HF 3179

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for general education revenue, education
excellence, special programs, accounting, self-sufficiency and lifelong learning,
and state agencies; authorizing rulemaking; amending Minnesota Statutes 2004,
sections 119A.50, subdivision 1; 119A.52; 119A.53; 119A.545; 120A.20,
subdivision 1; 120A.22, subdivision 3; 120B.023; 120B.024; 123A.06,
subdivision 2; 123B.10, subdivision 1; 124D.02, subdivisions 2, 4; 124D.10,
subdivision 16; 124D.518, subdivision 4; 124D.52, subdivision 1; 124D.61;
124D.68, subdivision 3; 125A.02, subdivision 1; 125A.27, subdivision 11;
125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 125A.515, subdivisions 1, 3, 5,
6, 7, 9, 10; 125A.63, subdivision 4; 125A.69, subdivision 3; 125A.75, subdivision
1; 126C.05, subdivision 1; 126C.10, subdivision 6; 126C.44; Minnesota Statutes
2005 Supplement, sections 121A.53, subdivision 1; 122A.415, subdivisions 1,
3; 123B.76, subdivision 3; 124D.095, subdivision 4; 124D.68, subdivision 2;
125A.11, subdivision 1; 126C.43, subdivision 2; 127A.45, subdivision 10; Laws
2005, First Special Session chapter 5, article 2, sections 81; 84, subdivision 13;
article 7, section 20, subdivision 5; proposing coding for new law in Minnesota
Statutes, chapter 119A; repealing Minnesota Statutes 2004, sections 119A.51;
120A.20, subdivision 3; 125A.10; 125A.515, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION REVENUE

Section 1.

Minnesota Statutes 2004, section 120A.20, subdivision 1, is amended to
read:

Subdivision 1.

Age limitations; pupils.

new text begin (a) new text end All schools supported in whole or in
part by state funds are public schools. Admission to a public school is free to any person
who new text begin : (1) new text end resides within the district that operates the school deleted text begin , who deleted text end new text begin ; (2) new text end is under 21 years of
age deleted text begin , deleted text end new text begin or who meet the requirements of paragraph (c); new text end and deleted text begin who deleted text end new text begin (3) new text end 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 is governed by a single set of reasonable rules and regulations promulgated by the
school board.

deleted text begin No deleted text end new text begin (b) A new text end person shall new text begin not new text end be admitted to deleted text begin any deleted text end new text begin a new text end 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.

new text begin (c) A pupil who becomes age 21 after enrollment is eligible for continued free public
school enrollment until at least one of the following occurs: (1) the first September 1 after
the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
the end of the school year.
new text end

Sec. 2.

Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 1, is
amended to read:

Subdivision 1.

Revenue amount.

(a) A school district, intermediate school district,
school site, or charter school that meets the conditions of section 122A.414 and submits an
application approved by the commissioner is eligible for alternative teacher compensation
revenue.

(b) For school district and intermediate school district applications, the commissioner
must consider only those applications to participate that are submitted jointly by a
district and the exclusive representative of the teachers. The application must contain an
alternative teacher professional pay system agreement that:

(1) implements an alternative teacher professional pay system consistent with
section 122A.414; and

(2) is negotiated and adopted according to the Public Employment Labor Relations
Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
district may enter into a contract for a term of two or four years.

Alternative teacher compensation revenue for a qualifying school district or site in
which the school board and the exclusive representative of the teachers agree to place
teachers in the district or at the site on the alternative teacher professional pay system
equals $260 times the number of pupils enrolled at the district or site on October 1 of
the previous fiscal year. Alternative teacher compensation revenue for a qualifying
intermediate school district must be calculated under section 126C.10, subdivision 34,
paragraphs (a) and (b).

(c) For a newly combined or consolidated district, the revenue shall be computed
using the sum of pupils enrolled on October 1 of the previous year in the districts entering
into the combination or consolidation. The commissioner may adjust the revenue
computed for a site using prior year data to reflect changes attributable to school closings,
school openings, or grade level reconfigurations between the prior year and the current
year.

(d) The revenue is available only to school districts, intermediate school districts,
school sites, and charter schools that fully implement an alternative teacher professional
pay system by October 1 of the current school year.

new text begin (e) The revenue must be maintained in a reserve account within the general fund.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 3, is
amended to read:

Subd. 3.

Revenue timing.

(a) Districts, intermediate school districts, school sites,
or charter schools with approved applications must receive alternative compensation
revenue for each school year that the district, intermediate school district, school site,
or charter school implements an alternative teacher professional pay system under this
subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district,
intermediate school district, school site, or charter school that received alternative teacher
compensation aid for the previous fiscal year must receive at least an amount of alternative
teacher compensation revenue equal to the lesser of the amount it received for the previous
fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if
the district, intermediate school district, school site, or charter school submits a timely
application and the commissioner determines that the district, intermediate school district,
school site, or charter school continues to implement an alternative teacher professional
pay system, consistent with its application under this section.

(b) The commissioner shall approve applications that comply with subdivision 1,
and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter
school, in the order in which they are received, select applicants that qualify for this
program, notify school districts, intermediate school districts, school sites, and charter
schools about the program, develop and disseminate application materials, and carry out
other activities needed to implement this section.

(c) For applications approved under this section before August 1 of the fiscal year for
which the aid is paid, the portion of the state total basic alternative teacher compensation
aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006
and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state
total basic alternative teacher compensation aid entitlement allocated to charter schools
must not exceed the product of $3,374,000 times the ratio of the state total charter school
enrollment for the previous fiscal year to the state total charter school enrollment for deleted text begin the
second previous year deleted text end new text begin fiscal year 2006 new text end . Additional basic alternative teacher compensation
aid may be approved for charter schools after August 1, not to exceed the charter school
limit for the following fiscal year, if the basic alternative teacher compensation aid
entitlement for school districts new text begin and intermediate school districts new text end based on applications
approved by August 1 does not expend the remaining amount under the limit.

Sec. 4.

Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:

Subd. 2.

People to be served.

A center shall provide programs for secondary
pupils and adults. A center may also provide programs and services for elementary and
secondary pupils who are not attending the center to assist them in being successful in
school. A center shall use research-based best practices for serving limited English
proficient students and their parents. An individual education plan team may identify a
center as an appropriate placement to the extent a center can provide the student with the
appropriate special education services described in the student's plan. Pupils eligible to
be served are those deleted text begin age five to adults 22 and older deleted text end who qualify under the graduation
incentives program in section 124D.68, subdivision 2, new text begin those enrolled under section
124D.02, subdivision 2, new text end or those pupils who are eligible to receive special education
services under sections 125A.03 to 125A.24, and 125A.65.

Sec. 5.

Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is
amended to read:

Subd. 3.

Expenditures by building.

(a) For the purposes of this section, "building"
means education site as defined in section 123B.04, subdivision 1.

(b) Each district shall maintain separate accounts to identify general fund
expenditures for each building. All expenditures for regular instruction, secondary
vocational instruction, and school administration must be reported to the department
separately for each building. All expenditures for special education instruction,
instructional support services, and pupil support services provided within a specific
building must be reported to the department separately for each building. Salary
expenditures reported by building must reflect actual salaries for staff at the building and
must not be based on districtwide averages. All other general fund expenditures may be
reported by building or on a districtwide basis.

