA projects for: (1) Chisago county, $150,000 for a trail between North Branch and Forest Lake township; and (2) the St. Louis and Lake counties regional rail authority, $150,000 for the development of approximately 40 miles of a multipurpose recreational trail system. Chisago county and the St. Louis and Lake counties regional rail authority must apply for and receive approval of the federal money in order to receive these appropriations.

This project The project under clause (1) must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date. The project under clause (2) must be completed and final products delivered by December 31, 1999, and the appropriation is available until that date.

(h) PINE POINT PARK REST STATION 100,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Washington county to construct a rest station on the Gateway segment of the Willard Munger state trail in compliance with the Americans with Disabilities Act. This appropriation must be matched by at least $30,000 of nonstate money.

(i) INTERACTIVE MULTIMEDIA COMPUTER INFORMATION SYSTEM45,000

This appropriation is from the future resources fund to the commissioner of trade and economic development, office of tourism, for an agreement with Explore Lake County, Inc. to develop a pilot multimedia interactive computer information system at the R. J. Houle visitor information center.

(j) UPPER SIOUX AGENCY STATE PARK 200,000

This appropriation to the commissioner of natural resources is from the future resources fund for bathroom and shower facilities at Upper Sioux Agency State Park.

(k) GRAIN BELT MISSISSIPPI RIVERFRONT DEVELOPMENT 500,000

This appropriation is from the future resources fund to the commissioner of natural resources for a contract with the metropolitan council for a subgrant to the Minneapolis park and recreation board, which shall cooperate with the Minneapolis community development agency to create riverfront recreational park and marina facilities through acquisition and development of Mississippi riverfront property. This appropriation is contingent on this facility being designated part of the metropolitan regional park and open space system. This appropriation is also contingent on the Guthrie theater's occupancy of the Grain Belt Brewery.

(l) WILDCAT REGIONAL PARK 40,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Houston county to construct an off-channel boat ramp on the Mississippi River, and wingwalls to protect the ramp and existing swimming beach.

Sec. 51. Laws 1995, chapter 220, section 19, subdivision 6, is amended to read:

Subd. 6. Environmental Education

(a) LEOPOLD EDUCATION PROJECT CURRICULUM 100,000

This appropriation is from the trust fund to the office of environmental assistance for an agreement with Pheasants Forever, Inc. to provide teacher training in the use of the Leopold education project conservation ethics curriculum. This appropriation must be matched by at least $50,000 of nonstate money.

(b) ENVIRONMENTAL EDUCATION TEACHER TRAINING500,000

This appropriation is from the trust fund to the office of environmental assistance in cooperation with the environmental education advisory board to develop and deliver statewide environmental education training for preservice and in-service teachers.

(c) SHARING ENVIRONMENTAL EDUCATION KNOWLEDGE200,000

This appropriation is from the trust fund to the office of environmental assistance in cooperation with the environmental education advisory board to plan and develop an information data exchange and service center that coordinates the collection, evaluation, dissemination, and promotion of environmental education resources and programs.

(d) ENVIRONMENTAL VIDEO RESOURCE LIBRARY AND

PUBLIC TELEVISION SERIES 250,000

This appropriation is from the future resources fund to the office of environmental assistance in cooperation with the environmental education advisory board for an agreement with Twin Cities Public Television to create a resource information center for environmental video and to produce and broadcast an environmental television series about Minnesota environmental achievements.

(e) DEVELOPMENT, ASSIMILATION, AND DISTRIBUTION

OF WOLF EDUCATIONAL MATERIALS 100,000

This appropriation is from the future resources fund to the office of environmental assistance for an agreement with the International Wolf Center to collect and develop written, electronic, and photographic audio-visual material about wolf ecology, recovery, and management for electronic distribution. This appropriation must be matched by at least $30,000 of nonstate money.

(f) ENVIRONMENTAL ACTION GRANTS FOR MINNESOTA SCHOOLS200,000

This appropriation is from the trust fund to the department of natural resources for an agreement with St. Olaf college for the school nature area project matching grants to schools for school area nature sites. This appropriation must be matched by at least $50,000 of nonstate money.

(g) ELECTRONIC ENVIRONMENTAL EDUCATION NETWORK250,000

This appropriation is from the future resources fund to the office of environmental assistance for an agreement with the University of Minnesota raptor center to develop a program for student participation in satellite-tracking research, data collection and dissemination using INTERNET, workshops, material development, and off-site classroom experience. This appropriation must be matched by at least $38,000 of nonstate money.

(h) THREE RIVERS INITIATIVE 750,000

This appropriation is from the future resources fund to the Science Museum of Minnesota to develop exhibits and programs focusing on the Mississippi, Minnesota, and St. Croix rivers.

(i) INTERACTIVE COMPUTER EXHIBIT ON MINNESOTA

RENEWABLE ENERGY SOURCES 150,000

This appropriation is from oil overcharge money to the commissioner of administration for an agreement with the Izaak Walton League of America, midwest office in cooperation with the Science Museum of Minnesota to develop and disseminate an interactive multimedia computer exhibit on renewable energy resources.

