Minnesota Legislature
HF 872
1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; providing for early childhood, 1.3 adult, family, and kindergarten through grade 12 1.4 education including general education, excellence in 1.5 education, special programs, facilities and 1.6 technology, nutrition and accounting, libraries, early 1.7 education, prevention, self-sufficiency and lifelong 1.8 learning, state agencies, forecast deficiencies, and 1.9 technical and conforming amendments; authorizing 1.10 rulemaking; providing for reports; appropriating 1.11 money; amending Minnesota Statutes 2004, sections 1.12 13.32, subdivisions 1, 8; 119A.46, subdivisions 1, 2, 1.13 3, 8; 120A.05, by adding a subdivision; 120A.22, 1.14 subdivision 12; 120B.02; 120B.021, by adding a 1.15 subdivision; 120B.11, subdivisions 1, 2, 3, 4, 5, 8; 1.16 120B.13, subdivisions 1, 3, by adding a subdivision; 1.17 120B.23; 120B.30, subdivisions 1, 1a; 120B.31, 1.18 subdivision 4; 121A.03, subdivision 1; 121A.06, 1.19 subdivisions 2, 3; 121A.17, subdivisions 1, 3, 5; 1.20 121A.19; 121A.41, subdivision 10; 121A.47, subdivision 1.21 14; 121A.53; 121A.55; 122A.06, subdivision 4; 122A.09, 1.22 subdivisions 4, 10; 122A.12, subdivision 2; 122A.18, 1.23 subdivision 2a; 122A.40, subdivision 5; 122A.41, 1.24 subdivisions 2, 14; 122A.414; 122A.415, subdivisions 1.25 1, 3; 123A.05, subdivision 2; 123A.06, subdivision 1; 1.26 123A.24, subdivision 2; 123B.02, by adding a 1.27 subdivision; 123B.09, subdivision 8; 123B.143, 1.28 subdivision 1; 123B.36, subdivision 1; 123B.42, 1.29 subdivision 3; 123B.49, subdivision 4; 123B.53, 1.30 subdivision 1; 123B.54; 123B.59, subdivisions 3, 3a; 1.31 123B.63, subdivision 2; 123B.71, subdivisions 8, 12; 1.32 123B.749; 123B.75, subdivision 5, by adding a 1.33 subdivision; 123B.76, subdivision 3; 123B.79, 1.34 subdivision 6; 123B.81, subdivision 1; 123B.82; 1.35 123B.83, subdivision 2; 123B.92, subdivisions 1, 5, 9; 1.36 124D.095, subdivision 8; 124D.10, subdivisions 3, 4, 1.37 6, 8, 15, 23; 124D.11, subdivisions 1, 2, 5, 6; 1.38 124D.111, subdivisions 1, 2; 124D.118, subdivision 4; 1.39 124D.135, subdivisions 1, 5; 124D.15, subdivisions 1, 1.40 3, 5, 10, 12, by adding subdivisions; 124D.16, 1.41 subdivisions 2, 3; 124D.20, subdivision 3; 124D.40; 1.42 124D.531, subdivisions 1, 4; 124D.66, subdivision 3; 1.43 124D.68, subdivision 9; 124D.69, subdivision 1; 1.44 124D.74, subdivision 1; 124D.81, subdivision 1; 1.45 124D.84, subdivision 1; 125A.091, subdivision 5; 1.46 125A.11, subdivision 1; 125A.24; 125A.28; 125A.51; 2.1 125A.76, subdivisions 1, 4, by adding subdivisions; 2.2 125A.79, subdivisions 1, 5, 6, 7, by adding 2.3 subdivisions; 126C.01, subdivision 11; 126C.05, by 2.4 adding a subdivision; 126C.10, subdivisions 1, 2, 3, 2.5 6, 7, 8, 13, 13a, 17, 18, 24, 31, by adding 2.6 subdivisions; 126C.13, subdivision 4; 126C.15, 2.7 subdivisions 1, 2, 3, by adding a subdivision; 2.8 126C.17, subdivisions 2, 5, 7, 9, 13; 126C.21, 2.9 subdivision 4; 126C.40, subdivision 1; 126C.43, 2.10 subdivisions 2, 3; 126C.44; 126C.457; 126C.48, 2.11 subdivisions 2, 8, by adding a subdivision; 126C.63, 2.12 subdivisions 5, 8; 127A.41, subdivision 8; 127A.42, 2.13 subdivision 2; 127A.45, subdivisions 2, 10, 11, 12, 2.14 13, 14, 16; 127A.47, subdivisions 7, 8; 127A.49, 2.15 subdivisions 2, 3; 127A.50, subdivision 5; 128C.12, 2.16 subdivision 1; 134.31, by adding a subdivision; 2.17 171.04, subdivision 1; 171.05, subdivisions 2, 2b, 3; 2.18 179A.03, subdivision 14; 260C.007, subdivision 6, by 2.19 adding a subdivision; 260C.201, subdivision 1; 275.14; 2.20 275.16; 469.177, subdivision 9; Laws 1996, chapter 2.21 412, article 5, section 24; Laws 2003, First Special 2.22 Session chapter 9, article 1, section 53, subdivisions 2.23 2, as amended, 3, as amended, 11, as amended, 12, as 2.24 amended; Laws 2003, First Special Session chapter 9, 2.25 article 2, section 55, subdivisions 2, as amended, 5, 2.26 as amended, 9, as amended, 12, as amended; Laws 2003, 2.27 First Special Session chapter 9, article 3, section 2.28 20, subdivsions 2, 4, as amended, 5, as amended, 6, as 2.29 amended, 8, as amended, 9, as amended; Laws 2003, 2.30 First Special Session chapter 9, article 4, section 2.31 31, subdivisions 2, as amended, 3, as amended, 4; Laws 2.32 2003, First Special Session chapter 9, article 5, 2.33 section 35, subdivision 3, as amended; Laws 2003, 2.34 First Special Session chapter 9, article 6, section 4, 2.35 as amended; Laws 2003, First Special Session chapter 2.36 9, article 7, section 11, subdivisions 2, 4; Laws 2.37 2003, First Special Session chapter 9, article 8, 2.38 section 7, subdivisions 2, as amended, 3, 5, as 2.39 amended; Laws 2003, First Special Session chapter 9, 2.40 article 9, section 9, subdivision 2, as amended; 2.41 proposing coding for new law in Minnesota Statutes, 2.42 chapters 120A; 120B; 121A; 122A; 123A; 123B; 124D; 2.43 125B; 129C; 171; 179A; repealing Minnesota Statutes 2.44 2004, sections 122A.24; 122A.415, subdivision 2; 2.45 123B.05; 123B.83, subdivision 1; 124D.095; 124D.15, 2.46 subdivisions 2, 4, 6, 7, 8, 9, 11, 13; 124D.16, 2.47 subdivisions 1, 4; 126C.12; 126C.42, subdivisions 1, 4. 2.48 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.49 ARTICLE 1 2.50 GENERAL EDUCATION 2.51 Section 1. Minnesota Statutes 2004, section 120A.05, is 2.52 amended by adding a subdivision to read: 2.53 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 2.54 designed for pupils five years of age on September 1 of the 2.55 calendar year in which the school year commences that prepares 2.56 pupils to enter first grade the following school year. A 2.57 program designed for pupils younger than five years of age on 2.58 September 1 of the calendar year in which the school year 2.59 commences that prepares pupils to enter kindergarten the 3.1 following school year is a prekindergarten program. 3.2 [EFFECTIVE DATE.] This section is effective the day 3.3 following final enactment. 3.4 Sec. 2. Minnesota Statutes 2004, section 123A.05, 3.5 subdivision 2, is amended to read: 3.6 Subd. 2. [RESERVE REVENUE.] Each district that is a member 3.7 of an area learning center must reserve revenue in an amount 3.8 equal to the sum of (1) at least 90 percent of the district 3.9 average general education revenue per pupil unit minus an amount 3.10 equal to the product of the formula allowance according to 3.11 section 126C.10, subdivision 2, times .0485, calculated without 3.12 basic skills revenue,and transportation sparsity revenue,and3.13the transportation portion of the transition revenue adjustment,3.14 times the number of pupil units attending an area learning 3.15 center program under this section, plus (2) the amount of basic 3.16 skills revenue generated by pupils attending the area learning 3.17 center. The amount of reserved revenue under this subdivision 3.18 may only be spent on program costs associated with the area 3.19 learning center.Compensatory revenue must be allocated3.20according to section 126C.15, subdivision 2.3.21 Sec. 3. Minnesota Statutes 2004, section 123B.42, 3.22 subdivision 3, is amended to read: 3.23 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 3.24 textbooks, individualized instructional or cooperative learning 3.25 materials, and standardized tests provided for in this section 3.26 for each school year must not exceed the statewide average 3.27 expenditure per pupil, adjustedpursuantaccording toclause3.28 paragraph (b), by the Minnesota public elementary and secondary 3.29 schools for textbooks, individualized instructional materials 3.30 and standardized tests as computed and established by the 3.31 department by February 1 of the preceding school year from the 3.32 most recent public school year data then available. 3.33 (b) The cost computed inclauseparagraph (a) shall be 3.34 increased by an inflation adjustment equal tothe percent of3.35increase in the formula allowance, pursuant to section 126C.10,3.36subdivision 2, from the second preceding school year to the4.1current school year3.0 percent for fiscal year 2006, 6.19 4.2 percent for fiscal year 2007, and 3.1 percent for fiscal year 4.3 2008. 4.4 (c) The commissioner shall allot to the districts or 4.5 intermediary service areas the total cost for each school year 4.6 of providing or loaning the textbooks, individualized 4.7 instructional or cooperative learning materials, and 4.8 standardized tests for the pupils in each nonpublic school. The 4.9 allotment shall not exceed the product of the statewide average 4.10 expenditure per pupil, according to clause (a), adjusted 4.11 pursuant to clause (b), multiplied by the number of nonpublic 4.12 school pupils who make requests pursuant to this section and who 4.13 are enrolled as of September 15 of the current school year. 4.14 Sec. 4. Minnesota Statutes 2004, section 123B.75, is 4.15 amended by adding a subdivision to read: 4.16 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 4.17 a calendar year by a school district under section 298.28, 4.18 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 4.19 is fully recognized in the fiscal year in which the February 4.20 payment falls. 4.21 [EFFECTIVE DATE.] This section is effective for revenue for 4.22 fiscal year 2006. 4.23 Sec. 5. Minnesota Statutes 2004, section 123B.76, 4.24 subdivision 3, is amended to read: 4.25 Subd. 3. [EXPENDITURES BY BUILDING.] (a) For the purposes 4.26 of this section, "building" means education site as defined in 4.27 section 123B.04, subdivision 1. 4.28 (b) Each district shall maintain separate accounts to 4.29 identify general fund expenditures, excluding capital4.30expenditures and pupil transportation,for each building. All 4.31 expenditures for regular instruction, secondary vocational 4.32 instruction, and school administration must be reported to the 4.33 department separately for each building. All expenditures for 4.34 special education instruction, instructional support services, 4.35 and pupil support services provided within a specific building 4.36 must be reported to the department separately for each 5.1 building. Salary expenditures reported by building must reflect 5.2 actual salaries for staff at the building and must not be based 5.3 on districtwide averages. All other general fund expenditures 5.4 may be reported by building or on a districtwide basis. 5.5 (c) The department must annually report information showing 5.6 school district general fund expenditures per pupil by program 5.7 category for each building and estimated school district general 5.8 fund revenue generated by pupils attending each building on its 5.9 Web site. For purposes of this report: 5.10 (1) expenditures notrequired to bereported by building 5.11 shall be allocated among buildings on a uniform per pupil basis; 5.12 (2) basic skills revenue shall be allocated according to 5.13 section 126C.10, subdivision 4; 5.14 (3) secondary sparsity revenue and elementary sparsity 5.15 revenue shall be allocated according to section 126C.10, 5.16 subdivisions 7 and 8; 5.17 (4) other general education revenue shall be allocated on a 5.18 uniform per pupil unit basis; 5.19 (5) first grade preparedness aid shall be allocated 5.20 according to section 124D.081; 5.21 (6) state and federal special education aid and Title I aid 5.22 shall be allocated in proportion to district expenditures for 5.23 these programs by building; and 5.24 (7) other general fund revenues shall be allocated on a 5.25 uniform per pupil basis, except that the department may allocate 5.26 other revenues attributable to specific buildings directly to 5.27 those buildings. 5.28 Sec. 6. Minnesota Statutes 2004, section 123B.79, 5.29 subdivision 6, is amended to read: 5.30 Subd. 6. [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 5.31 On June 30 of each year, a district may make a permanent 5.32 transfer from the general fund account entitled "undesignated5.33 net unreserved general fund balance since statutory operating 5.34 debt" to the account entitled "reserved fund balance reserve 5.35 account for purposes of statutory operating debt reduction." 5.36 The amount of the transfer is limited to the lesser of (a) the 6.1 netundesignated operatingunreserved general fund balance, or 6.2 (b) the sum of the remaining statutory operating debt levies 6.3 authorized for all future years according to section 126C.42, 6.4 subdivision 1. If the netundesignated operatingunreserved 6.5 general fund balance is less than zero, the district may not 6.6 make a transfer. 6.7 Sec. 7. Minnesota Statutes 2004, section 123B.81, 6.8 subdivision 1, is amended to read: 6.9 Subdivision 1. [OPERATING DEBT.] The "operating debt" of a 6.10 school district means the net negativeundesignatedunreserved 6.11 general fund balancein all school district funds, other than6.12capital expenditure, building construction, debt service, and6.13trust and agency,calculated as of June 30 of each year in 6.14 accordance with the uniform financial accounting and reporting 6.15 standards for Minnesota school districts. 6.16 Sec. 8. Minnesota Statutes 2004, section 123B.82, is 6.17 amended to read: 6.18 123B.82 [REORGANIZATION OPERATING DEBT.] 6.19 The "reorganization operating debt" of a school district 6.20 means the net negativeundesignatedunreserved fundbalance6.21 balances in all school district funds, other than building 6.22 construction, debt redemption, and trust and agency, calculated 6.23 in accordance with the uniform financial accounting and 6.24 reporting standards for Minnesota school districts as of: 6.25 (1) June 30 of the fiscal year before the first year that a 6.26 district receives revenue according to section 123A.39, 6.27 subdivision 3; or 6.28 (2) June 30 of the fiscal year before the effective date of 6.29 reorganization according to section 123A.46 or 123A.48. 6.30 Sec. 9. Minnesota Statutes 2004, section 123B.83, 6.31 subdivision 2, is amended to read: 6.32 Subd. 2. [UNDESIGNATEDUNRESERVED FUND BALANCES.] 6.33Beginning in fiscal year 1978 and each year thereafter, anyA 6.34 school districtnot subject to the provisions of subdivision 16.35 must limit its expenditures so that itsundesignatednet 6.36 unreserved general fundbalances dobalance does not constitute 7.1 statutory operating debt as defined in section 126C.42. 7.2 Sec. 10. Minnesota Statutes 2004, section 123B.92, 7.3 subdivision 1, is amended to read: 7.4 Subdivision 1. [DEFINITIONS.] For purposes of this section 7.5 and section 125A.76, the terms defined in this subdivision have 7.6 the meanings given to them. 7.7 (a) "Actual expenditure per pupil transported in the 7.8 regular and excess transportation categories" means the quotient 7.9 obtained by dividing: 7.10 (1) the sum of: 7.11 (i) all expenditures for transportation in the regular 7.12 category, as defined in paragraph (b), clause (1), and the 7.13 excess category, as defined in paragraph (b), clause (2), plus 7.14 (ii) an amount equal to one year's depreciation on the 7.15 district's school bus fleet and mobile units computed on a 7.16 straight line basis at the rate of 15 percent per year for 7.17 districts operating a program under section 124D.128 for grades 7.18 1 to 12 for all students in the district and 12-1/2 percent per 7.19 year for other districts of the cost of the fleet, plus 7.20 (iii) an amount equal to one year's depreciation on the 7.21 district's type three school buses, as defined in section 7.22 169.01, subdivision 6, clause (5), which must be used a majority 7.23 of the time for pupil transportation purposes, computed on a 7.24 straight line basis at the rate of 20 percent per year of the 7.25 cost of the type three school buses by: 7.26 (2) the number of pupils eligible for transportation in the 7.27 regular category, as defined in paragraph (b), clause (1), and 7.28 the excess category, as defined in paragraph (b), clause (2). 7.29 (b) "Transportation category" means a category of 7.30 transportation service provided to pupils as follows: 7.31 (1) Regular transportation is: 7.32 (i) transportation to and from school during the regular 7.33 school year for resident elementary pupils residing one mile or 7.34 more from the public or nonpublic school they attend, and 7.35 resident secondary pupils residing two miles or more from the 7.36 public or nonpublic school they attend, excluding desegregation 8.1 transportation and noon kindergarten transportation; but with 8.2 respect to transportation of pupils to and from nonpublic 8.3 schools, only to the extent permitted by sections 123B.84 to 8.4 123B.87; 8.5 (ii) transportation of resident pupils to and from language 8.6 immersion programs; 8.7 (iii) transportation of a pupil who is a custodial parent 8.8 and that pupil's child between the pupil's home and the child 8.9 care provider and between the provider and the school, if the 8.10 home and provider are within the attendance area of the school; 8.11 (iv) transportation to and from or board and lodging in 8.12 another district, of resident pupils of a district without a 8.13 secondary school; and 8.14 (v) transportation to and from school during the regular 8.15 school year required under subdivision 3 for nonresident 8.16 elementary pupils when the distance from the attendance area 8.17 border to the public school is one mile or more, and for 8.18 nonresident secondary pupils when the distance from the 8.19 attendance area border to the public school is two miles or 8.20 more, excluding desegregation transportation and noon 8.21 kindergarten transportation. 8.22 For the purposes of this paragraph, a district may 8.23 designate a licensed day care facility, respite care facility, 8.24 the residence of a relative, or the residence of a person chosen 8.25 by the pupil's parent or guardian as the home of a pupil for 8.26 part or all of the day, if requested by the pupil's parent or 8.27 guardian, and if that facility or residence is within the 8.28 attendance area of the school the pupil attends. 8.29 (2) Excess transportation is: 8.30 (i) transportation to and from school during the regular 8.31 school year for resident secondary pupils residing at least one 8.32 mile but less than two miles from the public or nonpublic school 8.33 they attend, and transportation to and from school for resident 8.34 pupils residing less than one mile from school who are 8.35 transported because of extraordinary traffic, drug, or crime 8.36 hazards; and 9.1 (ii) transportation to and from school during the regular 9.2 school year required under subdivision 3 for nonresident 9.3 secondary pupils when the distance from the attendance area 9.4 border to the school is at least one mile but less than two 9.5 miles from the public school they attend, and for nonresident 9.6 pupils when the distance from the attendance area border to the 9.7 school is less than one mile from the school and who are 9.8 transported because of extraordinary traffic, drug, or crime 9.9 hazards. 9.10 (3) Desegregation transportation is transportation within 9.11 and outside of the district during the regular school year of 9.12 pupils to and from schools located outside their normal 9.13 attendance areas under a plan for desegregation mandated by the 9.14 commissioner or under court order. 9.15 (4) "Transportation services for pupils with disabilities" 9.16 is: 9.17 (i) transportation of pupils with disabilities who cannot 9.18 be transported on a regular school bus between home or a respite 9.19 care facility and school; 9.20 (ii) necessary transportation of pupils with disabilities 9.21 from home or from school to other buildings, including centers 9.22 such as developmental achievement centers, hospitals, and 9.23 treatment centers where special instruction or services required 9.24 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 9.25 are provided, within or outside the district where services are 9.26 provided; 9.27 (iii) necessary transportation for resident pupils with 9.28 disabilities required by sections 125A.12, and 125A.26 to 9.29 125A.48; 9.30 (iv) board and lodging for pupils with disabilities in a 9.31 district maintaining special classes; 9.32 (v) transportation from one educational facility to another 9.33 within the district for resident pupils enrolled on a 9.34 shared-time basis in educational programs, and necessary 9.35 transportation required by sections 125A.18, and 125A.26 to 9.36 125A.48, for resident pupils with disabilities who are provided 10.1 special instruction and services on a shared-time basis or if 10.2 resident pupils are not transported, the costs of necessary 10.3 travel between public and private schools or neutral 10.4 instructional sites by essential personnel employed by the 10.5 district's program for children with a disability; 10.6 (vi) transportation for resident pupils with disabilities 10.7 to and from board and lodging facilities when the pupil is 10.8 boarded and lodged for educational purposes; and 10.9 (vii) services described in clauses (i) to (vi), when 10.10 provided for pupils with disabilities in conjunction with a 10.11 summer instructional program that relates to the pupil's 10.12 individual education plan or in conjunction with a learning year 10.13 program established under section 124D.128. 10.14 For purposes of computing special education base revenue 10.15 under section 125A.76, subdivision 2, the cost of providing 10.16 transportation for children with disabilities includes (A) the 10.17 additional cost of transporting a homeless student from a 10.18 temporary nonshelter home in another district to the school of 10.19 origin, or a formerly homeless student from a permanent home in 10.20 another district to the school of origin but only through the 10.21 end of the academic year; and (B) depreciation on district-owned 10.22 school buses purchased after July 1, 2005, and used primarily 10.23 for transportation of pupils with disabilities, calculated 10.24 according to paragraph (a), clauses (ii) and (iii). 10.25 Depreciation costs included in the disabled transportation 10.26 category must be excluded in calculating the actual expenditure 10.27 per pupil transported in the regular and excess transportation 10.28 categories according to paragraph (a). 10.29 (5) "Nonpublic nonregular transportation" is: 10.30 (i) transportation from one educational facility to another 10.31 within the district for resident pupils enrolled on a 10.32 shared-time basis in educational programs, excluding 10.33 transportation for nonpublic pupils with disabilities under 10.34 clause (4); 10.35 (ii) transportation within district boundaries between a 10.36 nonpublic school and a public school or a neutral site for 11.1 nonpublic school pupils who are provided pupil support services 11.2 pursuant to section 123B.44; and 11.3 (iii) late transportation home from school or between 11.4 schools within a district for nonpublic school pupils involved 11.5 in after-school activities. 11.6 (c) "Mobile unit" means a vehicle or trailer designed to 11.7 provide facilities for educational programs and services, 11.8 including diagnostic testing, guidance and counseling services, 11.9 and health services. A mobile unit located off nonpublic school 11.10 premises is a neutral site as defined in section 123B.41, 11.11 subdivision 13. 11.12 Sec. 11. Minnesota Statutes 2004, section 123B.92, 11.13 subdivision 5, is amended to read: 11.14 Subd. 5. [DISTRICT REPORTS.] (a) Each district must report 11.15 data to the department as required by the department to account 11.16 for transportation expenditures. 11.17 (b) Salaries and fringe benefits of district employees 11.18 whose primary duties are other than transportation, including 11.19 central office administrators and staff, building administrators 11.20 and staff, teachers, social workers, school nurses, and 11.21 instructional aides, must not be included in a district's 11.22 transportation expenditures, except that a district may include 11.23 salaries and benefits according to paragraph (c) for (1) an 11.24 employee designated as the district transportation director, (2) 11.25 an employee providing direct support to the transportation 11.26 director, or (3) an employee providing direct transportation 11.27 services such as a bus driver or bus aide. 11.28 (c) Salaries and fringe benefits of other district 11.29 employees who work part time in transportation and part time in 11.30 other areas must not be included in a district's transportation 11.31 expenditures unless the district maintains documentation of the 11.32 employee's time spent on pupil transportation matters in the 11.33 form and manner prescribed by the department. 11.34 (d) Pupil transportation expenditures, excluding 11.35 expenditures for capital outlay, leased buses, student board and 11.36 lodging, crossing guards, and aides on buses, must be allocated 12.1 among transportation categories based on cost-per-mile, 12.2 cost-per-student, cost-per-hour, or cost-per-route, regardless 12.3 of whether the transportation services are provided on 12.4 district-owned or contractor-owned school buses. Expenditures 12.5 for school bus driver salaries and fringe benefits may either be 12.6 directly charged to the appropriate transportation category or 12.7 may be allocated among transportation categories based on 12.8 cost-per-mile, cost-per-student, cost-per-hour, or 12.9 cost-per-route. Expenditures by private contractors or 12.10 individuals who provide transportation exclusively in one 12.11 transportation category must be charged directly to the 12.12 appropriate transportation category. Transportation services 12.13 provided by contractor-owned school bus companies incorporated 12.14 under different names but owned by the same individual or group 12.15 of individuals must be treated as the same company for cost 12.16 allocation purposes. 12.17 [EFFECTIVE DATE.] This section is effective for expenditure 12.18 reporting for fiscal year 2006. 12.19 Sec. 12. Minnesota Statutes 2004, section 123B.92, 12.20 subdivision 9, is amended to read: 12.21 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 12.22 district's nonpublic pupil transportation aid forthe 1996-199712.23and later school years fortransportation services for nonpublic 12.24 school pupils according to sections 123B.88, 123B.84 to 123B.86, 12.25 and this section, equals the sum of the amounts computed in 12.26 paragraphs (b) and (c). This aid does not limit the obligation 12.27 to transport pupils under sections 123B.84 to 123B.87. 12.28 (b) For regular and excess transportation according to 12.29 subdivision 1, paragraph (b), clauses (1) and (2), an amount 12.30 equal to the product of: 12.31 (1) the district's actual expenditure per pupil transported 12.32 in the regular and excess transportation categories during the 12.33 second preceding school year; times 12.34 (2) the number of nonpublic school pupils residing in the 12.35 district who receive regular or excess transportation service or 12.36 reimbursement for the current school year; times 13.1 (3)the ratio of the formula allowance pursuant to section13.2126C.10, subdivision 2, for the current school year to the13.3formula allowance pursuant to section 126C.10, subdivision 2,13.4for the second preceding school year1.03 for fiscal year 2006, 13.5 1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 13.6 for fiscal year 2009 and later. 13.7 (c) For nonpublic nonregular transportation according to 13.8 subdivision 1, paragraph (b), clause (5), an amount equal to the 13.9 product of: 13.10 (1) the district's actual expenditure for nonpublic 13.11 nonregular transportation during the second preceding school 13.12 year; times 13.13 (2)the ratio of the formula allowance pursuant to section13.14126C.10, subdivision 2, for the current school year to the13.15formula allowance pursuant to section 126C.10, subdivision 2,13.16for the second preceding school year1.03 for fiscal year 2006, 13.17 1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 13.18 for fiscal year 2009 and later. 13.19(d) Notwithstanding the amount of the formula allowance for13.20fiscal year 2004 in section 126C.10, subdivision 2, the13.21commissioner shall use the amount of the formula allowance for13.22the current year minus $415 in determining the nonpublic pupil13.23transportation revenue in paragraphs (b) and (c) for fiscal year13.242004.13.25 Sec. 13. Minnesota Statutes 2004, section 124D.68, 13.26 subdivision 9, is amended to read: 13.27 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 13.28 attending an eligible program full time under subdivision 3, 13.29 paragraph (d), the department must pay 90 percent of the 13.30 district's average general education revenue less basic skills 13.31 revenue to the eligible program and ten percent of the 13.32 district's average general education revenue less basic skills 13.33 revenue to the contracting district within 30 days after the 13.34 eligible program verifies enrollment using the form provided by 13.35 the department. For a pupil attending an eligible program part 13.36 time, revenue, excluding compensatory revenue, shall be reduced 14.1 proportionately, according to the amount of time the pupil 14.2 attends the program, and the payments to the eligible program 14.3 and the contracting district shall be reduced accordingly. A 14.4 pupil for whom payment is made according to this section may not 14.5 be counted by any district for any purpose other than 14.6 computation of general education revenue. If payment is made 14.7 for a pupil under this subdivision, a district shall not 14.8 reimburse a program under section 124D.69 for the same 14.9 pupil. The basic skills revenueshall be paidgenerated by 14.10 pupils attending the eligible program according to section 14.11 126C.10, subdivision 4, shall be paid to the eligible program. 14.12 (b) The department must pay up to 100 percent of the 14.13 revenue to the eligible program if there is an agreement to that 14.14 effect between the school district and the eligible program. 14.15 (c) Notwithstanding paragraphs (a) and (b), for an eligible 14.16 program that provides chemical treatment services to students, 14.17 the department must pay 100 percent of the revenue to the 14.18 eligible program. 14.19 Sec. 14. Minnesota Statutes 2004, section 124D.69, 14.20 subdivision 1, is amended to read: 14.21 Subdivision 1. [AID.] If a pupil enrolls in an alternative 14.22 program, eligible under section 124D.68, subdivision 3, 14.23 paragraph (d), or subdivision 4, operated by a private 14.24 organization that has contracted with a school district to 14.25 provide educational services for eligible pupils under section 14.26 124D.68, subdivision 2, the district contracting with the 14.27 private organization must reimburse the provider an amount equal 14.28 to the sum of (1) at least 95 percent of the district's average 14.29 general education less basic skills revenue per pupil unit times 14.30 the number of pupil units for pupils attending the program., and 14.31 (2) the amount of basic skills revenueshall be paidgenerated 14.32 by pupils attending the program according to section 126C.10, 14.33 subdivision 4.Compensatory revenue must be allocated according14.34to section 126C.15, subdivision 2.For a pupil attending the 14.35 program part time, the revenue paid to the program, excluding 14.36 compensatory revenue, must be reduced proportionately, according 15.1 to the amount of time the pupil attends the program, and revenue 15.2 paid to the district shall be reduced accordingly. Pupils for 15.3 whom a district provides reimbursement may not be counted by the 15.4 district for any purpose other than computation of general 15.5 education revenue. If payment is made to a district or program 15.6 for a pupil under this section, the department must not make a 15.7 payment for the same pupil under section 124D.68, subdivision 9. 15.8 Notwithstanding sections 125A.15, 125A.51, and 125A.515, general 15.9 education revenue for a student who receives educational 15.10 services under this section shall be paid according to this 15.11 section. 15.12 Sec. 15. Minnesota Statutes 2004, section 125A.51, is 15.13 amended to read: 15.14 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 15.15 EDUCATION AND TRANSPORTATION.] 15.16 The responsibility for providing instruction and 15.17 transportation for a pupil without a disability who has a 15.18 short-term or temporary physical or emotional illness or 15.19 disability, as determined by the standards of the commissioner, 15.20 and who is temporarily placed for care and treatment for that 15.21 illness or disability, must be determined as provided in this 15.22 section. 15.23 (a) The school district of residence of the pupil is the 15.24 district in which the pupil's parent or guardian resides. 15.25 (b) When parental rights have been terminated by court 15.26 order, the legal residence of a child placed in a residential or 15.27 foster facility for care and treatment is the district in which 15.28 the child resides. 15.29 (c) Before the placement of a pupil for care and treatment, 15.30 the district of residence must be notified and provided an 15.31 opportunity to participate in the placement decision. When an 15.32 immediate emergency placement is necessary and time does not 15.33 permit resident district participation in the placement 15.34 decision, the district in which the pupil is temporarily placed, 15.35 if different from the district of residence, must notify the 15.36 district of residence of the emergency placement within 15 days 16.1 of the placement. 16.2 (d) When a pupil without a disability is temporarily placed 16.3 for care and treatment in a day program and the pupil continues 16.4 to live within the district of residence during the care and 16.5 treatment, the district of residence must provide instruction 16.6 and necessary transportation to and from the treatment facility 16.7 for the pupil. Transportation shall only be provided by the 16.8 district during regular operating hours of the district. The 16.9 district may provide the instruction at a school within the 16.10 district of residence, at the pupil's residence, or in the case 16.11 of a placement outside of the resident district, in the district 16.12 in which the day treatment program is located by paying tuition 16.13 to that district. The district of placement may contract with a 16.14 facility to provide instruction by teachers licensed by the 16.15 state Board of Teaching. 16.16 (e) When a pupil without a disability is temporarily placed 16.17 in a residential program for care and treatment, the district in 16.18 which the pupil is placed must provide instruction for the pupil 16.19 and necessary transportation while the pupil is receiving 16.20 instruction, and in the case of a placement outside of the 16.21 district of residence, the nonresident district must bill the 16.22 district of residence for the actual cost of providing the 16.23 instruction for the regular school year and for summer school, 16.24 excluding transportation costs. 16.25 (f) Notwithstanding paragraph (e), if the pupil is homeless 16.26 and placed in a public or private homeless shelter, then the 16.27 district that enrolls the pupil under section 127A.47, 16.28 subdivision 2, shall provide the transportation, unless the 16.29 district that enrolls the pupil and the district in which the 16.30 pupil is temporarily placed agree that the district in which the 16.31 pupil is temporarily placed shall provide transportation. When 16.32 a pupil without a disability is temporarily placed in a 16.33 residential program outside the district of residence, the 16.34 administrator of the court placing the pupil must send timely 16.35 written notice of the placement to the district of residence. 16.36 The district of placement may contract with a residential 17.1 facility to provide instruction by teachers licensed by the 17.2 state Board of Teaching. For purposes of this section, the state 17.3 correctional facilities operated on a fee-for-service basis are 17.4 considered to be residential programs for care and treatment. 17.5(f)(g) The district of residence must include the pupil in 17.6 its residence count of pupil units and pay tuition as provided 17.7 in section 123A.488 to the district providing the instruction. 17.8 Transportation costs must be paid by the district providing the 17.9 transportation and the state must pay transportation aid to that 17.10 district. For purposes of computing state transportation aid, 17.11 pupils governed by this subdivision must be included in the 17.12 disabled transportation category if the pupils cannot be 17.13 transported on a regular school bus route without special 17.14 accommodations. 17.15 Sec. 16. Minnesota Statutes 2004, section 126C.01, 17.16 subdivision 11, is amended to read: 17.17 Subd. 11. [NETUNAPPROPRIATED OPERATINGUNRESERVED GENERAL 17.18 FUND BALANCE.] "Netunappropriated operatingunreserved general 17.19 fund balance" means the sum of the unreserved general fund 17.20balances in the general, food service, and community service17.21funds minus the balances reserved for statutory operating debt17.22reduction, bus purchase, severance pay, taconite, unemployment17.23benefits, maintenance levy reduction, operating capital,17.24disabled access, health and safety,balance and encumbrances, 17.25 computed as of June 30 each year. 17.26 Sec. 17. Minnesota Statutes 2004, section 126C.05, is 17.27 amended by adding a subdivision to read: 17.28 Subd. 20. [PROJECT-BASED AVERAGE DAILY MEMBERSHIP.] (a) To 17.29 receive general education revenue for a pupil enrolled in a 17.30 public school with a project-based program, a school must meet 17.31 the requirements in this paragraph. The school must: 17.32 (1) register with the commissioner as a project-based 17.33 program by May 30 of the preceding fiscal year; 17.34 (2) provide a minimum teacher contact of no less than one 17.35 hour per week per project-based credit for each pupil; 17.36 (3) maintain a record system that shows when each credit or 18.1 portion thereof was reported for membership for each pupil; and 18.2 (4) report pupil membership consistent with paragraph (b). 18.3 (b) The commissioner must develop a formula for reporting 18.4 pupil membership to compute average daily membership for each 18.5 registered project-based school. Average daily membership for a 18.6 pupil in a registered project-based program is the lesser of: 18.7 (1) 1.0; or 18.8 (2) the ratio of (i) the number of membership hours 18.9 generated by project-based credits completed during the school 18.10 year plus membership hours generated by credits completed in a 18.11 seat-based setting to (ii) the annual required instructional 18.12 hours at that grade level. Membership hours for a partially 18.13 completed project-based credit must be prorated. 18.14 Sec. 18. Minnesota Statutes 2004, section 126C.10, 18.15 subdivision 1, is amended to read: 18.16 Subdivision 1. [GENERAL EDUCATION REVENUE.](a) For fiscal18.17year 2003, the general education revenue for each district18.18equals the sum of the district's basic revenue, basic skills18.19revenue, training and experience revenue, secondary sparsity18.20revenue, elementary sparsity revenue, transportation sparsity18.21revenue, total operating capital revenue, and equity revenue.18.22(b)For fiscal year20042006 and later, the general 18.23 education revenue for each district equals the sum of the 18.24 district's basic revenue, extended time revenue, gifted and 18.25 talented revenue, basic skills revenue, training and experience 18.26 revenue, secondary sparsity revenue, elementary sparsity 18.27 revenue, transportation sparsity revenue, total operating 18.28 capital revenue, equity revenue, alternative compensation 18.29 revenue, and transition revenue. 18.30 [EFFECTIVE DATE.] This section is effective for revenue for 18.31 fiscal year 2006. 18.32 Sec. 19. Minnesota Statutes 2004, section 126C.10, 18.33 subdivision 2, is amended to read: 18.34 Subd. 2. [BASIC REVENUE.] The basic revenue for each 18.35 district equals the formula allowance times the adjusted 18.36 marginal cost pupil units for the school year. The formula 19.1 allowance for fiscal year20012006 is$3,964. The formula19.2allowance for fiscal year 2002 is $4,068. The formula allowance19.3for fiscal year 2003 and subsequent years is $4,601$4,740. The 19.4 formula allowance for fiscal year 2007 and later is $4,885. 19.5 Sec. 20. Minnesota Statutes 2004, section 126C.10, is 19.6 amended by adding a subdivision to read: 19.7 Subd. 2b. [GIFTED AND TALENTED REVENUE.] Gifted and 19.8 talented revenue for each district equals $15 times the 19.9 district's adjusted marginal cost pupil units. For fiscal year 19.10 2006 only, a district is eligible for start-up revenue equal to 19.11 $3 times the adjusted marginal cost pupil units for that year. 19.12 A school district must reserve gifted and talented revenue and, 19.13 consistent with section 120B.15, must spend the revenue only to: 19.14 (1) identify gifted and talented students; 19.15 (2) provide education programs for gifted and talented 19.16 students; or 19.17 (3) provide staff development to prepare teachers to best 19.18 meet the unique needs of gifted and talented students. 19.19 [EFFECTIVE DATE.] This section is effective for revenue for 19.20 fiscal year 2006 and later. 19.21 Sec. 21. Minnesota Statutes 2004, section 126C.10, 19.22 subdivision 3, is amended to read: 19.23 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) For fiscal 19.24 year 2006 and later, the compensatory education revenue for each 19.25 building in the district equalsthe formula allowance minus19.26$415$4,186 times the compensation revenue pupil units computed 19.27 according to section 126C.05, subdivision 3. Revenue shall be 19.28 paid to the district and must be allocated according to section 19.29 126C.15, subdivision 2. 19.30 (b) When the district contracting with an alternative 19.31 program under section 124D.69 changes prior to the start of a 19.32 school year, the compensatory revenue generated by pupils 19.33 attending the program shall be paid to the district contracting 19.34 with the alternative program for the current school year, and 19.35 shall not be paid to the district contracting with the 19.36 alternative program for the prior school year. 20.1 (c) When the fiscal agent district for an area learning 20.2 center changes prior to the start of a school year, the 20.3 compensatory revenue shall be paid to the fiscal agent district 20.4 for the current school year, and shall not be paid to the fiscal 20.5 agent district for the prior school year. 20.6 Sec. 22. Minnesota Statutes 2004, section 126C.10, 20.7 subdivision 6, is amended to read: 20.8 Subd. 6. [DEFINITIONS.] The definitions in this 20.9 subdivision apply only to subdivisions 7 and 8. 20.10 (a) "High school" means a secondary school that has pupils 20.11 enrolled in at least the 10th, 11th, and 12th grades. If there 20.12 is no secondary school in the district that has pupils enrolled 20.13 in at least the 10th, 11th, and 12th grades, and the school is 20.14 at least 19 miles from the next nearest school, the commissioner 20.15 must designate one school in the district as a high school for 20.16 the purposes of this section. 20.17 (b) "Secondary average daily membership" means, for a 20.18 district that has only one high school, the average daily 20.19 membership of pupils served in grades 7 through 12. For a 20.20 district that has more than one high school, "secondary average 20.21 daily membership" for each high school means the product of the 20.22 average daily membership of pupils served in grades 7 through 12 20.23 in the high school, times the ratio of six to the number of 20.24 grades in the high school. 20.25 (c) "Attendance area" means the total surface area of the 20.26 district, in square miles, divided by the number of high schools 20.27 in the district. For a district that does not operate a high 20.28 school and is less than 19 miles from the nearest operating high 20.29 school, the attendance area equals zero. 20.30 (d) "Isolation index" for a high school means the square 20.31 root of 55 percent of the attendance area plus the distance in 20.32 miles, according to the usually traveled routes, between the 20.33 high school and the nearest high school. For a district in 20.34 which there is located land defined in section 84A.01, 84A.20, 20.35 or 84A.31, the distance in miles is the sum of: 20.36 (1) the square root of one-half of the attendance area; and 21.1 (2) the distance from the border of the district to the 21.2 nearest high school. 21.3 (e) "Qualifying high school" means a high school that has 21.4 an isolation index greater than 23 and that has secondary 21.5 average daily membership of less than 400. 21.6 (f) "Qualifying elementary school" means an elementary 21.7 school that is located 19 miles or more from the nearest 21.8 elementary school or from the nearest elementary school within 21.9 the district and, in either case, has an elementary average 21.10 daily membership of an average of 20 or fewer per grade. 21.11 (g) "Elementary average daily membership" means, for a 21.12 district that has only one elementary school, the average daily 21.13 membership of pupils served in kindergarten through grade 6. 21.14 For a district that has more than one elementary school, 21.15 "average daily membership" for each school means the average 21.16 daily membership of pupils served in kindergarten through grade 21.17 6 multiplied by the ratio of seven to the number of grades in 21.18 the elementary school. 21.19 (h) "Sparsity allowance" means $4,740 for fiscal year 2006 21.20 and $4,885 for fiscal year 2007 and later. 21.21 Sec. 23. Minnesota Statutes 2004, section 126C.10, 21.22 subdivision 7, is amended to read: 21.23 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) A district's 21.24 secondary sparsity revenue for a school year equals the sum of 21.25 the results of the following calculation for each qualifying 21.26 high school in the district: 21.27 (1) theformulasparsity allowance for the school year, 21.28 multiplied by 21.29 (2) the secondary average daily membership of pupils served 21.30 in the high school, multiplied by 21.31 (3) the quotient obtained by dividing 400 minus the 21.32 secondary average daily membership by 400 plus the secondary 21.33 daily membership, multiplied by 21.34 (4) the lesser of 1.5 or the quotient obtained by dividing 21.35 the isolation index minus 23 by ten. 21.36 (b) A newly formed district that is the result of districts 22.1 combining under the cooperation and combination program or 22.2 consolidating under section 123A.48 must receive secondary 22.3 sparsity revenue equal to the greater of: (1) the amount 22.4 calculated under paragraph (a) for the combined district; or (2) 22.5 the sum of the amounts of secondary sparsity revenue the former 22.6 districts had in the year prior to consolidation, increased for 22.7 any subsequent changes in the secondary sparsity formula. 22.8 Sec. 24. Minnesota Statutes 2004, section 126C.10, 22.9 subdivision 8, is amended to read: 22.10 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] A district's 22.11 elementary sparsity revenue equals the sum of the following 22.12 amounts for each qualifying elementary school in the district: 22.13 (1) theformulasparsity allowance for the year, multiplied 22.14 by 22.15 (2) the elementary average daily membership of pupils 22.16 served in the school, multiplied by 22.17 (3) the quotient obtained by dividing 140 minus the 22.18 elementary average daily membership by 140 plus the average 22.19 daily membership. 22.20 Sec. 25. Minnesota Statutes 2004, section 126C.10, 22.21 subdivision 13, is amended to read: 22.22 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 22.23 fiscal year20002006 and thereafter, total operating capital 22.24 revenue for a district equals the amount determined under 22.25 paragraph (b) or (c), plus$73$93 times the adjusted marginal 22.26 cost pupil units for the school year. The revenue must be 22.27 placed in a reserved account in the general fund and may only be 22.28 used according toparagraph (d) orsubdivision 14. 22.29 (b) For fiscal years20002006 and later, capital revenue 22.30 for a district equals $100 times the district's maintenance cost 22.31 index times its adjusted marginal cost pupil units for the 22.32 school year. 22.33 (c)For fiscal years 2000 and later,The revenue for a 22.34 district that operates a program under section 124D.128, is 22.35 increased by an amount equal to $30 times the number of marginal 22.36 cost pupil units served at the site where the program is 23.1 implemented. 23.2(d) For fiscal years 2001, 2002, and 2003, the district23.3must reserve an amount equal to $5 per adjusted marginal cost23.4pupil unit for telecommunication access costs. Reserve revenue23.5under this paragraph must first be used to pay for ongoing or23.6recurring telecommunication access costs, including access to23.7data and video connections, including Internet access. Any23.8revenue remaining after covering all ongoing or recurring access23.9costs may be used for computer hardware or equipment.23.10 Sec. 26. Minnesota Statutes 2004, section 126C.10, 23.11 subdivision 13a, is amended to read: 23.12 Subd. 13a. [OPERATING CAPITAL LEVY.] To obtain operating 23.13 capital revenue for fiscal year20052007 and later, a district 23.14 may levy an amount not more than the product of its operating 23.15 capital revenue for the fiscal year times the lesser of one or 23.16 the ratio of its adjusted net tax capacity per adjusted marginal 23.17 cost pupil unit to$22,222$22,700. 23.18 [EFFECTIVE DATE.] This section is effective for revenue for 23.19 fiscal year 2007. 23.20 Sec. 27. Minnesota Statutes 2004, section 126C.10, 23.21 subdivision 17, is amended to read: 23.22 Subd. 17. [TRANSPORTATION SPARSITY DEFINITIONS.] The 23.23 definitions in this subdivision apply to subdivisions 18 and 19. 23.24 (a) "Sparsity index" for a district means the greater of .2 23.25 or the ratio of the square mile area of the district to the 23.26 resident pupil units of the district. 23.27 (b) "Density index" for a district means the ratio of the 23.28 square mile area of the district to the resident pupil units of 23.29 the district. However, the density index for a district cannot 23.30 be greater than .2 or less than .005. 23.31 (c) "Transportation allowance" means $4,601 for fiscal year 23.32 2007 and later. 23.33 Sec. 28. Minnesota Statutes 2004, section 126C.10, 23.34 subdivision 18, is amended to read: 23.35 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 23.36 A district's transportation sparsity allowance equals the 24.1 greater of zero or the result of the following computation: 24.2(i)(1) Multiply theformulatransportation allowance 24.3according to subdivision 2,by .1469. 24.4(ii)(2) Multiply the result in clause(i)(1) by the 24.5 district's sparsity index raised to the 26/100 power. 24.6(iii)(3) Multiply the result in clause(ii)(2) by the 24.7 district's density index raised to the 13/100 power. 24.8(iv)(4) Multiply theformulatransportation allowance 24.9according to subdivision 2,by .0485. 24.10(v)(5) Subtract the result in clause(iv)(4) from the 24.11 result in clause(iii)(3). 24.12 (b) Transportation sparsity revenue is equal to the 24.13 transportation sparsity allowance times the adjusted marginal 24.14 cost pupil units times 1.08. 24.15 Sec. 29. Minnesota Statutes 2004, section 126C.10, 24.16 subdivision 24, is amended to read: 24.17 Subd. 24. [EQUITY REVENUE.] (a) A school district 24.18 qualifies for equity revenue if: 24.19 (1) the school district's adjusted marginal cost pupil unit 24.20 amount of basic revenue, supplemental revenue, transition 24.21 revenue, and referendum revenue is less than the value of the 24.22 school district at or immediately above the 95th percentile of 24.23 school districts in its equity region for those revenue 24.24 categories; and 24.25 (2) the school district's administrative offices are not 24.26 located in a city of the first class on July 1, 1999. 24.27 (b) Equity revenue for a qualifying district that receives 24.28 referendum revenue under section 126C.17, subdivision 4, equals 24.29 the product of (1) the district's adjusted marginal cost pupil 24.30 units for that year; times (2) the sum of (i) $13, plus (ii) 24.31 $75, times the school district's equity index computed under 24.32 subdivision 27. 24.33 (c) Equity revenue for a qualifying district that does not 24.34 receive referendum revenue under section 126C.17, subdivision 4, 24.35 equals the product of the district's adjusted marginal cost 24.36 pupil units for that year times $13. 25.1 (d) A school district's equity revenue is increased by the 25.2 greater of zero or an amount equal to the district's resident 25.3 marginal pupil units times the difference between ten percent of 25.4 the statewide average amount of referendum revenue per resident 25.5 marginal cost pupil unit for that year and the district's 25.6 referendum revenue per resident marginal cost pupil unit. A 25.7 school district's revenue under this paragraph must not exceed 25.8 $100,000 for that year. 25.9 [EFFECTIVE DATE.] This section is effective for revenue for 25.10 fiscal year 2006. 25.11 Sec. 30. Minnesota Statutes 2004, section 126C.10, 25.12 subdivision 31, is amended to read: 25.13 Subd. 31. [TRANSITION REVENUE.] (a) A district's 25.14 transition allowancefor fiscal years 2004 through 2008equals 25.15 the greater of zero or the product of the ratio of the number of 25.16 adjusted marginal cost pupil units the district would have 25.17 counted for fiscal year 2004 under Minnesota Statutes 2002 to 25.18 the district's adjusted marginal cost pupil units for fiscal 25.19 year 2004, times the difference between: (1) the lesser of the 25.20 district's general education revenue per adjusted marginal cost 25.21 pupil unit for fiscal year 2003 or the amount of general 25.22 education revenue the district would have received per adjusted 25.23 marginal cost pupil unit for fiscal year 2004 according to 25.24 Minnesota Statutes 2002, and (2) the district's general 25.25 education revenue for fiscal year 2004 excluding transition 25.26 revenue divided by the number of adjusted marginal cost pupil 25.27 units the district would have counted for fiscal year 2004 under 25.28 Minnesota Statutes 2002. 25.29A district's transition allowance for fiscal year 2009 and25.30later is zero.25.31 (b) A district's transition revenue for fiscal year200425.32and later2006 and later equals the sum of (1) the product of 25.33 the district's transition allowance times the district's 25.34 adjusted marginal cost pupil units.plus (2) the amount of 25.35 referendum revenue under section 126C.17 and general education 25.36 revenue, excluding transition revenue, for fiscal year 2004 26.1 attributable to pupils four or five years of age on September 1, 26.2 2003, enrolled in a prekindergarten program implemented by the 26.3 district before July 1, 2003, and reported as kindergarten 26.4 pupils under section 126C.05, subdivision 1, for fiscal year 26.5 2004, plus (3) the amount of compensatory education revenue 26.6 under subdivision 3 for fiscal year 2005 attributable to pupils 26.7 four years of age on September 1, 2003, enrolled in a 26.8 prekindergarten program implemented by the district before July 26.9 1, 2003, and reported as kindergarten pupils under section 26.10 126C.05, subdivision 1, for fiscal year 2004. 26.11 Sec. 31. Minnesota Statutes 2004, section 126C.10, is 26.12 amended by adding a subdivision to read: 26.13 Subd. 34. [BASIC ALTERNATIVE COMPENSATION AID.] (a) For 26.14 fiscal year 2006, the basic alternative compensation aid for a 26.15 district or charter school with an alternative compensation plan 26.16 approved under section 122A.415 equals the alternative 26.17 compensation revenue according to section 122A.415, subdivision 26.18 1. The basic alternative compensation aid for a charter school 26.19 with an approved alternative compensation plan under section 26.20 122A.415, subdivision 1, paragraph (c), equals $260 times the 26.21 number of pupils enrolled in the school on October 1 of the 26.22 previous school year, or on October 1 of the current fiscal year 26.23 for a charter school in the first year of operation. 26.24 (b) For fiscal year 2007 and later, the basic alternative 26.25 compensation aid for a district with an alternative compensation 26.26 plan approved under section 122A.415 equals 73.1 percent of the 26.27 alternative compensation revenue according to section 122A.415, 26.28 subdivision 1. The basic alternative compensation aid for a 26.29 charter school with an alternative compensation plan approved 26.30 under section 122A.415 equals $260 times the number of pupils 26.31 enrolled in the school on October 1 of the previous fiscal year, 26.32 or on October 1 of the current fiscal year for a charter school 26.33 in the first year of operation, times the ratio of the sum of 26.34 the alternative compensation aid and alternative compensation 26.35 levy for all participating school districts to the maximum 26.36 alternative compensation revenue for those districts according 27.1 to section 122A.415, subdivision 1. 27.2 (c) Notwithstanding paragraphs (a) and (b) and section 27.3 122A.415, subdivision 1, the state total basic alternative 27.4 compensation aid entitlement must not exceed $19,329,000 for 27.5 fiscal year 2006 and $75,636,000 for fiscal year 2007 and 27.6 later. The commissioner must limit the amount of alternative 27.7 compensation aid approved under section 122A.415 so as not to 27.8 exceed these limits. 27.9 Sec. 32. Minnesota Statutes 2004, section 126C.10, is 27.10 amended by adding a subdivision to read: 27.11 Subd. 35. [ALTERNATIVE COMPENSATION LEVY.] For fiscal year 27.12 2007 and later, the alternative compensation levy for a district 27.13 receiving basic alternative compensation aid equals the product 27.14 of (1) the difference between the district's alternative 27.15 compensation revenue and the district's basic alternative 27.16 compensation aid times (2) the lesser of one or the ratio of the 27.17 district's adjusted net tax capacity per adjusted pupil unit to 27.18 $5,913. 27.19 Sec. 33. Minnesota Statutes 2004, section 126C.10, is 27.20 amended by adding a subdivision to read: 27.21 Subd. 36. [ALTERNATIVE COMPENSATION AID.] (a) For fiscal 27.22 year 2007 and later, a district's alternative compensation 27.23 equalization aid equals the district's alternative compensation 27.24 revenue minus the district's basic alternative compensation aid 27.25 minus the district's alternative compensation levy. If a 27.26 district does not levy the entire amount permitted, the 27.27 alternative compensation equalization aid must be reduced in 27.28 proportion to the actual amount levied. 27.29 (b) A district's alternative compensation aid equals the 27.30 sum of the district's basic alternative compensation aid and the 27.31 district's alternative compensation equalization aid. 27.32 Sec. 34. Minnesota Statutes 2004, section 126C.13, 27.33 subdivision 4, is amended to read: 27.34 Subd. 4. [GENERAL EDUCATION AID.] (a)For fiscal year27.352004, a district's general education aid is the sum of the27.36following amounts:28.1(1) general education revenue;28.2(2) shared time aid according to section 126C.01,28.3subdivision 7;28.4(3) referendum aid according to section 126C.17; and28.5(4) online learning aid according to section 126C.24.28.6(b)For fiscal year2005 and later2006, a district's 28.7 general education aid is the sum of the following amounts: 28.8 (1) general education revenue, excluding equity revenue, 28.9 total operating capital, and transition revenue; 28.10 (2) operating capital aid according to section 126C.10, 28.11 subdivision 13b; 28.12 (3) equity aid according to section 126C.10, subdivision 28.13 30; 28.14 (4) transition aid according to section 126C.10, 28.15 subdivision 33; 28.16 (5) shared time aid according to section 126C.01, 28.17 subdivision 7; 28.18 (6) referendum aid according to section 126C.17; and 28.19 (7) online learning aid according to section 126C.24. 28.20 (b) For fiscal year 2007 and later, a district's general 28.21 education aid is the sum of the following amounts: 28.22 (1) general education revenue, excluding equity revenue, 28.23 total operating capital revenue, alternative compensation 28.24 revenue, and transition revenue; 28.25 (2) operating capital aid according to section 126C.10, 28.26 subdivision 13b; 28.27 (3) equity aid according to section 126C.10, subdivision 28.28 30; 28.29 (4) alternative compensation aid according to section 28.30 126C.10, subdivision 36; 28.31 (5) transition aid according to section 126C.10, 28.32 subdivision 33; 28.33 (6) shared time aid according to section 126C.01, 28.34 subdivision 7; 28.35 (7) referendum aid according to section 126C.17; and 28.36 (8) online learning aid according to section 126C.24. 29.1 Sec. 35. Minnesota Statutes 2004, section 126C.15, 29.2 subdivision 1, is amended to read: 29.3 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 29.4 allocated for prekindergarten programs under subdivision 2, 29.5 paragraph (c), the basic skills revenue under section 126C.10, 29.6 subdivision 4, must be reserved and used to meet the educational 29.7 needs of pupils who enroll under-prepared to learn and whose 29.8 progress toward meeting state or local content or performance 29.9 standards is below the level that is appropriate for learners of 29.10 their age. Any of the following may be provided to meet these 29.11 learners' needs: 29.12 (1) direct instructional services under the assurance of 29.13 mastery program according to section 124D.66; 29.14 (2) remedial instruction in reading, language arts, 29.15 mathematics, other content areas, or study skills to improve the 29.16 achievement level of these learners; 29.17 (3) additional teachers and teacher aides to provide more 29.18 individualized instruction to these learners through individual 29.19 tutoring, lower instructor-to-learner ratios, or team teaching; 29.20 (4) a longer school day or week during the regular school 29.21 year or through a summer program that may be offered directly by 29.22 the site or under a performance-based contract with a 29.23 community-based organization; 29.24 (5) comprehensive and ongoing staff development consistent 29.25 with district and site plans according to section 122A.60, for 29.26 teachers, teacher aides, principals, and other personnel to 29.27 improve their ability to identify the needs of these learners 29.28 and provide appropriate remediation, intervention, 29.29 accommodations, or modifications; 29.30 (6) instructional materials and technology appropriate for 29.31 meeting the individual needs of these learners; 29.32 (7) programs to reduce truancy, encourage completion of 29.33 high school, enhance self-concept, provide health services, 29.34 provide nutrition services, provide a safe and secure learning 29.35 environment, provide coordination for pupils receiving services 29.36 from other governmental agencies, provide psychological services 30.1 to determine the level of social, emotional, cognitive, and 30.2 intellectual development, and provide counseling services, 30.3 guidance services, and social work services; 30.4 (8) bilingual programs, bicultural programs, and programs 30.5 for learners of limited English proficiency; 30.6 (9) all day kindergarten; 30.7 (10) extended school day and extended school year programs; 30.8 and 30.9 (11) substantial parent involvement in developing and 30.10 implementing remedial education or intervention plans for a 30.11 learner, including learning contracts between the school, the 30.12 learner, and the parent that establish achievement goals and 30.13 responsibilities of the learner and the learner's parent or 30.14 guardian. 