Minnesota Legislature
HF 872
3rd 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, 9, 1.32 12; 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 subdivisions 1, 3; 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, sections 51; 53, 2.23 subdivisions 2, as amended, 3, as amended, 11, as 2.24 amended, 12, as amended; Laws 2003, First Special 2.25 Session chapter 9, article 2, section 55, subdivisions 2.26 2, as amended, 5, as amended, 9, as amended, 12, as 2.27 amended; Laws 2003, First Special Session chapter 9, 2.28 article 3, section 20, subdivisions 2, 4, as amended, 2.29 5, as amended, 6, as amended, 8, as amended, 9, as 2.30 amended; Laws 2003, First Special Session chapter 9, 2.31 article 4, section 31, subdivisions 2, as amended, 3, 2.32 as amended, 4; Laws 2003, First Special Session 2.33 chapter 9, article 5, section 35, subdivision 3, as 2.34 amended; Laws 2003, First Special Session chapter 9, 2.35 article 6, section 4, as amended; Laws 2003, First 2.36 Special Session chapter 9, article 7, section 11, 2.37 subdivisions 2, 4; Laws 2003, First Special Session 2.38 chapter 9, article 8, section 7, subdivisions 2, as 2.39 amended, 3, 5, as amended; Laws 2003, First Special 2.40 Session chapter 9, article 9, section 9, subdivision 2.41 2, as amended; proposing coding for new law in 2.42 Minnesota Statutes, chapters 120A; 120B; 121A; 122A; 2.43 123A; 123B; 124D; 125B; 129C; 171; 179A; repealing 2.44 Minnesota Statutes 2004, sections 122A.24; 122A.415, 2.45 subdivision 2; 123B.05; 123B.83, subdivision 1; 2.46 124D.095; 124D.15, subdivisions 2, 4, 6, 7, 8, 9, 11, 2.47 13; 124D.16, subdivisions 1, 4; 126C.12; 126C.42, 2.48 subdivisions 1, 4; 128C.12, subdivision 4. 2.49 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.50 ARTICLE 1 2.51 GENERAL EDUCATION 2.52 Section 1. Minnesota Statutes 2004, section 120A.05, is 2.53 amended by adding a subdivision to read: 2.54 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 2.55 designed for pupils five years of age on September 1 of the 2.56 calendar year in which the school year commences that prepares 2.57 pupils to enter first grade the following school year. A 2.58 program designed for pupils younger than five years of age on 2.59 September 1 of the calendar year in which the school year 3.1 commences that prepares pupils to enter kindergarten the 3.2 following school year is a prekindergarten program. 3.3 [EFFECTIVE DATE.] This section is effective the day 3.4 following final enactment. 3.5 Sec. 2. Minnesota Statutes 2004, section 123A.05, 3.6 subdivision 2, is amended to read: 3.7 Subd. 2. [RESERVE REVENUE.] Each district that is a member 3.8 of an area learning center must reserve revenue in an amount 3.9 equal to the sum of (1) at least 90 percent of the district 3.10 average general education revenue per pupil unit minus an amount 3.11 equal to the product of the formula allowance according to 3.12 section 126C.10, subdivision 2, times .0485, calculated without 3.13 basic skills revenue,and transportation sparsity revenue,and3.14the transportation portion of the transition revenue adjustment,3.15 times the number of pupil units attending an area learning 3.16 center program under this section, plus (2) the amount of basic 3.17 skills revenue generated by pupils attending the area learning 3.18 center. The amount of reserved revenue under this subdivision 3.19 may only be spent on program costs associated with the area 3.20 learning center.Compensatory revenue must be allocated3.21according to section 126C.15, subdivision 2.3.22 Sec. 3. Minnesota Statutes 2004, section 123B.42, 3.23 subdivision 3, is amended to read: 3.24 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 3.25 textbooks, individualized instructional or cooperative learning 3.26 materials, and standardized tests provided for in this section 3.27 for each school year must not exceed the statewide average 3.28 expenditure per pupil, adjustedpursuantaccording toclause3.29 paragraph (b), by the Minnesota public elementary and secondary 3.30 schools for textbooks, individualized instructional materials 3.31 and standardized tests as computed and established by the 3.32 department by February 1 of the preceding school year from the 3.33 most recent public school year data then available. 3.34 (b) The cost computed inclauseparagraph (a) shall be 3.35 increased by an inflation adjustment equal tothe percent of3.36increase in the formula allowance, pursuant to section 126C.10,4.1subdivision 2, from the second preceding school year to the4.2current school year3.0 percent for fiscal year 2006, 6.19 4.3 percent for fiscal year 2007, and 3.1 percent for fiscal year 4.4 2008. 4.5 (c) The commissioner shall allot to the districts or 4.6 intermediary service areas the total cost for each school year 4.7 of providing or loaning the textbooks, individualized 4.8 instructional or cooperative learning materials, and 4.9 standardized tests for the pupils in each nonpublic school. The 4.10 allotment shall not exceed the product of the statewide average 4.11 expenditure per pupil, according to clause (a), adjusted 4.12 pursuant to clause (b), multiplied by the number of nonpublic 4.13 school pupils who make requests pursuant to this section and who 4.14 are enrolled as of September 15 of the current school year. 4.15 Sec. 4. Minnesota Statutes 2004, section 123B.75, is 4.16 amended by adding a subdivision to read: 4.17 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 4.18 a calendar year by a school district under section 298.28, 4.19 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 4.20 is fully recognized in the fiscal year in which the February 4.21 payment falls. 4.22 [EFFECTIVE DATE.] This section is effective for revenue for 4.23 fiscal year 2006. 4.24 Sec. 5. Minnesota Statutes 2004, section 123B.76, 4.25 subdivision 3, is amended to read: 4.26 Subd. 3. [EXPENDITURES BY BUILDING.] (a) For the purposes 4.27 of this section, "building" means education site as defined in 4.28 section 123B.04, subdivision 1. 4.29 (b) Each district shall maintain separate accounts to 4.30 identify general fund expenditures, excluding capital4.31expenditures and pupil transportation,for each building. All 4.32 expenditures for regular instruction, secondary vocational 4.33 instruction, and school administration must be reported to the 4.34 department separately for each building. All expenditures for 4.35 special education instruction, instructional support services, 4.36 and pupil support services provided within a specific building 5.1 must be reported to the department separately for each 5.2 building. Salary expenditures reported by building must reflect 5.3 actual salaries for staff at the building and must not be based 5.4 on districtwide averages. All other general fund expenditures 5.5 may be reported by building or on a districtwide basis. 5.6 (c) The department must annually report information showing 5.7 school district general fund expenditures per pupil by program 5.8 category for each building and estimated school district general 5.9 fund revenue generated by pupils attending each building on its 5.10 Web site. For purposes of this report: 5.11 (1) expenditures notrequired to bereported by building 5.12 shall be allocated among buildings on a uniform per pupil basis; 5.13 (2) basic skills revenue shall be allocated according to 5.14 section 126C.10, subdivision 4; 5.15 (3) secondary sparsity revenue and elementary sparsity 5.16 revenue shall be allocated according to section 126C.10, 5.17 subdivisions 7 and 8; 5.18 (4) other general education revenue shall be allocated on a 5.19 uniform per pupil unit basis; 5.20 (5) first grade preparedness aid shall be allocated 5.21 according to section 124D.081; 5.22 (6) state and federal special education aid and Title I aid 5.23 shall be allocated in proportion to district expenditures for 5.24 these programs by building; and 5.25 (7) other general fund revenues shall be allocated on a 5.26 uniform per pupil basis, except that the department may allocate 5.27 other revenues attributable to specific buildings directly to 5.28 those buildings. 5.29 Sec. 6. Minnesota Statutes 2004, section 123B.79, 5.30 subdivision 6, is amended to read: 5.31 Subd. 6. [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 5.32 On June 30 of each year, a district may make a permanent 5.33 transfer from the general fund account entitled "undesignated5.34 net unreserved general fund balance since statutory operating 5.35 debt" to the account entitled "reserved fund balance reserve 5.36 account for purposes of statutory operating debt reduction." 6.1 The amount of the transfer is limited to the lesser of (a) the 6.2 netundesignated operatingunreserved general fund balance, or 6.3 (b) the sum of the remaining statutory operating debt levies 6.4 authorized for all future years according to section 126C.42, 6.5 subdivision 1. If the netundesignated operatingunreserved 6.6 general fund balance is less than zero, the district may not 6.7 make a transfer. 6.8 Sec. 7. Minnesota Statutes 2004, section 123B.81, 6.9 subdivision 1, is amended to read: 6.10 Subdivision 1. [OPERATING DEBT.] The "operating debt" of a 6.11 school district means the net negativeundesignatedunreserved 6.12 general fund balancein all school district funds, other than6.13capital expenditure, building construction, debt service, and6.14trust and agency,calculated as of June 30 of each year in 6.15 accordance with the uniform financial accounting and reporting 6.16 standards for Minnesota school districts. 6.17 Sec. 8. Minnesota Statutes 2004, section 123B.82, is 6.18 amended to read: 6.19 123B.82 [REORGANIZATION OPERATING DEBT.] 6.20 The "reorganization operating debt" of a school district 6.21 means the net negativeundesignatedunreserved fundbalance6.22 balances in all school district funds, other than building 6.23 construction, debt redemption, and trust and agency, calculated 6.24 in accordance with the uniform financial accounting and 6.25 reporting standards for Minnesota school districts as of: 6.26 (1) June 30 of the fiscal year before the first year that a 6.27 district receives revenue according to section 123A.39, 6.28 subdivision 3; or 6.29 (2) June 30 of the fiscal year before the effective date of 6.30 reorganization according to section 123A.46 or 123A.48. 6.31 Sec. 9. Minnesota Statutes 2004, section 123B.83, 6.32 subdivision 2, is amended to read: 6.33 Subd. 2. [UNDESIGNATEDUNRESERVED FUND BALANCES.] 6.34Beginning in fiscal year 1978 and each year thereafter, anyA 6.35 school districtnot subject to the provisions of subdivision 16.36 must limit its expenditures so that itsundesignatednet 7.1 unreserved general fundbalances dobalance does not constitute 7.2 statutory operating debt as defined in section 126C.42. 7.3 Sec. 10. Minnesota Statutes 2004, section 123B.92, 7.4 subdivision 1, is amended to read: 7.5 Subdivision 1. [DEFINITIONS.] For purposes of this section 7.6 and section 125A.76, the terms defined in this subdivision have 7.7 the meanings given to them. 7.8 (a) "Actual expenditure per pupil transported in the 7.9 regular and excess transportation categories" means the quotient 7.10 obtained by dividing: 7.11 (1) the sum of: 7.12 (i) all expenditures for transportation in the regular 7.13 category, as defined in paragraph (b), clause (1), and the 7.14 excess category, as defined in paragraph (b), clause (2), plus 7.15 (ii) an amount equal to one year's depreciation on the 7.16 district's school bus fleet and mobile units computed on a 7.17 straight line basis at the rate of 15 percent per year for 7.18 districts operating a program under section 124D.128 for grades 7.19 1 to 12 for all students in the district and 12-1/2 percent per 7.20 year for other districts of the cost of the fleet, plus 7.21 (iii) an amount equal to one year's depreciation on the 7.22 district's type three school buses, as defined in section 7.23 169.01, subdivision 6, clause (5), which must be used a majority 7.24 of the time for pupil transportation purposes, computed on a 7.25 straight line basis at the rate of 20 percent per year of the 7.26 cost of the type three school buses by: 7.27 (2) the number of pupils eligible for transportation in the 7.28 regular category, as defined in paragraph (b), clause (1), and 7.29 the excess category, as defined in paragraph (b), clause (2). 7.30 (b) "Transportation category" means a category of 7.31 transportation service provided to pupils as follows: 7.32 (1) Regular transportation is: 7.33 (i) transportation to and from school during the regular 7.34 school year for resident elementary pupils residing one mile or 7.35 more from the public or nonpublic school they attend, and 7.36 resident secondary pupils residing two miles or more from the 8.1 public or nonpublic school they attend, excluding desegregation 8.2 transportation and noon kindergarten transportation; but with 8.3 respect to transportation of pupils to and from nonpublic 8.4 schools, only to the extent permitted by sections 123B.84 to 8.5 123B.87; 8.6 (ii) transportation of resident pupils to and from language 8.7 immersion programs; 8.8 (iii) transportation of a pupil who is a custodial parent 8.9 and that pupil's child between the pupil's home and the child 8.10 care provider and between the provider and the school, if the 8.11 home and provider are within the attendance area of the school; 8.12 (iv) transportation to and from or board and lodging in 8.13 another district, of resident pupils of a district without a 8.14 secondary school; and 8.15 (v) transportation to and from school during the regular 8.16 school year required under subdivision 3 for nonresident 8.17 elementary pupils when the distance from the attendance area 8.18 border to the public school is one mile or more, and for 8.19 nonresident secondary pupils when the distance from the 8.20 attendance area border to the public school is two miles or 8.21 more, excluding desegregation transportation and noon 8.22 kindergarten transportation. 8.23 For the purposes of this paragraph, a district may 8.24 designate a licensed day care facility, respite care facility, 8.25 the residence of a relative, or the residence of a person chosen 8.26 by the pupil's parent or guardian as the home of a pupil for 8.27 part or all of the day, if requested by the pupil's parent or 8.28 guardian, and if that facility or residence is within the 8.29 attendance area of the school the pupil attends. 8.30 (2) Excess transportation is: 8.31 (i) transportation to and from school during the regular 8.32 school year for resident secondary pupils residing at least one 8.33 mile but less than two miles from the public or nonpublic school 8.34 they attend, and transportation to and from school for resident 8.35 pupils residing less than one mile from school who are 8.36 transported because of extraordinary traffic, drug, or crime 9.1 hazards; and 9.2 (ii) transportation to and from school during the regular 9.3 school year required under subdivision 3 for nonresident 9.4 secondary pupils when the distance from the attendance area 9.5 border to the school is at least one mile but less than two 9.6 miles from the public school they attend, and for nonresident 9.7 pupils when the distance from the attendance area border to the 9.8 school is less than one mile from the school and who are 9.9 transported because of extraordinary traffic, drug, or crime 9.10 hazards. 9.11 (3) Desegregation transportation is transportation within 9.12 and outside of the district during the regular school year of 9.13 pupils to and from schools located outside their normal 9.14 attendance areas under a plan for desegregation mandated by the 9.15 commissioner or under court order. 9.16 (4) "Transportation services for pupils with disabilities" 9.17 is: 9.18 (i) transportation of pupils with disabilities who cannot 9.19 be transported on a regular school bus between home or a respite 9.20 care facility and school; 9.21 (ii) necessary transportation of pupils with disabilities 9.22 from home or from school to other buildings, including centers 9.23 such as developmental achievement centers, hospitals, and 9.24 treatment centers where special instruction or services required 9.25 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 9.26 are provided, within or outside the district where services are 9.27 provided; 9.28 (iii) necessary transportation for resident pupils with 9.29 disabilities required by sections 125A.12, and 125A.26 to 9.30 125A.48; 9.31 (iv) board and lodging for pupils with disabilities in a 9.32 district maintaining special classes; 9.33 (v) transportation from one educational facility to another 9.34 within the district for resident pupils enrolled on a 9.35 shared-time basis in educational programs, and necessary 9.36 transportation required by sections 125A.18, and 125A.26 to 10.1 125A.48, for resident pupils with disabilities who are provided 10.2 special instruction and services on a shared-time basis or if 10.3 resident pupils are not transported, the costs of necessary 10.4 travel between public and private schools or neutral 10.5 instructional sites by essential personnel employed by the 10.6 district's program for children with a disability; 10.7 (vi) transportation for resident pupils with disabilities 10.8 to and from board and lodging facilities when the pupil is 10.9 boarded and lodged for educational purposes; and 10.10 (vii) services described in clauses (i) to (vi), when 10.11 provided for pupils with disabilities in conjunction with a 10.12 summer instructional program that relates to the pupil's 10.13 individual education plan or in conjunction with a learning year 10.14 program established under section 124D.128. 10.15 For purposes of computing special education base revenue 10.16 under section 125A.76, subdivision 2, the cost of providing 10.17 transportation for children with disabilities includes (A) the 10.18 additional cost of transporting a homeless student from a 10.19 temporary nonshelter home in another district to the school of 10.20 origin, or a formerly homeless student from a permanent home in 10.21 another district to the school of origin but only through the 10.22 end of the academic year; and (B) depreciation on district-owned 10.23 school buses purchased after July 1, 2005, and used primarily 10.24 for transportation of pupils with disabilities, calculated 10.25 according to paragraph (a), clauses (ii) and (iii). 10.26 Depreciation costs included in the disabled transportation 10.27 category must be excluded in calculating the actual expenditure 10.28 per pupil transported in the regular and excess transportation 10.29 categories according to paragraph (a). 10.30 (5) "Nonpublic nonregular transportation" is: 10.31 (i) transportation from one educational facility to another 10.32 within the district for resident pupils enrolled on a 10.33 shared-time basis in educational programs, excluding 10.34 transportation for nonpublic pupils with disabilities under 10.35 clause (4); 10.36 (ii) transportation within district boundaries between a 11.1 nonpublic school and a public school or a neutral site for 11.2 nonpublic school pupils who are provided pupil support services 11.3 pursuant to section 123B.44; and 11.4 (iii) late transportation home from school or between 11.5 schools within a district for nonpublic school pupils involved 11.6 in after-school activities. 11.7 (c) "Mobile unit" means a vehicle or trailer designed to 11.8 provide facilities for educational programs and services, 11.9 including diagnostic testing, guidance and counseling services, 11.10 and health services. A mobile unit located off nonpublic school 11.11 premises is a neutral site as defined in section 123B.41, 11.12 subdivision 13. 11.13 Sec. 11. Minnesota Statutes 2004, section 123B.92, 11.14 subdivision 5, is amended to read: 11.15 Subd. 5. [DISTRICT REPORTS.] (a) Each district must report 11.16 data to the department as required by the department to account 11.17 for transportation expenditures. 11.18 (b) Salaries and fringe benefits of district employees 11.19 whose primary duties are other than transportation, including 11.20 central office administrators and staff, building administrators 11.21 and staff, teachers, social workers, school nurses, and 11.22 instructional aides, must not be included in a district's 11.23 transportation expenditures, except that a district may include 11.24 salaries and benefits according to paragraph (c) for (1) an 11.25 employee designated as the district transportation director, (2) 11.26 an employee providing direct support to the transportation 11.27 director, or (3) an employee providing direct transportation 11.28 services such as a bus driver or bus aide. 11.29 (c) Salaries and fringe benefits of other district 11.30 employees who work part time in transportation and part time in 11.31 other areas must not be included in a district's transportation 11.32 expenditures unless the district maintains documentation of the 11.33 employee's time spent on pupil transportation matters in the 11.34 form and manner prescribed by the department. 11.35 (d) Pupil transportation expenditures, excluding 11.36 expenditures for capital outlay, leased buses, student board and 12.1 lodging, crossing guards, and aides on buses, must be allocated 12.2 among transportation categories based on cost-per-mile, 12.3 cost-per-student, cost-per-hour, or cost-per-route, regardless 12.4 of whether the transportation services are provided on 12.5 district-owned or contractor-owned school buses. Expenditures 12.6 for school bus driver salaries and fringe benefits may either be 12.7 directly charged to the appropriate transportation category or 12.8 may be allocated among transportation categories based on 12.9 cost-per-mile, cost-per-student, cost-per-hour, or 12.10 cost-per-route. Expenditures by private contractors or 12.11 individuals who provide transportation exclusively in one 12.12 transportation category must be charged directly to the 12.13 appropriate transportation category. Transportation services 12.14 provided by contractor-owned school bus companies incorporated 12.15 under different names but owned by the same individual or group 12.16 of individuals must be treated as the same company for cost 12.17 allocation purposes. 12.18 [EFFECTIVE DATE.] This section is effective for expenditure 12.19 reporting for fiscal year 2006. 12.20 Sec. 12. Minnesota Statutes 2004, section 123B.92, 12.21 subdivision 9, is amended to read: 12.22 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 12.23 district's nonpublic pupil transportation aid forthe 1996-199712.24and later school years fortransportation services for nonpublic 12.25 school pupils according to sections 123B.88, 123B.84 to 123B.86, 12.26 and this section, equals the sum of the amounts computed in 12.27 paragraphs (b) and (c). This aid does not limit the obligation 12.28 to transport pupils under sections 123B.84 to 123B.87. 12.29 (b) For regular and excess transportation according to 12.30 subdivision 1, paragraph (b), clauses (1) and (2), an amount 12.31 equal to the product of: 12.32 (1) the district's actual expenditure per pupil transported 12.33 in the regular and excess transportation categories during the 12.34 second preceding school year; times 12.35 (2) the number of nonpublic school pupils residing in the 12.36 district who receive regular or excess transportation service or 13.1 reimbursement for the current school year; times 13.2 (3)the ratio of the formula allowance pursuant to section13.3126C.10, subdivision 2, for the current school year to the13.4formula allowance pursuant to section 126C.10, subdivision 2,13.5for the second preceding school year1.03 for fiscal year 2006, 13.6 1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 13.7 for fiscal year 2009 and later. 13.8 (c) For nonpublic nonregular transportation according to 13.9 subdivision 1, paragraph (b), clause (5), an amount equal to the 13.10 product of: 13.11 (1) the district's actual expenditure for nonpublic 13.12 nonregular transportation during the second preceding school 13.13 year; times 13.14 (2)the ratio of the formula allowance pursuant to section13.15126C.10, subdivision 2, for the current school year to the13.16formula allowance pursuant to section 126C.10, subdivision 2,13.17for the second preceding school year1.03 for fiscal year 2006, 13.18 1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 13.19 for fiscal year 2009 and later. 