(j) TREES FOR TEENS: TRAINING, RESOURCES, EDUCATION,

EMPLOYMENT, SERVICE 75,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Twin Cities Tree Trust to develop a pilot program and curriculum materials for educating high school students about urban forestry and assisting them in carrying out peer education and community service projects. This project must be done in cooperation with the Minnesota releaf program.

(k) REDWOOD FALLS SCHOOL DISTRICT NO. 637

ENVIRONMENTAL EDUCATION PROJECT 250,000

This appropriation is from the future resources fund to the office of environmental assistance for an agreement with the Redwood Falls school district to accelerate development of an outdoor environmental learning center and to integrate environmental education into the K-12 curriculum. Project development will include prairie access improvements including a trail system, establishment of a wetland, and an arboretum.

(l) TOGETHER OUTDOORS MINNESOTA 575,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Wilderness Inquiry for diversity specialist training, training of outdoor service professionals to provide inclusive programming, and diversity networking, including the development of a directory of recreation facility accessibility. This appropriation must be matched by at least $80,000 of nonstate money.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(m) ENHANCED NATURAL RESOURCE OPPORTUNITIES FOR

ASIAN-PACIFIC MINNESOTANS 150,000

This appropriation is from the future resources fund to the commissioner of natural resources for the second biennium of funding for community outreach, cultural collaboration, training, and education to increase Asians' participation and understanding of natural resources management. Supplemental funding must be requested and the results reported to the legislative commission on Minnesota resources.

(n) DELIVER ECOLOGICAL INFORMATION AND TECHNICAL

ASSISTANCE TO LOCAL GOVERNMENTS 100,000

This appropriation is from the future resources fund to the commissioner of natural resources to provide interpretation of ecological data collected by the county biological survey.

(o) NONPOINT SOURCE POLLUTION PUBLIC EDUCATION

DEMONSTRATION PROJECT 100,000

This appropriation is from the future resources fund to the commissioner of the pollution control agency for an agreement with the city of St. Paul for a joint project with the city of Minneapolis to conduct surveys and develop and implement nonpoint source pollution public education. This appropriation must be matched by at least $12,000 of nonstate money.

(p) WHITETAIL DEER RESOURCE CENTER 50,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with the Minnesota Deer Hunters Association to develop a facility and operations plan. This appropriation must be matched by $50,000 of nonstate money.

(q) GORDON GULLION CHAIR IN FOREST WILDLIFE RESEARCH

AND EDUCATION 350,000

This appropriation is from the future resources fund to the University of Minnesota to establish an endowed chair in forest wildlife research and education to develop forest and wildlife sustainable management practices. This appropriation must be matched by at least $350,000 of nonstate money. This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(r) NEY ENVIRONMENTAL CENTER 100,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Le Sueur county to develop an environmental learning center in the Minnesota River Valley near Henderson. The appropriation shall be used to convert existing buildings to classrooms, add classroom and restroom facilities and, improve access, and remove unneeded structures.

(s) LAWNDALE ENVIRONMENTAL CENTER 400,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with Lawndale Environmental Foundation to develop an environmental learning center near Herman with emphasis on prairie, wetlands, and agricultural themes. This appropriation must be matched by at least $100,000 of nonstate money.

Sec. 52. Laws 1995, chapter 220, section 19, subdivision 10, is amended to read:

(a) RIM - ACCELERATE WILDLIFE LAND ACQUISITION650,000

$510,000 of this appropriation is from the trust fund and $140,000 is from the future resources fund to the commissioner of natural resources to accelerate acquisition activities in the reinvest in Minnesota program by acquiring land identified in North American waterfowl management plan project areas. This appropriation must first be used for projects qualifying for a match, which may include costs for acquisition, enhancements, and wetland restoration.

(b) RIM - ACCELERATE CRITICAL HABITAT MATCH PROGRAM 250,000

This appropriation is from the trust fund to the commissioner of natural resources to accelerate the reinvest in Minnesota program to acquire and improve critical habitat for game and nongame fish, wildlife, and native plants for activities authorized under Minnesota Statutes, section 84.943. Projects must occur in both urban and rural areas.

(c) RIM - ACCELERATE WILDLIFE HABITAT STEWARDSHIP 450,000

This appropriation is from the future resources fund to the commissioner of natural resources for improvement of wildlife habitat and natural plant communities statewide, both urban and rural public lands, to protect and enhance wildlife, native plant species, and ecological diversity.

(d) BIOMASS PRODUCTION, MANAGEMENT AND RESTORATION

OF BRUSHLAND HABITATS 200,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with the University of Minnesota-Duluth in cooperation with the natural resources research institute and the Minnesota Sharptailed Grouse Society to assess brushland harvesting, brushland as wildlife habitat, and habitat management strategies.