30.15 Sec. 36. Minnesota Statutes 2004, section 126C.15, 30.16 subdivision 2, is amended to read: 30.17 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 30.18 allocate its compensatory revenue to each school building in the 30.19 district where the children who have generated the revenue are 30.20 served unless the school district has received permission under 30.21 section 63 to allocate compensatory revenue according to student 30.22 performance measures developed by the school board. 30.23 (b) Notwithstanding paragraph (a), a district may allocate 30.24 up to five percent of the amount of compensatory revenue that 30.25 the districtreceived during the previous fiscal yearreceives 30.26 to school sites according to a plan adopted by the school board. 30.27 (c) Notwithstanding paragraph (a), a district may allocate 30.28 up to ten percent of the amount of compensatory revenue the 30.29 district receives to support prekindergarten programs under 30.30 subdivision 2a. 30.31 (d) For the purposes of this section and section 126C.05, 30.32 subdivision 3, "building" means education site as defined in 30.33 section 123B.04, subdivision 1. 30.34(d)(e) If the pupil is served at a site other than one 30.35 owned and operated by the district, the revenue shall be paid to 30.36 the district and used for services for pupils who generate the 31.1 revenue. 31.2 [EFFECTIVE DATE.] This section is effective July 1, 2005, 31.3 for revenue for fiscal year 2006. 31.4 Sec. 37. Minnesota Statutes 2004, section 126C.15, 31.5 subdivision 3, is amended to read: 31.6 Subd. 3. [RECOMMENDATION.] A school site decision-making 31.7 team, as defined in section 123B.04, subdivision 2, paragraph 31.8 (a), or the instruction and curriculum advisory committee under 31.9 section 120B.11, if the school has no school site decision team, 31.10 shall recommend how the compensatory education revenue will be 31.11 used to carry out the purpose of this section. A school 31.12 district that has received permission under section 63 to 31.13 allocate compensatory revenue according to school performance 31.14 measures shall share its plan for the distribution of 31.15 compensatory revenue with the school site decision team. 31.16 [EFFECTIVE DATE.] This section is effective July 1, 2005, 31.17 for revenue for fiscal year 2006. 31.18 Sec. 38. Minnesota Statutes 2004, section 126C.17, 31.19 subdivision 2, is amended to read: 31.20 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a)Notwithstanding31.21subdivision 1, for fiscal year 2003, a district's referendum31.22allowance must not exceed the greater of:31.23(1) the sum of a district's referendum allowance for fiscal31.24year 1994 times 1.162 plus its referendum conversion allowance31.25for fiscal year 2003, minus $415;31.26(2) 18.2 percent of the formula allowance;31.27(3) for a newly reorganized district created on July 1,31.282002, the referendum revenue authority for each reorganizing31.29district in the year preceding reorganization divided by its31.30resident marginal cost pupil units for the year preceding31.31reorganization, minus $415; or31.32(4) for a newly reorganized district created after July 1,31.332002, the referendum revenue authority for each reorganizing31.34district in the year preceding reorganization divided by its31.35resident marginal cost pupil units for the year preceding31.36reorganization.32.1(b)Notwithstanding subdivision 1, for fiscal year200432.2 2007 and later, a district's referendum allowance must not 32.3 exceed the greater of: 32.4 (1) the sum of: (i) a district's referendum allowance for 32.5 fiscal year 1994 times 1.177 times the annual inflationary 32.6 increase as calculated under paragraph (c) plus (ii) its 32.7 referendum conversion allowance for fiscal year 2003, minus 32.8 (iii)$415$115; 32.9 (2) the greater of (i)18.628 percent of the formula 32.10 allowance or (ii)$855.79$1,368 times the annual inflationary 32.11 increase as calculated under paragraph (c); or 32.12 (3) for a newly reorganized district created after July 1, 32.1320022006, the referendum revenue authority for each 32.14 reorganizing district in the year preceding reorganization 32.15 divided by its resident marginal cost pupil units for the year 32.16 preceding reorganization. 32.17(c)(b) For purposes of this subdivision, for fiscal year 32.18 2005 and later, "inflationary increase" means one plus the 32.19 percentage change in the Consumer Price Index for urban 32.20 consumers, as prepared by the United States Bureau of Labor 32.21 Standards, for the current fiscal year to fiscal year 2004. For 32.22 fiscal years 2009 and later, for purposes of paragraph (b), 32.23 clause (1), the inflationary increase equals the inflationary 32.24 increase for fiscal year 2008 plus one-fourth of the percentage 32.25 increase in the formula allowance for that year compared with 32.26 the formula allowance for fiscal year 2008. 32.27 [EFFECTIVE DATE.] This section is effective for revenue for 32.28 fiscal year 2007. 32.29 Sec. 39. Minnesota Statutes 2004, section 126C.17, 32.30 subdivision 5, is amended to read: 32.31 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 32.32 year 2003 and later, a district's referendum equalization 32.33 revenue equals the sum of the first tier referendum equalization 32.34 revenue and the second tier referendum equalization revenue. 32.35 (b) A district's first tier referendum equalization revenue 32.36 equals the district's first tier referendum equalization 33.1 allowance times the district's resident marginal cost pupil 33.2 units for that year. 33.3 (c)For fiscal years 2003 and 2004, a district's first tier33.4referendum equalization allowance equals the lesser of the33.5district's referendum allowance under subdivision 1 or $126.33.6For fiscal year 2005, a district's first tier referendum33.7equalization allowance equals the lesser of the district's33.8referendum allowance under subdivision 1 or $405.For fiscal 33.9 year 2006and later, a district's first tier referendum 33.10 equalization allowance equals the lesser of the district's 33.11 referendum allowance under subdivision 1 or $500. For fiscal 33.12 year 2007 and later, a district's first tier referendum 33.13 equalization allowance equals the lesser of the district's 33.14 referendum allowance under subdivision 1 or $600. 33.15 (d) A district's second tier referendum equalization 33.16 revenue equals the district's second tier referendum 33.17 equalization allowance times the district's resident marginal 33.18 cost pupil units for that year. 33.19 (e) For fiscal year 2006, a district's second tier 33.20 referendum equalization allowance equals the lesser of the 33.21 district's referendum allowance under subdivision 1 or 18.6 33.22 percent of the formula allowance, minus the district's first 33.23 tier referendum equalization allowance. For fiscal year 2007 33.24 and later, a district's second tier referendum equalization 33.25 allowance equals the lesser of the district's referendum 33.26 allowance under subdivision 1 or 28 percent of the formula 33.27 allowance, minus the district's first tier referendum 33.28 equalization allowance. 33.29 (f) Notwithstanding paragraph (e), the second tier 33.30 referendum allowance for a district qualifying for secondary 33.31 sparsity revenue under section 126C.10, subdivision 7, or 33.32 elementary sparsity revenue under section 126C.10, subdivision 33.33 8, equals the district's referendum allowance under subdivision 33.34 1 minus the district's first tier referendum equalization 33.35 allowance. 33.36 Sec. 40. Minnesota Statutes 2004, section 126C.17, 34.1 subdivision 7, is amended to read: 34.2 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 34.3 referendum equalization aid equals the difference between its 34.4 referendum equalization revenue and levy. 34.5 (b) If a district's actual levy for first or second tier 34.6 referendum equalization revenue is less than its maximum levy 34.7 limit for that tier, aid shall be proportionately reduced. 34.8 (c) Notwithstanding paragraph (a), the referendum 34.9 equalization aid for a district, where the referendum 34.10 equalization aid under paragraph (a) exceeds 90 percent of the 34.11 referendum revenue, must not exceed18.628 percent of the 34.12 formula allowance times the district's resident marginal cost 34.13 pupil units. A district's referendum levy is increased by the 34.14 amount of any reduction in referendum aid under this paragraph. 34.15 [EFFECTIVE DATE.] This section is effective for revenue for 34.16 fiscal year 2007. 34.17 Sec. 41. Minnesota Statutes 2004, section 126C.17, 34.18 subdivision 9, is amended to read: 34.19 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 34.20 by section 126C.10, subdivision 1, may be increased in the 34.21 amount approved by the voters of the district at a referendum 34.22 called for the purpose. The referendum may be called by the 34.23 board or shall be called by the board upon written petition of 34.24 qualified voters of the district. The referendum must be 34.25 conducted one or two calendar years before the increased levy 34.26 authority, if approved, first becomes payable. Only one 34.27 election to approve an increase may be held in a calendar year. 34.28 Unless the referendum is conducted by mail under paragraph (g), 34.29 the referendum must be held on the first Tuesday after the first 34.30 Monday in November. The ballot must state the maximum amount of 34.31 the increased revenue per resident marginal cost pupil unit, the 34.32 estimated referendum tax rate as a percentage of referendum 34.33 market value in the first year it is to be levied, and that the 34.34 revenue must be used to finance school operations. The ballot 34.35 may state a schedule, determined by the board, of increased 34.36 revenue per resident marginal cost pupil unit that differs from 35.1 year to year over the number of years for which the increased 35.2 revenue is authorized.If the ballot contains a schedule35.3showing different amounts, it must also indicate the estimated35.4referendum tax rate as a percent of referendum market value for35.5the amount specified for the first year and for the maximum35.6amount specified in the schedule.The ballot may state that 35.7 existing referendum levy authority is expiring. In this case, 35.8 the ballot may also compare the proposed levy authority to the 35.9 existing expiring levy authority, and express the proposed 35.10 increase as the amount, if any, over the expiring referendum 35.11 levy authority. The ballot must designate the specific number 35.12 of years, not to exceed ten, for which the referendum 35.13 authorization applies. The ballot, including a ballot on the 35.14 question to revoke or reduce the increased revenue amount under 35.15 paragraph (c), must abbreviate the term "per resident marginal 35.16 cost pupil unit" as "per pupil." The notice required under 35.17 section 275.60 may be modified to read, in cases of renewing 35.18 existing levies: 35.19 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 35.20 FOR A PROPERTY TAX INCREASE." 35.21 The ballot may contain a textual portion with the 35.22 information required in this subdivision and a question stating 35.23 substantially the following: 35.24 "Shall the increase in the revenue proposed by (petition 35.25 to) the board of ........., School District No. .., be approved?" 35.26 If approved, an amount equal to the approved revenue per 35.27 resident marginal cost pupil unit times the resident marginal 35.28 cost pupil units for the school year beginning in the year after 35.29 the levy is certified shall be authorized for certification for 35.30 the number of years approved, if applicable, or until revoked or 35.31 reduced by the voters of the district at a subsequent referendum. 35.32 (b) The board must prepare and deliver by first class mail 35.33 at least 15 days but no more than 30 days before the day of the 35.34 referendum to each taxpayer a notice of the referendum and the 35.35 proposed revenue increase. The board need not mail more than 35.36 one notice to any taxpayer. For the purpose of giving mailed 36.1 notice under this subdivision, owners must be those shown to be 36.2 owners on the records of the county auditor or, in any county 36.3 where tax statements are mailed by the county treasurer, on the 36.4 records of the county treasurer. Every property owner whose 36.5 name does not appear on the records of the county auditor or the 36.6 county treasurer is deemed to have waived this mailed notice 36.7 unless the owner has requested in writing that the county 36.8 auditor or county treasurer, as the case may be, include the 36.9 name on the records for this purpose. The notice must project 36.10 the anticipated amount of tax increase in annual dollars and 36.11 annual percentage for typical residential homesteads, 36.12 agricultural homesteads, apartments, and commercial-industrial 36.13 property within the school district. 36.14 The notice for a referendum may state that an existing 36.15 referendum levy is expiring and project the anticipated amount 36.16 of increase over the existing referendum levy in the first year, 36.17 if any, in annual dollars and annual percentage for typical 36.18 residential homesteads, agricultural homesteads, apartments, and 36.19 commercial-industrial property within the district. 36.20 The notice must include the following statement: "Passage 36.21 of this referendum will result in an increase in your property 36.22 taxes." However, in cases of renewing existing levies, the 36.23 notice may include the following statement: "Passage of this 36.24 referendum may result in an increase in your property taxes." 36.25 (c) A referendum on the question of revoking or reducing 36.26 the increased revenue amount authorized pursuant to paragraph 36.27 (a) may be called by the board and shall be called by the board 36.28 upon the written petition of qualified voters of the district. 36.29 A referendum to revoke or reduce the revenue amount must state 36.30 the amount per resident marginal cost pupil unit by which the 36.31 authority is to be reduced. Revenue authority approved by the 36.32 voters of the district pursuant to paragraph (a) must be 36.33 available to the school district at least once before it is 36.34 subject to a referendum on its revocation or reduction for 36.35 subsequent years. Only one revocation or reduction referendum 36.36 may be held to revoke or reduce referendum revenue for any 37.1 specific year and for years thereafter. 37.2 (d) A petition authorized by paragraph (a) or (c) is 37.3 effective if signed by a number of qualified voters in excess of 37.4 15 percent of the registered voters of the district on the day 37.5 the petition is filed with the board. A referendum invoked by 37.6 petition must be held on the date specified in paragraph (a). 37.7 (e) The approval of 50 percent plus one of those voting on 37.8 the question is required to pass a referendum authorized by this 37.9 subdivision. 37.10 (f) At least 15 days before the day of the referendum, the 37.11 district must submit a copy of the notice required under 37.12 paragraph (b) to the commissioner and to the county auditor of 37.13 each county in which the district is located. Within 15 days 37.14 after the results of the referendum have been certified by the 37.15 board, or in the case of a recount, the certification of the 37.16 results of the recount by the canvassing board, the district 37.17 must notify the commissioner of the results of the referendum. 37.18 Sec. 42. Minnesota Statutes 2004, section 126C.17, 37.19 subdivision 13, is amended to read: 37.20 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.](a)A school 37.21 district that received supplemental or transition revenue in 37.22 fiscal year 2002 may convert its supplemental revenue conversion 37.23 allowance and transition revenue conversion allowance to 37.24 additional referendum allowance under subdivision 1 for fiscal 37.25 year 2003 and thereafter. A majority of the school board must 37.26 approve the conversion at a public meeting before November 1, 37.27 2001. For a district with other referendum authority, the 37.28 referendum conversion allowance approved by the board continues 37.29 until the portion of the district's other referendum authority 37.30 with the earliest expiration date after June 30, 2006, expires. 37.31 For a district with no other referendum authority, the 37.32 referendum conversion allowance approved by the board continues 37.33 until June 30, 2012. 37.34(b) A school district that received transition revenue in37.35fiscal year 2004 may convert all or part of its transition37.36revenue to referendum revenue with voter approval in a38.1referendum called for the purpose. The referendum must be held38.2in accordance with subdivision 9, except that the ballot may38.3state that existing transition revenue authority is being38.4canceled or is expiring. In this case, the ballot shall compare38.5the proposed referendum allowance to the canceled or expiring38.6transition revenue allowance. For purposes of this comparison,38.7the canceled or expiring transition revenue allowance per38.8adjusted marginal cost pupil unit shall be converted to an38.9allowance per resident marginal cost pupil unit based on the38.10district's ratio of adjusted marginal cost pupil units to38.11resident marginal cost pupil units for the preceding fiscal38.12year. The referendum must be held on the first Tuesday after38.13the first Monday in November. The notice required under section38.14275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT38.15QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."38.16Elections under this paragraph must be held in 2007 or earlier.38.17 Sec. 43. Minnesota Statutes 2004, section 126C.21, 38.18 subdivision 4, is amended to read: 38.19 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any38.20provisions of any other law to the contrary, the adjusted net38.21tax capacity used in calculating general education aid may38.22include only that property that is currently taxable in the38.23district.38.24(2)For districts thatreceived paymentshave revenue under 38.25 sections 298.018; 298.225; 229.24 to 298.28, excluding 298.26 38.26 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 38.27 298.391 to 298.396;and298.405; and 477A.15, or any law 38.28 imposing a tax upon severed mineral values;or recognized38.29revenue under section 477A.15;, the general education aid must 38.30 be reduced in the final adjustment payment by (1) thedifference38.31between the dollaramount of thepayments receivedrevenue 38.32 recognized pursuant to those sections, or revenue recognized38.33under section 477A.15 infor the fiscal year to which the final 38.34 adjustment is attributableand, less (2) the amount that was 38.35 calculated, pursuant to section 126C.48, subdivision 8, as a 38.36 reduction of the levy attributable to the fiscal year to which 39.1 the final adjustment is attributable. If the final adjustment 39.2 of a district's general education aid for a fiscal year is a 39.3 negative amount because of thisclausesubdivision, the next 39.4 fiscal year's general education aid to that district must be 39.5 reduced by this negative amount in the following manner: there 39.6 must be withheld from each scheduled general education aid 39.7 payment due the district in such fiscal year, 15 percent of the 39.8 total negative amount, until the total negative amount has been 39.9 withheld. The amount reduced from general education aid 39.10 pursuant to thisclausesubdivision mustbe recognized asreduce 39.11 revenue in the fiscal year to which the final adjustment payment 39.12 is attributable. 39.13 [EFFECTIVE DATE.] This section is effective for revenue for 39.14 fiscal year 2006. 39.15 Sec. 44. Minnesota Statutes 2004, section 126C.40, 39.16 subdivision 1, is amended to read: 39.17 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 39.18 independent or a special school district or a group of 39.19 independent or special school districts finds it economically 39.20 advantageous to rent or lease a building or land for any 39.21 instructional purposesor, for school storage or furniture 39.22 repair, or for administrative space according to paragraph (j), 39.23 and it determines that the operating capital revenue authorized 39.24 under section 126C.10, subdivision 13, is insufficient for this 39.25 purpose, it may apply to the commissioner for permission to make 39.26 an additional capital expenditure levy for this purpose. An 39.27 application for permission to levy under this subdivision must 39.28 contain financial justification for the proposed levy, the terms 39.29 and conditions of the proposed lease, and a description of the 39.30 space to be leased and its proposed use. 39.31 (b) The criteria for approval of applications to levy under 39.32 this subdivision must include: the reasonableness of the price, 39.33 the appropriateness of the space to the proposed activity, the 39.34 feasibility of transporting pupils to the leased building or 39.35 land, conformity of the lease to the laws and rules of the state 39.36 of Minnesota, and the appropriateness of the proposed lease to 40.1 the space needs and the financial condition of the district. 40.2 The commissioner must not authorize a levy under this 40.3 subdivision in an amount greater than90 percent ofthe cost to 40.4 the district of renting or leasing a building or land for 40.5 approved purposes. The proceeds of this levy must not be used 40.6 for custodial or other maintenance services. A district may not 40.7 levy under this subdivision for the purpose of leasing or 40.8 renting a district-owned building or site to itself. 40.9 (c) For agreements finalized after July 1, 1997, a district 40.10 may not levy under this subdivision for the purpose of leasing: 40.11 (1) a newly constructed building used primarily for regular 40.12 kindergarten, elementary, or secondary instruction; or (2) a 40.13 newly constructed building addition or additions used primarily 40.14 for regular kindergarten, elementary, or secondary instruction 40.15 that contains more than 20 percent of the square footage of the 40.16 previously existing building. 40.17 (d) Notwithstanding paragraph (b), a district may levy 40.18 under this subdivision for the purpose of leasing or renting a 40.19 district-owned building or site to itself only if the amount is 40.20 needed by the district to make payments required by a lease 40.21 purchase agreement, installment purchase agreement, or other 40.22 deferred payments agreement authorized by law, and the levy 40.23 meets the requirements of paragraph (c). A levy authorized for 40.24 a district by the commissioner under this paragraph may be in 40.25 the amount needed by the district to make payments required by a 40.26 lease purchase agreement, installment purchase agreement, or 40.27 other deferred payments agreement authorized by law, provided 40.28 that any agreement include a provision giving the school 40.29 districts the right to terminate the agreement annually without 40.30 penalty. 40.31 (e) The total levy under this subdivision for a district 40.32 for any year must not exceed$90$100 times the resident pupil 40.33 units for the fiscal year to which the levy is attributable. 40.34 (f) For agreements for which a review and comment have been 40.35 submitted to the Department of Education after April 1, 1998, 40.36 the term "instructional purpose" as used in this subdivision 41.1 excludes expenditures on stadiums. 41.2 (g) The commissioner of education may authorize a school 41.3 district to exceed the limit in paragraph (e) if the school 41.4 district petitions the commissioner for approval. The 41.5 commissioner shall grant approval to a school district to exceed 41.6 the limit in paragraph (e) for not more than five years if the 41.7 district meets the following criteria: 41.8 (1) the school district has been experiencing pupil 41.9 enrollment growth in the preceding five years; 41.10 (2) the purpose of the increased levy is in the long-term 41.11 public interest; 41.12 (3) the purpose of the increased levy promotes colocation 41.13 of government services; and 41.14 (4) the purpose of the increased levy is in the long-term 41.15 interest of the district by avoiding over construction of school 41.16 facilities. 41.17 (h) A school district that is a member of an intermediate 41.18 school district may include in its authority under this section 41.1990 percent ofthe costs associated with leases of administrative 41.20 and classroom space for intermediate school district programs. 41.21 This authority must not exceed$22.50$25 times the adjusted 41.22 marginal cost pupil units of the member districts. This 41.23 authority is in addition to any other authority authorized under 41.24 this section. 41.25 (i) In addition to the allowable capital levies in 41.26 paragraph (a), a district that is a member of the "Technology 41.27 and Information Education Systems" data processing joint board, 41.28 that finds it economically advantageous to enter into a lease 41.29 purchase agreement for a building for a group of school 41.30 districts or special school districts for staff development 41.31 purposes, may levy for its portion of lease costs attributed to 41.32 the district within the total levy limit in paragraph (e). 41.33 (j) A school district may lease administrative space under 41.34 this section if the district can demonstrate to the 41.35 commissioner's satisfaction that the administrative space is 41.36 less expensive than instructional space that the district would 42.1 otherwise lease. 42.2 Sec. 45. Minnesota Statutes 2004, section 126C.43, 42.3 subdivision 2, is amended to read: 42.4 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 42.5 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 42.6 levy90 percent ofthe amountexceeding $10 times the district's42.7adjusted marginal cost pupil units for the fiscal year ending in42.8the year before the year the levy is certifiednecessary (i) to 42.9 pay the district's obligations under section 268.052, 42.10 subdivision 1, and (ii) to pay for job placement services 42.11 offered to employees who may become eligible for benefits 42.12 pursuant to section 268.085 for the fiscal year the levy is 42.13 certified. 42.14 [EFFECTIVE DATE.] This section is effective for taxes 42.15 payable in 2006. 42.16 Sec. 46. Minnesota Statutes 2004, section 126C.43, 42.17 subdivision 3, is amended to read: 42.18 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy9042.19percent ofthe amountexceeding $10 times the district's42.20adjusted marginal cost pupil units for the fiscal year ending in42.21the year before the year the levy is certifiednecessary to pay 42.22 judgments against the district under section 123B.25 that became 42.23 final after the date the district certified its proposed levy in 42.24 the previous year. With the approval of the commissioner, a 42.25 district may spread this levy over a period not to exceed three 42.26 years. Upon approval through the adoption of a resolution by 42.27 each of an intermediate district's member school district 42.28 boards, a member school district may include its proportionate 42.29 share of the costs of a judgment against an intermediate school 42.30 district that became final under section 123B.25 after the date 42.31 that the earliest member school district certified its proposed 42.32 levy in the previous year. With the approval of the 42.33 commissioner, an intermediate school district member school 42.34 district may spread this levy over a period not to exceed three 42.35 years. 42.36 [EFFECTIVE DATE.] This section is effective for taxes 43.1 payable in 2006. 43.2 Sec. 47. Minnesota Statutes 2004, section 126C.44, is 43.3 amended to read: 43.4 126C.44 [SAFE SCHOOLS LEVY.] 43.5 Each district may make a levy on all taxable property 43.6 located within the district for the purposes specified in this 43.7 section. The maximum amount which may be levied for all costs 43.8 under this section shall be equal to$27$30 multiplied by the 43.9 district's adjusted marginal cost pupil units for the school 43.10 year. The proceeds of the levy must be used for directly 43.11 funding the following purposes or for reimbursing the cities and 43.12 counties who contract with the district for the following 43.13 purposes: (1) to pay the costs incurred for the salaries, 43.14 benefits, and transportation costs of peace officers and 43.15 sheriffs for liaison in services in the district's schools; (2) 43.16 to pay the costs for a drug abuse prevention program as defined 43.17 in section 609.101, subdivision 3, paragraph (e), in the 43.18 elementary schools; (3) to pay the costs for a gang resistance 43.19 education training curriculum in the district's schools; (4) to 43.20 pay the costs for security in the district's schools and on 43.21 school property;or(5) to pay the costs incurred for the 43.22 salaries and benefits of school counselors; or (6) to pay the 43.23 costs for other crime prevention, drug abuse, student and staff 43.24 safety, and violence prevention measures taken by the school 43.25 district. The district must initially attempt to contract for 43.26 services to be provided by peace officers or sheriffs with the 43.27 police department of each city or the sheriff's department of 43.28 the county within the district containing the school receiving 43.29 the services. If a local police department or a county 43.30 sheriff's department does not wish to provide the necessary 43.31 services, the district may contract for these services with any 43.32 other police or sheriff's department located entirely or 43.33 partially within the school district's boundaries. The levy 43.34 authorized under this section is not included in determining the 43.35 school district's levy limitations. 43.36 [EFFECTIVE DATE.] This section is effective for taxes 44.1 payable in 2006. 44.2 Sec. 48. Minnesota Statutes 2004, section 126C.48, is 44.3 amended by adding a subdivision to read: 44.4 Subd. 9. [REVERSE REFERENDUM.] (a) At the time a district 44.5 certifies its proposed levy to the county auditor according to 44.6 section 275.065, subdivision 1, the school board must certify 44.7 the amount of deferred maintenance revenue per pupil unit that 44.8 the board intends to raise. If the board certifies an amount 44.9 for fiscal year 2007, the amount certified is subject to reverse 44.10 referendum under paragraphs (b) and (c). If the amount 44.11 certified for fiscal year 2008 and later exceeds the amount 44.12 certified for the previous fiscal year, excluding any amount 44.13 disallowed by reverse referendum, the increase over the amount 44.14 certified for the previous fiscal year excluding any amount 44.15 disallowed by reverse referendum, is subject to reverse 44.16 referendum under paragraphs (b) and (c). 44.17 (b) If a district certifies revenue under paragraph (a) 44.18 that is subject to reverse referendum, the district must publish 44.19 notice of the intended increase subject to reverse referendum by 44.20 October 10. The notice must include the amount of the revenue 44.21 increase per adjusted pupil unit and the property tax increase 44.22 in annual dollars for typical residential homesteads, 44.23 agricultural homesteads, apartments, and commercial-industrial 44.24 property within the district. 44.25 (c) Revenue tentatively authorized by the board under this 44.26 subdivision becomes authorized unless a petition signed by more 44.27 than 15 percent of the registered voters of the district is 44.28 filed with the school board within 30 days of the publication of 44.29 notice. The percentage is to be determined with reference to 44.30 the number of registered voters in the district on the last day 44.31 before the petition is filed with the board. The petition must 44.32 call for a referendum on the question of whether to increase the 44.33 revenue. The approval of 50 percent plus one of those voting on 44.34 the question is required to pass a referendum authorized by this 44.35 section. The referendum must be held on the last Tuesday in 44.36 January. 45.1 (d) The ballot must state that the board proposes to 45.2 increase its deferred maintenance revenue, the maximum amount of 45.3 the increased revenue per pupil, and the estimated tax rate as a 45.4 percentage of net tax capacity in the first year it is to be 45.5 levied. The ballot shall contain a textual portion with the 45.6 information required in this paragraph and a question stating 45.7 substantially the following: "Shall the increase in revenue 45.8 proposed by the Board of ......., Independent School District 45.9 No. ......., be approved?" 45.10 (e) The district's final and deferred maintenance revenue 45.11 per pupil unit for a fiscal year must not exceed the sum of the 45.12 amounts certified by the district according to paragraph (a). A 45.13 district may elect to reduce the amount certified according to 45.14 paragraph (a) at the time of final levy certification. If the 45.15 criteria for a reverse referendum have been met, but the amount 45.16 certified is reduced to a level that would not require a reverse 45.17 referendum, the reverse referendum is canceled. 45.18 Sec. 49. Minnesota Statutes 2004, section 126C.48, 45.19 subdivision 2, is amended to read: 45.20 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 45.21 each year each district must notify the commissioner of the 45.22 proposed levies in compliance with the levy limitations of this 45.23 chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, 45.24 and 136D. By January157 of each year each district must 45.25 notify the commissioner of the final levies certified. The 45.26 commissioner shall prescribe the form of these notifications and 45.27 may request any additional information necessary to compute 45.28 certified levy amounts. 45.29 Sec. 50. Minnesota Statutes 2004, section 126C.48, 45.30 subdivision 8, is amended to read: 45.31 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 45.32 Reductions in levies pursuant to subdivision 1 must be made 45.33 prior to the reductions in clause (2). 45.34 (2) Notwithstanding any other law to the contrary, 45.35 districtswhich received paymentsthat have revenue pursuant to 45.36 sections 298.018; 298.225; 298.24 to 298.28, except an amount 46.1 distributed undersectionsections 298.26; 298.28, subdivision 46.2 4,paragraphparagraphs (c), clause (ii), and (d); 298.34 to 46.3 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law 46.4 imposing a tax upon severed mineral values; or recognized46.5revenue under section 477A.15 must not include a portion of46.6these aids in their permissible levies pursuant to those46.7sections, but insteadmust reduce thepermissiblelevies 46.8 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 46.9 124A, 124D, 125A, and 127A bythe greater of the following:95 46.10 percent of the previous year's revenue specified under this 46.11 clause. 46.12(a) an amount equal to 50 percent of the total dollar46.13amount of the payments received pursuant to those sections or46.14revenue recognized under section 477A.15 in the previous fiscal46.15year; or46.16(b) an amount equal to the total dollar amount of the46.17payments received pursuant to those sections or revenue46.18recognized under section 477A.15 in the previous fiscal year46.19less the product of the same dollar amount of payments or46.20revenue times five percent.46.21For levy year 2002 only, 77 percent of the amounts46.22distributed under section 298.225 and 298.28, and 100 percent of46.23the amounts distributed under sections 298.018; 298.34 to46.24298.39; 298.391 to 298.396; 298.405; and any law imposing a tax46.25upon severed mineral values, or recognized revenue under section46.26477A.15, shall be used for purposes of the calculations under46.27this paragraph. For levy year 2003 only, the levy reductions46.28under this subdivision must be calculated as if section 298.28,46.29subdivision 4, paragraph (f), did not apply for the 200346.30distribution.46.31 (3) The amount of any voter approved referendum, facilities 46.32 down payment, and debt levies shall not be reduced by more than 46.33 50 percent under this subdivision. In administering this 46.34 paragraph, the commissioner shall first reduce the nonvoter 46.35 approved levies of a district; then, if any payments, severed 46.36 mineral value tax revenue or recognized revenue under paragraph 47.1 (2) remains, the commissioner shall reduce any voter approved 47.2 referendum levies authorized under section 126C.17; then, if any 47.3 payments, severed mineral value tax revenue or recognized 47.4 revenue under paragraph (2) remains, the commissioner shall 47.5 reduce any voter approved facilities down payment levies 47.6 authorized under section 123B.63 and then, if any payments, 47.7 severed mineral value tax revenue or recognized revenue under 47.8 paragraph (2) remains, the commissioner shall reduce any voter 47.9 approved debt levies. 47.10 (4) Before computing the reduction pursuant to this 47.11 subdivision of the health and safety levy authorized by sections 47.12 123B.57 and 126C.40, subdivision 5, the commissioner shall 47.13 ascertain from each affected school district the amount it 47.14 proposes to levy under each section or subdivision. The 47.15 reduction shall be computed on the basis of the amount so 47.16 ascertained. 47.17 (5) To the extent the levy reduction calculated under 47.18 paragraph (2) exceeds the limitation in paragraph (3), an amount 47.19 equal to the excess must be distributed from the school 47.20 district's distribution under sections 298.225, 298.28, and 47.21 477A.15 in the following year to the cities and townships within 47.22 the school district in the proportion that their taxable net tax 47.23 capacity within the school district bears to the taxable net tax 47.24 capacity of the school district for property taxes payable in 47.25 the year prior to distribution. No city or township shall 47.26 receive a distribution greater than its levy for taxes payable 47.27 in the year prior to distribution. The commissioner of revenue 47.28 shall certify the distributions of cities and towns under this 47.29 paragraph to the county auditor by September 30 of the year 47.30 preceding distribution. The county auditor shall reduce the 47.31 proposed and final levies of cities and towns receiving 47.32 distributions by the amount of their distribution. 47.33 Distributions to the cities and towns shall be made at the times 47.34 provided under section 298.27. 47.35 [EFFECTIVE DATE.] This section is effective for revenue for 47.36 fiscal year 2006. 48.1 Sec. 51. Minnesota Statutes 2004, section 127A.45, 48.2 subdivision 11, is amended to read: 48.3 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 48.4 hundred percent of the aid for the previous fiscal year must be 48.5 paid in the current year for the following aids: 48.6 telecommunications/Internet access equity and according to 48.7 section 125B.26, special education special pupil aid according 48.8 to section 125A.75, subdivision 3, aid for litigation costs 48.9 according to section 125A.75, subdivision 8, aid for 48.10 court-placed special education expenses according to section 48.11 125A.79, subdivision 4, and aid for special education 48.12 out-of-state tuition according to section 125A.79, subdivision 48.13 8, and shared time aid according to section 126C.01, subdivision 48.14 7. 48.15 Sec. 52. Minnesota Statutes 2004, section 127A.49, 48.16 subdivision 2, is amended to read: 48.17 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 48.18 sections 270.07, 375.192, or otherwise, the net tax capacity of 48.19 any district for any taxable year is changed after the taxes for 48.20 that year have been spread by the county auditor and the local 48.21 tax rate as determined by the county auditor based upon the 48.22 original net tax capacity is applied upon the changed net tax 48.23 capacities, the county auditor shall, prior to February 1 of 48.24 each year, certify to the commissioner of education the amount 48.25 of any resulting net revenue loss that accrued to the district 48.26 during the preceding year. Each year, the commissioner shall 48.27 pay an abatement adjustment to the district in an amount 48.28 calculated according to the provisions of this subdivision. 48.29 This amount shall be deducted from the amount of the levy 48.30 authorized by section 126C.46. The amount of the abatement 48.31 adjustment must be the product of: 48.32 (1) the net revenue loss as certified by the county 48.33 auditor, times 48.34 (2) the ratio of: 48.35 (i) the sum of the amounts of the district's certified levy 48.36 in the third preceding year according to the following: 49.1 (A) section 123B.57, if the district received health and 49.2 safety aid according to that section for the second preceding 49.3 year; 49.4 (B) section 124D.20, if the district received aid for 49.5 community education programs according to that section for the 49.6 second preceding year; 49.7 (C) section 124D.135, subdivision 3, if the district 49.8 received early childhood family education aid according to 49.9 section 124D.135 for the second preceding year; and 49.10 (D) section 126C.17, subdivision 6, if the district 49.11 received referendum equalization aid according to that section 49.12 for the second preceding year; to 49.13 (ii) the total amount of the district's certified levy in 49.14 the third preceding December, plus or minus auditor's 49.15 adjustments. 49.16 Sec. 53. Minnesota Statutes 2004, section 127A.49, 49.17 subdivision 3, is amended to read: 49.18 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 49.19 tax increment is made to a district pursuant tosectionsections 49.20 469.176, subdivision 2, and 469.177, subdivision 9, or upon 49.21 decertification of a tax increment district, the school 49.22 district's aid and levy limitations must be adjusted for the 49.23 fiscal year in which the excess tax increment is paid under the 49.24 provisions of this subdivision. 49.25 (b) An amount must be subtracted from the district's aid 49.26 for the current fiscal year equal to the product of: 49.27 (1) the amount of the payment of excess tax increment to 49.28 the district, times 49.29 (2) the ratio of: 49.30 (i) the sum of the amounts of the district's certified levy 49.31 for the fiscal year in which the excess tax increment is paid 49.32 according to the following: 49.33 (A) section 123B.57, if the district received health and 49.34 safety aid according to that section for the second preceding 49.35 year; 49.36 (B) section 124D.20, if the district received aid for 50.1 community education programs according to that section for the 50.2 second preceding year; 50.3 (C) section 124D.135, subdivision 3, if the district 50.4 received early childhood family education aid according to 50.5 section 124D.135 for the second preceding year; and 50.6 (D) section 126C.17, subdivision 6, if the district 50.7 received referendum equalization aid according to that section 50.8 for the second preceding year; to 50.9 (ii) the total amount of the district's certified levy for 50.10 the fiscal year, plus or minus auditor's adjustments. 50.11 (c) An amount must be subtracted from the school district's 50.12 levy limitation for the next levy certified equal to the 50.13 difference between: 50.14 (1) the amount of the distribution of excess increment; and 50.15 (2) the amount subtracted from aid pursuant to clause (a). 50.16 If the aid and levy reductions required by this subdivision 50.17 cannot be made to the aid for the fiscal year specified or to 50.18 the levy specified, the reductions must be made from aid for 50.19 subsequent fiscal years, and from subsequent levies. The school 50.20 district must use the payment of excess tax increment to replace 50.21 the aid and levy revenue reduced under this subdivision. 50.22 (d) This subdivision applies only to the total amount of 50.23 excess increments received by a district for a calendar year 50.24 that exceeds $25,000. 50.25 Sec. 54. Minnesota Statutes 2004, section 127A.50, 50.26 subdivision 5, is amended to read: 50.27 Subd. 5. [ADJUSTMENT PHASE-OUT AND TERMINATION.] All 50.28 adjustments under this section terminate on June 30, 2020. For 50.29 fiscal year 2007 and later, the adjustment under this section 50.30 equals 75 percent of the adjustment for fiscal year 2006. 50.31 [EFFECTIVE DATE.] This section is effective for revenue for 50.32 fiscal year 2007. 50.33 Sec. 55. Minnesota Statutes 2004, section 275.14, is 50.34 amended to read: 50.35 275.14 [CENSUS.] 50.36For the purposes of sections 275.124 to 275.16, the51.1population of a city shall be that established by the last51.2federal census, by a special census taken by the United States51.3Bureau of the Census, by an estimate made by the Metropolitan51.4Council, or by the state demographer made according to section51.54A.02, whichever has the latest stated date of count or51.6estimate, before July 2 of the current levy year.The 51.7 population of a school district must be as certified by the 51.8 Department of Education from the most recent federal census. In 51.9 any year in which no federal census is taken pursuant to law in 51.10 any school district affected by sections275.124 to51.11275.16124D.20 and 124D.531 a population estimate may be made 51.12 and submitted to the state demographer for approval as 51.13 hereinafter provided. The school board of a school district, in 51.14 case it desires a population estimate, shall pass a resolution 51.15 by July 1 containing a current estimate of the population of the 51.16 school district and shall submit the resolution to the state 51.17 demographer. The resolution shall describe the criteria on 51.18 which the estimate is based and shall be in a form and 51.19 accompanied by the data prescribed by the state demographer. 51.20 The state demographer shall determine whether or not the 51.21 criteria and process described in the resolution provide a 51.22 reasonable basis for the population estimate and shall inform 51.23 the school district of that determination within 30 days of 51.24 receipt of the resolution. If the state demographer determines 51.25 that the criteria and process described in the resolution do not 51.26 provide a reasonable basis for the population estimate, the 51.27 resolution shall be of no effect. If the state demographer 51.28 determines that the criteria and process do provide a reasonable 51.29 basis for the population estimate, the estimate shall be treated 51.30 as the population of the school district for the purposes of 51.31 sections275.124 to 275.16124D.20 and 124D.531 until the 51.32 population of the school district has been established by the 51.33 next federal census or until a more current population estimate 51.34 is prepared and approved as provided herein, whichever occurs 51.35 first. The state demographer shall establish guidelines for 51.36 acceptable population estimation criteria and processes. The 52.1 state demographer shall issue advisory opinions upon request in 52.2 writing to cities or school districts as to proposed criteria 52.3 and processes prior to their implementation in an estimation. 52.4 The advisory opinion shall be final and binding upon the 52.5 demographer unless the demographer can show cause why it should 52.6 not be final and binding. 52.7 In the event that a census tract employed in taking a 52.8 federal or local census overlaps two or more school districts, 52.9 the county auditor shall, on the basis of the best information 52.10 available, allocate the population of said census tract to the 52.11 school districts involved. 52.12The term "council," as used in sections 275.124 to 275.16,52.13means any board or body, whether composed of one or more52.14branches, authorized to make ordinances for the government of a52.15city within this state.52.16 Sec. 56. Minnesota Statutes 2004, section 275.16, is 52.17 amended to read: 52.18 275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 52.19 If any such municipality shall return to the county auditor 52.20 a levy greater than permitted by chapters 123A, 123B, 124D, 52.21 126C, and 136C,and 136D,sections 275.124 to 275.16, and 275.70 52.22 to 275.74, such county auditor shall extend only such amount of 52.23 taxes as the limitations herein prescribed will permit; 52.24 provided, if such levy shall include any levy for the payment of 52.25 bonded indebtedness or judgments, such levies for bonded 52.26 indebtedness or judgments shall be extended in full, and the 52.27 remainder of the levies shall be reduced so that the total 52.28 thereof, including levies for bonds and judgments, shall not 52.29 exceed such amount as the limitations herein prescribed will 52.30 permit. 52.31 Sec. 57. Minnesota Statutes 2004, section 469.177, 52.32 subdivision 9, is amended to read: 52.33 Subd. 9. [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET 52.34 TAX CAPACITY.] (a) If the amount of tax paid on captured net tax 52.35 capacity exceeds the amount of tax increment, the county auditor 52.36 shall distribute the excess to the municipality, county, and 53.1 school district as follows: each governmental unit's share of 53.2 the excess equals 53.3 (1) the total amount of the excess for the tax increment 53.4 financing district, multiplied by 53.5 (2) a fraction, the numerator of which is the current local 53.6 tax rate of the governmental unit less the governmental unit's 53.7 local tax rate for the year the original local tax rate for the 53.8 district was certified (in no case may this amount be less than 53.9 zero) and the denominator of which is the sum of the numerators 53.10 for the municipality, county, and school district. 53.11 If the entire increase in the local tax rate is attributable to 53.12 a taxing district, other than the municipality, county, or 53.13 school district, then the excess must be distributed to the 53.14 municipality, county, and school district in proportion to their 53.15 respective local tax rates. 53.16 (b) The amounts distributed shall be deducted in computing 53.17 the levy limits of the taxing district for the succeeding 53.18 taxable year.In the case of a school district, only the53.19proportion of the excess taxes attributable to unequalized53.20levies that are subject to a fixed dollar amount levy limit53.21shall be deducted from the levy limit.53.22 (c) In the case of distributions to a school districtthat53.23are attributable to state equalized levies, the county auditor 53.24 shall report amounts distributed to the commissioner of 53.25 education in the same manner as provided for excess increments 53.26 under section 469.176, subdivision 2, and the distribution shall 53.27 be deducted from the school district's state aid payments and 53.28 levy limitation according to section 127A.49, subdivision 3. 53.29 Sec. 58. [KINDERGARTEN REPORTING.] 53.30 Notwithstanding Minnesota Statutes, sections 120A.05, 53.31 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 53.32 1, pupils four or five years of age on September 1 of the 53.33 calendar year in which the school year commences and enrolled in 53.34 a prekindergarten program implemented by the district before 53.35 July 1, 2003, may be reported as kindergarten pupils under 53.36 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 54.1 years 2004 and earlier. 54.2 [EFFECTIVE DATE.] This section is effective the day 54.3 following final enactment and applies to fiscal years 2004 and 54.4 earlier. 54.5 Sec. 59. [TRANSITION REVENUE ADJUSTMENTS.] 54.6 For taxes payable in 2006, a district may levy an amount 54.7 equal to the increase in the district's transition revenue for 54.8 fiscal year 2006 under Minnesota Statutes, section 126C.10, 54.9 subdivision 31, paragraphs (c) and (d). 54.10 Sec. 60. [FISCAL YEAR 2006 COMPENSATORY REVENUE FOR 54.11 REFUGEES.] 54.12 Notwithstanding Minnesota Statutes, section 126C.05, 54.13 subdivisions 3 and 16, refugees from the Wat Krabok Refugee Camp 54.14 in Thailand who were not enrolled in a Minnesota public school 54.15 on October 1, 2004, but who were enrolled in a Minnesota public 54.16 school on June 1, 2005, must be included in the calculation of 54.17 compensatory revenue pupil units for fiscal year 2006. 54.18 Sec. 61. [ALTERNATIVE COMPENSATION REVENUE GUARANTEE.] 54.19 Notwithstanding Minnesota Statutes, sections 122A.415, 54.20 subdivision 1, and 126C.10, subdivision 34, paragraphs (a) and 54.21 (b), a school district that received alternative compensation 54.22 aid for fiscal year 2005, but does not qualify for alternative 54.23 compensation revenue for all sites in the district for fiscal 54.24 year 2006 or 2007, shall receive additional basic alternative 54.25 compensation aid for that fiscal year equal to the lesser of the 54.26 amount of alternative compensation aid it received for fiscal 54.27 year 2005 or the amount it would have received for that fiscal 54.28 year under Minnesota Statutes 2004, section 122A.415, 54.29 subdivision 1, for teachers at sites not qualifying for 54.30 alternative compensation revenue for that fiscal year, if the 54.31 district submits a timely application and the commissioner 54.32 determines that the district continues to implement an 54.33 alternative professional pay system, consistent with its 54.34 application under Minnesota Statutes 2004, section 122A.415, for 54.35 fiscal year 2005. The additional basic alternative compensation 54.36 aid under this section must not be used in calculating the 55.1 alternative compensation levy under Minnesota Statutes, section 55.2 126C.10, subdivision 35. This section applies only to fiscal 55.3 years 2006 and 2007 and does not apply to later fiscal years. 55.4 Sec. 62. [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 55.5 For taxes payable in 2006 through 2010, a school district 55.6 may levy an amount, not to exceed in the aggregate, $30,000 55.7 times the number of Carpenter school buses in its fleet as of 55.8 January 1, 2004, that have been determined to have potentially 55.9 defective welds and are subject to limitations imposed by the 55.10 Department of Public Safety. 55.11 Sec. 63. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 55.12 PILOT PROGRAM.] 55.13 Subdivision 1. [PILOT PROGRAM CREATED.] A three-year pilot 55.14 program is created to allow a school district to allocate 55.15 compensatory revenue received under Minnesota Statutes, section 55.16 126C.10, subdivision 3, among its school buildings according to 55.17 each building's school performance measures. 55.18 Subd. 2. [APPLICATION PROCESS.] A school district that 55.19 seeks to allocate its compensatory revenue to school sites based 55.20 on student performance may submit an application to the 55.21 commissioner of education by June 1, 2005. The application must 55.22 include a written resolution approved by the school board that: 55.23 (1) identifies the test results that will be used to assess 55.24 student performance; (2) describes the method for distribution 55.25 of compensatory revenue to the school sites; and (3) summarizes 55.26 the evaluation procedure the district will use to determine if 55.27 the redistribution of compensatory revenue improves overall 55.28 student performance. The application must be submitted in the 55.29 form and manner specified by the commissioner. 55.30 Subd. 3. [COMMISSIONER SELECTION.] The commissioner may 55.31 select up to five school districts to participate in the pilot 55.32 program. The commissioner must notify the selected school 55.33 districts by July 1, 2005. 55.34 Subd. 4. [REPORT.] The commissioner of education must 55.35 submit a report by February 15, 2008, to the education 55.36 committees of the legislature evaluating the effectiveness of 56.1 the pilot program. 56.2 [EFFECTIVE DATE.] This section is effective the day 56.3 following final enactment. 56.4 Sec. 64. [FISCAL YEAR 2006 ONLY.] 56.5 For fiscal year 2006 only, the increases in equity revenue 56.6 and operating capital revenue under Minnesota Statutes, section 56.7 126C.10, are payable entirely in state aid. 56.8 Sec. 65. [APPROPRIATIONS.] 56.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 56.10 indicated in this section are appropriated from the general fund 56.11 to the Department of Education for the fiscal years designated. 56.12 Subd. 2. [GENERAL EDUCATION AID.] For general education 56.13 aid under Minnesota Statutes, section 126C.13, subdivision 4: 56.14 $5,135,844,000 ..... 2006 56.15 $5,359,019,000 ..... 2007 56.16 The 2006 appropriation includes $784,978,000 for 2005 and 56.17 $4,350,866,000 for 2006. 56.18 The 2007 appropriation includes $814,640,000 for 2006 and 56.19 $4,544,379,000 for 2007. 56.20 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 56.21 referendum tax base replacement aid under Minnesota Statutes, 56.22 section 126C.17, subdivision 7a: 56.23 $8,704,000 ..... 2006 56.24 $8,704,000 ..... 2007 56.25 The 2006 appropriation includes $1,366,000 for 2005 and 56.26 $7,338,000 for 2006. 56.27 The 2007 appropriation includes $1,366,000 for 2006 and 56.28 $7,338,000 for 2007. 56.29 Subd. 4. [ENROLLMENT OPTIONS TRANSPORTATION.] For 56.30 transportation of pupils attending postsecondary institutions 56.31 under Minnesota Statutes, section 124D.09, or for transportation 56.32 of pupils attending nonresident districts under Minnesota 56.33 Statutes, section 124D.03: 56.34 $55,000 ..... 2006 56.35 $55,000 ..... 2007 56.36 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 57.1 Minnesota Statutes, section 127A.49: 57.2 $903,000 ..... 2006 57.3 $955,000 ..... 2007 57.4 The 2006 appropriation includes $187,000 for 2005 and 57.5 $716,000 for 2006. 57.6 The 2007 appropriation includes $133,000 for 2006 and 57.7 $822,000 for 2007. 57.8 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 57.9 consolidating under Minnesota Statutes, section 123A.485: 57.10 $253,000 ..... 2007 57.11 The 2007 appropriation includes $0 for 2006 and $253,000 57.12 for 2007. 57.13 Subd. 7. [NONPUBLIC PUPIL EDUCATION AID.] For nonpublic 57.14 pupil education aid under Minnesota Statutes, sections 123B.87 57.15 and 123B.40 to 123B.43: 57.16 $15,324,000 ..... 2006 57.17 $16,327,000 ..... 2007 57.18 The 2006 appropriation includes $2,305,000 for 2005 and 57.19 $13,019,000 for 2006. 57.20 The 2007 appropriation includes $2,424,000 for 2006 and 57.21 $13,903,000 for 2007. 57.22 Subd. 8. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 57.23 pupil transportation aid under Minnesota Statutes, section 57.24 123B.92, subdivision 9: 57.25 $21,287,000 ..... 2006 57.26 $22,670,000 ..... 2007 57.27 The 2006 appropriation includes $3,274,000 for 2005 and 57.28 $18,013,000 for 2006. 57.29 The 2007 appropriation includes $3,354,000 for 2006 and 57.30 $19,316,000 for 2007. 57.31 Subd. 9. [ONE ROOM SCHOOLHOUSE.] For a grant to 57.32 Independent School District No. 690, Warroad, to operate the 57.33 Angle Inlet School: 57.34 $50,000 ..... 2006 57.35 $50,000 ..... 2007 57.36 Subd. 10. [DECLINING PUPIL AID; ALBERT LEA.] For declining 58.1 pupil aid to Independent School District No. 241, Albert Lea: 58.2 $75,000 ..... 2006 58.3 Subd. 11. [DECLINING PUPIL AID; MESABI EAST.] For 58.4 declining pupil aid to Independent School District No. 2711, 58.5 Mesabi East: 58.6 $50,000 ..... 2006 58.7 Subd. 12. [DECLINING PUPIL AID; ROSEAU.] For declining 58.8 pupil aid to Independent School District No. 682, Roseau: 58.9 $10,000 ..... 2006 58.10 Sec. 66. [REPEALER.] 58.11 Subdivision 1. [JULY 1, 2005.] Minnesota Statutes 2004, 58.12 sections 122A.415, subdivision 2; 123B.05; 123B.83, subdivision 58.13 1; and 126C.42, subdivisions 1 and 4, are repealed. 58.14 Subd. 2. [FISCAL YEAR 2007.] Minnesota Statutes 2004, 58.15 section 126C.12, is repealed for revenue for fiscal year 2007. 58.16 ARTICLE 2 58.17 EXCELLENCE IN EDUCATION 58.18 Section 1. Minnesota Statutes 2004, section 13.32, 58.19 subdivision 1, is amended to read: 58.20 Subdivision 1. [DEFINITIONS.] As used in this section: 58.21 (a) "Continuing truant" means a student under section 58.22 260A.02, subdivision 3, who is absent without valid excuse from 58.23 instruction in a school. 58.24 (b) "Educational data" means data on individuals maintained 58.25 by a public educational agency or institution or by a person 58.26 acting for the agency or institution which relates to a student. 58.27 Records of instructional personnel which are in the sole 58.28 possession of the maker thereof and are not accessible or 58.29 revealed to any other individual except a substitute teacher, 58.30 and are destroyed at the end of the school year, shall not be 58.31 deemed to be government data. 58.32 Records of a law enforcement unit of a public educational 58.33 agency or institution which are maintained apart from education 58.34 data and are maintained solely for law enforcement purposes, and 58.35 are not disclosed to individuals other than law enforcement 58.36 officials of the jurisdiction are not educational data; 59.1 provided, that education records maintained by the educational 59.2 agency or institution are not disclosed to the personnel of the 59.3 law enforcement unit. The University of Minnesota police 59.4 department is a law enforcement agency for purposes of section 59.5 13.82 and other sections of Minnesota Statutes dealing with law 59.6 enforcement records. Records of organizations providing 59.7 security services to a public educational agency or institution 59.8 must be administered consistent with section 13.861. 59.9 Records relating to a student who is employed by a public 59.10 educational agency or institution which are made and maintained 59.11 in the normal course of business, relate exclusively to the 59.12 individual in that individual's capacity as an employee, and are 59.13 not available for use for any other purpose are classified 59.14 pursuant to section 13.43. 59.15(b)(c) "Habitual truant" means a student under section 59.16 260C.007, subdivision 19, who is absent without lawful excuse 59.17 from attendance at school. 59.18 (d) "Juvenile justice system" includes criminal justice 59.19 agencies and the judiciary when involved in juvenile justice 59.20 activities. 59.21(c)(e) "Student" means an individual currently or formerly 59.22 enrolled or registered, applicants for enrollment or 59.23 registration at a public educational agency or institution, or 59.24 individuals who receive shared time educational services from a 59.25 public agency or institution. 59.26(d)(f) "Substitute teacher" means an individual who 59.27 performs on a temporary basis the duties of the individual who 59.28 made the record, but does not include an individual who 59.29 permanently succeeds to the position of the maker of the record. 59.30 [EFFECTIVE DATE.] This section is effective July 1, 2005. 59.31 Sec. 2. Minnesota Statutes 2004, section 13.32, 59.32 subdivision 8, is amended to read: 59.33 Subd. 8. [ACCESS BY JUVENILE JUSTICE SYSTEM.] (a) Upon 59.34 request, the following education data shall be disclosed under 59.35 subdivision 3, clause (i), to the juvenile justice system: a 59.36 student's full name, home address, telephone number, date of 60.1 birth; a student's school schedule, daily attendance record, and 60.2 photographs, if any; and parents' names, home addresses, and 60.3 telephone numbers. 