(c) The department must annually report information showing school district general
fund expenditures per pupil by program category for each building and estimated school
district general fund revenue generated by pupils attending each building on its Web
site. For purposes of this report:

(1) expenditures not reported by building shall be allocated among buildings on a
uniform per pupil basis;

(2) basic skills revenue shall be allocated according to section 126C.10, subdivision
4;

(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated
according to section 126C.10, subdivisions 7 and 8;

(4) new text begin alternative teacher compensation revenue shall be allocated according to section
122A.415, subdivision 1;
new text end

new text begin (5) new text end other general education revenue shall be allocated on a uniform per pupil unit
basis;

deleted text begin (5) deleted text end new text begin (6) new text end first grade preparedness aid shall be allocated according to section 124D.081;

deleted text begin (6) deleted text end new text begin (7) new text end state and federal special education aid and Title I aid shall be allocated in
proportion to district expenditures for these programs by building; and

deleted text begin (7) deleted text end new text begin (8) new text end other general fund revenues shall be allocated on a uniform per pupil basis,
except that the department may allocate other revenues attributable to specific buildings
directly to those buildings.

Sec. 6.

Minnesota Statutes 2004, section 124D.02, subdivision 2, is amended to read:

Subd. 2.

Secondary school programs.

The board may permit a person who is over
the age of 21 or who has graduated from high school to enroll deleted text begin as a part-time student deleted text end in a
class or program at a secondary school if there is space available. In determining if there is
space available, deleted text begin full-time deleted text end public school students deleted text begin , deleted text end new text begin eligible for free enrollment under section
120A.20, subdivision 1, and new text end shared-time students new text begin shall be given priority over students
seeking enrollment pursuant to this subdivision new text end , and students returning to complete a
regular course of study shall be given priority over deleted text begin part-time deleted text end new text begin other new text end students seeking
enrollment pursuant to this subdivision. The following are not prerequisites for enrollment:

(1) residency in the school district;

(2) United States citizenship; or

(3) for a person over the age of 21, a high school diploma or equivalency certificate.
A person may enroll in a class or program even if that person attends evening school, an
adult or continuing education, or a postsecondary educational program or institution.

Sec. 7.

Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:

Subd. 4.

Part-time student fee.

Notwithstanding the provisions of sections
120A.20 and 123B.37, a board may charge a deleted text begin part-time deleted text end student new text begin enrolled pursuant to
subdivision 2 new text end a reasonable fee for a class or program.

Sec. 8.

Minnesota Statutes 2005 Supplement, section 124D.68, subdivision 2, is
amended to read:

Subd. 2.

Eligible pupils.

deleted text begin The following pupils are deleted text end new text begin A pupil under the age of 21 or
who meets the requirements of section 120A.20, subdivision 1, paragraph (c), is new text end eligible to
participate in the graduation incentives program deleted text begin :
deleted text end

deleted text begin (a) any pupil under the age of 21 who deleted text end new text begin , if the pupil new text end :

(1) performs substantially below the performance level for pupils of the same age
in a locally determined achievement test;

(2) is at least one year behind in satisfactorily completing coursework or obtaining
credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been referred by a school district for enrollment in an eligible program or
a program pursuant to section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a
transfer to an eligible program;

(10) speaks English as a second language or has limited English proficiency; or

(11) has withdrawn from school or has been chronically truant deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (b) any person who is at least 21 years of age and who:
deleted text end

deleted text begin (1) has received fewer than 14 years of public or nonpublic education, beginning
at age 5;
deleted text end

deleted text begin (2) has not completed the requirements for a high school diploma; and
deleted text end

deleted text begin (3) at the time of application, (i) is eligible for unemployment benefits or has
exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support
services, as defined in section deleted text begin 116L.19, subdivision 5 deleted text end , or (iii) is eligible for services under
the displaced homemaker program or any programs under the federal Jobs Training
Partnership Act or its successor.
deleted text end

Sec. 9.

Minnesota Statutes 2004, section 124D.68, 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 123A.05 to 123A.08.

(b) A pupil who is eligible according to subdivision 2 and who is between the ages
of 16 and 21 may enroll in postsecondary courses under section 124D.09.

(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary
or secondary education program. deleted text begin 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.
deleted text end

(d) A pupil who is eligible under subdivision 2, may enroll in any 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 124D.52 and operated under the community
education program contained in section 124D.19.

Sec. 10.

Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil new text begin under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c), new text end in average daily membership enrolled in the district of residence, in another district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68;
in a charter school under section 124D.10; or for whom the resident district pays tuition
under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, 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 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(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 times 1.25.

(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 .557 of a
pupil unit for fiscal year 2000 and thereafter.

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

Sec. 11.

Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:

Subd. 6.

Definitions.

The definitions in this subdivision apply only to subdivisions
7 and 8.

(a) "High school" means a new text begin public new text end secondary school new text begin , except a charter school under
section 124D.10, new text end that has pupils enrolled in at least the 10th, 11th, and 12th grades. If
there is no deleted text begin secondary deleted text end new text begin high new text end school in the district deleted text begin that has pupils enrolled in at least the
10th, 11th, and 12th grades, deleted text end and the school is at least 19 miles from the next nearest
school, the commissioner must designate one school in the district as a high school for the
purposes of this section.

(b) "Secondary average daily membership" means, for a district that has only one
high school, the average daily membership of pupils served in grades 7 through 12. For a
district that has more than one high school, "secondary average daily membership" for
each high school means the product of the average daily membership of pupils served in
grades 7 through 12 in the high school, times the ratio of six to the number of grades
in the high school.

(c) "Attendance area" means the total surface area of the district, in square miles,
divided by the number of high schools in the district. For a district that does not operate
a high school and is less than 19 miles from the nearest operating high school, the
attendance area equals zero.

(d) "Isolation index" for a high school means the square root of 55 percent of the
attendance area plus the distance in miles, according to the usually traveled routes,
between the high school and the nearest high school. For a district in which there is located
land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of:

(1) the square root of one-half of the attendance area; and

(2) the distance from the border of the district to the nearest high school.

(e) "Qualifying high school" means a high school that has an isolation index greater
than 23 and that has secondary average daily membership of less than 400.

(f) "Qualifying elementary school" means deleted text begin an deleted text end new text begin a public new text end elementary school new text begin , except a
charter school under section 124D.10, new text end that is located 19 miles or more from the nearest
elementary school or from the nearest elementary school within the district and, in either
case, has an elementary average daily membership of an average of 20 or fewer per grade.

(g) "Elementary average daily membership" means, for a district that has only
one elementary school, the average daily membership of pupils served in kindergarten
through grade 6. For a district that has more than one elementary school, "average daily
membership" for each school means the average daily membership of pupils served in
kindergarten through grade 6 multiplied by the ratio of seven to the number of grades
in the elementary school.

Sec. 12.

Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is
amended to read:

Subd. 2.