13.20(d) Notwithstanding the amount of the formula allowance for13.21fiscal year 2004 in section 126C.10, subdivision 2, the13.22commissioner shall use the amount of the formula allowance for13.23the current year minus $415 in determining the nonpublic pupil13.24transportation revenue in paragraphs (b) and (c) for fiscal year13.252004.13.26 Sec. 13. Minnesota Statutes 2004, section 124D.68, 13.27 subdivision 9, is amended to read: 13.28 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 13.29 attending an eligible program full time under subdivision 3, 13.30 paragraph (d), the department must pay 90 percent of the 13.31 district's average general education revenue less basic skills 13.32 revenue to the eligible program and ten percent of the 13.33 district's average general education revenue less basic skills 13.34 revenue to the contracting district within 30 days after the 13.35 eligible program verifies enrollment using the form provided by 13.36 the department. For a pupil attending an eligible program part 14.1 time, revenue, excluding compensatory revenue, shall be reduced 14.2 proportionately, according to the amount of time the pupil 14.3 attends the program, and the payments to the eligible program 14.4 and the contracting district shall be reduced accordingly. A 14.5 pupil for whom payment is made according to this section may not 14.6 be counted by any district for any purpose other than 14.7 computation of general education revenue. If payment is made 14.8 for a pupil under this subdivision, a district shall not 14.9 reimburse a program under section 124D.69 for the same 14.10 pupil. The basic skills revenueshall be paidgenerated by 14.11 pupils attending the eligible program according to section 14.12 126C.10, subdivision 4, shall be paid to the eligible program. 14.13 (b) The department must pay up to 100 percent of the 14.14 revenue to the eligible program if there is an agreement to that 14.15 effect between the school district and the eligible program. 14.16 (c) Notwithstanding paragraphs (a) and (b), for an eligible 14.17 program that provides chemical treatment services to students, 14.18 the department must pay 100 percent of the revenue to the 14.19 eligible program. 14.20 Sec. 14. Minnesota Statutes 2004, section 124D.69, 14.21 subdivision 1, is amended to read: 14.22 Subdivision 1. [AID.] If a pupil enrolls in an alternative 14.23 program, eligible under section 124D.68, subdivision 3, 14.24 paragraph (d), or subdivision 4, operated by a private 14.25 organization that has contracted with a school district to 14.26 provide educational services for eligible pupils under section 14.27 124D.68, subdivision 2, the district contracting with the 14.28 private organization must reimburse the provider an amount equal 14.29 to the sum of (1) at least 95 percent of the district's average 14.30 general education less basic skills revenue per pupil unit times 14.31 the number of pupil units for pupils attending the program., and 14.32 (2) the amount of basic skills revenueshall be paidgenerated 14.33 by pupils attending the program according to section 126C.10, 14.34 subdivision 4.Compensatory revenue must be allocated according14.35to section 126C.15, subdivision 2.For a pupil attending the 14.36 program part time, the revenue paid to the program, excluding 15.1 compensatory revenue, must be reduced proportionately, according 15.2 to the amount of time the pupil attends the program, and revenue 15.3 paid to the district shall be reduced accordingly. Pupils for 15.4 whom a district provides reimbursement may not be counted by the 15.5 district for any purpose other than computation of general 15.6 education revenue. If payment is made to a district or program 15.7 for a pupil under this section, the department must not make a 15.8 payment for the same pupil under section 124D.68, subdivision 9. 15.9 Notwithstanding sections 125A.15, 125A.51, and 125A.515, general 15.10 education revenue for a student who receives educational 15.11 services under this section shall be paid according to this 15.12 section. 15.13 Sec. 15. Minnesota Statutes 2004, section 125A.51, is 15.14 amended to read: 15.15 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 15.16 EDUCATION AND TRANSPORTATION.] 15.17 The responsibility for providing instruction and 15.18 transportation for a pupil without a disability who has a 15.19 short-term or temporary physical or emotional illness or 15.20 disability, as determined by the standards of the commissioner, 15.21 and who is temporarily placed for care and treatment for that 15.22 illness or disability, must be determined as provided in this 15.23 section. 15.24 (a) The school district of residence of the pupil is the 15.25 district in which the pupil's parent or guardian resides. 15.26 (b) When parental rights have been terminated by court 15.27 order, the legal residence of a child placed in a residential or 15.28 foster facility for care and treatment is the district in which 15.29 the child resides. 15.30 (c) Before the placement of a pupil for care and treatment, 15.31 the district of residence must be notified and provided an 15.32 opportunity to participate in the placement decision. When an 15.33 immediate emergency placement is necessary and time does not 15.34 permit resident district participation in the placement 15.35 decision, the district in which the pupil is temporarily placed, 15.36 if different from the district of residence, must notify the 16.1 district of residence of the emergency placement within 15 days 16.2 of the placement. 16.3 (d) When a pupil without a disability is temporarily placed 16.4 for care and treatment in a day program and the pupil continues 16.5 to live within the district of residence during the care and 16.6 treatment, the district of residence must provide instruction 16.7 and necessary transportation to and from the treatment facility 16.8 for the pupil. Transportation shall only be provided by the 16.9 district during regular operating hours of the district. The 16.10 district may provide the instruction at a school within the 16.11 district of residence, at the pupil's residence, or in the case 16.12 of a placement outside of the resident district, in the district 16.13 in which the day treatment program is located by paying tuition 16.14 to that district. The district of placement may contract with a 16.15 facility to provide instruction by teachers licensed by the 16.16 state Board of Teaching. 16.17 (e) When a pupil without a disability is temporarily placed 16.18 in a residential program for care and treatment, the district in 16.19 which the pupil is placed must provide instruction for the pupil 16.20 and necessary transportation while the pupil is receiving 16.21 instruction, and in the case of a placement outside of the 16.22 district of residence, the nonresident district must bill the 16.23 district of residence for the actual cost of providing the 16.24 instruction for the regular school year and for summer school, 16.25 excluding transportation costs. 16.26 (f) Notwithstanding paragraph (e), if the pupil is homeless 16.27 and placed in a public or private homeless shelter, then the 16.28 district that enrolls the pupil under section 127A.47, 16.29 subdivision 2, shall provide the transportation, unless the 16.30 district that enrolls the pupil and the district in which the 16.31 pupil is temporarily placed agree that the district in which the 16.32 pupil is temporarily placed shall provide transportation. When 16.33 a pupil without a disability is temporarily placed in a 16.34 residential program outside the district of residence, the 16.35 administrator of the court placing the pupil must send timely 16.36 written notice of the placement to the district of residence. 17.1 The district of placement may contract with a residential 17.2 facility to provide instruction by teachers licensed by the 17.3 state Board of Teaching. For purposes of this section, the state 17.4 correctional facilities operated on a fee-for-service basis are 17.5 considered to be residential programs for care and treatment. 17.6(f)(g) The district of residence must include the pupil in 17.7 its residence count of pupil units and pay tuition as provided 17.8 in section 123A.488 to the district providing the instruction. 17.9 Transportation costs must be paid by the district providing the 17.10 transportation and the state must pay transportation aid to that 17.11 district. For purposes of computing state transportation aid, 17.12 pupils governed by this subdivision must be included in the 17.13 disabled transportation category if the pupils cannot be 17.14 transported on a regular school bus route without special 17.15 accommodations. 17.16 Sec. 16. Minnesota Statutes 2004, section 126C.01, 17.17 subdivision 11, is amended to read: 17.18 Subd. 11. [NETUNAPPROPRIATED OPERATINGUNRESERVED GENERAL 17.19 FUND BALANCE.] "Netunappropriated operatingunreserved general 17.20 fund balance" means the sum of the unreserved general fund 17.21balances in the general, food service, and community service17.22funds minus the balances reserved for statutory operating debt17.23reduction, bus purchase, severance pay, taconite, unemployment17.24benefits, maintenance levy reduction, operating capital,17.25disabled access, health and safety,balance and encumbrances, 17.26 computed as of June 30 each year. 17.27 Sec. 17. Minnesota Statutes 2004, section 126C.05, is 17.28 amended by adding a subdivision to read: 17.29 Subd. 20. [PROJECT-BASED AVERAGE DAILY MEMBERSHIP.] (a) To 17.30 receive general education revenue for a pupil enrolled in a 17.31 public school with a project-based program, a school must meet 17.32 the requirements in this paragraph. The school must: 17.33 (1) register with the commissioner as a project-based 17.34 program by May 30 of the preceding fiscal year; 17.35 (2) provide a minimum teacher contact of no less than one 17.36 hour per week per project-based credit for each pupil; 18.1 (3) maintain a record system that shows when each credit or 18.2 portion thereof was reported for membership for each pupil; and 18.3 (4) report pupil membership consistent with paragraph (b). 18.4 (b) The commissioner must develop a formula for reporting 18.5 pupil membership to compute average daily membership for each 18.6 registered project-based school. Average daily membership for a 18.7 pupil in a registered project-based program is the lesser of: 18.8 (1) 1.0; or 18.9 (2) the ratio of (i) the number of membership hours 18.10 generated by project-based credits completed during the school 18.11 year plus membership hours generated by credits completed in a 18.12 seat-based setting to (ii) the annual required instructional 18.13 hours at that grade level. Membership hours for a partially 18.14 completed project-based credit must be prorated. 18.15 Sec. 18. Minnesota Statutes 2004, section 126C.10, 18.16 subdivision 1, is amended to read: 18.17 Subdivision 1. [GENERAL EDUCATION REVENUE.](a) For fiscal18.18year 2003, the general education revenue for each district18.19equals the sum of the district's basic revenue, basic skills18.20revenue, training and experience revenue, secondary sparsity18.21revenue, elementary sparsity revenue, transportation sparsity18.22revenue, total operating capital revenue, and equity revenue.18.23(b)For fiscal year20042006 and later, the general 18.24 education revenue for each district equals the sum of the 18.25 district's basic revenue, extended time revenue, gifted and 18.26 talented revenue, basic skills revenue, training and experience 18.27 revenue, secondary sparsity revenue, elementary sparsity 18.28 revenue, transportation sparsity revenue, total operating 18.29 capital revenue, equity revenue, alternative compensation 18.30 revenue, and transition revenue. 18.31 [EFFECTIVE DATE.] This section is effective for revenue for 18.32 fiscal year 2006. 18.33 Sec. 19. Minnesota Statutes 2004, section 126C.10, 18.34 subdivision 2, is amended to read: 18.35 Subd. 2. [BASIC REVENUE.] The basic revenue for each 18.36 district equals the formula allowance times the adjusted 19.1 marginal cost pupil units for the school year. The formula 19.2 allowance for fiscal year20012006 is$3,964. The formula19.3allowance for fiscal year 2002 is $4,068. The formula allowance19.4for fiscal year 2003 and subsequent years is $4,601$4,740. The 19.5 formula allowance for fiscal year 2007 and later is $4,885. 19.6 Sec. 20. Minnesota Statutes 2004, section 126C.10, is 19.7 amended by adding a subdivision to read: 19.8 Subd. 2b. [GIFTED AND TALENTED REVENUE.] Gifted and 19.9 talented revenue for each district equals $15 times the 19.10 district's adjusted marginal cost pupil units. For fiscal year 19.11 2006 only, a district is eligible for start-up revenue equal to 19.12 $3 times the adjusted marginal cost pupil units for that year. 19.13 A school district must reserve gifted and talented revenue and, 19.14 consistent with section 120B.15, must spend the revenue only to: 19.15 (1) identify gifted and talented students; 19.16 (2) provide education programs for gifted and talented 19.17 students; or 19.18 (3) provide staff development to prepare teachers to best 19.19 meet the unique needs of gifted and talented students. 19.20 [EFFECTIVE DATE.] This section is effective for revenue for 19.21 fiscal year 2006 and later. 19.22 Sec. 21. Minnesota Statutes 2004, section 126C.10, 19.23 subdivision 3, is amended to read: 19.24 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) For fiscal 19.25 year 2006 and later, the compensatory education revenue for each 19.26 building in the district equalsthe formula allowance minus19.27$415$4,186 times the compensation revenue pupil units computed 19.28 according to section 126C.05, subdivision 3. Revenue shall be 19.29 paid to the district and must be allocated according to section 19.30 126C.15, subdivision 2. 19.31 (b) When the district contracting with an alternative 19.32 program under section 124D.69 changes prior to the start of a 19.33 school year, the compensatory revenue generated by pupils 19.34 attending the program shall be paid to the district contracting 19.35 with the alternative program for the current school year, and 19.36 shall not be paid to the district contracting with the 20.1 alternative program for the prior school year. 20.2 (c) When the fiscal agent district for an area learning 20.3 center changes prior to the start of a school year, the 20.4 compensatory revenue shall be paid to the fiscal agent district 20.5 for the current school year, and shall not be paid to the fiscal 20.6 agent district for the prior school year. 20.7 Sec. 22. Minnesota Statutes 2004, section 126C.10, 20.8 subdivision 6, is amended to read: 20.9 Subd. 6. [DEFINITIONS.] The definitions in this 20.10 subdivision apply only to subdivisions 7 and 8. 20.11 (a) "High school" means a secondary school that has pupils 20.12 enrolled in at least the 10th, 11th, and 12th grades. If there 20.13 is no secondary school in the district that has pupils enrolled 20.14 in at least the 10th, 11th, and 12th grades, and the school is 20.15 at least 19 miles from the next nearest school, the commissioner 20.16 must designate one school in the district as a high school for 20.17 the purposes of this section. 20.18 (b) "Secondary average daily membership" means, for a 20.19 district that has only one high school, the average daily 20.20 membership of pupils served in grades 7 through 12. For a 20.21 district that has more than one high school, "secondary average 20.22 daily membership" for each high school means the product of the 20.23 average daily membership of pupils served in grades 7 through 12 20.24 in the high school, times the ratio of six to the number of 20.25 grades in the high school. 20.26 (c) "Attendance area" means the total surface area of the 20.27 district, in square miles, divided by the number of high schools 20.28 in the district. For a district that does not operate a high 20.29 school and is less than 19 miles from the nearest operating high 20.30 school, the attendance area equals zero. 20.31 (d) "Isolation index" for a high school means the square 20.32 root of 55 percent of the attendance area plus the distance in 20.33 miles, according to the usually traveled routes, between the 20.34 high school and the nearest high school. For a district in 20.35 which there is located land defined in section 84A.01, 84A.20, 20.36 or 84A.31, the distance in miles is the sum of: 21.1 (1) the square root of one-half of the attendance area; and 21.2 (2) the distance from the border of the district to the 21.3 nearest high school. 21.4 (e) "Qualifying high school" means a high school that has 21.5 an isolation index greater than 23 and that has secondary 21.6 average daily membership of less than 400. 21.7 (f) "Qualifying elementary school" means an elementary 21.8 school that is located 19 miles or more from the nearest 21.9 elementary school or from the nearest elementary school within 21.10 the district and, in either case, has an elementary average 21.11 daily membership of an average of 20 or fewer per grade. 21.12 (g) "Elementary average daily membership" means, for a 21.13 district that has only one elementary school, the average daily 21.14 membership of pupils served in kindergarten through grade 6. 21.15 For a district that has more than one elementary school, 21.16 "average daily membership" for each school means the average 21.17 daily membership of pupils served in kindergarten through grade 21.18 6 multiplied by the ratio of seven to the number of grades in 21.19 the elementary school. 21.20 (h) "Sparsity allowance" means $4,740 for fiscal year 2006 21.21 and $4,885 for fiscal year 2007 and later. 21.22 Sec. 23. Minnesota Statutes 2004, section 126C.10, 21.23 subdivision 7, is amended to read: 21.24 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) A district's 21.25 secondary sparsity revenue for a school year equals the sum of 21.26 the results of the following calculation for each qualifying 21.27 high school in the district: 21.28 (1) theformulasparsity allowance for the school year, 21.29 multiplied by 21.30 (2) the secondary average daily membership of pupils served 21.31 in the high school, multiplied by 21.32 (3) the quotient obtained by dividing 400 minus the 21.33 secondary average daily membership by 400 plus the secondary 21.34 daily membership, multiplied by 21.35 (4) the lesser of 1.5 or the quotient obtained by dividing 21.36 the isolation index minus 23 by ten. 22.1 (b) A newly formed district that is the result of districts 22.2 combining under the cooperation and combination program or 22.3 consolidating under section 123A.48 must receive secondary 22.4 sparsity revenue equal to the greater of: (1) the amount 22.5 calculated under paragraph (a) for the combined district; or (2) 22.6 the sum of the amounts of secondary sparsity revenue the former 22.7 districts had in the year prior to consolidation, increased for 22.8 any subsequent changes in the secondary sparsity formula. 22.9 Sec. 24. Minnesota Statutes 2004, section 126C.10, 22.10 subdivision 8, is amended to read: 22.11 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] A district's 22.12 elementary sparsity revenue equals the sum of the following 22.13 amounts for each qualifying elementary school in the district: 22.14 (1) theformulasparsity allowance for the year, multiplied 22.15 by 22.16 (2) the elementary average daily membership of pupils 22.17 served in the school, multiplied by 22.18 (3) the quotient obtained by dividing 140 minus the 22.19 elementary average daily membership by 140 plus the average 22.20 daily membership. 22.21 Sec. 25. Minnesota Statutes 2004, section 126C.10, 22.22 subdivision 13, is amended to read: 22.23 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 22.24 fiscal year20002006 and thereafter, total operating capital 22.25 revenue for a district equals the amount determined under 22.26 paragraph (b) or (c), plus$73$93 times the adjusted marginal 22.27 cost pupil units for the school year. The revenue must be 22.28 placed in a reserved account in the general fund and may only be 22.29 used according toparagraph (d) orsubdivision 14. 22.30 (b) For fiscal years20002006 and later, capital revenue 22.31 for a district equals $100 times the district's maintenance cost 22.32 index times its adjusted marginal cost pupil units for the 22.33 school year. 22.34 (c)For fiscal years 2000 and later,The revenue for a 22.35 district that operates a program under section 124D.128, is 22.36 increased by an amount equal to $30 times the number of marginal 23.1 cost pupil units served at the site where the program is 23.2 implemented. 23.3(d) For fiscal years 2001, 2002, and 2003, the district23.4must reserve an amount equal to $5 per adjusted marginal cost23.5pupil unit for telecommunication access costs. Reserve revenue23.6under this paragraph must first be used to pay for ongoing or23.7recurring telecommunication access costs, including access to23.8data and video connections, including Internet access. Any23.9revenue remaining after covering all ongoing or recurring access23.10costs may be used for computer hardware or equipment.23.11 Sec. 26. Minnesota Statutes 2004, section 126C.10, 23.12 subdivision 13a, is amended to read: 23.13 Subd. 13a. [OPERATING CAPITAL LEVY.] To obtain operating 23.14 capital revenue for fiscal year20052007 and later, a district 23.15 may levy an amount not more than the product of its operating 23.16 capital revenue for the fiscal year times the lesser of one or 23.17 the ratio of its adjusted net tax capacity per adjusted marginal 23.18 cost pupil unit to$22,222the operating capital equalizing 23.19 factor. The operating capital equalizing factor equals $24,300 23.20 for taxes payable in 2006 and 2007, and $15,400 for taxes 23.21 payable in 2008 and later. 23.22 [EFFECTIVE DATE.] This section is effective for revenue for 23.23 fiscal year 2007. 23.24 Sec. 27. Minnesota Statutes 2004, section 126C.10, 23.25 subdivision 17, is amended to read: 23.26 Subd. 17. [TRANSPORTATION SPARSITY DEFINITIONS.] The 23.27 definitions in this subdivision apply to subdivisions 18 and 19. 23.28 (a) "Sparsity index" for a district means the greater of .2 23.29 or the ratio of the square mile area of the district to the 23.30 resident pupil units of the district. 23.31 (b) "Density index" for a district means the ratio of the 23.32 square mile area of the district to the resident pupil units of 23.33 the district. However, the density index for a district cannot 23.34 be greater than .2 or less than .005. 23.35 (c) "Transportation allowance" means $4,601 for fiscal year 23.36 2007 and later. 24.1 Sec. 28. Minnesota Statutes 2004, section 126C.10, 24.2 subdivision 18, is amended to read: 24.3 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 24.4 A district's transportation sparsity allowance equals the 24.5 greater of zero or the result of the following computation: 24.6(i)(1) Multiply theformulatransportation allowance 24.7according to subdivision 2,by .1469. 24.8(ii)(2) Multiply the result in clause(i)(1) by the 24.9 district's sparsity index raised to the 26/100 power. 24.10(iii)(3) Multiply the result in clause(ii)(2) by the 24.11 district's density index raised to the 13/100 power. 24.12(iv)(4) Multiply theformulatransportation allowance 24.13according to subdivision 2,by .0485. 24.14(v)(5) Subtract the result in clause(iv)(4) from the 24.15 result in clause(iii)(3). 24.16 (b) Transportation sparsity revenue is equal to the 24.17 transportation sparsity allowance times the adjusted marginal 24.18 cost pupil units times 1.08. 24.19 Sec. 29. Minnesota Statutes 2004, section 126C.10, 24.20 subdivision 24, is amended to read: 24.21 Subd. 24. [EQUITY REVENUE.] (a) A school district 24.22 qualifies for equity revenue if: 24.23 (1) the school district's adjusted marginal cost pupil unit 24.24 amount of basic revenue, supplemental revenue, transition 24.25 revenue, and referendum revenue is less than the value of the 24.26 school district at or immediately above the 95th percentile of 24.27 school districts in its equity region for those revenue 24.28 categories; and 24.29 (2) the school district's administrative offices are not 24.30 located in a city of the first class on July 1, 1999. 24.31 (b) Equity revenue for a qualifying district that receives 24.32 referendum revenue under section 126C.17, subdivision 4, equals 24.33 the product of (1) the district's adjusted marginal cost pupil 24.34 units for that year; times (2) the sum of (i) $13, plus (ii) 24.35 $75, times the school district's equity index computed under 24.36 subdivision 27. 