60.4 (b) In addition, the existence of the following data about 60.5 a student may be disclosed under subdivision 3, clause (i): 60.6 (1) use of a controlled substance, alcohol, or tobacco; 60.7 (2) assaultive or threatening conduct that could result in 60.8 dismissal from school under section 121A.45, subdivision 2, 60.9 clause (b) or (c); 60.10 (3) possession or use of weapons or look-alike weapons; 60.11 (4) theft; or 60.12 (5) vandalism or other damage to property. 60.13 Any request for access to data under this paragraph must 60.14 contain an explanation of why access to the data is necessary to 60.15 serve the student. 60.16 (c) A principal or chief administrative officer of a school 60.17 who receives a request to disclose information about a student 60.18 to the juvenile justice system under paragraph (b) shall, to the 60.19 extent permitted by federal law, notify the student's parent or 60.20 guardian by certified mail of the request to disclose 60.21 information before disclosing the information. If the student's 60.22 parent or guardian notifies the principal or chief 60.23 administrative officer within ten days of receiving the 60.24 certified notice that the parent or guardian objects to the 60.25 disclosure, the principal or chief administrative officer must 60.26 not disclose the information. The principal or chief 60.27 administrative officer must inform the requesting member of the 60.28 juvenile justice system of the objection. 60.29 (d) A principal or chief administrative officer is not 60.30 required to create data under this subdivision. Information 60.31 provided in response to a data request under paragraph (b) shall 60.32 indicate only whether the data described in paragraph (b) 60.33 exist. The principal or chief administrative officer is not 60.34 authorized under paragraph (b) to disclose the actual data or 60.35 other information contained in the student's education record. 60.36 A principal or chief administrative officer is not required to 61.1 provide data that are protected by court order. A principal or 61.2 chief administrative officer must respond to a data request 61.3 within 14 days if no objection is received from the parent or 61.4 guardian. 61.5 (e) If the school board does not waive the school 61.6 attendance requirement for driving privileges, then a principal 61.7 or chief school administrator may disclose to the juvenile 61.8 justice system only the student's continuing or habitual truancy 61.9 status. 61.10 (f) Nothing in this subdivision shall limit the disclosure 61.11 of educational data pursuant to court order. 61.12(f)(g) A school district, its agents, and employees who 61.13 provide data in good faith under this subdivision are not liable 61.14 for compensatory or exemplary damages or an award of attorney 61.15 fees in an action under section 13.08, or other law, or for a 61.16 penalty under section 13.09. 61.17(g)(h) Section 13.03, subdivision 4, applies to data that 61.18 are shared under this subdivision with a government entity. If 61.19 data are shared with a member of the juvenile justice system who 61.20 is not a government entity, the person receiving the shared data 61.21 must treat the data consistent with the requirements of this 61.22 chapter applicable to a government entity. 61.23(h)(i) A member of the juvenile justice system who falsely 61.24 certifies a request for data under this section is subject to 61.25 the penalties under section 13.09. 61.26 Sec. 3. Minnesota Statutes 2004, section 120A.22, 61.27 subdivision 12, is amended to read: 61.28 Subd. 12. [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 61.29 other person having control of a child may apply to a school 61.30 district to have the child excused from attendance for the whole 61.31 or any part of the time school is in session during any school 61.32 year. Application may be made to any member of the board, a 61.33 truant officer, a principal, or the superintendent. The school 61.34 district may state in its school attendance policy that it may 61.35 ask the student's parent or legal guardian to verify in writing 61.36 the reason for the child's absence from school. The board of 62.1 the district in which the child resides may approve the 62.2 application upon the following being demonstrated to the 62.3 satisfaction of that board: 62.4 (1) that the child's bodily or mental condition is such as 62.5 to prevent attendance at school or application to study for the 62.6 period required; or, which includes: 62.7 (i) child illness, medical, dental, orthodontic, or 62.8 counseling appointments; 62.9 (ii) family emergencies; 62.10 (iii) the death or serious illness or funeral of an 62.11 immediate family member; 62.12 (iv) active duty in any military branch of the United 62.13 States; or 62.14 (v) other exemptions included in the district's school 62.15 attendance policy; 62.16 (2) thatfor the school years 1988-1989 through 1999-200062.17the child has already completed the studies ordinarily required62.18in the 10th grade and that for the school years beginning with62.19the 2000-2001 school year the child has already completed the62.20studies ordinarily required to graduatethe child has already 62.21 completed state and district standards required for graduation 62.22 from high school; or 62.23 (3) that it is the wish of the parent, guardian, or other 62.24 person having control of the child, that the child attend for a 62.25 period or periods not exceeding in the aggregate three hours in 62.26 any week, a school for religious instruction conducted and 62.27 maintained by some church, or association of churches, or any 62.28 Sunday school association incorporated under the laws of this 62.29 state, or any auxiliary thereof. This school for religious 62.30 instruction must be conducted and maintained in a place other 62.31 than a public school building, and it must not, in whole or in 62.32 part, be conducted and maintained at public expense. However, a 62.33 child may be absent from school on such days as the child 62.34 attends upon instruction according to the ordinances of some 62.35 church. 62.36 [EFFECTIVE DATE.] This section is effective July 1, 2005. 63.1 Sec. 4. [120A.23] [SCHOOL ATTENDANCE REQUIREMENT; DRIVING 63.2 PRIVILEGES.] 63.3 A district school board, board of a state approved 63.4 alternative program (SAAP), or charter school board of directors 63.5 by majority vote, may waive the school attendance requirement 63.6 for driving privileges under section 171.056 for the students it 63.7 enrolls. The board must vote to waive the requirement before 63.8 September 1 of the initial school year in which the waiver is 63.9 effective and immediately must transmit an electronic notice to 63.10 the Department of Public Safety. If a board intends to rescind 63.11 its waiver and require students to comply with the school 63.12 attendance requirement under section 171.056 for any subsequent 63.13 school year, the board must vote before September 1 of the 63.14 school year in which the waiver is initially rescinded and 63.15 immediately must transmit an electronic notice to the Department 63.16 of Public Safety. 63.17 [EFFECTIVE DATE.] This section is effective July 1, 2005. 63.18 Sec. 5. Minnesota Statutes 2004, section 120B.02, is 63.19 amended to read: 63.20 120B.02 [EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 63.21 STUDENTS.] 63.22 (a) The legislature is committed to establishing rigorous 63.23 academic standards for Minnesota's public school students. To 63.24 that end, the commissioner shall adopt in rule statewide 63.25 academic standards. The commissioner shall not prescribe in 63.26 rule or otherwise the delivery system, classroom assessments, or 63.27 form of instruction that school sites must use. For purposes of 63.28 this chapter, a school site is a separate facility, or a 63.29 separate program within a facility that a local school board 63.30 recognizes as a school site for funding purposes. 63.31 (b) All commissioner actions regarding the rule must be 63.32 premised on the following: 63.33 (1) the rule is intended to raise academic expectations for 63.34 students, teachers, and schools; 63.35 (2) any state action regarding the rule must evidence 63.36 consideration of school district autonomy; and 64.1 (3) the Department of Education, with the assistance of 64.2 school districts, must make available information about all 64.3 state initiatives related to the rule to students and parents, 64.4 teachers, and the general public in a timely format that is 64.5 appropriate, comprehensive, and readily understandable. 64.6 (c) When fully implemented, the requirements for high 64.7 school graduation in Minnesota must require students topass the64.8basic skills test requirements andsatisfactorily complete, as 64.9 determined by the school district, the course credit 64.10 requirements under section 120B.024 and: 64.11 (1) for students enrolled in grade 8 before the 2005-2006 64.12 school year, to pass the basic skills test requirements; and 64.13 (2) for students enrolled in grade 8 in the 2005-2006 64.14 school year and later, to pass the Minnesota Comprehensive 64.15 Assessments Second Edition (MCA-IIs). 64.16 (d) The commissioner shall periodically review and report 64.17 on the state's assessment process. 64.18 (e) School districts are not required to adopt specific 64.19 provisions ofthe Goals 2000 andthe federal School-to-Work 64.20 programs. 64.21 Sec. 6. Minnesota Statutes 2004, section 120B.021, is 64.22 amended by adding a subdivision to read: 64.23 Subd. 1a. [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 64.24 receiving a student's application signed by the student's parent 64.25 or guardian, a school district, area learning center, or charter 64.26 school must declare that a student meets or exceeds a specific 64.27 academic standard required for graduation under this section if 64.28 the local school board, the school board of the school district 64.29 in which the area learning center is located, or the charter 64.30 school board of directors determines that the student: 64.31 (1) is participating in a course of study including an 64.32 advanced placement course or an international baccalaureate 64.33 course or program that is consistent with state academic 64.34 standards, a learning opportunity outside the curriculum of the 64.35 district, area learning center or charter school, or an approved 64.36 preparatory program for employment or postsecondary education 65.1 that is equally or more rigorous than the corresponding state or 65.2 local academic standard required by the district, area learning 65.3 center, or charter school; 65.4 (2) would be precluded from participating in the rigorous 65.5 course of study, learning opportunity, or preparatory employment 65.6 or postsecondary education program if the student were required 65.7 to achieve the academic standard to be waived; and 65.8 (3) satisfactorily completes the requirements for the 65.9 rigorous course of study, learning opportunity, or preparatory 65.10 employment or postsecondary education program. 65.11 Consistent with the requirements of this section, the local 65.12 school board, the school board of the school district in which 65.13 the area learning center is located, or the charter school board 65.14 of directors also may formally determine other circumstances in 65.15 which to declare that a student meets or exceeds a specific 65.16 academic standard that the site requires for graduation under 65.17 this section. 65.18 (b) A student who satisfactorily completes a postsecondary 65.19 enrollment options course or program under section 124D.09 is 65.20 not required to complete other requirements of the academic 65.21 standards corresponding to that specific rigorous course of 65.22 study. 65.23 Sec. 7. Minnesota Statutes 2004, section 120B.11, 65.24 subdivision 1, is amended to read: 65.25 Subdivision 1. [DEFINITIONS.] For the purposes of this 65.26 section and section 120B.10, the following terms have the 65.27 meanings given them. 65.28 (a) "Instruction" means methods of providing learning 65.29 experiences thatenablesenable a student to meet state and 65.30 district academic standards and graduation 65.31standardsrequirements. 65.32 (b) "Curriculum" means district or school adopted programs 65.33 and written plans for providing students with learning 65.34 experiences that lead to expected knowledge,and skills, and65.35positive attitudes. 65.36 Sec. 8. Minnesota Statutes 2004, section 120B.11, 66.1 subdivision 2, is amended to read: 66.2 Subd. 2. [ADOPTING POLICIES.] (a) A school board shall 66.3adopt annually ahave in place an adopted written policy that 66.4 includes the following: 66.5 (1) district goals for instructionandincluding the use of 66.6 best practices, district and school curriculum, and achievement 66.7 for all student subgroups; 66.8 (2) a process for evaluating each student's progress toward 66.9 meetinggraduationacademic standards and identifying the 66.10 strengths and weaknesses of instruction and curriculum affecting 66.11 students' progress; 66.12 (3) a system for periodically reviewing and evaluating all 66.13 instruction and curriculum; 66.14 (4) a plan for improving instructionand, curriculum, and 66.15 student achievement; and 66.16 (5) aninstruction plan that includeseducation 66.17 effectivenessprocesses developed underplan aligned with 66.18 section 122A.625andthat integrates instruction, curriculum, 66.19 and technology. 66.20 Sec. 9. Minnesota Statutes 2004, section 120B.11, 66.21 subdivision 3, is amended to read: 66.22 Subd. 3. [INSTRUCTION AND CURRICULUMDISTRICT ADVISORY 66.23 COMMITTEE.] Each school board shall establish anInstruction and66.24Curriculumadvisory committee to ensure active community 66.25 participation in all phases of planning and improving the 66.26 instruction and curriculum affecting stategraduationand 66.27 district academic standards. A district advisory committee, to 66.28 the extent possible, shall reflect the diversity of the district 66.29 and its learning sites, and shall include teachers, parents, 66.30 support staff,pupilsstudents, and other community residents. 66.31 The district may establish building teams as subcommittees of 66.32 the district advisory committee under subdivision 4. The 66.33 district advisory committee shall recommend to the school 66.34 boarddistrictwide education standardsrigorous academic 66.35 standards, student achievement goals and measures, assessments, 66.36 and program evaluations. Learning sites may expand upon 67.1 district evaluations of instruction, curriculum, assessments, or 67.2 programs. Whenever possible, parents and other community 67.3 residents shall comprise at least two-thirds of advisory 67.4 committee members. 67.5 Sec. 10. Minnesota Statutes 2004, section 120B.11, 67.6 subdivision 4, is amended to read: 67.7 Subd. 4. [BUILDING TEAM.] A school may establish a 67.8 building team to develop and implement an education 67.9 effectiveness plan to improve instructionand, curriculum, and 67.10 student achievement. The team shall advise the board and the 67.11 advisory committee about developing an instruction and 67.12 curriculum improvement plan that aligns curriculum, assessment 67.13 of student progress in meeting stategraduationand district 67.14 academic standards, and instruction. 67.15 Sec. 11. Minnesota Statutes 2004, section 120B.11, 67.16 subdivision 5, is amended to read: 67.17 Subd. 5. [REPORT.] (a) By October 1 of each year, the 67.18 school board shall use standard statewide reporting procedures 67.19 the commissioner develops and adopt a report that includes the 67.20 following: 67.21 (1) studentperformanceachievement goals for meeting state 67.22graduationacademic standardsadopted for that year; 67.23 (2) results of local assessment data, and any additional 67.24 test data; 67.25 (3) the annual school district improvement plans including 67.26 staff development goals under section 122A.60; 67.27 (4) information about district and learning site progress 67.28 in realizing previously adopted improvement plans; and 67.29 (5) the amount and type of revenue attributed to each 67.30 education site as defined in section 123B.04. 67.31 (b) The school board shall publish the report in the local 67.32 newspaper with the largest circulation in the districtor, by 67.33 mail, or by electronic means such as the district Web site. If 67.34 electronic means are used, school districts must publish notice 67.35 of the report in a periodical of general circulation in the 67.36 district. School districts must make copies of the report 68.1 available to the public on request. The board shall make a copy 68.2 of the report available to the public for inspection. The board 68.3 shall send a copy of the report to the commissioner of education 68.4 by October 15 of each year. 68.5 (c) The title of the report shall contain the name and 68.6 number of the school district and read "Annual Report on 68.7 Curriculum, Instruction, and StudentPerformanceAchievement." 68.8 The report must include at least the following information about 68.9 advisory committee membership: 68.10 (1) the name of each committee member and the date when 68.11 that member's term expires; 68.12 (2) the method and criteria the school board uses to select 68.13 committee members; and 68.14 (3) the date by which a community resident must apply to 68.15 next serve on the committee. 68.16 Sec. 12. Minnesota Statutes 2004, section 120B.11, 68.17 subdivision 8, is amended to read: 68.18 Subd. 8. [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 68.19 least once every two years, the district report shall include an 68.20 evaluation of the district testing programs, according to the 68.21 following: 68.22 (1) written objectives of the assessment program; 68.23 (2) names of tests and grade levels tested; 68.24 (3) use of test results; and 68.25 (4)implementation of an assurance of mastery program68.26 student achievement results compared to previous years. 68.27 Sec. 13. [120B.128] [EDUCATIONAL PLANNING AND ASSESSMENT 68.28 SYSTEM (EPAS) PROGRAM.] 68.29 (a) School districts and charter schools may elect to 68.30 participate in the Educational Planning and Assessment System 68.31 (EPAS) program offered by ACT, Inc. to provide a longitudinal, 68.32 systematic approach to student educational and career planning, 68.33 assessment, instructional support, and evaluation. The EPAS 68.34 achievement tests include English, reading, mathematics, 68.35 science, and components on planning for high school and 68.36 postsecondary education, interest inventory, needs assessments, 69.1 and student education plans. These tests are linked to the ACT 69.2 assessment for college admission and allow students, parents, 69.3 teachers, and schools to determine the student's college 69.4 readiness before grades 11 and 12. 69.5 (b) The commissioner of education shall provide ACT Explore 69.6 tests for students in grade 8 and the ACT Plan test for students 69.7 in grade 10 to assess individual student academic strengths and 69.8 weaknesses, academic achievement and progress, higher order 69.9 thinking skills, and college readiness. The state shall pay the 69.10 test costs for school districts and charter schools that choose 69.11 to participate in the EPAS program. The commissioner shall 69.12 establish an application procedure and a process for state 69.13 payment of costs. 69.14 Sec. 14. Minnesota Statutes 2004, section 120B.13, 69.15 subdivision 1, is amended to read: 69.16 Subdivision 1. [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 69.17 TEACHERS.] (a) The advanced placement and international 69.18 baccalaureate programs are well-established academic programs 69.19 for mature, academically directed high school students. These 69.20 programs, in addition to providing academic rigor, offer sound 69.21 curricular design, accountability, comprehensive external 69.22 assessment, feedback to students and teachers, and the 69.23 opportunity for high school students to compete academically on 69.24 a global level. Advanced placement and international 69.25 baccalaureate programs allow students to leave high school with 69.26 the academic skills and self-confidence to succeed in college 69.27 and beyond. The advanced placement and international 69.28 baccalaureate programs help provide Minnesota students with 69.29 world-class educational opportunity. 69.30 (b) Critical to schools' educational success is ongoing 69.31 advanced placement/international baccalaureate-approved teacher 69.32 training. A secondary teacher assigned by a district to teach 69.33 an advanced placement or international baccalaureate course or 69.34 other interested educator may participate in a training program 69.35 offered by The College Board or International Baccalaureate 69.36 North America, Inc. The state may pay a portion of the tuition, 70.1 room,andboard, and out-of-state travel costs a teacher or 70.2 other interested educator incurs in participating in a training 70.3 program. The commissioner shall determine application 70.4 procedures and deadlines,andselect teachers and other 70.5 interested educators to participate in the training program, and 70.6 determine the payment process and amount of the subsidy. The 70.7 procedures determined by the commissioner shall, to the extent 70.8 possible, ensure that advanced placement and international 70.9 baccalaureate courses become available in all parts of the state 70.10 and that a variety of course offerings are available in school 70.11 districts. This subdivision does not prevent teacher or other 70.12 interested educator participation in training programs offered 70.13 by The College Board or International Baccalaureate North 70.14 America, Inc., when tuition is paid by a source other than the 70.15 state. 70.16 Sec. 15. Minnesota Statutes 2004, section 120B.13, 70.17 subdivision 3, is amended to read: 70.18 Subd. 3. [SUBSIDY FOR EXAMINATION FEES.] The state may pay 70.19 all or part of the fee for advanced placement or international 70.20 baccalaureate examinationsfor pupils of low-income families in70.21public and nonpublic schools. The commissioner shalladopt a70.22schedule for fee subsidies that may allow payment of the entire70.23fee forpay all examination fees for all public and nonpublic 70.24 students of low-income families, as defined by the commissioner, 70.25 and to the limit of the available appropriation, shall also pay 70.26 a portion or all of the examination fees for other public and 70.27 nonpublic students sitting for an advanced placement 70.28 examination, international baccalaureate examination, or both. 70.29 The commissioner shall determine procedures for state payments 70.30 of fees. 70.31 Sec. 16. Minnesota Statutes 2004, section 120B.13, is 70.32 amended by adding a subdivision to read: 70.33 Subd. 3a. [COLLEGE CREDIT.] The colleges and universities 70.34 of the Minnesota State Colleges and Universities system must 70.35 award, and the University of Minnesota and private postsecondary 70.36 institutions are encouraged to award, college credit to high 71.1 school students who receive a score of three or higher on an 71.2 advanced placement or four or higher on the international 71.3 baccalaureate program examination. 71.4 Sec. 17. [120B.131] [COLLEGE-LEVEL EXAMINATION PROGRAM 71.5 (CLEP).] 71.6 Subdivision 1. [PROGRAM STRUCTURE.] The College-Level 71.7 Examination Program (CLEP) offered by the College Board provides 71.8 students with the opportunity to demonstrate college-level 71.9 achievement and receive college credit or advanced standing 71.10 through a program of examinations in undergraduate college 71.11 courses. Schools must provide information about CLEP and the 71.12 opportunity to receive college credit from a Minnesota 71.13 postsecondary institution to students successfully completing a 71.14 college-level course. 71.15 Subd. 2. [REIMBURSEMENT FOR EXAMINATION FEES.] The state 71.16 may reimburse CLEP examination fees for a Minnesota public high 71.17 school student who has successfully completed one or more 71.18 college-level courses in high school and earned a satisfactory 71.19 score on one or more CLEP examinations in the following subjects: 71.20 composition and literature, mathematics and science, social 71.21 sciences and history, foreign languages, and business and 71.22 humanities. The state may reimburse each successful student for 71.23 up to six examination fees. The commissioner shall establish 71.24 application procedures and a process and schedule for fee 71.25 reimbursements. The commissioner must give priority to 71.26 reimburse the CLEP examination fees of students of low-income 71.27 families. 71.28 Subd. 3. [COLLEGE CREDIT.] The colleges and universities 71.29 of the Minnesota State Colleges and Universities system must 71.30 award, and the University of Minnesota and private postsecondary 71.31 institutions are encouraged to award, college credit to high 71.32 school students who receive a satisfactory score on a CLEP 71.33 examination under this section. The commissioner, in 71.34 consultation with the Minnesota State Colleges and Universities, 71.35 shall set a passing score for college credits. 71.36 Sec. 18. [120B.15] [GIFTED AND TALENTED STUDENTS 72.1 PROGRAMS.] 72.2 School districts may identify students, locally develop 72.3 programs, provide staff development, and evaluate programs to 72.4 provide gifted and talented students with challenging 72.5 educational programs. 72.6 [EFFECTIVE DATE.] This section is effective for the 72.7 2005-2006 school year. 72.8 Sec. 19. [120B.225] [CHARACTER DEVELOPMENT EDUCATION.] 72.9 Subdivision 1. [CHARACTER DEVELOPMENT EDUCATION.] The 72.10 legislature encourages districts to integrate or offer 72.11 instruction on character education including, but not limited 72.12 to, character qualities such as attentiveness, truthfulness, 72.13 respect for authority, diligence, gratefulness, self-discipline, 72.14 patience, forgiveness, respect for others, peacemaking, and 72.15 resourcefulness. Districts are not limited to, but may use 72.16 programs such as Character First and Character Counts. 72.17 Instruction should be integrated into a district's existing 72.18 programs, curriculum, or the general school environment. The 72.19 commissioner shall provide assistance at the request of a 72.20 district to develop character education curriculum and programs. 72.21 Subd. 2. [FUNDING SOURCES.] The commissioner must first 72.22 use federal funds for character development education programs 72.23 to the extent available under United States Code, title 20, 72.24 section 7247. Districts may accept funds from private and other 72.25 public sources for character development education programs 72.26 developed and implemented under this section. 72.27 [EFFECTIVE DATE.] This section is effective the day 72.28 following final enactment. 72.29 Sec. 20. Minnesota Statutes 2004, section 120B.23, is 72.30 amended to read: 72.31 120B.23 [VIOLENCE PREVENTION AND CHARACTER DEVELOPMENT 72.32 EDUCATION GRANTS.] 72.33 Subdivision 1. [GRANT PROGRAM ESTABLISHED.] The 72.34 commissioner of education, after consulting with the assistant 72.35 commissioner of the Office of Drug Policy and Violence 72.36 Prevention, shall establish a violence prevention and character 73.1 development education grant program, consistent with section 73.2 120B.255, subdivision 1, to enable a school district, an 73.3 education district, or a group of districts that cooperate for a 73.4 particular purpose to develop and implement or to continue a 73.5 violence prevention and character development program for 73.6 students in kindergarten through grade 12 that can be integrated 73.7 into existing curriculum. A district or group of districts that 73.8 elects to develop and implement or to continue a violence 73.9 prevention and character development program under section 73.10 120B.22 is eligible to apply for a grant under this section. 73.11 Subd. 2. [GRANT APPLICATION.] To be eligible to receive a 73.12 grant, a school district, an education district, a service 73.13 cooperative, or a group of districts that cooperate for a 73.14 particular purpose must submit an application to the 73.15 commissioner in the form and manner and according to the 73.16 timeline established by the commissioner. The application must 73.17 describe how the applicant will: (1) continue or integrate into 73.18 its existing K-12 curriculum or into cocurricular or 73.19 extracurricular activities a program for violence prevention 73.20that contains the program components listed in section73.21120B.22and character development; (2) collaborate with local 73.22 organizations involved in violence prevention and 73.23 intervention and character development; and (3) structure the 73.24 program to reflect the characteristics of the children, their 73.25 families and the community involved in the program. The 73.26 commissioner may require additional information from the 73.27 applicant. When reviewing the applications, the commissioner 73.28 shall determine whether the applicant has met the requirements 73.29 of this subdivision. 73.30 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 73.31 for a violence prevention and character development education 73.32 program to eligible applicants as defined in subdivision 2. 73.33 Grant amounts may not exceed $3 per resident pupil unit in the 73.34 district or group of districts in the prior school year. Grant 73.35 recipients should be geographically distributed throughout the 73.36 state. 74.1 Subd. 4. [GRANT PROCEEDS.] A successful applicant must use 74.2 the grant money to develop and implement or to continue a 74.3 violence prevention and character development program according 74.4 to the terms of the grant application. 74.5 [EFFECTIVE DATE.] This section is effective the day 74.6 following final enactment. 74.7 Sec. 21. [120B.25] [AMERICAN HERITAGE EDUCATION.] 74.8 (a) School districts shall permit grade-level instruction 74.9 to ensure students have the opportunity to read and study 74.10 America's founding documents that provide an understanding of 74.11 the principles, character, and world view of America's founders; 74.12 including documents that contributed to the foundation or 74.13 maintenance of America's representative republican form of 74.14 limited government, the Bill of Rights, our free-market economic 74.15 system, and patriotism. Districts shall permit a principal or 74.16 teacher to appropriately use, read, or post in a public school 74.17 building, classroom, or at any public school event any excerpts 74.18 or portions of the original source documents, writings, 74.19 speeches, proclamations, or records relating to the history, 74.20 heritage, or foundation of the United States or the state of 74.21 Minnesota, including, but not limited to: 74.22 (1) the Mayflower Compact; 74.23 (2) the Declaration of Independence; 74.24 (3) the Constitutions of the United States and the state of 74.25 Minnesota; 74.26 (4) the Northwest Ordinance of 1787; 74.27 (5) the Federalist Papers; 74.28 (6) the Pledge of Allegiance; 74.29 (7) the national anthem; 74.30 (8) Washington's farewell address to the nation; 74.31 (9) Lincoln's Gettysburg address; 74.32 (10) the acts and published records of Congress; and 74.33 (11) the United States Supreme Court decisions and records. 74.34 (b) Districts may not censor or restrain instruction in 74.35 American or Minnesota state history or heritage based on 74.36 religious references in original source documents, writings, 75.1 speeches, proclamations, or records described under paragraph 75.2 (a). These and any other materials must be used for educational 75.3 purposes and not to establish any religion. 75.4 (c) Students may voluntarily choose to read, write, share, 75.5 report, or otherwise study a topic which is religious in nature 75.6 provided other students are provided with the same opportunity 75.7 to freely choose a topic. 75.8 Sec. 22. Minnesota Statutes 2004, section 120B.30, 75.9 subdivision 1, is amended to read: 75.10 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 75.11 with advice from experts with appropriate technical 75.12 qualifications and experience and stakeholders, consistent with 75.13 subdivision 1a, shall include in the comprehensive assessment 75.14 system, for each grade level to be tested, state-constructed 75.15 tests developed from and aligned with the state's required 75.16 academic standards under section 120B.021 and administered 75.17 annually to all students in grades 3 through 8 and at the high 75.18 school level. A state-developed test in a subject other than 75.19 writing, developed after the 2002-2003 school year, must include 75.20 both multiple choice and constructed response questions. The 75.21 commissioner shall establish one or more months during which 75.22 schools shall administer the tests to students each school 75.23 year. For students enrolled in grade 8 before the 2005-2006 75.24 school year, only Minnesota basic skills tests in reading, 75.25 mathematics, and writing shall fulfill students' basic skills 75.26 testing requirements for a passing state notation. The passing 75.27 scores of the state tests in reading and mathematics are the 75.28 equivalent of: 75.29 (1) 70 percent correct for students entering grade 9 in 75.30 1996; and 75.31 (2) 75 percent correct for students entering grade 9 in 75.32 1997 and thereafter, as based on the first uniform test 75.33 administration of February 1998. 75.34 For students enrolled in grade 8 in the 2005-2006 school 75.35 year and later, only the Minnesota Comprehensive Assessments 75.36 Second Edition (MCA-IIs) in reading, mathematics, and writing 76.1 shall fulfill students' academic standard requirements. 76.2 (b) The third through 8th grade and high school level test 76.3 results shall be available to districts for diagnostic purposes 76.4 affecting student learning and district instruction and 76.5 curriculum, and for establishing educational accountability. 76.6 The commissioner must disseminate to the public the test results 76.7 upon receiving those results. 76.8 (c) State tests must be constructed and aligned with state 76.9 academic standards. The testing process and the order of 76.10 administration shall be determined by the commissioner. The 76.11 statewide results shall be aggregated at the site and district 76.12 level, consistent with subdivision 1a. 76.13 (d) In addition to the testing and reporting requirements 76.14 under this section, the commissioner shall include the following 76.15 components in the statewide public reporting system: 76.16 (1) uniform statewide testing of all students in grades 3 76.17 through 8 and at the high school level that provides exemptions, 76.18 only with parent or guardian approval, for those very few 76.19 students for whom the student's individual education plan team 76.20 under sections 125A.05 and 125A.06, determines that the student 76.21 is incapable of taking a statewide test, or for a limited 76.22 English proficiency student under section 124D.59, subdivision 76.23 2, if the student has been in the United States for fewer than 76.24 three years; 76.25 (2) educational indicators that can be aggregated and 76.26 compared across school districts and across time on a statewide 76.27 basis, including average daily attendance, high school 76.28 graduation rates, and high school drop-out rates by age and 76.29 grade level; 76.30 (3) students' scores on the American College Test; and 76.31 (4) state results from participation in the National 76.32 Assessment of Educational Progress so that the state can 76.33 benchmark its performance against the nation and other states, 76.34 and, where possible, against other countries, and contribute to 76.35 the national effort to monitor achievement. 76.36 (e) Districts must report exemptions under paragraph (d), 77.1 clause (1), to the commissioner consistent with a format 77.2 provided by the commissioner. 77.3 Sec. 23. Minnesota Statutes 2004, section 120B.30, 77.4 subdivision 1a, is amended to read: 77.5 Subd. 1a. [STATEWIDE AND LOCAL ASSESSMENTS; RESULTS.] (a) 77.6 The commissioner must developlanguage artsreading, 77.7 mathematics, and science assessments aligned with state academic 77.8 standards that districts and sites must use to monitor student 77.9 growth toward achieving those standards. The commissioner must 77.10 not develop statewide assessments for academic standards in 77.11 social studies, health and physical education, and the arts. 77.12 The commissioner must require: 77.13 (1) annuallanguage artsreading and mathematics 77.14 assessments in grades 3 through 8 and at the high school level 77.15 for the 2005-2006 school year and later; and 77.16 (2) annual science assessments in one grade in the grades 3 77.17 through 5 span, the grades 6 through 9 span, and a life sciences 77.18 assessment in the grades 10 through 12 span for the 2007-2008 77.19 school year and later. 77.20 (b) The commissioner must ensure that all statewide tests 77.21 administered to elementary and secondary students measure 77.22 students' academic knowledge and skills and not students' 77.23 values, attitudes, and beliefs. 77.24 (c) Reporting of assessment results must: 77.25 (1) provide timely, useful, and understandable information 77.26 on the performance of individual students, schools, school 77.27 districts, and the state; 77.28 (2) include, by the 2006-2007 school year, a value-added 77.29 component to measure student achievement growth over time; and 77.30 (3) for students enrolled in grade 8 before the 2005-2006 77.31 school year, determine whether students have met the state's 77.32 basic skills requirements; and 77.33 (4) for students enrolled in grade 8 in the 2005-2006 77.34 school year and later, determine whether students have met the 77.35 state's academic standards. 77.36 (d) Consistent with applicable federal law and subdivision 78.1 1, paragraph (d), clause (1), the commissioner must include 78.2 alternative assessments for the very few students with 78.3 disabilities for whom statewide assessments are inappropriate 78.4 and for students with limited English proficiency. 78.5 (e) A school, school district, and charter school must 78.6 administer statewide assessments under this section, as the 78.7 assessments become available, to evaluate student progress in 78.8 achieving the academic standards. If a state assessment is not 78.9 available, a school, school district, and charter school must 78.10 determine locally if a student has met the required academic 78.11 standards. A school, school district, or charter school may use 78.12 a student's performance on a statewide assessment as one of 78.13 multiple criteria to determine grade promotion or retention. A 78.14 school, school district, or charter school may use a high school 78.15 student's performance on a statewide assessment as a percentage 78.16 of the student's final grade in a course, or place a student's 78.17 assessment score on the student's transcript. 78.18 Sec. 24. [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 78.19 (a) The commissioner of education must implement a 78.20 value-added assessment program to assist school districts, 78.21 public schools, and charter schools in assessing and reporting 78.22 individual students' growth in academic achievement under 78.23 section 120B.30, subdivision 1a. The program must use 78.24 assessments of individual students' academic achievement to make 78.25 longitudinal comparisons of each student's academic growth over 78.26 time. School districts, public schools, and charter schools may 78.27 apply to the commissioner to participate in the initial trial 78.28 program using a form and in the manner the commissioner 78.29 prescribes. The commissioner must select program participants 78.30 from urban, suburban, and rural areas throughout the state. 78.31 (b) The commissioner may issue a request for proposals to 78.32 contract with an organization that provides a value-added 78.33 assessment model that reliably estimates school and school 78.34 district effects on students' academic achievement over time. 78.35 The model the commissioner selects must accommodate diverse data 78.36 and must use each student's test data across grades. Data on 79.1 individual teachers generated under the model are personnel data 79.2 under section 13.43. 79.3 (c) The contract under paragraph (b) must be consistent 79.4 with the definition of "best value" under section 16C.02, 79.5 subdivision 4. 79.6 [EFFECTIVE DATE.] This section is effective the day 79.7 following final enactment. 79.8 Sec. 25. Minnesota Statutes 2004, section 121A.03, 79.9 subdivision 1, is amended to read: 79.10 Subdivision 1. [MODEL POLICY.] The commissioner shall 79.11 maintain and make available to school boards a model sexual, 79.12 religious, and racial harassment and violence policy. The model 79.13 policy shall address the requirements of subdivision 2, and may 79.14 encourage violence prevention and character development 79.15 education programs, consistent with section 120B.225, 79.16 subdivision 1, to prevent and reduce policy violations. 79.17 [EFFECTIVE DATE.] This section is effective the day 79.18 following final enactment. 79.19 Sec. 26. Minnesota Statutes 2004, section 121A.06, 79.20 subdivision 2, is amended to read: 79.21 Subd. 2. [REPORTS; CONTENT.]By January 1, 1994, the79.22commissioner, in consultation with the criminal and juvenile79.23information policy group, shall develop a standardized form to79.24be used by schools to report incidents involving the use or79.25possession of a dangerous weapon in school zones.School 79.26 districts must electronically report to the commissioner of 79.27 education incidents involving the use or possession of a 79.28 dangerous weapon in school zones. The formshallmust include 79.29 the following information: 79.30 (1) a description of each incident, including a description 79.31 of the dangerous weapon involved in the incident; 79.32 (2) where, at what time, and under what circumstances the 79.33 incident occurred; 79.34 (3) information about the offender, other than the 79.35 offender's name, including the offender's age; whether the 79.36 offender was a student and, if so, where the offender attended 80.1 school; and whether the offender was under school expulsion or 80.2 suspension at the time of the incident; 80.3 (4) information about the victim other than the victim's 80.4 name, if any, including the victim's age; whether the victim was 80.5 a student and, if so, where the victim attended school; and if 80.6 the victim was not a student, whether the victim was employed at 80.7 the school; 80.8 (5) the cost of the incident to the school and to the 80.9 victim; and 80.10 (6) the action taken by the school administration to 80.11 respond to the incident. 80.12 The commissioneralsoshalldevelopprovide analternative80.13 electronic reporting format that allows school districts to 80.14 provide aggregate data, with an option to use computer80.15technology to report the data. 80.16 Sec. 27. Minnesota Statutes 2004, section 121A.06, 80.17 subdivision 3, is amended to read: 80.18 Subd. 3. [REPORTS; FILING REQUIREMENTS.] ByFebruary 1 and80.19 July131 of each year, each public school shall report 80.20 incidents involving the use or possession of a dangerous weapon 80.21 in school zones to the commissioner. The reports must bemade80.22on the standardized forms or using the alternative80.23formatsubmitted using the electronic reporting system developed 80.24 by the commissioner under subdivision 2. The commissioner shall 80.25 compile the information it receives from the schools and report 80.26 it annually to the commissioner of public safety, the criminal80.27and juvenile information policy group,and the legislature. 80.28 Sec. 28. [121A.24] [NOTICE REQUIREMENTS FOR STUDENT 80.29 SURVEYS AND SIMILAR INSTRUMENTS.] 80.30 (a) A school district must obtain prior written informed 80.31 consent from a parent or guardian of a minor or dependent child 80.32 before administering an academic or nonacademic student survey, 80.33 assessment, analysis, evaluation, or similar instrument that 80.34 solicits information about the student or the student's family 80.35 concerning: 80.36 (1) political affiliations or beliefs; 81.1 (2) mental or psychological problems; 81.2 (3) critical appraisals of another individual with whom a 81.3 student has a close family relationship; 81.4 (4) legally recognized privileged or analogous 81.5 relationships, such as those with a lawyer, physician, or 81.6 minister; 81.7 (5) religious practices, affiliations, or beliefs; or 81.8 (6) income or other income-related information required by 81.9 law to determine eligibility to participate in or receive 81.10 financial assistance under a program. 81.11 (b) When asking a parent or guardian to provide informed 81.12 written consent, the school district must: 81.13 (1) make a copy of the instrument readily accessible to the 81.14 parent or guardian at a convenient location and reasonable time; 81.15 and 81.16 (2) specifically identify the information in paragraph (a) 81.17 that will be solicited through the instrument. 81.18 The district must request the consent of the parent or guardian 81.19 at least 14 days before administering the instrument. 81.20 (c) A parent or guardian seeking to compel a school 81.21 district to comply with this section has available the civil 81.22 remedies under section 13.08, subdivision 4, in addition to 81.23 other remedies provided by law. 81.24 (d) A school district may administer an academic or 81.25 nonacademic student survey, assessment, analysis, evaluation, or 81.26 similar instrument that solicits information about the student 81.27 or the student's family concerning sexual behavior or attitudes 81.28 or illegal, antisocial, self-incriminating, or demeaning 81.29 behavior without obtaining prior written informed consent from 81.30 the parent or guardian of a minor or dependent child. The 81.31 instrument must not identify the student in any way and the 81.32 district must give the student's parent or guardian the 81.33 opportunity to refuse to have the instrument administered to the 81.34 student. 81.35 [EFFECTIVE DATE.] This section is effective the day 81.36 following final enactment. 82.1 Sec. 29. Minnesota Statutes 2004, section 121A.47, 82.2 subdivision 14, is amended to read: 82.3 Subd. 14. [ADMISSION OR READMISSION PLAN.] A school 82.4 administrator shall prepare and enforce an admission or 82.5 readmission plan for any pupil who is excluded or expelled from 82.6 school. The plan may include measures to improve the pupil's 82.7 behavior, including completing a character education program, 82.8 consistent with section 120B.225, subdivision 1, and require 82.9 parental involvement in the admission or readmission process, 82.10 and may indicate the consequences to the pupil of not improving 82.11 the pupil's behavior. 82.12 [EFFECTIVE DATE.] This section is effective the day 82.13 following final enactment. 82.14 Sec. 30. Minnesota Statutes 2004, section 121A.53, is 82.15 amended to read: 82.16 121A.53 [REPORT TO COMMISSIONER OF EDUCATION.] 82.17 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 82.18 boardshallmust report through the department electronic 82.19 reporting system each exclusion or expulsion within 30 days of 82.20 the effective date of the action to the commissioner of 82.21 education. This reportshallmust include a statement of 82.22 alternative educational services given the pupil and the reason 82.23 for, the effective date, and the duration of the exclusion or 82.24 expulsion. The report must also include the student's age, 82.25 grade, gender, race, and special education status. 82.26 Subd. 2. [REPORT.] The school board must include state 82.27 student identification numbers of affected pupils on all 82.28 dismissal reports required by the department. The department 82.29 must report annually to the commissioner summary data on the 82.30 number of dismissals by age, grade, gender, race, and special 82.31 education status of the affected pupils. All dismissal reports 82.32 must be submitted through the department electronic reporting 82.33 system. 82.34 Sec. 31. Minnesota Statutes 2004, section 121A.55, is 82.35 amended to read: 82.36 121A.55 [POLICIES TO BE ESTABLISHED.] 83.1 (a) The commissioner of education shall promulgate 83.2 guidelines to assist each school board. Each school board shall 83.3 establish uniform criteria for dismissal and adopt written 83.4 policies and rules to effectuate the purposes of sections 83.5 121A.40 to 121A.56. The policies shall emphasize preventing 83.6 dismissals through early detection of problems, using character 83.7 development or other programs, consistent with section 120B.225, 83.8 subdivision 1, and shall be designed to address students' 83.9 inappropriate behavior from recurring. The policies shall 83.10 recognize the continuing responsibility of the school for the 83.11 education of the pupil during the dismissal period. The 83.12 alternative educational services, if the pupil wishes to take 83.13 advantage of them, must be adequate to allow the pupil to make 83.14 progress towards meeting the graduation standards adopted under 83.15 section 120B.02 and help prepare the pupil for readmission. 83.16 (b) An area learning center under section 123A.05 may not 83.17 prohibit an expelled or excluded pupil from enrolling solely 83.18 because a district expelled or excluded the pupil. The board of 83.19 the area learning center may use the provisions of the Pupil 83.20 Fair Dismissal Act to exclude a pupil or to require an admission 83.21 plan. 83.22 (c) Each school district shall develop a policy and report 83.23 it to the commissioner on the appropriate use of peace officers 83.24 and crisis teams to remove students who have an individualized 83.25 education plan from school grounds. 83.26 [EFFECTIVE DATE.] This section is effective the day 83.27 following final enactment. 83.28 Sec. 32. [121A.575] [ALTERNATIVES TO PUPIL SUSPENSION.] 83.29 Notwithstanding any law to the contrary and in accordance 83.30 with sections 121A.40 to 121A.56, after a school administration 83.31 notifies a pupil of the grounds for suspension, the school 83.32 administration may, instead of imposing the suspension, do one 83.33 or more of the following: 83.34 (1) strongly encourage a parent or guardian of the pupil to 83.35 attend school with the pupil for one day; 83.36 (2) assign the pupil to attend school on Saturday as 84.1 supervised by the principal or the principal's designee; and 84.2 (3) petition the juvenile court that the student is in need 84.3 of services under chapter 260C. 84.4 Sec. 33. [121A.655] [SCHOOL ATTENDANCE REQUIREMENT; 84.5 DRIVING PRIVILEGES.] 84.6 Students enrolled in a school district, charter school, or 84.7 alternative education program that does not waive the school 84.8 attendance requirement for driving privileges are subject to 84.9 section 171.056, among other related sections. 84.10 [EFFECTIVE DATE.] This section is effective July 1, 2005. 84.11 Sec. 34. Minnesota Statutes 2004, section 122A.06, 84.12 subdivision 4, is amended to read: 84.13 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASEDEFFECTIVE 84.14 READING INSTRUCTION.]"Comprehensive, scientifically based84.15reading instruction" includes instruction and practice in84.16phonemic awareness, phonics and other word-recognition skills,84.17and guided oral reading for beginning readers, as well as84.18extensive silent reading, vocabulary instruction, instruction in84.19comprehension, and instruction that fosters understanding and84.20higher-order thinking for readers of all ages and proficiency84.21levels."Effective reading instruction" includes a program or 84.22 collection of instructional practices that is based on reliable 84.23 evidence showing that when these programs or practices are used, 84.24 students can be expected to achieve, at a minimum, satisfactory 84.25 reading progress. The program or collection of practices must 84.26 include, at a minimum, instruction in five areas of reading: 84.27 phonemic awareness, phonics, fluency, vocabulary, and text 84.28 comprehension. 84.29 Effective reading instruction also includes and integrates 84.30 instructional strategies for continuously assessing, evaluating, 84.31 and communicating the student's reading progress and needs in 84.32 order to design and implement ongoing interventions so that 84.33 students of all ages and proficiency levels can read and 84.34 comprehend text and apply higher level thinking skills. 84.35 Sec. 35. Minnesota Statutes 2004, section 122A.09, 84.36 subdivision 4, is amended to read: 85.1 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 85.2 rules to license public school teachers and interns subject to 85.3 chapter 14. 85.4 (b) The board must adopt rules requiring a person to 85.5 successfully complete a skills examination in reading, writing, 85.6 and mathematics as a requirement for initial teacher licensure. 85.7 Such rules must require college and universities offering a 85.8 board-approved teacher preparation program to provide remedial 85.9 assistance to persons who did not achieve a qualifying score on 85.10 the skills examination, including those for whom English is a 85.11 second language. 85.12 (c) The board must adopt rules to approve teacher 85.13 preparation programs. The board, upon the request of a 85.14 postsecondary student preparing for teacher licensure or a 85.15 licensed graduate of a teacher preparation program, shall assist 85.16 in resolving a dispute between the person and a postsecondary 85.17 institution providing a teacher preparation program when the 85.18 dispute involves an institution's recommendation for licensure 85.19 affecting the person or the person's credentials. At the 85.20 board's discretion, assistance may include the application of 85.21 chapter 14. 85.22 (d) The board must provide the leadership and shall adopt 85.23 rules for the redesign of teacher education programs to 85.24 implement a research based, results-oriented curriculum that 85.25 focuses on the skills teachers need in order to be effective. 85.26 The board shall implement new systems of teacher preparation 85.27 program evaluation to assure program effectiveness based on 85.28 proficiency of graduates in demonstrating attainment of program 85.29 outcomes. 85.30 (e) The board must adopt rules requiring successful 85.31 completion of an examination of general pedagogical knowledge 85.32 and examinations of licensure-specific teaching skills. The 85.33 rules shall be effective on the dates determined by the board 85.34 but not later than September 1, 2001. 85.35 (f) The board must adopt rules requiring teacher educators 85.36 to work directly with elementary or secondary school teachers in 86.1 elementary or secondary schools to obtain periodic exposure to 86.2 the elementary or secondary teaching environment. 86.3 (g) The board must grant licenses to interns and to 86.4 candidates for initial licenses. 86.5 (h) The board must design and implement an assessment 86.6 system which requires a candidate for an initial license and 86.7 first continuing license to demonstrate the abilities necessary 86.8 to perform selected, representative teaching tasks at 86.9 appropriate levels. 86.10 (i) The board must receive recommendations from local 86.11 committees as established by the board for the renewal of 86.12 teaching licenses. 86.13 (j) The board must grant life licenses to those who qualify 86.14 according to requirements established by the board, and suspend 86.15 or revoke licenses pursuant to sections 122A.20 and 214.10. The 86.16 board must not establish any expiration date for application for 86.17 life licenses. 86.18 (k) The board must adopt rules that require all licensed 86.19 teachers who are renewing their continuing license to include in 86.20 their renewal requirements further preparation in the areas of 86.21 using positive behavior interventions and in accommodating, 86.22 modifying, and adapting curricula, materials, and strategies to 86.23 appropriately meet the needs of individual students and ensure 86.24 adequate progress toward the state's graduation rule. 86.25 (l) In adopting rules to license public school teachers who 86.26 provide health-related services for disabled children, the board 86.27 shall adopt rules consistent with license or registration 86.28 requirements of the commissioner of health and the 86.29 health-related boards who license personnel who perform similar 86.30 services outside of the school. 86.31 (m) The board must adopt rules that require all licensed 86.32 teachers who are renewing their continuing license to include in 86.33 their renewal requirements further reading preparation, 86.34 consistent with section 122A.06, subdivision 4. The rules do 86.35 not take effect until they are approved by law. Teachers who do 86.36 not provide direct instruction including, at least, counselors, 87.1 school psychologists, school nurses, school social workers, 87.2 audiovisual directors and coordinators, and recreation personnel 87.3 are exempt from this section. 87.4 (n) The board must adopt rules that require all licensed 87.5 teachers who are renewing their continuing license to include in 87.6 their renewal requirements further preparation in understanding 87.7 the key warning signs of early-onset mental illness in children 87.8 and adolescents. 87.9 (o) The board must: 87.10 (1) adopt rules to license qualified candidates to teach 87.11 chemistry, physics, biology, and earth and space science; and 87.12 (2) license a science teacher qualified to teach in grades 87.13 7 through 12 to teach in a new science content area or level in 87.14 grades 7 through 12 if the teacher holds a continuing license to 87.15 teach science, has a continuing contract under section 122A.40, 87.16 subdivision 7, or section 122A.41, subdivision 4, and receives a 87.17 qualifying score on an appropriate Praxis II test in a science 87.18 subject other than the teacher's currently licensed science 87.19 field or level. A qualifying score is the same test score used 87.20 for initial licenses to teach science. A science teacher who 87.21 seeks licensure in a different science content area or level 87.22 under this paragraph is responsible for the actual costs of the 87.23 required testing. The board's authority to license science 87.24 teachers under this paragraph expires August 1, 2009. 87.25 Sec. 36. Minnesota Statutes 2004, section 122A.12, 87.26 subdivision 2, is amended to read: 87.27 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION; 87.28 REIMBURSEMENT.] (a) Membership terms, removal of members, and 87.29 the filling of membership vacancies are as provided in section 87.30 214.09. The terms of the initial board members must be 87.31 determined by lot as follows: 87.32 (1) three members must be appointed for terms that expire 87.33 August 1, 2002; 87.34 (2) three members must be appointed for terms that expire 87.35 August 1, 2003; and 87.36 (3) four members must be appointed for terms that expire 88.1 August 1, 2004. 88.2 Members shall not receive the daily payment under section 88.3 214.09, subdivision 3. The public employer of a member shall 88.4 not reduce the member's compensation or benefits for the 88.5 member's absence from employment when engaging in the business 88.6 of the board. The provision of staff, administrative services, 88.7 and office space; the review and processing of complaints; the 88.8 setting of fees; the selection and duties of an executive 88.9 secretary to serve the board; and other provisions relating to 88.10 board operations are as provided in chapter 214. Fiscal year 88.11 and reporting requirements are as provided in sections 214.07 88.12 and 214.08. 88.13 (b) The board may reimburse local school districts for the 88.14 cost of a substitute teacher employed when a regular teacher is 88.15 providing professional assistance to the state by serving on the 88.16 board or on a committee or task force appointed by the board. 88.17 Sec. 37. Minnesota Statutes 2004, section 122A.18, 88.18 subdivision 2a, is amended to read: 88.19 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 88.20 universities approved by the Board of Teaching to prepare 88.21 persons for classroom teacher licensure must include in their 88.22 teacher preparation programsreading best practices that enable88.23classroom teacher licensure candidates to know how to teach88.24reading, such as phonics or otherresearch-based best practices 88.25 in reading, consistent with section 122A.06, subdivision 4, that 88.26 enable the licensure candidate to know how to teach reading in 88.27 the candidate's content areas. 88.28 (b) Board-approved teacher preparation programs for 88.29 teachers of elementary education must require instruction in the 88.30 application of comprehensive, scientifically based, and balanced 88.31 reading instruction programs.that: 88.32 (1) teach students to read using foundational knowledge, 88.33 practices, and strategies consistent with section 122A.06, 88.34 subdivision 4, so that all students will achieve continuous 88.35 progress in reading; and 88.36 (2) teach specialized instruction in reading strategies, 89.1 interventions, and remediations that enable students of all ages 89.2 and proficiency levels to become proficient readers. 89.3 Sec. 38. Minnesota Statutes 2004, section 122A.41, 89.4 subdivision 14, is amended to read: 89.5 Subd. 14. [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 89.6 OF PUPILS; PREFERENCE GIVEN.] (a) A teacher whose services are 89.7 terminated on account of discontinuance of position or lack of 89.8 pupils must receive first consideration for other positions in 89.9 the district for which that teacher is qualified. In the event 89.10 it becomes necessary to discontinue one or more positions, in 89.11 making such discontinuance, teachers must be discontinued in any 89.12 department in the inverse order in which they were employed, 89.13 unless a board and the exclusive representative of teachers in 89.14 the district negotiate a plan providing otherwise. 89.15 (b) Notwithstanding the provisions of clause (a), a teacher 89.16 is not entitled to exercise any seniority when that exercise 89.17 results in that teacher being retained by the district in a 89.18 field for which the teacher holds only a provisional license, as 89.19 defined by the Board of Teaching, unless that exercise of 89.20 seniority results in the termination of services, on account of 89.21 discontinuance of position or lack of pupils, of another teacher 89.22 who also holds a provisional license in the same field. The 89.23 provisions of this clause do not apply to vocational education 89.24 licenses. 89.25 (c) Notwithstanding the provisions of clause (a), a teacher 89.26 must not be reinstated to a position in a field in which the 89.27 teacher holds only a provisional license, other than a 89.28 vocational education license, while another teacher who holds a 89.29 nonprovisional license in the same field is available for 89.30 reinstatement. 89.31 Sec. 39. Minnesota Statutes 2004, section 122A.414, is 89.32 amended to read: 89.33 122A.414 [ALTERNATIVE TEACHERCOMPENSATIONPAY.] 89.34 Subdivision 1. [RESTRUCTURED PAY SYSTEM.] A restructured 89.35 teachercompensationprofessional pay system is established 89.36 under subdivision 2 to provide incentives for teachers to 90.1 improve their knowledge and skills and for school districts and 90.2 charter schools to recruit and retain highly qualified teachers, 90.3 and to support teachers' roles in improving students' 90.4 educational achievement. 90.5 Subd. 2. [ALTERNATIVE TEACHER PROFESSIONAL PAY SYSTEM.] 