Payment to unemployment insurance program trust fund by state
and political subdivisions.

new text begin (a) new text end A district may levy the amount necessary deleted text begin (i) deleted text end new text begin (1) new text end to pay
the district's obligations under section 268.052, subdivision 1, and deleted text begin (ii) deleted text end new text begin (2) new text end to pay for job
placement services offered to employees who may become eligible for benefits pursuant
to section 268.085 for the fiscal year the levy is certified.

new text begin (b) Districts with a balance remaining in their reserve for reemployment as of June
30, 2003, may not expend the reserved funds for future reemployment expenditures. Each
year a levy reduction must be made to return these funds to taxpayers. The amount of
the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for
reemployment, or (2) the amount of the district's current levy under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2004, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

Each district may make a levy on all taxable property located within the district for
the purposes specified in this section. The maximum amount which may be levied for all
costs under this section shall be equal to $27 multiplied by the district's adjusted marginal
cost pupil units for the school year. The proceeds of the levy must be new text begin reserved and new text end used
for directly funding the following purposes or for reimbursing the cities and counties who
contract with the 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 in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; (3)
to pay the costs for a gang resistance education training curriculum in the district's schools;
(4) to pay the costs for security in the district's schools and on school property; or (5) to
pay the costs for other crime prevention, drug abuse, student and staff safety, and violence
prevention measures taken by the school district. new text begin For expenditures under clause (1), new text end the
district must initially attempt to contract for services to be provided by peace officers or
sheriffs with the police department of each city or the sheriff's department of the county
within the 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. deleted text begin The levy authorized
under this section is not included in determining the school district's levy limitations. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2006.
new text end

Sec. 14.

Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10,
is amended to read:

Subd. 10.

Payments to school nonoperating funds.

Each fiscal year state general
fund payments for a district nonoperating fund must be made at the current year aid
payment percentage of the estimated entitlement during the fiscal year of the entitlement.
This amount shall be paid in 12 equal monthly installments. The amount of the actual
entitlement, after adjustment for actual data, minus the payments made during the fiscal
year of the entitlement must be paid prior to October 31 of the following school year. The
commissioner may make advance payments of debt service equalization aid new text begin and state-paid
tax credits new text end for a district's debt service fund earlier than would occur under the preceding
schedule if the district submits evidence showing a serious cash flow problem in the fund.
The commissioner may make earlier payments during the year and, if necessary, increase
the percent of the entitlement paid to reduce the cash flow problem.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 120A.20, subdivision 3, new text end new text begin is repealed.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to
read:

Subd. 3.

Parent defined; residency determined.

(a) In this section and sections
120A.24 and 120A.26, "parent" means a parent, guardian, or other person having legal
custody of a child.

(b) In sections 125A.03 to 125A.24 and 125A.65, "parent" means a parent, guardian,
or other person having legal custody of a child under age 18. For an unmarried pupil age
18 or over, "parent" means the pupil unless a guardian or conservator has been appointed,
in which case it means the guardian or conservator.

(c) For purposes of sections 125A.03 to 125A.24 and 125A.65, the school district of
residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and
who is placed in a center for care and treatment, shall be the school district in which the
pupil's biological or adoptive parent or designated guardian resides.

(d) For a married pupil age 18 or over, the school district of residence is the school
district in which the married pupil resides.

new text begin (e) If a district suspects that a student does not meet the residency requirements of the
school district in which the student is attending school, the student may be removed from
the school only after the district sends the student's parents written notice of the district's
suspicion, including the facts upon which the suspicion is based, and an opportunity to
provide documentary evidence of residency in person to the superintendent or designee,
or, at the option of the parents, by sending the documentary evidence to the superintendent
or a designee, who will then make a determination as to the residency status of the student.
new text end

Sec. 2.

Minnesota Statutes 2004, section 120B.023, is amended to read:

120B.023 BENCHMARKS.

new text begin Subdivision 1. new text end

new text begin Benchmarks implement, supplement statewide academic
standards. new text end

(a) The commissioner must supplement required state academic standards with
grade-level benchmarks. High school benchmarks may cover more than one grade. The
benchmarks must implement statewide academic standards by specifying the academic
knowledge and skills that schools must offer and students must achieve to satisfactorily
complete a state standard. new text begin The commissioner must publish new text end benchmarks deleted text begin are published deleted text end to
inform and guide parents, teachers, school districts, and other interested persons and deleted text begin for deleted text end new text begin to new text end
use in developing tests consistent with the benchmarks.

(b) The commissioner shall publish benchmarks in the State Register and transmit
the benchmarks in any other manner that makes them accessible to the general public. The
commissioner may charge a reasonable fee for publications.

(c) Once established, the commissioner may change the benchmarks only with
specific legislative authorization and after completing a review under deleted text begin paragraph (d) deleted text end new text begin
subdivision 2 new text end .

(d) The commissioner must develop and implement a system for reviewing deleted text begin on
a four-year cycle deleted text end each of the required academic standards and related benchmarks and
elective standards deleted text begin beginning in the 2006-2007 school year deleted text end new text begin on a periodic cycle, consistent
with subdivision 2 new text end .

(e) The benchmarks are not subject to chapter 14 and section 14.386 does not apply.

new text begin Subd. 2. new text end

new text begin Revisions and reviews required. new text end

new text begin (a) The education commissioner must
revise and appropriately embed technology and information literacy standards into
the state's academic standards and graduation requirements and implement a six-year
review cycle for state academic standards and related benchmarks, consistent with this
subdivision.
new text end

new text begin (b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2008-2009 school year. Under the revised standards:
new text end

new text begin (1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and
new text end

new text begin (2) students scheduled to graduate in the 2012-2013 school year or later must
satisfactorily complete an algebra II credit or its equivalent.
new text end

new text begin The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2008-2009 school
year are aligned with the state academic standards in mathematics. The statewide grade 11
math test administered to students under clause (2) beginning in the 2011-2012 school
year, must include algebra II test items that are aligned with corresponding state academic
standards in mathematics. The commissioner must implement a six-year review cycle
for the academic standards and related benchmarks in mathematics beginning in the
2013-2014 school year.
new text end

new text begin (c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in
the 2009-2010 school year. The commissioner must implement a six-year review cycle
for the academic standards and related benchmarks in language arts beginning in the
2014-2015 school year.
new text end

new text begin (d) The commissioner in the 2008-2009 school year must revise and align the
state's academic standards and high school graduation requirements in science to require
that students satisfactorily complete the revised science standards, beginning in the
2010-2011 school year. Under the revised standards, students scheduled to graduate in
the 2013-2014 school year or later must satisfactorily complete a chemistry credit. The
commissioner must implement a six-year review cycle for the academic standards and
related benchmarks in science beginning in the 2015-2016 school year.
new text end

new text begin (e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in
the 2011-2012 school year. The commissioner must implement a six-year review cycle
for the academic standards and related benchmarks in social studies beginning in the
2016-2017 school year.
new text end

new text begin (f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2012-2013
school year. The commissioner must implement a six-year review cycle for the academic
standards and related benchmarks in arts beginning in the 2017-2018 school year.
new text end

new text begin (g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, physical education, world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, physical education, world
languages, and career and technical education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2004, section 120B.024, is amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

Students beginning 9th grade in the 2004-2005 school year and later must
successfully complete the following high school level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability sufficient to satisfy the academic standard new text begin and beginning in the 2008-2009
school year for students scheduled to graduate in the 2012-2013 school year or later, one
algebra II credit or its equivalent new text end ;

(3) three credits of science, including at least one credit in biology new text begin and for the
2010-2011 school year and later, one credit in chemistry new text end ;

(4) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies or business department;

(5) one credit in the arts; and

(6) a minimum of seven elective course credits.