This project must be completed and final products delivered by December 31, 1997, and the appropriation is available until that date.

(e) TURN IN POACHERS YOUTH ACTIVITY BOOK 50,000

This appropriation is from the future resources fund to the commissioner of natural resources for an agreement with TIP, Inc. to print and disseminate an activity book to inform and educate children about poaching and its impact on natural resources, and to promote ethical hunting and fishing. This appropriation must be matched by at least $12,500 of nonstate money.

Sec. 53. Laws 1995, chapter 220, section 19, subdivision 19, is amended to read:

Subd. 19. Carryforward

(a) Except as provided in paragraph (b), the availability of the appropriations for the following projects is extended to December 31, 1995; on that date the appropriations cancel and no further payment is authorized, when projects must be completed and final products delivered: Laws 1993, chapter 172, section 14, subdivisions 3, paragraphs (a), (f), and (i); 6, paragraph (b); 9; 10, paragraphs (a), (c), (g), (p), (q), and (r); and 12, paragraphs (a), (b), (c), (h), (j), and (l).

(b) The availability of the appropriations for the following projects is extended to December 31, 1996; on that date the appropriations cancel and no further payment is authorized, when projects must be completed and final products delivered: (1) Laws 1993, chapter 172, section 14, subdivisions 3, paragraph (c); 4, paragraph (e); 10, paragraphs (d), (f), and (o); 12, paragraphs (f) and (g); in subdivision 10, paragraph (b), the Bloomington East and West Bush

Lake picnic areas; and, in subdivision 10, paragraph (c), Cedar Lake trail development and the Dakota North regional trail in South St. Paul; and (2) Laws 1994, chapter 632, article 2, section 6, local recreation grants and Silver Bay harbor.

Sec. 54. Laws 1995, chapter 254, article 1, section 93, is amended to read:

Sec. 93. [SPENDING LIMITATION ON CONTRACTS.]

(a) During the biennium ending June 30, 1997, the aggregate amount spent by all departments or agencies defined in Minnesota Statutes, section 15.91, subdivision 1, on professional or technical service contracts may not exceed 95 percent of the aggregate amount these departments or agencies spent on these contracts during the biennium from July 1, 1993, to June 30, 1995. For purposes of this section, professional or technical service contracts are as defined in Minnesota Statutes, section 16B.17, but do not include contracts for highway construction or maintenance, contracts between state agencies, contracts paid for from insurance trust funds, gift and deposit funds, capital projects funds, or federal funds, contracts with private collection agencies, contracts that are entered into in connection with the agency's distribution of grant funds, or contracts entered into under Minnesota Statutes, section 16B.35 or 115B.42, subdivision 2. The governor or a designated official must limit or disapprove proposed contracts as necessary to comply with this section.

(b) During the biennium ending June 30, 1997, the amount spent by (1) the house of representatives; (2) the senate; and (3) the legislative coordinating commission and all groups under its jurisdiction, from direct-appropriated funds on professional or technical service contracts may not exceed 95 percent of the amount spent on these contracts from direct-appropriated funds during the biennium from July 1, 1993, to June 30, 1995. Each entity listed in clauses (1), (2), and (3) of this paragraph must be treated separately for purposes of determining compliance with this paragraph, except that the legislative coordinating commission and all groups under its jurisdiction must be treated as one unit. For purposes of this paragraph, "professional or technical service contract" has the meaning defined in section 16B.17, but does not include contracts for actuarial services entered into by the legislative commission on pensions and retirement, or contracts with other legislative or state executive agencies. The house of representatives committee on rules and legislative administration, the senate committee on rules and administration, and the legislative coordinating commission must each determine the amount of the reduction to be made under this paragraph.

Sec. 55. [BRANDING ANIMALS; REPORT.]

By January 15, 1997, the board of animal health shall report to the senate agriculture and rural development committee and the house of representatives agriculture committee with recommendations for changes in Minnesota Statutes, sections 35.821 to 35.831, relating to the branding of live animals. The report must include specific recommendations on brand inspection requirements and whether the state should allow registration of brands that use technologies other than hot irons. In developing the recommendations, the board shall gather public input from buyers and sellers of live animals.

Sec. 56. [TACONITE DEPOSITION.]

Notwithstanding rules prohibiting discharge of waste into saturated zones or rules governing variance procedures, the pollution control agency may issue a permit for deposition of fine tailings from taconite processing facilities into taconite mine pits provided the proposer demonstrates through an environmental impact statement and risk assessment that the deposition will not pose an unreasonable risk of pollution or degradation of groundwater.

Sec. 57. [EFFECTIVE DATES.]

(a) Except as provided in paragraph (b), this act is effective the day following final enactment.