25.1 (c) Equity revenue for a qualifying district that does not 25.2 receive referendum revenue under section 126C.17, subdivision 4, 25.3 equals the product of the district's adjusted marginal cost 25.4 pupil units for that year times $13. 25.5 (d) A school district's equity revenue is increased by the 25.6 greater of zero or an amount equal to the district's resident 25.7 marginal pupil units times the difference between ten percent of 25.8 the statewide average amount of referendum revenue per resident 25.9 marginal cost pupil unit for that year and the district's 25.10 referendum revenue per resident marginal cost pupil unit. A 25.11 school district's revenue under this paragraph must not exceed 25.12 $100,000 for that year. 25.13 (e) A school district's equity revenue for a school 25.14 district located in the metro equity region equals the amount 25.15 computed in paragraphs (b), (c), and (d) multiplied by 1.25. 25.16 [EFFECTIVE DATE.] This section is effective for revenue for 25.17 fiscal year 2006. 25.18 Sec. 30. Minnesota Statutes 2004, section 126C.10, 25.19 subdivision 31, is amended to read: 25.20 Subd. 31. [TRANSITION REVENUE.] (a) A district's 25.21 transition allowancefor fiscal years 2004 through 2008equals 25.22 the greater of zero or the product of the ratio of the number of 25.23 adjusted marginal cost pupil units the district would have 25.24 counted for fiscal year 2004 under Minnesota Statutes 2002 to 25.25 the district's adjusted marginal cost pupil units for fiscal 25.26 year 2004, times the difference between: (1) the lesser of the 25.27 district's general education revenue per adjusted marginal cost 25.28 pupil unit for fiscal year 2003 or the amount of general 25.29 education revenue the district would have received per adjusted 25.30 marginal cost pupil unit for fiscal year 2004 according to 25.31 Minnesota Statutes 2002, and (2) the district's general 25.32 education revenue for fiscal year 2004 excluding transition 25.33 revenue divided by the number of adjusted marginal cost pupil 25.34 units the district would have counted for fiscal year 2004 under 25.35 Minnesota Statutes 2002. 25.36A district's transition allowance for fiscal year 2009 and26.1later is zero.26.2 (b) A district's transition revenue for fiscal year200426.3and later2006 and later equals the sum of (1) the product of 26.4 the district's transition allowance times the district's 26.5 adjusted marginal cost pupil units.plus (2) the amount of 26.6 referendum revenue under section 126C.17 and general education 26.7 revenue, excluding transition revenue, for fiscal year 2004 26.8 attributable to pupils four or five years of age on September 1, 26.9 2003, enrolled in a prekindergarten program implemented by the 26.10 district before July 1, 2003, and reported as kindergarten 26.11 pupils under section 126C.05, subdivision 1, for fiscal year 26.12 2004, plus (3) the amount of compensatory education revenue 26.13 under subdivision 3 for fiscal year 2005 attributable to pupils 26.14 four years of age on September 1, 2003, enrolled in a 26.15 prekindergarten program implemented by the district before July 26.16 1, 2003, and reported as kindergarten pupils under section 26.17 126C.05, subdivision 1, for fiscal year 2004. 26.18 Sec. 31. Minnesota Statutes 2004, section 126C.10, is 26.19 amended by adding a subdivision to read: 26.20 Subd. 34. [BASIC ALTERNATIVE COMPENSATION AID.] (a) For 26.21 fiscal year 2006, the basic alternative compensation aid for a 26.22 district or charter school with an alternative compensation plan 26.23 approved under section 122A.415 equals the alternative 26.24 compensation revenue according to section 122A.415, subdivision 26.25 1. The basic alternative compensation aid for a charter school 26.26 with an approved alternative compensation plan under section 26.27 122A.415, subdivision 1, paragraph (c), equals $260 times the 26.28 number of pupils enrolled in the school on October 1 of the 26.29 previous school year, or on October 1 of the current fiscal year 26.30 for a charter school in the first year of operation. 26.31 (b) For fiscal year 2007 and later, the basic alternative 26.32 compensation aid for a district with an alternative compensation 26.33 plan approved under section 122A.415 equals 73.1 percent of the 26.34 alternative compensation revenue according to section 122A.415, 26.35 subdivision 1. The basic alternative compensation aid for a 26.36 charter school with an alternative compensation plan approved 27.1 under section 122A.415 equals $260 times the number of pupils 27.2 enrolled in the school on October 1 of the previous fiscal year, 27.3 or on October 1 of the current fiscal year for a charter school 27.4 in the first year of operation, times the ratio of the sum of 27.5 the alternative compensation aid and alternative compensation 27.6 levy for all participating school districts to the maximum 27.7 alternative compensation revenue for those districts according 27.8 to section 122A.415, subdivision 1. 27.9 (c) Notwithstanding paragraphs (a) and (b) and section 27.10 122A.415, subdivision 1, the state total basic alternative 27.11 compensation aid entitlement must not exceed $19,329,000 for 27.12 fiscal year 2006 and $75,636,000 for fiscal year 2007 and 27.13 later. The commissioner must limit the amount of alternative 27.14 compensation aid approved under section 122A.415 so as not to 27.15 exceed these limits. 27.16 Sec. 32. Minnesota Statutes 2004, section 126C.10, is 27.17 amended by adding a subdivision to read: 27.18 Subd. 35. [ALTERNATIVE COMPENSATION LEVY.] For fiscal year 27.19 2007 and later, the alternative compensation levy for a district 27.20 receiving basic alternative compensation aid equals the product 27.21 of (1) the difference between the district's alternative 27.22 compensation revenue and the district's basic alternative 27.23 compensation aid times (2) the lesser of one or the ratio of the 27.24 district's adjusted net tax capacity per adjusted pupil unit to 27.25 $5,913. 27.26 Sec. 33. Minnesota Statutes 2004, section 126C.10, is 27.27 amended by adding a subdivision to read: 27.28 Subd. 36. [ALTERNATIVE COMPENSATION AID.] (a) For fiscal 27.29 year 2007 and later, a district's alternative compensation 27.30 equalization aid equals the district's alternative compensation 27.31 revenue minus the district's basic alternative compensation aid 27.32 minus the district's alternative compensation levy. If a 27.33 district does not levy the entire amount permitted, the 27.34 alternative compensation equalization aid must be reduced in 27.35 proportion to the actual amount levied. 27.36 (b) A district's alternative compensation aid equals the 28.1 sum of the district's basic alternative compensation aid and the 28.2 district's alternative compensation equalization aid. 28.3 Sec. 34. Minnesota Statutes 2004, section 126C.13, 28.4 subdivision 4, is amended to read: 28.5 Subd. 4. [GENERAL EDUCATION AID.] (a)For fiscal year28.62004, a district's general education aid is the sum of the28.7following amounts:28.8(1) general education revenue;28.9(2) shared time aid according to section 126C.01,28.10subdivision 7;28.11(3) referendum aid according to section 126C.17; and28.12(4) online learning aid according to section 126C.24.28.13(b)For fiscal year2005 and later2006, a district's 28.14 general education aid is the sum of the following amounts: 28.15 (1) general education revenue, excluding equity revenue, 28.16 total operating capital, and transition revenue; 28.17 (2) operating capital aid according to section 126C.10, 28.18 subdivision 13b; 28.19 (3) equity aid according to section 126C.10, subdivision 28.20 30; 28.21 (4) transition aid according to section 126C.10, 28.22 subdivision 33; 28.23 (5) shared time aid according to section 126C.01, 28.24 subdivision 7; 28.25 (6) referendum aid according to section 126C.17; and 28.26 (7) online learning aid according to section 126C.24. 28.27 (b) For fiscal year 2007 and later, a district's general 28.28 education aid is the sum of the following amounts: 28.29 (1) general education revenue, excluding equity revenue, 28.30 total operating capital revenue, alternative compensation 28.31 revenue, and transition revenue; 28.32 (2) operating capital aid according to section 126C.10, 28.33 subdivision 13b; 28.34 (3) equity aid according to section 126C.10, subdivision 28.35 30; 28.36 (4) alternative compensation aid according to section 29.1 126C.10, subdivision 36; 29.2 (5) transition aid according to section 126C.10, 29.3 subdivision 33; 29.4 (6) shared time aid according to section 126C.01, 29.5 subdivision 7; 29.6 (7) referendum aid according to section 126C.17; and 29.7 (8) online learning aid according to section 126C.24. 29.8 Sec. 35. Minnesota Statutes 2004, section 126C.15, 29.9 subdivision 1, is amended to read: 29.10 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 29.11 allocated for prekindergarten programs under subdivision 2, 29.12 paragraph (c), the basic skills revenue under section 126C.10, 29.13 subdivision 4, must be reserved and used to meet the educational 29.14 needs of pupils who enroll under-prepared to learn and whose 29.15 progress toward meeting state or local content or performance 29.16 standards is below the level that is appropriate for learners of 29.17 their age. Any of the following may be provided to meet these 29.18 learners' needs: 29.19 (1) direct instructional services under the assurance of 29.20 mastery program according to section 124D.66; 29.21 (2) remedial instruction in reading, language arts, 29.22 mathematics, other content areas, or study skills to improve the 29.23 achievement level of these learners; 29.24 (3) additional teachers and teacher aides to provide more 29.25 individualized instruction to these learners through individual 29.26 tutoring, lower instructor-to-learner ratios, or team teaching; 29.27 (4) a longer school day or week during the regular school 29.28 year or through a summer program that may be offered directly by 29.29 the site or under a performance-based contract with a 29.30 community-based organization; 29.31 (5) comprehensive and ongoing staff development consistent 29.32 with district and site plans according to section 122A.60, for 29.33 teachers, teacher aides, principals, and other personnel to 29.34 improve their ability to identify the needs of these learners 29.35 and provide appropriate remediation, intervention, 29.36 accommodations, or modifications; 30.1 (6) instructional materials and technology appropriate for 30.2 meeting the individual needs of these learners; 30.3 (7) programs to reduce truancy, encourage completion of 30.4 high school, enhance self-concept, provide health services, 30.5 provide nutrition services, provide a safe and secure learning 30.6 environment, provide coordination for pupils receiving services 30.7 from other governmental agencies, provide psychological services 30.8 to determine the level of social, emotional, cognitive, and 30.9 intellectual development, and provide counseling services, 30.10 guidance services, and social work services; 30.11 (8) bilingual programs, bicultural programs, and programs 30.12 for learners of limited English proficiency; 30.13 (9) all day kindergarten; 30.14 (10) extended school day and extended school year programs; 30.15 and 30.16 (11) substantial parent involvement in developing and 30.17 implementing remedial education or intervention plans for a 30.18 learner, including learning contracts between the school, the 30.19 learner, and the parent that establish achievement goals and 30.20 responsibilities of the learner and the learner's parent or 30.21 guardian. 30.22 Sec. 36. Minnesota Statutes 2004, section 126C.15, 30.23 subdivision 2, is amended to read: 30.24 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 30.25 allocate its compensatory revenue to each school building in the 30.26 district where the children who have generated the revenue are 30.27 served unless the school district has received permission under 30.28 section 63 to allocate compensatory revenue according to student 30.29 performance measures developed by the school board. 30.30 (b) Notwithstanding paragraph (a), a district may allocate 30.31 up to five percent of the amount of compensatory revenue that 30.32 the districtreceived during the previous fiscal yearreceives 30.33 to school sites according to a plan adopted by the school board. 30.34 (c) Notwithstanding paragraph (a), a district may allocate 30.35 up to ten percent of the amount of compensatory revenue the 30.36 district receives to support prekindergarten programs under 31.1 subdivision 2a. 31.2 (d) For the purposes of this section and section 126C.05, 31.3 subdivision 3, "building" means education site as defined in 31.4 section 123B.04, subdivision 1. 31.5(d)(e) If the pupil is served at a site other than one 31.6 owned and operated by the district, the revenue shall be paid to 31.7 the district and used for services for pupils who generate the 31.8 revenue. 31.9 [EFFECTIVE DATE.] This section is effective July 1, 2005, 31.10 for revenue for fiscal year 2006. 31.11 Sec. 37. Minnesota Statutes 2004, section 126C.15, 31.12 subdivision 3, is amended to read: 31.13 Subd. 3. [RECOMMENDATION.] A school site decision-making 31.14 team, as defined in section 123B.04, subdivision 2, paragraph 31.15 (a), or the instruction and curriculum advisory committee under 31.16 section 120B.11, if the school has no school site decision team, 31.17 shall recommend how the compensatory education revenue will be 31.18 used to carry out the purpose of this section. A school 31.19 district that has received permission under section 63 to 31.20 allocate compensatory revenue according to school performance 31.21 measures shall share its plan for the distribution of 31.22 compensatory revenue with the school site decision team. 31.23 [EFFECTIVE DATE.] This section is effective July 1, 2005, 31.24 for revenue for fiscal year 2006. 31.25 Sec. 38. Minnesota Statutes 2004, section 126C.17, 31.26 subdivision 2, is amended to read: 31.27 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a)Notwithstanding31.28subdivision 1, for fiscal year 2003, a district's referendum31.29allowance must not exceed the greater of:31.30(1) the sum of a district's referendum allowance for fiscal31.31year 1994 times 1.162 plus its referendum conversion allowance31.32for fiscal year 2003, minus $415;31.33(2) 18.2 percent of the formula allowance;31.34(3) for a newly reorganized district created on July 1,31.352002, the referendum revenue authority for each reorganizing31.36district in the year preceding reorganization divided by its32.1resident marginal cost pupil units for the year preceding32.2reorganization, minus $415; or32.3(4) for a newly reorganized district created after July 1,32.42002, the referendum revenue authority for each reorganizing32.5district in the year preceding reorganization divided by its32.6resident marginal cost pupil units for the year preceding32.7reorganization.32.8(b)Notwithstanding subdivision 1, for fiscal year200432.9 2007 and later, a district's referendum allowance must not 32.10 exceed the greater of: 32.11 (1) the sum of: (i) a district's referendum allowance for 32.12 fiscal year 1994 times 1.177 times the annual inflationary 32.13 increase as calculated under paragraph(c)(b) plus (ii) its 32.14 referendum conversion allowance for fiscal year 2003, minus 32.15 (iii)$415$115; 32.16 (2) the greater of (i)18.628 percent of the formula 32.17 allowance or (ii)$855.79$1,368 times the annual inflationary 32.18 increase as calculated under paragraph (c); or 32.19 (3) for a newly reorganized district created after July 1, 32.2020022006, the referendum revenue authority for each 32.21 reorganizing district in the year preceding reorganization 32.22 divided by its resident marginal cost pupil units for the year 32.23 preceding reorganization. 32.24(c)(b) For purposes of this subdivision, for fiscal year 32.25 2005 and later, "inflationary increase" means one plus the 32.26 percentage change in the Consumer Price Index for urban 32.27 consumers, as prepared by the United States Bureau of Labor 32.28 Standards, for the current fiscal year to fiscal year 2004. For 32.29 fiscal years 2009 and later, for purposes of paragraph(b)(a), 32.30 clause (1), the inflationary increase equals the inflationary 32.31 increase for fiscal year 2008 plus one-fourth of the percentage 32.32 increase in the formula allowance for that year compared with 32.33 the formula allowance for fiscal year 2008. 32.34 [EFFECTIVE DATE.] This section is effective for revenue for 32.35 fiscal year 2007. 32.36 Sec. 39. Minnesota Statutes 2004, section 126C.17, 33.1 subdivision 5, is amended to read: 33.2 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 33.3 year 2003 and later, a district's referendum equalization 33.4 revenue equals the sum of the first tier referendum equalization 33.5 revenue and the second tier referendum equalization revenue. 33.6 (b) A district's first tier referendum equalization revenue 33.7 equals the district's first tier referendum equalization 33.8 allowance times the district's resident marginal cost pupil 33.9 units for that year. 33.10 (c)For fiscal years 2003 and 2004, a district's first tier33.11referendum equalization allowance equals the lesser of the33.12district's referendum allowance under subdivision 1 or $126.33.13For fiscal year 2005, a district's first tier referendum33.14equalization allowance equals the lesser of the district's33.15referendum allowance under subdivision 1 or $405.For fiscal 33.16 year 2006and later, a district's first tier referendum 33.17 equalization allowance equals the lesser of the district's 33.18 referendum allowance under subdivision 1 or $500. For fiscal 33.19 year 2007, a district's first tier referendum equalization 33.20 allowance equals the lesser of the district's referendum 33.21 allowance under subdivision 1 or $600. 33.22 For fiscal year 2008, a district's first tier referendum 33.23 equalization allowance equals the lesser of the district's 33.24 referendum allowance under subdivision 1 or $700. For fiscal 33.25 years 2009 and later, a district's first tier referendum 33.26 equalization allowance equals the lesser of the district's 33.27 referendum allowance under subdivision 1 or $800. 33.28 (d) A district's second tier referendum equalization 33.29 revenue equals the district's second tier referendum 33.30 equalization allowance times the district's resident marginal 33.31 cost pupil units for that year. 33.32 (e) For fiscal year 2006, a district's second tier 33.33 referendum equalization allowance equals the lesser of the 33.34 district's referendum allowance under subdivision 1 or 18.6 33.35 percent of the formula allowance, minus the district's first 33.36 tier referendum equalization allowance. For fiscal year 2007 34.1 and later, a district's second tier referendum equalization 34.2 allowance equals the lesser of the district's referendum 34.3 allowance under subdivision 1 or 28 percent of the formula 34.4 allowance, minus the district's first tier referendum 34.5 equalization allowance. 34.6 (f) Notwithstanding paragraph (e), the second tier 34.7 referendum allowance for a district qualifying for secondary 34.8 sparsity revenue under section 126C.10, subdivision 7, or 34.9 elementary sparsity revenue under section 126C.10, subdivision 34.10 8, equals the district's referendum allowance under subdivision 34.11 1 minus the district's first tier referendum equalization 34.12 allowance. 34.13 Sec. 40. Minnesota Statutes 2004, section 126C.17, 34.14 subdivision 7, is amended to read: 34.15 Subd. 7. [REFERENDUM EQUALIZATION AID.] (a) A district's 34.16 referendum equalization aid equals the difference between its 34.17 referendum equalization revenue and levy. 34.18 (b) If a district's actual levy for first or second tier 34.19 referendum equalization revenue is less than its maximum levy 34.20 limit for that tier, aid shall be proportionately reduced. 34.21 (c) Notwithstanding paragraph (a), the referendum 34.22 equalization aid for a district, where the referendum 34.23 equalization aid under paragraph (a) exceeds 90 percent of the 34.24 referendum revenue, must not exceed18.628 percent of the 34.25 formula allowance times the district's resident marginal cost 34.26 pupil units. A district's referendum levy is increased by the 34.27 amount of any reduction in referendum aid under this paragraph. 34.28 [EFFECTIVE DATE.] This section is effective for revenue for 34.29 fiscal year 2007. 34.30 Sec. 41. Minnesota Statutes 2004, section 126C.17, 34.31 subdivision 9, is amended to read: 34.32 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 34.33 by section 126C.10, subdivision 1, may be increased in the 34.34 amount approved by the voters of the district at a referendum 34.35 called for the purpose. The referendum may be called by the 34.36 board or shall be called by the board upon written petition of 35.1 qualified voters of the district. The referendum must be 35.2 conducted one or two calendar years before the increased levy 35.3 authority, if approved, first becomes payable. Only one 35.4 election to approve an increase may be held in a calendar year. 35.5 Unless the referendum is conducted by mail under paragraph (g), 35.6 the referendum must be held on the first Tuesday after the first 35.7 Monday in November. The ballot must state the maximum amount of 35.8 the increased revenue per resident marginal cost pupil unit, the35.9estimated referendum tax rate as a percentage of referendum35.10market value in the first year it is to be levied, and that the35.11revenue must be used to finance school operations. The ballot 35.12 may state a schedule, determined by the board, of increased 35.13 revenue per resident marginal cost pupil unit that differs from 35.14 year to year over the number of years for which the increased 35.15 revenue is authorized.If the ballot contains a schedule35.16showing different amounts, it must also indicate the estimated35.17referendum tax rate as a percent of referendum market value for35.18the amount specified for the first year and for the maximum35.19amount specified in the schedule.The ballot may state that 35.20 existing referendum levy authority is expiring. In this case, 35.21 the ballot may also compare the proposed levy authority to the 35.22 existing expiring levy authority, and express the proposed 35.23 increase as the amount, if any, over the expiring referendum 35.24 levy authority. The ballot must designate the specific number 35.25 of years, not to exceed ten, for which the referendum 35.26 authorization applies. The ballot, including a ballot on the 35.27 question to revoke or reduce the increased revenue amount under 35.28 paragraph (c), must abbreviate the term "per resident marginal 35.29 cost pupil unit" as "per pupil." The notice required under 35.30 section 275.60 may be modified to read, in cases of renewing 35.31 existing levies: 35.32 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 35.33 FOR A PROPERTY TAX INCREASE." 35.34 The ballot may contain a textual portion with the 35.35 information required in this subdivision and a question stating 35.36 substantially the following: 36.1 "Shall the increase in the revenue proposed by (petition 36.2 to) the board of ........., School District No. .., be approved?" 36.3 If approved, an amount equal to the approved revenue per 36.4 resident marginal cost pupil unit times the resident marginal 36.5 cost pupil units for the school year beginning in the year after 36.6 the levy is certified shall be authorized for certification for 36.7 the number of years approved, if applicable, or until revoked or 36.8 reduced by the voters of the district at a subsequent referendum. 36.9 (b) The board must prepare and deliver by first class mail 36.10 at least 15 days but no more than 30 days before the day of the 36.11 referendum to each taxpayer a notice of the referendum and the 36.12 proposed revenue increase. The board need not mail more than 36.13 one notice to any taxpayer. For the purpose of giving mailed 36.14 notice under this subdivision, owners must be those shown to be 36.15 owners on the records of the county auditor or, in any county 36.16 where tax statements are mailed by the county treasurer, on the 36.17 records of the county treasurer. Every property owner whose 36.18 name does not appear on the records of the county auditor or the 36.19 county treasurer is deemed to have waived this mailed notice 36.20 unless the owner has requested in writing that the county 36.21 auditor or county treasurer, as the case may be, include the 36.22 name on the records for this purpose. The notice must project 36.23 the anticipated amount of tax increase in annual dollarsand36.24annual percentagefor typical residential homesteads, 36.25 agricultural homesteads, apartments, and commercial-industrial 36.26 property within the school district. 