A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2005 Supplement, section 121A.53, subdivision 1, is
amended to read:

Subdivision 1.

Exclusions and expulsions.

The school board must report through
the department electronic reporting system each exclusion deleted text begin or deleted text end new text begin , new text end expulsion new text begin , or other removal
for greater than 15 consecutive days taken in lieu of an exclusion or expulsion new text end within 30
days of the effective date of the action to the commissioner of education. This report must
include a statement of alternative educational services given the pupil and the reason for,
the effective date, and the duration of the exclusion or expulsion. The report must also
include the student's age, grade, gender, race, and special education status.

Sec. 5.

Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, is
amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. The enrolling district must
apply the same graduation requirements to all students, including online learning students,
and must continue to provide nonacademic services to online learning students. If a
student completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the teacher
contact time of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll during a single school year in a maximum of 12 semester-long courses or
their equivalent delivered by an online learning provider or the enrolling district;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

deleted text begin (c) A student with a disability may enroll in an online learning course or program
if the student's IEP team determines that online learning is appropriate education for
the student.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end An online learning student has the same access to the computer hardware
and education software available in a school as all other students in the enrolling district.
An online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

deleted text begin (e) deleted text end new text begin (d) new text end An enrolling district may offer online learning to its enrolled students.
Such online learning does not generate online learning funds under this section. An
enrolling district that offers online learning only to its enrolled students is not subject
to the reporting requirements or review criteria under subdivision 7. A teacher with a
Minnesota license must assemble and deliver instruction to enrolled students receiving
online learning from an enrolling district. The delivery of instruction occurs when the
student interacts with the computer or the teacher and receives ongoing assistance and
assessment of learning. The instruction may include curriculum developed by persons
other than a teacher with a Minnesota license.

deleted text begin (f) deleted text end new text begin (e) new text end An online learning provider that is not the enrolling district is subject to
the reporting requirements and review criteria under subdivision 7. A teacher with a
Minnesota license must assemble and deliver instruction to online learning students. The
delivery of instruction occurs when the student interacts with the computer or the teacher
and receives ongoing assistance and assessment of learning. The instruction may include
curriculum developed by persons other than a teacher with a Minnesota license. Unless
the commissioner grants a waiver, a teacher providing online learning instruction must not
instruct more than 40 students in any one online learning course or program.

Sec. 6.

Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:

Subd. 16.

Transportation.

(a) deleted text begin By July 1 of each year, a charter school deleted text end new text begin A charter
school by March 1 of each fiscal year after its first fiscal year of operation and a charter
school by July 1 of its first fiscal year of operation new text end must notify the district in which the
school is located and the Department of Education if it will provide deleted text begin transportation for
pupils enrolled in the school deleted text end new text begin its own transportation or use the transportation services of the
district in which it is located new text end for the fiscal year.

(b) If a charter school elects to provide transportation for pupils, the transportation
must be provided by the charter school within the district in which the charter school is
located. The state must pay transportation aid to the charter school according to section
124D.11, subdivision 2.

For pupils who reside outside the district in which the charter school is located, the
charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. A parent
may be reimbursed by the charter school for costs of transportation from the pupil's
residence to the border of the district in which the charter school is located if the pupil is
from a family whose income is at or below the poverty level, as determined by the federal
government. The reimbursement may not exceed the pupil's actual cost of transportation
or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
more than 250 miles per week.

At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.

(c) If a charter school does not elect to provide transportation, transportation for
pupils enrolled at the school must be provided by the district in which the school is
located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
pupil residing in the same district in which the charter school is located. Transportation
may be provided by the district in which the school is located, according to sections
123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different
district. If the district provides the transportation, the scheduling of routes, manner and
method of transportation, control and discipline of the pupils, and any other matter relating
to the transportation of pupils under this paragraph shall be within the sole discretion,
control, and management of the district.

Sec. 7.

Minnesota Statutes 2004, section 124D.61, is amended to read:

124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.

A district deleted text begin which receives aid pursuant to section 124D.65 must comply with deleted text end new text begin that
enrolls one or more children of limited English proficiency must implement an educational
program that includes at a minimum new text end the following deleted text begin program deleted text end requirements:

(1) new text begin identification and reclassification criteria for children of limited English
proficiency and program entrance and exit criteria for children with limited English
proficiency must be documented by the district, applied uniformly to children of limited
English proficiency, and made available to parents and other stakeholders upon request;
new text end

new text begin (2) a written plan of services that describes programming by English proficiency
level made available to parents upon request. The plan must articulate the amount and
scope of service offered to children of limited English proficiency through an educational
program for children of limited English proficiency;
new text end

new text begin (3) professional development opportunities for ESL, bilingual education,
mainstream, and all staff working with children of limited English proficiency which are:
(i) coordinated with the district's professional development activities; (ii) related to the
needs of children of limited English proficiency; and (iii) ongoing;
new text end

new text begin (4) new text end to the extent possible, deleted text begin the district must deleted text end avoid isolating children of limited English
proficiency for a substantial part of the school day; and

deleted text begin (2) deleted text end new text begin (5) new text end in predominantly nonverbal subjects, such as art, music, and physical
education, new text begin permit new text end pupils of limited English proficiency deleted text begin shall be permitted deleted text end to participate
fully and on an equal basis with their contemporaries in public school classes provided
for these subjects. To the extent possible, the district must assure to pupils enrolled in a
program for limited English proficient students an equal and meaningful opportunity to
participate fully with other pupils in all extracurricular activities.

Sec. 8.

Laws 2005, First Special Session chapter 5, article 2, section 81, is amended to
read:

Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING
AUTHORITY.

On or before June 30, 2007, the Board of School Administrators may adopt
deleted text begin expedited deleted text end rules deleted text begin under Minnesota Statutes, section 14.389, deleted text end to new text begin reflect the changes in duties,
responsibilities, and roles of school administrators, and to new text end make technical revisions and
clarifications to Minnesota Rules, chapter 3512.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
13, is amended to read:

Subd. 13. Examination fees; teacher training and support programs. (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:

	$	4,500,000	.....	2006
	$	4,500,000	.....	2007

(b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and IBMN, respectively, shall determine the amounts of
the expenditures each year for examination fees and training and support programs for
each program.

(c) deleted text begin Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The amount of the subsidy for each teacher attending an
advanced placement or international baccalaureate summer training program or workshop
shall be the same. The commissioner shall determine the payment process and the amount
of the subsidy. deleted text end new text begin Teachers shall apply for teacher training scholarships to prepare for
teaching in the advanced placement or international baccalaureate program. Any reserved
funding not expended for teacher training may be used for exam fees and other support
programs for each program. new text end

(d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
of available appropriations shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or both.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text begin SCIENCE TEACHERS.
new text end

new text begin (a) A science teacher holding a Minnesota professional license in grades 7 through
12 or 9 through 12 who receives a qualifying score on the appropriate Praxis II test in a
grade 9 through 12 science field other than the currently licensed science field must be
licensed to teach in the new subject area. The qualifying scores are the same scores used
for new science teachers established by the Board of Teaching. The science teacher who
seeks licensure in another science subject area under this paragraph is responsible for
the costs of the required testing.
new text end

new text begin (b) For the purposes of paragraph (a), science subject areas include chemistry,
physics, biology, and earth and space science.
new text end

new text begin (c) By December 31, 2010, the Department of Education and Board of Teaching
must submit a report, including at least the effects of this section on science teacher quality
and developing highly qualified teachers, to the committees of the house of representatives
and senate having jurisdiction over kindergarten through grade 12 education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text begin 2006 SCHOOL ACCOUNTABILITY REPORT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the
Department of Education may delay the release to the public and the posting of the 2006
school performance report cards and adequate yearly progress data on its public Web
site to no later than November 30, 2006.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to
read:

Subdivision 1.