(b) Sections 12, 14, 25, 44, and 47 are effective July 1, 1996. Sections 36 and 38 are effective for 1997 state park permits. Section 18 is effective April 1, 1997, and applies to licenses issued for mobile food concession and retail mobile units beginning with the April 1, 1997, to March 31, 1998, period. License fees for the nine-month period July 1, 1996, to March 31, 1997, for mobile food concession and retail mobile units will be prorated at 75 percent of the fee schedule in effect on July 1, 1996, rounded to the nearest dollar. Section 28 applies to farm bulk milk pick-up tankers beginning on July 1, 1996."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money and adding and modifying provisions relating to the environment, natural resources, and agriculture; supplementing, reducing, and modifying earlier appropriations; providing for reports and fees; amending Minnesota Statutes 1994, sections 17.117, subdivision 3; 17B.15, subdivision 1; 18E.02, subdivision 5; 28A.04, subdivision 1; 28A.09, subdivision 1; 28A.15, subdivisions 7, 8, and by adding a subdivision; 28A.16; 28A.17; 32.21, subdivision 4; 32.394, subdivision 8d, and by adding a subdivision; 32.415; 35.821, subdivision 3, and by adding a subdivision; 85.015, by adding a subdivision; 85.053, subdivision 7; 85.054, by adding a subdivision; 85.055, subdivision 1; 94.16, subdivision 3; 97A.028, subdivisions 1 and 3; 103D.345, by adding a subdivision; 103G.405; and 161.1419, subdivision 2; Minnesota Statutes 1995 Supplement, sections 28A.03; 28A.08, subdivision 1; 85.015, subdivision 7; 85.019, subdivision 4a; 103F.725, subdivision 1a; and 446A.07, subdivision 8; Laws 1995, chapters 207, article 1, section 2, subdivision 7; 220, sections 5, subdivision 3; 19, subdivisions 4, 6, 10, and 19; and 254, article 1, section 93; proposing coding for new law in Minnesota Statutes, chapters 17; 21; and 103F."

We request adoption of this report and repassage of the bill.

Senate Conferees: Steven Morse, Gene Merriam, Leonard R. Price, Janet B. Johnson and Gary W. Laidig.

House Conferees: Chuck Brown, Doug Peterson, John J. Sarna, Virgil J. Johnson and Teresa Lynch.

Brown moved that the report of the Conference Committee on S. F. No. 2167 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2167, A bill for an act relating to the organization and operation of state government; appropriating money and modifying provisions relating to the environment, natural resources, and agriculture; supplementing, reducing, and modifying earlier appropriations; establishing a board; establishing an off-highway vehicle recreation area; authorizing and modifying state trails; providing for reports and fees; amending Minnesota Statutes 1994, sections 17.117, subdivision 3; 17B.15, subdivision 1; 18E.02, subdivision 5; 85.015, by adding a subdivision; 85.052, subdivision 3; 85.054, by adding a subdivision; 85.055, subdivision 1; 94.16, subdivision 3; and 97A.028, subdivision 3; Minnesota Statutes 1995 Supplement, sections 85.015, subdivision 7; 103F.725, subdivision 1a; and 446A.07, subdivision 8; Laws 1995, chapters 207, article 1, section 2, subdivision 7; 220, section 19, subdivisions 4, 6, 10, and 19; and 254, article 1, section 93; proposing coding for new law in Minnesota Statutes, chapters 17 and 21; repealing Laws 1995, chapter 224, section 18, subdivision 4.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 126 yeas and 5 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Opatz        Stanek
Anderson, B. Finseth      Koppendrayer Orenstein    Sviggum
Anderson, R. Frerichs     Kraus        Orfield      Swenson, D.
Bakk         Garcia       Larsen       Osskopp      Swenson, H.
Bertram      Girard       Leighton     Osthoff      Sykora
Bettermann   Goodno       Leppik       Ostrom       Tomassoni
Bishop       Greenfield   Lieder       Otremba      Tompkins
Boudreau     Greiling     Long         Ozment       Trimble
Bradley      Gunther      Lourey       Paulsen      Tuma
Broecker     Haas         Luther       Pawlenty     Tunheim
Brown        Hackbarth    Lynch        Pellow       Van Dellen
Carlson, L.  Harder       Macklin      Pelowski     Van Engen
Carlson, S.  Hasskamp     Mahon        Perlt        Vickerman
Carruthers   Hausman      Mares        Peterson     Wagenius
Clark        Holsten      Mariani      Pugh         Warkentin
Commers      Huntley      Marko        Rest         Weaver
Cooper       Jaros        McCollum     Rhodes       Wejcman
Dauner       Jefferson    McElroy      Rice         Wenzel
Davids       Johnson, A.  McGuire      Rostberg     Winter
Dawkins      Johnson, R.  Milbert      Rukavina     Wolf
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8931

Dehler       Johnson, V.  Molnau       Sarna        Worke
Delmont      Kahn         Mulder       Schumacher   Sp.Anderson,I
Dempsey      Kalis        Munger       Seagren      
Dorn         Kelley       Murphy       Skoglund     
Entenza      Kelso        Olson, E.    Smith        
Erhardt      Kinkel       Onnen        Solberg      

Knight       Lindner      Workman      
Krinkie      Olson, M.    