90.6 (a) To participate in this program, a school district, school 90.7 site, or charter school must have an educational improvement 90.8 planasdescribed in section 122A.413 and an alternative teacher 90.9 professional pay systemasdescribed in paragraph (b). 90.10 (b) The alternative teacher professional pay system must: 90.11 (1) describethe conditions necessary forhow teachers can 90.12 achieve career advancement and additional compensation; 90.13 (2) describe how the school district, school site, or 90.14 charter school will provide teachers with career advancement 90.15 optionsfor teachers retaining, such as master or mentor teacher 90.16 positions that allow teachers to retain primary roles in student 90.17 instruction and facilitate job-embedded professional development 90.18 that helps other teachers improve their skills; 90.19 (3)use a professional pay system that replaces the step90.20and lane salary schedule and is not based on years of service;90.21(4) encourage teachers' continuous improvement in content90.22knowledge, pedagogy, and use of best practices; and90.23(5) implement an objective evaluation system, including90.24classroom observation, that is aligned with the district's or90.25the site's educational improvement plan as described in section90.26122A.413eliminate the "steps and lanes" salary schedule and 90.27 compensate teachers for performing satisfactory service, 90.28 achieving professional teaching goals, and undergoing 90.29 evaluations under clause (6); 90.30 (4) compensate teachers for their performance based on, at 90.31 a minimum: 90.32 (i) schoolwide achievement gains under section 120B.35 or 90.33 locally selected standardized assessment outcomes, or both; 90.34 (ii) individual student achievement gains, where available, 90.35 under section 120B.35 or locally selected standardized 90.36 assessment outcomes, or both; and 91.1 (iii) results of individual teacher evaluations conducted 91.2 by a locally selected and trained evaluation team under clause 91.3 (6); 91.4 (5) provide integrated ongoing site-based professional 91.5 development activities that are aligned with student needs under 91.6 sections 122A.413 and 122A.60, if enacted, and led during the 91.7 school day by trained teacher leaders such as master or mentor 91.8 teachers; and 91.9 (6) provide an objective and comprehensive teacher 91.10 evaluation that is aligned with the educational improvement plan 91.11 under section 122A.413 and the staff development plan under 91.12 section 122A.601, if enacted, and that includes multiple 91.13 evaluations of a teacher's performance during the school year 91.14 conducted by the locally selected and trained evaluation team 91.15 that are based on best practice teaching standards and 91.16 instruction and on classroom observations. 91.17 Subd. 3. [REPORT.] Participating districtsand, school 91.18 sites, and charter schools must report on the implementation and 91.19 effectiveness of the alternative teachercompensation91.20planprofessional pay system, particularly addressing each 91.21 requirement under subdivision 2 and make biennial 91.22 recommendations by January 1 to their school boards. The school 91.23boardsboard shall transmit a copy of the report with a summary 91.24 of the findings and recommendations oftheirthe district, 91.25 school site, or charter school to the commissioner. 91.26 Sec. 40. Minnesota Statutes 2004, section 122A.415, 91.27 subdivision 1, is amended to read: 91.28 Subdivision 1. [AIDREVENUE AMOUNT.] (a) A school district 91.29 , school site, or charter school that meets the conditions of 91.30 section 122A.414 and submits an application approved by the 91.31 commissioner is eligible for alternative compensationaid91.32 revenue. 91.33 (b) For school district applications, the commissioner must 91.34 consider only those applications to participate that are 91.35 submitted jointly by a school district and the exclusive 91.36 representative of the teachersfor participation in the92.1program. The application must contain a formally adopted 92.2 collective bargaining agreement, memorandum of understanding, or 92.3 other binding agreement that: 92.4 (1) implements an alternative teacher professional pay 92.5 system consistent with section 122A.414; 92.6 (2) complies with the Public Employment Labor Relations Act 92.7 under chapter 179A, except that notwithstanding section 179A.20, 92.8 subdivision 3, a district may enter into a contract for a term 92.9 of between two and four years; and 92.10 (3) includes all teachers in a district,or all teachers at 92.11 a school site, or at least 25 percent of the teachers in a92.12district. The commissioner, in approving applications, may give92.13preference to applications involving entire districts or sites92.14or to applications that align measures of teacher performance92.15with student academic achievement and progress under section92.16120B.35, subdivision 1. 92.17 Alternative teacher compensationaidrevenue for a 92.18 qualifying school district,or site, or portion of a district or92.19school site is as follows:92.20(1) for a school districtin which the school board and the 92.21 exclusive representative of the teachers agree to place all 92.22 teachers in the district or at the site on the 92.23 alternativecompensation schedule, alternative compensation aid92.24 teacher professional pay system equals$150$260 times the 92.25 district's or the site's number of pupils enrolled on October 1 92.26 of the previous fiscal year; or92.27(2) for a district in which the school board and the92.28exclusive representative of the teachers agree that at least 2592.29percent of the district's licensed teachers will be paid on the92.30alternative compensation schedule, alternative compensation aid92.31equals $150 times the percentage of participating teachers times92.32the district's number of pupils enrolled as of October 1 of the92.33previous fiscal year. 92.34 (c) For charter school applications, the board of directors 92.35 of a charter school that satisfies the conditions under section 92.36 122A.414 must submit to the commissioner an application that 93.1 contains: 93.2 (1) an agreement to implement an alternative teacher 93.3 professional pay system under section 122A.414; 93.4 (2) a resolution by the charter school board of directors 93.5 adopting the agreement; and 93.6 (3) the record of a formal vote by the teachers employed at 93.7 the charter school indicating that at least 70 percent of all 93.8 teachers agree to implement the alternative teacher professional 93.9 pay system, unless the charter school submits an alternative 93.10 teacher professional pay system under section 122A.414 before 93.11 the first year of operation. 93.12 Alternative compensation revenue for a qualifying charter 93.13 school must be calculated under section 126C.10, subdivision 34, 93.14 paragraphs (a) and (b). 93.15(b)(d) The revenue is available only to school districts, 93.16 school sites, and charter schools that implement an alternative 93.17 teacher professional pay system before the school year begins. 93.18 Sec. 41. Minnesota Statutes 2004, section 122A.415, 93.19 subdivision 3, is amended to read: 93.20 Subd. 3. [AIDREVENUE TIMING.] (a) Districtsor, school 93.21 sites, or charter schools with approved applications must 93.22 receive alternative compensationaidrevenue for each school 93.23 year that the districtor, school site, or charter school 93.24 participates in the programas described inunder this 93.25 subdivision. Districtsor, school sites, or charter schools 93.26 with applicationsreceivedapproved by the commissionerbefore93.27June 1 of the first year of a two-year contractshall receive 93.28 alternative compensationaidrevenue forbothschool yearsof93.29the contract. Districts or sites with applications received by93.30the commissioner after June 1 of the first year of a two-year93.31contract shall receive alternative compensation aid only for the93.32second year of the contractin which the alternative teacher 93.33 professional pay system is implemented for the full school 93.34 year. For fiscal year 2007 and later, a qualifying districtor, 93.35 school site, or charter school that received alternative 93.36 compensation aid for the previous fiscal year must receive at 94.1 least an amount of alternative teacher compensation revenue 94.2 equal to the lesser of the amount it received for the previous 94.3 fiscal year orits proportionate share of the previous year's94.4appropriationthe amount it qualifies for under subdivision 1 94.5 for the current fiscal year if the districtor, school site, or 94.6 charter school submits a timely application and the commissioner 94.7 determines that the districtor, school site, or charter school 94.8 continues to implement an alternative teacher professional pay 94.9 system, consistent with its application under this section.The94.10commissioner must approve initial applications for school94.11districts qualifying under subdivision 1, paragraph (b), clause94.12(1), by January 15 of each year. If any money remains, the94.13commissioner must approve aid amounts for school districts94.14qualifying under subdivision 1, paragraph (b), clause (2), by94.15February 15 of each year.94.16 (b) The commissioner shall approve applications that comply 94.17 with sections 122A.414, subdivision 2, paragraph (b), and 94.18 122A.415, subdivision 1, in the order in which they are 94.19 received, select applicants that qualify for this program, 94.20 notify school districtsand, school sites, and charter schools 94.21 about the program, develop and disseminate application 94.22 materials, and carry out other activities needed to implement 94.23 this section. 94.24 [EFFECTIVE DATE.] This section is effective August 1, 2005. 94.25 Sec. 42. Minnesota Statutes 2004, section 123A.06, 94.26 subdivision 1, is amended to read: 94.27 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 94.28 services of a center must focus on academic and learning skills, 94.29 applied learning opportunities, trade and vocational skills, 94.30 work-based learning opportunities, work experience, youth 94.31 service to the community, transition services, and English 94.32 language and literacy programs for children whose primary 94.33 language is a language other than English, and may focus on 94.34 character development, consistent with section 120B.225, 94.35 subdivision 1. Applied learning, work-based learning, and 94.36 service learning may best be developed in collaboration with a 95.1 local education and transitions partnership, culturally based 95.2 organizations, mutual assistance associations, or other 95.3 community resources. In addition to offering programs, the 95.4 center shall coordinate the use of other available educational 95.5 services, special education services, social services, health 95.6 services, and postsecondary institutions in the community and 95.7 services area. 95.8 (b) Consistent with the requirements of sections 121A.40 to 95.9 121A.56, a school district may provide an alternative education 95.10 program for a student who is within the compulsory attendance 95.11 age under section 120A.20, and who is involved in severe or 95.12 repeated disciplinary action. 95.13 [EFFECTIVE DATE.] This section is effective the day 95.14 following final enactment. 95.15 Sec. 43. [123A.10] [EDUCATION ADMINISTRATIVE DISTRICTS.] 95.16 Subdivision 1. [ADMINISTRATIVE EFFICIENCY.] An education 95.17 administrative district is intended to increase the efficiency 95.18 of administrative services for kindergarten through grade 12 95.19 public schools by combining the administrative functions of 95.20 multiple school districts while preserving independent school 95.21 district control of individual school sites. 95.22 Subd. 2. [AGREEMENT TO ESTABLISH EDUCATION ADMINISTRATIVE 95.23 DISTRICT.] School boards that meet the requirements of 95.24 subdivision 3 may enter into a written agreement to establish an 95.25 education administrative district. The agreement must include 95.26 methods to improve the efficient delivery of administrative 95.27 services. A majority of the full board of each member district 95.28 that is a party to the agreement must adopt the agreement and 95.29 any subsequent modifications of the agreement. 95.30 Subd. 3. [COMMISSIONER REVIEW AND COMMENT.] Before 95.31 entering into an agreement to establish an education 95.32 administrative district, the school boards of the proposed 95.33 member districts jointly must submit the proposed agreement to 95.34 the commissioner for review and comment. The commissioner must 95.35 submit a review and comment on the educational and economic 95.36 advisability of the proposed agreement to the affected school 96.1 boards within 60 days of receiving the proposal. If the 96.2 commissioner submits a negative review and comment, the 96.3 districts do not qualify for levy authority under section 96.4 123A.12, subdivision 5. 96.5 Subd. 4. [NOTICE AND PUBLIC HEARING ON PROPOSED 96.6 AGREEMENT.] Before entering into an agreement to establish an 96.7 education administrative district, the school boards of the 96.8 proposed member districts each must publish the commissioner's 96.9 review and comment and a summary of the proposed agreement and 96.10 its anticipated effect upon the district at least once in a 96.11 newspaper of general circulation in the district. The board 96.12 must conduct a public hearing on the proposed agreement not more 96.13 than ten days after the notice is published and at least 30 days 96.14 before entering into the agreement. 96.15 [EFFECTIVE DATE.] This section is effective for the 96.16 2005-2006 school year and later. 96.17 Sec. 44. [123A.11] [EDUCATION ADMINISTRATIVE DISTRICT 96.18 BOARD.] 96.19 Subdivision 1. [SCHOOL DISTRICT REPRESENTATION.] The 96.20 education administrative district board is composed of at least 96.21 one representative appointed by the school board of each member 96.22 district. Each representative must be a member of the 96.23 appointing school board. Each representative serves at the 96.24 pleasure of the appointing board and may be recalled by a 96.25 majority vote of the appointing board. Each representative 96.26 serves for the term specified in the agreement. The board must 96.27 select its officers from among its members and determine the 96.28 officers' terms. The board must adopt bylaws for conducting 96.29 business. The board may conduct public meetings using 96.30 interactive television if it complies with chapter 13 in each 96.31 location where board members are present. 96.32 Subd. 2. [PROVIDING ADMINISTRATIVE SERVICES.] An education 96.33 administrative district board must implement the agreement for 96.34 efficiently delivering needed administrative services under 96.35 section 123A.12 to the education administrative district. 96.36 Subd. 3. [PERSONNEL.] The board may employ personnel 97.1 needed to provide administrative services to the education 97.2 administrative district. Personnel employed by the education 97.3 administrative district are eligible to participate in 97.4 retirement programs. Notwithstanding section 123B.143, 97.5 subdivision 1, a district member of an education administrative 97.6 district must contract with the education administrative 97.7 district to obtain superintendent services. The person 97.8 providing superintendent services need not be an employee of the 97.9 education administrative district or a member district at the 97.10 time the person contracts to provide superintendent services. 97.11 Subd. 4. [CONTRACTS.] The education administrative 97.12 district board may contract with school districts and other 97.13 public and private agencies to provide needed administrative 97.14 services in the education administrative district. 97.15 Subd. 5. [GENERAL LAW.] The education administrative 97.16 district board is governed by section 471.59 unless specifically 97.17 provided otherwise under sections 123A.10 to 123A.12. 97.18 Subd. 6. [ANNUAL REPORT.] After each of its first five 97.19 years of operation, the education administrative district board 97.20 must submit an annual report to its member districts and the 97.21 commissioner about the education administrative district's 97.22 activities, including an analysis of its administrative costs 97.23 and efficiencies. 97.24 [EFFECTIVE DATE.] This section is effective for the 97.25 2005-2006 school year and later. 97.26 Sec. 45. [123A.12] [EDUCATION ADMINISTRATIVE DISTRICT 97.27 AGREEMENT.] 97.28 Subdivision 1. [IMPLEMENTATION; REVIEW.] An education 97.29 administrative district board must implement the agreement of 97.30 its member districts under section 123A.10, subdivision 2, to 97.31 provide efficient administrative services to the education 97.32 administrative district. The board must review the agreement 97.33 annually and propose needed modifications to its member 97.34 districts. 97.35 Subd. 2. [ADMINISTRATIVE SERVICES.] (a) Consistent with 97.36 section 123B.143, subdivision 1, the agreement must allow the 98.1 education administrative district board within 24 months of 98.2 implementing the agreement to select one superintendent to serve 98.3 the education administrative district for a specified term. 98.4 (b) The agreement must specify other noninstructional 98.5 services the education administrative district intends to 98.6 provide to member districts, including, among other services, 98.7 business management, human resources, payroll, food service, 98.8 buildings and ground maintenance, pupil transportation, 98.9 technology coordination, curriculum coordination, community 98.10 education, nursing services, student records, student 98.11 administrative services, and school building administration. 98.12 Subd. 3. [TIMING AND DURATION.] (a) The initial agreement 98.13 must contain a timeline for implementing the agreement. 98.14 (b) The initial agreement must be for a period of at least 98.15 three years. After completing the first two years, the 98.16 agreement may be extended by a majority vote of the full board 98.17 of each member district. 98.18 Subd. 4. [FINANCES.] The initial agreement must: 98.19 (1) include a three-year budget projection comparing 98.20 existing administrative services and costs with proposed 98.21 administrative services and costs for each year; 98.22 (2) specify the retirement and severance incentives, 98.23 consistent with section 123A.48, subdivision 23, that may be 98.24 offered to licensed and nonlicensed staff, and how these costs 98.25 will be apportioned among member districts; 98.26 (3) specify other start-up costs for the education 98.27 administrative district and how these costs will be apportioned 98.28 among member districts; 98.29 (4) specify the estimated amounts each member district will 98.30 levy under subdivision 5 for the specified costs in clauses (2) 98.31 and (3); and 98.32 (5) specify an equitable distribution formula for the 98.33 education administrative district board to assess and certify a 98.34 proportionate share of expenses to member districts, which must 98.35 remit their assessment to the education administrative district 98.36 board within 30 days of receiving the certified assessment. 99.1 Subd. 5. [LEVY.] A school district that is a member of an 99.2 education administrative district may levy an amount equal to 99.3 the member district's share of costs approved by the 99.4 commissioner for retirement and severance incentives and other 99.5 start-up costs included in the initial agreement under 99.6 subdivision 4, clauses (2) and (3), over a term of not more than 99.7 36 months. 99.8 Subd. 6. [REPORTS TO EDUCATION DEPARTMENT.] Member school 99.9 districts jointly may submit reports and provide required 99.10 information to the department. The joint reports clearly must 99.11 attribute information, including expenditures for the education 99.12 administrative district, to individual member districts. 99.13 Subd. 7. [ADDITIONAL AND WITHDRAWING DISTRICTS.] (a) Upon 99.14 approval by a majority vote of a district school board and the 99.15 education administrative district board, an adjoining school 99.16 district may become a member of an education administrative 99.17 district and is governed by this section and the education 99.18 administrative district agreement in effect. A noncontiguous 99.19 district may become a member with the commissioner's approval 99.20 based on the criteria under section 123A.10, subdivision 3. A 99.21 new member added to an education administrative district may 99.22 levy for approved retirement and severance incentive costs under 99.23 subdivision 5. 99.24 (b) After three consecutive years of membership, a member 99.25 district, by majority vote of its full board and after complying 99.26 with the applicable terms in the education administrative 99.27 district agreement, may withdraw from the education 99.28 administrative district and the agreement at the end of the 99.29 subsequent fiscal year. 99.30 Subd. 8. [DISSOLUTION.] After the first three years of the 99.31 education administrative district, the boards of each member 99.32 district may agree to dissolve the education administrative 99.33 district at the end of any fiscal year or at an earlier, 99.34 mutually agreeable time. Member districts must dissolve the 99.35 education administrative district according to the applicable 99.36 provisions in the agreement establishing the education 100.1 administrative district. The dissolution must not affect the 100.2 continuing liability of any district formerly a member of the 100.3 education administrative district for continuing obligations, 100.4 including employment benefits. 100.5 [EFFECTIVE DATE.] This section is effective for the 100.6 2005-2006 school year and later. 100.7 Sec. 46. Minnesota Statutes 2004, section 123A.24, 100.8 subdivision 2, is amended to read: 100.9 Subd. 2. [COOPERATIVE UNIT DEFINED.] For the purposes of 100.10 this section, a cooperative unit is: 100.11 (1) an education district organized under sections 123A.15 100.12 to 123A.19; 100.13 (2) a cooperative vocational center organized under section 100.14 123A.22; 100.15 (3) an intermediate district organized under chapter 136D; 100.16 (4) an education administrative district organized under 100.17 sections 123A.10 to 123A.12; 100.18 (5) a service cooperative organized under section 123A.21; 100.19 or 100.20(5)(6) a regional management information center organized 100.21 under section 123A.23 or as a joint powers district according to 100.22 section 471.59. 100.23 Sec. 47. Minnesota Statutes 2004, section 123B.02, is 100.24 amended by adding a subdivision to read: 100.25 Subd. 22. [REWARD.] A school board, after formally 100.26 adopting a policy consistent with this subdivision, may offer a 100.27 reward to a person who provides accurate and reliable 100.28 information leading to the conviction of a person who has 100.29 committed, attempted to commit, or conspired to commit a crime 100.30 against students or school employees, volunteers or board 100.31 members as a result of their affiliation with the school 100.32 district, or against school district property. 100.33 [EFFECTIVE DATE.] This section is effective the day 100.34 following final enactment. 100.35 Sec. 48. [123B.022] [PROHIBITING SCHOOL EMPLOYEES FROM 100.36 USING PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND 101.1 CURRENT FACTUAL INFORMATION.] 101.2 (a) A school board must adopt and implement a districtwide 101.3 policy that prohibits district employees from using district 101.4 funds or other publicly funded district resources, including 101.5 time, materials, equipment, facilities, and communication 101.6 technologies, among other resources, to advocate for electing or 101.7 defeating a candidate, passing or defeating a ballot question, 101.8 or passing or defeating pending legislation. The policy must 101.9 apply when the employee performs the duties assigned to the 101.10 employee under the employee's employment contract with the 101.11 district, and includes the periods when the employee represents 101.12 the district in an official capacity, among other duties. The 101.13 policy must not apply when an employee disseminates factual 101.14 information consistent with the employee's contractual duties. 101.15 (b) The school board must provide the district's electorate 101.16 with timely factual information about a pending ballot question. 101.17 [EFFECTIVE DATE.] This section is effective January 1, 2006. 101.18 Sec. 49. [123B.042] [SCHOOL SITE GOVERNANCE PROGRAM.] 101.19 Subdivision 1. [ESTABLISHMENT.] A school site governance 101.20 program is established to provide schools with more authority 101.21 and flexibility to teach and provide services to students at the 101.22 school site. Nothing in this section affects a school 101.23 district's ability to enter into a school site decision-making 101.24 agreement under section 123B.04. 101.25 Subd. 2. [SITE DECISION-MAKING TEAM.] (a) To participate 101.26 in the program, a school must form a site decision-making team 101.27 that includes a school principal or other persons having general 101.28 control and supervision of the school, at least one teacher in 101.29 the school, one noninstructional staff person in the school, and 101.30 at least one parent of a student enrolled in the school or other 101.31 community member. By October 1 of the school year before 101.32 participating in the program, the school site decision-making 101.33 team must: 101.34 (1) be approved by a 60 percent vote of employees in the 101.35 school; 101.36 (2) adopt a policy describing how it will delegate 102.1 authority and responsibilities among its members; and 102.2 (3) notify the school board of its intent to participate in 102.3 the program. 102.4 (b) After notifying the school board under paragraph (a), 102.5 clause (3), the school site decision-making team shall publish a 102.6 notice in a newspaper of general circulation in the district of 102.7 its intent to participate in the program and the date it will 102.8 hold a public hearing about its intended participation. In 102.9 addition to holding the public hearing, the decision-making 102.10 team, for a period of 30 days, must also solicit parent and 102.11 community input regarding its intended participation. 102.12 (c) By January 15, the decision-making team shall 102.13 demonstrate to the school board how the team's plan responds to 102.14 public comment. 102.15 Subd. 3. [RESPONSIBILITIES; REVENUE.] (a) A school site 102.16 decision-making team participating in this program: 102.17 (1) has the control and responsibilities of the school 102.18 board for operating and managing the site after the agreement 102.19 under paragraph (b) is signed, including such responsibilities 102.20 as instructional practices, personnel selection from within the 102.21 district, and staffing assignments for the school; and 102.22 (2) retains control of the revenue and determines its use 102.23 as necessary to operate the school for the school years it 102.24 participates in the program under this section. 102.25 (b) By January 15 of the school year before participating 102.26 in the program, the school site decision-making team must enter 102.27 into a written agreement with the local school board describing 102.28 the control and responsibilities of the decision-making team and 102.29 of the school board. Revenue for a fiscal year received or 102.30 receivable by the district and that the district would expend 102.31 for the particular school site participating in the program is 102.32 allocated to that school site. All other district revenue not 102.33 reserved for other purposes must be proportionately allocated to 102.34 the site based on the site's pupil count. The agreement must 102.35 include provisions describing how the decision-making team and 102.36 school board will resolve disputes over assigned authority and 103.1 responsibilities. The school board members must vote whether to 103.2 authorize the agreement under this paragraph according to 103.3 section 123B.09, subdivision 6. The decision of the school 103.4 board is final. If the school board does not authorize the 103.5 agreement, the school board must publish its decision and 103.6 reasons in a newspaper of general circulation in the district. 103.7 (c) The district must maintain an account for each school 103.8 site participating in the program. 103.9 (d) The school site decision-making team must comply with 103.10 section 13D.04, subdivision 1. 103.11 Subd. 4. [EMPLOYEES.] The employees of the school site 103.12 remain employees of the school district for salary, benefits, 103.13 seniority, retirement, and other personnel issues. Consistent 103.14 with current law and the collective bargaining agreement in 103.15 effect, the school site decision-making team selects employees 103.16 from within the district into licensed and nonlicensed positions 103.17 at the school site, including the position of principal or other 103.18 person having general control and supervision of the school. 103.19 When negotiating a new contract under chapter 179A, an exclusive 103.20 representative and school board must provide for the employees 103.21 of a school site participating in the program under this section. 103.22 Subd. 5. [PERFORMANCE AGREEMENTS.] By March 15 of the 103.23 school year before participating in the program, the school site 103.24 decision-making team shall enter into a performance agreement 103.25 with the school board. The agreement shall include: 103.26 (1) the previous year's baseline information at the site 103.27 regarding student achievement based on: 103.28 (i) aggregated and disaggregated statewide testing data; 103.29 (ii) other nationally normed standardized tests; 103.30 (iii) student attendance; and 103.31 (iv) dropout rates and graduation rates, where applicable; 103.32 (2) the expected levels of improvement in selected areas of 103.33 student performance during the next year; 103.34 (3) how student performance will be measured, including 103.35 assessment procedures required by law and rule; 103.36 (4) status of the school's revenues and expenditures; 104.1 (5) other performance expectations and measures agreed upon 104.2 by the school site and school board; 104.3 (6) the frequency of reporting by the school site to the 104.4 school board; and 104.5 (7) how the performance results will be made available to 104.6 parents and the public. 104.7 The term of an agreement shall be for no more than two 104.8 years. 104.9 The performance agreement must include provisions 104.10 describing how the school board and school site decision-making 104.11 team will resolve disputes over the school's compliance with 104.12 provisions of the agreement. 104.13 If the school site decision-making team and school board 104.14 cannot agree on the provisions of a performance agreement as 104.15 required under this subdivision, either party may request 104.16 assistance from the commissioner of education. The commissioner 104.17 shall provide assistance to the parties to ensure they reach an 104.18 agreement. 104.19 Subd. 6. [TERMINATION OF SITE-BASED PROGRAM AUTHORITY.] If 104.20 a school site fails to meet the agreed upon expectations as 104.21 specified in the performance agreement with the school board for 104.22 two consecutive school years, its authority to participate in 104.23 the program is terminated. 104.24 School sites that have had their authority to participate 104.25 in this program terminated under this subdivision may not 104.26 participate in this program for three years after termination. 104.27 Subd. 7. [REPORTS.] A school site decision-making team 104.28 shall, and its respective school board may, make an annual 104.29 report to the commissioner of education by September 1. The 104.30 reports shall be consistent with the requirements of section 104.31 120B.11, subdivision 5, paragraph (a). 104.32 Subd. 8. [COMMISSIONER'S DUTY.] The commissioner of 104.33 education shall evaluate the effectiveness of the program by 104.34 January 1, 2010. 104.35 Sec. 50. Minnesota Statutes 2004, section 123B.09, 104.36 subdivision 8, is amended to read: 105.1 Subd. 8. [DUTIES.] The board must superintend and manage 105.2 the schools of the district; adopt rules for their organization, 105.3 government, and instruction; keep registers; and prescribe 105.4 textbooks and courses of study. The board may enter into an 105.5 agreement with a postsecondary institution for secondary or 105.6 postsecondary nonsectarian courses to be taught at a secondary 105.7 school, nonsectarian postsecondary institution, or another 105.8 location. The board must not enter into an agreement that 105.9 limits its authority to assign and reassign teachers or 105.10 administrators to the schools in which the teachers will teach 105.11 or the administrators will administer. 105.12 [EFFECTIVE DATE.] This section is effective for agreements 105.13 entered into on or after July 1, 2005. 105.14 Sec. 51. Minnesota Statutes 2004, section 123B.143, 105.15 subdivision 1, is amended to read: 105.16 Subdivision 1. [CONTRACT; DUTIES.] All districts 105.17 maintaining a classified secondary school must employ a 105.18 superintendent who shall be an ex officio nonvoting member of 105.19 the school board. The authority for selection and employment of 105.20 a superintendent must be vested in the board in all cases. An 105.21 individual employed by a board as a superintendent shall have an 105.22 initial employment contract for a period of time no longer than 105.23 three years from the date of employment. Any subsequent 105.24 employment contract must not exceed a period of three years. A 105.25 board, at its discretion, may or may not renew an employment 105.26 contract. A board must not, by action or inaction, extend the 105.27 duration of an existing employment contract. Beginning 365 days 105.28 prior to the expiration date of an existing employment contract, 105.29 a board may negotiate and enter into a subsequent employment 105.30 contract to take effect upon the expiration of the existing 105.31 contract. A subsequent contract must be contingent upon the 105.32 employee completing the terms of an existing contract. If a 105.33 contract between a board and a superintendent is terminated 105.34 prior to the date specified in the contract, the board may not 105.35 enter into another superintendent contract with that same 105.36 individual that has a term that extends beyond the date 106.1 specified in the terminated contract. A board may terminate a 106.2 superintendent during the term of an employment contract for any 106.3 of the grounds specified in section 122A.40, subdivision 9 or 13. 106.4 A superintendent shall not rely upon an employment contract with 106.5 a board to assert any other continuing contract rights in the 106.6 position of superintendent under section 122A.40. 106.7 Notwithstanding the provisions of sections 122A.40, subdivision 106.8 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 106.9 individual shall have a right to employment as a superintendent 106.10 based on order of employment in any district. If two or more 106.11 districts enter into an agreement for the purchase or sharing of 106.12 the services of a superintendent, the contracting districts have 106.13 the absolute right to select one of the individuals employed to 106.14 serve as superintendent in one of the contracting districts and 106.15 no individual has a right to employment as the superintendent to 106.16 provide all or part of the services based on order of employment 106.17 in a contracting district. The superintendent of a district 106.18 shall perform the following: 106.19 (1) visit and supervise the schools in the district, report 106.20 and make recommendations about their condition when advisable or 106.21 on request by the board; 106.22 (2) recommend to the board employment and dismissal of 106.23 teachers; 106.24 (3) superintend school grading practices and examinations 106.25 for promotions; 106.26 (4) make reports required by the commissioner; and 106.27 (5)by January 10, submit an annual report to the106.28commissioner in a manner prescribed by the commissioner, in106.29consultation with school districts, identifying the expenditures106.30that the district requires to ensure an 80 percent student106.31passage rate on the basic standards test taken in the eighth106.32grade, identifying the highest student passage rate the district106.33expects it will be able to attain on the basic standards test by106.34grade 12, the amount of expenditures that the district requires106.35to attain the targeted student passage rate, and how much the106.36district is cross-subsidizing programs with special education,107.1basic skills, and general education revenue; and107.2(6)perform other duties prescribed by the board. 107.3 Sec. 52. Minnesota Statutes 2004, section 123B.36, 107.4 subdivision 1, is amended to read: 107.5 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 107.6 purposes of this subdivision, "home school" means a home school 107.7 as defined in sections 120A.22 and 120A.24 with five or fewer 107.8 students receiving instruction. 107.9 (b) A school board is authorized to require payment of fees 107.10 in the following areas: 107.11 (1) in any program where the resultant product, in excess 107.12 of minimum requirements and at the pupil's option, becomes the 107.13 personal property of the pupil; 107.14 (2) admission fees or charges for extracurricular 107.15 activities, where attendance is optional and where the admission 107.16 fees or charges a student must pay to attend or participate in 107.17 an extracurricular activity is the same for all students, 107.18 regardless of whether the student is enrolled in a public or a 107.19 home school; 107.20 (3) a security deposit for the return of materials, 107.21 supplies, or equipment; 107.22 (4) personal physical education and athletic equipment and 107.23 apparel, although any pupil may personally provide it if it 107.24 meets reasonable requirements and standards relating to health 107.25 and safety established by the board; 107.26 (5) items of personal use or products that a student has an 107.27 option to purchase such as student publications, class rings, 107.28 annuals, and graduation announcements; 107.29 (6) fees specifically permitted by any other statute, 107.30 including but not limited to section 171.05, subdivision 2; 107.31 provided (i) driver education fees do not exceed the actual cost 107.32 to the school and school district of providing driver education, 107.33 and (ii) the driver education courses are open to enrollment to 107.34 persons between the ages of 15 and 18 who reside or attend 107.35 school in the school district; 107.36 (7) field trips considered supplementary to a district 108.1 educational program; 108.2 (8) any authorized voluntary student health and accident 108.3 benefit plan; 108.4 (9) for the use of musical instruments owned or rented by 108.5 the district, a reasonable rental fee not to exceed either the 108.6 rental cost to the district or the annual depreciation plus the 108.7 actual annual maintenance cost for each instrument; 108.8 (10) transportation of pupils to and from extracurricular 108.9 activities conducted at locations other than school, where 108.10 attendance is optional, and transportation of charter school 108.11 students participating in extracurricular activities in their 108.12 resident district under section 123B.49, subdivision 4, 108.13 paragraph (a), which must be charged to the charter school; 108.14 (11) transportation to and from school of pupils living 108.15 within two miles from school and all other transportation 108.16 services not required by law. If a district charges fees for 108.17 transportation of pupils, it must establish guidelines for that 108.18 transportation to ensure that no pupil is denied transportation 108.19 solely because of inability to pay; 108.20 (12) motorcycle classroom education courses conducted 108.21 outside of regular school hours; provided the charge must not 108.22 exceed the actual cost of these courses to the school district; 108.23 (13) transportation to and from postsecondary institutions 108.24 for pupils enrolled under the postsecondary enrollment options 108.25 program under section 123B.88, subdivision 22. Fees collected 108.26 for this service must be reasonable and must be used to reduce 108.27 the cost of operating the route. Families who qualify for 108.28 mileage reimbursement under section 124D.09, subdivision 22, may 108.29 use their state mileage reimbursement to pay this fee. If no 108.30 fee is charged, districts must allocate costs based on the 108.31 number of pupils riding the route. 108.32 [EFFECTIVE DATE.] This section is effective for the 108.33 2005-2006 school year and later. 108.34 Sec. 53. Minnesota Statutes 2004, section 123B.49, 108.35 subdivision 4, is amended to read: 108.36 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 109.1 (a) The board may take charge of and control all extracurricular 109.2 activities of the teachers and children of the public schools in 109.3 the district. Extracurricular activities means all direct and 109.4 personal services for pupils for their enjoyment that are 109.5 managed and operated under the guidance of an adult or staff 109.6 member. The board shall allow all resident pupils receiving 109.7 instruction in a home school as defined in section 123B.36, 109.8 subdivision 1, paragraph (a), and all resident pupils receiving 109.9 instruction in a charter school as defined in section 124D.10 to 109.10 be eligible to fully participate in extracurricular activities 109.11 on the same basis as public school students.enrolled in the 109.12 district's schools. A charter school student must give the 109.13 enrolling charter school and the resident school district at 109.14 least a 30-day notice of the student's intent to participate in 109.15 an extracurricular activity in the resident district. Before a 109.16 charter school student begins participating in an 109.17 extracurricular activity in the resident district, the charter 109.18 school must agree in writing to pay the direct and indirect 109.19 costs attributable to that student that the district may charge 109.20 to the charter school under paragraph (f). A charter school 109.21 student is not eligible to participate in an extracurricular 109.22 activity in the resident district if that extracurricular 109.23 activity is offered by the enrolling charter school or the 109.24 extracurricular activity is not controlled by the high school 109.25 league under chapter 128C. Charter school students 109.26 participating in extracurricular activities must meet the 109.27 academic and student conduct requirements of the resident 109.28 district. The charter school must: 109.29 (1) collect the same information that a district collects 109.30 on a student's eligibility to participate in an extracurricular 109.31 activity; 109.32 (2) transmit that information to the district at least ten 109.33 days before a student begins to participate in the 109.34 extracurricular activity; and 109.35 (3) immediately transmit to the district any additional 109.36 information affecting the student's eligibility. 110.1 (b) Extracurricular activities have all of the following 110.2 characteristics: 110.3 (1) they are not offered for school credit nor required for 110.4 graduation; 110.5 (2) they are generally conducted outside school hours, or 110.6 if partly during school hours, at times agreed by the 110.7 participants, and approved by school authorities; 110.8 (3) the content of the activities is determined primarily 110.9 by the pupil participants under the guidance of a staff member 110.10 or other adult. 110.11 (c) If the board does not take charge of and control 110.12 extracurricular activities, these activities shall be 110.13 self-sustaining with all expenses, except direct salary costs 110.14 and indirect costs of the use of school facilities, met by dues, 110.15 admissions, or other student fund-raising events. The general 110.16 fund must reflect only those salaries directly related to and 110.17 readily identified with the activity and paid by public funds. 110.18 Other revenues and expenditures for extracurricular activities 110.19 must be recorded according to the "Manualof Instructionfor 110.20Uniform Student ActivitiesActivity Fund Accountingfor110.21Minnesota School Districts and Area Vocational-Technical110.22Colleges." Extracurricular activities not under board control 110.23 must have an annual financial audit and must also be audited 110.24 annually for compliance with this section. 110.25 (d) If the board takes charge of and controls 110.26 extracurricular activities, any or all costs of these activities 110.27 may be provided from school revenues and all revenues and 110.28 expenditures for these activities shall be recorded in the same 110.29 manner as other revenues and expenditures of the district. 110.30 (e) If the board takes charge of and controls 110.31 extracurricular activities, the teachers or pupils in the 110.32 district must not participate in such activity, nor shall the 110.33 school name or any allied name be used in connection therewith, 110.34 except by consent and direction of the board. 110.35 (f) School districts may charge charter schools their 110.36 proportional share of the direct and indirect costs of the 111.1 extracurricular activities that are not covered by student fees 111.2 under section 123B.36, subdivision 1, ticket revenues, 111.3 fund-raising efforts, sponsorships, or other income generated 111.4 for those activities for which the charter school is charged. A 111.5 district may charge charter school students the same fees it 111.6 charges enrolled students to participate in an extracurricular 111.7 activity. All charges to a charter school and charter school 111.8 students must be paid when the charter school students are 111.9 selected to participate in the activity. A district is not 111.10 required to provide transportation from the charter school to 111.11 the resident district for a charter school student who 111.12 participates in an extracurricular activity in the resident 111.13 district. 111.14 [EFFECTIVE DATE.] This section is effective for the 111.15 2005-2006 school year and later. 111.16 Sec. 54. Minnesota Statutes 2004, section 124D.095, 111.17 subdivision 8, is amended to read: 111.18 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 111.19 enrolled in an on-line learning course, the department must 111.20 calculate average daily membership and make payments according 111.21 to this subdivision. 111.22 (b) The initial on-line learning average daily membership 111.23 equals 1/12 for each semester course or a proportionate amount 111.24 for courses of different lengths. The adjusted on-line learning 111.25 average daily membership equals the initial on-line learning 111.26 average daily membership times .88. 111.27 (c) No on-line learning average daily membership shall be 111.28 generated if: (1) the student does not complete the on-line 111.29 learning course, or (2) the student is enrolled in on-line 111.30 learning provided by the enrolling districtand the student was111.31enrolled in a Minnesota public school for the school year before111.32the school year in which the student first enrolled in on-line111.33learning. 111.34 (d) On-line learning average daily membership under this 111.35 subdivision for a student currently enrolled in a Minnesota 111.36 public schooland who was enrolled in a Minnesota public school112.1for the school year before the school year in which the student112.2first enrolled in on-line learningshall be used only for 112.3 computing average daily membership according to section 126C.05, 112.4 subdivision 19, paragraph (a), clause (ii), and for computing 112.5 on-line learning aid according to section126C.24124D.096. 112.6(e) On-line learning average daily membership under this112.7subdivision for students not included in paragraph (c) or (d)112.8shall be used only for computing average daily membership112.9according to section 126C.05, subdivision 19, paragraph (a),112.10clause (ii), and for computing payments under paragraphs (f) and112.11(g).112.12(f) Subject to the limitations in this subdivision, the112.13department must pay an on-line learning provider an amount equal112.14to the product of the adjusted on-line learning average daily112.15membership for students under paragraph (e) times the student112.16grade level weighting under section 126C.05, subdivision 1,112.17times the formula allowance.112.18(g) The department must pay each on-line learning provider112.19100 percent of the amount in paragraph (f) within 45 days of112.20receiving final enrollment and course completion information112.21each quarter or semester.112.22 [EFFECTIVE DATE.] This section is effective for revenue for 112.23 fiscal year 2006. 112.24 Sec. 55. Minnesota Statutes 2004, section 124D.10, 112.25 subdivision 3, is amended to read: 112.26 Subd. 3. [SPONSOR.] (a) A school board; intermediate 112.27 school district school board; education district organized under 112.28 sections 123A.15 to 123A.19; charitable organization under 112.29 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 112.30 member of the Minnesota Council of Nonprofits or the Minnesota 112.31 Council on Foundations, registered with the attorney general's 112.32 office, and reports an end-of-year fund balance of at least 112.33 $2,000,000; Minnesota private college that grants two- or 112.34 four-year degrees and is registered with the Higher Education 112.35 Services Office under chapter 136A; community college, state 112.36 university, or technical college, governed by the Board of 113.1 Trustees of the Minnesota State Colleges and Universities; or 113.2 the University of Minnesota may sponsor one or more charter 113.3 schools. 113.4 (b) A nonprofit corporation subject to chapter 317A, 113.5 described in section 317A.905, and exempt from federal income 113.6 tax under section 501(c)(6) of the Internal Revenue Code of 113.7 1986, may sponsor one or more charter schools if the charter 113.8 school has operated for at least three years under a different 113.9 sponsor and if the nonprofit corporation has existed for at 113.10 least 25 years. 113.11 (c) The commissioner of education may approve up to five 113.12 charitable organizations under section 501(c)(3) of the Internal 113.13 Revenue Code of 1986 that sponsor charter schools as their sole 113.14 charitable purpose. Eligible charitable organizations 113.15 interested in being approved as a sponsor under this paragraph 113.16 must submit a proposal to the commissioner that includes: 113.17 (1) the articles, bylaws, and initial membership of the 113.18 charitable organization's board of directors; 113.19 (2) financial information consistent with section 309.53, 113.20 subdivision 3; 113.21 (3) a description of how the charitable organization plans 113.22 to realize its principle charitable purpose; and 113.23 (4) other information requested by the commissioner. 113.24 A charitable organization that is approved as a sponsor 113.25 under this paragraph annually must report to the commissioner in 113.26 the form and manner the commissioner determines. The report 113.27 must describe the charter schools authorized by the charitable 113.28 organization, the effectiveness of those charter schools in 113.29 promoting student achievement, and the governance structure of 113.30 those charter schools, and also must include other information 113.31 requested by the commissioner. An approved charitable 113.32 organization may sponsor one or more charter schools. The 113.33 commissioner may withdraw the approval of a charitable 113.34 organization to sponsor a charter school under this paragraph if 113.35 the commissioner determines that the charitable organization 113.36 fails to meet generally accepted standards of fiscal management, 114.1 violates the law, or shows other good cause. The commissioner's 114.2 determination is final. When the commissioner withdraws the 114.3 approval of a charitable organization to sponsor a charter 114.4 school, the commissioner may approve the decision of a different 114.5 eligible sponsor to authorize the charter school or may apply 114.6 subdivision 24 governing student enrollment when a charter 114.7 school contract is not renewed or terminated. 114.8 [EFFECTIVE DATE.] This section is effective the day 114.9 following final enactment. 114.10 Sec. 56. Minnesota Statutes 2004, section 124D.10, 114.11 subdivision 4, is amended to read: 114.12 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 114.13 authorize one or more licensed teachers under section 122A.18, 114.14 subdivision 1, to operate a charter school subject to approval 114.15 by the commissioner. A board must vote on charter school 114.16 application for sponsorship no later than 90 days after 114.17 receiving the application. After 90 days, the applicant may 114.18 apply to the commissioner. If a board elects not to sponsor a 114.19 charter school, the applicant may appeal the board's decision to 114.20 the commissioner. The commissionerwho may elect tosponsor the114.21charter school orassist the applicant in finding an eligible 114.22 sponsor. The school must be organized and operated as a 114.23 cooperative under chapter 308A or nonprofit corporation under 114.24 chapter 317A and the provisions under the applicable chapter 114.25 shall apply to the school except as provided in this section. 114.26 Notwithstanding sections 465.717 and 465.719, a school district 114.27 may create a corporation for the purpose of creating a charter 114.28 school. 114.29 (b) Before the operators may form and operate a school, the 114.30 sponsor must file an affidavit with the commissioner stating its 114.31 intent to authorize a charter school. The affidavit must state 114.32 the terms and conditions under which the sponsor would authorize 114.33 a charter school and how the sponsor intends to oversee the 114.34 fiscal and student performance of the charter school and to 114.35 comply with the terms of the written contract between the 114.36 sponsor and the charter school board of directors under 115.1 subdivision 6. The commissioner must approve or disapprove the 115.2 sponsor's proposed authorization within6090 days of receipt of 115.3 the affidavit. Failure to obtain commissioner approval 115.4 precludes a sponsor from authorizing the charter school that was 115.5 the subject of the affidavit. 115.6 (c) The operators authorized to organize and operate a 115.7 school, before entering into a contract or other agreement for 115.8 professional or other services, goods, or facilities, must 115.9 incorporate as a cooperative under chapter 308A or as a 115.10 nonprofit corporation under chapter 317A and must establish a 115.11 board of directors composed of at least five members until a 115.12 timely election for members of the charter school board of 115.13 directors is held according to the school's articles and 115.14 bylaws. A charter school board of directors must be composed of 115.15 at least five members. Any staff members who are employed at 115.16 the school, including teachers providing instruction under a 115.17 contract with a cooperative, and all parents of children 115.18 enrolled in the school may participate in the election for 115.19 members of the school's board of directors. Licensed teachers 115.20 employed at the school, including teachers providing instruction 115.21 under a contract with a cooperative, must be a majority of the 115.22 members of the board of directors before the school completes 115.23 its third year of operation, unless the commissioner waives the 115.24 requirement for a majority of licensed teachers on the board. 115.25 Board of director meetings must comply with chapter 13D. 115.26 (d) The granting or renewal of a charter by a sponsoring 115.27 entity must not be conditioned upon the bargaining unit status 115.28 of the employees of the school. 115.29 (e) A sponsor may authorize the operators of a charter 115.30 school to expand the operation of the charter school to 115.31 additional sites or to add additional grades at the school 115.32 beyond those described in the sponsor's application as approved 115.33 by the commissioner only after submitting a supplemental 115.34 application to the commissioner in a form and manner prescribed 115.35 by the commissioner. The supplemental application must provide 115.36 evidence that: 116.1 (1) the expansion of the charter school is supported by 116.2 need and projected enrollment; 116.3 (2) the charter school is fiscally sound; 116.4 (3) the sponsor supports the expansion; and 116.5 (4) the building of the additional site meets all health 116.6 and safety requirements to be eligible for lease aid. 116.7 (f) The commissioner annually must provide timely financial 116.8 management training to newly elected members of a charter school 116.9 board of directors and ongoing training to other members of a 116.10 charter school board of directors. Training must address ways 116.11 to: 116.12 (1) proactively assess opportunities for a charter school 116.13 to maximize all available revenue sources; 116.14 (2) establish and maintain complete, auditable records for 116.15 the charter school; 116.16 (3) establish proper filing techniques; 116.17 (4) document formal actions of the charter school, 116.18 including meetings of the charter school board of directors; 116.19 (5) properly manage and retain charter school and student 116.20 records; 116.21 (6) comply with state and federal payroll record-keeping 116.22 requirements; and 116.23 (7) address other similar factors that facilitate 116.24 establishing and maintaining complete records on the charter 116.25 school's operations. 116.26 [EFFECTIVE DATE.] This section is effective for the 116.27 2005-2006 school year and later. 116.28 Sec. 57. Minnesota Statutes 2004, section 124D.10, 116.29 subdivision 6, is amended to read: 116.30 Subd. 6. [CONTRACT.] The sponsor's authorization for a 116.31 charter school must be in the form of a written contract signed 116.32 by the sponsor and the board of directors of the charter 116.33 school. The contract must be completed within 90 days of the 116.34 commissioner's approval of the sponsor's proposed authorization. 116.35 The contract for a charter school must be in writing and contain 116.36 at least the following: 117.1 (1) a description of a program that carries out one or more 117.2 of the purposes in subdivision 1; 117.3 (2) specific outcomes pupils are to achieve under 117.4 subdivision 10; 117.5 (3) admission policies and procedures; 117.6 (4) management and administration of the school; 117.7 (5) requirements and procedures for program and financial 117.8 audits; 117.9 (6) how the school will comply with subdivisions 8, 13, 16, 117.10 and 23; 117.11 (7) assumption of liability by the charter school; 117.12 (8) types and amounts of insurance coverage to be obtained 117.13 by the charter school; 117.14 (9) the term of the contract, which may be up to three 117.15 years;and117.16 (10) if the board of directors or the operators of the 117.17 charter school provide special instruction and services for 117.18 children with a disability under sections 125A.03 to 125A.24, 117.19 and 125A.65, a description of the financial parameters within 117.20 which the charter school will operate to provide the special 117.21 instruction and services to children with a disability; and 117.22 (11) the process and criteria the sponsor intends to use to 117.23 monitor and evaluate the fiscal and student performance of the 117.24 charter school, consistent with subdivision 15. 117.25 [EFFECTIVE DATE.] This section is effective for the 117.26 2005-2006 school year and later. 117.27 Sec. 58. Minnesota Statutes 2004, section 124D.10, 117.28 subdivision 8, is amended to read: 117.29 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 117.30 school shall meet all applicable state and local health and 117.31 safety requirements. 117.32 (b) A school sponsored by a school board may be located in 117.33 any district, unless the school board of the district of the 117.34 proposed location disapproves by written resolution. 117.35 (c) A charter school must be nonsectarian in its programs, 117.36 admission policies, employment practices, and all other 118.1 operations. A sponsor may not authorize a charter school or 118.2 program that is affiliated with a nonpublic sectarian school or 118.3 a religious institution. 118.4 (d) Charter schools must not be used as a method of 118.5 providing education or generating revenue for students who are 118.6 being homeschooled. 118.7 (e) The primary focus of a charter school must be to 118.8 provide a comprehensive program of instruction for at least one 118.9 grade or age group from five through 18 years of age. 118.10 Instruction may be provided to people younger than five years 118.11 and older than 18 years of age. 118.12 (f) A charter school may not charge tuition. 118.13 (g) A charter school is subject to and must comply with 118.14 chapter 363A and section 121A.04. 118.15 (h) A charter school is subject to and must comply with the 118.16 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 118.17 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 118.18 (i) A charter school is subject to the same financial 118.19 audits, audit procedures, and audit requirements as a district. 118.20 Audits must be conducted in compliance with generally accepted 118.21 governmental auditing standards, the Federal Single Audit Act, 118.22 if applicable, and section 6.65. A charter school is subject to 118.23 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118.24 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 118.25 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 118.26 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 118.27 comply with the requirements of sections 123B.75 to 123B.83, 118.28 except to the extent deviations are necessary because of the 118.29 program at the school. Deviations must be approved by the 118.30 commissioner. The Department of Education, state auditor, or 118.31 legislative auditor may conduct financial, program, or 118.32 compliance audits. A charter school determined to be in 118.33 statutory operating debt under sections 123B.81 to 123B.83 must 118.34 submit a plan under section 123B.81, subdivision 4. 118.35 (j) A charter school is a district for the purposes of tort 118.36 liability under chapter 466. 119.1 (k) A charter school must comply with sections 13.32; 119.2 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 119.3 and 5. 119.4 (l) A charter school is subject to the Pledge of Allegiance 119.5 requirement under section 121A.11, subdivision 3. 119.6 (m) A charter school is subject to sections 123B.36, 119.7 subdivision 1, paragraph (b), clause (10), and 123B.49, 119.8 subdivision 4, paragraphs (a) and (f), when its students 119.9 participate in extracurricular activities in their resident 119.10 district. 119.11 (n) Charter school board of director open meeting 119.12 requirements are governed according to subdivision 4. 119.13 [EFFECTIVE DATE.] This section is effective for the 119.14 2005-2006 school year and later. 119.15 Sec. 59. Minnesota Statutes 2004, section 124D.10, 119.16 subdivision 15, is amended to read: 119.17 Subd. 15. [REVIEW AND COMMENT.] (a) The department must 119.18 review and comment on the evaluation, by the sponsor, of the 119.19 performance of a charter school before the charter school's 119.20 contract is renewed for another contract term. The sponsor must 119.21 submit to the commissioner timely information for the review and 119.22 comment. 