Child with a disability.

Every child who has a hearing impairment,
new text begin blindness, new text end visual disability, speech or language impairment, physical handicap, other
health impairment, mental handicap, emotional/behavioral disorder, specific learning
disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and
needs special instruction and services, as determined by the standards of the commissioner,
is a child with a disability. In addition, every child under age three, and at local district
discretion from age three to age seven, who needs special instruction and services, as
determined by the standards of the commissioner, because the child has a substantial delay
or has an identifiable physical or mental condition known to hinder normal development is
a child with a disability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, is
amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence. The
tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition
is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum
of (1) the actual cost of providing special instruction and services to the child including
a proportionate amount for special transportation and unreimbursed building lease and
debt service costs for facilities used primarily for special education, plus (2) the amount
of general education revenue and referendum aid attributable to the pupil, minus (3) the
amount of special education aid for children with a disability received on behalf of that
child, minus (4) if the pupil receives special instruction and services outside the regular
classroom for more than 60 percent of the school day, the amount of general education
revenue and referendum aid, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, attributable to that pupil for the portion of time the pupil receives
new text begin special new text end instruction deleted text begin in deleted text end new text begin and services outside new text end the regular classroom. If the boards involved
do not agree upon the tuition rate, either board may apply to the commissioner to fix the
rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or
request a written statement from each board, giving each board at least ten days' notice,
and after the hearing or review of the written statements the commissioner must make an
order fixing the tuition rate, which is binding on both school districts. General education
revenue and referendum aid attributable to a pupil must be calculated using the resident
district's average general education and referendum revenue per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum aid attributable to that pupil, minus (3) the amount of special
education aid for children with a disability received on behalf of that child, minus (4) if the
pupil receives special instruction and services outside the regular classroom for more than
60 percent of the school day, the amount of general education revenue and referendum
aid, excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives new text begin special new text end instruction deleted text begin in deleted text end new text begin
and services outside new text end the regular classroom. General education revenue and referendum
aid attributable to a pupil must be calculated using the resident district's average general
education revenue and referendum aid per adjusted pupil unit. Special education aid
paid to the district or cooperative providing special instruction and services for the pupil
must be increased by the amount of the reduction in the aid paid to the resident district.
Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision
7, shall be recognized and reported as revenues and expenditures on the resident school
district's books of account under sections 123B.75 and 123B.76. If the resident district's
special education aid is insufficient to make the full adjustment, the remaining adjustment
shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, an intermediate district, or a special
education cooperative may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:

Subd. 11.

Interagency child find systems.

"Interagency child find systems"
means activities developed on an interagency basis with the involvement of interagency
early intervention committees and other relevant community groups new text begin using rigorous
standards new text end to actively seek out, identify, and refer infants and young children new text begin , new text end with, or at
risk of, disabilities, and their families new text begin , including a child under the age of three who: (1)
is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by
illegal substance abuse or withdrawal symptoms resulting from prenatal drug exposure, to
reduce children's need for future services new text end .

Sec. 4.

Minnesota Statutes 2004, section 125A.29, is amended to read:

125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL
BOARDS.

(a) It is the joint responsibility of county boards and school boards to coordinate,
provide, and pay for appropriate services, and to facilitate payment for services from public
and private sources. Appropriate services for children eligible under section 125A.02 must
be determined in consultation with parents, physicians, and other educational, medical,
health, and human services providers. The services provided must be in conformity with new text begin :
new text end

new text begin (1) new text end an IFSP for each eligible infant and toddler from birth through age two and deleted text begin its deleted text end new text begin
the infant's or toddler's new text end family deleted text begin , deleted text end new text begin including:
new text end

new text begin (i) American Indian infants and toddlers with disabilities and their families residing
on a reservation geographically located in the state;
new text end

new text begin (ii) infants and toddlers with disabilities who are homeless children and their
families; and
new text end

new text begin (iii) infants and toddlers with disabilities who are wards of the state; new text end or

new text begin (2) new text end an individual education plan (IEP) or individual service plan (ISP) for each
eligible child ages three through four.

(b) Appropriate services include family education and counseling, home visits,
occupational and physical therapy, speech pathology, audiology, psychological services,
special instruction, nursing, respite, nutrition, assistive technology, transportation
and related costs, social work, vision services, case management including service
coordination under section 125A.33, medical services for diagnostic and evaluation
purposes, early identification, and screening, assessment, and health services necessary to
enable children with disabilities to benefit from early intervention services.

(c) School and county boards shall coordinate early intervention services. In the
absence of agreements established according to section 125A.39, service responsibilities
for children birth through age two are as follows:

(1) school boards must provide, pay for, and facilitate payment for special education
and related services required under sections 125A.05 and 125A.06;

(2) county boards must provide, pay for, and facilitate payment for noneducational
services of social work, psychology, transportation and related costs, nursing, respite, and
nutrition services not required under clause (1).

(d) School and county boards may develop an interagency agreement according
to section 125A.39 to establish agency responsibility that assures early intervention
services are coordinated, provided, paid for, and that payment is facilitated from public
and private sources.

(e) County and school boards must jointly determine the primary agency in this
cooperative effort and must notify the commissioner of the state lead agency of their
decision.

Sec. 5.

Minnesota Statutes 2004, section 125A.30, is amended to read:

125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.

(a) A school district, group of districts, or special education cooperative, in
cooperation with the health and human service agencies located in the county or counties
in which the district or cooperative is located, must establish an Interagency Early
Intervention Committee for children with disabilities under age five and their families
under this section, and for children with disabilities ages three to 22 consistent with
the requirements under sections 125A.023 and 125A.027. Committees must include
representatives of local health, education, and county human service agencies, county
boards, school boards, early childhood family education programs, Head Start, parents of
young children with disabilities under age 12, child care resource and referral agencies,
school readiness programs, current service providers, and may also include representatives
from other private or public agencies and school nurses. The committee must elect a chair
from among its members and must meet at least quarterly.