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2206, A bill for an act relating to education; removing mandates from higher education; requiring increased accountability and performance for funding; amending Minnesota Statutes 1994, sections 15.43, subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, and by adding a subdivision; 16B.35, by adding a subdivision; 16B.41, subdivision 2; 16B.482; 16B.49; 16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, subdivision 10; 135A.033; 135A.14, as amended; 137.37; 169.448, subdivision 2; 201.1611; and 248.07, subdivision 7; Minnesota Statutes 1995 Supplement, sections 16B.17, subdivision 6; 16B.465, subdivision 4; 43A.06, subdivision 1; 135A.181; 136A.101, subdivision 10; 136F.06, subdivisions 1 and 2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, subdivisions 1 and 3; 136F.58; 136F.71, by adding a subdivision; 136F.72, subdivision 3; 136F.80, subdivision 2; and 169.441, subdivision 5; Laws 1995, chapter 212, article 2, sections 15; and 20, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; and 136F; repealing Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota Statutes 1995 Supplement, sections 135A.08; 136F.25; and 136F.59, subdivision 1; Laws 1995, chapter 212, article 1, section 6, subdivision 1.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2478, A bill for an act relating to consumer protection; restricting the provision of immigration services; regulating notaries public; providing penalties; proposing coding for new law in Minnesota Statutes, chapters 325E; and 359.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2519, A bill for an act relating to the environment; increasing the amount of reimbursement available for cleanup of petroleum releases by certain responsible persons; amending Minnesota Statutes 1995 Supplement, section 115C.09, subdivision 3.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2834, A bill for an act relating to watercraft; modifying the requirements for operation of a motor boat by a youth; modifying the provisions for operation of a personal watercraft by a youth; amending Minnesota Statutes 1994, sections 86B.305, subdivisions 1 and 2; and 86B.313, subdivision 2.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Carruthers moved that the House recess subject to the call of the Chair. The motion prevailed.

The House reconvened and was called to order by the Speaker.

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 343.

H. F. No. 343 was reported to the House.

Abrams and Carruthers moved to amend H. F. No. 343, the third engrossment, as follows:

Page 6, line 23, before the period, insert ", except as otherwise provided in section 211C.09"

Page 6, line 24, before the period insert ", except as otherwise provided in section 211C.09"

Page 7, line 9, after the period insert "If the court dismisses a petition under this section, the court may assess the sponsors for reasonable costs of conducting the proceeding and reasonable attorney fees and expenses incurred by the officer named in the petition. The court may require the sponsors to file a bond at the time of the appointment of a special master, as security for amounts that may be assessed against them."

The motion prevailed and the amendment was adopted.

On the motion of Carruthers and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams       Entenza      Knoblach     Olson, E.    Stanek
Anderson, B. Erhardt      Koppendrayer Olson, M.    Sviggum
Anderson, R. Finseth      Kraus        Onnen        Swenson, D.
Bakk         Frerichs     Krinkie      Opatz        Swenson, H.
Bertram      Girard       Larsen       Orenstein    Sykora
Bettermann   Goodno       Leighton     Orfield      Tomassoni
Bishop       Greenfield   Leppik       Osskopp      Tompkins
Boudreau     Greiling     Lindner      Ostrom       Tuma
Bradley      Gunther      Long         Otremba      Van Dellen
Broecker     Haas         Lourey       Ozment       Van Engen
Brown        Hackbarth    Luther       Paulsen      Vickerman
Carlson, L.  Harder       Lynch        Pawlenty     Warkentin
Carlson, S.  Hasskamp     Macklin      Pellow       Weaver
Carruthers   Hausman      Mahon        Pelowski     Wejcman
Clark        Huntley      Mares        Perlt        Wenzel
Commers      Jaros        Mariani      Peterson     Winter
Cooper       Jefferson    Marko        Rest         Wolf
Dauner       Jennings     McCollum     Rhodes       Worke
Davids       Johnson, R.  McElroy      Rukavina     Workman
Dawkins      Kahn         McGuire      Schumacher   Sp.Anderson,I
Dehler       Kelley       Milbert      Seagren      
Delmont      Kelso        Mulder       Skoglund     
Dempsey      Kinkel       Munger       Smith        
Dorn         Knight       Murphy       Solberg      

Sviggum offered an amendment to H. F. No. 343, the third engrossment, as amended.