119.23 (b) A sponsor shall monitor and evaluate the fiscal and 119.24 student performance of the school, and may for this purpose 119.25 annually assess a charter school: (1) in its first, second, or 119.26 third year of operation up to $30 per student up to a maximum of 119.27 $10,000; and (2) in its fourth or a subsequent year of operation 119.28 up to $10 per student up to a maximum of $3,500.The119.29information for the review and comment shall be reported by the119.30sponsor to the commissioner of education in a timely manner.119.31 [EFFECTIVE DATE.] This section is effective for the 119.32 2005-2006 school year and later. 119.33 Sec. 60. Minnesota Statutes 2004, section 124D.10, 119.34 subdivision 23, is amended to read: 119.35 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 119.36 SCHOOL CONTRACT.] (a) The duration of the contract with a 120.1 sponsor must be for the term contained in the contract according 120.2 to subdivision 6. The sponsor may or may not renew a contract 120.3 at the end of the term for any ground listed in paragraph (b). 120.4 A sponsor may unilaterally terminate a contract during the term 120.5 of the contract for any ground listed in paragraph (b). At 120.6 least 60 days before not renewing or terminating a contract, the 120.7 sponsor shall notify the board of directors of the charter 120.8 school of the proposed action in writing. The notice shall 120.9 state the grounds for the proposed action in reasonable detail 120.10 and that the charter school's board of directors may request in 120.11 writing an informal hearing before the sponsor within 14 days of 120.12 receiving notice of nonrenewal or termination of the contract. 120.13 Failure by the board of directors to make a written request for 120.14 a hearing within the 14-day period shall be treated as 120.15 acquiescence to the proposed action. Upon receiving a timely 120.16 written request for a hearing, the sponsor shall give reasonable 120.17 notice to the charter school's board of directors of the hearing 120.18 date. The sponsor shall conduct an informal hearing before 120.19 taking final action. The sponsor shall take final action to 120.20 renew or not renew a contract by the last day of classes in the 120.21 school year. If the sponsor is a local board, the school's 120.22 board of directors may appeal the sponsor's decision to the 120.23 commissioner. 120.24 (b) A contract may be terminated or not renewed upon any of 120.25 the following grounds: 120.26 (1) failure to meet the requirements for pupil performance 120.27 contained in the contract; 120.28 (2) failure to meet generally accepted standards of fiscal 120.29 management; 120.30 (3) violations of law; or 120.31 (4) other good cause shown. 120.32 If a contract is terminated or not renewed under this 120.33 paragraph, the school must be dissolved according to the 120.34 applicable provisions of chapter 308A or 317A, except when the 120.35 commissioner approves the decision of a different eligible 120.36 sponsor to authorize the charter school. 121.1 (c) If at the end of a contract term, either the sponsor or 121.2 the charter school board of directors wants to voluntarily 121.3 terminate the contract, a change in sponsors is allowed if the 121.4 commissioner approves the decision of a different eligible 121.5 sponsor to authorize the charter school. The party intending to 121.6 terminate the contract must notify the other party and the 121.7 commissioner of its intent at least 90 days before the date on 121.8 which the contract ends. The sponsor that is a party to the 121.9 existing contract at least must inform the approved different 121.10 eligible sponsor about the fiscal and student performance of the 121.11 school. If no different eligible sponsor is approved, the 121.12 school must be dissolved according to applicable law and the 121.13 terms of the contract. 121.14 (d) The commissioner, after providing reasonable notice to 121.15 the board of directors of a charter school and the existing 121.16 sponsor, and after providing an opportunity for a public 121.17 hearing, may terminate the existing sponsorial relationship if 121.18 the charter school has a history of: 121.19 (1) financial mismanagement; or 121.20 (2) repeated violations of the law. 121.21 [EFFECTIVE DATE.] This section is effective for the 121.22 2005-2006 school year and later. 121.23 Sec. 61. Minnesota Statutes 2004, section 124D.11, 121.24 subdivision 1, is amended to read: 121.25 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 121.26 education revenue must be paid to a charter school as though it 121.27 were a district. The general education revenue for each 121.28 adjusted marginal cost pupil unit is the state average general 121.29 education revenue per pupil unit, plus the referendum 121.30 equalization aid allowance in the pupil's district of residence, 121.31 minus an amount equal to the product of the formula allowance 121.32 according to section 126C.10, subdivision 2, times .0485, 121.33 calculated without basic skills revenue, extended time revenue, 121.34 alternative compensation revenue, transition revenue, and 121.35 transportation sparsity revenue, plus basic skills revenue, 121.36 extended time revenue, basic alternative compensation aid 122.1 according to section 126C.10, subdivision 34, and transition 122.2 revenue as though the school were a school district. The 122.3 general education revenue for each extended time marginal cost 122.4 pupil unit equals $4,378. 122.5 (b) Notwithstanding paragraph (a), for charter schools in 122.6 the first year of operation, general education revenue shall be 122.7 computed using the number of adjusted pupil units in the current 122.8 fiscal year. 122.9 Sec. 62. Minnesota Statutes 2004, section 124D.11, 122.10 subdivision 2, is amended to read: 122.11 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 122.12 must be paid to a charter school that provides transportation 122.13 services according to section 124D.10, subdivision 16, according 122.14 to this subdivision. Transportation aid shall equal 122.15 transportation revenue. 122.16 In addition to the revenue under subdivision 1, a charter 122.17 school providing transportation services must receive general 122.18 education aidfor each pupil unitequal to the sum of the 122.19 product of (i) an amount equal to the product of the formula 122.20 allowance according to section 126C.10, subdivision 2, times 122.21 .0485, plus the transportation sparsity allowance for the school 122.22 district in which the charter school is located times (ii) the 122.23 adjusted marginal cost pupil units, plus the product of $223 122.24 times the extended time marginal cost pupil units. 122.25 Sec. 63. Minnesota Statutes 2004, section 124D.11, 122.26 subdivision 6, is amended to read: 122.27 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 122.28 school is eligible to receive other aids, grants, and revenue 122.29 according to chapters 120A to 129C, as though it were a district. 122.30 (b) Notwithstanding paragraph (a), a charter school may not 122.31 receive aid, a grant, or revenue if a levy, other than a levy 122.32 required by sections 125A.76 or 126C.10, is required to obtain 122.33 the money, or if the aid, grant, or revenue is a replacement of 122.34 levy revenue, except as otherwise provided in this section. 122.35 (c) Federal aid received by the state must be paid to the 122.36 school, if it qualifies for the aid as though it were a school 123.1 district. 123.2 (d) A charter school may receive money from any source for 123.3 capital facilities needs. In the year-end report to the 123.4 commissioner of education, the charter school shall report the 123.5 total amount of funds received from grants and other outside 123.6 sources. 123.7 Sec. 64. [124D.4531] [CAREER AND TECHNICAL LEVY.] 123.8 Subdivision 1. [CAREER AND TECHNICAL LEVY.] (a) A district 123.9 with a career and technical program approved under this section 123.10 for the fiscal year in which the levy is certified may levy an 123.11 amount equal to the lesser of: 123.12 (1) $80 times the district's average daily membership in 123.13 grades 10 through 12 for the fiscal year in which the levy is 123.14 certified; or 123.15 (2) 25 percent of approved expenditures in the fiscal year 123.16 in which the levy is certified for the following: 123.17 (i) salaries paid to essential, licensed personnel 123.18 providing direct instructional services to students in that 123.19 fiscal year for services rendered in the district's approved 123.20 career and technical education programs; 123.21 (ii) contracted services provided by a public or private 123.22 agency other than a Minnesota school district or cooperative 123.23 center under subdivision 7; 123.24 (iii) necessary travel between instructional sites by 123.25 licensed career and technical education personnel; 123.26 (iv) necessary travel by licensed career and technical 123.27 education personnel for vocational student organization 123.28 activities held within the state for instructional purposes; 123.29 (v) curriculum development activities that are part of a 123.30 five-year plan for improvement based on program assessment; 123.31 (vi) necessary travel by licensed career and technical 123.32 education personnel for noncollegiate credit-bearing 123.33 professional development; and 123.34 (vii) specialized vocational instructional supplies. 123.35 (b) Up to ten percent of a district's career and technical 123.36 levy may be spent on equipment purchases. Districts using the 124.1 career and technical levy for equipment purchases must report to 124.2 the department on the improved learning opportunities for 124.3 students that result from the investment in equipment. 124.4 (c) The district must recognize the full amount of this 124.5 levy as revenue for the fiscal year in which it is certified. 124.6 Subd. 2. [ALLOCATION FROM COOPERATIVE CENTERS AND 124.7 INTERMEDIATE DISTRICTS.] For purposes of this section, a 124.8 cooperative center or an intermediate district must allocate its 124.9 approved expenditures for career and technical education 124.10 programs among participating districts. 124.11 Subd. 3. [LEVY GUARANTEE.] Notwithstanding subdivision 1, 124.12 the career and technical education levy for a district is not 124.13 less than the lesser of: 124.14 (1) the district's career and technical education levy 124.15 authority for the previous fiscal year; or 124.16 (2) 100 percent of the approved expenditures for career and 124.17 technical programs included in subdivision 1, paragraph (b), for 124.18 the fiscal year in which the levy is certified. 124.19 Subd. 4. [COMPLIANCE WITH RULES.] (a) Levy authority must 124.20 be granted under this section only for services rendered or for 124.21 costs incurred in career and technical education programs 124.22 approved by the commissioner and operated in accordance with 124.23 rules adopted by the commissioner. The rules must not require 124.24 any minimum number of administrative staff, any minimum period 124.25 of coordination time or extended employment for career and 124.26 technical education personnel, or the availability of vocational 124.27 student activities or organizations for a career and technical 124.28 education program to qualify for this levy. Levy authority 124.29 shall be granted only for services rendered and for costs 124.30 incurred by essential, licensed personnel, or approved 124.31 paraprofessionals who meet the requirements for licensure 124.32 pursuant to the rules of the Minnesota Board of Teaching. 124.33 For the purposes of this paragraph, "licensed personnel" 124.34 means persons holding a valid career and technical license 124.35 issued by the commissioner. If an average of five or fewer 124.36 secondary full-time equivalent students are enrolled per teacher 125.1 in an approved postsecondary program at Intermediate District 125.2 No. 287, 916, or 917, "licensed personnel" means persons holding 125.3 a valid vocational license issued by the commissioner or the 125.4 Board of Trustees of the Minnesota State Colleges and 125.5 Universities. 125.6 (b) Notwithstanding section 127A.42, the commissioner may 125.7 modify or withdraw the program or levy authority under this 125.8 section without proceeding under section 127A.42, at any time. 125.9 To do so, the commissioner must determine that the program does 125.10 not comply with rules of the Department of Education or that any 125.11 facts concerning the program or its budget differ from the facts 125.12 in the district's approved application. 125.13 Subd. 5. [LIMIT.] The commissioner may reduce the levy 125.14 under this section for a career and technical education program 125.15 that receives funds from any other source. A district or center 125.16 must not receive a total amount of levy authority pursuant to 125.17 this section which, when added to funds from other sources, will 125.18 provide the program an amount for salaries and travel which 125.19 exceeds 100 percent of the amount of its expenditures for 125.20 salaries and travel in the program. 125.21 Subd. 6. [LEVY FOR CONTRACTED SERVICES.] In addition to 125.22 the provisions of subdivisions 4 and 5, a school district or 125.23 cooperative center may contract with a public or private agency 125.24 other than a Minnesota school district or cooperative center for 125.25 the provision of career and technical education services. The 125.26 commissioner must adopt rules relating to program approval 125.27 procedures and criteria for these contracts and levy authority 125.28 must be granted only for contracts approved by the 125.29 commissioner. The district or cooperative center contracting 125.30 for these services must be construed to be providing the 125.31 services. 125.32 Subd. 7. [DISTRICT REPORTS.] Each district or cooperative 125.33 center must report data to the department for all career and 125.34 technical education programs as required by the department to 125.35 implement the career and technical levy formula. 125.36 [EFFECTIVE DATE.] This section is effective for taxes 126.1 payable in 2008. 126.2 Sec. 65. Minnesota Statutes 2004, section 124D.66, 126.3 subdivision 3, is amended to read: 126.4 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 126.5 programs may provide direct instructional services to an 126.6 eligible pupil, or a group of eligible pupils, under the 126.7 following conditions in paragraphs (b) to (d). 126.8 (b) Instruction may be provided at one or more grade levels 126.9 from kindergarten to grade 8 and for students in grades 9 126.10 through 12 who were enrolled in grade 8 before the 2005-2006 126.11 school year and have failed the basic skills tests, or who were 126.12 enrolled in grade 8 in the 2005-2006 school year and later and 126.13 have failed the Minnesota Comprehensive Assessments (MCA-IIs) in 126.14 reading, mathematics, or writing as required for high school 126.15 graduation under section 120B.02. If an assessment of pupils' 126.16 needs within a district demonstrates that the eligible pupils in 126.17 grades kindergarten to grade 8 are being appropriately served, a 126.18 district may serve eligible pupils in grades 9 to 12. 126.19 (c) Instruction must be provided under the supervision of 126.20 the eligible pupil's regular classroom teacher. Instruction may 126.21 be provided by the eligible pupil's classroom teacher, by 126.22 another teacher, by a team of teachers, or by an education 126.23 assistant or aide. A special education teacher may provide 126.24 instruction, but instruction that is provided under this section 126.25 is not eligible for aid under section 125A.76. 126.26 (d) The instruction that is provided must differ from the 126.27 initial instruction the pupil received in the regular classroom 126.28 setting. The instruction may differ by presenting different 126.29 curriculum than was initially presented in the regular classroom 126.30 or by presenting the same curriculum: 126.31 (1) at a different rate or in a different sequence than it 126.32 was initially presented; 126.33 (2) using different teaching methods or techniques than 126.34 were used initially; or 126.35 (3) using different instructional materials than were used 126.36 initially. 127.1 Sec. 66. Minnesota Statutes 2004, section 124D.74, 127.2 subdivision 1, is amended to read: 127.3 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 127.4 education programs are programs in public elementary and 127.5 secondary schools, nonsectarian nonpublic, community, 127.6 tribal, charter, or alternative schools enrolling American 127.7 Indian children designed to: 127.8 (1) support postsecondary preparation for pupils; 127.9 (2) support the academic achievement of American Indian 127.10 students with identified focus to improve reading and mathematic 127.11 skills; 127.12 (3) make the curriculum more relevant to the needs, 127.13 interests, and cultural heritage of American Indian pupils; 127.14 (4) provide positive reinforcement of the self-image of 127.15 American Indian pupils; 127.16 (5) develop intercultural awareness among pupils, parents, 127.17 and staff; and 127.18 (6) supplement, not supplant, state and federal educational 127.19 and cocurricular programs. 127.20 Program components may include: development of support 127.21 components for students in the areas of academic achievement, 127.22 retention, and attendance; development of support components for 127.23 staff, including in-service training and technical assistance in 127.24 methods of teaching American Indian pupils; research projects, 127.25 including experimentation with and evaluation of methods of 127.26 relating to American Indian pupils; provision of personal and 127.27 vocational counseling to American Indian pupils; modification of 127.28 curriculum, instructional methods, and administrative procedures 127.29 to meet the needs of American Indian pupils; and supplemental 127.30 instruction in American Indian language, literature, history, 127.31 and culture. Districts offering programs may make contracts for 127.32 the provision of program components by establishing cooperative 127.33 liaisons with tribal programs and American Indian social service 127.34 agencies. These programs may also be provided as components of 127.35 early childhood and family education programs. 127.36 Sec. 67. Minnesota Statutes 2004, section 124D.81, 128.1 subdivision 1, is amended to read: 128.2 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 128.3 commissioner of education must make grants to no fewer than six 128.4 American Indian education programs. At least three programs 128.5 must be in urban areas and at least three must be on or near 128.6 reservations. The board of a local district, a participating 128.7 school or a group of boards may develop a proposal for grants in 128.8 support of American Indian education programs. Proposals may 128.9 provide for contracts for the provision of program components by 128.10 nonsectarian nonpublic, community, tribal, charter, or 128.11 alternative schools. The commissioner shall prescribe the form 128.12 and manner of application for grants, and no grant shall be made 128.13 for a proposal not complying with the requirements of sections 128.14 124D.71 to 124D.82.The commissioner must submit all proposals128.15to the state Advisory Committee on American Indian Education128.16Programs for its recommendations concerning approval,128.17modification, or disapproval and the amounts of grants to128.18approved programs.128.19 Sec. 68. Minnesota Statutes 2004, section 124D.84, 128.20 subdivision 1, is amended to read: 128.21 Subdivision 1. [AWARDS.] The commissioner, with the advice128.22and counsel of the Minnesota Indian Education Committee,may 128.23 award scholarships to any Minnesota resident student who is of 128.24 one-fourth or more Indian ancestry, who has applied for other 128.25 existing state and federal scholarship and grant programs, and 128.26 who, in the opinion of the commissioner, has the capabilities to 128.27 benefit from further education. Scholarships must be for 128.28 accredited degree programs in accredited Minnesota colleges or 128.29 universities or for courses in accredited Minnesota business, 128.30 technical, or vocational schools. Scholarships may also be 128.31 given to students attending Minnesota colleges that are in 128.32 candidacy status for obtaining full accreditation, and are 128.33 eligible for and receiving federal financial aid programs. 128.34 Students are also eligible for scholarships when enrolled as 128.35 students in Minnesota higher education institutions that have 128.36 joint programs with other accredited higher education 129.1 institutions. Scholarships shall be used to defray the total 129.2 cost of education including tuition, incidental fees, books, 129.3 supplies, transportation, other related school costs and the 129.4 cost of board and room and shall be paid directly to the college 129.5 or school concerned where the student receives federal financial 129.6 aid. The total cost of education includes all tuition and fees 129.7 for each student enrolling in a public institution and the 129.8 portion of tuition and fees for each student enrolling in a 129.9 private institution that does not exceed the tuition and fees at 129.10 a comparable public institution. Each student shall be awarded 129.11 a scholarship based on the total cost of the student's education 129.12 and a federal standardized need analysis. Applicants are 129.13 encouraged to apply for all other sources of financial aid.The129.14amount and type of each scholarship shall be determined through129.15the advice and counsel of the Minnesota Indian education129.16committee.129.17 When an Indian student satisfactorily completes the work 129.18 required by a certain college or school in a school year the 129.19 student is eligible for additional scholarships, if additional 129.20 training is necessary to reach the student's educational and 129.21 vocational objective. Scholarships may not be given to any 129.22 Indian student for more than five years of studywithout special129.23recommendation of the Minnesota Indian Education Committee. 129.24 Sec. 69. Minnesota Statutes 2004, section 126C.457, is 129.25 amended to read: 129.26 126C.457 [CAREER AND TECHNICAL LEVY.] 129.27 For taxes payable in 2006 and 2007, a school district may 129.28 levy an amount equal to the greater of (1) $10,000, or (2) the 129.29 district's fiscal year 2001 entitlement for career and technical 129.30 aid under Minnesota Statutes 2000, section 124D.453. The 129.31 district must recognize the full amount of this levy as revenue 129.32 for the fiscal year in which it is certified. Revenue received 129.33 under this section must be reserved and used only for career and 129.34 technical programs. 129.35 Sec. 70. Minnesota Statutes 2004, section 127A.47, 129.36 subdivision 8, is amended to read: 130.1 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 130.2 for districts must be adjusted for each pupil attending a 130.3 charter school under section 124D.10. The adjustments must be 130.4 made according to this subdivision. 130.5 (b) General education aid paid to a district in which a 130.6 charter school not providing transportation according to section 130.7 124D.10, subdivision 16, is located must be increased by an 130.8 amount equal to the sum of: 130.9 (1) the product of:(1)(i) the sum of an amount equal to 130.10 the product of the formula allowance according to section 130.11 126C.10, subdivision 2, times .0485, plus the transportation 130.12 sparsity allowance for the district; times(2)(ii) the adjusted 130.13 marginal cost pupil units attributable to the pupil; plus 130.14 (2) the product of $223 times the extended time marginal 130.15 cost pupil units attributable to the pupil. 130.16 Sec. 71. Minnesota Statutes 2004, section 128C.12, 130.17 subdivision 1, is amended to read: 130.18 Subdivision 1. [DUES AND EVENTS REVENUE.] The state 130.19 auditor annually must examine the accounts of, and audit all 130.20 money paid to, the State High School League by its members. The 130.21 audit must include financial and compliance issues. The state 130.22 auditor must also audit all money derived from any event 130.23 sponsored by the league.League audits must include audits of130.24 The state auditor may audit administrative regions of the 130.25 league. Theleague and itsleague's administrative regions 130.26 maynotcontract with private auditors. The scope of the state 130.27 auditor's examinations of the league must be agreed upon by the 130.28 board and the state auditor, provided that all requirements of 130.29 this section must be met. 130.30 [EFFECTIVE DATE.] This section is effective for the 130.31 2005-2006 school year and thereafter. 130.32 Sec. 72. [129C.105] [BOARD MEETINGS BY TELEPHONE OR OTHER 130.33 ELECTRONIC MEANS.] 130.34 (a) Notwithstanding section 13D.01 and if complying with 130.35 section 13D.02 is impractical, the board for the Perpich Center 130.36 for Arts Education may conduct a meeting of its members by 131.1 telephone or other electronic means so long as the following 131.2 conditions are met: 131.3 (1) all members of the board participating in the meeting, 131.4 wherever their physical location, can hear one another and all 131.5 discussion and testimony; 131.6 (2) members of the public present at the regular meeting 131.7 location of the board can hear all discussion and testimony and 131.8 all votes of members of the board; 131.9 (3) at least one member of the board is physically present 131.10 at the regular meeting location; and 131.11 (4) all votes are conducted by roll call, so each member's 131.12 vote on each issue can be identified and recorded. 131.13 (b) Each member of the board participating in a meeting by 131.14 telephone or other electronic means is considered present at the 131.15 meeting for purposes of determining a quorum and participating 131.16 in all proceedings. 131.17 (c) If telephone or other electronic means is used to 131.18 conduct a meeting, the board, to the extent practical, shall 131.19 allow a person to monitor the meeting electronically from a 131.20 remote location. The board may require the person making such a 131.21 connection to pay for documented marginal costs that the board 131.22 incurs as a result of the additional connection. 131.23 (d) If telephone or other electronic means is used to 131.24 conduct a regular, special, or emergency meeting, the board 131.25 shall provide notice of the regular meeting location, of the 131.26 fact that some members may participate by telephone or other 131.27 electronic means, and of the provisions of paragraph (c). The 131.28 timing and method of providing notice is governed by section 131.29 13D.04. 131.30 [EFFECTIVE DATE.] This section is effective the day 131.31 following final enactment. 131.32 Sec. 73. Minnesota Statutes 2004, section 171.04, 131.33 subdivision 1, is amended to read: 131.34 Subdivision 1. [PERSONS NOT ELIGIBLE.] The department 131.35 shall not issue a driver's license: 131.36 (1) to any person under 18 years unless: 132.1 (i) the applicant is 16 or 17 years of age and has a 132.2 previously issued valid license from another state or country or 132.3 the applicant has, for the 12 consecutive months preceding 132.4 application, held a provisional license and during that time has 132.5 incurred (A) no conviction for a violation of section 169A.20, 132.6 169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 132.7 conviction for a crash-related moving violation, and (C) not 132.8 more than one conviction for a moving violation that is not 132.9 crash related. "Moving violation" means a violation of a 132.10 traffic regulation but does not include a parking violation, 132.11 vehicle equipment violation, or warning citation; 132.12 (ii) the application for a license is approved by (A) 132.13 either parent when both reside in the same household as the 132.14 minor applicant or, if otherwise, then (B) the parent or spouse 132.15 of the parent having custody or, in the event there is no court 132.16 order for custody, then (C) the parent or spouse of the parent 132.17 with whom the minor is living or, if subitems (A) to (C) do not 132.18 apply, then (D) the guardian having custody of the minor or, in 132.19 the event a person under the age of 18 has no living father, 132.20 mother, or guardian, or is married or otherwise legally 132.21 emancipated, then (E) the minor's adult spouse, adult close 132.22 family member, or adult employer; provided, that the approval 132.23 required by this item contains a verification of the age of the 132.24 applicant and the identity of the parent, guardian, adult 132.25 spouse, adult close family member, or adult employer;and132.26 (iii) the applicant presents a certification by the person 132.27 who approves the application under item (ii), stating that the 132.28 applicant has driven a motor vehicle accompanied by and under 132.29 supervision of a licensed driver at least 21 years of age for at 132.30 least ten hours during the period of provisional licensure; and 132.31 (iv) the applicant certifies either (A) the applicant's 132.32 school attendance under section 171.056 and the district, 132.33 charter school, or alternative education program in which the 132.34 applicant is currently enrolled, or (B) that the enrolling 132.35 district, charter school, or alternative education program board 132.36 waived the attendance requirement under section 120A.23; 133.1 (2) to any person who is 18 years of age or younger, unless 133.2 the person has applied for, been issued, and possessed the 133.3 appropriate instruction permit for a minimum of six months, and, 133.4 with respect to a person under 18 years of age, a provisional 133.5 license for a minimum of 12 months; 133.6 (3) to any person who is 19 years of age or older, unless 133.7 that person has applied for, been issued, and possessed the 133.8 appropriate instruction permit for a minimum of three months; 133.9 (4) to any person whose license has been suspended during 133.10 the period of suspension except that a suspended license may be 133.11 reinstated during the period of suspension upon the licensee 133.12 furnishing proof of financial responsibility in the same manner 133.13 as provided in the Minnesota No-Fault Automobile Insurance Act; 133.14 (5) to any person whose license has been revoked except 133.15 upon furnishing proof of financial responsibility in the same 133.16 manner as provided in the Minnesota No-Fault Automobile 133.17 Insurance Act and if otherwise qualified; 133.18 (6) to any drug-dependent person, as defined in section 133.19 254A.02, subdivision 5; 133.20 (7) to any person who has been adjudged legally incompetent 133.21 by reason of mental illness, mental deficiency, or inebriation, 133.22 and has not been restored to capacity, unless the department is 133.23 satisfied that the person is competent to operate a motor 133.24 vehicle with safety to persons or property; 133.25 (8) to any person who is required by this chapter to take a 133.26 vision, knowledge, or road examination, unless the person has 133.27 successfully passed the examination. An applicant who fails 133.28 four road tests must complete a minimum of six hours of 133.29 behind-the-wheel instruction with an approved instructor before 133.30 taking the road test again; 133.31 (9) to any person who is required under the Minnesota 133.32 No-Fault Automobile Insurance Act to deposit proof of financial 133.33 responsibility and who has not deposited the proof; 133.34 (10) to any person when the commissioner has good cause to 133.35 believe that the operation of a motor vehicle on the highways by 133.36 the person would be inimical to public safety or welfare; 134.1 (11) to any person when, in the opinion of the 134.2 commissioner, the person is afflicted with or suffering from a 134.3 physical or mental disability or disease that will affect the 134.4 person in a manner as to prevent the person from exercising 134.5 reasonable and ordinary control over a motor vehicle while 134.6 operating it upon the highways; 134.7 (12) to a person who is unable to read and understand 134.8 official signs regulating, warning, and directing traffic; 134.9 (13) to a child for whom a court has ordered denial of 134.10 driving privileges under section 260C.201, subdivision 1, or 134.11 260B.235, subdivision 5, until the period of denial is 134.12 completed; or 134.13 (14) to any person whose license has been canceled, during 134.14 the period of cancellation. 134.15 [EFFECTIVE DATE.] This section is effective September 1, 134.16 2005, and applies to all persons under age 18 possessing or 134.17 applying for a driver's instruction permit or provisional 134.18 license on or after that date. 134.19 Sec. 74. Minnesota Statutes 2004, section 171.05, 134.20 subdivision 2, is amended to read: 134.21 Subd. 2. [PERSON LESS THAN 18 YEARS OF AGE.] (a) 134.22 Notwithstanding any provision in subdivision 1 to the contrary, 134.23 the department may issue an instruction permit to an applicant 134.24 who is 15, 16, or 17 years of age and who: 134.25 (1) has completed a course of driver education in another 134.26 state, has a previously issued valid license from another state, 134.27 or is enrolled in either: 134.28 (i) a public, private, or commercial driver education 134.29 program that is approved by the commissioner of public safety 134.30 and that includes classroom and behind-the-wheel training; or 134.31 (ii) an approved behind-the-wheel driver education program 134.32 when the student is receiving full-time instruction in a home 134.33 school within the meaning of sections 120A.22 and 120A.24, the 134.34 student is working toward a homeschool diploma, the student's 134.35 status as a homeschool student has been certified by the 134.36 superintendent of the school district in which the student 135.1 resides, and the student is taking home-classroom driver 135.2 training with classroom materials approved by the commissioner 135.3 of public safety; 135.4 (2) has completed the classroom phase of instruction in the 135.5 driver education program; 135.6 (3) has passed a test of the applicant's eyesight; 135.7 (4) has passed a department-administered test of the 135.8 applicant's knowledge of traffic laws; 135.9 (5) has completed the required application, which must be 135.10 approved by (i) either parent when both reside in the same 135.11 household as the minor applicant or, if otherwise, then (ii) the 135.12 parent or spouse of the parent having custody or, in the event 135.13 there is no court order for custody, then (iii) the parent or 135.14 spouse of the parent with whom the minor is living or, if items 135.15 (i) to (iii) do not apply, then (iv) the guardian having custody 135.16 of the minor or, in the event a person under the age of 18 has 135.17 no living father, mother, or guardian, or is married or 135.18 otherwise legally emancipated, then (v) the applicant's adult 135.19 spouse, adult close family member, or adult employer; provided, 135.20 that the approval required by this clause contains a 135.21 verification of the age of the applicant and the identity of the 135.22 parent, guardian, adult spouse, adult close family member, or 135.23 adult employer;and135.24 (6) certifies either (i) the applicant's school attendance 135.25 under section 171.056 and the district, charter school, or 135.26 alternative education program in which the applicant is 135.27 currently enrolled, or (ii) that the enrolling district, charter 135.28 school, or alternative education program board waived the 135.29 attendance requirement under section 120A.23; and 135.30 (7) has paid the fee required in section 171.06, 135.31 subdivision 2. 135.32 (b) The instruction permit is valid for one year from the 135.33 date of application and may be renewed upon payment of a fee 135.34 equal to the fee for issuance of an instruction permit under 135.35 section 171.06, subdivision 2. 135.36 [EFFECTIVE DATE.] This section is effective September 1, 136.1 2005, and applies to all persons under age 18 possessing or 136.2 applying for a driver's instruction permit on or after that date. 136.3 Sec. 75. Minnesota Statutes 2004, section 171.05, 136.4 subdivision 2b, is amended to read: 136.5 Subd. 2b. [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 136.6 (a) This subdivision applies to persons who have applied for and 136.7 received an instruction permit under subdivision 2. 136.8 (b) The permit holder may, with the permit in possession, 136.9 operate a motor vehicle, but must be accompanied by and be under 136.10 the supervision of a certified driver education instructor, the 136.11 permit holder's parent or guardian, or another licensed driver 136.12 age 21 or older. The supervisor must occupy the seat beside the 136.13 permit holder. 136.14 (c) The permit holder may operate a motor vehicle only when 136.15 every occupant under the age of 18 has a seat belt or child 136.16 passenger restraint system properly fastened. A person who 136.17 violates this paragraph is subject to a fine of $25. A peace 136.18 officer may not issue a citation for a violation of this 136.19 paragraph unless the officer lawfully stopped or detained the 136.20 driver of the motor vehicle for a moving violation as defined in 136.21 section 171.04, subdivision 1. The commissioner shall not 136.22 record a violation of this paragraph on a person's driving 136.23 record. 136.24 (d) The permit holder must maintain a driving record free 136.25 of convictions for moving violations, as defined in section 136.26 171.04, subdivision 1, and free of convictions for violation of 136.27 section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 136.28 169A.53. If the permit holder drives a motor vehicle in 136.29 violation of the law, the commissioner shall suspend, cancel, or 136.30 revoke the permit in accordance with the statutory section 136.31 violated. 136.32 (e) The permit holder must comply with the school 136.33 attendance requirement under section 171.056, except when the 136.34 attendance requirement is waived under section 120A.23. If the 136.35 permit holder does not attend school as required, the 136.36 commissioner must cancel the permit under section 171.056. 137.1 [EFFECTIVE DATE.] This section is effective September 1, 137.2 2005, and applies to all persons under age 18 possessing or 137.3 applying for a driver's instruction permit on or after that date. 137.4 Sec. 76. Minnesota Statutes 2004, section 171.05, 137.5 subdivision 3, is amended to read: 137.6 Subd. 3. [MOTORIZED BICYCLE.] Notwithstanding any 137.7 provision in subdivision 1 to the contrary, the department, upon 137.8 application and payment of the fee prescribed in section 171.02, 137.9 subdivision 3, may issue a motorized bicycle instruction permit 137.10 to an applicant who is 15 years of ageand, who has successfully 137.11 completed the written portion of the examination prescribed by 137.12 the commissioner, and who certifies either (1) the applicant's 137.13 school attendance under section 171.056 and the district, 137.14 charter school, or alternative education program in which the 137.15 applicant is currently enrolled, or (2) that the enrolling 137.16 district, charter school, or alternative education program board 137.17 waived the attendance requirement under section 120A.23. The 137.18 holder of this instruction permit who has the permit in 137.19 possession may operate a motorized bicycle within one mile of 137.20 the holder's residence for the purpose of practicing to take the 137.21 operator portion of the examination prescribed by the 137.22 commissioner. 137.23 [EFFECTIVE DATE.] This section is effective September 1, 137.24 2005, and applies to all persons under age 18 possessing or 137.25 applying for a motorized bicycle instruction permit on or after 137.26 that date. 137.27 Sec. 77. [171.056] [SCHOOL ATTENDANCE REQUIREMENT FOR 137.28 DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 137.29 PROVISIONAL LICENSE.] 137.30 Subdivision 1. [DEFINITIONS.] (a) As used in this section 137.31 the terms defined in this subdivision have the meanings given 137.32 them. 137.33 (b) "Continuing truant" means a student under section 137.34 260A.02, subdivision 3, who is absent without valid excuse from 137.35 instruction in a school. 137.36 (c) "Habitual truant" means a person under section 138.1 260C.007, subdivision 19, who is absent without lawful excuse 138.2 from attendance at school. 138.3 (d) "High school diploma" means an official record or 138.4 document indicating that the student has satisfied the 138.5 graduation requirements of that school as defined under section 138.6 120A.22, subdivision 4. 138.7 (e) "Public school" means a public school, state approved 138.8 alternative program (SAAP), or charter school. 138.9 (f) "School board" means a public school district school 138.10 board, SAAP board, or charter school board of directors. 138.11 (g) "School principal" means a principal or chief 138.12 administrative officer of a public school. 138.13 Subd. 2. [ISSUANCE OR RENEWAL OF DRIVER'S INSTRUCTION 138.14 PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 138.15 Notwithstanding any law to the contrary, except when the 138.16 attendance requirement is waived under section 120A.23, school 138.17 attendance is a requirement for issuing a new driver's 138.18 instruction permit, motorized bicycle permit, or provisional 138.19 license or renewing the permit of a person under age 18. The 138.20 person meets the school attendance requirement when the person: 138.21 (1) has a high school diploma or general education 138.22 development certificate (GED); 138.23 (2) has withdrawn from school under section 120A.22, 138.24 subdivision 8; or 138.25 (3) is enrolled and attending a public school and is not a 138.26 continuing truant or habitually truant, is enrolled and 138.27 attending a nonpublic school, or is homeschooled. 138.28 (b) A person under age 18 who applies for a motorized 138.29 bicycle permit, instruction permit, or provisional license must 138.30 submit information to the Department of Public Safety in the 138.31 manner and format it prescribes documenting that the person has 138.32 met the requirements of paragraph (a). 138.33 Subd. 3. [EXPUNGEMENT OF RECORD.] Upon receiving the 138.34 written or electronic request of a student who is age 18 or 138.35 older, the Department of Public Safety must expunge from the 138.36 department's motor vehicle records all the student's truancy 139.1 data related to the department refusing to issue or canceling 139.2 the student's permit or license under this section. 139.3 [EFFECTIVE DATE.] This section is effective September 1, 139.4 2005, and applies to all persons under age 18 possessing or 139.5 applying for a motorized bicycle permit, driver's instruction 139.6 permit, or provisional license on or after that date. 139.7 Sec. 78. [179A.145] [PERIOD DURING WHICH NEGOTIATIONS ARE 139.8 PROHIBITED; FINANCIAL PENALTY FOR FAILING TO SETTLE.] 139.9 Subdivision 1. [PROHIBITION; FINANCIAL INCENTIVE AND 139.10 PENALTY.] (a) A school board and the exclusive representative of 139.11 the teachers in a district may not meet and negotiate and may 139.12 not enter into a contract during the period beginning November 139.13 15 and ending with the last student contact day the next spring 139.14 in the even-numbered year and ending March 1 in the odd-numbered 139.15 year. 139.16 (b) Notwithstanding paragraph (a), a school board and the 139.17 exclusive representative of the teachers may mutually agree to 139.18 meet and negotiate an agreement or contract, meet and confer 139.19 under section 179A.03, subdivision 10, negotiate a memorandum of 139.20 understanding or meet for another particular purpose after 139.21 November 15. 139.22 (c) If the school board and the exclusive representative of 139.23 the teachers in a district fail to enter into a contract before 139.24 November 15 or 90 days after the date on which the governor 139.25 signs the bill providing for elementary and secondary school 139.26 funding, whichever is later, unless subdivision 2 applies, the 139.27 education commissioner must withhold from the district all 139.28 district basic revenue increases under section 126C.10 that are 139.29 allowed over the previous fiscal year until the school board and 139.30 the exclusive representative of the teachers enter into a 139.31 contract. 139.32 Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply: 139.33 (1) if the school board and the exclusive representative of 139.34 teachers certify in writing to the commissioner of mediation 139.35 services that they have entered into a tentative agreement 139.36 before November 15, to the extent the parties enter into a final 140.1 contract based on the tentative agreement certified to the 140.2 commissioner; 140.3 (2) if the school board and the exclusive representative 140.4 agree, before November 15, to binding interest arbitration of 140.5 items in dispute, to the extent the parties enter into a 140.6 contract to confirm the results of the arbitrator's decision; 140.7 (3) if the teachers in the district are on strike on 140.8 November 15; or 140.9 (4) the commissioner has approved the district's 140.10 application to participate in an alternative teacher 140.11 professional pay system under sections 122A.414 and 122A.415. 140.12 Subd. 3. [RELATION TO OTHER LAW.] This section supersedes 140.13 any conflicting provisions of other law. 140.14 [EFFECTIVE DATE.] This section is effective July 1, 2007. 140.15 Sec. 79. Minnesota Statutes 2004, section 260C.007, 140.16 subdivision 6, is amended to read: 140.17 Subd. 6. [CHILD IN NEED OF PROTECTION OR SERVICES.] "Child 140.18 in need of protection or services" means a child who is in need 140.19 of protection or services because the child: 140.20 (1) is abandoned or without parent, guardian, or custodian; 140.21 (2)(i) has been a victim of physical or sexual abuse, (ii) 140.22 resides with or has resided with a victim of domestic child 140.23 abuse as defined in subdivision 5, (iii) resides with or would 140.24 reside with a perpetrator of domestic child abuse or child abuse 140.25 as defined in subdivision 5, or (iv) is a victim of emotional 140.26 maltreatment as defined in subdivision 8; 140.27 (3) is without necessary food, clothing, shelter, 140.28 education, or other required care for the child's physical or 140.29 mental health or morals because the child's parent, guardian, or 140.30 custodian is unable or unwilling to provide that care; 140.31 (4) is without the special care made necessary by a 140.32 physical, mental, or emotional condition because the child's 140.33 parent, guardian, or custodian is unable or unwilling to provide 140.34 that care, including a child in voluntary placement due solely 140.35 to the child's developmental disability or emotional 140.36 disturbance; 141.1 (5) is medically neglected, which includes, but is not 141.2 limited to, the withholding of medically indicated treatment 141.3 from a disabled infant with a life-threatening condition. The 141.4 term "withholding of medically indicated treatment" means the 141.5 failure to respond to the infant's life-threatening conditions 141.6 by providing treatment, including appropriate nutrition, 141.7 hydration, and medication which, in the treating physician's or 141.8 physicians' reasonable medical judgment, will be most likely to 141.9 be effective in ameliorating or correcting all conditions, 141.10 except that the term does not include the failure to provide 141.11 treatment other than appropriate nutrition, hydration, or 141.12 medication to an infant when, in the treating physician's or 141.13 physicians' reasonable medical judgment: 141.14 (i) the infant is chronically and irreversibly comatose; 141.15 (ii) the provision of the treatment would merely prolong 141.16 dying, not be effective in ameliorating or correcting all of the 141.17 infant's life-threatening conditions, or otherwise be futile in 141.18 terms of the survival of the infant; or 141.19 (iii) the provision of the treatment would be virtually 141.20 futile in terms of the survival of the infant and the treatment 141.21 itself under the circumstances would be inhumane; 141.22 (6) is one whose parent, guardian, or other custodian for 141.23 good cause desires to be relieved of the child's care and 141.24 custody, including a child in placement according to voluntary 141.25 release by the parent under section 260C.212, subdivision 8; 141.26 (7) has been placed for adoption or care in violation of 141.27 law; 141.28 (8) is without proper parental care because of the 141.29 emotional, mental, or physical disability, or state of 141.30 immaturity of the child's parent, guardian, or other custodian; 141.31 (9) is one whose behavior, condition, or environment is 141.32 such as to be injurious or dangerous to the child or others. An 141.33 injurious or dangerous environment may include, but is not 141.34 limited to, the exposure of a child to criminal activity in the 141.35 child's home; 141.36 (10) is experiencing growth delays, which may be referred 142.1 to as failure to thrive, that have been diagnosed by a physician 142.2 and are due to parental neglect; 142.3 (11) has engaged in prostitution as defined in section 142.4 609.321, subdivision 9; 142.5 (12) has committed a delinquent act or a juvenile petty 142.6 offense before becoming ten years old; 142.7 (13) is a runaway; 142.8 (14) is a continuing or habitual truant; 142.9 (15) has been found incompetent to proceed or has been 142.10 found not guilty by reason of mental illness or mental 142.11 deficiency in connection with a delinquency proceeding, a 142.12 certification under section 260B.125, an extended jurisdiction 142.13 juvenile prosecution, or a proceeding involving a juvenile petty 142.14 offense; or 142.15 (16) has been found by the court to have committed domestic 142.16 abuse perpetrated by a minor under Laws 1997, chapter 239, 142.17 article 10, sections 2 to 26, has been ordered excluded from the 142.18 child's parent's home by an order for protection/minor 142.19 respondent, and the parent or guardian is either unwilling or 142.20 unable to provide an alternative safe living arrangement for the 142.21 child. 142.22 [EFFECTIVE DATE.] This section is effective July 1, 2005. 142.23 Sec. 80. Minnesota Statutes 2004, section 260C.007, is 142.24 amended by adding a subdivision to read: 142.25 Subd. 8a. [CONTINUING TRUANT.] "Continuing truant" means a 142.26 student under section 260A.02, subdivision 3, who is absent 142.27 without valid excuse from instruction in a school. 142.28 [EFFECTIVE DATE.] This section is effective July 1, 2005. 142.29 Sec. 81. Minnesota Statutes 2004, section 260C.201, 142.30 subdivision 1, is amended to read: 142.31 Subdivision 1. [DISPOSITIONS.] (a) If the court finds that 142.32 the child is in need of protection or services or neglected and 142.33 in foster care, it shall enter an order making any of the 142.34 following dispositions of the case: 142.35 (1) place the child under the protective supervision of the 142.36 responsible social services agency or child-placing agency in 143.1 the home of a parent of the child under conditions prescribed by 143.2 the court directed to the correction of the child's need for 143.3 protection or services: 143.4 (i) the court may order the child into the home of a parent 143.5 who does not otherwise have legal custody of the child, however, 143.6 an order under this section does not confer legal custody on 143.7 that parent; 143.8 (ii) if the court orders the child into the home of a 143.9 father who is not adjudicated, he must cooperate with paternity 143.10 establishment proceedings regarding the child in the appropriate 143.11 jurisdiction as one of the conditions prescribed by the court 143.12 for the child to continue in his home; 143.13 (iii) the court may order the child into the home of a 143.14 noncustodial parent with conditions and may also order both the 143.15 noncustodial and the custodial parent to comply with the 143.16 requirements of a case plan under subdivision 2; or 143.17 (2) transfer legal custody to one of the following: 143.18 (i) a child-placing agency; or 143.19 (ii) the responsible social services agency. In placing a 143.20 child whose custody has been transferred under this paragraph, 143.21 the agencies shall make an individualized determination of how 143.22 the placement is in the child's best interests using the 143.23 consideration for relatives and the best interest factors in 143.24 section 260C.212, subdivision 2, paragraph (b); or 143.25 (3) if the child has been adjudicated as a child in need of 143.26 protection or services because the child is in need of special 143.27 services or care to treat or ameliorate a physical or mental 143.28 disability, the court may order the child's parent, guardian, or 143.29 custodian to provide it. The court may order the child's health 143.30 plan company to provide mental health services to the child. 143.31 Section 62Q.535 applies to an order for mental health services 143.32 directed to the child's health plan company. If the health 143.33 plan, parent, guardian, or custodian fails or is unable to 143.34 provide this treatment or care, the court may order it 143.35 provided. Absent specific written findings by the court that 143.36 the child's disability is the result of abuse or neglect by the 144.1 child's parent or guardian, the court shall not transfer legal 144.2 custody of the child for the purpose of obtaining special 144.3 treatment or care solely because the parent is unable to provide 144.4 the treatment or care. If the court's order for mental health 144.5 treatment is based on a diagnosis made by a treatment 144.6 professional, the court may order that the diagnosing 144.7 professional not provide the treatment to the child if it finds 144.8 that such an order is in the child's best interests; or 144.9 (4) if the court believes that the child has sufficient 144.10 maturity and judgment and that it is in the best interests of 144.11 the child, the court may order a child 16 years old or older to 144.12 be allowed to live independently, either alone or with others as 144.13 approved by the court under supervision the court considers 144.14 appropriate, if the county board, after consultation with the 144.15 court, has specifically authorized this dispositional 144.16 alternative for a child. 144.17 (b) If the child was adjudicated in need of protection or 144.18 services because the child is a runaway, or is a continuing or 144.19 habitual truant, the court may order any of the following 144.20 dispositions in addition to or as alternatives to the 144.21 dispositions authorized under paragraph (a): 144.22 (1) counsel the child or the child's parents, guardian, or 144.23 custodian; 144.24 (2) place the child under the supervision of a probation 144.25 officer or other suitable person in the child's own home under 144.26 conditions prescribed by the court, including reasonable rules 144.27 for the child's conduct and the conduct of the parents, 144.28 guardian, or custodian, designed for the physical, mental, and 144.29 moral well-being and behavior of the child; or with the consent 144.30 of the commissioner of corrections, place the child in a group 144.31 foster care facility which is under the commissioner's 144.32 management and supervision; 144.33 (3) subject to the court's supervision, transfer legal 144.34 custody of the child to one of the following: 144.35 (i) a reputable person of good moral character. No person 144.36 may receive custody of two or more unrelated children unless 145.1 licensed to operate a residential program under sections 245A.01 145.2 to 245A.16; or 145.3 (ii) a county probation officer for placement in a group 145.4 foster home established under the direction of the juvenile 145.5 court and licensed pursuant to section 241.021; 145.6 (4) require the child to pay a fine of up to $100. The 145.7 court shall order payment of the fine in a manner that will not 145.8 impose undue financial hardship upon the child; 145.9 (5) require the child to participate in a community service 145.10 project; 145.11 (6) order the child to undergo a chemical dependency 145.12 evaluation and, if warranted by the evaluation, order 145.13 participation by the child in a drug awareness program or an 145.14 inpatient or outpatient chemical dependency treatment program; 145.15 (7) if the court believes that it is in the best interests 145.16 of the childandor of public safety that the child's driver's 145.17 license or instruction permit be canceled, the court may order 145.18 the commissioner of public safety to cancel the child's license 145.19 or permit for any period up to the child's 18th birthday. If 145.20 the child does not have a driver's license or permit, the court 145.21 may order a denial of driving privileges for any period up to 145.22 the child's 18th birthday. If the child is a continuing or 145.23 habitual truant, the court must cancel the child's driving 145.24 privileges. The court shall forward an order issued under this 145.25 clause to the commissioner, who shall cancel the license or 145.26 permit or deny driving privileges without a hearing for the 145.27 period specified by the court. At any time before the 145.28 expiration of the period of cancellation or denial, the court 145.29 may, for good cause, order the commissioner of public safety to 145.30 allow the child to apply for a license or permit, and the 145.31 commissioner shall so authorize; 145.32 (8) order that the child's parent or legal guardian deliver 145.33 the child to school at the beginning of each school day for a 145.34 period of time specified by the court; or 145.35 (9) require the child to perform any other activities or 145.36 participate in any other treatment programs deemed appropriate 146.1 by the court. 146.2 To the extent practicable, the court shall enter a 146.3 disposition order the same day it makes a finding that a child 146.4 is in need of protection or services or neglected and in foster 146.5 care, but in no event more than 15 days after the finding unless 146.6 the court finds that the best interests of the child will be 146.7 served by granting a delay. If the child was under eight years 146.8 of age at the time the petition was filed, the disposition order 146.9 must be entered within ten days of the finding and the court may 146.10 not grant a delay unless good cause is shown and the court finds 146.11 the best interests of the child will be served by the delay. 146.12 (c) If a child who is 14 years of age or older is 146.13 adjudicated in need of protection or services because the child 146.14 is a habitual truant and truancy procedures involving the child 146.15 were previously dealt with by a school attendance review board 146.16 or county attorney mediation program under section 260A.06 or 146.17 260A.07, the court shall order a cancellation or denial of 146.18 driving privileges under paragraph (b), clause (7), for any 146.19 period up to the child's 18th birthday. 146.20 (d) In the case of a child adjudicated in need of 146.21 protection or services because the child has committed domestic 146.22 abuse and been ordered excluded from the child's parent's home, 146.23 the court shall dismiss jurisdiction if the court, at any time, 146.24 finds the parent is able or willing to provide an alternative 146.25 safe living arrangement for the child, as defined in Laws 1997, 146.26 chapter 239, article 10, section 2. 146.27 (e) When a parent has complied with a case plan ordered 146.28 under subdivision 6 and the child is in the care of the parent, 146.29 the court may order the responsible social services agency to 146.30 monitor the parent's continued ability to maintain the child 146.31 safely in the home under such terms and conditions as the court 146.32 determines appropriate under the circumstances. 146.33 [EFFECTIVE DATE.] This section is effective July 1, 2005. 146.34 Sec. 82. [BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 146.35 AUTHORITY.] 146.36 On or before June 30, 2007, the Board of School 147.1 Administrators may adopt expedited rules under Minnesota 147.2 Statutes, section 14.389, to make technical revisions and 147.3 clarifications to Minnesota Rules, chapter 3512. 147.4 Sec. 83. [CAREER AND TECHNICAL EDUCATION PROGRAM RULES.] 147.5 By January 1, 2007, the commissioner of education must 147.6 adopt rules for approval of career and technical education 147.7 programs consistent with Minnesota Statutes, section 124D.4531, 147.8 subdivisions 4 and 6, that emphasize emerging workforce skills. 147.9 Program approval for fiscal year 2008 and later must be based on 147.10 the rules. 147.11 Sec. 84. [MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.] 147.12 The commissioner of education shall adopt rules on or 147.13 before January 1, 2006, to implement the Minnesota Comprehensive 147.14 Assessments Second Edition (MCA-IIs) in reading, mathematics, 147.15 and writing. For purposes of state and local high school 147.16 graduation requirements, and consistent with applicable federal 147.17 and state law, the rules must include criteria and an 147.18 alternative assessment process to enable school districts to 147.19 accommodate students, including at least students with 147.20 disabilities, English language learners, and students performing 147.21 below their grade level, who do not receive a passing score on 147.22 the Minnesota Comprehensive Assessments Second Edition. 147.23 Sec. 85. [EDUCATION EXCELLENCE REVENUE.] 147.24 (a) In fiscal year 2007 only, a school district is eligible 147.25 for education excellence revenue based on the school district's 147.26 performance on the following six standards: 147.27 (1) graduation rate; 147.28 (2) attendance rate; 147.29 (3) achievement of educational standards; 147.30 (4) adequate yearly progress; 147.31 (5) value added measures of student performance; and 147.32 (6) publication of a school report card. 147.33 The commissioner of education must establish minimum 147.34 qualifying benchmarks for each of the six standards listed in 147.35 this paragraph. A school district that meets or exceeds the 147.36 benchmarks established by the commissioner for that school 148.1 district is eligible for educational excellence revenue for each 148.2 standard that is met. 148.3 (b) Total revenue for education excellence equals 148.4 $1,000,000. 148.5 (c) The commissioner shall determine the education 148.6 excellence revenue allowance. The allowance is equal to total 148.7 revenue for education excellence under paragraph (b) divided by 148.8 the sum of the product of the number of adjusted marginal cost 148.9 pupil units in each school district and the number of standards 148.10 under paragraph (a) that have been met or exceeded for each 148.11 school district for the previous school year for all school 148.12 districts. 148.13 (d) A school district's education excellence allowance 148.14 equals the product of the education excellence allowance, the 148.15 district's adjusted marginal cost pupil units for that year, and 148.16 the number of standards that have been met or exceeded for the 148.17 previous school year. A school district's education excellence 148.18 revenue must not exceed $100 times the district's adjusted 148.19 marginal cost per pupil units for that year. 148.20 [EFFECTIVE DATE.] This section is effective for revenue for 148.21 fiscal year 2007. 148.22 Sec. 86. [TITLE.] 