(b) The committee must develop and implement interagency policies and procedures
concerning the following ongoing duties:

(1) develop public awareness systems designed to inform potential recipient
families new text begin , especially parents with premature infants, or infants with other physical risk
factors associated with learning or development complications, new text end of available programs
and services;

(2) new text begin to reduce families' need for future services, and especially parents with premature
infants, or infants with other physical risk factors associated with learning or development
complications, new text end implement interagency child find systems designed to actively seek out,
identify, and refer infants and young children with, or at risk of, disabilities deleted text begin and their
families deleted text end new text begin , including a child under the age of three who: (i) is involved in a substantiated
case of abuse or (ii) is identified as affected by illegal substance abuse or with withdrawal
symptoms resulting from prenatal drug exposure new text end ;

(3) establish and evaluate the identification, referral, child and family assessment
systems, procedural safeguard process, and community learning systems to recommend,
where necessary, alterations and improvements;

(4) assure the development of individualized family service plans for all eligible
infants and toddlers with disabilities from birth through age two, and their families, and
individual education plans and individual service plans when necessary to appropriately
serve children with disabilities, age three and older, and their families and recommend
assignment of financial responsibilities to the appropriate agencies;

(5) deleted text begin encourage agencies to develop individual family service plans for children with
disabilities, age three and older;
deleted text end

deleted text begin (6) deleted text end implement a process for assuring that services involve cooperating agencies at all
steps leading to individualized programs;

deleted text begin (7) deleted text end new text begin (6) new text end facilitate the development of a transitional plan if a service provider is not
recommended to continue to provide services;

deleted text begin (8) deleted text end new text begin (7) new text end identify the current services and funding being provided within the
community for children with disabilities under age five and their families;

deleted text begin (9) deleted text end new text begin (8) new text end develop a plan for the allocation and expenditure of additional state and
federal early intervention funds under United States Code, title 20, section 1471 et seq.
(Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) and United States Code, title 20, section 631, et
seq. (Chapter I, Public Law 89-313); and

deleted text begin (10) deleted text end new text begin (9) new text end develop a policy that is consistent with section 13.05, subdivision 9, and
federal law to enable a member of an interagency early intervention committee to allow
another member access to data classified as not public.

(c) The local committee shall also:

(1) participate in needs assessments and program planning activities conducted by
local social service, health and education agencies for young children with disabilities and
their families; and

(2) review and comment on the early intervention section of the total special
education system for the district, the county social service plan, the section or sections of
the community health services plan that address needs of and service activities targeted
to children with special health care needs, the section on children with special needs in
the county child care fund plan, sections in Head Start plans on coordinated planning and
services for children with special needs, any relevant portions of early childhood education
plans, such as early childhood family education or school readiness, or other applicable
coordinated school and community plans for early childhood programs and services, and
the section of the maternal and child health special project grants that address needs of and
service activities targeted to children with chronic illness and disabilities.

Sec. 6.

Minnesota Statutes 2004, section 125A.32, is amended to read:

125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN.

(a) A team must participate in IFSP meetings to develop the IFSP. The team shall
include:

(1) a parent or parents of the child;

(2) other family members, as requested by the parent, if feasible to do so;

(3) an advocate or person outside of the family, if the parent requests that the
person participate;

(4) the service coordinator who has been working with the family since the
initial referral, or who has been designated by the public agency to be responsible for
implementation of the IFSP new text begin and coordination with other agencies including transition
services new text end ; and

(5) a person or persons involved in conducting evaluations and assessments.

(b) The IFSP must include:

(1) information about the child's developmental status;

(2) family information, with the consent of the family;

(3) new text begin measurable results or new text end major outcomes expected to be achieved by the child
deleted text begin and the family deleted text end new text begin , with the family's assistance, new text end that include deleted text begin the deleted text end new text begin developmentally appropriate
preliteracy and language skills, and new text end criteria, procedures, and timelines new text begin related to the results
or outcomes new text end ;

(4) specific early intervention services new text begin based on peer-reviewed research, to the
extent practicable, new text end necessary to meet the unique needs of the child and the family to
achieve the outcomes;

(5) payment arrangements, if any;

(6) medical and other services that the child needs, but that are not required under
the Individual with Disabilities Education Act, United States Code, title 20, section 1471
et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) including funding sources to be used in
paying for those services and the steps that will be taken to secure those services through
public or private sources;

(7) dates and duration of early intervention services;

(8) name of the service coordinator;

(9) steps to be taken to support a child's transition from early intervention services to
other appropriate services new text begin , including convening a transition conference at least 90 days, or
at the discretion of all parties, not more than nine months before the child is eligible for
preschool services new text end ; and

(10) signature of the parent and authorized signatures of the agencies responsible
for providing, paying for, or facilitating payment, or any combination of these, for early
intervention services.

Sec. 7.

Minnesota Statutes 2004, section 125A.33, is amended to read:

125A.33 SERVICE COORDINATION.

(a) The team developing the IFSP under section 125A.32 must select a service
coordinator to carry out service coordination activities on an interagency basis. Service
coordination must actively promote a family's capacity and competency to identify,
obtain, coordinate, monitor, and evaluate resources and services to meet the family's
needs. Service coordination activities include:

(1) coordinating the performance of evaluations and assessments;

(2) facilitating and participating in the development, review, and evaluation of
individualized family service plans;

(3) assisting families in identifying available service providers;

(4) coordinating and monitoring the delivery of available services;

(5) informing families of the availability of advocacy services;

(6) coordinating with medical, health, and other service providers;

(7) facilitating the development of a transition plan at least 90 days before the time
the child is no longer eligible for early intervention services, new text begin or at the discretion of all
parties, not more than nine months before the child is eligible for preschool services,
new text end if appropriate;

(8) managing the early intervention record and submitting additional information to
the local primary agency at the time of periodic review and annual evaluations; and

(9) notifying a local primary agency when disputes between agencies impact service
delivery required by an IFSP.

(b) A service coordinator must be knowledgeable about children and families
receiving services under this section, requirements of state and federal law, and services
available in the interagency early childhood intervention system.

Sec. 8.

Minnesota Statutes 2004, section 125A.48, is amended to read:

125A.48 STATE INTERAGENCY AGREEMENT.

(a) The commissioners of the Departments of Education, Health, and Human
Services must enter into an agreement to implement this section and Part deleted text begin H deleted text end new text begin C new text end , Public
Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and as required by Code of Federal Regulations, title 34, section
303.523, to promote the development and implementation of interagency, coordinated,
multidisciplinary state and local early childhood intervention service systems for serving
eligible young children with disabilities, birth through age two, and their families new text begin and
to ensure the meaningful involvement of underserved groups, including children with
disabilities from minority, low-income, homeless, and rural families, and children with
disabilities who are wards of the state new text end . The agreement must be reviewed annually.

(b) The state interagency agreement must outline at a minimum the conditions,
procedures, purposes, and responsibilities of the participating state and local agencies
for the following:

(1) membership, roles, and responsibilities of a state interagency committee for
the oversight of priorities and budget allocations under Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end , and other state allocations for this program;

(2) child find;

(3) establishment of local interagency agreements;

(4) review by a state interagency committee of the allocation of additional state and
federal early intervention funds by local agencies;

(5) fiscal responsibilities of the state and local agencies;

(6) intraagency and interagency dispute resolution;

(7) payor of last resort;

(8) maintenance of effort;

(9) procedural safeguards, including mediation;

(10) complaint resolution;

(11) quality assurance;

(12) data collection;

(13) an annual summary to the state Interagency Coordinating Council regarding
conflict resolution activities including disputes, due process hearings, and complaints; and

(14) other components of the state and local early intervention system consistent
with Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end .

Written materials must be developed for parents, IEIC's, and local service providers
that describe procedures developed under this section as required by Code of Federal
Regulations, title 34, section 303.

Sec. 9.

Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:

Subdivision 1.

Approval of education programs.