Carruthers raised a point of order pursuant to rule 3.09 that the Sviggum amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Sviggum appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the procedural question "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called. There were 67 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       Kelso        Murphy       Sarna
Bakk         Greenfield   Kinkel       Olson, E.    Schumacher
Bertram      Greiling     Leighton     Opatz        Skoglund
Brown        Hasskamp     Lieder       Orenstein    Solberg
Carlson, L.  Hausman      Long         Orfield      Tomassoni
Carruthers   Huntley      Lourey       Osthoff      Trimble
Clark        Jaros        Luther       Ostrom       Tunheim
Cooper       Jefferson    Mahon        Otremba      Wejcman
Dauner       Jennings     Mariani      Perlt        Wenzel
Dawkins      Johnson, A.  Marko        Peterson     Winter
Delmont      Johnson, R.  McCollum     Pugh         Sp.Anderson,I
Dorn         Kahn         McGuire      Rest         
Entenza      Kalis        Milbert      Rice         
Farrell      Kelley       Munger       Rukavina     

Abrams       Finseth      Kraus        Osskopp      Swenson, H.
Anderson, B. Frerichs     Krinkie      Ozment       Sykora
Bettermann   Girard       Larsen       Paulsen      Tompkins
Bishop       Goodno       Leppik       Pawlenty     Tuma
Boudreau     Gunther      Lindner      Pellow       Van Dellen
Bradley      Haas         Lynch        Pelowski     Van Engen
Broecker     Hackbarth    Macklin      Rhodes       Vickerman
Carlson, S.  Harder       Mares        Rostberg     Warkentin
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8934

Commers      Holsten      McElroy      Seagren      Weaver
Davids       Johnson, V.  Molnau       Smith        Wolf
Dehler       Knight       Mulder       Stanek       Worke
Dempsey      Knoblach     Olson, M.    Sviggum      Workman 
Erhardt      Koppendrayer Onnen        Swenson, D.  

Sviggum offered an amendment to H. F. No. 343, the third engrossment, as amended.

Carruthers raised a point of order pursuant to rule 3.09 that the Sviggum amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Abrams moved to amend H. F. No. 343, the third engrossment, as amended, as follows:

Page 3, line 7, after "means" insert ": (1)"

Page 3, line 9, before the period, insert "; or (2) a misdemeanor violation of any of the following criminal laws: section 609.224, 609.2242, or 609.2672 (assault); 609.563, or 609.66, (intentional injury or intentional threat of injury to person or public safety); 609.45, 609.465, 609.466, 609.5051, 609.506, 609.507, 609.51, 609.52, 609.526, 609.535, 609.545, 609.65, 609.82, or 609.89 (dishonesty); 609.27 or 609.275 (coercion); 609.746, 609.748, 609.79, 609.795, or 518B.01 (harassment); 609.324 or 617.23 (sexual misconduct); 609.50 (obstruction of justice); or 152.027 (possession of controlled substances)"

The motion did not prevail and the amendment was not adopted.

Sviggum offered an amendment to H. F. No. 343, the third engrossment, as amended.

Carruthers raised a point of order pursuant to rule 3.09 that the Sviggum amendment was not in order. The Speaker ruled the point of order well taken and the amendment out of order.

Sviggum appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the procedural question "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called. There were 69 yeas and 63 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       Kelso        Murphy       Rukavina
Bakk         Greenfield   Kinkel       Olson, E.    Sarna
Bertram      Greiling     Leighton     Opatz        Schumacher
Brown        Hasskamp     Lieder       Orenstein    Skoglund
Carlson, L.  Hausman      Long         Orfield      Solberg
Carruthers   Huntley      Lourey       Osthoff      Tomassoni
Clark        Jaros        Luther       Ostrom       Trimble
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8935

Cooper       Jefferson    Mahon        Otremba      Tunheim
Dauner       Jennings     Mariani      Pelowski     Wagenius
Dawkins      Johnson, A.  Marko        Perlt        Wejcman
Delmont      Johnson, R.  McCollum     Peterson     Wenzel
Dorn         Kahn         McGuire      Pugh         Winter
Entenza      Kalis        Milbert      Rest         Sp.Anderson,I
Farrell      Kelley       Munger       Rice         

Abrams       Finseth      Kraus        Osskopp      Sykora
Anderson, B. Frerichs     Krinkie      Ozment       Tompkins
Bettermann   Girard       Larsen       Paulsen      Tuma
Bishop       Goodno       Leppik       Pawlenty     Van Dellen
Boudreau     Gunther      Lindner      Pellow       Van Engen
Bradley      Haas         Lynch        Rhodes       Vickerman
Broecker     Hackbarth    Macklin      Rostberg     Warkentin
Carlson, S.  Harder       Mares        Seagren      Weaver
Commers      Holsten      McElroy      Smith        Wolf
Davids       Johnson, V.  Molnau       Stanek       Worke
Dehler       Knight       Mulder       Sviggum      Workman 
Dempsey      Knoblach     Olson, M.    Swenson, D.  
Erhardt      Koppendrayer Onnen        Swenson, H.  

Farrell moved to amend H. F. No. 343, the third engrossment, as amended, as follows:

Page 1, line 17, delete the first comma and insert "or" and delete ", or a district court"

Page 3, line 29, delete the first comma and insert "or" and delete "or district judge,"

Page 7, lines 33 and 34, delete "or a district judge"

The motion prevailed and the amendment was adopted.