36.27 The notice for a referendum may state that an existing 36.28 referendum levy is expiring and project the anticipated amount 36.29 of increase over the existing referendum levy in the first year, 36.30 if any, in annual dollarsand annual percentagefor typical 36.31 residential homesteads, agricultural homesteads, apartments, and 36.32 commercial-industrial property within the district. 36.33 The notice must include the following statement: "Passage 36.34 of this referendum will result in an increase in your property 36.35 taxes." However, in cases of renewing existing levies, the 36.36 notice may include the following statement: "Passage of this 37.1 referendum may result in an increase in your property taxes." 37.2 (c) A referendum on the question of revoking or reducing 37.3 the increased revenue amount authorized pursuant to paragraph 37.4 (a) may be called by the board and shall be called by the board 37.5 upon the written petition of qualified voters of the district. 37.6 A referendum to revoke or reduce the revenue amount must state 37.7 the amount per resident marginal cost pupil unit by which the 37.8 authority is to be reduced. Revenue authority approved by the 37.9 voters of the district pursuant to paragraph (a) must be 37.10 available to the school district at least once before it is 37.11 subject to a referendum on its revocation or reduction for 37.12 subsequent years. Only one revocation or reduction referendum 37.13 may be held to revoke or reduce referendum revenue for any 37.14 specific year and for years thereafter. 37.15 (d) A petition authorized by paragraph (a) or (c) is 37.16 effective if signed by a number of qualified voters in excess of 37.17 15 percent of the registered voters of the district on the day 37.18 the petition is filed with the board. A referendum invoked by 37.19 petition must be held on the date specified in paragraph (a). 37.20 (e) The approval of 50 percent plus one of those voting on 37.21 the question is required to pass a referendum authorized by this 37.22 subdivision. 37.23 (f) At least 15 days before the day of the referendum, the 37.24 district must submit a copy of the notice required under 37.25 paragraph (b) to the commissioner and to the county auditor of 37.26 each county in which the district is located. Within 15 days 37.27 after the results of the referendum have been certified by the 37.28 board, or in the case of a recount, the certification of the 37.29 results of the recount by the canvassing board, the district 37.30 must notify the commissioner of the results of the referendum. 37.31 Sec. 42. Minnesota Statutes 2004, section 126C.17, 37.32 subdivision 13, is amended to read: 37.33 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.](a)A school 37.34 district that received supplemental or transition revenue in 37.35 fiscal year 2002 may convert its supplemental revenue conversion 37.36 allowance and transition revenue conversion allowance to 38.1 additional referendum allowance under subdivision 1 for fiscal 38.2 year 2003 and thereafter. A majority of the school board must 38.3 approve the conversion at a public meeting before November 1, 38.4 2001. For a district with other referendum authority, the 38.5 referendum conversion allowance approved by the board continues 38.6 until the portion of the district's other referendum authority 38.7 with the earliest expiration date after June 30, 2006, expires. 38.8 For a district with no other referendum authority, the 38.9 referendum conversion allowance approved by the board continues 38.10 until June 30, 2012. 38.11(b) A school district that received transition revenue in38.12fiscal year 2004 may convert all or part of its transition38.13revenue to referendum revenue with voter approval in a38.14referendum called for the purpose. The referendum must be held38.15in accordance with subdivision 9, except that the ballot may38.16state that existing transition revenue authority is being38.17canceled or is expiring. In this case, the ballot shall compare38.18the proposed referendum allowance to the canceled or expiring38.19transition revenue allowance. For purposes of this comparison,38.20the canceled or expiring transition revenue allowance per38.21adjusted marginal cost pupil unit shall be converted to an38.22allowance per resident marginal cost pupil unit based on the38.23district's ratio of adjusted marginal cost pupil units to38.24resident marginal cost pupil units for the preceding fiscal38.25year. The referendum must be held on the first Tuesday after38.26the first Monday in November. The notice required under section38.27275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT38.28QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."38.29Elections under this paragraph must be held in 2007 or earlier.38.30 Sec. 43. Minnesota Statutes 2004, section 126C.21, 38.31 subdivision 4, is amended to read: 38.32 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any38.33provisions of any other law to the contrary, the adjusted net38.34tax capacity used in calculating general education aid may38.35include only that property that is currently taxable in the38.36district.39.1(2)For districts thatreceived paymentshave revenue under 39.2 sections 298.018; 298.225; 229.24 to 298.28, excluding 298.26 39.3 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 39.4 298.391 to 298.396;and298.405; and 477A.15, or any law 39.5 imposing a tax upon severed mineral values;or recognized39.6revenue under section 477A.15;, the general education aid must 39.7 be reduced in the final adjustment payment by (1) thedifference39.8between the dollaramount of thepayments receivedrevenue 39.9 recognized pursuant to those sections, or revenue recognized39.10under section 477A.15 infor the fiscal year to which the final 39.11 adjustment is attributableand, less (2) the amount that was 39.12 calculated, pursuant to section 126C.48, subdivision 8, as a 39.13 reduction of the levy attributable to the fiscal year to which 39.14 the final adjustment is attributable. If the final adjustment 39.15 of a district's general education aid for a fiscal year is a 39.16 negative amount because of thisclausesubdivision, the next 39.17 fiscal year's general education aid to that district must be 39.18 reduced by this negative amount in the following manner: there 39.19 must be withheld from each scheduled general education aid 39.20 payment due the district in such fiscal year, 15 percent of the 39.21 total negative amount, until the total negative amount has been 39.22 withheld. The amount reduced from general education aid 39.23 pursuant to thisclausesubdivision mustbe recognized asreduce 39.24 revenue in the fiscal year to which the final adjustment payment 39.25 is attributable. 39.26 [EFFECTIVE DATE.] This section is effective for revenue for 39.27 fiscal year 2006. 39.28 Sec. 44. Minnesota Statutes 2004, section 126C.40, 39.29 subdivision 1, is amended to read: 39.30 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 39.31 independent or a special school district or a group of 39.32 independent or special school districts finds it economically 39.33 advantageous to rent or lease a building or land for any 39.34 instructional purposesor, for school storage or furniture 39.35 repair, or for administrative space according to paragraph (j), 39.36 and it determines that the operating capital revenue authorized 40.1 under section 126C.10, subdivision 13, is insufficient for this 40.2 purpose, it may apply to the commissioner for permission to make 40.3 an additional capital expenditure levy for this purpose. An 40.4 application for permission to levy under this subdivision must 40.5 contain financial justification for the proposed levy, the terms 40.6 and conditions of the proposed lease, and a description of the 40.7 space to be leased and its proposed use. 40.8 (b) The criteria for approval of applications to levy under 40.9 this subdivision must include: the reasonableness of the price, 40.10 the appropriateness of the space to the proposed activity, the 40.11 feasibility of transporting pupils to the leased building or 40.12 land, conformity of the lease to the laws and rules of the state 40.13 of Minnesota, and the appropriateness of the proposed lease to 40.14 the space needs and the financial condition of the district. 40.15 The commissioner must not authorize a levy under this 40.16 subdivision in an amount greater than90 percent ofthe cost to 40.17 the district of renting or leasing a building or land for 40.18 approved purposes. The proceeds of this levy must not be used 40.19 for custodial or other maintenance services. A district may not 40.20 levy under this subdivision for the purpose of leasing or 40.21 renting a district-owned building or site to itself. 40.22 (c) For agreements finalized after July 1, 1997, a district 40.23 may not levy under this subdivision for the purpose of leasing: 40.24 (1) a newly constructed building used primarily for regular 40.25 kindergarten, elementary, or secondary instruction; or (2) a 40.26 newly constructed building addition or additions used primarily 40.27 for regular kindergarten, elementary, or secondary instruction 40.28 that contains more than 20 percent of the square footage of the 40.29 previously existing building. 40.30 (d) Notwithstanding paragraph (b), a district may levy 40.31 under this subdivision for the purpose of leasing or renting a 40.32 district-owned building or site to itself only if the amount is 40.33 needed by the district to make payments required by a lease 40.34 purchase agreement, installment purchase agreement, or other 40.35 deferred payments agreement authorized by law, and the levy 40.36 meets the requirements of paragraph (c). A levy authorized for 41.1 a district by the commissioner under this paragraph may be in 41.2 the amount needed by the district to make payments required by a 41.3 lease purchase agreement, installment purchase agreement, or 41.4 other deferred payments agreement authorized by law, provided 41.5 that any agreement include a provision giving the school 41.6 districts the right to terminate the agreement annually without 41.7 penalty. 41.8 (e) The total levy under this subdivision for a district 41.9 for any year must not exceed$90$100 times the resident pupil 41.10 units for the fiscal year to which the levy is attributable. 41.11 (f) For agreements for which a review and comment have been 41.12 submitted to the Department of Education after April 1, 1998, 41.13 the term "instructional purpose" as used in this subdivision 41.14 excludes expenditures on stadiums. 41.15 (g) The commissioner of education may authorize a school 41.16 district to exceed the limit in paragraph (e) if the school 41.17 district petitions the commissioner for approval. The 41.18 commissioner shall grant approval to a school district to exceed 41.19 the limit in paragraph (e) for not more than five years if the 41.20 district meets the following criteria: 41.21 (1) the school district has been experiencing pupil 41.22 enrollment growth in the preceding five years; 41.23 (2) the purpose of the increased levy is in the long-term 41.24 public interest; 41.25 (3) the purpose of the increased levy promotes colocation 41.26 of government services; and 41.27 (4) the purpose of the increased levy is in the long-term 41.28 interest of the district by avoiding over construction of school 41.29 facilities. 41.30 (h) A school district that is a member of an intermediate 41.31 school district may include in its authority under this section 41.3290 percent ofthe costs associated with leases of administrative 41.33 and classroom space for intermediate school district programs. 41.34 This authority must not exceed$22.50$25 times the adjusted 41.35 marginal cost pupil units of the member districts. This 41.36 authority is in addition to any other authority authorized under 42.1 this section. 42.2 (i) In addition to the allowable capital levies in 42.3 paragraph (a), a district that is a member of the "Technology 42.4 and Information Education Systems" data processing joint board, 42.5 that finds it economically advantageous to enter into a lease 42.6 purchase agreement for a building for a group of school 42.7 districts or special school districts for staff development 42.8 purposes, may levy for its portion of lease costs attributed to 42.9 the district within the total levy limit in paragraph (e). 42.10 (j) A school district may lease administrative space under 42.11 this section if the district can demonstrate to the 42.12 commissioner's satisfaction that the administrative space is 42.13 less expensive than instructional space that the district would 42.14 otherwise lease. 42.15 Sec. 45. Minnesota Statutes 2004, section 126C.43, 42.16 subdivision 2, is amended to read: 42.17 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 42.18 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 42.19 levy90 percent 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 (i) to 42.22 pay the district's obligations under section 268.052, 42.23 subdivision 1, and (ii) to pay for job placement services 42.24 offered to employees who may become eligible for benefits 42.25 pursuant to section 268.085 for the fiscal year the levy is 42.26 certified. 42.27 [EFFECTIVE DATE.] This section is effective for taxes 42.28 payable in 2006. 42.29 Sec. 46. Minnesota Statutes 2004, section 126C.43, 42.30 subdivision 3, is amended to read: 42.31 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy9042.32percent ofthe amountexceeding $10 times the district's42.33adjusted marginal cost pupil units for the fiscal year ending in42.34the year before the year the levy is certifiednecessary to pay 42.35 judgments against the district under section 123B.25 that became 42.36 final after the date the district certified its proposed levy in 43.1 the previous year. With the approval of the commissioner, a 43.2 district may spread this levy over a period not to exceed three 43.3 years. Upon approval through the adoption of a resolution by 43.4 each of an intermediate district's member school district 43.5 boards, a member school district may include its proportionate 43.6 share of the costs of a judgment against an intermediate school 43.7 district that became final under section 123B.25 after the date 43.8 that the earliest member school district certified its proposed 43.9 levy in the previous year. With the approval of the 43.10 commissioner, an intermediate school district member school 43.11 district may spread this levy over a period not to exceed three 43.12 years. 43.13 [EFFECTIVE DATE.] This section is effective for taxes 43.14 payable in 2006. 43.15 Sec. 47. Minnesota Statutes 2004, section 126C.44, is 43.16 amended to read: 43.17 126C.44 [SAFE SCHOOLS LEVY.] 43.18 Each district may make a levy on all taxable property 43.19 located within the district for the purposes specified in this 43.20 section. The maximum amount which may be levied for all costs 43.21 under this section shall be equal to$27$30 multiplied by the 43.22 district's adjusted marginal cost pupil units for the school 43.23 year. The proceeds of the levy must be used for directly 43.24 funding the following purposes or for reimbursing the cities and 43.25 counties who contract with the district for the following 43.26 purposes: (1) to pay the costs incurred for the salaries, 43.27 benefits, and transportation costs of peace officers and 43.28 sheriffs for liaison in services in the district's schools; (2) 43.29 to pay the costs for a drug abuse prevention program as defined 43.30 in section 609.101, subdivision 3, paragraph (e), in the 43.31 elementary schools; (3) to pay the costs for a gang resistance 43.32 education training curriculum in the district's schools; (4) to 43.33 pay the costs for security in the district's schools and on 43.34 school property;or(5) to pay the costs incurred for the 43.35 salaries and benefits of school counselors; or (6) to pay the 43.36 costs for other crime prevention, drug abuse, student and staff 44.1 safety, and violence prevention measures taken by the school 44.2 district. The district must initially attempt to contract for 44.3 services to be provided by peace officers or sheriffs with the 44.4 police department of each city or the sheriff's department of 44.5 the county within the district containing the school receiving 44.6 the services. If a local police department or a county 44.7 sheriff's department does not wish to provide the necessary 44.8 services, the district may contract for these services with any 44.9 other police or sheriff's department located entirely or 44.10 partially within the school district's boundaries. The levy 44.11 authorized under this section is not included in determining the 44.12 school district's levy limitations. 44.13 [EFFECTIVE DATE.] This section is effective for taxes 44.14 payable in 2006. 44.15 Sec. 48. Minnesota Statutes 2004, section 126C.48, is 44.16 amended by adding a subdivision to read: 44.17 Subd. 9. [REVERSE REFERENDUM.] (a) At the time a district 44.18 certifies its proposed levy to the county auditor according to 44.19 section 275.065, subdivision 1, the school board must certify 44.20 the amount of deferred maintenance revenue per pupil unit that 44.21 the board intends to raise. If the board certifies an amount 44.22 for fiscal year 2007, the amount certified is subject to reverse 44.23 referendum under paragraphs (b) and (c). If the amount 44.24 certified for fiscal year 2008 and later exceeds the amount 44.25 certified for the previous fiscal year, excluding any amount 44.26 disallowed by reverse referendum, the increase over the amount 44.27 certified for the previous fiscal year excluding any amount 44.28 disallowed by reverse referendum, is subject to reverse 44.29 referendum under paragraphs (b) and (c). 44.30 (b) If a district certifies revenue under paragraph (a) 44.31 that is subject to reverse referendum, the district must publish 44.32 notice of the intended increase subject to reverse referendum by 44.33 October 10. The notice must include the amount of the revenue 44.34 increase per adjusted pupil unit and the property tax increase 44.35 in annual dollars for typical residential homesteads, 44.36 agricultural homesteads, apartments, and commercial-industrial 45.1 property within the district. 45.2 (c) Revenue tentatively authorized by the board under this 45.3 subdivision becomes authorized unless a petition signed by more 45.4 than 15 percent of the registered voters of the district is 45.5 filed with the school board within 30 days of the publication of 45.6 notice. The percentage is to be determined with reference to 45.7 the number of registered voters in the district on the last day 45.8 before the petition is filed with the board. The petition must 45.9 call for a referendum on the question of whether to increase the 45.10 revenue. The approval of 50 percent plus one of those voting on 45.11 the question is required to pass a referendum authorized by this 45.12 section. The referendum must be held on the last Tuesday in 45.13 January. 45.14 (d) The ballot must state that the board proposes to 45.15 increase its deferred maintenance revenue, the maximum amount of 45.16 the increased revenue per pupil, and the estimated tax rate as a 45.17 percentage of net tax capacity in the first year it is to be 45.18 levied. The ballot shall contain a textual portion with the 45.19 information required in this paragraph and a question stating 45.20 substantially the following: "Shall the increase in revenue 45.21 proposed by the Board of ......., Independent School District 45.22 No. ......., be approved?" 45.23 (e) The district's final and deferred maintenance revenue 45.24 per pupil unit for a fiscal year must not exceed the sum of the 45.25 amounts certified by the district according to paragraph (a). A 45.26 district may elect to reduce the amount certified according to 45.27 paragraph (a) at the time of final levy certification. If the 45.28 criteria for a reverse referendum have been met, but the amount 45.29 certified is reduced to a level that would not require a reverse 45.30 referendum, the reverse referendum is canceled. 45.31 Sec. 49. Minnesota Statutes 2004, section 126C.48, 45.32 subdivision 2, is amended to read: 45.33 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 45.34 each year each district must notify the commissioner of the 45.35 proposed levies in compliance with the levy limitations of this 45.36 chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, 46.1 and 136D. By January157 of each year each district must 46.2 notify the commissioner of the final levies certified. The 46.3 commissioner shall prescribe the form of these notifications and 46.4 may request any additional information necessary to compute 46.5 certified levy amounts. 46.6 Sec. 50. Minnesota Statutes 2004, section 126C.48, 46.7 subdivision 8, is amended to read: 46.8 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 46.9 Reductions in levies pursuant to subdivision 1 must be made 46.10 prior to the reductions in clause (2). 46.11 (2) Notwithstanding any other law to the contrary, 46.12 districtswhich received paymentsthat have revenue pursuant to 46.13 sections 298.018; 298.225; 298.24 to 298.28, except an amount 46.14 distributed undersectionsections 298.26; 298.28, subdivision 46.15 4,paragraphparagraphs (c), clause (ii), and (d); 298.34 to 46.16 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law 46.17 imposing a tax upon severed mineral values; or recognized46.18revenue under section 477A.15 must not include a portion of46.19these aids in their permissible levies pursuant to those46.20sections, but insteadmust reduce thepermissiblelevies 46.21 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 46.22 124A, 124D, 125A, and 127A bythe greater of the following:95 46.23 percent of the previous year's revenue specified under this 46.24 clause. 46.25(a) an amount equal to 50 percent of the total dollar46.26amount of the payments received pursuant to those sections or46.27revenue recognized under section 477A.15 in the previous fiscal46.28year; or46.29(b) an amount equal to the total dollar amount of the46.30payments received pursuant to those sections or revenue46.31recognized under section 477A.15 in the previous fiscal year46.32less the product of the same dollar amount of payments or46.33revenue times five percent.46.34For levy year 2002 only, 77 percent of the amounts46.35distributed under section 298.225 and 298.28, and 100 percent of46.36the amounts distributed under sections 298.018; 298.34 to47.1298.39; 298.391 to 298.396; 298.405; and any law imposing a tax47.2upon severed mineral values, or recognized revenue under section47.3477A.15, shall be used for purposes of the calculations under47.4this paragraph. For levy year 2003 only, the levy reductions47.5under this subdivision must be calculated as if section 298.28,47.6subdivision 4, paragraph (f), did not apply for the 200347.7distribution.47.8 (3) The amount of any voter approved referendum, facilities 47.9 down payment, and debt levies shall not be reduced by more than 47.10 50 percent under this subdivision. In administering this 47.11 paragraph, the commissioner shall first reduce the nonvoter 47.12 approved levies of a district; then, if any payments, severed 47.13 mineral value tax revenue or recognized revenue under paragraph 47.14 (2) remains, the commissioner shall reduce any voter approved 47.15 referendum levies authorized under section 126C.17; then, if any 47.16 payments, severed mineral value tax revenue or recognized 47.17 revenue under paragraph (2) remains, the commissioner shall 47.18 reduce any voter approved facilities down payment levies 47.19 authorized under section 123B.63 and then, if any payments, 47.20 severed mineral value tax revenue or recognized revenue under 47.21 paragraph (2) remains, the commissioner shall reduce any voter 47.22 approved debt levies. 