148.23 Minnesota Statutes, section 120B.25, shall be known as the 148.24 American Heritage Education in Minnesota Public Schools Act. 148.25 [EFFECTIVE DATE.] This section is effective the day 148.26 following final enactment. 148.27 Sec. 87. [STUDY; SPONSOR EVALUATION AND CHARGES.] 148.28 The Department of Education by December 31, 2005, after 148.29 consulting with representatives of charter schools and charter 148.30 school sponsors, must submit to the legislature recommendations 148.31 on how a charter school sponsor effectively evaluates the 148.32 performance of a charter school under Minnesota Statutes, 148.33 section 124D.10, subdivision 15, and what annual fees a sponsor 148.34 may charge for that evaluation. 148.35 Sec. 88. [MODEL POLICY.] 148.36 The commissioner of education, after consulting with 149.1 representatives of teachers, school administrators, parents, 149.2 students, student support service providers, law enforcement 149.3 officials, community service providers, and the juvenile justice 149.4 and district court systems, must develop and make available upon 149.5 request to interested school boards a model policy to effect a 149.6 reward for information about persons committing crimes against 149.7 students, school employees, school volunteers, school board 149.8 members, or school property, consistent with section 123B.02, 149.9 subdivision 22. 149.10 [EFFECTIVE DATE.] This section is effective the day 149.11 following final enactment. 149.12 Sec. 89. [APPROPRIATIONS.] 149.13 Subdivision 1. [DEPARTMENT.] The sums indicated in this 149.14 section are appropriated from the general fund to the Department 149.15 of Education for the fiscal years designated. 149.16 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 149.17 lease aid under Minnesota Statutes, section 124D.11, subdivision 149.18 4: 149.19 $25,465,000 ..... 2006 149.20 $30,929,000 ..... 2007 149.21 The 2006 appropriation includes $3,324,000 for 2005 and 149.22 $22,141,000 for 2006. 149.23 The 2007 appropriation includes $4,123,000 for 2006 and 149.24 $26,806,000 for 2007. 149.25 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 149.26 startup cost aid under Minnesota Statutes, section 124D.11: 149.27 $1,393,000 ..... 2006 149.28 $3,185,000 ..... 2007 149.29 The 2006 appropriation includes $0 for 2005 and $1,393,000 149.30 for 2006. 149.31 The 2007 appropriation includes $259,000 for 2006 and 149.32 $2,926,000 for 2007. 149.33 Subd. 4. [INTEGRATION AID.] For integration aid under 149.34 Minnesota Statutes, section 124D.86, subdivision 5: 149.35 $57,812,000 ..... 2006 149.36 $57,556,000 ..... 2007 150.1 The 2006 appropriation includes $8,545,000 for 2005 and 150.2 $49,267,000 for 2006. 150.3 The 2007 appropriation includes $9,174,000 for 2006 and 150.4 $48,382,000 for 2007. 150.5 Subd. 5. [MAGNET SCHOOL GRANTS.] For magnet school and 150.6 program grants: 150.7 $ 750,000 ..... 2006 150.8 $ 750,000 ..... 2007 150.9 These amounts may be used for magnet school programs under 150.10 Minnesota Statutes, section 124D.88. 150.11 Subd. 6. [INTERDISTRICT DESEGREGATION OR INTEGRATION 150.12 TRANSPORTATION GRANTS.] For interdistrict desegregation or 150.13 integration transportation grants under Minnesota Statutes, 150.14 section 124D.87: 150.15 $7,768,000 ..... 2006 150.16 $9,908,000 ..... 2007 150.17 Subd. 7. [SUCCESS FOR THE FUTURE.] For American Indian 150.18 success for the future grants under Minnesota Statutes, section 150.19 124D.81: 150.20 $2,137,000 ..... 2006 150.21 $2,137,000 ..... 2007 150.22 The 2006 appropriation includes $335,000 for 2005 and 150.23 $1,802,000 for 2006. 150.24 The 2007 appropriation includes $335,000 for 2006 and 150.25 $1,802,000 for 2007. 150.26 Subd. 8. [AMERICAN INDIAN SCHOLARSHIPS.] For American 150.27 Indian scholarships under Minnesota Statutes, section 124D.84: 150.28 $1,875,000 ..... 2006 150.29 $1,875,000 ..... 2007 150.30 Subd. 9. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] For 150.31 joint grants to assist American Indian people to become teachers 150.32 under Minnesota Statutes, section 122A.63: 150.33 $ 190,000 ..... 2006 150.34 $ 190,000 ..... 2007 150.35 Subd. 10. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 150.36 school aid under Minnesota Statutes, section 124D.83: 151.1 $2,372,000 ..... 2006 151.2 $2,559,000 ..... 2007 151.3 The 2006 appropriation includes $348,000 for 2005 and 151.4 $2,024,000 for 2006. 151.5 The 2007 appropriation includes $376,000 for 2006 and 151.6 $2,183,000 for 2007. 151.7 Subd. 11. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 151.8 SCHOOLS.] For early childhood family education programs at 151.9 tribal contract schools under Minnesota Statutes, section 151.10 124D.83, subdivision 4: 151.11 $ 68,000 ..... 2006 151.12 $ 68,000 ..... 2007 151.13 Subd. 12. [STATEWIDE TESTING.] For statewide testing 151.14 support under Minnesota Statutes, section 120B.30: 151.15 $10,200,000 ..... 2006 151.16 $10,200,000 ..... 2007 151.17 Of this appropriation, $1,200,000 each year is for 151.18 development of interactive science assessments. 151.19 Subd. 13. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 151.20 PROGRAMS.] For student examination fees and training and related 151.21 costs for teachers and other interested educators under 151.22 Minnesota Statutes, section 120B.13: 151.23 $4,500,000 ..... 2006 151.24 $4,500,000 ..... 2007 151.25 The advanced placement program shall receive 90 percent of 151.26 the appropriation each year and the international baccalaureate 151.27 program shall receive ten percent of the appropriation each 151.28 year. The department, in consultation with representatives of 151.29 the advanced placement and international baccalaureate programs 151.30 selected by the Advanced Placement Advisory Council and IBMN, 151.31 respectively, shall determine the amounts of the expenditures 151.32 each year for examination fees and training and support programs. 151.33 Any balance in the first year does not cancel but is 151.34 available in the second year. 151.35 Subd. 14. [FIRST GRADE PREPAREDNESS.] For first grade 151.36 preparedness grants under Minnesota Statutes, section 124D.081: 152.1 $7,250,000 ..... 2006 152.2 $7,250,000 ..... 2007 152.3 Subd. 15. [COLLABORATIVE URBAN EDUCATOR.] For the 152.4 collaborative urban educator program: 152.5 $ 528,000 ..... 2006 152.6 $ 528,000 ..... 2007 152.7 Subd. 16. [YOUTH WORKS PROGRAM.] For funding youth works 152.8 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 152.9 $ 900,000 ..... 2006 152.10 $ 900,000 ..... 2007 152.11 A grantee organization may provide health and child care 152.12 coverage to the dependents of each participant enrolled in a 152.13 full-time youth works program to the extent such coverage is not 152.14 otherwise available. 152.15 Subd. 17. [STUDENT ORGANIZATIONS.] For student 152.16 organizations: 152.17 $ 625,000 ..... 2006 152.18 $ 625,000 ..... 2007 152.19 Subd. 18. [EDUCATION PLANNING AND ASSESSMENT PROGRAM.] For 152.20 the Educational Planning and Assessment (EPAS) program under 152.21 Minnesota Statutes, section 120B.128: 152.22 $ 829,000 ..... 2006 152.23 $ 829,000 ..... 2007 152.24 Subd. 19. [COLLEGE LEVEL EXAMINATION PROGRAM (CLEP).] For 152.25 the College Level Examination program (CLEP) under Minnesota 152.26 Statutes, section 120B.131: 152.27 $ 825,000 ..... 2006 152.28 $1,650,000 ..... 2007 152.29 Subd. 20. [CAREER AND TECHNICAL EDUCATION GRANTS.] For 152.30 career and technical education grants: 152.31 $1,000,000 ..... 2006 152.32 $1,000,000 ..... 2007 152.33 This appropriation is for grants to school districts to 152.34 establish emerging technology demonstration programs for 152.35 students in grades 7 through 9. The commissioner shall 152.36 prescribe the form and manner of grant applications, and shall 153.1 make up to 20 grant awards each year of the biennium. The grant 153.2 award process must take into consideration regional 153.3 distribution, district instructional history with emerging 153.4 technologies, plans to link the program with high school 153.5 emerging technology programs, ability to provide local matching 153.6 funds, and plans to serve as a demonstration program. 153.7 Any balance in the first year does not cancel but is 153.8 available in the second year. This is a onetime appropriation. 153.9 Subd. 21. [MINNESOTA LEARNING RESOURCE CENTER.] For a 153.10 grant to A Chance to Grow/New Visions for the Minnesota Learning 153.11 Resource Center's comprehensive training program for education 153.12 professionals charged with helping children acquire basic 153.13 reading and math skills: 153.14 $125,000 ..... 2006 153.15 $125,000 ..... 2007 153.16 This is a onetime appropriation. 153.17 Subd. 22. [TEACHER PROFESSIONAL DEVELOPMENT.] For a grant 153.18 to the Minnesota Humanities Commission to provide content-based 153.19 professional development for teachers: 153.20 $500,000 ..... 2006 153.21 $500,000 ..... 2007 153.22 This is a onetime appropriation. 153.23 Subd. 23. [MINNESOTA HISTORICAL SOCIETY.] For a grant to 153.24 the Minnesota Historical Society to provide teacher professional 153.25 development: 153.26 $100,000 ..... 2006 153.27 $100,000 ..... 2007 153.28 This is a onetime appropriation. 153.29 Subd. 24. [REWARDING EDUCATIONAL EXCELLENCE.] For 153.30 rewarding educational excellence under Minnesota Statutes, 153.31 section 126C.10, subdivision 2b: 153.32 $ -0- ..... 2006 153.33 $1,000,000 ..... 2007 153.34 This is a onetime appropriation. 153.35 Sec. 90. [REPEALER.] 153.36 Minnesota Statutes 2004, section 124D.095, is repealed. 154.1 [EFFECTIVE DATE.] This section is effective for revenue for 154.2 fiscal year 2006. 154.3 ARTICLE 3 154.4 SPECIAL PROGRAMS 154.5 Section 1. Minnesota Statutes 2004, section 124D.11, 154.6 subdivision 5, is amended to read: 154.7 Subd. 5. [SPECIAL EDUCATION AID.] (a) Except as provided 154.8 in subdivision 2, special education aid must be paid to a 154.9 charter school according to section 125A.76, as though it were a 154.10 school district. 154.11 (b) For fiscal year 2006, the charter school may charge 154.12 tuition to the district of residence as follows: 154.13 (1) if the charter school does not receive general 154.14 education revenue on behalf of the student according to 154.15 subdivision 1, tuition shall be charged as provided in section 154.16 125A.11; or 154.17 (2) if the charter school receives general education 154.18 revenue on behalf of the student according to subdivision 1, 154.19 tuition shall be charged as provided in section 127A.47, 154.20 subdivision 7, paragraph (d). 154.21 (c) For fiscal year 2007 and later, the special education 154.22 aid paid to the charter school shall be adjusted as follows: 154.23 (1) if the charter school does not receive general 154.24 education revenue on behalf of the student according to 154.25 subdivision 1, the aid shall be adjusted as provided in section 154.26 125A.11; or 154.27 (2) if the charter school receives general education 154.28 revenue on behalf of the student according to subdivision 1, the 154.29 aid shall be adjusted as provided in section 127A.47, 154.30 subdivision 7, paragraph (d). 154.31 Sec. 2. Minnesota Statutes 2004, section 125A.091, 154.32 subdivision 5, is amended to read: 154.33 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] (a) The 154.34 district must not proceed with the initial evaluation of a 154.35 child, the initial placement of a child in a special education 154.36 program, or the initial provision of special education services 155.1 for a child without the prior written consent of the child's 155.2 parent. A district may not override the written refusal of a 155.3 parent to consent to an initial evaluation or reevaluation. If 155.4 a parent refuses to consent to the initial evaluation of a 155.5 child, a school district may apply to the child in any 155.6 subsequent disciplinary action those provisions of the Pupil 155.7 Fair Dismissal Act under sections 121A.40 to 121A.56 applicable 155.8 to students without disabilities. A parent's refusal to consent 155.9 to an initial evaluation or reevaluation under this paragraph is 155.10 not a ground for disciplinary action under sections 121A.40 to 155.11 121A.56. 155.12 (b) A parent, after consulting with health care, education, 155.13 or other professional providers, may agree or disagree to 155.14 provide the parent's child with sympathomimetic medications 155.15 unless section 144.344 applies. 155.16 [EFFECTIVE DATE.] This section is effective for the 155.17 2005-2006 school year and later. 155.18 Sec. 3. Minnesota Statutes 2004, section 125A.11, 155.19 subdivision 1, is amended to read: 155.20 Subdivision 1. [NONRESIDENT TUITION RATE; OTHER COSTS.] 155.21 (a) For fiscal year 2006, when a school district provides 155.22 instruction and services outside the district of residence, 155.23 board and lodging, and any tuition to be paid, shall be paid by 155.24 the district of residence. The tuition rate to be charged for 155.25 any child with a disability, excluding a pupil for whom tuition 155.26 is calculated according to section 127A.47, subdivision 7, 155.27 paragraph (d), must be the sum of (1) the actual cost of 155.28 providing special instruction and services to the child 155.29 including a proportionate amount forcapital outlay and debt155.30service but not including any amount forspecial transportation 155.31 and unreimbursed building lease and debt service costs for 155.32 facilities used primarily for special education, plus (2) the 155.33 amount of general education revenue and referendum aid 155.34 attributable to the pupil, minus (3) the amount of special 155.35 education aid for children with a disability received on behalf 155.36 of that child, minus (4) if the pupil receives special 156.1 instruction and services outside the regular classroom for more 156.2 than 60 percent of the school day, the amount of general 156.3 education revenue and referendum aid, excluding portions 156.4 attributable to district and school administration, district 156.5 support services, operations and maintenance, capital 156.6 expenditures, and pupil transportation, attributable to that 156.7 pupil for the portion of time the pupil receives instruction in 156.8 the regular classroom. If the boards involved do not agree upon 156.9 the tuition rate, either board may apply to the commissioner to 156.10 fix the rate. Notwithstanding chapter 14, the commissioner must 156.11 then set a date for a hearing or request a written statement 156.12 from each board, giving each board at least ten days' notice, 156.13 and after the hearing or review of the written statements the 156.14 commissioner must make an order fixing the tuition rate, which 156.15 is binding on both school districts. General education revenue 156.16 and referendum aid attributable to a pupil must be calculated 156.17 using the resident district's average general education and 156.18 referendum revenue per adjusted pupil unit. 156.19 (b) For fiscal year 2007 and later, when a school district 156.20 provides special instruction and services for a pupil with a 156.21 disability as defined in section 125A.02 outside the district of 156.22 residence, excluding a pupil for whom an adjustment to special 156.23 education aid is calculated according to section 127A.47, 156.24 subdivision 7, paragraph (e), special education aid paid to the 156.25 resident district must be reduced by an amount equal to (1) the 156.26 actual cost of providing special instruction and services to the 156.27 pupil, including a proportionate amount for special 156.28 transportation and unreimbursed building lease and debt service 156.29 costs for facilities used primarily for special education, plus 156.30 (2) the amount of general education revenue and referendum aid 156.31 attributable to that pupil, minus (3) the amount of special 156.32 education aid for children with a disability received on behalf 156.33 of that child, minus (4) if the pupil receives special 156.34 instruction and services outside the regular classroom for more 156.35 than 60 percent of the school day, the amount of general 156.36 education revenue and referendum aid, excluding portions 157.1 attributable to district and school administration, district 157.2 support services, operations and maintenance, capital 157.3 expenditures, and pupil transportation, attributable to that 157.4 pupil for the portion of time the pupil receives instruction in 157.5 the regular classroom. General education revenue and referendum 157.6 aid attributable to a pupil must be calculated using the 157.7 resident district's average general education revenue and 157.8 referendum aid per adjusted pupil unit. If the resident 157.9 district's special education aid is insufficient to make the 157.10 full adjustment, the remaining adjustment shall be made to other 157.11 state aid due to the district. 157.12 Sec. 4. Minnesota Statutes 2004, section 125A.24, is 157.13 amended to read: 157.14 125A.24 [PARENT ADVISORY COUNCILS.] 157.15 In order to increase the involvement of parents of children 157.16 with disabilities in district policy making and decision making, 157.17 school districts must have a special education advisory council 157.18 that is incorporated into the district's special education 157.19 system plan. 157.20 (1) This advisory council may be established either for 157.21 individual districts or in cooperation with other districts who 157.22 are members of the same special education cooperative. 157.23 (2) A district may set up this council as a subgroup of an 157.24 existing board, council, or committee. 157.25 (3) At least half of the designated council members must be 157.26 parents of students with a disability. The council must include 157.27 at least one member who is a parent of a nonpublic school 157.28 student with a disability or an employee of a nonpublic school 157.29 if a nonpublic school is located in the district. Each local 157.30 council must meet no less than once each year. The number of 157.31 members, frequency of meetings, and operational procedures are 157.32 to be locally determined. 157.33 Sec. 5. Minnesota Statutes 2004, section 125A.28, is 157.34 amended to read: 157.35 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 157.36 An Interagency Coordinating Council of at least 17, but not 158.1 more than 25 members is established, in compliance with Public 158.2 Law 102-119, section 682. The members must be appointed by the 158.3 governor. Council members must elect the council chair. The 158.4 representative of the commissioner may not serve as the chair. 158.5 The council must be composed of at least five parents, including 158.6 persons of color, of children with disabilities under age 12, 158.7 including at least three parents of a child with a disability 158.8 under age seven, five representatives of public or private 158.9 providers of services for children with disabilities under age 158.10 five, including a special education director, county social 158.11 service director, local Head Start director, and a community 158.12 health services or public health nursing administrator, one 158.13 member of the senate, one member of the house of 158.14 representatives, one representative of teacher preparation 158.15 programs in early childhood-special education or other 158.16 preparation programs in early childhood intervention, at least 158.17 one representative of advocacy organizations for children with 158.18 disabilities under age five, one physician who cares for young 158.19 children with special health care needs, one representative each 158.20 from the commissioners of commerce, education, health, human 158.21 services, a representative from the state agency responsible for 158.22 child care, and a representative from Indian health services or 158.23 a tribal council. Section 15.059, subdivisions 2 to 5, apply to 158.24 the council. The council must meet at least quarterly. 158.25 The council must address methods of implementing the state 158.26 policy of developing and implementing comprehensive, 158.27 coordinated, multidisciplinary interagency programs of early 158.28 intervention services for children with disabilities and their 158.29 families. 158.30 The duties of the council include recommending policies to 158.31 ensure a comprehensive and coordinated system of all state and 158.32 local agency services for children under age five with 158.33 disabilities and their families. The policies must address how 158.34 to incorporate each agency's services into a unified state and 158.35 local system of multidisciplinary assessment practices, 158.36 individual intervention plans, comprehensive systems to find 159.1 children in need of services, methods to improve public 159.2 awareness, and assistance in determining the role of interagency 159.3 early intervention committees. 159.4By September 1On the date that Minnesota Part C Annual 159.5 Performance Report is submitted to the federal Office of Special 159.6 Education, the council must recommend to the governor and the 159.7 commissioners of education, health, human services, commerce, 159.8 and employment and economic development policies for a 159.9 comprehensive and coordinated system. 159.10 Notwithstanding any other law to the contrary, the State 159.11 Interagency Coordinating Council expires on June 30,20052009. 159.12 Sec. 6. Minnesota Statutes 2004, section 125A.76, 159.13 subdivision 1, is amended to read: 159.14 Subdivision 1. [DEFINITIONS.] For the purposes of this 159.15 section, the definitions in this subdivision apply. 159.16 (a) "Base year" for fiscal year 1998 and later fiscal years 159.17 means the second fiscal year preceding the fiscal year for which 159.18 aid will be paid. 159.19 (b) "Basic revenue" has the meaning given it in section 159.20 126C.10, subdivision 2. For the purposes of computing basic 159.21 revenue pursuant to this section, each child with a disability 159.22 shall be counted as prescribed in section 126C.05, subdivision 1. 159.23 (c) "Essential personnel" means teachers, cultural 159.24 liaisons, related services, and support services staff providing 159.25 direct services to students. Essential personnel may also 159.26 include special education paraprofessionals or clericals 159.27 providing support to teachers and students by preparing 159.28 paperwork and making arrangements related to special education 159.29 compliance requirements, including parent meetings and 159.30 individual education plans. 159.31 (d) "Average daily membership" has the meaning given it in 159.32 section 126C.05. 159.33 (e) "Program growth factor" means1.0461.04 for fiscal 159.34year 2003years 2007 and 2008, and 1.0 for fiscal year20042009 159.35 and later. 159.36 Sec. 7. Minnesota Statutes 2004, section 125A.76, 160.1 subdivision 4, is amended to read: 160.2 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.]The state160.3total special education aid for fiscal year 2004 equals160.4$530,642,000.The state total special education aid for fiscal 160.5 year 2005 equals $529,164,000. The state total special 160.6 education aid for later fiscal years equals: 160.7 (1) the state total special education aid for the preceding 160.8 fiscal year; times 160.9 (2)the program growth factor; times160.10(3)the ratio of the state total average daily membership 160.11 for the current fiscal year to the state total average daily 160.12 membership for the preceding fiscal year. 160.13 Sec. 8. Minnesota Statutes 2004, section 125A.76, is 160.14 amended by adding a subdivision to read: 160.15 Subd. 5a. [SPECIAL EDUCATION LEVY REVENUE.] (a) For fiscal 160.16 year 2007, the state total special education revenue equals the 160.17 state total special education aid times the program growth 160.18 factor. For fiscal year 2008 and later, the state total special 160.19 education revenue equals: 160.20 (1) the state total special education revenue for the 160.21 preceding fiscal year, times 160.22 (2) the program growth factor, times 160.23 (3) the ratio of the state total average daily membership 160.24 for the current fiscal year to the state total average daily 160.25 membership for the preceding fiscal year. 160.26 (b) For fiscal year 2007 and later, the state total special 160.27 education levy revenue equals the difference between the state 160.28 total special education revenue and the state total special 160.29 education aid. 160.30 (c) For fiscal year 2007 and later, the special education 160.31 levy revenue for a school district, charter school, or state 160.32 academy equals the product of the state total special education 160.33 levy revenue times the ratio of the school district, charter 160.34 school, or state academy's special education aid to the state 160.35 total special education aid. 160.36 Sec. 9. Minnesota Statutes 2004, section 125A.76, is 161.1 amended by adding a subdivision to read: 161.2 Subd. 5b. [SPECIAL EDUCATION LEVY.] To obtain special 161.3 education levy revenue for fiscal year 2007 and later, a 161.4 district may levy an amount not more than the product of its 161.5 special education levy revenue for the fiscal year times the 161.6 lesser of one or the ratio of its adjusted net tax capacity per 161.7 adjusted pupil unit to $5,913. 161.8 Sec. 10. Minnesota Statutes 2004, section 125A.76, is 161.9 amended by adding a subdivision to read: 161.10 Subd. 5c. [SPECIAL EDUCATION LEVY EQUALIZATION AID.] (a) 161.11 For fiscal year 2007 and later, a school district's special 161.12 education levy equalization aid equals its special education 161.13 levy equalization revenue minus its special education levy times 161.14 the ratio of the actual amount levied to the permitted levy. 161.15 (b) The special education levy equalization aid for a 161.16 charter school or a state academy equals the charter school or 161.17 state academy's special education levy revenue. 161.18 Sec. 11. Minnesota Statutes 2004, section 125A.79, 161.19 subdivision 1, is amended to read: 161.20 Subdivision 1. [DEFINITIONS.] For the purposes of this 161.21 section, the definitions in this subdivision apply. 161.22 (a) "Unreimbursed special education cost" means the sum of 161.23 the following: 161.24 (1) expenditures for teachers' salaries, contracted 161.25 services, supplies, equipment, and transportation services 161.26 eligible for revenue under section 125A.76; plus 161.27 (2) expenditures for tuition bills received under sections 161.28 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 161.29 under section 125A.76, subdivision 2; minus 161.30 (3) revenue for teachers' salaries, contracted services, 161.31 supplies, and equipment under section 125A.76; minus 161.32 (4) tuition receipts under sections 125A.03 to 125A.24 and 161.33 125A.65 for services eligible for revenue under section 125A.76, 161.34 subdivision 2. 161.35 (b)"General revenue" means for fiscal year 1996, the sum161.36of the general education revenue according to section 126C.10,162.1subdivision 1, as adjusted according to section 127A.47,162.2subdivision 7, plus the total referendum revenue according to162.3section 126C.17, subdivision 4. For fiscal years 1997 and162.4later,"General revenue" means the sum of the general education 162.5 revenue according to section 126C.10, subdivision 1, as adjusted 162.6 according to section 127A.47, subdivisions 7 and 8,plus the162.7total referendum revenueminus transportation sparsity revenue 162.8 minus total operating capital revenue. 162.9 (c) "Average daily membership" has the meaning given it in 162.10 section 126C.05. 162.11 (d) "Program growth factor" means 1.02 for fiscal year 162.12 2003, and 1.0 for fiscal year 2004 and later. 162.13 Sec. 12. Minnesota Statutes 2004, section 125A.79, 162.14 subdivision 5, is amended to read: 162.15 Subd. 5. [INITIAL EXCESS COST AID; FISCAL YEARS 2004 and 162.16 2005.] For fiscal years20022004 andlater2005, a district's 162.17 initial excess cost aid equals the greatest of: 162.18 (1) 75 percent of the difference between (i) the district's 162.19 unreimbursed special education cost and (ii) 4.36 percent of the 162.20 district's general revenue; 162.21 (2) 70 percent of the difference between (i) the increase 162.22 in the district's unreimbursed special education cost between 162.23 the base year as defined in section 125A.76, subdivision 1, and 162.24 the current year and (ii) 1.6 percent of the district's general 162.25 revenue; or 162.26 (3) zero. 162.27 Sec. 13. Minnesota Statutes 2004, section 125A.79, is 162.28 amended by adding a subdivision to read: 162.29 Subd. 5a. [INITIAL EXCESS COST AID.] For fiscal years 2006 162.30 and later, a district's initial excess cost aid equals the 162.31 greater of: 162.32 (1) 75 percent of the difference between (i) the district's 162.33 unreimbursed special education cost for the previous fiscal 162.34 year, and (ii) 4.36 percent of the district's general revenue 162.35 for the previous fiscal year; or 162.36 (2) zero. 163.1 Sec. 14. Minnesota Statutes 2004, section 125A.79, is 163.2 amended by adding a subdivision to read: 163.3 Subd. 5b. [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 163.4 years 2006 and later, a district's supplemental excess cost aid 163.5 equals the greater of: 163.6 (1) 75 percent of the difference between (i) the increase 163.7 in the district's unreimbursed special education excess cost 163.8 between the previous fiscal year and the current fiscal year, 163.9 and (ii) $80 times the district's adjusted marginal cost pupil 163.10 units for the current fiscal year; or 163.11 (2) zero. 163.12 (b) The state total supplemental excess cost aid for any 163.13 fiscal year must not exceed $2,000,000. If the state total 163.14 supplemental excess cost aid according to paragraph (a) exceeds 163.15 $2,000,000, the supplemental excess cost aid for each district 163.16 shall be reduced proportionately so that the state total equals 163.17 $2,000,000. 163.18 Sec. 15. Minnesota Statutes 2004, section 125A.79, 163.19 subdivision 6, is amended to read: 163.20 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 163.21The state total special education excess cost aid for fiscal163.22year 2004 equals $92,067,000.The state total special education 163.23 excess cost aid for fiscal year 2005 equals $91,811,000. The 163.24 state total special education excess cost aid for fiscal year 163.25 2006 equals $102,746,000. The state total special education 163.26 excess cost aid for fiscal year20062007 and later fiscal years 163.27 equals: 163.28 (1) the state total special education excess cost aid for 163.29 the preceding fiscal year; times 163.30 (2) the program growth factor; times 163.31 (3) the ratio of the state total average daily membership 163.32 for the current fiscal year to the state total average daily 163.33 membership for the preceding fiscal year. 163.34 Sec. 16. Minnesota Statutes 2004, section 125A.79, 163.35 subdivision 7, is amended to read: 163.36 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 164.1 A district's special education excess cost aid for fiscalyear164.22002 and lateryears 2004 and 2005 equals the state total 164.3 special education excess cost aid times the ratio of the 164.4 district's initial excess cost aid to the state total initial 164.5 excess cost aid. 164.6 (b) A district's special education excess cost aid for 164.7 fiscal year 2006 and later equals the sum of: 164.8 (1) the product of the difference between the state total 164.9 special education excess cost aid and the state total 164.10 supplemental excess cost aid times the ratio of the district's 164.11 initial excess cost aid to the state total initial excess cost 164.12 aid; and 164.13 (2) the district's supplemental excess cost aid according 164.14 to subdivision 5b. 164.15 Sec. 17. Minnesota Statutes 2004, section 127A.45, 164.16 subdivision 13, is amended to read: 164.17 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 164.18 subdivisions 11, 12, 12a, and 14, each fiscal year, all 164.19 education aids and credits in this chapter and chapters 120A, 164.20 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 164.21 section 273.1392, shall be paid at80 percentthe current year 164.22 aid payment percentage of the estimated entitlement during the 164.23 fiscal year of the entitlement. For the purposes of this 164.24 subdivision, a district's estimated entitlement for special 164.25 education excess cost aid under section 125A.79 for fiscal year 164.26 2005 equals 70 percent of the district's entitlement for the 164.27 second prior fiscal year. For the purposes of this subdivision, 164.28 a district's estimated entitlement for special education excess 164.29 cost aid under section 125A.79 for fiscal year 2006 and later 164.30 equals 75.5 percent of the district's entitlement for the 164.31 current fiscal year. The final adjustment payment, according to 164.32 subdivision 9, must be the amount of the actual entitlement, 164.33 after adjustment for actual data, minus the payments made during 164.34 the fiscal year of the entitlement. 164.35 [EFFECTIVE DATE.] This section is effective the day 164.36 following final enactment and applies to aid payments for fiscal 165.1 year 2005 and later. 165.2 Sec. 18. Minnesota Statutes 2004, section 127A.47, 165.3 subdivision 7, is amended to read: 165.4 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 165.5 education aid and special education aid for districts must be 165.6 adjusted for each pupil attending a nonresident district under 165.7 sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 165.8 124D.68. The adjustments must be made according to this 165.9 subdivision. 165.10 (a) General education aid paid to a resident district must 165.11 be reduced by an amount equal to the referendum equalization aid 165.12 attributable to the pupil in the resident district. 165.13 (b) General education aid paid to a district serving a 165.14 pupil in programs listed in this subdivision must be increased 165.15 by an amount equal to the referendum equalization aid 165.16 attributable to the pupil in the nonresident district. 165.17 (c) If the amount of the reduction to be made from the 165.18 general education aid of the resident district is greater than 165.19 the amount of general education aid otherwise due the district, 165.20 the excess reduction must be made from other state aids due the 165.21 district. 165.22 (d) For fiscal year 2006, the district of residence must 165.23 pay tuition to a district or an area learning center, operated 165.24 according to paragraph(e)(f), providing special instruction 165.25 and services to a pupil with a disability, as defined in section 165.26 125A.02, or a pupil, as defined in section 125A.51, who is 165.27 enrolled in a program listed in this subdivision. The tuition 165.28 must be equal to (1) the actual cost of providing special 165.29 instruction and services to the pupil, including a proportionate 165.30 amount fordebt service and for capital expenditure facilities165.31and equipment, and debt service but not including any amount for165.32 special transportation and unreimbursed building lease and debt 165.33 service costs for facilities used primarily for special 165.34 education, minus (2) if the pupil receives special instruction 165.35 and services outside the regular classroom for more than 60 165.36 percent of the school day, the amount of general education 166.1 revenue and referendum aid attributable to that pupil for the 166.2 portion of time the pupil receives special instruction and 166.3 services outside of the regular classroom, excluding portions 166.4 attributable to district and school administration, district 166.5 support services, operations and maintenance, capital 166.6 expenditures, and pupil transportation, minus (3) special 166.7 education aidbut not including any amount for transportation,166.8 attributable to that pupil, that is received by the district 166.9 providing special instruction and services. For purposes of 166.10 this paragraph, general education revenue and referendum aid 166.11 attributable to a pupil must be calculated using the serving 166.12 district's average general education revenue and referendum aid 166.13 per adjusted pupil unit. 166.14 (e) For fiscal year 2007 and later, special education aid 166.15 paid to a resident district must be reduced by an amount equal 166.16 to (1) the actual cost of providing special instruction and 166.17 services, including special transportation and unreimbursed 166.18 building lease and debt service costs for facilities used 166.19 primarily for special education, for a pupil with a disability, 166.20 as defined in section 125A.02, or a pupil, as defined in section 166.21 125A.51, who is enrolled in a program listed in this 166.22 subdivision, minus (2) if the pupil receives special instruction 166.23 and services outside the regular classroom for more than 60 166.24 percent of the school day, the amount of general education 166.25 revenue and referendum aid attributable to that pupil for the 166.26 portion of time the pupil receives special instruction and 166.27 services outside of the regular classroom, excluding portions 166.28 attributable to district and school administration, district 166.29 support services, operations and maintenance, capital 166.30 expenditures, and pupil transportation, minus (3) special 166.31 education aid attributable to that pupil, that is received by 166.32 the district providing special instruction and services. For 166.33 purposes of this paragraph, general education revenue and 166.34 referendum aid attributable to a pupil must be calculated using 166.35 the serving district's average general education revenue and 166.36 referendum aid per adjusted pupil unit. Special education aid 167.1 paid to the district providing special instruction and services 167.2 for the pupil, or to the fiscal agent district for a 167.3 cooperative, must be increased by the amount of the reduction in 167.4 the aid paid to the resident district. If the resident 167.5 district's special education aid is insufficient to make the 167.6 full adjustment, the remaining adjustment shall be made to other 167.7 state aids due to the district. 167.8 (f) An area learning center operated by a service 167.9 cooperative, intermediate district, education district, or a 167.10 joint powers cooperative may elect through the action of the 167.11 constituent boards to charge the resident district tuition for 167.12 pupils rather than to have the general education revenue paid to 167.13 a fiscal agent school district. Except as provided in paragraph 167.14 (d) or (e), the district of residence must pay tuition equal to 167.15 at least 90 percent of the district average general education 167.16 revenue per pupil unit minus an amount equal to the product of 167.17 the formula allowance according to section 126C.10, subdivision 167.18 2, times .0485, calculated without basic skills revenue and 167.19 transportation sparsity revenue, times the number of pupil units 167.20 for pupils attending the area learning center, plus the amount 167.21 of compensatory revenue generated by pupils attending the area 167.22 learning center. 167.23 Sec. 19. Minnesota Statutes 2004, section 134.31, is 167.24 amended by adding a subdivision to read: 167.25 Subd. 5a. [ADVISORY COMMITTEE.] The commissioner shall 167.26 appoint an advisory committee of five members to advise the 167.27 staff of the Minnesota Library for the Blind and Physically 167.28 Handicapped on long-range plans and library services. Members 167.29 shall be people who use the library. Section 15.059 governs 167.30 this committee except that the committee shall not expire. 167.31 Sec. 20. Laws 2003, First Special Session chapter 9, 167.32 article 3, section 20, subdivision 6, as amended by Laws 2004, 167.33 chapter 272, article 1, section 16, is amended to read: 167.34 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 167.35 cost aid under Minnesota Statutes, section 125A.79, subdivision 167.36 7: 168.1 $92,605,000 ..... 2004 168.2$92,799,000$95,572,000 ..... 2005 168.3 The 2004 appropriation includes $41,754,000 for 2003 and 168.4 $50,851,000 for 2004. 168.5 The 2005 appropriation includes $41,216,000 for 2004 and 168.6$51,583,000$54,356,000 for 2005. 168.7 Of the state total excess cost aid for fiscal year 2005, 168.8 $150,000 shall be paid to Independent School District No. 2580, 168.9 East Central, for unfunded special education costs that would 168.10 otherwise be cross-subsidized with general education aid. For 168.11 purposes of Minnesota Statutes, section 125A.79, subdivision 7, 168.12 the state total excess cost aid used in calculating district 168.13 special education excess cost aid must be reduced by the amount 168.14 paid to Independent School District No. 2580, East Central. 168.15 [EFFECTIVE DATE.] This section is effective the day 168.16 following final enactment. 168.17 Sec. 21. [TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO 168.18 NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.] 168.19 Subdivision 1. [PURPOSE; ESTABLISHMENT.] A task force on 168.20 the delivery of special education services to nonpublic school 168.21 students by public school districts shall be established to 168.22 compare and evaluate how the individual needs of each child are 168.23 being met, if services are provided in the least restrictive 168.24 environment, and whether best practices and program efficiencies 168.25 are being used in the specific areas of transportation, location 168.26 of services, and shared time aid. 168.27 Subd. 2. [MEMBERS.] The governor shall appoint the members 168.28 of the task force from each of the following: 168.29 (1) two members from the Department of Education, one 168.30 representing special education programs and policy and one 168.31 representing district finances; 168.32 (2) two special education teachers with one member from a 168.33 public school and one member from a nonpublic school; 168.34 (3) two special education administrators with one member 168.35 from a public school and one member from a nonpublic school; 168.36 (4) two members with one from each of two special education 169.1 advocacy organizations; 169.2 (5) two parents of children receiving special education 169.3 services with one member from a public school and one member 169.4 from a nonpublic school; 169.5 (6) two elementary school principals with one member from a 169.6 public school and one member from a nonpublic school; 169.7 (7) two superintendents with one member from a public 169.8 school district and one member from a nonpublic school district; 169.9 (8) two school business officials with one from a public 169.10 school and one from a nonpublic school; and 169.11 (9) two school board officials with one from a public 169.12 school and one from a nonpublic school. 169.13 The task force may select additional members to work on the 169.14 task force. The commissioner of education shall provide 169.15 necessary materials and assistance. 169.16 Subd. 3. [REPORT.] The task force shall submit a report by 169.17 January 15, 2006, to the house of representatives and senate 169.18 committees having jurisdiction over education on the delivery of 169.19 special education services to nonpublic school students by 169.20 public school districts, to compare and evaluate how the 169.21 individual needs of each child are being met in the least 169.22 restrictive environment, and whether best practices and program 169.23 efficiencies are being used. 169.24 Subd. 4. [EXPIRATION.] This section expires January 31, 169.25 2006. 169.26 [EFFECTIVE DATE.] This section is effective the day 169.27 following final enactment. 169.28 Sec. 22. [APPROPRIATIONS.] 169.29 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 169.30 indicated in this section are appropriated from the general fund 169.31 to the Department of Education for the fiscal years designated. 169.32 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 169.33 education aid under Minnesota Statutes, section 125A.75: 169.34 $528,846,000 ..... 2006 169.35 $527,446,000 ..... 2007 169.36 The 2006 appropriation includes $83,078,000 for 2005 and 170.1 $445,768,000 for 2006. 170.2 The 2007 appropriation includes $83,019,000 for 2006 and 170.3 $444,427,000 for 2007. 170.4 Subd. 3. [SPECIAL EDUCATION; REGULAR EQUALIZATION 170.5 AID.] For special education regular equalization aid: 170.6 $2,176,000 ..... 2007 170.7 The 2007 appropriation includes $0 for 2006 and $2,176,000 170.8 for 2007. 170.9 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 170.10 under Minnesota Statutes, section 125A.75, subdivision 3, for 170.11 children with disabilities placed in residential facilities 170.12 within the district boundaries for whom no district of residence 170.13 can be determined: 170.14 $2,212,000 ..... 2006 170.15 $2,615,000 ..... 2007 170.16 If the appropriation for either year is insufficient, the 170.17 appropriation for the other year is available. 170.18 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 170.19 teacher travel for home-based services under Minnesota Statutes, 170.20 section 125A.75, subdivision 1: 170.21 $ 187,000 ..... 2006 170.22 $ 195,000 ..... 2007 170.23 The 2006 appropriation includes $28,000 for 2005 and 170.24 $159,000 for 2006. 170.25 The 2007 appropriation includes $29,000 for 2006 and 170.26 $166,000 for 2007. 170.27 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 170.28 cost aid under Minnesota Statutes, section 125A.79, subdivision 170.29 7: 170.30 $102,782,000 ..... 2006 170.31 $102,483,000 ..... 2007 170.32 The 2006 appropriation includes $37,455,000 for 2005 and 170.33 $65,327,000 for 2006. 170.34 The 2007 appropriation includes $37,339,000 for 2006 and 170.35 $65,144,000 for 2007. 170.36 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 171.1 paying the costs a district incurs under Minnesota Statutes, 171.2 section 125A.75, subdivision 8: 171.3 $ 17,000 ..... 2006 171.4 $ 17,000 ..... 2007 171.5 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 171.6 transition programs for children with disabilities under 171.7 Minnesota Statutes, section 124D.454: 171.8 $8,788,000 ..... 2006 171.9 $8,765,000 ..... 2007 171.10 The 2006 appropriation includes $1,380,000 for 2005 and 171.11 $7,408,000 for 2006. 171.12 The 2007 appropriation includes $1,379,000 for 2006 and 171.13 $7,386,000 for 2007. 171.14 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 171.15 reimbursing serving school districts for unreimbursed eligible 171.16 expenditures attributable to children placed in the serving 171.17 school district by court action under Minnesota Statutes, 171.18 section 125A.79, subdivision 4: 171.19 $ 65,000 ..... 2006 171.20 $ 70,000 ..... 2007 171.21 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 171.22 special education out-of-state tuition according to Minnesota 171.23 Statutes, section 125A.79, subdivision 8: 171.24 $ 250,000 ..... 2006 171.25 $ 250,000 ..... 2007 171.26 ARTICLE 4 171.27 FACILITIES AND TECHNOLOGY 171.28 Section 1. Minnesota Statutes 2004, section 123B.53, 171.29 subdivision 1, is amended to read: 171.30 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 171.31 section, the eligible debt service revenue of a district is 171.32 defined as follows: 171.33 (1) the amount needed to produce between five and six 171.34 percent in excess of the amount needed to meet when due the 171.35 principal and interest payments on the obligations of the 171.36 district for eligible projects according to subdivision 2, 172.1 including the amounts necessary for repayment of energy loans 172.2 according to section 216C.37 or sections 298.292 to 298.298, 172.3 debt service loans and capital loans, lease purchase payments 172.4 under section 126C.40, subdivision 2, alternative facilities 172.5 levies under section 123B.59, subdivision 5, minus 172.6 (2) the amount of debt service excess levy reduction for 172.7 that school year calculated according to the procedure 172.8 established by the commissioner. 172.9 (b) The obligations in this paragraph are excluded from 172.10 eligible debt service revenue: 172.11 (1) obligations under section 123B.61; 172.12 (2) the part of debt service principal and interest paid 172.13 from the taconite environmental protection fund or northeast 172.14 Minnesota economic protection trust; 172.15 (3) obligations issued under Laws 1991, chapter 265, 172.16 article 5, section 18, as amended by Laws 1992, chapter 499, 172.17 article 5, section 24; and 172.18 (4) obligations under section 123B.62. 172.19 (c) For purposes of this section, if a preexisting school 172.20 district reorganized under sections 123A.35 to 123A.43, 123A.46, 172.21 and 123A.48 is solely responsible for retirement of the 172.22 preexisting district's bonded indebtedness, capital loans or 172.23 debt service loans, debt service equalization aid must be 172.24 computed separately for each of the preexisting districts. 172.25 (d) For purposes of this section, the adjusted net tax 172.26 capacity determined according to section 127A.48 shall be 172.27 adjusted to include a portion of the tax capacity of property 172.28 generally exempted from ad valorem taxes under section 272.02, 172.29 subdivisions 64 and 65, equal to the product of that tax 172.30 capacity times the ratio of the eligible debt service revenue 172.31 attributed to general obligation bonds to the total eligible 172.32 debt service revenue of the district. 172.33 Sec. 2. Minnesota Statutes 2004, section 123B.54, is 172.34 amended to read: 172.35 123B.54 [DEBT SERVICE APPROPRIATION.] 172.36 (a)$28,367,000$21,624,000 in fiscal year20062008 and 173.1$25,560,000$20,403,000 in fiscal year20072009 and later are 173.2 appropriated from the general fund to the commissioner of 173.3 education for payment of debt service equalization aid under 173.4 section 123B.53. 173.5 (b) The appropriations in paragraph (a) must be reduced by 173.6 the amount of any money specifically appropriated for the same 173.7 purpose in any year from any state fund. 173.8 Sec. 3. Minnesota Statutes 2004, section 123B.59, 173.9 subdivision 3, is amended to read: 173.10 Subd. 3. [BOND AUTHORIZATION.] (a) A school district may 173.11 issue general obligation bonds under this section to finance 173.12 facilities plans approved by its board and the commissioner. 173.13 Chapter 475, except sections 475.58 and 475.59, must be complied 173.14 with. The district may levy under subdivision 5 for the debt 173.15 service revenue. The authority to issue bonds under this 173.16 section is in addition to any bonding authority authorized by 173.17 this chapter, or other law. The amount of bonding authority 173.18 authorized under this section must be disregarded in calculating 173.19 the bonding or net debt limits of this chapter, or any other law 173.20 other than section 475.53, subdivision 4. 173.21 (b) At least 20 days beforea district issues bondsthe 173.22 earliest of solicitation of bids, the issuance of bonds, or the 173.23 final certification of levies underthissubdivision 5,itthe 173.24 district must publish notice of the intended projects, the 173.25 amount of the bond issue,andthe total amount of district 173.26 indebtedness, and the commissioner's review and comment, if 173.27 applicable. 173.28 Sec. 4. Minnesota Statutes 2004, section 123B.59, 173.29 subdivision 3a, is amended to read: 173.30 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 173.31 levy under this section to finance the portion of facilities 173.32 plans approved by its board and the commissioner that are not 173.33 financed through bond issues according to subdivision 3. 173.34 (b) At least 20 days before a final district certification 173.35 of levies underthissubdivision 5,itthe district must 173.36 publish notice of the intended projects, including the total 174.1 estimated project cost, and the commissioner's review and 174.2 comment, if applicable. 174.3 Sec. 5. Minnesota Statutes 2004, section 123B.63, 174.4 subdivision 2, is amended to read: 174.5 Subd. 2. [USES OF THE ACCOUNT.] Money in the capital 174.6 project referendum account must be used only for the purposes 174.7 specified in section 126C.10, subdivision 14, for operating 174.8 capital revenue, including the costs of acquisition and 174.9 betterment for a project that has been reviewed under section 174.10 123B.71 and has been approved according to subdivision 3. 174.11 Sec. 6. [123B.591] [DEFERRED MAINTENANCE REVENUE.] 174.12 Subdivision 1. [ELIGIBILITY.] (a) An independent or 174.13 special school district that does not qualify to participate in 174.14 the alternative facilities bonding and levy under section 174.15 123B.59, subdivision 1, paragraph (a), is eligible to receive 174.16 deferred maintenance revenue. 174.17 (b) Deferred maintenance revenue is subject to reverse 174.18 referendum according to section 126C.48, subdivision 9. 174.19 Subd. 2. [DEFERRED MAINTENANCE REVENUE.] The deferred 174.20 maintenance revenue for an eligible school district equals the 174.21 product of $45 times the adjusted marginal cost pupil units for 174.22 the school year times the lesser of one or the ratio of the 174.23 district's average age of building space to 35 years. 174.24 Subd. 3. [DEFERRED MAINTENANCE LEVY.] To obtain deferred 174.25 maintenance revenue for fiscal year 2007 and later, a district 174.26 may levy an amount not more than the product of its deferred 174.27 maintenance revenue for the fiscal year times the lesser of one 174.28 or the ratio of its adjusted net tax capacity per adjusted 174.29 marginal cost pupil unit to $5,913. 174.30 Subd. 4. [DEFERRED MAINTENANCE AID.] For fiscal year 2007 174.31 and later, a district's deferred maintenance aid equals its 174.32 deferred maintenance revenue minus its deferred maintenance levy 174.33 times the ratio of the actual amount levied to the permitted 174.34 levy. 174.35 Subd. 5. [RESERVE ACCOUNT.] Deferred maintenance revenue 174.36 must be maintained in a reserve account within the general fund. 175.1 Deferred maintenance revenue may be used only for expenditures 175.2 that would be eligible for alternative facilities bonding and 175.3 levy revenue under section 123B.59, subdivision 2, paragraph 175.4 (a), if the district qualified for that revenue under section 175.5 123B.59, subdivision 1, paragraph (a). 175.6 [EFFECTIVE DATE.] This section is effective for revenue for 175.7 fiscal year 2007. 175.8 Sec. 7. Minnesota Statutes 2004, section 123B.71, 175.9 subdivision 8, is amended to read: 175.10 Subd. 8. [REVIEW AND COMMENT.] A school district, a 175.11 special education cooperative, or a cooperative unit of 175.12 government, as defined in section 123A.24, subdivision 2, must 175.13 not initiate an installment contract for purchase or a lease 175.14 agreement, hold a referendum for bonds, nor solicit bids for new 175.15 construction, expansion, or remodeling of an educational 175.16 facility that requires an expenditure in excess of $500,000 per 175.17 school site prior to review and comment by the commissioner. 175.18 The commissioner may exempt a facility maintenance project 175.19 funded with general education aid and levy, alternative 175.20 facilities bonding and levy program, or health and safety 175.21 revenue from this provision after reviewing a written request 175.22 from a school district describing the scope of work. A school 175.23 board shall not separate portions of a single project into 175.24 components to avoid the requirements of this subdivision. 175.25 Sec. 8. Minnesota Statutes 2004, section 123B.71, 175.26 subdivision 12, is amended to read: 175.27 Subd. 12. [PUBLICATION.] (a) At least 20 days but not more 175.28 than 60 days before a referendum for bonds or solicitation of 175.29 bids for a project that has received a positive or unfavorable 175.30 review and comment under section 123B.70, the school board shall 175.31 publish the commissioner's review and comment of that project in 175.32 the legal newspaper of the district. Supplementary information 175.33 shall be available to the public. 175.34 (b) The publication requirement in paragraph (a) does not 175.35 apply to alternative facilities projects approved under section 175.36 123B.59. Publication for alternative facilities projects shall 176.1 be as specified in section 123B.59, subdivisions 3 and 3a. 176.2 Sec. 9. [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 176.3 EQUITY AID.] 176.4 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 176.5 charter school shall submit its actual 176.6 telecommunications/Internet access costs for the previous fiscal 176.7 year, adjusted for any e-rate revenue received, to the 176.8 department by August 15 of each year as prescribed by the 176.9 commissioner. Costs eligible for reimbursement under this 176.10 program are limited to the following: 176.11 (1) ongoing or recurring telecommunications/Internet access 176.12 costs associated with Internet access, data lines, and video 176.13 links providing: 176.14 (i) the equivalent of one data line, video link, or 176.15 integrated data/video link that relies on a transport medium 176.16 that operates at a minimum speed of 1.544 megabytes per second 176.17 (T1) for each elementary school, middle school, or high school 176.18 under section 120A.05, subdivisions 9, 11, and 13, including the 176.19 recurring telecommunications line lease costs and ongoing 176.20 Internet access service fees; or 176.21 (ii) the equivalent of one data line or video circuit, or 176.22 integrated data/video link that relies on a transport medium 176.23 that operates at a minimum speed of 1.544 megabytes per second 176.24 (T1) for each district, including recurring telecommunications 176.25 line lease costs and ongoing Internet access service fees; 176.26 (2) recurring costs of contractual or vendor-provided 176.27 maintenance on the school district's wide area network to the 176.28 point of presence at the school building up to the router, 176.29 codec, or other service delivery equipment located at the point 176.30 of presence termination at the school or school district; 176.31 (3) recurring costs of cooperative, shared arrangements for 176.32 regional delivery of telecommunications/Internet access between 176.33 school districts, postsecondary institutions, and public 176.34 libraries including network gateways, peering points, regional 176.35 network infrastructure, Internet2 access, and network support, 176.36 maintenance, and coordination; and 177.1 (4) service provider installation fees for installation of 177.2 new telecommunications lines or increased bandwidth. 177.3 (b) Costs not eligible for reimbursement under this program 177.4 include: 177.5 (1) recurring costs of school district staff providing 177.6 network infrastructure support; 177.7 (2) recurring costs associated with voice and standard 177.8 telephone service; 177.9 (3) costs associated with purchase of network hardware, 177.10 telephones, computers, or other peripheral equipment needed to 177.11 deliver telecommunications access to the school or school 177.12 district; 177.13 (4) costs associated with laying fiber for 177.14 telecommunications access; 177.15 (5) costs associated with wiring school or school district 177.16 buildings; 177.17 (6) costs associated with purchase, installation, or 177.18 purchase and installation of Internet filtering; and 177.19 (7) costs associated with digital content, including 177.20 on-line learning or distance learning programming, and 177.21 information databases. 177.22 Subd. 2. [E-RATES.] To be eligible for aid under this 177.23 section, a district or charter school is required to file an 177.24 e-rate application either separately or through its 177.25 telecommunications access cluster and have a current technology 177.26 plan on file with the department. Discounts received on 177.27 telecommunications expenditures shall be reflected in the costs 177.28 submitted to the department for aid under this section. 177.29 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 177.30 develop criteria for approving costs submitted by school 177.31 districts and charter schools under subdivision 1. 177.32 Subd. 4. [DISTRICT AID.] A district or charter school's 177.33 Internet access equity aid equals 90 percent of the district or 177.34 charter school's approved cost for the previous fiscal year 177.35 according to subdivision 1 exceeding $15 times the district's 177.36 adjusted marginal cost pupil units for the previous fiscal year. 178.1 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 178.2 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 178.3 formal request by or on behalf of a nonpublic school, not 178.4 including home schools, located in that district or area, 178.5 ongoing or recurring telecommunications access services to the 178.6 nonpublic school either through existing district providers or 178.7 through separate providers. 178.8 (b) The amount of district aid for telecommunications 178.9 access services for each nonpublic school under this subdivision 178.10 equals the lesser of: 178.11 (1) 90 percent of the nonpublic school's approved cost for 178.12 the previous fiscal year according to subdivision 1 exceeding 178.13 $10 times the number of weighted pupils enrolled at the 178.14 nonpublic school as of October 1 of the previous school year; or 178.15 (2) the product of the district's aid per pupil unit 178.16 according to subdivision 4 times the number of weighted pupils 178.17 enrolled at the nonpublic school as of October 1 of the previous 178.18 school year. 178.19 (c) For purposes of this subdivision, nonpublic school 178.20 pupils shall be weighted by grade level using the weighting 178.21 factors defined in section 126C.05, subdivision 1. 178.22 (d) Each year, a district providing services under 178.23 paragraph (a) may claim up to five percent of the aid determined 178.24 in paragraph (b) for costs of administering this subdivision. 178.25 No district may expend an amount for these telecommunications 178.26 access services which exceeds the amount allocated under this 178.27 subdivision. The nonpublic school is responsible for the 178.28 Internet access costs not covered by this section. 178.29 (e) At the request of a nonpublic school, districts may 178.30 allocate the amount determined in paragraph (b) directly to the 178.31 nonpublic school to pay for or offset the nonpublic school's 178.32 costs for telecommunications access services, however, the 178.33 amount allocated directly to the nonpublic school may not exceed 178.34 the actual amount of the school's ongoing or recurring 178.35 telecommunications access costs. 178.36 Subd. 6. [SEVERABILITY.] If any portion of this section is 179.1 found by a court to be unconstitutional, the remaining portions 179.2 of the section shall remain in effect. 179.3 [EFFECTIVE DATE.] This section is effective for revenue for 179.4 fiscal year 2006. 179.5 Sec. 10. Minnesota Statutes 2004, section 126C.63, 179.6 subdivision 5, is amended to read: 179.7 Subd. 5. [LEVY.] "Levy" means a district's net debt 179.8 service levy after the reduction of debt service equalization 179.9 aid under section 123B.53, subdivision 6. For taxes payable in 179.10 2003 and later, each district's maximum effort debt service levy 179.11 for purposes of subdivision 8, must be reduced by an equal 179.12 number of percentage points if the commissioner of finance 179.13 determines that the levy reduction will not result in a payment 179.14 from the general fund in the state treasury according to section 179.15 16A.641, as would be required under section 126C.72, subdivision 179.16 3. A district's levy that is adjusted under this section must 179.17 not be reduced below30.125 percent of the district's adjusted 179.18 net tax capacity. 