The commissioner shall
approve education programs for placement of children and youth in deleted text begin care and treatment deleted text end
new text begin residential new text end facilities including detention centers, before being licensed by the Department
of Human Services deleted text begin under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400
to 9545.1480, deleted text end or the Department of Corrections deleted text begin under Minnesota Rules, chapters 2925,
2930, 2935, and 2950 deleted text end . Education programs in these facilities shall conform to state and
federal education laws including the Individuals with Disabilities Education Act (IDEA).
new text begin This section applies only to placements in residential facilities licensed by the Department
of Human Services or the Department of Corrections.
new text end

Sec. 10.

Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:

Subd. 3.

Responsibilities for providing education.

(a) The district in which the
new text begin residential new text end facility is located must provide education services, including special education
if eligible, to all students placed in a facility deleted text begin for care and treatment deleted text end .

(b) For education programs operated by the Department of Corrections, the
providing district shall be the Department of Corrections. For students remanded to the
commissioner of corrections, the providing and resident district shall be the Department
of Corrections.

deleted text begin (c) Placement for care and treatment does not automatically make a student eligible
for special education. A student placed in a care and treatment facility is eligible for
special education under state and federal law including the Individuals with Disabilities
Education Act under United States Code, title 20, chapter 33.
deleted text end

Sec. 11.

Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:

Subd. 5.

Education programs for students placed in new text begin residential new text end facilities deleted text begin for
care and treatment deleted text end .

(a) When a student is placed in a deleted text begin care and treatment deleted text end facility new text begin
approved under this section new text end that has an on-site education program, the providing district,
upon notice from the care and treatment facility, must contact the resident district within
one business day to determine if a student has been identified as having a disability, and
to request at least the student's transcript, and for students with disabilities, the most
recent individualized education plan (IEP) and evaluation report, and to determine if the
student has been identified as a student with a disability. The resident district must send a
facsimile copy to the providing district within two business days of receiving the request.

(b) If a student placed deleted text begin for care and treatment deleted text end new text begin under this section new text end has been identified as
having a disability and has an individual education plan in the resident district:

(1) the providing agency must conduct an individualized education plan meeting
to reach an agreement about continuing or modifying special education services in
accordance with the current individualized education plan goals and objectives and to
determine if additional evaluations are necessary; and

(2) at least the following people shall receive written notice or documented phone
call to be followed with written notice to attend the individualized education plan meeting:

(i) the person or agency placing the student;

(ii) the resident district;

(iii) the appropriate teachers and related services staff from the providing district;

(iv) appropriate staff from the deleted text begin care and treatment deleted text end new text begin residential new text end facility;

(v) the parents or legal guardians of the student; and

(vi) when appropriate, the student.

(c) For a student who has not been identified as a student with a disability, a
screening must be conducted by the providing districts as soon as possible to determine
the student's educational and behavioral needs and must include a review of the student's
educational records.

Sec. 12.

Minnesota Statutes 2004, section 125A.515, subdivision 6, is amended to read:

Subd. 6.

Exit report summarizing educational progress.

If a student has been
placed in a deleted text begin care and treatment deleted text end facility new text begin under this section new text end for 15 or more business days, the
providing district must prepare an exit report summarizing the regular education, special
education, evaluation, educational progress, and service information and must send the
report to the resident district and the next providing district if different, the parent or
legal guardian, and any appropriate social service agency. For students with disabilities,
this report must include the student's IEP.

Sec. 13.

Minnesota Statutes 2004, section 125A.515, subdivision 7, is amended to read:

Subd. 7.

Minimum educational services required.

new text begin When a student is placed in a
facility approved under this section, new text end at a minimum, the providing district is responsible for:

(1) the education necessary, including summer school services, for a student who is
not performing at grade level as indicated in the education record or IEP; and

(2) a school day, of the same length as the school day of the providing district, unless
the unique needs of the student, as documented through the IEP or education record in
consultation with treatment providers, requires an alteration in the length of the school day.

Sec. 14.

Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:

Subd. 9.

Reimbursement for education services.

(a) Education services
provided to students who have been placed deleted text begin for care and treatment deleted text end new text begin under this section new text end are
reimbursable in accordance with special education and general education statutes.

(b) Indirect or consultative services provided in conjunction with regular education
prereferral interventions and assessment provided to regular education students suspected
of being disabled and who have demonstrated learning or behavioral problems in a
screening are reimbursable with special education categorical aids.

(c) Regular education, including screening, provided to students with or without
disabilities is not reimbursable with special education categorical aids.

Sec. 15.

Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to
read:

Subd. 10.

Students unable to attend school but not deleted text begin placed in care and treatment
facilities deleted text end new text begin covered under this section new text end .

Students who are absent from, or predicted to be
absent from, school for 15 consecutive or intermittent days, new text begin and placed new text end at home or in
facilities not licensed by the deleted text begin Departments deleted text end new text begin Department new text end of Corrections or Human Services
are deleted text begin not students placed for care and treatment deleted text end new text begin entitled to regular and special education
services, consistent with applicable law and rule new text end . These students include students with
and without disabilities who are home due to accident or illness, in a hospital or other
medical facility, or in a day treatment center. deleted text begin These students are entitled to education
services through their district of residence.
deleted text end

Sec. 16.

Minnesota Statutes 2004, section 125A.63, subdivision 4, is amended to read:

Subd. 4.

Advisory committees.

The deleted text begin Special Education Advisory Council deleted text end new text begin
commissioner new text end shall establish an advisory committee for each resource center. The
advisory committees shall develop recommendations regarding the resource centers new text begin and
submit an annual report to the commissioner on the form and in the manner prescribed by
the commissioner new text end .

Sec. 17.

Minnesota Statutes 2004, section 125A.75, subdivision 1, is amended to read:

Subdivision 1.

Travel aid.

The state must pay each district one-half of the sum
actually expended by a district new text begin , based on mileage, new text end for necessary travel of essential
personnel providing home-based services to children with a disability under age five
and their families.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text begin RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO
"BLIND" AND "BLINDNESS."
new text end

new text begin The commissioner of education, where appropriate, must incorporate references to
"blind" and "blindness" into the definition of visually impaired under Minnesota Rules,
part 3525.1345, and amend the rule title to include the word "blind."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19. new text begin DEPARTMENT OF EDUCATION RULES.
new text end

new text begin Before July 1, 2007, the Department of Education shall amend Minnesota Rules,
part 3525.2325, to conform with Minnesota Statutes, section 125A.515.
new text end

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, new text end new text begin are
repealed.
new text end

ARTICLE 4

ACCOUNTING

Section 1.

Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets.

By deleted text begin October 1 deleted text end new text begin November 30 new text end , every board must
publish revenue and expenditure budgets for the current year and the actual revenues,
expenditures, fund balances for the prior year and projected fund balances for the current
year in a form prescribed by the commissioner. The forms prescribed must be designed so
that year to year comparisons of revenue, expenditures and fund balances can be made.
These budgets, reports of revenue, expenditures and fund balances must be published in
a qualified newspaper of general circulation in the district new text begin or on the district's official
Web site. If published on the district's official Web site, the district must also publish an
announcement in a qualified newspaper of general circulation in the district that includes
the Internet address where the information has been posted new text end .

ARTICLE 5

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to
read:

Subd. 4.

First prior program year.