Carruthers and Abrams moved to amend H. F. No. 343, the third engrossment, as amended, as follows:

Page 10, after line 34, insert:

"A vacancy in the legislature caused by a recall election shall be filled by a special election in the manner and at the times provided by chapter 204D, except as otherwise provided by this section. If a vacancy occurs between August 1 and September 30, or after adjournment sine die if the vacancy is for an office which will be filled in a statewide general election in that year, the special election must be held the Tuesday following the first Monday in November."

The motion prevailed and the amendment was adopted.

Dawkins and Ostrom moved to amend H. F. No. 343, the third engrossment, as amended, as follows:

Page 1, line 21, delete "serious" and before the period, insert "that is punished as a gross misdemeanor or felony"

Page 3, delete lines 7 to 9

Renumber the subdivisions in order

A roll call was requested and properly seconded.

The question was taken on the Dawkins and Ostrom amendment and the roll was called. There were 41 yeas and 91 nays as follows:

Those who voted in the affirmative were:

Bakk         Greiling     Kinkel       Osthoff      Trimble
Bertram      Hausman      Leighton     Ostrom       Tunheim
Brown        Huntley      Lourey       Perlt        Wejcman
JOURNAL OF THE HOUSE - 106th Day - Top of Page 8936

Carlson, L.  Jaros        Mariani      Rice         Winter
Clark        Jefferson    McGuire      Rukavina     Sp.Anderson,I
Dawkins      Johnson, A.  Munger       Sarna        
Farrell      Johnson, R.  Murphy       Skoglund     
Garcia       Kahn         Opatz        Solberg      
Greenfield   Kelley       Orfield      Tomassoni    

Abrams       Erhardt      Krinkie      Onnen        Swenson, D.
Anderson, B. Finseth      Larsen       Orenstein    Swenson, H.
Anderson, R. Frerichs     Leppik       Osskopp      Sykora
Bettermann   Girard       Lieder       Otremba      Tompkins
Bishop       Goodno       Lindner      Ozment       Tuma
Boudreau     Gunther      Long         Paulsen      Van Dellen
Bradley      Haas         Luther       Pawlenty     Van Engen
Broecker     Hackbarth    Lynch        Pellow       Vickerman
Carlson, S.  Harder       Macklin      Pelowski     Wagenius
Carruthers   Hasskamp     Mahon        Peterson     Warkentin
Commers      Holsten      Mares        Pugh         Weaver
Cooper       Jennings     Marko        Rest         Wenzel
Dauner       Johnson, V.  McCollum     Rhodes       Wolf
Davids       Kalis        McElroy      Rostberg     Worke
Dehler       Kelso        Milbert      Schumacher   Workman 
Delmont      Knight       Molnau       Seagren      
Dempsey      Knoblach     Mulder       Smith        
Dorn         Koppendrayer Olson, E.    Stanek       
Entenza      Kraus        Olson, M.    Sviggum      

H. F. No. 343, A bill for an act proposing an amendment to the Minnesota Constitution, article VIII, by adding a section; providing for recall of elected state officers; amending Minnesota Statutes 1994, section 200.01; proposing coding for new law as Minnesota Statutes, chapter 211C.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 115 yeas and 17 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Kelso        Mulder       Seagren
Anderson, B. Frerichs     Kinkel       Murphy       Skoglund
Anderson, R. Garcia       Knoblach     Olson, E.    Smith
Bertram      Girard       Koppendrayer Onnen        Stanek
Bettermann   Goodno       Kraus        Opatz        Sviggum
Bishop       Greenfield   Larsen       Orenstein    Swenson, D.
Boudreau     Greiling     Leighton     Osskopp      Swenson, H.
Bradley      Gunther      Leppik       Osthoff      Sykora
Broecker     Haas         Lieder       Ostrom       Tompkins
Brown        Hackbarth    Lindner      Otremba      Trimble
Carlson, L.  Harder       Long         Ozment       Tuma
Carlson, S.  Hasskamp     Lourey       Paulsen      Tunheim
Carruthers   Hausman      Luther       Pawlenty     Van Dellen
Commers      Holsten      Lynch        Pellow       Van Engen
Cooper       Huntley      Macklin      Pelowski     Vickerman
Dauner       Jefferson    Mahon        Perlt        Wagenius
Dehler       Jennings     Mares        Peterson     Warkentin
Delmont      Johnson, A.  Marko        Pugh         Weaver
Dempsey      Johnson, R.  McCollum     Rest         Wenzel
Dorn         Johnson, V.  McElroy      Rhodes       Winter
Entenza      Kahn         McGuire      Rostberg     Wolf
Erhardt      Kalis        Milbert      Sarna        Worke
Farrell      Kelley       Molnau       Schumacher   Workman 