179.19 Sec. 11. Minnesota Statutes 2004, section 126C.63, 179.20 subdivision 8, is amended to read: 179.21 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 179.22 effort debt service levy" means the lesser of: 179.23 (1) a levy in whichever of the following amounts is 179.24 applicable: 179.25 (i) in any district receiving a debt service loan for a 179.26 debt service levy payable in 2002 and thereafter, or granted a 179.27 capital loan after January 1, 2002, a levy in total dollar 179.28 amount computed at a rate of4032 percent of adjusted net tax 179.29 capacity for taxes payable in 2002 and thereafter; 179.30 (ii) in any district receiving a debt service loan for a 179.31 debt service levy payable in 2001 or earlier, or granted a 179.32 capital loan before January 2,20012002, a levy in a total 179.33 dollar amount computed at a rate of3228 percent of adjusted 179.34 net tax capacity for taxes payable in 2002 and thereafter; or 179.35 (2) a levy in any district for which a capital loan was 179.36 approved prior to August 1, 1981, a levy in a total dollar 180.1 amount equal to the sum of the amount of the required debt 180.2 service levy and an amount which when levied annually will in 180.3 the opinion of the commissioner be sufficient to retire the 180.4 remaining interest and principal on any outstanding loans from 180.5 the state within 30 years of the original date when the capital 180.6 loan was granted. 180.7 (b) The board in any district affected by the provisions of 180.8 paragraph (a), clause (2), may elect instead to determine the 180.9 amount of its levy according to the provisions of paragraph (a), 180.10 clause (1). If a district's capital loan is not paid within 30 180.11 years because it elects to determine the amount of its levy 180.12 according to the provisions of paragraph (a), clause (2), the 180.13 liability of the district for the amount of the difference 180.14 between the amount it levied under paragraph (a), clause (2), 180.15 and the amount it would have levied under paragraph (a), clause 180.16 (1), and for interest on the amount of that difference, must not 180.17 be satisfied and discharged pursuant to Minnesota Statutes 1988, 180.18 or an earlier edition of Minnesota Statutes if applicable, 180.19 section 124.43, subdivision 4. 180.20 Sec. 12. Laws 1996, chapter 412, article 5, section 24, is 180.21 amended to read: 180.22 Sec. 24. [BONDS PAID FROM TACONITE PRODUCTION TAX 180.23 REVENUES.] 180.24 Subdivision 1. [REFUNDING BONDS.] The appropriation of 180.25 funds from the distribution of taconite production tax revenues 180.26 to the taconite environmental protection tax fund and the 180.27 northeast Minnesota economic protection fund made by Laws 1988, 180.28 chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 180.29 329, article 5, section 20, Laws 1990, chapter 604, article 8, 180.30 section 13, Laws 1992, chapter 499, article 5, section 29,and180.31by sections 18 to 20Laws 1996, chapter 412, article 5, sections 180.32 20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to 180.33 26, shall continue to apply to bonds issued under Minnesota 180.34 Statutes, chapter 475, to refund bonds originally issued 180.35 pursuant to those chapters. 180.36 Subd. 2. [LOCAL PAYMENTS.] School districts that are 181.1 required in Laws 1988, chapter 718, article 7, sections 62 and 181.2 63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, 181.3 chapter 604, article 8, section 13, Laws 1992, chapter 499, 181.4 article 5, section 29,and by sections 18 to 20Laws 1996, 181.5 chapter 412, article 5, sections 20 to 22, and Laws 2000, 181.6 chapter 489, article 5, sections 24 to 26, to impose levies to 181.7 pay debt service on the bonds issued under those provisions to 181.8 the extent the principal and interest on the bonds is not paid 181.9 by distributions from the taconite environmental protection fund 181.10 and the northeast Minnesota economic protection trust, may pay 181.11 their portion of the principal and interest from any funds 181.12 available to them. To the extent a school district uses funds 181.13 other than the proceeds of a property tax levy to pay its share 181.14 of the principal and interest on the bonds, the requirement to 181.15 impose a property tax to pay the local share does not apply to 181.16 the school district. 181.17 [EFFECTIVE DATE.] This section is effective the day 181.18 following final enactment. 181.19 Sec. 13. [LEVY; GLENCOE-SILVER LAKE.] 181.20 For taxes payable in 2006 only, Independent School District 181.21 No. 2859, Glencoe-Silver Lake, may levy an amount up to $81,276. 181.22 Of that amount, $63,850 is for recovering the cost of replacing 181.23 a gymnasium floor at Lakeside Elementary School resulting from 181.24 storm damage and $17,426 is for recovering the cost of the 181.25 Lincoln Junior High School water service line and associated 181.26 work. 181.27 [EFFECTIVE DATE.] This section is effective for taxes 181.28 payable in 2006. 181.29 Sec. 14. [MOUNDS VIEW; SALE OF PROPERTY.] 181.30 (a) Independent School District No. 621, Mounds View, must 181.31 establish a trust fund for the proceeds from its sale of the 181.32 Hills of Oaks property in Shoreview, Minnesota. Notwithstanding 181.33 Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 181.34 2004, the district must permanently transfer the proceeds of the 181.35 sale from the reserved operating capital account in its general 181.36 fund to the trust fund. If the sale of the Hills of Oaks 182.1 property has not been completed and the proceeds have not been 182.2 deposited on or by June 30, 2004, in the reserved operating 182.3 capital account, then when the sale is completed, the school 182.4 district must deposit the proceeds from the sale directly into 182.5 the trust fund. 182.6 (b) The district may only use the interest from the trust 182.7 fund proceeds from the sale of the property described in 182.8 paragraph (a) for general operating expenses. 182.9 [EFFECTIVE DATE.] This section is effective the day 182.10 following final enactment. 182.11 Sec. 15. [APPROPRIATIONS.] 182.12 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 182.13 indicated in this section are appropriated from the general fund 182.14 to the Department of Education for the fiscal years designated. 182.15 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 182.16 safety aid according to Minnesota Statutes, section 123B.57, 182.17 subdivision 5: 182.18 $ 802,000 ..... 2006 182.19 $ 578,000 ..... 2007 182.20 The 2006 appropriation includes $211,000 for 2005 and 182.21 $591,000 for 2006. 182.22 The 2007 appropriation includes $109,000 for 2006 and 182.23 $469,000 for 2007. 182.24 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 182.25 according to Minnesota Statutes, section 123B.53, subdivision 6: 182.26 $25,654,000 ..... 2006 182.27 $24,134,000 ..... 2007 182.28 The 2006 appropriation includes $4,654,000 for 2005 and 182.29 $21,000,000 for 2006. 182.30 The 2007 appropriation includes $3,911,000 for 2006 and 182.31 $20,223,000 for 2007. 182.32 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 182.33 alternative facilities bonding aid, according to Minnesota 182.34 Statutes, section 123B.59, subdivision 1: 182.35 $19,287,000 ..... 2006 182.36 $19,287,000 ..... 2007 183.1 The 2006 appropriation includes $3,028,000 for 2005 and 183.2 $16,259,000 for 2006. 183.3 The 2007 appropriation includes $3,028,000 for 2006 and 183.4 $16,259,000 for 2007. 183.5 Subd. 5. [TELECOMMUNICATIONS INTERNET ACCESS AID.] For 183.6 telecommunications Internet access aid: 183.7 $4,500,000 ..... 2006 183.8 $4,600,000 ..... 2007 183.9 Subd. 6. [DEFERRED MAINTENANCE AID.] For deferred 183.10 maintenance aid under Minnesota Statutes, section 123B.591: 183.11 $2,684,000 ..... 2007 183.12 The 2007 appropriation includes $0 for 2006 and $2,684,000 183.13 for 2007. 183.14 ARTICLE 5 183.15 NUTRITION AND ACCOUNTING 183.16 Section 1. [123B.748] [REGULAR CLASSROOM EXPENDITURES.] 183.17 Subdivision 1. [DEFINITIONS.] "Direct classroom 183.18 expenditures" means the amount defined by the National Center of 183.19 Educational Statistics of the United States Department of 183.20 Education. "Total operating expenditures" has the meaning given 183.21 it under the uniform financial accounting and reporting 183.22 standards. Total operating expenditures include all operating 183.23 expenditures incurred for the benefit of elementary and 183.24 secondary education during that school year, except capital 183.25 expenditures. Community education, construction, debt service, 183.26 and trust and agency expenditures are nonoperating expenditures. 183.27 Subd. 2. [EXPECTED EXPENDITURE LEVEL.] A school district 183.28 must spend at least 65 percent of its total operating 183.29 expenditures on direct classroom expenditures. If a school 183.30 district's direct classroom expenditures in fiscal year 2005 are 183.31 less than 65 percent of its total operating expenditures, the 183.32 district must increase its direct classroom expenditures by at 183.33 least two percentage points per year beginning in fiscal year 183.34 2006. 183.35 Subd. 3. [SUPERINTENDENT VERIFICATION.] A superintendent 183.36 must include in the audited financial statements submitted to 184.1 the commissioner under section 123B.77 a letter signed by the 184.2 superintendent certifying the percent of the district's total 184.3 operating expenditures that were actually spent on direct 184.4 classroom expenditures for that school year. 184.5 Subd. 4. [WAIVER.] A school district that is unable to 184.6 meet the expenditure standards established under subdivision 2 184.7 may apply to the commissioner for a waiver. The waiver request 184.8 must list the reasons why the district's direct classroom 184.9 expenditures cannot meet the requirements of subdivision 2 and 184.10 describe the changes the district intends to meet in the 184.11 subsequent year in order to meet the direct classroom 184.12 instruction requirements. The commissioner must grant or deny a 184.13 waiver request within 60 days of receiving the request. 184.14 [EFFECTIVE DATE.] This section is effective July 1, 2005, 184.15 for the 2005-2006 school year. 184.16 Sec. 2. Minnesota Statutes 2004, section 123B.749, is 184.17 amended to read: 184.18 123B.749 [STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.] 184.19 (a) Prior to approving a collective bargaining agreement 184.20 that does not result from an interest arbitration decision, a 184.21 school board must determine by board resolution that the 184.22 proposed agreement will not cause structural imbalance in the 184.23 district's budget during the period of the agreement. 184.24 (b) A school board may only determine that an agreement 184.25 will not cause structural imbalance if expenditures will not 184.26 exceed available funds, taking into account: 184.27 (1) current state aid formulas; and 184.28 (2) reasonable and comprehensive projections of ongoing 184.29 revenues and expenditures for the period of the agreement.It184.30is expected thatOnetime revenue may not be used for ongoing 184.31 expenditures. Any amount in excess of the board's guideline for 184.32 the district's general fund balance is not onetime revenue for 184.33 the purposes of this section. The school board must make 184.34 available with the resolution a summary of the projections and 184.35 calculations supporting the determination. The projections and 184.36 calculations must include state aid formulas, pupil units, and 185.1 employee costs, including the terms of labor agreements, 185.2 including the agreement under consideration, fringe benefits, 185.3 severance pay, and staff changes. 185.4 (c) In addition to the determination required in paragraph 185.5 (a), the school board must project revenues, expenditures, and 185.6 fund balances forone yeartwo years following the period of the 185.7 agreement. The projections must include the categories of 185.8 information described in paragraph (b), be reasonable and 185.9 comprehensive, and reference current state aid formulas. 185.10 (d) All projections and calculations required by this 185.11 section and estimated district employee terminations must be 185.12 made available to the public prior toand, at, and after the 185.13 meeting where the resolution is adopted in a manner consistent 185.14 with state law on public notice and access to public data. 185.15 (e) In an interest arbitration, the district must submit, 185.16 and the exclusive bargaining representative may submit, proposed 185.17 determinations with supporting projections and calculations 185.18 consistent with paragraph (b) of the effect of the potential 185.19 decision on the structural balance of the district's budget. 185.20 The arbitrator must consider the potential effect of a decision 185.21 on the structural balance of the district's budget for the term 185.22 of the agreement. The arbitrator's decision must describe the 185.23 effect of the decision on the structural balance of the 185.24 district's budget in a manner consistent with paragraph (b). 185.25 The arbitrator's decision must also show the effect of the 185.26 decision on the school budget for one year following the term of 185.27 the contract at issue. Within 30 days of receipt of the 185.28 decision or when the board acts on the decision, whichever is 185.29 earlier, the school board must by resolution determine the 185.30 effect of the decision on the structural balance of its budget 185.31 for the term of the agreement consistent with paragraph (b). 185.32 (f) A copy of the resolution with the supporting 185.33 projections and calculations must be submitted to the 185.34 commissioner of education with the uniform collective bargaining 185.35 agreement settlement document within 30 days of adoption of the 185.36 resolution. The commissioner must develop a model form for use 186.1 by districts in reporting projections and calculations. The 186.2 commissioner must not accept any reports that fail to comply 186.3 with this section. The commissioner must make all resolutions, 186.4 projections, and calculations available to the public. 186.5 (g) Compliance with this section by itself is not an unfair 186.6 labor practice under section 179A.13, subdivision 2. 186.7 Sec. 3. Minnesota Statutes 2004, section 123B.75, 186.8 subdivision 5, is amended to read: 186.9 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 186.10 settlement revenue" means the current, delinquent, and 186.11 manufactured home property tax receipts collected by the county 186.12 and distributed to the school district. 186.13 (b)In June of 2003, the school district must recognize as186.14revenue, in the fund for which the levy was made, the lesser of:186.15(1) the sum of May, June, and July school district tax186.16settlement revenue received in that calendar year, plus general186.17education aid according to section 126C.13, subdivision 4,186.18received in July and August of that calendar year; or186.19(2) the sum of:186.20(i) 31 percent of the referendum levy certified according186.21to section 126C.17, in calendar year 2000; plus186.22(ii) the entire amount of the levy certified in the prior186.23calendar year according to section 124D.86, subdivision 4, for186.24school districts receiving revenue under sections 124D.86,186.25subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions186.261, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision186.272; 126C.457; and 126C.48, subdivision 6.186.28(c)For fiscal year 2004 and later years, in June of each 186.29 year, the school district must recognize as revenue, in the fund 186.30 for which the levy was made, the lesser of: 186.31 (1) the sum of May, June, and July school district tax 186.32 settlement revenue received in that calendar year, plus general 186.33 education aid according to section 126C.13, subdivision 4, 186.34 received in July and August of that calendar year; or 186.35 (2) the sum of: 186.36 (i) the greater of4548.6 percent of the referendum levy 187.1 certified according to section 126C.17, in the prior calendar 187.2 year or 31 percent of the referendum levy certified according to 187.3 section 126C.17, in calendar year 2000; plus 187.4 (ii) the entire amount of the levy certified in the prior 187.5 calendar year according to section 124D.86, subdivision 4, for 187.6 school districts receiving revenue under sections 124D.86, 187.7 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 187.8 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 187.9 2; 126C.457; and 126C.48, subdivision 6; plus 187.10 (iii)4548.6 percent of the amount of the levy certified 187.11 in the prior calendar year for the school district's general and 187.12 community service funds, plus or minus auditor's adjustments, 187.13 not including levy portions that are assumed by the state, that 187.14 remains after subtracting the referendum levy certified 187.15 according to section 126C.17 and the amount recognized according 187.16 to clause (ii). 187.17 Sec. 4. Minnesota Statutes 2004, section 124D.111, 187.18 subdivision 1, is amended to read: 187.19 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 187.20 year, the state must paydistricts participatingparticipants in 187.21 the national school lunch program the amount of eight cents for 187.22 each full paid, reduced, and free student lunch served to 187.23 studentsin the district. 187.24 [EFFECTIVE DATE.] This section is effective for fiscal year 187.25 2006. 187.26 Sec. 5. Minnesota Statutes 2004, section 124D.111, 187.27 subdivision 2, is amended to read: 187.28 Subd. 2. [APPLICATION.] A schooldistrictsdistrict, 187.29 charter school, nonpublic school, or other participant in the 187.30 national school lunch program shall apply to the department for 187.31 this payment on forms provided by the department. 187.32 [EFFECTIVE DATE.] This section is effective for fiscal year 187.33 2006. 187.34 Sec. 6. Minnesota Statutes 2004, section 124D.118, 187.35 subdivision 4, is amended to read: 187.36 Subd. 4. [REIMBURSEMENT.] In accordance with program 188.1 guidelines, the commissioner shall reimburse each participating 188.2 public or nonpublic schoolnine14 cents for each half-pint of 188.3 milk that is served to kindergarten students and is not part of 188.4 a school lunch or breakfast reimbursed under section 124D.111 or 188.5 124D.1158. 188.6 [EFFECTIVE DATE.] This section is effective for fiscal year 188.7 2006. 188.8 Sec. 7. Minnesota Statutes 2004, section 127A.42, 188.9 subdivision 2, is amended to read: 188.10 Subd. 2. [VIOLATIONS OF LAW.] The commissioner may reduce 188.11 or withhold the district's state aid for any school year 188.12 whenever the board of the district authorizes or permits 188.13 violations of law within the district by: 188.14 (1) employing a teacher who does not hold a valid teaching 188.15 license or permit in a public school; 188.16 (2) noncompliance with a mandatory rule of general 188.17 application promulgated by the commissioner in accordance with 188.18 statute, unless special circumstances make enforcement 188.19 inequitable, impose an extraordinary hardship on the district, 188.20 or the rule is contrary to the district's best interests; 188.21 (3) the district's continued performance of a contract made 188.22 for the rental of rooms or buildings for school purposes or for 188.23 the rental of any facility owned or operated by or under the 188.24 direction of any private organization, if the contract has been 188.25 disapproved, the time for review of the determination of 188.26 disapproval has expired, and no proceeding for review is 188.27 pending; 188.28 (4) any practice which is a violation of sections 1 and 2 188.29 of article 13 of the Constitution of the state of Minnesota; 188.30 (5) failure to reasonably provide for a resident pupil's 188.31 school attendance under Minnesota Statutes; 188.32 (6) noncompliance with state laws prohibiting 188.33 discrimination because of race, color, creed, religion, national 188.34 origin, sex, age, marital status, status with regard to public 188.35 assistance or disability, as defined in sections 363A.08 to 188.36 363A.19 and 363A.28, subdivision 10;or189.1 (7) using funds contrary to the statutory purpose of the 189.2 funds; or 189.3 (8) failing to submit a report under section 123B.749, 189.4 paragraph (f). 189.5 The reduction or withholding must be made in the amount and upon 189.6 the procedure provided in this section. 189.7 Sec. 8. Minnesota Statutes 2004, section 127A.45, 189.8 subdivision 2, is amended to read: 189.9 Subd. 2. [DEFINITIONS.] (a) The term "other district 189.10 receipts" means payments by county treasurers pursuant to 189.11 section 276.10, apportionments from the school endowment fund 189.12 pursuant to section 127A.33, apportionments by the county 189.13 auditor pursuant to section 127A.34, subdivision 2, and payments 189.14 to school districts by the commissioner of revenue pursuant to 189.15 chapter 298. 189.16 (b) The term "cumulative amount guaranteed" means the 189.17 product of 189.18 (1) the cumulative disbursement percentage shown in 189.19 subdivision 3; times 189.20 (2) the sum of 189.21 (i)80 percentthe current year aid payment percentage of 189.22 the estimated aid and credit entitlements paid according to 189.23 subdivision 13; plus 189.24 (ii) 100 percent of the entitlements paid according to 189.25 subdivisions 11 and 12; plus 189.26 (iii) the other district receipts. 189.27 (c) The term "payment date" means the date on which state 189.28 payments to districts are made by the electronic funds transfer 189.29 method. If a payment date falls on a Saturday, a Sunday, or a 189.30 weekday which is a legal holiday, the payment shall be made on 189.31 the immediately preceding business day. The commissioner may 189.32 make payments on dates other than those listed in subdivision 3, 189.33 but only for portions of payments from any preceding payment 189.34 dates which could not be processed by the electronic funds 189.35 transfer method due to documented extenuating circumstances. 189.36 (d) "Current year payment percentage" means 84.3 percent. 190.1 [EFFECTIVE DATE.] This section is effective for state aid 190.2 payments for fiscal year 2006. 190.3 Sec. 9. Minnesota Statutes 2004, section 127A.45, 190.4 subdivision 10, is amended to read: 190.5 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 190.6 fiscal year state general fund payments for a district 190.7 nonoperating fund must be made at80 percentthe current year 190.8 aid payment percentage of the estimated entitlement during the 190.9 fiscal year of the entitlement. This amount shall be paid in 12 190.10 equal monthly installments. The amount of the actual 190.11 entitlement, after adjustment for actual data, minus the 190.12 payments made during the fiscal year of the entitlement must be 190.13 paid prior to October 31 of the following school year. The 190.14 commissioner may make advance payments of debt service 190.15 equalization aid for a district's debt service fund earlier than 190.16 would occur under the preceding schedule if the district submits 190.17 evidence showing a serious cash flow problem in the fund. The 190.18 commissioner may make earlier payments during the year and, if 190.19 necessary, increase the percent of the entitlement paid to 190.20 reduce the cash flow problem. 190.21 [EFFECTIVE DATE.] This section is effective for state aid 190.22 payments for fiscal year 2006. 190.23 Sec. 10. Minnesota Statutes 2004, section 127A.45, 190.24 subdivision 14, is amended to read: 190.25 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 190.26 according to sections 123B.40 to 123B.48 for pupils attending 190.27 nonpublic schools as follows: 190.28 (1) an advance payment by November 30 equal to80 percent190.29 the current year aid payment percentage of the estimated 190.30 entitlement for the current fiscal year; and 190.31 (2) a final payment by October 31 of the following fiscal 190.32 year, adjusted for actual data. 190.33 If a payment advance to meet cash flow needs is requested 190.34 by a district and approved by the commissioner, the state shall 190.35 pay nonpublic pupil transportation aid according to section 190.36 123B.92 by October 31. 191.1 [EFFECTIVE DATE.] This section is effective for state aid 191.2 payments for fiscal year 2006. 191.3 Sec. 11. Minnesota Statutes 2004, section 127A.45, 191.4 subdivision 16, is amended to read: 191.5 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 191.6 subdivision 3,80 percentthe current year aid payment 191.7 percentage of the amounts under section 123A.26, subdivision 3, 191.8 shall be paid in equal installments on August 30, December 30, 191.9 and March 30, with a20 percentfinal adjustment payment on 191.10 October 30 of the next fiscal year of the remaining amount. 191.11 [EFFECTIVE DATE.] This section is effective for state aid 191.12 payments for fiscal year 2006. 191.13 Sec. 12. [FUND TRANSFERS.] 191.14 Subdivision 1. [LAKE CRYSTAL-WELLCOME MEMORIAL.] (a) 191.15 Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 191.16 on June 30, 2005, upon approval of the commissioner of 191.17 education, Independent School District No. 2071, Lake 191.18 Crystal-Wellcome Memorial, may permanently transfer up to 191.19 $132,754 from its reserved account for handicapped access to its 191.20 undesignated general fund balance. 191.21 (b) Prior to making the fund transfer, Independent School 191.22 District No. 2071, Lake Crystal-Wellcome Memorial, must 191.23 demonstrate to the commissioner's satisfaction that the 191.24 district's school buildings are accessible to students or 191.25 employees with disabilities. 191.26 (c) Notwithstanding Minnesota Statutes, section 123B.79 or 191.27 123B.80, on June 30 of 2005, 2006, and 2007, Independent School 191.28 District No. 2071, Lake Crystal-Wellcome Memorial, may 191.29 permanently transfer any balance in its reserved for operating 191.30 capital account resulting from the sale of school property to 191.31 its undesignated general fund balance. 191.32 Subd. 2. [ROCKFORD.] Notwithstanding Minnesota Statutes, 191.33 sections 123B.79, 123B.80, and 475.61, subdivision 4, 191.34 Independent School District No. 883, Rockford, on June 30, 2005, 191.35 may permanently transfer up to $660,000 from its debt redemption 191.36 fund to the undesignated balance of its general fund without 192.1 making a levy reduction. 192.2 Subd. 3. [RUSSELL.] Notwithstanding Minnesota Statutes, 192.3 section 123B.79 or 123B.80, on June 30, 2005, Independent School 192.4 District No. 418, Russell, may transfer up to $50,000 from its 192.5 reserved capital accounts in its general fund to its 192.6 undesignated fund balance. 192.7 Subd. 4. [RUTHTON.] Notwithstanding Minnesota Statutes, 192.8 section 123B.79 or 123B.80, on June 30, 2005, Independent School 192.9 District No. 584, Ruthton, may permanently transfer up to 192.10 $140,000 from its reserved for operating capital account to the 192.11 undesignated general fund balance. 192.12 Subd. 5. [WINDOM.] Notwithstanding Minnesota Statutes, 192.13 section 123B.79 or 123B.80, Independent School District No. 177, 192.14 Windom, on June 30, 2005, may permanently transfer up to 192.15 $270,000 from its reserved for operating capital account to the 192.16 undesignated balance in its general fund. 192.17 [EFFECTIVE DATE.] This section is effective the day 192.18 following final enactment. 192.19 Sec. 13. [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 192.20 FORKS.] 192.21 Notwithstanding the time limits established in Minnesota 192.22 Statutes, section 123B.58, subdivision 3, Independent School 192.23 District No. 595, East Grand Forks, may levy its remaining 192.24 disabled access levy authority over five or fewer years. 192.25 [EFFECTIVE DATE.] This section is effective the day 192.26 following final enactment. 192.27 Sec. 14. [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 192.28 (a) The commissioner of education, when making offsetting 192.29 levy adjustments between levy categories to ensure that each 192.30 levy category is positive for Independent School District No. 192.31 599, Fertile-Beltrami, shall make such adjustments first between 192.32 levy categories that are imposed on identical tax bases before 192.33 making such adjustments between levy categories that are imposed 192.34 on different tax bases. The commissioner may make offsetting 192.35 levy adjustments between the general fund and the debt service 192.36 fund, if necessary. 193.1 (b) The commissioner of education must make the offsetting 193.2 levy adjustments according to the process in paragraph (a) until 193.3 Independent School District No. 599, Fertile-Beltrami's current 193.4 referendum authority, under Minnesota Statutes, section 126C.17, 193.5 expires. 193.6 Sec. 15. [FUNDING REDUCTION.] 193.7 If House File 1664 or a similarly styled bill does not pass 193.8 the house of representatives, the commissioner of education must 193.9 adjust the current year aid payment percentage under Minnesota 193.10 Statutes, section 127A.45, subdivision 3, to reduce spending by 193.11 $134,000,000 during the 2006-2007 biennium. 193.12 Sec. 16. [APPROPRIATIONS.] 193.13 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 193.14 indicated in this section are appropriated from the general fund 193.15 to the Department of Education for the fiscal years designated. 193.16 Subd. 2. [SCHOOL LUNCH.] For school lunch aid according to 193.17 Minnesota Statutes, section 124D.111, and Code of Federal 193.18 Regulations, title 7, section 210.17: 193.19 $7,748,000 ..... 2006 193.20 $7,826,000 ..... 2007 193.21 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 193.22 MILK.] For traditional school breakfast aid and kindergarten 193.23 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 193.24 $4,934,000 ..... 2006 193.25 $5,023,000 ..... 2007 193.26 Subd. 4. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 193.27 summer food service replacement aid under Minnesota Statutes, 193.28 section 124D.119: 193.29 $ 150,000 ..... 2006 193.30 $ 150,000 ..... 2007 193.31 ARTICLE 6 193.32 LIBRARIES 193.33 Section 1. [DEPARTMENT OF EDUCATION; LIBRARY 193.34 APPROPRIATIONS.] 193.35 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 193.36 indicated in this section are appropriated from the general fund 194.1 to the Department of Education for the fiscal years designated. 194.2 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 194.3 grants under Minnesota Statutes, section 134.355: 194.4 $ 8,570,000 ..... 2006 194.5 $ 8,570,000 ..... 2007 194.6 The 2006 appropriation includes $1,345,000 for 2005 and 194.7 $7,225,000 for 2006. 194.8 The 2007 appropriation includes $1,345,000 for 2006 and 194.9 $7,225,000 for 2007. 194.10 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 194.11 grants under Minnesota Statutes, sections 134.353 and 134.354, 194.12 to multicounty, multitype library systems: 194.13 $ 903,000 ..... 2006 194.14 $ 903,000 ..... 2007 194.15 The 2006 appropriation includes $141,000 for 2005 and 194.16 $762,000 for 2006. 194.17 The 2007 appropriation includes $141,000 for 2006 and 194.18 $762,000 for 2007. 194.19 Subd. 4. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 194.20 licenses to online databases selected in cooperation with the 194.21 Higher Education Services Office for school media centers, 194.22 public libraries, state government agency libraries, and public 194.23 or private college or university libraries: 194.24 $1,039,000 ..... 2006 194.25 $1,091,000 ..... 2007 194.26 Any balance in the first year does not cancel but is 194.27 available in the second year. 194.28 Subd. 5. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 194.29 regional library telecommunications aid under Minnesota 194.30 Statutes, section 134.355: 194.31 $1,200,000 ..... 2006 194.32 $1,200,000 ..... 2007 194.33 The 2006 appropriation includes $188,000 for 2005 and 194.34 $1,012,000 for 2006. 194.35 The 2007 appropriation includes $188,000 for 2006 and 194.36 $1,012,000 for 2007. 195.1 Subd. 6. [MNLINK.] To support school media center and 195.2 public library participation in MnLink: 195.3 $ 250,000 ..... 2006 195.4 $ 250,000 ..... 2007 195.5 ARTICLE 7 195.6 EARLY EDUCATION 195.7 Section 1. Minnesota Statutes 2004, section 121A.17, 195.8 subdivision 1, is amended to read: 195.9 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 195.10 Every school board must provide for a mandatory program of early 195.11 childhood developmental screening for children once before 195.12 school entrance, targeting children who are between3-1/2three 195.13 and four years old. This screening program must be established 195.14 either by one board, by two or more boards acting in 195.15 cooperation, by service cooperatives, by early childhood family 195.16 education programs, or by other existing programs. This 195.17 screening examination is a mandatory requirement for a student 195.18 to continue attending kindergarten or first grade in a public 195.19 school. A child need not submit to developmental screening 195.20 provided by a board if the child's health records indicate to 195.21 the board that the child has received comparable developmental 195.22 screening from a public or private health care organization or 195.23 individual health care provider. A public school must assign a 195.24 child a student identification number, as defined by the 195.25 commissioner, at the time the child receives a developmental 195.26 screening or the child's parent or guardian provides the public 195.27 school with the child's health records indicating that the child 195.28 received a comparable developmental screening. A school 195.29 district must transmit essential data under section 125B.07, 195.30 subdivision 6, to the department. Districts are encouraged to 195.31 reduce the costs of preschool developmental screening programs 195.32 byutilizingusing volunteers in implementing the program. 195.33 [EFFECTIVE DATE.] This section is effective the day 195.34 following final enactment. 195.35 Sec. 2. Minnesota Statutes 2004, section 121A.17, 195.36 subdivision 3, is amended to read: 196.1 Subd. 3. [SCREENING PROGRAM.] (a) A screening program must 196.2 include at least the following components: developmental 196.3 assessments that measure the child's cognitive, social and 196.4 emotional development, hearing and vision screening or referral, 196.5 immunization review and referral, the child's height and weight, 196.6 identification of risk factors that may influence learning, an 196.7 interview with the parent about the child, and referral for 196.8 assessment, diagnosis, and treatment when potential needs are 196.9 identified. The district and the person performing or 196.10 supervising the screening must provide a parent or guardian with 196.11 clear written notice that the parent or guardian may decline to 196.12 answer questions or provide information about family 196.13 circumstances that might affect development and identification 196.14 of risk factors that may influence learning. The notice must 196.15 clearly state that declining to answer questions or provide 196.16 information does not prevent the child from being enrolled in 196.17 kindergarten or first grade if all other screening components 196.18 are met. If a parent or guardian is not able to read and 196.19 comprehend the written notice, the district and the person 196.20 performing or supervising the screening must convey the 196.21 information in another manner. The notice must also inform the 196.22 parent or guardian that a child need not submit to the district 196.23 screening program if the child's health records indicate to the 196.24 school that the child has received comparable developmental 196.25 screening performed within the preceding 365 days by a public or 196.26 private health care organization or individual health care 196.27 provider. The notice must be given to a parent or guardian at 196.28 the time the district initially provides information to the 196.29 parent or guardian about screening and must be given again at 196.30 the screening location. 196.31 (b) All screening components shall be consistent with the 196.32 standards of the state commissioner of health for early 196.33 developmental screening programs. A developmental screening 196.34 program must not provide laboratory tests or a physical 196.35 examination to any child. The district must request from the 196.36 public or private health care organization or the individual 197.1 health care provider the results of any laboratory test or 197.2 physical examination within the 12 months preceding a child's 197.3 scheduled screening. 197.4 (c) If a child is without health coverage, the school 197.5 district must refer the child to an appropriate health care 197.6 provider. 197.7 (d) A board may offer additional components such as 197.8 nutritional, physical and dental assessments, review of family 197.9 circumstances that might affect development, blood pressure, 197.10 laboratory tests, and health history. 197.11 (e) If a statement signed by the child's parent or guardian 197.12 is submitted to the administrator or other person having general 197.13 control and supervision of the school that the child has not 197.14 been screened because of conscientiously held beliefs of the 197.15 parent or guardian, the screening is not required. 197.16 Sec. 3. Minnesota Statutes 2004, section 121A.17, 197.17 subdivision 5, is amended to read: 197.18 Subd. 5. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 197.19 The board must inform each resident family with a child eligible 197.20 to participate in the developmental screening program about the 197.21 availability of the program and the state's requirement that a 197.22 child receive a developmental screening or provide health 197.23 records indicating that the child received a comparable 197.24 developmental screening from a public or private health care 197.25 organization or individual health care provider not later than 197.26 30 days after the first day of attending kindergarten in a 197.27 public school. A school district must inform all resident 197.28 families with eligible children under age seven that their 197.29 children may receive a developmental screening conducted either 197.30 by the school district or by a public or private health care 197.31 organization or individual health care provider. 197.32 [EFFECTIVE DATE.] This section is effective the day 197.33 following final enactment. 197.34 Sec. 4. Minnesota Statutes 2004, section 121A.19, is 197.35 amended to read: 197.36 121A.19 [DEVELOPMENTAL SCREENING AID.] 198.1 Each school year, the state must pay a district$40$50 for 198.2 each three-year-old child screened; $40 for each four-year-old 198.3 child screened; and $30 for each five-year-old child screened 198.4 prior to kindergarten according to the requirements of section 198.5 121A.17. If this amount of aid is insufficient, the district 198.6 may permanently transfer from the general fund an amount that, 198.7 when added to the aid, is sufficient. 198.8 Sec. 5. Minnesota Statutes 2004, section 124D.135, 198.9 subdivision 1, is amended to read: 198.10 Subdivision 1. [REVENUE.] The revenue for early childhood 198.11 family education programs for a school district equals$120 for198.12fiscal years 2003 and 2004 and$96 for fiscal year 2005, $115 198.13 for fiscal year 2006, and $125 for fiscal year 2007 and later, 198.14 times the greater of: 198.15 (1) 150; or 198.16 (2) the number of people under five years of age residing 198.17 in the district on October 1 of the previous school year. 198.18 [EFFECTIVE DATE.] This section is effective for revenue for 198.19 fiscal year 2006. 198.20 Sec. 6. Minnesota Statutes 2004, section 124D.135, 198.21 subdivision 5, is amended to read: 198.22 Subd. 5. [USE OF REVENUE RESTRICTED.] Early childhood 198.23 family education revenue may be used only for early childhood 198.24 family education programs. Not more than five percent of early 198.25 childhood family education revenue, as defined in subdivision 7, 198.26 may be used to administer early childhood family education 198.27 programs. 198.28 Sec. 7. Minnesota Statutes 2004, section 124D.15, 198.29 subdivision 1, is amended to read: 198.30 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 198.31 group of districts may establish a school readiness program 198.32 foreligiblechildren age three to entering kindergarten. The 198.33 purpose of a school readiness program is toprovide all eligible198.34children adequate opportunities to participate in child198.35development programs that enable the children to enter school198.36with the necessary skills and behavior and family stability and199.1support to progress and flourishprepare children cognitively, 199.2 socially, emotionally, and physically to enter kindergarten. 199.3 Sec. 8. Minnesota Statutes 2004, section 124D.15, 199.4 subdivision 3, is amended to read: 199.5 Subd. 3. [PROGRAMELIGIBILITYREQUIREMENTS.] (a) A school 199.6 readiness program provider mustinclude the following: 199.7 (1)a comprehensive plan to anticipate and meet the needs199.8of participating families by coordinating existing social199.9services programs and by fostering collaboration among agencies199.10or other community-based organizations and programs that provide199.11a full range of flexible, family-focused services to families199.12with young childrenassess each child when the child enters and 199.13 again before the child leaves the program to inform program 199.14 planning and promote kindergarten readiness; 199.15 (2)a development and learning component to help children199.16develop appropriate social, cognitive, and physical skills, and199.17emotional well-beingdetermine whether to implement model early 199.18 childhood indicators of progress developed by the department; 199.19 (3)health referral services to address children's medical,199.20dental, mental health, and nutritional needsprovide 199.21 comprehensive program content based on early childhood research 199.22 and professional practice that is focused on children's 199.23 cognitive skills and social emotional development and prepares 199.24 children for the transition to kindergarten; 199.25 (4)a nutrition component to meet children's daily199.26nutritional needsarrange for early childhood screening and 199.27 appropriate referral; 199.28 (5)parents' involvement in meeting children's educational,199.29health, social service, and other needsinvolve parents in 199.30 program planning and decision making; 199.31 (6)community outreach to ensure participation by families199.32who represent the racial, cultural, and economic diversity of199.33the community;coordinate with relevant community-based 199.34 services; and 199.35 (7)community-based staff and program resources, including199.36interpreters, that reflect the racial and ethnic characteristics200.1of the children participating in the program; and200.2(8) a literacy component to ensure that the literacy needs200.3of parents are addressed through referral to and cooperation200.4 cooperate with adult basic education programs and other adult 200.5 literacy programs. 200.6 (b) A district that establishes a school readiness program 200.7 under this section must monitor the school performance of those 200.8 students who participate in the program and subsequently attend 200.9 a district school in grades kindergarten through grade 3, 200.10 compare the school performance of those students with other 200.11 students in the same grade in the district who did not 200.12 participate in a school readiness program, and report the 200.13 performance comparisons annually by May 1 to the school board 200.14 and the department. 200.15 Sec. 9. Minnesota Statutes 2004, section 124D.15, is 200.16 amended by adding a subdivision to read: 200.17 Subd. 3a. [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 200.18 school readiness program provider must submit a biennial plan 200.19 for approval by the commissioner before receiving aid under 200.20 section 124D.16. The plan must describe how the program meets 200.21 the program requirements under subdivision 3. A school district 200.22 by April 1 must submit the plan for approval by the commissioner 200.23 in the form and manner prescribed by the commissioner. One-half 200.24 the districts must first submit the plan by April 1, 2006, and 200.25 one-half the districts must first submit the plan by April 1, 200.26 2007, as determined by the commissioner. 200.27 (b) Programs receiving school readiness funds annually must 200.28 submit a report to the department. 200.29 Sec. 10. Minnesota Statutes 2004, section 124D.15, 200.30 subdivision 5, is amended to read: 200.31 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 200.32 districtis encouraged tomay contract with apubliccharter 200.33 school ornonprofitcommunity-based organization to provide 200.34 eligible children developmentally appropriate services that meet 200.35 the program requirements in subdivision 3. In the alternative, 200.36 a district may pay tuition or fees to place an eligible child in 201.1 an existing program. A district may establish a new program 201.2 where no existing, reasonably accessible program meets the 201.3 program requirements in subdivision 3. Districts must submit a 201.4 copy of each contract to the commissioner with the biennial plan. 201.5 Services may be provided in a site-based program or in the home 201.6 of the child or a combination of both. The district may not 201.7 restrict participation to district residents. 201.8 Sec. 11. Minnesota Statutes 2004, section 124D.15, 201.9 subdivision 10, is amended to read: 201.10 Subd. 10. [SUPERVISION.] A program provided by a board 201.11 must be supervised by a licensed early childhood teacher, a 201.12 certified early childhood educator, or a licensed parent 201.13 educator.A program provided according to a contract between a201.14district and a nonprofit organization or another private201.15organization must be supervised and staffed according to the201.16terms of the contract.201.17 Sec. 12. Minnesota Statutes 2004, section 124D.15, 201.18 subdivision 12, is amended to read: 201.19 Subd. 12. [PROGRAM FEES.] A districtmaymust adopt a 201.20 sliding fee schedule based on a family's income but must waive a 201.21 fee for a participant unable to pay.The fees charged must be201.22designed to enable eligible children of all socioeconomic levels201.23to participate in the program.201.24 Sec. 13. Minnesota Statutes 2004, section 124D.15, is 201.25 amended by adding a subdivision to read: 201.26 Subd. 14. [ASSISTANCE.] The department must assist 201.27 districts, upon request, with programs under this section. 201.28 Sec. 14. Minnesota Statutes 2004, section 124D.16, 201.29 subdivision 2, is amended to read: 201.30 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 201.31 receive school readiness aid for eligible prekindergarten pupils 201.32 enrolled in a school readiness program under section 124D.15 if 201.33 theprogrambiennial plan required bysubdivision 1section 201.34 124D.15, subdivision 3a, has been approved by the commissioner. 201.35 (b) For fiscal year 2002 and thereafter, a district must 201.36 receive school readiness aid equal to: 202.1 (1) the number ofeligiblefour-year-old children in the 202.2 district on October 1 for the previous school year times the 202.3 ratio of 50 percent of the total school readiness aid for that 202.4 year to the total number ofeligiblefour-year-old children 202.5 reported to the commissioner for the previous school year; plus 202.6 (2) the number of pupils enrolled in the school district 202.7 from families eligible for the free or reduced school lunch 202.8 program for thesecondprevious school year times the ratio of 202.9 50 percent of the total school readiness aid for that year to 202.10 the total number of pupils in the state from families eligible 202.11 for the free or reduced school lunch program for thesecond202.12 previous school year. 202.13 Sec. 15. Minnesota Statutes 2004, section 124D.16, 202.14 subdivision 3, is amended to read: 202.15 Subd. 3. [USE OF AID.] School readiness aid shall be used 202.16 only to provide a school readiness program and may be used to 202.17 provide transportation. Not more than five percent ofthe202.18aidprogram revenue, as defined in subdivision 5, may be used 202.19 for the cost of administering the program. Aid must be used to 202.20 supplement and not supplant local, state, and federal funding. 202.21 Aid may not be used for instruction and services required under 202.22 sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 202.23 purchase land or construct buildings, but may be used to lease 202.24 or renovate existing buildings. 202.25 Sec. 16. [124D.175] [MINNESOTA EARLY LEARNING FOUNDATION 202.26 PROPOSAL.] 202.27 (a) To the extent revenue is available for the purposes of 202.28 this section, the commissioner must implement paragraphs (b) and 202.29 (c). 202.30 (b) The commissioner must implement an early childhood 202.31 development grant program for low-income and other families that 202.32 increases the effectiveness and expands the capacity of early 202.33 childhood development programs, which may include child care 202.34 programs, and leads to improved early childhood parent education 202.35 and children's kindergarten readiness. The program must include: 202.36 (1) grant awards to existing early childhood development 203.1 program providers that also provide parent education programs 203.2 and to qualified providers proposing to implement pilot programs 203.3 for this same purpose; 203.4 (2) grant awards to enable low-income families to 203.5 participate in these programs; 203.6 (3) grant awards to improve overall programmatic quality 203.7 including, among other things, a system to determine the 203.8 relative quality of providers, proposals for early learning 203.9 guidelines, and school readiness assessments; and 203.10 (4) an evaluation of the programmatic and financial 203.11 efficacy of all these programs, which may be performed using the 203.12 model early childhood indicators of progress developed by the 203.13 department. 203.14 This grant program must not supplant existing early childhood 203.15 development programs or child care funds. 203.16 (c) The commissioner must contract with a private 203.17 nonprofit, section 501(c)(3) organization to implement the 203.18 requirements of paragraph (b). The private nonprofit 203.19 organization must be governed by a board of directors composed 203.20 of members from the public and nonpublic sectors, where the 203.21 nonpublic sector members compose a simple majority of board 203.22 members and where the public sector members are state and local 203.23 government officials and kindergarten through grade 12 or 203.24 postsecondary educators appointed by the governor. The board of 203.25 directors must appoint an executive director and must seek 203.26 advice from geographically and ethnically diverse parents of 203.27 young children and representatives of early childhood 203.28 development providers, kindergarten through grade 12 and 203.29 postsecondary educators, public libraries and the business 203.30 sector. All other terms and conditions under which board 203.31 members serve and operate must be described in the articles and 203.32 bylaws of the organization. The private nonprofit organization 203.33 is not a state agency and is not subject to any laws governing 203.34 public agencies. 203.35 (d) This section expires June 30, 2011. 203.36 Sec. 17. Minnesota Statutes 2004, section 126C.15, is 204.1 amended by adding a subdivision to read: 204.2 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 204.3 under subdivision 2, paragraph (c), must be reserved and used 204.4 for programs and activities that prepare children ages 3-1/2 204.5 from families eligible for the free or reduced-price school 204.6 lunch program to enter kindergarten. Programs may serve 204.7 resident and nonresident children. Districts may contract with 204.8 private preschools and other providers of prekindergarten 204.9 programs. 204.10 Sec. 18. Minnesota Statutes 2004, section 179A.03, 204.11 subdivision 14, is amended to read: 204.12 Subd. 14. [PUBLIC EMPLOYEE OR EMPLOYEE.] "Public employee" 204.13 or "employee" means any person appointed or employed by a public 204.14 employer except: 204.15 (a) elected public officials; 204.16 (b) election officers; 204.17 (c) commissioned or enlisted personnel of the Minnesota 204.18 National Guard; 204.19 (d) emergency employees who are employed for emergency work 204.20 caused by natural disaster; 204.21 (e) part-time employees whose service does not exceed the 204.22 lesser of 14 hours per week or 35 percent of the normal work 204.23 week in the employee's appropriate unit; 204.24 (f) employees whose positions are basically temporary or 204.25 seasonal in character and: (1) are not for more than 67 working 204.26 days in any calendar year; or (2) are not for more than 100 204.27 working days in any calendar year and the employees are under 204.28 the age of 22, are full-time students enrolled in a nonprofit or 204.29 public educational institution prior to being hired by the 204.30 employer, and have indicated, either in an application for 204.31 employment or by being enrolled at an educational institution 204.32 for the next academic year or term, an intention to continue as 204.33 students during or after their temporary employment; 204.34 (g) employees providing services for not more than two 204.35 consecutive quarters to the Board of Trustees of the Minnesota 204.36 State Colleges and Universities under the terms of a 205.1 professional or technical services contract as defined in 205.2 section 16C.08, subdivision 1; 205.3 (h) employees of charitable hospitals as defined by section 205.4 179.35, subdivision 3; 205.5 (i) full-time undergraduate students employed by the school 205.6 which they attend under a work-study program or in connection 205.7 with the receipt of financial aid, irrespective of number of 205.8 hours of service per week; 205.9 (j) an individual who is employed for less than 300 hours 205.10 in a fiscal year as an instructor in an adult vocational 205.11 education program; 205.12 (k) an individual hired by the Board of Trustees of the 205.13 Minnesota State Colleges and Universities to teach one course 205.14 for three or fewer credits for one semester in a year; 205.15 (l) with respect to court employees: 205.16 (1) personal secretaries to judges; 205.17 (2) law clerks; 205.18 (3) managerial employees; 205.19 (4) confidential employees; and 205.20 (5) supervisory employees. 205.21 The following individuals are public employees regardless 205.22 of the exclusions of clauses (e) and (f): 205.23 (i) an employee hired by a school district or the Board of 205.24 Trustees of the Minnesota State Colleges and Universities except 205.25 at the university established in section 136F.13 or for 205.26 community services or community education instruction offered on 205.27 a noncredit basis: (A) to replace an absent teacher or faculty 205.28 member who is a public employee, where the replacement employee 205.29 is employed more than 30 working days as a replacement for that 205.30 teacher or faculty member; or (B) to take a teaching position 205.31 created due to increased enrollment, curriculum expansion, 205.32 courses which are a part of the curriculum whether offered 205.33 annually or not, or other appropriate reasons;and205.34 (ii) an employee hired for a position under clause (f)(1) 205.35 if that same position has already been filled under clause 205.36 (f)(1) in the same calendar year and the cumulative number of 206.1 days worked in that same position by all employees exceeds 67 206.2 calendar days in that year. For the purpose of this paragraph, 206.3 "same position" includes a substantially equivalent position if 206.4 it is not the same position solely due to a change in the 206.5 classification or title of the position; and 206.6 (iii) an early childhood family education teacher employed 206.7 by a school district. 206.8 [EFFECTIVE DATE.] This section is effective July 1, 2005. 206.9 Sec. 19. [PILOT PROGRAM FOR AT-RISK PREKINDERGARTEN 206.10 CHILDREN.] 206.11 Subdivision 1. [ESTABLISHMENT; ELIGIBILITY; APPLICATION 206.12 PROCESS.] (a) An early childhood education pilot program for 206.13 at-risk children between the age of three and entering 206.14 kindergarten is established to develop or expand developmentally 206.15 appropriate and cost-effective programs for children who 206.16 demonstrate two or more of the following characteristics: 206.17 (1) are members of a household with an income less than 75 206.18 percent of the statewide median family income; 206.19 (2) live in divorced or separated households headed by a 206.20 single parent; 206.21 (3) have experienced residential instability, homelessness, 206.22 or have parents who have been unemployed in the past 12 months; 206.23 (4) have a parent who has not received a high school 206.24 diploma or its equivalent; 206.25 (5) speak a primary language other than English; 206.26 (6) are determined by a qualified early childhood or other 206.27 professional to require additional developmental screening, 206.28 diagnosis, or treatment; 206.29 (7) have been placed in three or more child care settings 206.30 in the past 12 months or are determined by a qualified early 206.31 childhood or other professional to have been a victim of 206.32 bullying; 206.33 (8) have a parent who has undergone treatment for chemical 206.34 abuse or mental illness; or 206.35 (9) other criteria determined by the commissioner in 206.36 consultation with qualified early childhood or other 207.1 professionals. 207.2 (b) An applicant for a grant must be a qualified provider 207.3 of care, education, and social services for young children and 207.4 their families. The applicant must demonstrate to the 207.5 satisfaction of the commissioner of education that, at a 207.6 minimum, the applicant: 207.7 (1) has successfully operated an early childhood program 207.8 for two or more calendar years that includes a parent 207.9 involvement and education component; 207.10 (2) addresses the physical and educational needs of young 207.11 children and their families; and 207.12 (3) measures its success in meeting the needs of the young 207.13 children and families it serves. 207.14 (c) To obtain a grant under this section, a qualified 207.15 provider must submit an application to the commissioner of 207.16 education in the form and manner the commissioner prescribes. 207.17 The application must demonstrate the applicant's qualifications, 207.18 consistent with paragraph (b), and describe how the applicant 207.19 proposes to develop or expand a developmentally appropriate and 207.20 cost-effective program for at-risk young children and their 207.21 families. The commissioner may require an applicant to submit 207.22 additional information. 207.23 Subd. 2. [GRANT AWARDS.] The commissioner may award up to 207.24 five grants to qualified providers throughout the state. The 207.25 amount of the grant shall be based on the number of children and 207.26 families expected to participate in the provider's program. 207.27 Grant recipients must use the grant award to provide a 207.28 developmentally appropriate and cost-effective program for 207.29 at-risk young children and their families. 207.30 Subd. 3. [EVALUATION.] The commissioner, after evaluating 207.31 the programmatic and cost-effectiveness of the grant recipients' 207.32 programs and identifying the elements of developmentally 207.33 appropriate and cost-effective programs for at-risk young 207.34 children and their families, must submit by January 15, 2008, a 207.35 written report of the commissioner's findings to the early 207.36 childhood committees in the legislature. The commissioner must 208.1 submit by January 15, 2014, a subsequent written report to the 208.2 early childhood education committees of the legislature 208.3 evaluating the long-term effect of children's participation in 208.4 early childhood education programs under this section. 208.5 [EFFECTIVE DATE.] This section is effective July 1, 2005. 208.6 Sec. 20. [APPROPRIATIONS.] 208.7 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 208.8 indicated in this section are appropriated from the general fund 208.9 to the Department of Education for the fiscal years designated. 208.10 Subd. 2. [SCHOOL READINESS.] For revenue for school 208.11 readiness programs under Minnesota Statutes, sections 124D.15 208.12 and 124D.16: 208.13 $9,020,000 ..... 2006 208.14 $9,042,000 ..... 2007 208.15 The 2006 appropriation includes $1,417,000 for 2005 and 208.16 $7,603,000 for 2006. 208.17 The 2007 appropriation includes $1,415,000 for 2006 and 208.18 $7,627,000 for 2007. 208.19 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 208.20 childhood family education aid under Minnesota Statutes, section 208.21 124D.135: 208.22 $17,652,000 ..... 2006 208.23 $22,133,000 ..... 2007 208.24 The 2006 appropriation includes $1,861,000 for 2005 and 208.25 $15,791,000 for 2006. 208.26 The 2007 appropriation includes $2,940,000 for 2006 and 208.27 $19,193,000 for 2007. 208.28 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 208.29 health and developmental screening aid under Minnesota Statutes, 208.30 sections 121A.17 and 121A.19: 208.31 $3,076,000 ..... 2006 208.32 $3,511,000 ..... 2007 208.33 The 2006 appropriation includes $417,000 for 2005 and 208.34 $2,659,000 for 2006. 208.35 The 2007 appropriation includes $494,000 for 2006 and 208.36 $3,017,000 for 2007. 209.1 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 209.2 under Minnesota Statutes, section 119A.52: 209.3 $17,100,000 ..... 2006 209.4 $17,100,000 ..... 2007 209.5 Subd. 6. [MINNESOTA EARLY LEARNING FOUNDATION.] For the 209.6 purposes of Minnesota Statutes, section 124D.175: 209.7 $ 1,500,000 ..... 2006 209.8 The private nonprofit, section 501(c)(3) organization 209.9 contracting with the commissioner may accept nonpublic funds for 209.10 the purposes of Minnesota Statutes, section 124D.175. 209.11 Of this appropriation, $500,000 is for a pilot program to 209.12 develop or expand developmentally appropriate and cost-effective 209.13 programs for at-risk young children and their families under 209.14 section 19. 209.15 This is a onetime appropriation. 209.16 Sec. 21. [REPEALER.] 209.17 (a) Minnesota Statutes 2004, sections 124D.15, subdivisions 209.18 2, 4, 6, 7, 8, 9, 11, and 13; and 124D.16, subdivision 4, are 209.19 repealed. 209.20 (b) Minnesota Statutes 2004, section 124D.16, subdivision 209.21 1, is repealed effective July 1, 2006. 209.22 ARTICLE 8 209.23 PREVENTION 209.24 Section 1. Minnesota Statutes 2004, section 119A.46, 209.25 subdivision 1, is amended to read: 209.26 Subdivision 1. [DEFINITIONS.] (a) The definitions in 209.27 section 144.9501 and in this subdivision apply to this section. 209.28 (b) "Eligible organization" means a lead contractor, city, 209.29 board of health, community health department, community action 209.30 agency as defined in section 119A.374, or community development 209.31 corporation. 209.32 (c) "Commissioner" means the commissioner ofeducation209.33 health, or the commissioner of the Minnesota Housing Finance 209.34 Agency as authorized by section 462A.05, subdivision 15c. 209.35 Sec. 2. Minnesota Statutes 2004, section 119A.46, 209.36 subdivision 2, is amended to read: 210.1 Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of 210.2 the available appropriation, the commissioner must develop a 210.3 swab team services program which may make demonstration and 210.4 training grants to eligible organizations to train workers to 210.5 provide swab team services and swab team services for 210.6 residential property. Grants may be awarded to nonprofit 210.7 organizations to provide technical assistance and training to 210.8 ensure quality and consistency within the statewide program. 