47.23 (4) Before computing the reduction pursuant to this 47.24 subdivision of the health and safety levy authorized by sections 47.25 123B.57 and 126C.40, subdivision 5, the commissioner shall 47.26 ascertain from each affected school district the amount it 47.27 proposes to levy under each section or subdivision. The 47.28 reduction shall be computed on the basis of the amount so 47.29 ascertained. 47.30 (5) To the extent the levy reduction calculated under 47.31 paragraph (2) exceeds the limitation in paragraph (3), an amount 47.32 equal to the excess must be distributed from the school 47.33 district's distribution under sections 298.225, 298.28, and 47.34 477A.15 in the following year to the cities and townships within 47.35 the school district in the proportion that their taxable net tax 47.36 capacity within the school district bears to the taxable net tax 48.1 capacity of the school district for property taxes payable in 48.2 the year prior to distribution. No city or township shall 48.3 receive a distribution greater than its levy for taxes payable 48.4 in the year prior to distribution. The commissioner of revenue 48.5 shall certify the distributions of cities and towns under this 48.6 paragraph to the county auditor by September 30 of the year 48.7 preceding distribution. The county auditor shall reduce the 48.8 proposed and final levies of cities and towns receiving 48.9 distributions by the amount of their distribution. 48.10 Distributions to the cities and towns shall be made at the times 48.11 provided under section 298.27. 48.12 [EFFECTIVE DATE.] This section is effective for revenue for 48.13 fiscal year 2006. 48.14 Sec. 51. Minnesota Statutes 2004, section 127A.45, 48.15 subdivision 11, is amended to read: 48.16 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 48.17 hundred percent of the aid for the previous fiscal year must be 48.18 paid in the current year for the following aids: 48.19 telecommunications/Internet access equity and according to 48.20 section 125B.26, special education special pupil aid according 48.21 to section 125A.75, subdivision 3, aid for litigation costs 48.22 according to section 125A.75, subdivision 8, aid for 48.23 court-placed special education expenses according to section 48.24 125A.79, subdivision 4, and aid for special education 48.25 out-of-state tuition according to section 125A.79, subdivision 48.26 8, and shared time aid according to section 126C.01, subdivision 48.27 7. 48.28 Sec. 52. Minnesota Statutes 2004, section 127A.49, 48.29 subdivision 2, is amended to read: 48.30 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 48.31 sections 270.07, 375.192, or otherwise, the net tax capacity of 48.32 any district for any taxable year is changed after the taxes for 48.33 that year have been spread by the county auditor and the local 48.34 tax rate as determined by the county auditor based upon the 48.35 original net tax capacity is applied upon the changed net tax 48.36 capacities, the county auditor shall, prior to February 1 of 49.1 each year, certify to the commissioner of education the amount 49.2 of any resulting net revenue loss that accrued to the district 49.3 during the preceding year. Each year, the commissioner shall 49.4 pay an abatement adjustment to the district in an amount 49.5 calculated according to the provisions of this subdivision. 49.6 This amount shall be deducted from the amount of the levy 49.7 authorized by section 126C.46. The amount of the abatement 49.8 adjustment must be the product of: 49.9 (1) the net revenue loss as certified by the county 49.10 auditor, times 49.11 (2) the ratio of: 49.12 (i) the sum of the amounts of the district's certified levy 49.13 in the third preceding year according to the following: 49.14 (A) section 123B.57, if the district received health and 49.15 safety aid according to that section for the second preceding 49.16 year; 49.17 (B) section 124D.20, if the district received aid for 49.18 community education programs according to that section for the 49.19 second preceding year; 49.20 (C) section 124D.135, subdivision 3, if the district 49.21 received early childhood family education aid according to 49.22 section 124D.135 for the second preceding year; and 49.23 (D) section 126C.17, subdivision 6, if the district 49.24 received referendum equalization aid according to that section 49.25 for the second preceding year; to 49.26 (ii) the total amount of the district's certified levy in 49.27 the third preceding December, plus or minus auditor's 49.28 adjustments. 49.29 Sec. 53. Minnesota Statutes 2004, section 127A.49, 49.30 subdivision 3, is amended to read: 49.31 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 49.32 tax increment is made to a district pursuant tosectionsections 49.33 469.176, subdivision 2, and 469.177, subdivision 9, or upon 49.34 decertification of a tax increment district, the school 49.35 district's aid and levy limitations must be adjusted for the 49.36 fiscal year in which the excess tax increment is paid under the 50.1 provisions of this subdivision. 50.2 (b) An amount must be subtracted from the district's aid 50.3 for the current fiscal year equal to the product of: 50.4 (1) the amount of the payment of excess tax increment to 50.5 the district, times 50.6 (2) the ratio of: 50.7 (i) the sum of the amounts of the district's certified levy 50.8 for the fiscal year in which the excess tax increment is paid 50.9 according to the following: 50.10 (A) section 123B.57, if the district received health and 50.11 safety aid according to that section for the second preceding 50.12 year; 50.13 (B) section 124D.20, if the district received aid for 50.14 community education programs according to that section for the 50.15 second preceding year; 50.16 (C) section 124D.135, subdivision 3, if the district 50.17 received early childhood family education aid according to 50.18 section 124D.135 for the second preceding year; and 50.19 (D) section 126C.17, subdivision 6, if the district 50.20 received referendum equalization aid according to that section 50.21 for the second preceding year; to 50.22 (ii) the total amount of the district's certified levy for 50.23 the fiscal year, plus or minus auditor's adjustments. 50.24 (c) An amount must be subtracted from the school district's 50.25 levy limitation for the next levy certified equal to the 50.26 difference between: 50.27 (1) the amount of the distribution of excess increment; and 50.28 (2) the amount subtracted from aid pursuant to clause (a). 50.29 If the aid and levy reductions required by this subdivision 50.30 cannot be made to the aid for the fiscal year specified or to 50.31 the levy specified, the reductions must be made from aid for 50.32 subsequent fiscal years, and from subsequent levies. The school 50.33 district must use the payment of excess tax increment to replace 50.34 the aid and levy revenue reduced under this subdivision. 50.35 (d) This subdivision applies only to the total amount of 50.36 excess increments received by a district for a calendar year 51.1 that exceeds $25,000. 51.2 Sec. 54. Minnesota Statutes 2004, section 127A.50, 51.3 subdivision 5, is amended to read: 51.4 Subd. 5. [ADJUSTMENT PHASE-OUT AND TERMINATION.] All 51.5 adjustments under this section terminate on June 30, 2020. For 51.6 fiscal year 2007 and later, the adjustment under this section 51.7 equals 75 percent of the adjustment for fiscal year 2006. 51.8 [EFFECTIVE DATE.] This section is effective for revenue for 51.9 fiscal year 2007. 51.10 Sec. 55. Minnesota Statutes 2004, section 275.14, is 51.11 amended to read: 51.12 275.14 [CENSUS.] 51.13For the purposes of sections 275.124 to 275.16, the51.14population of a city shall be that established by the last51.15federal census, by a special census taken by the United States51.16Bureau of the Census, by an estimate made by the Metropolitan51.17Council, or by the state demographer made according to section51.184A.02, whichever has the latest stated date of count or51.19estimate, before July 2 of the current levy year.The 51.20 population of a school district must be as certified by the 51.21 Department of Education from the most recent federal census. In 51.22 any year in which no federal census is taken pursuant to law in 51.23 any school district affected by sections275.124 to51.24275.16124D.20 and 124D.531 a population estimate may be made 51.25 and submitted to the state demographer for approval as 51.26 hereinafter provided. The school board of a school district, in 51.27 case it desires a population estimate, shall pass a resolution 51.28 by July 1 containing a current estimate of the population of the 51.29 school district and shall submit the resolution to the state 51.30 demographer. The resolution shall describe the criteria on 51.31 which the estimate is based and shall be in a form and 51.32 accompanied by the data prescribed by the state demographer. 51.33 The state demographer shall determine whether or not the 51.34 criteria and process described in the resolution provide a 51.35 reasonable basis for the population estimate and shall inform 51.36 the school district of that determination within 30 days of 52.1 receipt of the resolution. If the state demographer determines 52.2 that the criteria and process described in the resolution do not 52.3 provide a reasonable basis for the population estimate, the 52.4 resolution shall be of no effect. If the state demographer 52.5 determines that the criteria and process do provide a reasonable 52.6 basis for the population estimate, the estimate shall be treated 52.7 as the population of the school district for the purposes of 52.8 sections275.124 to 275.16124D.20 and 124D.531 until the 52.9 population of the school district has been established by the 52.10 next federal census or until a more current population estimate 52.11 is prepared and approved as provided herein, whichever occurs 52.12 first. The state demographer shall establish guidelines for 52.13 acceptable population estimation criteria and processes. The 52.14 state demographer shall issue advisory opinions upon request in 52.15 writing to cities or school districts as to proposed criteria 52.16 and processes prior to their implementation in an estimation. 52.17 The advisory opinion shall be final and binding upon the 52.18 demographer unless the demographer can show cause why it should 52.19 not be final and binding. 52.20 In the event that a census tract employed in taking a 52.21 federal or local census overlaps two or more school districts, 52.22 the county auditor shall, on the basis of the best information 52.23 available, allocate the population of said census tract to the 52.24 school districts involved. 52.25The term "council," as used in sections 275.124 to 275.16,52.26means any board or body, whether composed of one or more52.27branches, authorized to make ordinances for the government of a52.28city within this state.52.29 Sec. 56. Minnesota Statutes 2004, section 275.16, is 52.30 amended to read: 52.31 275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 52.32 If any such municipality shall return to the county auditor 52.33 a levy greater than permitted by chapters 123A, 123B, 124D, 52.34 126C, and 136C,and 136D,sections 275.124 to 275.16, and 275.70 52.35 to 275.74, such county auditor shall extend only such amount of 52.36 taxes as the limitations herein prescribed will permit; 53.1 provided, if such levy shall include any levy for the payment of 53.2 bonded indebtedness or judgments, such levies for bonded 53.3 indebtedness or judgments shall be extended in full, and the 53.4 remainder of the levies shall be reduced so that the total 53.5 thereof, including levies for bonds and judgments, shall not 53.6 exceed such amount as the limitations herein prescribed will 53.7 permit. 53.8 Sec. 57. Minnesota Statutes 2004, section 469.177, 53.9 subdivision 9, is amended to read: 53.10 Subd. 9. [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET 53.11 TAX CAPACITY.] (a) If the amount of tax paid on captured net tax 53.12 capacity exceeds the amount of tax increment, the county auditor 53.13 shall distribute the excess to the municipality, county, and 53.14 school district as follows: each governmental unit's share of 53.15 the excess equals 53.16 (1) the total amount of the excess for the tax increment 53.17 financing district, multiplied by 53.18 (2) a fraction, the numerator of which is the current local 53.19 tax rate of the governmental unit less the governmental unit's 53.20 local tax rate for the year the original local tax rate for the 53.21 district was certified (in no case may this amount be less than 53.22 zero) and the denominator of which is the sum of the numerators 53.23 for the municipality, county, and school district. 53.24 If the entire increase in the local tax rate is attributable to 53.25 a taxing district, other than the municipality, county, or 53.26 school district, then the excess must be distributed to the 53.27 municipality, county, and school district in proportion to their 53.28 respective local tax rates. 53.29 (b) The amounts distributed shall be deducted in computing 53.30 the levy limits of the taxing district for the succeeding 53.31 taxable year.In the case of a school district, only the53.32proportion of the excess taxes attributable to unequalized53.33levies that are subject to a fixed dollar amount levy limit53.34shall be deducted from the levy limit.53.35 (c) In the case of distributions to a school districtthat53.36are attributable to state equalized levies, the county auditor 54.1 shall report amounts distributed to the commissioner of 54.2 education in the same manner as provided for excess increments 54.3 under section 469.176, subdivision 2, and the distribution shall 54.4 be deducted from the school district's state aid payments and 54.5 levy limitation according to section 127A.49, subdivision 3. 54.6 Sec. 58. Laws 2003, First Special Session chapter 9, 54.7 article 1, section 51, is amended to read: 54.8 Sec. 51. [STAFF DEVELOPMENT RESERVED REVENUE; FISCAL YEARS54.92004 AND 2005.] 54.10 Subdivision 1. [FISCAL YEARS 2004 AND 2005.] 54.11 Notwithstanding Minnesota Statutes, section 122A.61, subdivision 54.12 1, for fiscal years 2004 and 2005 only, a school district must 54.13 reserve an amount equal to at least zero percent of the basic 54.14 revenue under Minnesota Statutes, section 126C.10, subdivision 54.15 2. A district may waive this requirement by a majority vote of 54.16 the licensed teachers in the district and a majority vote of the 54.17 school board. A district in statutory operating debt is exempt 54.18 from this requirement. 54.19 Subd. 2. [FISCAL YEARS 2006 AND 2007.] A school district 54.20 is not subject to Minnesota Statutes, sections 122A.60 and 54.21 122A.61, subdivision 1, for fiscal years 2006 and 2007. 54.22 [EFFECTIVE DATE.] This section is effective July 1, 2005. 54.23 Sec. 59. [KINDERGARTEN REPORTING.] 54.24 Notwithstanding Minnesota Statutes, sections 120A.05, 54.25 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 54.26 1, pupils four or five years of age on September 1 of the 54.27 calendar year in which the school year commences and enrolled in 54.28 a prekindergarten program implemented by the district before 54.29 July 1, 2003, may be reported as kindergarten pupils under 54.30 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 54.31 years 2004 and earlier. 54.32 [EFFECTIVE DATE.] This section is effective the day 54.33 following final enactment and applies to fiscal years 2004 and 54.34 earlier. 54.35 Sec. 60. [TRANSITION REVENUE ADJUSTMENTS.] 54.36 For taxes payable in 2006, a district may levy an amount 55.1 equal to the increase in the district's transition revenue for 55.2 fiscal year 2006 under Minnesota Statutes, section 126C.10, 55.3 subdivision 31, paragraphs (c) and (d). 55.4 Sec. 61. [ALTERNATIVE COMPENSATION REVENUE GUARANTEE.] 55.5 Notwithstanding Minnesota Statutes, sections 122A.415, 55.6 subdivision 1, and 126C.10, subdivision 34, paragraphs (a) and 55.7 (b), a school district that received alternative compensation 55.8 aid for fiscal year 2005, but does not qualify for alternative 55.9 compensation revenue for all sites in the district for fiscal 55.10 year 2006 or 2007, shall receive additional basic alternative 55.11 compensation aid for that fiscal year equal to the lesser of the 55.12 amount of alternative compensation aid it received for fiscal 55.13 year 2005 or the amount it would have received for that fiscal 55.14 year under Minnesota Statutes 2004, section 122A.415, 55.15 subdivision 1, for teachers at sites not qualifying for 55.16 alternative compensation revenue for that fiscal year, if the 55.17 district submits a timely application and the commissioner 55.18 determines that the district continues to implement an 55.19 alternative professional pay system, consistent with its 55.20 application under Minnesota Statutes 2004, section 122A.415, for 55.21 fiscal year 2005. The additional basic alternative compensation 55.22 aid under this section must not be used in calculating the 55.23 alternative compensation levy under Minnesota Statutes, section 55.24 126C.10, subdivision 35. This section applies only to fiscal 55.25 years 2006 and 2007 and does not apply to later fiscal years. 55.26 Sec. 62. [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 55.27 For taxes payable in 2006 through 2010, a school district 55.28 may levy an amount, not to exceed in the aggregate, $30,000 55.29 times the number of Carpenter school buses in its fleet as of 55.30 January 1, 2003, that have been determined to have potentially 55.31 defective welds and are subject to limitations imposed by the 55.32 Department of Public Safety. 55.33 Sec. 63. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 55.34 PILOT PROGRAM.] 55.35 Subdivision 1. [PILOT PROGRAM CREATED.] A three-year pilot 55.36 program is created to allow a school district to allocate 56.1 compensatory revenue received under Minnesota Statutes, section 56.2 126C.10, subdivision 3, among its school buildings according to 56.3 each building's school performance measures. 56.4 Subd. 2. [APPLICATION PROCESS.] A school district that 56.5 seeks to allocate its compensatory revenue to school sites based 56.6 on student performance may submit an application to the 56.7 commissioner of education by June 1, 2005. The application must 56.8 include a written resolution approved by the school board that: 56.9 (1) identifies the test results that will be used to assess 56.10 student performance; (2) describes the method for distribution 56.11 of compensatory revenue to the school sites; and (3) summarizes 56.12 the evaluation procedure the district will use to determine if 56.13 the redistribution of compensatory revenue improves overall 56.14 student performance. The application must be submitted in the 56.15 form and manner specified by the commissioner. 56.16 Subd. 3. [COMMISSIONER SELECTION.] The commissioner may 56.17 select up to five school districts to participate in the pilot 56.18 program. The commissioner must notify the selected school 56.19 districts by July 1, 2005. 56.20 Subd. 4. [REPORT.] The commissioner of education must 56.21 submit a report by February 15, 2008, to the education 56.22 committees of the legislature evaluating the effectiveness of 56.23 the pilot program. 56.24 [EFFECTIVE DATE.] This section is effective the day 56.25 following final enactment. 56.26 Sec. 64. [FISCAL YEAR 2006 ONLY.] 56.27 For fiscal year 2006 only, the increases in equity revenue 56.28 and operating capital revenue under Minnesota Statutes, section 56.29 126C.10, are payable entirely in state aid. 56.30 Sec. 65. [APPROPRIATIONS.] 56.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 56.32 indicated in this section are appropriated from the general fund 56.33 to the Department of Education for the fiscal years designated. 56.34 Subd. 2. [GENERAL EDUCATION AID.] For general education 56.35 aid under Minnesota Statutes, section 126C.13, subdivision 4: 56.36 $5,136,086,000 ..... 2006 57.1 $5,361,776,000 ..... 2007 57.2 The 2006 appropriation includes $784,978,000 for 2005 and 57.3 $4,351,108,000 for 2006. 57.4 The 2007 appropriation includes $814,688,000 for 2006 and 57.5 $4,547,088,000 for 2007. 57.6 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 57.7 referendum tax base replacement aid under Minnesota Statutes, 57.8 section 126C.17, subdivision 7a: 57.9 $8,704,000 ..... 2006 57.10 $8,704,000 ..... 2007 57.11 The 2006 appropriation includes $1,366,000 for 2005 and 57.12 $7,338,000 for 2006. 57.13 The 2007 appropriation includes $1,366,000 for 2006 and 57.14 $7,338,000 for 2007. 57.15 Subd. 4. [ENROLLMENT OPTIONS TRANSPORTATION.] For 57.16 transportation of pupils attending postsecondary institutions 57.17 under Minnesota Statutes, section 124D.09, or for transportation 57.18 of pupils attending nonresident districts under Minnesota 57.19 Statutes, section 124D.03: 57.20 $55,000 ..... 2006 57.21 $55,000 ..... 2007 57.22 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 57.23 Minnesota Statutes, section 127A.49: 57.24 $903,000 ..... 2006 57.25 $955,000 ..... 2007 57.26 The 2006 appropriation includes $187,000 for 2005 and 57.27 $716,000 for 2006. 57.28 The 2007 appropriation includes $133,000 for 2006 and 57.29 $822,000 for 2007. 57.30 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 57.31 consolidating under Minnesota Statutes, section 123A.485: 57.32 $253,000 ..... 2007 57.33 The 2007 appropriation includes $0 for 2006 and $253,000 57.34 for 2007. 57.35 Subd. 7. [NONPUBLIC PUPIL EDUCATION AID.] For nonpublic 57.36 pupil education aid under Minnesota Statutes, sections 123B.87 58.1 and 123B.40 to 123B.43: 58.2 $15,324,000 ..... 2006 58.3 $16,327,000 ..... 2007 58.4 The 2006 appropriation includes $2,305,000 for 2005 and 58.5 $13,019,000 for 2006. 58.6 The 2007 appropriation includes $2,424,000 for 2006 and 58.7 $13,903,000 for 2007. 58.8 Subd. 8. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 58.9 pupil transportation aid under Minnesota Statutes, section 58.10 123B.92, subdivision 9: 58.11 $21,287,000 ..... 2006 58.12 $22,670,000 ..... 2007 58.13 The 2006 appropriation includes $3,274,000 for 2005 and 58.14 $18,013,000 for 2006. 58.15 The 2007 appropriation includes $3,354,000 for 2006 and 58.16 $19,316,000 for 2007. 58.17 Subd. 9. [ONE ROOM SCHOOLHOUSE.] For a grant to 58.18 Independent School District No. 690, Warroad, to operate the 58.19 Angle Inlet School: 58.20 $50,000 ..... 2006 58.21 $50,000 ..... 2007 58.22 Subd. 10. [DECLINING PUPIL AID; ALBERT LEA.] For declining 58.23 pupil aid to Independent School District No. 241, Albert Lea: 58.24 $75,000 ..... 2006 58.25 Subd. 11. [DECLINING PUPIL AID; MESABI EAST.] For 58.26 declining pupil aid to Independent School District No. 2711, 58.27 Mesabi East: 58.28 $50,000 ..... 2006 58.29 Subd. 12. [DECLINING PUPIL AID; ROSEAU.] For declining 58.30 pupil aid to Independent School District No. 682, Roseau: 58.31 $10,000 ..... 2006 58.32 Subd. 13. [COMPENSATORY REVENUE PILOT PROJECT.] For a 58.33 grant to Independent School District No. 11, Anoka-Hennepin, for 58.34 participation in the compensatory revenue pilot program under 58.35 section 63: 58.36 $2,000,000 ..... 2006 59.1 $2,000,000 ..... 2007 59.2 This is a onetime appropriation. 59.3 Sec. 66. [REPEALER.] 59.4 Subdivision 1. [JULY 1, 2005.] Minnesota Statutes 2004, 59.5 sections 122A.415, subdivision 2; 123B.05; 123B.83, subdivision 59.6 1; and 126C.42, subdivisions 1 and 4, are repealed. 59.7 Subd. 2. [FISCAL YEAR 2007.] Minnesota Statutes 2004, 59.8 section 126C.12, is repealed for revenue for fiscal year 2007. 59.9 ARTICLE 2 59.10 EXCELLENCE IN EDUCATION 59.11 Section 1. Minnesota Statutes 2004, section 13.32, 59.12 subdivision 1, is amended to read: 59.13 Subdivision 1. [DEFINITIONS.] As used in this section: 59.14 (a) "Continuing truant" means a student under section 59.15 260A.02, subdivision 3, who is absent without valid excuse from 59.16 instruction in a school. 59.17 (b) "Educational data" means data on individuals maintained 59.18 by a public educational agency or institution or by a person 59.19 acting for the agency or institution which relates to a student. 