"First prior program year" means the deleted text begin period
from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year deleted text end new text begin
specific time period defined by the commissioner that aligns to a program academic year new text end .

Sec. 2.

Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:

Subdivision 1.

Program requirements.

(a) An adult basic education program is a
day or evening program offered by a district that is for people over 16 years of age who do
not attend an elementary or secondary school. The program offers academic instruction
necessary to earn a high school diploma or equivalency certificate.

(b) Notwithstanding any law to the contrary, a school board or the governing body of
a consortium offering an adult basic education program may adopt a sliding fee schedule
based on a family's income, but must waive the fee for participants who are under the
age of 21 or unable to pay. The fees charged must be designed to enable individuals of
all socioeconomic levels to participate in the program. A program may charge a security
deposit to assure return of materials, supplies, and equipment.

(c) Each approved adult basic education program must develop a memorandum of
understanding with the local workforce development centers located in the approved
program's service delivery area. The memorandum of understanding must describe how
the adult basic education program and the workforce development centers will cooperate
and coordinate services to provide unduplicated, efficient, and effective services to clients.

(d) Adult basic education aid must be spent for adult basic education purposes as
specified in sections 124D.518 to 124D.531.

new text begin (e) A state-approved adult basic education program must count and submit student
contact hours for a program that offers high school credit toward an adult high school
diploma according to student eligibility requirements and competency demonstration
requirements established by the commissioner.
new text end

ARTICLE 6

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:

Subdivision 1.

Department of Education.

The Department of Education is the
state agency responsible for administering the Head Start program. The commissioner
of education deleted text begin may make grants deleted text end new text begin shall allocate funds according to the formula in section
119A.52 new text end to public or private nonprofit agencies for the purpose of providing supplemental
funds for the federal Head Start program.

Sec. 2.

Minnesota Statutes 2004, section 119A.52, is amended to read:

119A.52 DISTRIBUTION OF APPROPRIATION deleted text begin AND PROGRAM
COORDINATION deleted text end .

The commissioner of education must distribute money appropriated for that purpose
to new text begin federally designated new text end Head Start deleted text begin program grantees deleted text end new text begin programs new text end to expand services and to
serve additional low-income children. deleted text begin Money must be allocated to each project Head Start
grantee in existence on the effective date of Laws 1989, chapter 282. deleted text end Migrant and Indian
reservation deleted text begin grantees deleted text end new text begin programs new text end must be initially allocated money based on the deleted text begin grantees' deleted text end
new text begin programs' new text end share of federal funds. The remaining money must be initially allocated to the
remaining local agencies based equally on the agencies' share of federal funds and on the
proportion of eligible children in the agencies' service area who are not currently being
served. A Head Start grantee must be funded at a per child rate equal to its contracted,
federally funded base level deleted text begin for program accounts 20, 22, and 25 deleted text end at the start of the fiscal
year. In allocating funds under this paragraph, the commissioner of education must assure
that each Head Start deleted text begin grantee deleted text end new text begin program in existence in 1993 new text end is allocated no less funding
in any fiscal year than was allocated to that deleted text begin grantee deleted text end new text begin program new text end in fiscal year 1993. deleted text begin The
commissioner may provide additional funding to grantees for start-up costs incurred by
grantees due to the increased number of children to be served. deleted text end Before paying money to
the deleted text begin grantees deleted text end new text begin programs new text end , the commissioner must notify each deleted text begin grantee deleted text end new text begin program new text end of its initial
allocation, how the money must be used, and the number of low-income children deleted text begin that
must deleted text end new text begin to new text end be served with the allocation new text begin based upon the federally funded per-child rate new text end .
Each deleted text begin grantee deleted text end new text begin program new text end must present a deleted text begin work deleted text end plan deleted text begin to the commissioner for approval. The
work plan must include the estimated number of low-income children and families it will
be able to serve, a description of the program design and service delivery area which
meets the needs of and encourages access by low-income working families, a program
design that ensures fair and equitable access to Head Start services for all populations and
parts of the service area, and a plan for coordinating services to maximize assistance
for child care costs available to families under chapter 119B. deleted text end new text begin under section 119A.535.
new text end For any grantee that cannot utilize its full allocation, the commissioner must reduce the
allocation proportionately. Money available after the initial allocations are reduced must
be redistributed to eligible grantees.

Sec. 3.

Minnesota Statutes 2004, section 119A.53, is amended to read:

119A.53 FEDERAL REQUIREMENTS.

deleted text begin Grantees deleted text end new text begin Programs new text end and the commissioner shall comply with federal regulations
governing the federal Head Start program, except for funding for innovative initiatives
under section , which may be used to
operate differently than federal Head Start regulations. If a state statute or rule conflicts
with a federal statute or regulation, the state statute or rule prevails.

Sec. 4.

new text begin [119A.535] APPLICATION REQUIREMENTS.
new text end

new text begin Eligible Head Start organizations must submit a plan to the department for approval
on a form and in the manner prescribed by the commissioner. The plan must include:
new text end

new text begin (1) the estimated number of low-income children and families the program will be
able to serve;
new text end

new text begin (2) a description of the program design and service delivery area which meets the
needs of and encourages access by low-income working families;
new text end

new text begin (3) a program design that ensures fair and equitable access to Head Start services for
all populations and parts of the service area;
new text end

new text begin (4) a plan for coordinating services to maximize assistance for child care costs
available to families under chapter 119B; and
new text end

new text begin (5) identification of regular Head Start, early Head Start, and innovative services
based upon demonstrated needs to be provided.
new text end

Sec. 5.

Minnesota Statutes 2004, section 119A.545, is amended to read:

119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER
PERIODS.

The commissioner of education may waive requirements under sections 119A.50
to deleted text begin 119A.53 deleted text end new text begin 119A.535 new text end , for up to nine months after the disaster, for Head Start deleted text begin grantees deleted text end
new text begin programs new text end in areas where a federal disaster has been declared under United States Code,
title 42, section 5121, et seq., or the governor has exercised authority under chapter 12.
The commissioner shall notify the chairs of the new text begin appropriate new text end senate deleted text begin Family and Early
Childhood Education Budget Division, the senate Education Finance Committee, the deleted text end new text begin and
new text end house deleted text begin Family and Early Childhood Education Finance Division, the house Education
Committee, and the house Ways and Means Committee deleted text end new text begin of representatives committees new text end ten
days before the effective date of any waiver granted under this section.

Sec. 6.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 5,
is amended to read:

Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
section 119A.52:

	$	19,100,000	.....	2006
	$	19,100,000	.....	2007

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 119A.51, new text end new text begin is repealed.
new text end

ARTICLE 7

STATE AGENCIES

Section 1.

Minnesota Statutes 2004, section 125A.69, subdivision 3, is amended to
read:

Subd. 3.

Out-of-state admissions.

An applicant from another state who can benefit
from attending either academy may be admitted to the academy if the admission does not
prevent an eligible Minnesota resident from being admitted. The board of the Minnesota
State Academies must obtain reimbursement from the other state for the costs of the
out-of-state admission. The state board may enter into an agreement with the appropriate
authority in the other state for the reimbursement. Money received from another state
must be deposited in the deleted text begin general deleted text end new text begin special revenue new text end fund and credited to the general operating
account of the academies. The money is appropriated to the academies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from fiscal year 2001.
new text end