210.9 Grants must be awarded to help ensure full-time employment to 210.10 workers providing swab team services and must be awarded for a 210.11 two-year period. 210.12 Grants awarded under this section must be made in 210.13 consultation with thecommissioners of the Department of Health210.14andcommissioner of the Housing Finance Agency,and 210.15 representatives of neighborhood groups from areas at high risk 210.16 for toxic lead exposure, a labor organization, the lead 210.17 coalition, community action agencies, and the legal aid 210.18 society. The consulting team must review grant applications and 210.19 recommend awards to eligible organizations that meet 210.20 requirements for receiving a grant under this section. 210.21 Sec. 3. Minnesota Statutes 2004, section 119A.46, 210.22 subdivision 3, is amended to read: 210.23 Subd. 3. [APPLICANTS.] (a) Interested eligible 210.24 organizations may apply to the commissioner for grants under 210.25 this section. Two or more eligible organizations may jointly 210.26 apply for a grant. Priority shall be given to community action 210.27 agencies in greater Minnesota and to either community action 210.28 agencies or neighborhood based nonprofit organizations in cities 210.29 of the first class. Of the total annual appropriation, 12.5 210.30 percent may be used for administrative purposes. The 210.31 commissioner may deviate from this percentage if a grantee can 210.32 justify the need for a larger administrative allowance. Of this 210.33 amount, up to five percent may be used by the commissioner for 210.34 state administrative purposes. Applications must provide 210.35 information requested by the commissioner, including at least 210.36 the information required to assess the factors listed in 211.1 paragraph (d). 211.2 (b) The commissioner mustcoordinate with the commissioner211.3of health who mustconsult with boards of health to provide swab 211.4 team services for purposes of secondary prevention. The 211.5 priority for swab teams created by grants to eligible 211.6 organizations under this section must be work assigned by the 211.7 commissioner of health, or by a board of health if so designated 211.8 by the commissioner of health, to provide secondary prevention 211.9 swab team services to fulfill the requirements of section 211.10 144.9504, subdivision 6, in response to a lead order. Swab 211.11 teams assigned work under this section by the commissioner, that 211.12 are not engaged daily in fulfilling the requirements of section 211.13 144.9504, subdivision 6, must deliver swab team services in 211.14 response to elevated blood lead levels as defined in section 211.15 144.9501, subdivision 9, where lead orders were not issued, and 211.16 for purposes of primary prevention in census tracts known to be 211.17 in areas at high risk for toxic lead exposure as described in 211.18 section 144.9503, subdivision 2. 211.19 (c) Any additional money must be used for grants to 211.20 establish swab teams for primary prevention under section 211.21 144.9503, in census tracts in areas at high risk for toxic lead 211.22 exposure as determined under section 144.9503, subdivision 2. 211.23 (d) In evaluating grant applications, the commissioner must 211.24 consider the following criteria: 211.25 (1) the use of lead contractors and lead workers for 211.26 residential swab team services; 211.27 (2) the participation of neighborhood groups and 211.28 individuals, as swab team workers, in areas at high risk for 211.29 toxic lead exposure; 211.30 (3) plans for the provision of swab team services for 211.31 primary and secondary prevention as required under subdivision 211.32 4; 211.33 (4) plans for supervision, training, career development, 211.34 and postprogram placement of swab team members; 211.35 (5) plans for resident and property owner education on lead 211.36 safety; 212.1 (6) plans for distributing cleaning supplies to area 212.2 residents and educating residents and property owners on 212.3 cleaning techniques; 212.4 (7) sources of other funding and cost estimates for 212.5 training, lead inspections, swab team services, equipment, 212.6 monitoring, testing, and administration; 212.7 (8) measures of program effectiveness; 212.8 (9) coordination of program activities with other federal, 212.9 state, and local public health, job training, apprenticeship, 212.10 and housing renovation programs including programs under 212.11 sections 116L.86 to 116L.881; and 212.12 (10) prior experience in providing swab team services. 212.13 Sec. 4. Minnesota Statutes 2004, section 119A.46, 212.14 subdivision 8, is amended to read: 212.15 Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the 212.16 environment is not necessary by swab teams whose work is 212.17 assigned by the commissioner of health or a designated board of 212.18 health under section 144.9504. The commissioner of health or 212.19 designated board of health must share the analytical testing 212.20 data collected on each residence for purposes of secondary 212.21 prevention under section 144.9504 with the swab team workers in 212.22 order to provide constructive feedback on their work and to the 212.23 commissioner for the purposes set forth in paragraph (c). 212.24 (b) For purposes of primary prevention evaluation, the 212.25 following samples must be collected: pretesting and posttesting 212.26 of one noncarpeted floor dust lead sample and a notation of the 212.27 extent and location of bare soil and of deteriorated lead-based 212.28 paint. The analytical testing data collected on each residence 212.29 for purposes of primary prevention under section 144.9503 must 212.30 be shared with the swab team workers in order to provide 212.31 constructive feedback on their work and to the commissioner for 212.32 the purposes set forth in paragraph (c). 212.33 (c) The commissioner of health must establish a programin212.34cooperation with the commissionerto collect appropriate data as 212.35 required under paragraphs (a) and (b), in order to conduct an 212.36 ongoing evaluation of swab team services for primary and 213.1 secondary prevention. Within the limits of available 213.2 appropriations, the commissioner of health must conductor213.3contract with the commissioner,on up to 1,000 residences which 213.4 have received primary or secondary prevention swab team 213.5 services, a postremediation evaluation, on at least a quarterly 213.6 basis for a period of at least two years for each residence. 213.7 The evaluation must note the condition of the paint within the 213.8 residence, the extent of bare soil on the grounds, and collect 213.9 and analyze one noncarpeted floor dust lead sample. The data 213.10 collected must be evaluated to determine the efficacy of 213.11 providing swab team services as a method of reducing lead 213.12 exposure in young children. In evaluating this data, the 213.13 commissioner of health must consider city size, community 213.14 location, historic traffic flow, soil lead level of the property 213.15 by area or census tract, distance to industrial point sources 213.16 that emit lead, season of the year, age of the housing, age and 213.17 number of children living at the residence, the presence of pets 213.18 that move in and out of the residence, and other relevant 213.19 factors as the commissioner of health may determine. 213.20 Sec. 5. Minnesota Statutes 2004, section 124D.20, 213.21 subdivision 3, is amended to read: 213.22 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 213.23 general community education revenue for a district equals$5.95213.24for fiscal year 2003 and 2004 and$5.23 for fiscalyearyears 213.25 2005 and 2006 and $6.00 for fiscal year 2007 and later, times 213.26 the greater of 1,335 or the population of the district. The 213.27 population of the district is determined according to section 213.28 275.14. 213.29 [EFFECTIVE DATE.] This section is effective for revenue for 213.30 fiscal year 2007. 213.31 Sec. 6. [APPROPRIATION.] 213.32 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 213.33 indicated in this section are appropriated from the general fund 213.34 to the Department of Education for the fiscal years designated. 213.35 Subd. 2. [COMMUNITY EDUCATION AID.] For community 213.36 education aid under Minnesota Statutes, section 124D.20: 214.1 $1,918,000 ..... 2006 214.2 $1,837,000 ..... 2007 214.3 The 2006 appropriation includes $390,000 for 2005 and 214.4 $1,528,000 for 2006. 214.5 The 2007 appropriation includes $284,000 for 2006 and 214.6 $1,553,000 for 2007. 214.7 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 214.8 adults with disabilities programs under Minnesota Statutes, 214.9 section 124D.56: 214.10 $ 710,000 ..... 2006 214.11 $ 710,000 ..... 2007 214.12 The 2006 appropriation includes $111,000 for 2005 and 214.13 $599,000 for 2006. 214.14 The 2007 appropriation includes $111,000 for 2006 and 214.15 $599,000 for 2007. 214.16 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 214.17 hearing-impaired adults under Minnesota Statutes, section 214.18 124D.57: 214.19 $ 70,000 ..... 2006 214.20 $ 70,000 ..... 2007 214.21 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day aid 214.22 under Minnesota Statutes, section 124D.22: 214.23 $ 17,000 ..... 2006 214.24 $ 7,000 ..... 2007 214.25 The 2006 appropriation includes $4,000 for 2005 and $13,000 214.26 for 2006. 214.27 The 2007 appropriation includes $2,000 for 2006 and $5,000 214.28 for 2007. 214.29 ARTICLE 9 214.30 SELF-SUFFICIENCY AND LIFELONG LEARNING 214.31 Section 1. Minnesota Statutes 2004, section 124D.531, 214.32 subdivision 1, is amended to read: 214.33 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 214.34 (a) The state total adult basic education aid for fiscal year 214.352004 equals $34,388,000. The state total adult basic education214.36aid for fiscal year2005and lateris $36,509,000. The state 215.1 total adult basic education aid for fiscal year 2006 and later 215.2 is $36,518,000 plus any amount that is not paid for during the 215.3 previous fiscal year, as a result of adjustments under 215.4 subdivision 4, paragraph (a), or section 124D.52, subdivision 215.5 3. Beginning in fiscal year 2002, two percent of the state 215.6 total adult basic education aid must be set aside for adult 215.7 basic education supplemental service grants under section 215.8 124D.522. 215.9 (b) The state total adult basic education aid, excluding 215.10 basic population aid, equals the difference between the amount 215.11 computed in paragraph (a), and the state total basic population 215.12 aid under subdivision 2. 215.13 [EFFECTIVE DATE.] This section is effective the day 215.14 following final enactment and applies to revenue distributions 215.15 for fiscal year 2006. 215.16 Sec. 2. Minnesota Statutes 2004, section 124D.531, 215.17 subdivision 4, is amended to read: 215.18 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 215.19 Notwithstanding subdivisions 2 and 3, the total adult basic 215.20 education aid for a program per prior year contact hour must not 215.21 exceed $21 per prior year contact hour computed under 215.22 subdivision 3, clause (2). 215.23 (b) For fiscal year 2004, the aid for a program under 215.24 subdivision 3, clause (2), adjusted for changes in program 215.25 membership, must not exceed the aid for that program under 215.26 subdivision 3, clause (2), for fiscal year 2003 by more than the 215.27 greater of eight percent or $10,000. 215.28 (c) For fiscal year 2005, the aid for a program under 215.29 subdivision 3, clause (2), adjusted for changes in program 215.30 membership, must not exceed the sum of the aid for that program 215.31 under subdivision 3, clause (2), and Laws 2003, First Special 215.32 Session chapter 9, article 9, section 8, paragraph (a), for the 215.33 preceding fiscal year by more than the greater of eight percent 215.34 or $10,000. 215.35 (d) For fiscal year 2006 and later, the aid for a program 215.36 under subdivision 3, clause (2), adjusted for changes in program 216.1 membership, must not exceed the aid for that program under 216.2 subdivision 3, clause (2), for the first preceding fiscal year 216.3 by more than the greater of eight percent or $10,000. 216.4 (e) Adult basic education aid is payable to a program for 216.5 unreimbursed costs occurring in the program year as defined in 216.6 section 124D.52, subdivision 3. 216.7 (f) Any adult basic education aid that is not paid to a 216.8 program because of the program aid limitation under paragraph 216.9 (a) must be added to the state total adult basic education aid 216.10 for the next fiscal year under subdivision 1. Any adult basic 216.11 education aid that is not paid to a program because of the 216.12 program aid limitations under paragraph (b), (c), or (d), must 216.13 be reallocated among programs by adjusting the rate per contact 216.14 hour under subdivision 3, clause (2). 216.15 [EFFECTIVE DATE.] This section is effective the day 216.16 following final enactment and applies to revenue distributions 216.17 for fiscal year 2006. 216.18 Sec. 3. [GRANTS FOR INTENSIVE ENGLISH INSTRUCTION FOR NEW 216.19 ADULT REFUGEES.] 216.20 The commissioner of education shall establish a 216.21 reimbursement grant program to fund intensive English as a 216.22 second language (ESL) programs for adult refugees. Intensive 216.23 ESL programming must provide intensive instruction for adult 216.24 refugees who are making inadequate literacy progress as measured 216.25 by a standard assessment test. The intensive instruction must 216.26 be focused on participants gaining sufficient literacy to 216.27 achieve self-sufficiency through employment. 216.28 Organizations eligible for grants under this section 216.29 include adult basic education programs, school districts, 216.30 postsecondary institutions, and nonprofit or community-based 216.31 organizations or other private organizations with experience in 216.32 providing English language instruction to non-English speaking 216.33 immigrants and refugees. Grant applications must contain 216.34 information required by the commissioner in the form prescribed 216.35 by the commissioner. At a minimum, the application must 216.36 document experience in literacy programs serving immigrants and 217.1 refugees, describe fiscal accounting systems and reporting 217.2 capacity, ensure that administrative expenses are limited to 217.3 five percent of grant funds, and provide a description of the 217.4 proposed instructional services and training plans. Funds must 217.5 be paid to programs on a reimbursement basis. The grant program 217.6 expires on June 30, 2007. 217.7 Sec. 4. [REVISOR'S INSTRUCTION.] 217.8 In the next edition of Minnesota Statutes, the revisor of 217.9 statutes shall renumber Minnesota Statutes, section 119A.46, as 217.10 section 144.9512 and make necessary cross-reference changes. 217.11 Sec. 5. [APPROPRIATIONS.] 217.12 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 217.13 indicated in this section are appropriated from the general fund 217.14 to the Department of Education for the fiscal years designated. 217.15 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 217.16 education aid under Minnesota Statutes: 217.17 $36,518,000 ..... 2006 217.18 $36,540,000 ..... 2007 217.19 The 2006 appropriation includes $5,707,000 for 2005 and 217.20 $30,811,000 for 2006. 217.21 The 2007 appropriation includes $5,737,000 for 2006 and 217.22 $30,803,000 for 2007. 217.23 Subd. 3. [GED TESTS.] For payment of 60 percent of the 217.24 costs of GED tests under Laws 1993, chapter 224, article 4, 217.25 section 44, subdivision 10: 217.26 $ 125,000 ..... 2006 217.27 $ 125,000 ..... 2007 217.28 Subd. 4. [INTENSIVE ENGLISH INSTRUCTION.] For grants for 217.29 intensive English instruction for adult refugees under section 3: 217.30 $1,000,000 ..... 2006 217.31 $1,000,000 ..... 2007 217.32 Subd. 5. [LEAD HAZARD REDUCTION.] For lead hazard 217.33 reduction under Minnesota Statutes, section 119A.46: 217.34 $ 100,000 ..... 2006 217.35 $ 100,000 ..... 2007 217.36 Any balance in the first year does not cancel but is 218.1 available in the second year. The commissioner of education may 218.2 transfer this appropriation to the commissioner of health. 218.3 ARTICLE 10 218.4 STATE AGENCIES 218.5 Section 1. Minnesota Statutes 2004, section 122A.09, 218.6 subdivision 4, is amended to read: 218.7 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 218.8 rules to license public school teachers and interns subject to 218.9 chapter 14. 218.10 (b) The board must adopt rules requiring a person to 218.11 successfully complete a skills examination in reading, writing, 218.12 and mathematics as a requirement for initial teacher licensure. 218.13 Such rules must require college and universities offering a 218.14 board-approved teacher preparation program to provide remedial 218.15 assistance to persons who did not achieve a qualifying score on 218.16 the skills examination, including those for whom English is a 218.17 second language. 218.18 (c) The board must adopt rules to approve teacher 218.19 preparation programs. The board, upon the request of a 218.20 postsecondary student preparing for teacher licensure or a 218.21 licensed graduate of a teacher preparation program, shall assist 218.22 in resolving a dispute between the person and a postsecondary 218.23 institution providing a teacher preparation program when the 218.24 dispute involves an institution's recommendation for licensure 218.25 affecting the person or the person's credentials. At the 218.26 board's discretion, assistance may include the application of 218.27 chapter 14. 218.28 (d) The board must provide the leadership and shall adopt 218.29 rules for the redesign of teacher education programs to 218.30 implement a research based, results-oriented curriculum that 218.31 focuses on the skills teachers need in order to be effective. 218.32 The board shall implement new systems of teacher preparation 218.33 program evaluation to assure program effectiveness based on 218.34 proficiency of graduates in demonstrating attainment of program 218.35 outcomes. 218.36 (e) The board must adopt rules requiring successful 219.1 completion of an examination of general pedagogical knowledge 219.2 and examinations of licensure-specific teaching skills. The 219.3 rules shall be effective on the dates determined by the board 219.4 but not later than September 1, 2001. 219.5 (f) The board must adopt rules requiring teacher educators 219.6 to work directly with elementary or secondary school teachers in 219.7 elementary or secondary schools to obtain periodic exposure to 219.8 the elementary or secondary teaching environment. 219.9 (g) The board must grant licenses to interns and to 219.10 candidates for initial licenses. 219.11 (h) The board must design and implement an assessment 219.12 system which requires a candidate for an initial license and 219.13 first continuing license to demonstrate the abilities necessary 219.14 to perform selected, representative teaching tasks at 219.15 appropriate levels. 219.16 (i) The board must receive recommendations from local 219.17 committees as established by the board for the renewal of 219.18 teaching licenses. 219.19 (j) The board must grant life licenses to those who qualify 219.20 according to requirements established by the board, and suspend 219.21 or revoke licenses pursuant to sections 122A.20 and 214.10. The 219.22 board must not establish any expiration date for application for 219.23 life licenses. 219.24 (k) The board must adopt rules that require all licensed 219.25 teachers who are renewing their continuing license to include in 219.26 their renewal requirements further preparation in the areas of 219.27 using positive behavior interventions and in accommodating, 219.28 modifying, and adapting curricula, materials, and strategies to 219.29 appropriately meet the needs of individual students and ensure 219.30 adequate progress toward the state's graduation rule. 219.31 (l) In adopting rules to license public school teachers who 219.32 provide health-related services for disabled children, the board 219.33 shall adopt rules consistent with license or registration 219.34 requirements of the commissioner of health and the 219.35 health-related boards who license personnel who perform similar 219.36 services outside of the school. 220.1 (m) The board must adopt rules that require all licensed 220.2 teachers who are renewing their continuing license to include in 220.3 their renewal requirements further reading preparation, 220.4 consistent with section 122A.06, subdivision 4. The rules do 220.5 not take effect until they are approved by law. Teachers who do 220.6 not provide direct instruction including, at least, counselors, 220.7 school psychologists, school nurses, school social workers, 220.8 audiovisual directors and coordinators, and recreation personnel 220.9 are exempt from this section. 220.10 (n) The board must adopt rules that require all licensed 220.11 teachers who are renewing their continuing license to include in 220.12 their renewal requirements further preparation in understanding 220.13 the key warning signs of early-onset mental illness in children 220.14 and adolescents. 220.15 (o) The board, in consultation with the department, 220.16 representatives of innovative schools and programs as determined 220.17 by the board, and representatives of charter schools, 220.18 alternative schools, small schools, and rural schools, must 220.19 adopt rules to create an interdisciplinary teaching license. 220.20 Sec. 2. Minnesota Statutes 2004, section 122A.09, 220.21 subdivision 10, is amended to read: 220.22 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 220.23 and section 14.05, subdivision 4, the Board of Teaching may 220.24 grant a variance to its rules upon application by a school 220.25 district for purposes of implementing experimental programs in 220.26 learning or management. 220.27 (b) To enable a school district to meet the needs of 220.28 students enrolled in an alternative education program and to 220.29 enable licensed teachers instructing those students to satisfy 220.30 content area licensure requirements, the Board of Teaching 220.31 annually may permit a licensed teacher teaching in an 220.32 alternative education program to instruct students in a content 220.33 area for which the teacher is not licensed, consistent with 220.34 paragraph (a). 220.35 (c) A special education license variance issued by the 220.36 Board of Teaching for a primary employer's low-incidence region 221.1 shall be valid in all low-incidence regions. 221.2 Sec. 3. [122A.245] [TEACHER TRAINING PROGRAM FOR QUALIFIED 221.3 PROFESSIONALS.] 221.4 Subdivision 1. [SCOPE AND REQUIREMENTS.] (a) As an 221.5 alternative to postsecondary teacher preparation programs, a 221.6 teacher training program is established for qualified 221.7 professionals to acquire an entrance license. Program 221.8 providers, approved by the Board of Teaching under subdivision 221.9 3, may offer the program in the instructional fields of science, 221.10 mathematics, world languages, English as a second language, and 221.11 special education. 221.12 (b) To participate in the teacher training program, the 221.13 teacher applicant must: 221.14 (1) have, at a minimum, a bachelor's degree from an 221.15 accredited four-year postsecondary institution; 221.16 (2) have an undergraduate major or postbaccalaureate degree 221.17 in the subject to be taught or in an equivalent or related 221.18 subject area in which the applicant is seeking licensure; 221.19 (3) pass a skills examination in reading, writing, and 221.20 mathematics required under section 122A.18; 221.21 (4) pass the Praxis II subject assessment for each subject 221.22 area to be taught; 221.23 (5) have a cumulative grade point average of 2.75 or higher 221.24 on a 4.0 scale for a bachelor's degree; 221.25 (6) show employment related to the subject to be taught; 221.26 and 221.27 (7) show a district offer for employment as a teacher 221.28 contingent on participating in an approved program described in 221.29 subdivision 2. 221.30 Subd. 2. [PROGRAM.] A teacher training program under this 221.31 section is one year in duration and must include: 221.32 (1) a nine-credit summer or preinduction preparation 221.33 program that includes classroom management techniques and 221.34 on-site classroom observation that are completed before the 221.35 candidate is employed in the classroom; 221.36 (2) 200 clock hours of instruction in standards of 222.1 effective practice and essential skills that include curriculum, 222.2 instructional strategies, and classroom management presented 222.3 after school or on Saturdays throughout the year leading to a 222.4 teaching license and up to 15 graduate credits toward a master's 222.5 degree in education; 222.6 (3) on-the-job mentoring, supervision, and evaluation 222.7 arranged by the employing district that includes mentoring 222.8 provided by an experienced teacher licensed in the subject 222.9 taught by the applicant, and three evaluations by an evaluation 222.10 team composed of the mentor, the principal, and a training 222.11 program member that include at least three classroom 222.12 observations where the third evaluation contains the team's 222.13 recommendation for licensure and where a written report of each 222.14 evaluation is prepared; and 222.15 (4) a one-week intensive workshop that includes analysis 222.16 and reflection of the first year of teaching after completing 222.17 the school year, which may be counted as part of 200 clock hours 222.18 required in clause (2). 222.19 Subd. 3. [PROGRAM APPROVAL.] An interested Minnesota 222.20 public or private postsecondary institution must submit program 222.21 proposals to the Board of Teaching for approval. 222.22 Notwithstanding any law to the contrary, the Board of 222.23 Teaching must develop criteria for approving teacher training 222.24 programs under this section after considering the 222.25 recommendations of an advisory group appointed by the Board of 222.26 Teaching composed of, at a minimum, the commissioner of 222.27 education or designee, and representatives of school 222.28 superintendents, principals, teachers, and postsecondary 222.29 institutions, including those offering degrees in teaching 222.30 preparation. 222.31 Subd. 4. [ELIGIBILITY LICENSE.] Notwithstanding any law to 222.32 the contrary, the Board of Teaching must issue to an applicant 222.33 who successfully meets the criteria under subdivision 1, 222.34 paragraph (b), a one-year eligibility license to teach at the 222.35 employing district under subdivision 1, paragraph (b), clause 222.36 (7). During the one-year eligibility period, the employing 223.1 district must assign a mentor under subdivision 2, clause (3). 223.2 The applicant teacher and teacher mentor must meet at least 223.3 weekly throughout the school year on classroom and instructional 223.4 issues. 223.5 The hiring district may deduct from the participant's 223.6 salary the cost of providing the mentor for the participant 223.7 during the training year. 223.8 Subd. 5. [STANDARD ENTRANCE LICENSE.] Notwithstanding any 223.9 law to the contrary, the Board of Teaching must issue a standard 223.10 entrance license to a training program licensee who successfully 223.11 completes the program under subdivision 2, successfully teaches 223.12 in a classroom for one complete school year, successfully passes 223.13 the Praxis II principles of learning and teaching, and receives 223.14 a positive recommendation from the applicant's evaluation team. 223.15 Subd. 6. [QUALIFIED TEACHER.] A person with a valid 223.16 eligibility license under subdivision 5 is a qualified teacher 223.17 under section 122A.16. 223.18 Sec. 4. Minnesota Statutes 2004, section 122A.40, 223.19 subdivision 5, is amended to read: 223.20 Subd. 5. [PROBATIONARY PERIOD.] (a) The first three 223.21 consecutive years of a teacher's first teaching experience in 223.22 Minnesota in a single district is deemed to be a probationary 223.23 period of employment, and after completion thereof, the 223.24 probationary period in each district in which the teacher is 223.25 thereafter employed shall be one year. The school board must 223.26 adopt a plan for written evaluation of teachers during the 223.27 probationary period. Evaluation must occur at least three times 223.28 each year for a teacher performing services on 120 or more 223.29 school days, at least two times each year for a teacher 223.30 performing services on 60 to 119 school days, and at least one 223.31 time each year for a teacher performing services on fewer than 223.32 60 school days. Days devoted to parent-teacher conferences, 223.33 teachers' workshops, and other staff development opportunities 223.34 and days on which a teacher is absent from school must not be 223.35 included in determining the number of school days on which a 223.36 teacher performs services. Except as otherwise provided in 224.1 paragraph (b), during the probationary period any annual 224.2 contract with any teacher may or may not be renewed as the 224.3 school board shall see fit. However, the board must give any 224.4 such teacher whose contract it declines to renew for the 224.5 following school year written notice to that effect before July 224.6 1. If the teacher requests reasons for any nonrenewal of a 224.7 teaching contract, the board must give the teacher its reason in 224.8 writing, including a statement that appropriate supervision was 224.9 furnished describing the nature and the extent of such 224.10 supervision furnished the teacher during the employment by the 224.11 board, within ten days after receiving such request. The school 224.12 board may, after a hearing held upon due notice, discharge a 224.13 teacher during the probationary period for cause, effective 224.14 immediately, under section 122A.44. 224.15 (b) A board must discharge a probationary teacher, 224.16 effective immediately, upon receipt of notice under section 224.17 122A.20, subdivision 1, paragraph (b), that the teacher's 224.18 license has been revoked due to a conviction for child abuse or 224.19 sexual abuse. 224.20 (c) A probationary teacher must complete at least 60 days 224.21 of teaching service each year during the probationary period. 224.22 Days devoted to parent-teacher conferences, teachers' workshops, 224.23 and other staff development opportunities and days on which a 224.24 teacher is absent from school do not count as days of teaching 224.25 service under this paragraph. 224.26 [EFFECTIVE DATE.] This section is effective July 1, 2005. 224.27 Sec. 5. Minnesota Statutes 2004, section 122A.41, 224.28 subdivision 2, is amended to read: 224.29 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 224.30 All teachers in the public schools in cities of the first class 224.31 during the first three years of consecutive employment shall be 224.32 deemed to be in a probationary period of employment during which 224.33 period any annual contract with any teacher may, or may not, be 224.34 renewed as the school board, after consulting with the peer 224.35 review committee charged with evaluating the probationary 224.36 teachers under subdivision 3, shall see fit. The school site 225.1 management team or the school board if there is no school site 225.2 management team, shall adopt a plan for a written evaluation of 225.3 teachers during the probationary period according to subdivision 225.4 3. Evaluation by the peer review committee charged with 225.5 evaluating probationary teachers under subdivision 3 shall occur 225.6 at least three times each year for a teacher performing services 225.7 on 120 or more school days, at least two times each year for a 225.8 teacher performing services on 60 to 119 school days, and at 225.9 least one time each year for a teacher performing services on 225.10 fewer than 60 school days. Days devoted to parent-teacher 225.11 conferences, teachers' workshops, and other staff development 225.12 opportunities and days on which a teacher is absent from school 225.13 shall not be included in determining the number of school days 225.14 on which a teacher performs services. The school board may, 225.15 during such probationary period, discharge or demote a teacher 225.16 for any of the causes as specified in this code. A written 225.17 statement of the cause of such discharge or demotion shall be 225.18 given to the teacher by the school board at least 30 days before 225.19 such removal or demotion shall become effective, and the teacher 225.20 so notified shall have no right of appeal therefrom. 225.21 (b) A probationary teacher must complete at least 60 days 225.22 of teaching service each year during the probationary period. 225.23 Days devoted to parent-teacher conferences, teachers' workshops, 225.24 and other staff development opportunities and days on which a 225.25 teacher is absent from school do not count as days of teaching 225.26 service under this paragraph. 225.27 [EFFECTIVE DATE.] This section is effective July 1, 2005. 225.28 Sec. 6. [REPORT.] 225.29 The Board of Teaching, in consultation with approved 225.30 alternative teacher training program providers and the 225.31 Department of Education, must evaluate the efficacy of the 225.32 alternative teacher training program under Minnesota Statutes, 225.33 section 122A.245, through the 2013-2014 school year and by 225.34 February 15, 2015, submit a written report to the kindergarten 225.35 through grade 12 education policy committees of the legislature 225.36 that includes, among other content, recommendations about 226.1 whether to extend or expand the alternative teacher training 226.2 program. 226.3 Sec. 7. [LICENSED STUDENT SUPPORT SERVICES.] 226.4 Subdivision 1. [ACCESS TO SERVICES.] School districts and 226.5 the Department of Education shall work to provide for students' 226.6 educational achievement, to provide for student safety, and to 226.7 enhance student physical, emotional, and social well-being by 226.8 providing access to licensed student support services, such as 226.9 licensed school nurses, licensed school counselors, licensed 226.10 school social workers, and licensed school psychologists. 226.11 Subd. 2. [FUNDING.] Districts and the department shall 226.12 explore opportunities for obtaining additional funds to improve 226.13 students' access to needed licensed student support services 226.14 including, but not limited to, medical assistance 226.15 reimbursements, local collaborative time study funds, federal 226.16 funds, public health funds, and specifically designated funds. 226.17 Subd. 3. [IMPROVING ACCESS.] Districts and the department 226.18 must consider nationally recommended licensed staff-to-student 226.19 ratios, work loads, and best practices when working to improve 226.20 student access to needed licensed student support services. 226.21 Sec. 8. [STATEWIDE STUDENT INFORMATION AND REPORTING 226.22 SYSTEM.] 226.23 Subdivision 1. [WORKING GROUP CONVENED.] (a) The 226.24 commissioner of education must convene a working group composed 226.25 of: 226.26 (1) representatives from school districts, charter schools, 226.27 and area learning centers of diverse size and location chosen by 226.28 the commissioner; 226.29 (2) officials from the Department of Administration 226.30 Materials Management Division; and 226.31 (3) at least three citizens with a demonstrated expertise 226.32 in Web-based student information systems. 226.33 The working group must develop a plan to improve the quality and 226.34 decrease the cost of Minnesota's student information systems. 226.35 (b) When developing its plan under paragraph (a), the group 226.36 at least must determine whether the student information system: 227.1 (1) best operates as a single integrated management system 227.2 or a system with a specified number of vendors that seamlessly 227.3 transfer student data between school districts; 227.4 (2) includes a software license, technical support, and 227.5 also hardware on which the software runs; 227.6 (3) is run in each school district or at a central data 227.7 center; and 227.8 (4) can be run by private sector companies having access to 227.9 students' educational records. 227.10 Subd. 2. [REQUEST FOR PROPOSALS.] The working group, 227.11 consistent with its determinations in subdivision 1, paragraph 227.12 (b), shall develop the framework for a request for proposal or 227.13 "RFP" for the student information and reporting system. The RFP 227.14 must require a vendor to implement a system that: 227.15 (1) meets all of the data collection and reporting 227.16 requirements of the Minnesota Automated Reporting Student 227.17 System; 227.18 (2) enhances state and federal student data collection; 227.19 (3) facilitates value-added assessment systems; 227.20 (4) ensures that the system has secure Web-based 227.21 capabilities for entering and editing data; and 227.22 (5) provides robust data management tools including 227.23 reporting features. 227.24 [EFFECTIVE DATE.] This section is effective the day 227.25 following final enactment. 227.26 Sec. 9. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 227.27 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 227.28 indicated, the sums indicated in this section are appropriated 227.29 from the general fund to the Department of Education for the 227.30 fiscal years designated. 227.31 Subd. 2. [DEPARTMENT.] (a) For the Department of Education: 227.32 $22,057,000 ..... 2006 227.33 $23,887,000 ..... 2007 227.34 Any balance in the first year does not cancel but is 227.35 available in the second year. 227.36 (b) $260,000 each year is for the Minnesota Children's 228.1 Museum. 228.2 (c) $41,000 each year is for the Minnesota Academy of 228.3 Science. 228.4 (d) $605,000 each year is for the Board of Teaching. In 228.5 addition, the commissioner must provide necessary resources to 228.6 complete rulemaking under Minnesota Statutes, section 122A.09, 228.7 subdivision 4. 228.8 (e) $160,000 each year is for the Board of School 228.9 Administrators. 228.10 (f) $10,000 in fiscal year 2006 and $15,000 in fiscal year 228.11 2007 are for administration of single purpose charter school 228.12 sponsors. 228.13 (g) $500,000 in fiscal year 2007 is for alternative teacher 228.14 licensure programs. 228.15 (h) $300,000 in fiscal year 2006 and $1,600,000 in fiscal 228.16 year 2007 are for value-added index assessment model. 228.17 (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year 228.18 2007 are for the development and distribution to school 228.19 districts of materials addressing the dangers of methamphetamine. 228.20 (j) The expenditures of federal grants and aids as shown in 228.21 the biennial budget document and its supplements are approved 228.22 and appropriated and shall be spent as indicated. 228.23 Sec. 10. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 228.24 The sums indicated in this section are appropriated from 228.25 the general fund to the Minnesota State Academies for the Deaf 228.26 and the Blind for the fiscal years designated: 228.27 $11,078,000 ..... 2006 228.28 $11,153,000 ..... 2007 228.29 Any balance in the first year does not cancel but is 228.30 available in the second year. 228.31 Sec. 11. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 228.32 EDUCATION.] 228.33 The sums indicated in this section are appropriated from 228.34 the general fund to the Perpich Center for Arts Education for 228.35 the fiscal years designated: 228.36 $6,255,000 ..... 2006 229.1 $6,255,000 ..... 2007 229.2 Any balance in the first year does not cancel but is 229.3 available in the second year. 229.4 Sec. 12. [REPEALER.] 229.5 Minnesota Statutes 2004, section 122A.24, is repealed. 229.6 ARTICLE 11 229.7 FORECAST DEFICIENCIES 229.8 A. GENERAL EDUCATION 229.9 Section 1. Laws 2003, First Special Session chapter 9, 229.10 article 1, section 53, subdivision 2, as amended by Laws 2004, 229.11 chapter 272, article 1, section 1, is amended to read: 229.12 Subd. 2. [GENERAL EDUCATION AID.] For general education 229.13 aid under Minnesota Statutes, section 126C.13, subdivision 4: 229.14 $4,726,466,000 ..... 2004 229.15$5,026,983,000$5,281,781,000 ..... 2005 229.16 The 2004 appropriation includes $860,552,000 for 2003 and 229.17 $3,865,914,000 for 2004. 229.18 The 2005 appropriation includes 229.19$1,009,822,000$1,009,526,000 for 2004 229.20 and$4,017,161,000$4,272,255,000 for 2005. 229.21 Sec. 2. Laws 2003, First Special Session chapter 9, 229.22 article 1, section 53, subdivision 3, as amended by Laws 2004, 229.23 chapter 272, article 1, section 2, is amended to read: 229.24 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 229.25 referendum tax base replacement aid under Minnesota Statutes, 229.26 section 126C.17, subdivision 7a: 229.27 $8,096,000 ..... 2004 229.28$8,596,000$9,007,000 ..... 2005 229.29 The 2004 appropriation includes $1,419,000 for 2003 and 229.30 $6,677,000 for 2004. 229.31 The 2005 appropriation includes $1,669,000 for 2004 and 229.32$6,927,000$7,338,000 for 2005. 229.33 Sec. 3. Laws 2003, First Special Session chapter 9, 229.34 article 1, section 53, subdivision 11, as amended by Laws 2004, 229.35 chapter 272, article 1, section 5, is amended to read: 229.36 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 230.1 education aid under Minnesota Statutes, sections 123B.40 to 230.2 123B.43 and 123B.87: 230.3 $14,411,000 ..... 2004 230.4$15,072,000$15,304,000 ..... 2005 230.5 The 2004 appropriation includes $2,715,000 for 2003 and 230.6 $11,696,000 for 2004. 230.7 The 2005 appropriation includes $2,923,000 for 2004 and 230.8$12,149,000$12,381,000 for 2005. 230.9 Sec. 4. Laws 2003, First Special Session chapter 9, 230.10 article 1, section 53, subdivision 12, as amended by Laws 2004, 230.11 chapter 272, article 1, section 6, is amended to read: 230.12 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 230.13 pupil transportation aid under Minnesota Statutes, section 230.14 123B.92, subdivision 9: 230.15 $20,471,000 ..... 2004 230.16$21,421,000$21,703,000 ..... 2005 230.17 The 2004 appropriation includes $3,990,000 for 2003 and 230.18 $16,481,000 for 2004. 230.19 The 2005 appropriation includes $4,120,000 for 2004 and 230.20$17,301,000$17,583,000 for 2005. 230.21 B. EDUCATION EXCELLENCE 230.22 Sec. 5. Laws 2003, First Special Session chapter 9, 230.23 article 2, section 55, subdivision 2, as amended by Laws 2004, 230.24 chapter 272, article 1, section 7, is amended to read: 230.25 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 230.26 lease aid under Minnesota Statutes, section 124D.11, subdivision 230.27 4: 230.28 $16,753,000 ..... 2004 230.29$21,347,000$21,410,000 ..... 2005 230.30 The 2004 appropriation includes $2,524,000 for 2003 and 230.31 $14,229,000 for 2004. 230.32 The 2005 appropriation includes $3,557,000 for 2004 and 230.33$17,790,000$17,853,000 for 2005. 230.34 Sec. 6. Laws 2003, First Special Session chapter 9, 230.35 article 2, section 55, subdivision 5, as amended by Laws 2004, 230.36 chapter 272, article 1, section 10, is amended to read: 231.1 Subd. 5. [INTEGRATION AID.] For integration aid under 231.2 Minnesota Statutes, section 124D.86, subdivision 5: 231.3 $55,911,000 ..... 2004 231.4$55,893,000$57,756,000 ..... 2005 231.5 The 2004 appropriation includes $8,428,000 for 2003 and 231.6 $47,483,000 for 2004. 231.7 The 2005 appropriation includes $11,870,000 for 2004 and 231.8$44,023,000$45,886,000 for 2005. 231.9 Sec. 7. Laws 2003, First Special Session chapter 9, 231.10 article 2, section 55, subdivision 9, as amended by Laws 2004, 231.11 chapter 272, article 1, section 12, is amended to read: 231.12 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 231.13 success for the future grants under Minnesota Statutes, section 231.14 124D.81: 231.15 $2,061,000 ..... 2004 231.16$2,137,000$2,229,000 ..... 2005 231.17 The 2004 appropriation includes $351,000 for 2003 and 231.18 $1,710,000 for 2004. 231.19 The 2005 appropriation includes $427,000 for 2004 and 231.20$1,710,000$1,802,000 for 2005. 231.21 Sec. 8. Laws 2003, First Special Session chapter 9, 231.22 article 2, section 55, subdivision 12, as amended by Laws 2004, 231.23 chapter 272, article 1, section 13, is amended to read: 231.24 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 231.25 school aid under Minnesota Statutes, section 124D.83: 231.26 $1,617,000 ..... 2004 231.27$2,185,000$2,203,000 ..... 2005 231.28 The 2004 appropriation includes $285,000 for 2003 and 231.29 $1,332,000 for 2004. 231.30 The 2005 appropriation includes $333,000 for 2004 and 231.31$1,852,000$1,870,000 for 2005. 231.32 C. SPECIAL PROGRAMS 231.33 Sec. 9. Laws 2003, First Special Session chapter 9, 231.34 article 3, section 20, subdivision 2, is amended to read: 231.35 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 231.36 education aid under Minnesota Statutes, section 125A.75: 232.1 $515,091,000 ..... 2004 232.2$529,460,000$552,214,000 ..... 2005 232.3 The 2004 appropriation includes $90,577,000 for 2003 and 232.4 $424,514,000 for 2004. 232.5 The 2005 appropriation includes $106,128,000 for 2004 and 232.6$423,332,000$446,086,000 for 2005. 232.7 Sec. 10. Laws 2003, First Special Session chapter 9, 232.8 article 3, section 20, subdivision 4, as amended by Laws 2004, 232.9 chapter 272, article 1, section 14, is amended to read: 232.10 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 232.11 under Minnesota Statutes, section 125A.75, subdivision 3, for 232.12 children with disabilities placed in residential facilities 232.13 within the district boundaries for whom no district of residence 232.14 can be determined: 232.15 $2,311,000 ..... 2004 232.16$2,550,000$3,155,000 ..... 2005 232.17 If the appropriation for either year is insufficient, the 232.18 appropriation for the other year is available. 232.19 Sec. 11. Laws 2003, First Special Session chapter 9, 232.20 article 3, section 20, subdivision 5, as amended by Laws 2004, 232.21 chapter 272, article 1, section 15, is amended to read: 232.22 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 232.23 teacher travel for home-based services under Minnesota Statutes, 232.24 section 125A.75, subdivision 1: 232.25 $173,000 ..... 2004 232.26$178,000$187,000 ..... 2005 232.27 The 2004 appropriation includes $34,000 for 2003 and 232.28 $139,000 for 2004. 232.29 The 2005 appropriation includes $34,000 for 2004 and 232.30$144,000$153,000 for 2005. 232.31 Sec. 12. Laws 2003, First Special Session chapter 9, 232.32 article 3, section 20, subdivision 8, as amended by Laws 2004, 232.33 chapter 272, article 1, section 18, is amended to read: 232.34 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 232.35 transition programs for children with disabilities under 232.36 Minnesota Statutes, section 124D.454: 233.1 $8,570,000 ..... 2004 233.2$8,760,000$9,176,000 ..... 2005 233.3 The 2004 appropriation includes $1,516,000 for 2003 and 233.4 $7,054,000 for 2004. 233.5 The 2005 appropriation includes $1,763,000 for 2004 and 233.6$6,997,000$7,413,000 for 2005. 233.7 Sec. 13. Laws 2003, First Special Session chapter 9, 233.8 article 3, section 20, subdivision 9, as amended by Laws 2004, 233.9 chapter 272, article 1, section 19, is amended to read: 233.10 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 233.11 reimbursing serving school districts for unreimbursed eligible 233.12 expenditures attributable to children placed in the serving 233.13 school district by court action under Minnesota Statutes, 233.14 section 125A.79, subdivision 4: 233.15 $36,000 ..... 2004 233.16$61,000$62,000 ..... 2005 233.17 D. FACILITIES AND TECHNOLOGY 233.18 Sec. 14. Laws 2003, First Special Session chapter 9, 233.19 article 4, section 31, subdivision 2, as amended by Laws 2004, 233.20 chapter 272, article 1, section 21, is amended to read: 233.21 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 233.22 safety aid according to Minnesota Statutes, section 123B.57, 233.23 subdivision 5: 233.24 $5,356,000 ..... 2004 233.25$1,920,000$2,099,000 ..... 2005 233.26 The 2004 appropriation includes $1,516,000 for 2003 and 233.27 $3,840,000 for 2004. 233.28 The 2005 appropriation includes $960,000 for 2004 and 233.29$960,000$1,139,000 for 2005. 233.30 Sec. 15. Laws 2003, First Special Session chapter 9, 233.31 article 4, section 31, subdivision 3, as amended by Laws 2004, 233.32 chapter 272, article 1, section 22, is amended to read: 233.33 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 233.34 according to Minnesota Statutes, section 123B.53, subdivision 6: 233.35 $35,598,000 ..... 2004 233.36$31,220,000$32,495,000 ..... 2005 234.1 The 2004 appropriation includes $5,586,000 for 2003 and 234.2 $30,012,000 for 2004. 234.3 The 2005 appropriation includes $7,503,000 for 2004 and 234.4$23,717,000$24,992,000 for 2005. 234.5 Sec. 16. Laws 2003, First Special Session chapter 9, 234.6 article 4, section 31, subdivision 4, is amended to read: 234.7 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 234.8 alternative facilities bonding aid, according to Minnesota 234.9 Statutes, section 123B.59, subdivision 1: 234.10 $18,708,000 ..... 2004 234.11$19,287,000$20,116,000 ..... 2005 234.12 The 2004 appropriation includes $3,278,000 for 2003 and 234.13 $15,430,000 for 2004. 234.14 The 2005 appropriation includes $3,857,000 for 2004 and 234.15$15,430,000$16,259,000 for 2005. 234.16 E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 234.17 Sec. 17. Laws 2003, First Special Session chapter 9, 234.18 article 5, section 35, subdivision 3, as amended by Laws 2004, 234.19 chapter 272, article 1, section 24, is amended to read: 234.20 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 234.21 MILK.] For traditional school breakfast aid and kindergarten 234.22 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 234.23 $4,382,000 ..... 2004 234.24$4,460,000$4,548,000 ..... 2005 234.25 F. LIBRARIES 234.26 Sec. 18. Laws 2003, First Special Session chapter 9, 234.27 article 6, section 4, as amended by Laws 2004, chapter 272, 234.28 article 1, section 25, and Laws 2004, chapter 286, section 3, is 234.29 amended to read: 234.30 Sec. 4. [APPROPRIATIONS.] 234.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 234.32 indicated in this section are appropriated from the general fund 234.33 to the department of education for the fiscal years designated. 234.34 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 234.35 grants under Minnesota Statutes, section 134.355: 234.36 $8,312,000 ..... 2004 235.1$8,570,000$8,939,000 ..... 2005 235.2 The 2004 appropriation includes $1,456,000 for 2003 and 235.3 $6,856,000 for 2004. 235.4 The 2005 appropriation includes $1,714,000 for 2004 and 235.5$6,856,000$7,225,000 for 2005. 235.6 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 235.7 regional library telecommunications aid under Minnesota 235.8 Statutes, section 134.355: 235.9 $960,000 ..... 2004 235.10$1,200,000$1,252,000 ..... 2005 235.11 The 2004 appropriation includes $960,000 for 2004. 235.12 The 2005 appropriation includes $240,000 for 2004 and 235.13$960,000$1,012,000 for 2005. 235.14 Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 235.15 grants according to Minnesota Statutes, sections 134.353 and 235.16 134.354, to multicounty, multitype library systems: 235.17 $876,000 ..... 2004 235.18$903,000$942,000 ..... 2005 235.19 The 2004 appropriation includes $153,000 for 2003 and 235.20 $723,000 for 2004. 235.21 The 2005 appropriation includes $180,000 for 2004 and 235.22$723,000$762,000 for 2005. 235.23 Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 235.24 licenses to on-line databases selected in cooperation with the 235.25 higher education services office for school media centers, 235.26 public libraries, state government agency libraries, and public 235.27 or private college or university libraries: 235.28 $400,000 ..... 2004 235.29 $400,000 ..... 2005 235.30 Any balance in the first year does not cancel but is 235.31 available in the second year. 235.32 G. EARLY CHILDHOOD FAMILY SUPPORT 235.33 Sec. 19. Laws 2003, First Special Session chapter 9, 235.34 article 7, section 11, subdivision 2, is amended to read: 235.35 Subd. 2. [SCHOOL READINESS.] For revenue for school 235.36 readiness programs under Minnesota Statutes, sections 124D.15 236.1 and 124D.16: 236.2 $ 9,536,000 ..... 2004 236.3$ 9,258,000$9,594,000 ..... 2005 236.4 The 2004 appropriation includes $1,605,000 for 2003 and 236.5 $7,931,000 for 2004. 236.6 The 2005 appropriation includes $1,982,000 for 2004 and 236.7$7,276,000$7,612,000 for 2005. 236.8 Sec. 20. Laws 2003, First Special Session chapter 9, 236.9 article 7, section 11, subdivision 4, is amended to read: 236.10 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 236.11 health and developmental screening aid under Minnesota Statutes, 236.12 sections 121A.17 and 121A.19: 236.13 $2,581,000 ..... 2004 236.14$2,661,000$2,776,000 ..... 2005 236.15 The 2004 appropriation includes $452,000 for 2003 and 236.16 $2,129,000 for 2004. 236.17 The 2005 appropriation includes $532,000 for 2004 and 236.18$2,129,000$2,244,000 for 2005. 236.19 H. PREVENTION 236.20 Sec. 21. Laws 2003, First Special Session chapter 9, 236.21 article 8, section 7, subdivision 2, as amended by Laws 2004, 236.22 chapter 272, article 1, section 27, is amended to read: 236.23 Subd. 2. [COMMUNITY EDUCATION AID.] For community 236.24 education aid under Minnesota Statutes, section 124D.20: 236.25 $5,351,000 ..... 2004 236.26$3,137,000$3,198,000 ..... 2005 236.27 The 2004 appropriation includes $956,000 for 2003 and 236.28 $4,395,000 for 2004. 236.29 The 2005 appropriation includes $1,098,000 for 2004 and 236.30$2,039,000$2,100,000 for 2005. 236.31 Sec. 22. Laws 2003, First Special Session chapter 9, 236.32 article 8, section 7, subdivision 3, is amended to read: 236.33 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 236.34 adults with disabilities programs under Minnesota Statutes, 236.35 section 124D.56: 236.36 $688,000 ..... 2004 237.1$710,000$741,000 ..... 2005 237.2 The 2004 appropriation includes $120,000 for 2003 and 237.3 $568,000 for 2004. 237.4 The 2005 appropriation includes $142,000 for 2004 and 237.5$568,000$599,000 for 2005. 237.6 Sec. 23. Laws 2003, First Special Session chapter 9, 237.7 article 8, section 7, subdivision 5, as amended by Laws 2004, 237.8 chapter 272, article 1, section 28, is amended to read: 237.9 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 237.10 aid under Minnesota Statutes, section 124D.22: 237.11 $40,000 ..... 2004 237.12$24,000$30,000 ..... 2005 237.13 The 2004 appropriation includes $14,000 for 2003 and 237.14 $26,000 for 2004. 237.15 The 2005 appropriation includes $6,000 for 2004 and 237.16$18,000$24,000 for 2005. 237.17 I. SELF-SUFFICIENCY AND LIFELONG LEARNING 237.18 Sec. 24. Laws 2003, First Special Session chapter 9, 237.19 article 9, section 9, subdivision 2, as amended by Laws 2004, 237.20 chapter 272, article 1, section 29, is amended to read: 237.21 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 237.22 education aid under Minnesota Statutes, section 124D.52, in 237.23 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 237.24 fiscal year 2005: 237.25 $33,014,000 ..... 2004 237.26$35,808,000$37,444,000 ..... 2005 237.27 The 2004 appropriation includes $5,827,000 for 2003 and 237.28 $27,187,000 for 2004. 237.29 The 2005 appropriation includes $6,796,000 for 2004 and 237.30$29,012,000$30,648,000 for 2005. 237.31 Sec. 25. [EFFECTIVE DATE.] 237.32 Sections 1 to 24 are effective the day following final 237.33 enactment. 237.34 ARTICLE 12 237.35 TECHNICAL AND CONFORMING AMENDMENTS 237.36 Section 1. Minnesota Statutes 2004, section 120B.31, 238.1 subdivision 4, is amended to read: 238.2 Subd. 4. [STATISTICAL ADJUSTMENTS.] In developing policies 238.3 and assessment processes to hold schools and districts 238.4 accountable for high levels of academic standards, including the238.5profile of learningunder section 120B.021, the commissioner 238.6 shall aggregate student data over time to report student 238.7 performance levels measured at the school district, regional, or 238.8 statewide level. When collecting and reporting the data, the 238.9 commissioner shall: (1) acknowledge the impact of significant 238.10 demographic factors such as residential instability, the number 238.11 of single parent families, parents' level of education, and 238.12 parents' income level on school outcomes; and (2) organize and 238.13 report the data so that state and local policy makers can 238.14 understand the educational implications of changes in districts' 238.15 demographic profiles over time. Any report the commissioner 238.16 disseminates containing summary data on student performance must 238.17 integrate student performance and the demographic factors that 238.18 strongly correlate with that performance. 238.19 Sec. 2. Minnesota Statutes 2004, section 121A.41, 238.20 subdivision 10, is amended to read: 238.21 Subd. 10. [SUSPENSION.] "Suspension" means an action by 238.22 the school administration, under rules promulgated by the school 238.23 board, prohibiting a pupil from attending school for a period of 238.24 no more than ten school days. If a suspension is longer than 238.25 five days, the suspending administrator must provide the 238.26 superintendent with a reason for the longer suspension. This 238.27 definition does not apply to dismissal from school for one 238.28 school day or less, except as provided in federal law for a 238.29 student with a disability. Each suspension action may include a 238.30 readmission plan. The readmission plan shall include, where 238.31 appropriate, a provision for implementing alternative 238.32 educational services upon readmission and may not be used to 238.33 extend the current suspension. Consistent with section 238.34125A.09125A.091, subdivision35, the readmission plan must not 238.35 obligate a parent to provide a sympathomimetic medication for 238.36 the parent's child as a condition of readmission. The school 239.1 administration may not impose consecutive suspensions against 239.2 the same pupil for the same course of conduct, or incident of 239.3 misconduct, except where the pupil will create an immediate and 239.4 substantial danger to self or to surrounding persons or 239.5 property, or where the district is in the process of initiating 239.6 an expulsion, in which case the school administration may extend 239.7 the suspension to a total of 15 days. In the case of a student 239.8 with a disability, the student's individual education plan team 239.9 must meet immediately but not more than ten school days after 239.10 the date on which the decision to remove the student from the 239.11 student's current education placement is made. The individual 239.12 education plan team and other qualified personnel shall at that 239.13 meeting: conduct a review of the relationship between the 239.14 child's disability and the behavior subject to disciplinary 239.15 action; and determine the appropriateness of the child's 239.16 education plan. 239.17 The requirements of the individual education plan team 239.18 meeting apply when: 239.19 (1) the parent requests a meeting; 239.20 (2) the student is removed from the student's current 239.21 placement for five or more consecutive days; or 239.22 (3) the student's total days of removal from the student's 239.23 placement during the school year exceed ten cumulative days in a 239.24 school year. The school administration shall implement 239.25 alternative educational services when the suspension exceeds 239.26 five days. A separate administrative conference is required for 239.27 each period of suspension. 239.28 Sec. 3. Minnesota Statutes 2004, section 124D.40, is 239.29 amended to read: 239.30 124D.40 [YOUTH WORKS GRANTS.] 239.31 Subdivision 1. [APPLICATION.] An eligible organization 239.32 interested in receiving a grant under sections 124D.39 to 239.33 124D.44 may prepare and submit an application to the commission 239.34an application that complies with section 124D.41. 239.35 Subd. 2. [GRANT AUTHORITY.] The commission must use any 239.36 state appropriation and any available federal funds, including 240.1 any grant received under federal law, to award grants to 240.2 establish programs for youth worksmeeting the requirements of240.3section 124D.41. At least one grant each must be available for 240.4 a metropolitan proposal, a rural proposal, and a statewide 240.5 proposal. If a portion of the suburban metropolitan area is not 240.6 included in the metropolitan grant proposal, the statewide grant 240.7 proposal must incorporate at least one suburban metropolitan 240.8 area. In awarding grants, the commission may select at least 240.9 one residential proposal and one nonresidential proposal,240.10provided the proposals meet or exceed the criteria in section240.11124D.41. 240.12 Sec. 4. Minnesota Statutes 2004, section 127A.41, 240.13 subdivision 8, is amended to read: 240.14 Subd. 8. [APPROPRIATION TRANSFERS.] (a) If a direct 240.15 appropriation from the general fund to the department for any 240.16 education aid or grant authorized in this chapter and chapters 240.17 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 240.18 appropriations under sections 124D.135, 124D.16, 124D.20, 240.19124D.21,124D.22, 124D.52, 124D.531,124D.54,124D.55, and 240.20 124D.56, exceeds the amount required, the commissioner may 240.21 transfer the excess to any education aid or grant appropriation 240.22 that is insufficient. However, section 126C.20 applies to a 240.23 deficiency in the direct appropriation for general education 240.24 aid. Excess appropriations must be allocated proportionately 240.25 among aids or grants that have insufficient appropriations. The 240.26 commissioner of finance shall make the necessary transfers among 240.27 appropriations according to the determinations of the 240.28 commissioner. If the amount of the direct appropriation for the 240.29 aid or grant plus the amount transferred according to this 240.30 subdivision is insufficient, the commissioner shall prorate the 240.31 available amount among eligible districts. The state is not 240.32 obligated for any additional amounts. 240.33 (b) Transfers for aids paid under section 127A.45, 240.34 subdivisions 12, paragraph (a), 12a, paragraph (a), and 13, 240.35 shall be made during the fiscal year after the fiscal year of 240.36 the entitlement. Transfers for aids paid under section 127A.45, 241.1 subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 241.2 shall be made during the fiscal year of the appropriation. 241.3 Sec. 5. Minnesota Statutes 2004, section 127A.45, 241.4 subdivision 12, is amended to read: 241.5 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 241.6 hundred percent of the aid for the current fiscal year must be 241.7 paid for the following aids: reimbursement for enrollment 241.8 options transportation, according to sections 124D.03, 241.9 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 241.10 lunch aid, according to section 124D.111; hearing impaired 241.11 support services aid, according to section 124D.57; and Indian 241.12 postsecondary preparation grants according to section 241.13124D.80124D.81. 241.14 (b) One hundred percent of the aid for the current fiscal 241.15 year, based on enrollment in the previous year, must be paid for 241.16 the first grade preparedness program according to section 241.17 124D.081.