59.20 Records of instructional personnel which are in the sole 59.21 possession of the maker thereof and are not accessible or 59.22 revealed to any other individual except a substitute teacher, 59.23 and are destroyed at the end of the school year, shall not be 59.24 deemed to be government data. 59.25 Records of a law enforcement unit of a public educational 59.26 agency or institution which are maintained apart from education 59.27 data and are maintained solely for law enforcement purposes, and 59.28 are not disclosed to individuals other than law enforcement 59.29 officials of the jurisdiction are not educational data; 59.30 provided, that education records maintained by the educational 59.31 agency or institution are not disclosed to the personnel of the 59.32 law enforcement unit. The University of Minnesota police 59.33 department is a law enforcement agency for purposes of section 59.34 13.82 and other sections of Minnesota Statutes dealing with law 59.35 enforcement records. Records of organizations providing 59.36 security services to a public educational agency or institution 60.1 must be administered consistent with section 13.861. 60.2 Records relating to a student who is employed by a public 60.3 educational agency or institution which are made and maintained 60.4 in the normal course of business, relate exclusively to the 60.5 individual in that individual's capacity as an employee, and are 60.6 not available for use for any other purpose are classified 60.7 pursuant to section 13.43. 60.8(b)(c) "Habitual truant" means a student under section 60.9 260C.007, subdivision 19, who is absent without lawful excuse 60.10 from attendance at school. 60.11 (d) "Juvenile justice system" includes criminal justice 60.12 agencies and the judiciary when involved in juvenile justice 60.13 activities. 60.14(c)(e) "Student" means an individual currently or formerly 60.15 enrolled or registered, applicants for enrollment or 60.16 registration at a public educational agency or institution, or 60.17 individuals who receive shared time educational services from a 60.18 public agency or institution. 60.19(d)(f) "Substitute teacher" means an individual who 60.20 performs on a temporary basis the duties of the individual who 60.21 made the record, but does not include an individual who 60.22 permanently succeeds to the position of the maker of the record. 60.23 [EFFECTIVE DATE.] This section is effective July 1, 2005. 60.24 Sec. 2. Minnesota Statutes 2004, section 13.32, 60.25 subdivision 8, is amended to read: 60.26 Subd. 8. [ACCESS BY JUVENILE JUSTICE SYSTEM.] (a) Upon 60.27 request, the following education data shall be disclosed under 60.28 subdivision 3, clause (i), to the juvenile justice system: a 60.29 student's full name, home address, telephone number, date of 60.30 birth; a student's school schedule, daily attendance record, and 60.31 photographs, if any; and parents' names, home addresses, and 60.32 telephone numbers. 60.33 (b) In addition, the existence of the following data about 60.34 a student may be disclosed under subdivision 3, clause (i): 60.35 (1) use of a controlled substance, alcohol, or tobacco; 60.36 (2) assaultive or threatening conduct that could result in 61.1 dismissal from school under section 121A.45, subdivision 2, 61.2 clause (b) or (c); 61.3 (3) possession or use of weapons or look-alike weapons; 61.4 (4) theft; or 61.5 (5) vandalism or other damage to property. 61.6 Any request for access to data under this paragraph must 61.7 contain an explanation of why access to the data is necessary to 61.8 serve the student. 61.9 (c) A principal or chief administrative officer of a school 61.10 who receives a request to disclose information about a student 61.11 to the juvenile justice system under paragraph (b) shall, to the 61.12 extent permitted by federal law, notify the student's parent or 61.13 guardian by certified mail of the request to disclose 61.14 information before disclosing the information. If the student's 61.15 parent or guardian notifies the principal or chief 61.16 administrative officer within ten days of receiving the 61.17 certified notice that the parent or guardian objects to the 61.18 disclosure, the principal or chief administrative officer must 61.19 not disclose the information. The principal or chief 61.20 administrative officer must inform the requesting member of the 61.21 juvenile justice system of the objection. 61.22 (d) A principal or chief administrative officer is not 61.23 required to create data under this subdivision. Information 61.24 provided in response to a data request under paragraph (b) shall 61.25 indicate only whether the data described in paragraph (b) 61.26 exist. The principal or chief administrative officer is not 61.27 authorized under paragraph (b) to disclose the actual data or 61.28 other information contained in the student's education record. 61.29 A principal or chief administrative officer is not required to 61.30 provide data that are protected by court order. A principal or 61.31 chief administrative officer must respond to a data request 61.32 within 14 days if no objection is received from the parent or 61.33 guardian. 61.34 (e) If the school board does not waive the school 61.35 attendance requirement for driving privileges, then a principal 61.36 or chief school administrator may disclose to the juvenile 62.1 justice system only the student's continuing or habitual truancy 62.2 status. 62.3 (f) Nothing in this subdivision shall limit the disclosure 62.4 of educational data pursuant to court order. 62.5(f)(g) A school district, its agents, and employees who 62.6 provide data in good faith under this subdivision are not liable 62.7 for compensatory or exemplary damages or an award of attorney 62.8 fees in an action under section 13.08, or other law, or for a 62.9 penalty under section 13.09. 62.10(g)(h) Section 13.03, subdivision 4, applies to data that 62.11 are shared under this subdivision with a government entity. If 62.12 data are shared with a member of the juvenile justice system who 62.13 is not a government entity, the person receiving the shared data 62.14 must treat the data consistent with the requirements of this 62.15 chapter applicable to a government entity. 62.16(h)(i) A member of the juvenile justice system who falsely 62.17 certifies a request for data under this section is subject to 62.18 the penalties under section 13.09. 62.19 Sec. 3. Minnesota Statutes 2004, section 120A.22, 62.20 subdivision 12, is amended to read: 62.21 Subd. 12. [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 62.22 other person having control of a child may apply to a school 62.23 district to have the child excused from attendance for the whole 62.24 or any part of the time school is in session during any school 62.25 year. Application may be made to any member of the board, a 62.26 truant officer, a principal, or the superintendent. The school 62.27 district may state in its school attendance policy that it may 62.28 ask the student's parent or legal guardian to verify in writing 62.29 the reason for the child's absence from school. The board of 62.30 the district in which the child resides may approve the 62.31 application upon the following being demonstrated to the 62.32 satisfaction of that board: 62.33 (1) that the child's bodily or mental condition is such as 62.34 to prevent attendance at school or application to study for the 62.35 period required; or, which includes: 62.36 (i) child illness, medical, dental, orthodontic, or 63.1 counseling appointments; 63.2 (ii) family emergencies; 63.3 (iii) the death or serious illness or funeral of an 63.4 immediate family member; 63.5 (iv) active duty in any military branch of the United 63.6 States; or 63.7 (v) other exemptions included in the district's school 63.8 attendance policy; 63.9 (2) thatfor the school years 1988-1989 through 1999-200063.10the child has already completed the studies ordinarily required63.11in the 10th grade and that for the school years beginning with63.12the 2000-2001 school year the child has already completed the63.13studies ordinarily required to graduatethe child has already 63.14 completed state and district standards required for graduation 63.15 from high school; or 63.16 (3) that it is the wish of the parent, guardian, or other 63.17 person having control of the child, that the child attend for a 63.18 period or periods not exceeding in the aggregate three hours in 63.19 any week, a school for religious instruction conducted and 63.20 maintained by some church, or association of churches, or any 63.21 Sunday school association incorporated under the laws of this 63.22 state, or any auxiliary thereof. This school for religious 63.23 instruction must be conducted and maintained in a place other 63.24 than a public school building, and it must not, in whole or in 63.25 part, be conducted and maintained at public expense. However, a 63.26 child may be absent from school on such days as the child 63.27 attends upon instruction according to the ordinances of some 63.28 church. 63.29 [EFFECTIVE DATE.] This section is effective July 1, 2005. 63.30 Sec. 4. [120A.23] [SCHOOL ATTENDANCE REQUIREMENT; DRIVING 63.31 PRIVILEGES.] 63.32 A district school board, board of a state approved 63.33 alternative program (SAAP), or charter school board of directors 63.34 by majority vote, may waive the school attendance requirement 63.35 for driving privileges under section 171.056 for the students it 63.36 enrolls. The board must vote to waive the requirement before 64.1 September 1 of the initial school year in which the waiver is 64.2 effective and immediately must transmit an electronic notice to 64.3 the Department of Public Safety. If a board intends to rescind 64.4 its waiver and require students to comply with the school 64.5 attendance requirement under section 171.056 for any subsequent 64.6 school year, the board must vote before September 1 of the 64.7 school year in which the waiver is initially rescinded and 64.8 immediately must transmit an electronic notice to the Department 64.9 of Public Safety. 64.10 [EFFECTIVE DATE.] This section is effective July 1, 2005. 64.11 Sec. 5. Minnesota Statutes 2004, section 120B.02, is 64.12 amended to read: 64.13 120B.02 [EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 64.14 STUDENTS.] 64.15 (a) The legislature is committed to establishing rigorous 64.16 academic standards for Minnesota's public school students. To 64.17 that end, the commissioner shall adopt in rule statewide 64.18 academic standards. The commissioner shall not prescribe in 64.19 rule or otherwise the delivery system, classroom assessments, or 64.20 form of instruction that school sites must use. For purposes of 64.21 this chapter, a school site is a separate facility, or a 64.22 separate program within a facility that a local school board 64.23 recognizes as a school site for funding purposes. 64.24 (b) All commissioner actions regarding the rule must be 64.25 premised on the following: 64.26 (1) the rule is intended to raise academic expectations for 64.27 students, teachers, and schools; 64.28 (2) any state action regarding the rule must evidence 64.29 consideration of school district autonomy; and 64.30 (3) the Department of Education, with the assistance of 64.31 school districts, must make available information about all 64.32 state initiatives related to the rule to students and parents, 64.33 teachers, and the general public in a timely format that is 64.34 appropriate, comprehensive, and readily understandable. 64.35 (c) When fully implemented, the requirements for high 64.36 school graduation in Minnesota must require students topass the65.1basic skills test requirements andsatisfactorily complete, as 65.2 determined by the school district, the course credit 65.3 requirements under section 120B.024 and: 65.4 (1) for students enrolled in grade 8 before the 2005-2006 65.5 school year, to pass the basic skills test requirements; and 65.6 (2) for students enrolled in grade 8 in the 2005-2006 65.7 school year and later, to pass the Minnesota Comprehensive 65.8 Assessments Second Edition (MCA-IIs). 65.9 (d) The commissioner shall periodically review and report 65.10 on the state's assessment process. 65.11 (e) School districts are not required to adopt specific 65.12 provisions ofthe Goals 2000 andthe federal School-to-Work 65.13 programs. 65.14 Sec. 6. Minnesota Statutes 2004, section 120B.021, is 65.15 amended by adding a subdivision to read: 65.16 Subd. 1a. [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 65.17 receiving a student's application signed by the student's parent 65.18 or guardian, a school district, area learning center, or charter 65.19 school must declare that a student meets or exceeds a specific 65.20 academic standard required for graduation under this section if 65.21 the local school board, the school board of the school district 65.22 in which the area learning center is located, or the charter 65.23 school board of directors determines that the student: 65.24 (1) is participating in a course of study including an 65.25 advanced placement course or an international baccalaureate 65.26 course or program that is consistent with state academic 65.27 standards, a learning opportunity outside the curriculum of the 65.28 district, area learning center or charter school, or an approved 65.29 preparatory program for employment or postsecondary education 65.30 that is equally or more rigorous than the corresponding state or 65.31 local academic standard required by the district, area learning 65.32 center, or charter school; 65.33 (2) would be precluded from participating in the rigorous 65.34 course of study, learning opportunity, or preparatory employment 65.35 or postsecondary education program if the student were required 65.36 to achieve the academic standard to be waived; and 66.1 (3) satisfactorily completes the requirements for the 66.2 rigorous course of study, learning opportunity, or preparatory 66.3 employment or postsecondary education program. 66.4 Consistent with the requirements of this section, the local 66.5 school board, the school board of the school district in which 66.6 the area learning center is located, or the charter school board 66.7 of directors also may formally determine other circumstances in 66.8 which to declare that a student meets or exceeds a specific 66.9 academic standard that the site requires for graduation under 66.10 this section. 66.11 (b) A student who satisfactorily completes a postsecondary 66.12 enrollment options course or program under section 124D.09 is 66.13 not required to complete other requirements of the academic 66.14 standards corresponding to that specific rigorous course of 66.15 study. 66.16 Sec. 7. Minnesota Statutes 2004, section 120B.11, 66.17 subdivision 1, is amended to read: 66.18 Subdivision 1. [DEFINITIONS.] For the purposes of this 66.19 section and section 120B.10, the following terms have the 66.20 meanings given them. 66.21 (a) "Instruction" means methods of providing learning 66.22 experiences thatenablesenable a student to meet state and 66.23 district academic standards and graduation 66.24standardsrequirements. 66.25 (b) "Curriculum" means district or school adopted programs 66.26 and written plans for providing students with learning 66.27 experiences that lead to expected knowledge,and skills, and66.28positive attitudes. 66.29 Sec. 8. Minnesota Statutes 2004, section 120B.11, 66.30 subdivision 2, is amended to read: 66.31 Subd. 2. [ADOPTING POLICIES.] (a) A school board shall 66.32adopt annually ahave in place an adopted written policy that 66.33 includes the following: 66.34 (1) district goals for instructionandincluding the use of 66.35 best practices, district and school curriculum, and achievement 66.36 for all student subgroups; 67.1 (2) a process for evaluating each student's progress toward 67.2 meetinggraduationacademic standards and identifying the 67.3 strengths and weaknesses of instruction and curriculum affecting 67.4 students' progress; 67.5 (3) a system for periodically reviewing and evaluating all 67.6 instruction and curriculum; 67.7 (4) a plan for improving instructionand, curriculum, and 67.8 student achievement; and 67.9 (5) aninstruction plan that includeseducation 67.10 effectivenessprocesses developed underplan aligned with 67.11 section 122A.625andthat integrates instruction, curriculum, 67.12 and technology. 67.13 Sec. 9. Minnesota Statutes 2004, section 120B.11, 67.14 subdivision 3, is amended to read: 67.15 Subd. 3. [INSTRUCTION AND CURRICULUMDISTRICT ADVISORY 67.16 COMMITTEE.] Each school board shall establish anInstruction and67.17Curriculumadvisory committee to ensure active community 67.18 participation in all phases of planning and improving the 67.19 instruction and curriculum affecting stategraduationand 67.20 district academic standards. A district advisory committee, to 67.21 the extent possible, shall reflect the diversity of the district 67.22 and its learning sites, and shall include teachers, parents, 67.23 support staff,pupilsstudents, and other community residents. 67.24 The district may establish building teams as subcommittees of 67.25 the district advisory committee under subdivision 4. The 67.26 district advisory committee shall recommend to the school 67.27 boarddistrictwide education standardsrigorous academic 67.28 standards, student achievement goals and measures, assessments, 67.29 and program evaluations. Learning sites may expand upon 67.30 district evaluations of instruction, curriculum, assessments, or 67.31 programs. Whenever possible, parents and other community 67.32 residents shall comprise at least two-thirds of advisory 67.33 committee members. 67.34 Sec. 10. Minnesota Statutes 2004, section 120B.11, 67.35 subdivision 4, is amended to read: 67.36 Subd. 4. [BUILDING TEAM.] A school may establish a 68.1 building team to develop and implement an education 68.2 effectiveness plan to improve instructionand, curriculum, and 68.3 student achievement. The team shall advise the board and the 68.4 advisory committee about developing an instruction and 68.5 curriculum improvement plan that aligns curriculum, assessment 68.6 of student progress in meeting stategraduationand district 68.7 academic standards, and instruction. 68.8 Sec. 11. Minnesota Statutes 2004, section 120B.11, 68.9 subdivision 5, is amended to read: 68.10 Subd. 5. [REPORT.] (a) By October 1 of each year, the 68.11 school board shall use standard statewide reporting procedures 68.12 the commissioner develops and adopt a report that includes the 68.13 following: 68.14 (1) studentperformanceachievement goals for meeting state 68.15graduationacademic standardsadopted for that year; 68.16 (2) results of local assessment data, and any additional 68.17 test data; 68.18 (3) the annual school district improvement plans including 68.19 staff development goals under section 122A.60; 68.20 (4) information about district and learning site progress 68.21 in realizing previously adopted improvement plans; and 68.22 (5) the amount and type of revenue attributed to each 68.23 education site as defined in section 123B.04. 68.24 (b) The school board shall publish the report in the local 68.25 newspaper with the largest circulation in the districtor, by 68.26 mail, or by electronic means such as the district Web site. If 68.27 electronic means are used, school districts must publish notice 68.28 of the report in a periodical of general circulation in the 68.29 district. School districts must make copies of the report 68.30 available to the public on request. The board shall make a copy 68.31 of the report available to the public for inspection. The board 68.32 shall send a copy of the report to the commissioner of education 68.33 by October 15 of each year. 68.34 (c) The title of the report shall contain the name and 68.35 number of the school district and read "Annual Report on 68.36 Curriculum, Instruction, and StudentPerformanceAchievement." 69.1 The report must include at least the following information about 69.2 advisory committee membership: 69.3 (1) the name of each committee member and the date when 69.4 that member's term expires; 69.5 (2) the method and criteria the school board uses to select 69.6 committee members; and 69.7 (3) the date by which a community resident must apply to 69.8 next serve on the committee. 69.9 Sec. 12. Minnesota Statutes 2004, section 120B.11, 69.10 subdivision 8, is amended to read: 69.11 Subd. 8. [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 69.12 least once every two years, the district report shall include an 69.13 evaluation of the district testing programs, according to the 69.14 following: 69.15 (1) written objectives of the assessment program; 69.16 (2) names of tests and grade levels tested; 69.17 (3) use of test results; and 69.18 (4)implementation of an assurance of mastery program69.19 student achievement results compared to previous years. 69.20 Sec. 13. [120B.128] [EDUCATIONAL PLANNING AND ASSESSMENT 69.21 SYSTEM (EPAS) PROGRAM.] 69.22 (a) School districts and charter schools may elect to 69.23 participate in the Educational Planning and Assessment System 69.24 (EPAS) program offered by ACT, Inc. to provide a longitudinal, 69.25 systematic approach to student educational and career planning, 69.26 assessment, instructional support, and evaluation. The EPAS 69.27 achievement tests include English, reading, mathematics, 69.28 science, and components on planning for high school and 69.29 postsecondary education, interest inventory, needs assessments, 69.30 and student education plans. These tests are linked to the ACT 69.31 assessment for college admission and allow students, parents, 69.32 teachers, and schools to determine the student's college 69.33 readiness before grades 11 and 12. 69.34 (b) The commissioner of education shall provide ACT Explore 69.35 tests for students in grade 8 and the ACT Plan test for students 69.36 in grade 10 to assess individual student academic strengths and 70.1 weaknesses, academic achievement and progress, higher order 70.2 thinking skills, and college readiness. The state shall pay the 70.3 test costs for school districts and charter schools that choose 70.4 to participate in the EPAS program. The commissioner shall 70.5 establish an application procedure and a process for state 70.6 payment of costs. 70.7 Sec. 14. Minnesota Statutes 2004, section 120B.13, 70.8 subdivision 1, is amended to read: 70.9 Subdivision 1. [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 70.10 TEACHERS.] (a) The advanced placement and international 70.11 baccalaureate programs are well-established academic programs 70.12 for mature, academically directed high school students. These 70.13 programs, in addition to providing academic rigor, offer sound 70.14 curricular design, accountability, comprehensive external 70.15 assessment, feedback to students and teachers, and the 70.16 opportunity for high school students to compete academically on 70.17 a global level. Advanced placement and international 70.18 baccalaureate programs allow students to leave high school with 70.19 the academic skills and self-confidence to succeed in college 70.20 and beyond. The advanced placement and international 70.21 baccalaureate programs help provide Minnesota students with 70.22 world-class educational opportunity. 70.23 (b) Critical to schools' educational success is ongoing 70.24 advanced placement/international baccalaureate-approved teacher 70.25 training. A secondary teacher assigned by a district to teach 70.26 an advanced placement or international baccalaureate course or 70.27 other interested educator may participate in a training program 70.28 offered by The College Board or International Baccalaureate 70.29 North America, Inc. The state may pay a portion of the tuition, 70.30 room,andboard, and out-of-state travel costs a teacher or 70.31 other interested educator incurs in participating in a training 70.32 program. The commissioner shall determine application 70.33 procedures and deadlines,andselect teachers and other 70.34 interested educators to participate in the training program, and 70.35 determine the payment process and amount of the subsidy. The 70.36 procedures determined by the commissioner shall, to the extent 71.1 possible, ensure that advanced placement and international 71.2 baccalaureate courses become available in all parts of the state 71.3 and that a variety of course offerings are available in school 71.4 districts. This subdivision does not prevent teacher or other 71.5 interested educator participation in training programs offered 71.6 by The College Board or International Baccalaureate North 71.7 America, Inc., when tuition is paid by a source other than the 71.8 state. 