Bakk         Jaros        Munger       Rukavina     Sp.Anderson,I
Clark        Knight       Olson, M.    Solberg      
Davids       Krinkie      Orfield      Tomassoni    
Dawkins      Mariani      Rice         Wejcman      

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 1567, A bill for an act relating to public funds; regulating the deposit and investment of these funds, and agreements related to these funds; requiring a study; amending Minnesota Statutes 1994, section 6.745; proposing coding for new law as Minnesota Statutes, chapter 118A; repealing Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66; and 475.76.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2171, A bill for an act relating to state government; clarifying powers of the pollution control agency board and commissioner; amending Minnesota Statutes 1994, sections 116.03, as amended; and 514.673, subdivision 3; Minnesota Statutes 1995 Supplement, section 116.02, by adding subdivisions.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2375, A bill for an act relating to local improvements; prohibiting fees for preparing certain reports from being based primarily on the estimated cost of improvement; amending Minnesota Statutes 1994, section 429.031, subdivision 1.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2580, A bill for an act relating to game and fish; modifying restrictions for nonresident fish houses; amending Minnesota Statutes 1994, section 97C.355, subdivision 6.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2752, A bill for an act relating to consumer protection; providing for the licensing and regulation of pawnbrokers; providing penalties; amending Minnesota Statutes 1994, sections 471.924, subdivision 1; 471.925; and 471.927; proposing coding for new law as Minnesota Statutes, chapter 325J; repealing Minnesota Statutes 1994, section 609.81.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2782, A bill for an act relating to local government; providing for creation of an advisory council on intergovernmental relations; proposing coding for new law in Minnesota Statutes, chapter 15.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 66, A bill for an act relating to occupations and professions; establishing the board of licensed professional counseling; requiring professional counselors to be licensed; requiring certain actions against occupational therapists to be commenced within two years; providing certain exceptions from X-ray operation examination requirements; requiring rulemaking; providing penalties; appropriating money; amending Minnesota Statutes 1994, sections 148A.01, subdivision 5; 541.07; and 609.341, subdivision 17; Minnesota Statutes 1995 Supplement, sections 116J.70, subdivision 2a; 144.121, subdivision 5; 148B.60, subdivision 3; 214.01, subdivision 2; and 214.04, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 148B.

The Senate has appointed as such committee:

Mr. Solon; Ms. Piper and Mr. Day.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 2493, A bill for an act relating to retirement; modifying provisions of various local pension plans; making miscellaneous benefit and administrative changes; amending Minnesota Statutes 1994, sections 353B.11, subdivisions 1

and 3; and 353B.13; Laws 1965, chapter 519, section 1, as amended; Laws 1992, chapter 563, section 5; Laws 1994, chapter 490, section 2; and Laws 1995, chapter 262, article 7, section 1.

The Senate has appointed as such committee:

Messrs. Morse, Terwilliger and Stumpf.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 2104, A bill for an act relating to the environment; modifying requirements relating to toxics in products; amending Minnesota Statutes 1994, section 115A.9651, as amended.

The bill was read for the first time.

Johnson, V., moved that S. F. No. 2104 and H. F. No. 2865, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

Lieder moved that the call of the House be suspended. The motion prevailed and it was so ordered.

Krinkie moved that his name be stricken as an author on H. F. No. 87. The motion prevailed.

Dawkins moved that his name be stricken as an author on H. F. No. 3123. The motion prevailed.

Dawkins moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the final passage of H. F. No. 637, as amended." The motion prevailed.

Johnson, V., moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of H. F. No. 2163, as amended by the Senate." The motion prevailed.

Rest moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of H. F. No. 2163, as amended by the Senate." The motion prevailed.

Wagenius moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of H. F. No. 2818, as amended by Conference." The motion prevailed.

Johnson, V., moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of H. F. No. 2841, as amended by the Senate." The motion prevailed.

Ozment moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of S. F. No. 2194, as amended by Conference." The motion prevailed.

Hasskamp moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Friday, March 22, 1996, when the vote was taken the repassage of S. F. No. 2849, as amended by Conference." The motion prevailed.

Larsen moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of S. F. No. 2857, as amended by Conference." The motion prevailed.

Mares moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 21, 1996, when the vote was taken on the repassage of S. F. No. 2857, as amended by Conference." The motion prevailed.

Johnson, V., moved that H. F. No. 3241 be returned to its author. The motion prevailed.

Wenzel, Kraus, Finseth, Peterson and Molnau introduced:

House Resolution No. 12, A house resolution commending Minnesota farmers and Minnesota agribusiness.

The resolution was referred to the Committee on Rules and Legislative Administration.

The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 637:

Jennings, Milbert and Wolf.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1980:

Osthoff, Tomassoni and Worke.

Carruthers moved that when the House adjourns today it adjourn until 10:00 a.m., Wednesday, March 27, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 10:00 a.m., Wednesday, March 27, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives

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