71.9 Sec. 15. Minnesota Statutes 2004, section 120B.13, 71.10 subdivision 3, is amended to read: 71.11 Subd. 3. [SUBSIDY FOR EXAMINATION FEES.] The state may pay 71.12 all or part of the fee for advanced placement or international 71.13 baccalaureate examinationsfor pupils of low-income families in71.14public and nonpublic schools. The commissioner shalladopt a71.15schedule for fee subsidies that may allow payment of the entire71.16fee forpay all examination fees for all public and nonpublic 71.17 students of low-income families, as defined by the commissioner, 71.18 and to the limit of the available appropriation, shall also pay 71.19 a portion or all of the examination fees for other public and 71.20 nonpublic students sitting for an advanced placement 71.21 examination, international baccalaureate examination, or both. 71.22 The commissioner shall determine procedures for state payments 71.23 of fees. 71.24 Sec. 16. Minnesota Statutes 2004, section 120B.13, is 71.25 amended by adding a subdivision to read: 71.26 Subd. 3a. [COLLEGE CREDIT.] The colleges and universities 71.27 of the Minnesota State Colleges and Universities system must 71.28 award, and the University of Minnesota and private postsecondary 71.29 institutions are encouraged to award, college credit to high 71.30 school students who receive a score of three or higher on an 71.31 advanced placement or four or higher on the international 71.32 baccalaureate program examination. 71.33 Sec. 17. [120B.131] [COLLEGE-LEVEL EXAMINATION PROGRAM 71.34 (CLEP).] 71.35 Subdivision 1. [PROGRAM STRUCTURE.] The College-Level 71.36 Examination Program (CLEP) offered by the College Board provides 72.1 students with the opportunity to demonstrate college-level 72.2 achievement and receive college credit or advanced standing 72.3 through a program of examinations in undergraduate college 72.4 courses. Schools must provide information about CLEP and the 72.5 opportunity to receive college credit from a Minnesota 72.6 postsecondary institution to students successfully completing a 72.7 college-level course. 72.8 Subd. 2. [REIMBURSEMENT FOR EXAMINATION FEES.] The state 72.9 may reimburse CLEP examination fees for a Minnesota public high 72.10 school student who has successfully completed one or more 72.11 college-level courses in high school and earned a satisfactory 72.12 score on one or more CLEP examinations in the following subjects: 72.13 composition and literature, mathematics and science, social 72.14 sciences and history, foreign languages, and business and 72.15 humanities. The state may reimburse each successful student for 72.16 up to six examination fees. The commissioner shall establish 72.17 application procedures and a process and schedule for fee 72.18 reimbursements. The commissioner must give priority to 72.19 reimburse the CLEP examination fees of students of low-income 72.20 families. 72.21 Subd. 3. [COLLEGE CREDIT.] The colleges and universities 72.22 of the Minnesota State Colleges and Universities system must 72.23 award, and the University of Minnesota and private postsecondary 72.24 institutions are encouraged to award, college credit to high 72.25 school students who receive a satisfactory score on a CLEP 72.26 examination under this section. The commissioner, in 72.27 consultation with the Minnesota State Colleges and Universities, 72.28 shall set a passing score for college credits. 72.29 Sec. 18. [120B.15] [GIFTED AND TALENTED STUDENTS 72.30 PROGRAMS.] 72.31 School districts may identify students, locally develop 72.32 programs, provide staff development, and evaluate programs to 72.33 provide gifted and talented students with challenging 72.34 educational programs. 72.35 [EFFECTIVE DATE.] This section is effective for the 72.36 2005-2006 school year. 73.1 Sec. 19. [120B.225] [CHARACTER DEVELOPMENT EDUCATION.] 73.2 Subdivision 1. [CHARACTER DEVELOPMENT EDUCATION.] The 73.3 legislature encourages districts to integrate or offer 73.4 instruction on character education including, but not limited 73.5 to, character qualities such as attentiveness, truthfulness, 73.6 respect for authority, diligence, gratefulness, self-discipline, 73.7 patience, forgiveness, respect for others, peacemaking, and 73.8 resourcefulness. Districts are not limited to, but may use 73.9 programs such as Character First and Character Counts. 73.10 Instruction should be integrated into a district's existing 73.11 programs, curriculum, or the general school environment. The 73.12 commissioner shall provide assistance at the request of a 73.13 district to develop character education curriculum and programs. 73.14 Subd. 2. [FUNDING SOURCES.] The commissioner must first 73.15 use federal funds for character development education programs 73.16 to the extent available under United States Code, title 20, 73.17 section 7247. Districts may accept funds from private and other 73.18 public sources for character development education programs 73.19 developed and implemented under this section. 73.20 [EFFECTIVE DATE.] This section is effective the day 73.21 following final enactment. 73.22 Sec. 20. Minnesota Statutes 2004, section 120B.23, is 73.23 amended to read: 73.24 120B.23 [VIOLENCE PREVENTION AND CHARACTER DEVELOPMENT 73.25 EDUCATION GRANTS.] 73.26 Subdivision 1. [GRANT PROGRAM ESTABLISHED.] The 73.27 commissioner of education, after consulting with the assistant 73.28 commissioner of the Office of Drug Policy and Violence 73.29 Prevention, shall establish a violence prevention and character 73.30 development education grant program, consistent with section 73.31 120B.255, subdivision 1, to enable a school district, an 73.32 education district, or a group of districts that cooperate for a 73.33 particular purpose to develop and implement or to continue a 73.34 violence prevention and character development program for 73.35 students in kindergarten through grade 12 that can be integrated 73.36 into existing curriculum. A district or group of districts that 74.1 elects to develop and implement or to continue a violence 74.2 prevention and character development program under section 74.3 120B.22 is eligible to apply for a grant under this section. 74.4 Subd. 2. [GRANT APPLICATION.] To be eligible to receive a 74.5 grant, a school district, an education district, a service 74.6 cooperative, or a group of districts that cooperate for a 74.7 particular purpose must submit an application to the 74.8 commissioner in the form and manner and according to the 74.9 timeline established by the commissioner. The application must 74.10 describe how the applicant will: (1) continue or integrate into 74.11 its existing K-12 curriculum or into cocurricular or 74.12 extracurricular activities a program for violence prevention 74.13that contains the program components listed in section74.14120B.22and character development; (2) collaborate with local 74.15 organizations involved in violence prevention and 74.16 intervention and character development; and (3) structure the 74.17 program to reflect the characteristics of the children, their 74.18 families and the community involved in the program. The 74.19 commissioner may require additional information from the 74.20 applicant. When reviewing the applications, the commissioner 74.21 shall determine whether the applicant has met the requirements 74.22 of this subdivision. 74.23 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 74.24 for a violence prevention and character development education 74.25 program to eligible applicants as defined in subdivision 2. 74.26 Grant amounts may not exceed $3 per resident pupil unit in the 74.27 district or group of districts in the prior school year. Grant 74.28 recipients should be geographically distributed throughout the 74.29 state. 74.30 Subd. 4. [GRANT PROCEEDS.] A successful applicant must use 74.31 the grant money to develop and implement or to continue a 74.32 violence prevention and character development program according 74.33 to the terms of the grant application. 74.34 [EFFECTIVE DATE.] This section is effective the day 74.35 following final enactment. 74.36 Sec. 21. [120B.25] [AMERICAN HERITAGE EDUCATION.] 75.1 (a) School districts shall permit grade-level instruction 75.2 to ensure students have the opportunity to read and study 75.3 America's founding documents that provide an understanding of 75.4 the principles, character, and world view of America's founders; 75.5 including documents that contributed to the foundation or 75.6 maintenance of America's representative republican form of 75.7 limited government, the Bill of Rights, our free-market economic 75.8 system, and patriotism. Districts shall permit a principal or 75.9 teacher to appropriately use, read, or post in a public school 75.10 building, classroom, or at any public school event any excerpts 75.11 or portions of the original source documents, writings, 75.12 speeches, proclamations, or records relating to the history, 75.13 heritage, or foundation of the United States or the state of 75.14 Minnesota, including, but not limited to: 75.15 (1) the Mayflower Compact; 75.16 (2) the Declaration of Independence; 75.17 (3) the Constitutions of the United States and the state of 75.18 Minnesota; 75.19 (4) the Northwest Ordinance of 1787; 75.20 (5) the Federalist Papers; 75.21 (6) the Pledge of Allegiance; 75.22 (7) the national anthem; 75.23 (8) Washington's farewell address to the nation; 75.24 (9) Lincoln's Gettysburg address; 75.25 (10) the acts and published records of Congress; and 75.26 (11) the United States Supreme Court decisions and records. 75.27 (b) Districts may not censor or restrain instruction in 75.28 American or Minnesota state history or heritage based on 75.29 religious references in original source documents, writings, 75.30 speeches, proclamations, or records described under paragraph 75.31 (a). These and any other materials must be used for educational 75.32 purposes and not to establish any religion. 75.33 (c) Students may voluntarily choose to read, write, share, 75.34 report, or otherwise study a topic which is religious in nature 75.35 provided other students are provided with the same opportunity 75.36 to freely choose a topic. 76.1 Sec. 22. Minnesota Statutes 2004, section 120B.30, 76.2 subdivision 1, is amended to read: 76.3 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 76.4 with advice from experts with appropriate technical 76.5 qualifications and experience and stakeholders, consistent with 76.6 subdivision 1a, shall include in the comprehensive assessment 76.7 system, for each grade level to be tested, state-constructed 76.8 tests developed from and aligned with the state's required 76.9 academic standards under section 120B.021 and administered 76.10 annually to all students in grades 3 through 8 and at the high 76.11 school level. A state-developed test in a subject other than 76.12 writing, developed after the 2002-2003 school year, must include 76.13 both multiple choice and constructed response questions. The 76.14 commissioner shall establish one or more months during which 76.15 schools shall administer the tests to students each school 76.16 year. For students enrolled in grade 8 before the 2005-2006 76.17 school year, only Minnesota basic skills tests in reading, 76.18 mathematics, and writing shall fulfill students' basic skills 76.19 testing requirements for a passing state notation. The passing 76.20 scores of the state tests in reading and mathematics are the 76.21 equivalent of: 76.22 (1) 70 percent correct for students entering grade 9 in 76.23 1996; and 76.24 (2) 75 percent correct for students entering grade 9 in 76.25 1997 and thereafter, as based on the first uniform test 76.26 administration of February 1998. 76.27 For students enrolled in grade 8 in the 2005-2006 school 76.28 year and later, only the Minnesota Comprehensive Assessments 76.29 Second Edition (MCA-IIs) in reading, mathematics, and writing 76.30 shall fulfill students' academic standard requirements. 76.31 (b) The third through 8th grade and high school level test 76.32 results shall be available to districts for diagnostic purposes 76.33 affecting student learning and district instruction and 76.34 curriculum, and for establishing educational accountability. 76.35 The commissioner must disseminate to the public the test results 76.36 upon receiving those results. 77.1 (c) State tests must be constructed and aligned with state 77.2 academic standards. The testing process and the order of 77.3 administration shall be determined by the commissioner. The 77.4 statewide results shall be aggregated at the site and district 77.5 level, consistent with subdivision 1a. 77.6 (d) In addition to the testing and reporting requirements 77.7 under this section, the commissioner shall include the following 77.8 components in the statewide public reporting system: 77.9 (1) uniform statewide testing of all students in grades 3 77.10 through 8 and at the high school level that provides exemptions, 77.11 only with parent or guardian approval, for those very few 77.12 students for whom the student's individual education plan team 77.13 under sections 125A.05 and 125A.06, determines that the student 77.14 is incapable of taking a statewide test, or for a limited 77.15 English proficiency student under section 124D.59, subdivision 77.16 2, if the student has been in the United States for fewer than 77.17 three years; 77.18 (2) educational indicators that can be aggregated and 77.19 compared across school districts and across time on a statewide 77.20 basis, including average daily attendance, high school 77.21 graduation rates, and high school drop-out rates by age and 77.22 grade level; 77.23 (3) students' scores on the American College Test; and 77.24 (4) state results from participation in the National 77.25 Assessment of Educational Progress so that the state can 77.26 benchmark its performance against the nation and other states, 77.27 and, where possible, against other countries, and contribute to 77.28 the national effort to monitor achievement. 77.29 (e) Districts must report exemptions under paragraph (d), 77.30 clause (1), to the commissioner consistent with a format 77.31 provided by the commissioner. 77.32 Sec. 23. Minnesota Statutes 2004, section 120B.30, 77.33 subdivision 1a, is amended to read: 77.34 Subd. 1a. [STATEWIDE AND LOCAL ASSESSMENTS; RESULTS.] (a) 77.35 The commissioner must developlanguage artsreading, 77.36 mathematics, and science assessments aligned with state academic 78.1 standards that districts and sites must use to monitor student 78.2 growth toward achieving those standards. The commissioner must 78.3 not develop statewide assessments for academic standards in 78.4 social studies, health and physical education, and the arts. 78.5 The commissioner must require: 78.6 (1) annuallanguage artsreading and mathematics 78.7 assessments in grades 3 through 8 and at the high school level 78.8 for the 2005-2006 school year and later; and 78.9 (2) annual science assessments in one grade in the grades 3 78.10 through 5 span, the grades 6 through 9 span, and a life sciences 78.11 assessment in the grades 10 through 12 span for the 2007-2008 78.12 school year and later. 78.13 (b) The commissioner must ensure that all statewide tests 78.14 administered to elementary and secondary students measure 78.15 students' academic knowledge and skills and not students' 78.16 values, attitudes, and beliefs. 78.17 (c) Reporting of assessment results must: 78.18 (1) provide timely, useful, and understandable information 78.19 on the performance of individual students, schools, school 78.20 districts, and the state; 78.21 (2) include, by the 2006-2007 school year, a value-added 78.22 component to measure student achievement growth over time; and 78.23 (3) for students enrolled in grade 8 before the 2005-2006 78.24 school year, determine whether students have met the state's 78.25 basic skills requirements; and 78.26 (4) for students enrolled in grade 8 in the 2005-2006 78.27 school year and later, determine whether students have met the 78.28 state's academic standards. 78.29 (d) Consistent with applicable federal law and subdivision 78.30 1, paragraph (d), clause (1), the commissioner must include 78.31 alternative assessments for the very few students with 78.32 disabilities for whom statewide assessments are inappropriate 78.33 and for students with limited English proficiency. 78.34 (e) A school, school district, and charter school must 78.35 administer statewide assessments under this section, as the 78.36 assessments become available, to evaluate student progress in 79.1 achieving the academic standards. If a state assessment is not 79.2 available, a school, school district, and charter school must 79.3 determine locally if a student has met the required academic 79.4 standards. A school, school district, or charter school may use 79.5 a student's performance on a statewide assessment as one of 79.6 multiple criteria to determine grade promotion or retention. A 79.7 school, school district, or charter school may use a high school 79.8 student's performance on a statewide assessment as a percentage 79.9 of the student's final grade in a course, or place a student's 79.10 assessment score on the student's transcript. 79.11 Sec. 24. [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 79.12 (a) The commissioner of education must implement a 79.13 value-added assessment program to assist school districts, 79.14 public schools, and charter schools in assessing and reporting 79.15 individual students' growth in academic achievement under 79.16 section 120B.30, subdivision 1a. The program must use 79.17 assessments of individual students' academic achievement to make 79.18 longitudinal comparisons of each student's academic growth over 79.19 time. School districts, public schools, and charter schools may 79.20 apply to the commissioner to participate in the initial trial 79.21 program using a form and in the manner the commissioner 79.22 prescribes. The commissioner must select program participants 79.23 from urban, suburban, and rural areas throughout the state. 79.24 (b) The commissioner may issue a request for proposals to 79.25 contract with an organization that provides a value-added 79.26 assessment model that reliably estimates school and school 79.27 district effects on students' academic achievement over time. 79.28 The model the commissioner selects must accommodate diverse data 79.29 and must use each student's test data across grades. Data on 79.30 individual teachers generated under the model are personnel data 79.31 under section 13.43. 79.32 (c) The contract under paragraph (b) must be consistent 79.33 with the definition of "best value" under section 16C.02, 79.34 subdivision 4. 79.35 [EFFECTIVE DATE.] This section is effective the day 79.36 following final enactment. 80.1 Sec. 25. Minnesota Statutes 2004, section 121A.03, 80.2 subdivision 1, is amended to read: 80.3 Subdivision 1. [MODEL POLICY.] The commissioner shall 80.4 maintain and make available to school boards a model sexual, 80.5 religious, and racial harassment and violence policy. The model 80.6 policy shall address the requirements of subdivision 2, and may 80.7 encourage violence prevention and character development 80.8 education programs, consistent with section 120B.225, 80.9 subdivision 1, to prevent and reduce policy violations. 80.10 [EFFECTIVE DATE.] This section is effective the day 80.11 following final enactment. 80.12 Sec. 26. Minnesota Statutes 2004, section 121A.06, 80.13 subdivision 2, is amended to read: 80.14 Subd. 2. [REPORTS; CONTENT.]By January 1, 1994, the80.15commissioner, in consultation with the criminal and juvenile80.16information policy group, shall develop a standardized form to80.17be used by schools to report incidents involving the use or80.18possession of a dangerous weapon in school zones.School 80.19 districts must electronically report to the commissioner of 80.20 education incidents involving the use or possession of a 80.21 dangerous weapon in school zones. The formshallmust include 80.22 the following information: 80.23 (1) a description of each incident, including a description 80.24 of the dangerous weapon involved in the incident; 80.25 (2) where, at what time, and under what circumstances the 80.26 incident occurred; 80.27 (3) information about the offender, other than the 80.28 offender's name, including the offender's age; whether the 80.29 offender was a student and, if so, where the offender attended 80.30 school; and whether the offender was under school expulsion or 80.31 suspension at the time of the incident; 80.32 (4) information about the victim other than the victim's 80.33 name, if any, including the victim's age; whether the victim was 80.34 a student and, if so, where the victim attended school; and if 80.35 the victim was not a student, whether the victim was employed at 80.36 the school; 81.1 (5) the cost of the incident to the school and to the 81.2 victim; and 81.3 (6) the action taken by the school administration to 81.4 respond to the incident. 81.5 The commissioneralsoshalldevelopprovide analternative81.6 electronic reporting format that allows school districts to 81.7 provide aggregate data, with an option to use computer81.8technology to report the data. 81.9 Sec. 27. Minnesota Statutes 2004, section 121A.06, 81.10 subdivision 3, is amended to read: 81.11 Subd. 3. [REPORTS; FILING REQUIREMENTS.] ByFebruary 1 and81.12 July131 of each year, each public school shall report 81.13 incidents involving the use or possession of a dangerous weapon 81.14 in school zones to the commissioner. The reports must bemade81.15on the standardized forms or using the alternative81.16formatsubmitted using the electronic reporting system developed 81.17 by the commissioner under subdivision 2. The commissioner shall 81.18 compile the information it receives from the schools and report 81.19 it annually to the commissioner of public safety, the criminal81.20and juvenile information policy group,and the legislature. 81.21 Sec. 28. [121A.24] [NOTICE REQUIREMENTS FOR STUDENT 81.22 SURVEYS AND SIMILAR INSTRUMENTS.] 81.23 (a) A school district must obtain prior written informed 81.24 consent from a parent or guardian of a minor or dependent child 81.25 before administering an academic or nonacademic student survey, 81.26 assessment, analysis, evaluation, or similar instrument that 81.27 solicits information about the student or the student's family 81.28 concerning: 81.29 (1) political affiliations or beliefs; 81.30 (2) mental or psychological problems; 81.31 (3) critical appraisals of another individual with whom a 81.32 student has a close family relationship; 81.33 (4) legally recognized privileged or analogous 81.34 relationships, such as those with a lawyer, physician, or 81.35 minister; 81.36 (5) religious practices, affiliations, or beliefs; or 82.1 (6) income or other income-related information required by 82.2 law to determine eligibility to participate in or receive 82.3 financial assistance under a program. 82.4 (b) When asking a parent or guardian to provide informed 82.5 written consent, the school district must: 82.6 (1) make a copy of the instrument readily accessible to the 82.7 parent or guardian at a convenient location and reasonable time; 82.8 and 82.9 (2) specifically identify the information in paragraph (a) 82.10 that will be solicited through the instrument. 82.11 The district must request the consent of the parent or guardian 82.12 at least 14 days before administering the instrument. 82.13 (c) A parent or guardian seeking to compel a school 82.14 district to comply with this section has available the civil 82.15 remedies under section 13.08, subdivision 4, in addition to 82.16 other remedies provided by law. 82.17 (d) A school district may administer an academic or 82.18 nonacademic student survey, assessment, analysis, evaluation, or 82.19 similar instrument that solicits information about the student 82.20 or the student's family concerning sexual behavior or attitudes 82.21 or illegal, antisocial, self-incriminating, or demeaning 82.22 behavior without obtaining prior written informed consent from 82.23 the parent or guardian of a minor or dependent child. The 82.24 instrument must not identify the student in any way and the 82.25 district must give the student's parent or guardian the 82.26 opportunity to refuse to have the instrument administered to the 82.27 student. 82.28 [EFFECTIVE DATE.] This section is effective the day 82.29 following final enactment. 82.30 Sec. 29. Minnesota Statutes 2004, section 121A.47, 82.31 subdivision 14, is amended to read: 82.32 Subd. 14. [ADMISSION OR READMISSION PLAN.] (a) A school 82.33 administrator shall prepare and enforce an admission or 82.34 readmission plan for any pupil who is excluded or expelled from 82.35 school. The plan may include measures to improve the pupil's 82.36 behavior, including completing a character education program, 83.1 consistent with section 120B.225, subdivision 1, and require 83.2 parental involvement in the admission or readmission process, 83.3 and may indicate the consequences to the pupil of not improving 83.4 the pupil's behavior. 83.5 (b) The definition of suspension under section 121A.41, 83.6 subdivision 10, does not apply to a student's dismissal from 83.7 school for one school day or less, except as provided under 83.8 federal law for a student with a disability. Each suspension 83.9 action may include a readmission plan. A readmission plan must 83.10 provide, where appropriate, alternative education services, 83.11 which must not be used to extend the student's current 83.12 suspension period. Consistent with section 125A.091, 83.13 subdivision 5, a readmission plan must not obligate a parent or 83.14 guardian to provide psychotropic drugs to their student as a 83.15 condition of readmission. School officials must not use the 83.16 refusal of a parent or guardian to consent to the administration 83.17 of psychotropic drugs to their student or to consent to a 83.18 psychiatric evaluation, screening or examination of the student 83.19 as a ground, by itself, to prohibit the student from attending 83.20 class or participating in a school-related activity, or as a 83.21 basis of a charge of child abuse, child neglect or medical or 83.22 educational neglect. 83.23 [EFFECTIVE DATE.] This section is effective the day 83.24 following final enactment. 83.25 Sec. 30. Minnesota Statutes 2004, section 121A.53, is 83.26 amended to read: 83.27 121A.53 [REPORT TO COMMISSIONER OF EDUCATION.] 83.28 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 83.29 boardshallmust report through the department electronic 83.30 reporting system each exclusion or expulsion within 30 days of 83.31 the effective date of the action to the commissioner of 83.32 education. This reportshallmust include a statement of 83.33 alternative educational services given the pupil and the reason 83.34 for, the effective date, and the duration of the exclusion or 83.35 expulsion. The report must also include the student's age, 83.36 grade, gender, race, and special education status. 84.1 Subd. 2. [REPORT.] The school board must include state 84.2 student identification numbers of affected pupils on all 84.3 dismissal reports required by the department. The department 84.4 must report annually to the commissioner summary data on the 84.5 number of dismissals by age, grade, gender, race, and special 84.6 education status of the affected pupils. All dismissal reports 84.7 must be submitted through the department electronic reporting 84.8 system. 84.9 Sec. 31. Minnesota Statutes 2004, section 121A.55, is 84.10 amended to read: 84.11 121A.55 [POLICIES TO BE ESTABLISHED.] 84.12 (a) The commissioner of education shall promulgate 84.13 guidelines to assist each school board. Each school board shall 84.14 establish uniform criteria for dismissal and adopt written 84.15 policies and rules to effectuate the purposes of sections 84.16 121A.40 to 121A.56. The policies shall emphasize preventing 84.17 dismissals through early detection of problems, using character 84.18 development or other programs, consistent with section 120B.225, 84.19 subdivision 1, and shall be designed to address students' 84.20 inappropriate behavior from recurring. The policies shall 84.21 recognize the continuing responsibility of the school for the 84.22 education of the pupil during the dismissal period. The 84.23 alternative educational services, if the pupil wishes to take 84.24 advantage of them, must be adequate to allow the pupil to make 84.25 progress towards meeting the graduation standards adopted under 84.26 section 120B.02 and help prepare the pupil for readmission. 84.27 (b) An area learning center under section 123A.05 may not 84.28 prohibit an expelled or excluded pupil from enrolling solely 84.29 because a district expelled or excluded the pupil. The board of 84.30 the area learning center may use the provisions of the Pupil 84.31 Fair Dismissal Act to exclude a pupil or to require an admission 84.32 plan. 84.33 (c) Each school district shall develop a policy and report 84.34 it to the commissioner on the appropriate use of peace officers 84.35 and crisis teams to remove students who have an individualized 84.36 education plan from school grounds. 85.1 [EFFECTIVE DATE.] This section is effective the day 85.2 following final enactment. 85.3 Sec. 32. [121A.575] [ALTERNATIVES TO PUPIL SUSPENSION.] 85.4 Notwithstanding any law to the contrary and in accordance 85.5 with sections 121A.40 to 121A.56, after a school administration 85.6 notifies a pupil of the grounds for suspension, the school 85.7 administration may, instead of imposing the suspension, do one 85.8 or more of the following: 85.9 (1) strongly encourage a parent or guardian of the pupil to 85.10 attend school with the pupil for one day; 85.11 (2) assign the pupil to attend school on Saturday as 85.12 supervised by the principal or the principal's designee; and 85.13 (3) petition the juvenile court that the student is in need 85.14 of services under chapter 260C. 85.15 Sec. 33. [121A.655] [SCHOOL ATTENDANCE REQUIREMENT; 85.16 DRIVING PRIVILEGES.] 85.17 Students enrolled in a school district, charter school, or 85.18 alternative education program that does not waive the school 85.19 attendance requirement for driving privileges are subject to 85.20 section 171.056, among other related sections. 85.21 [EFFECTIVE DATE.] This section is effective July 1, 2005. 85.22 Sec. 34. Minnesota Statutes 2004, section 122A.06, 85.23 subdivision 4, is amended to read: 85.24 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASEDEFFECTIVE 85.25 READING INSTRUCTION.]"Comprehensive, scientifically based85.26reading instruction" includes instruction and practice in85.27phonemic awareness, phonics and other word-recognition skills,85.28and guided oral reading for beginning readers, as well as85.29extensive silent reading, vocabulary instruction, instruction in85.30comprehension, and instruction that fosters understanding and85.31higher-order thinking for readers of all ages and proficiency85.32levels."Effective reading instruction" includes a program or 85.33 collection of instructional practices that is based on reliable 85.34 evidence showing that when these programs or practices are used, 85.35 students can be expected to achieve, at a minimum, satisfactory 85.36 reading progress. The program or collection of practices must 86.1 include, at a minimum, instruction in five areas of reading: 86.2 phonemic awareness, phonics, fluency, vocabulary, and text 86.3 comprehension. 86.4 Effective reading instruction also includes and integrates 86.5 instructional strategies for continuously assessing, evaluating, 86.6 and communicating the student's reading progress and needs in 86.7 order to design and implement ongoing interventions so that 86.8 students of all ages and proficiency levels can read and 86.9 comprehend text and apply higher level thinking skills. 86.10 Sec. 35. Minnesota Statutes 2004, section 122A.09, 86.11 subdivision 4, is amended to read: 86.12 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 86.13 rules to license public school teachers and interns subject to 86.14 chapter 14. 86.15 (b) The board must adopt rules requiring a person to 86.16 successfully complete a skills examination in reading, writing, 86.17 and mathematics as a requirement for initial teacher licensure. 86.18 Such rules must require college and universities offering a 86.19 board-approved teacher preparation program to provide remedial 86.20 assistance to persons who did not achieve a qualifying score on 86.21 the skills examination, including those for whom English is a 86.22 second language. 86.23 (c) The board must adopt rules to approve teacher 86.24 preparation programs. The board, upon the request of a 86.25 postsecondary student preparing for teacher licensure or a 86.26 licensed graduate of a teacher preparation program, shall assist 86.27 in resolving a dispute between the person and a postsecondary 86.28 institution providing a teacher preparation program when the 86.29 dispute involves an institution's recommendation for licensure 86.30 affecting the person or the person's credentials. At the 86.31 board's discretion, assistance may include the application of 86.32 chapter 14. 86.33 (d) The board must provide the leadership and shall adopt 86.34 rules for the redesign of teacher education programs to 86.35 implement a research based, results-oriented curriculum that 86.36 focuses on the skills teachers need in order to be effective. 87.1 The board shall implement new systems of teacher preparation 87.2 program evaluation to assure program effectiveness based on 87.3 proficiency of graduates in demonstrating attainment of program 87.4 outcomes. 87.5 (e) The board must adopt rules requiring successful 87.6 completion of an examination of general pedagogical knowledge 87.7 and examinations of licensure-specific teaching skills. The 87.8 rules shall be effective on the dates determined by the board 87.9 but not later than September 1, 2001. 87.10 (f) The board must adopt rules requiring teacher educators 87.11 to work directly with elementary or secondary school teachers in 87.12 elementary or secondary schools to obtain periodic exposure to 87.13 the elementary or secondary teaching environment. 87.14 (g) The board must grant licenses to interns and to 87.15 candidates for initial licenses. 87.16 (h) The board must design and implement an assessment 87.17 system which requires a candidate for an initial license and 87.18 first continuing license to demonstrate the abilities necessary 87.19 to perform selected, representative teaching tasks at 87.20 appropriate levels. 87.21 (i) The board must receive recommendations from local 87.22 committees as established by the board for the renewal of 87.23 teaching licenses. 87.24 (j) The board must grant life licenses to those who qualify 87.25 according to requirements established by the board, and suspend 87.26 or revoke licenses pursuant to sections 122A.20 and 214.10. The 87.27 board must not establish any expiration date for application for 87.28 life licenses. 87.29 (k) The board must adopt rules that require all licensed 87.30 teachers who are renewing their continuing license to include in 87.31 their renewal requirements further preparation in the areas of 87.32 using positive behavior interventions and in accommodating, 87.33 modifying, and adapting curricula, materials, and strategies to 87.34 appropriately meet the needs of individual students and ensure 87.35 adequate progress toward the state's graduation rule. 87.36 (l) In adopting rules to license public school teachers who 88.1 provide health-related services for disabled children, the board 88.2 shall adopt rules consistent with license or registration 88.3 requirements of the commissioner of health and the 88.4 health-related boards who license personnel who perform similar 88.5 services outside of the school. 88.6 (m) The board must adopt rules that require all licensed 88.7 teachers who are renewing their continuing license to include in 88.8 their renewal requirements further reading preparation, 88.9 consistent with section 122A.06, subdivision 4. The rules do 88.10 not take effect until they are approved by law. Teachers who do 88.11 not provide direct instruction including, at least, counselors, 88.12 school psychologists, school nurses, school social workers, 88.13 audiovisual directors and coordinators, and recreation personnel 88.14 are exempt from this section. 88.15 (n) The board must adopt rules that require all licensed 88.16 teachers who are renewing their continuing license to include in 88.17 their renewal requirements further preparation in understanding 88.18 the key warning signs of early-onset mental illness in children 88.19 and adolescents. 88.20 (o) The board must: 88.21 (1) adopt rules to license qualified candidates to teach 88.22 chemistry, physics, biology, and earth and space science; and 88.23 (2) license a science teacher qualified to teach in grades 88.24 7 through 12 to teach in a new science content area or level in 88.25 grades 7 through 12 if the teacher holds a continuing license to 88.26 teach science, has a continuing contract under section 122A.40, 88.27 subdivision 7, or section 122A.41, subdivision 4, and receives a 88.28 qualifying score on an appropriate Praxis II test in a science 88.29 subject other than the teacher's currently licensed science 88.30 field or level. A qualifying score is the same test score used 88.31 for initial licenses to teach science. A science teacher who 88.32 seeks licensure in a different science content area or level 88.33 under this paragraph is responsible for the actual costs of the 88.34 required testing. The board's authority to license science 88.35 teachers under this paragraph expires August 1, 2009. 88.36 Sec. 36. Minnesota Statutes 2004, section 122A.12, 89.1 subdivision 2, is amended to read: 89.2 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION; 89.3 REIMBURSEMENT.] (a) Membership terms, removal of members, and 89.4 the filling of membership vacancies are as provided in section 89.5 214.09. The terms of the initial board members must be 89.6 determined by lot as follows: 89.7 (1) three members must be appointed for terms that expire 89.8 August 1, 2002; 89.9 (2) three members must be appointed for terms that expire 89.10 August 1, 2003; and 89.11 (3) four members must be appointed for terms that expire 89.12 August 1, 2004. 89.13 Members shall not receive the daily payment under section 89.14 214.09, subdivision 3. The public employer of a member shall 89.15 not reduce the member's compensation or benefits for the 89.16 member's absence from employment when engaging in the business 89.17 of the board. The provision of staff, administrative services, 89.18 and office space; the review and processing of complaints; the 89.19 setting of fees; the selection and duties of an executive 89.20 secretary to serve the board; and other provisions relating to 89.21 board operations are as provided in chapter 214. Fiscal year 89.22 and reporting requirements are as provided in sections 214.07 89.23 and 214.08. 89.24 (b) The board may reimburse local school districts for the 89.25 cost of a substitute teacher employed when a regular teacher is 89.26 providing professional assistance to the state by serving on the 89.27 board or on a committee or task force appointed by the board. 89.28 Sec. 37. Minnesota Statutes 2004, section 122A.18, 89.29 subdivision 2a, is amended to read: 89.30 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 89.31 universities approved by the Board of Teaching to prepare 89.32 persons for classroom teacher licensure must include in their 89.33 teacher preparation programsreading best practices that enable89.34classroom teacher licensure candidates to know how to teach89.35reading, such as phonics or otherresearch-based best practices 89.36 in reading, consistent with section 122A.06, subdivision 4, that 90.1 enable the licensure candidate to know how to teach reading in 90.2 the candidate's content areas. 90.3 (b) Board-approved teacher preparation programs for 90.4 teachers of elementary education must require instruction in the 90.5 application of comprehensive, scientifically based, and balanced 90.6 reading instruction programs.that: 90.7 (1) teach students to read using foundational knowledge, 90.8 practices, and strategies consistent with section 122A.06, 90.9 subdivision 4, so that all students will achieve continuous 90.10 progress in reading; and 90.11 (2) teach specialized instruction in reading strategies, 90.12 interventions, and remediations that enable students of all ages 90.13 and proficiency levels to become proficient readers. 90.14 Sec. 38. Minnesota Statutes 2004, section 122A.41, 90.15 subdivision 14, is amended to read: 90.16 Subd. 14. [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 90.17 OF PUPILS; PREFERENCE GIVEN.] (a) A teacher whose services are 90.18 terminated on account of discontinuance of position or lack of 90.19 pupils must receive first consideration for other positions in 90.20 the district for which that teacher is qualified. In the event 90.21 it becomes necessary to discontinue one or more positions, in 90.22 making such discontinuance, teachers must be discontinued in any 90.23 department in the inverse order in which they were employed, 90.24 unless a board and the exclusive representative of teachers in 90.25 the district negotiate a plan providing otherwise. 90.26 (b) Notwithstanding the provisions of clause (a), a teacher 90.27 is not entitled to exercise any seniority when that exercise 90.28 results in that teacher being retained by the district in a 90.29 field for which the teacher holds only a provisional license, as 90.30 defined by the Board of Teaching, unless that exercise of 90.31 seniority results in the termination of services, on account of 90.32 discontinuance of position or lack of pupils, of another teacher 90.33 who also holds a provisional license in the same field. The 90.34 provisions of this clause do not apply to vocational education 90.35 licenses. 90.36 (c) Notwithstanding the provisions of clause (a), a teacher 91.1 must not be reinstated to a position in a field in which the 91.2 teacher holds only a provisional license, other than a 91.3 vocational education license, while another teacher who holds a 91.4 nonprovisional license in the same field is available for 91.5 reinstatement. 91.6 Sec. 39. Minnesota Statutes 2004, section 122A.414, is 91.7 amended to read: 91.8 122A.414 [ALTERNATIVE TEACHERCOMPENSATIONPAY.] 91.9 Subdivision 1. [RESTRUCTURED PAY SYSTEM.] A restructured 91.10 teachercompensationprofessional pay system is established 91.11 under subdivision 2 to provide incentives for teachers to 91.12 improve their knowledge and skills and for school districts and 91.13 charter schools to recruit and retain highly qualified teachers, 91.14 and to support teachers' roles in improving students' 91.15 educational achievement. 91.16 Subd. 2. [ALTERNATIVE TEACHER PROFESSIONAL PAY SYSTEM.] 91.17 (a) To participate in this program, a school district, school 91.18 site, or charter school must have an educational improvement 91.19 planasdescribed in section 122A.413 and an alternative teacher 91.20 professional pay systemasdescribed in paragraph (b). 91.21 (b) The alternative teacher professional pay system must: 91.22 (1) describethe conditions necessary forhow teachers can 91.23 achieve career advancement and additional compensation; 91.24 (2) describe how the school district, school site, or 91.25 charter school will provide teachers with career advancement 91.26 optionsfor teachers retaining, such as master or mentor teacher 91.27 positions that allow teachers to retain primary roles in student 91.28 instruction and facilitate job-embedded professional development 91.29 that helps other teachers improve their skills; 91.30 (3)use a professional pay system that replaces the step91.31and lane salary schedule and is not based on years of service;91.32(4) encourage teachers' continuous improvement in content91.33knowledge, pedagogy, and use of best practices; and91.34(5) implement an objective evaluation system, including91.35classroom observation, that is aligned with the district's or91.36the site's educational improvement plan as described in section92.1122A.413eliminate the "steps and lanes" salary schedule and 92.2 compensate teachers for performing satisfactory service, 92.3 achieving professional teaching goals, and undergoing 92.4 evaluations under clause (6); 92.5 (4) compensate teachers for their performance based on, at 92.6 a minimum: 92.7 (i) schoolwide achievement gains under section 120B.35 or 92.8 locally selected standardized assessment outcomes, or both; 92.9 (ii) individual student achievement gains, where available, 92.10 under section 120B.35 or locally selected standardized 92.11 assessment outcomes, or both; and 92.12 (iii) results of individual teacher evaluations conducted 92.13 by a locally selected and trained evaluation team under clause 92.14 (6); 92.15 (5) provide integrated ongoing site-based professional 92.16 development activities that are aligned with student needs under 92.17 sections 122A.413 and 122A.60, if enacted, and led during the 92.18 school day by trained teacher leaders such as master or mentor 92.19 teachers; and 92.20 (6) provide an objective and comprehensive teacher 92.21 evaluation that is aligned with the educational improvement plan 92.22 under section 122A.413 and the staff development plan under 92.23 section 122A.601, if enacted, and that includes multiple 92.24 evaluations of a teacher's performance during the school year 92.25 conducted by the locally selected and trained evaluation team 92.26 that are based on best practice teaching standards and 92.27 instruction and on classroom observations. 92.28 Subd. 3. [REPORT.] Participating districtsand, school 92.29 sites, and charter schools must report on the implementation and 92.30 effectiveness of the alternative teachercompensation92.31planprofessional pay system, particularly addressing each 92.32 requirement under subdivision 2 and make biennial 92.33 recommendations by January 1 to their school boards. The school 92.34boardsboard shall transmit a copy of the report with a summary 92.35 of the findings and recommendations oftheirthe district, 92.36 school site, or charter school to the commissioner. 93.1 Sec. 40. Minnesota Statutes 2004, section 122A.415, 93.2 subdivision 1, is amended to read: 93.3 Subdivision 1. [AIDREVENUE AMOUNT.] (a) A school district 93.4 , school site, or charter school that meets the conditions of 93.5 section 122A.414 and submits an application approved by the 93.6 commissioner is eligible for alternative compensationaid93.7 revenue. 93.8 (b) For school district applications, the commissioner must 93.9 consider only those applications to participate that are 93.10 submitted jointly by a school district and the exclusive 93.11 representative of the teachersfor participation in the93.12program. The application must contain a formally adopted 93.13 collective bargaining agreement, memorandum of understanding, or 93.14 other binding agreement that: 93.15 (1) implements an alternative teacher professional pay 93.16 system consistent with section 122A.414; 93.17 (2) complies with the Public Employment Labor Relations Act 93.18 under chapter 179A, except that notwithstanding section 179A.20, 93.19 subdivision 3, a district may enter into a contract for a term 93.20 of between two and four years; and 93.21 (3) includes all teachers in a district,or all teachers at 93.22 a school site, or at least 25 percent of the teachers in a93.23district. The commissioner, in approving applications, may give93.24preference to applications involving entire districts or sites93.25or to applications that align measures of teacher performance93.26with student academic achievement and progress under section93.27120B.35, subdivision 1. 93.28 Alternative teacher compensationaidrevenue for a 93.29 qualifying school district,or site, or portion of a district or93.30school site is as follows:93.31(1) for a school districtin which the school board and the 93.32 exclusive representative of the teachers agree to place all 93.33 teachers in the district or at the site on the 93.34 alternativecompensation schedule, alternative compensation aid93.35 teacher professional pay system equals$150$260 times the 93.36 district's or the site's number of pupils enrolled on October 1 94.1 of the previous fiscal year; or94.2(2) for a district in which the school board and the94.3exclusive representative of the teachers agree that at least 2594.4percent of the district's licensed teachers will be paid on the94.5alternative compensation schedule, alternative compensation aid94.6equals $150 times the percentage of participating teachers times94.7the district's number of pupils enrolled as of October 1 of the94.8previous fiscal year. 94.9 (c) For charter school applications, the board of directors 94.10 of a charter school that satisfies the conditions under section 94.11 122A.414 must submit to the commissioner an application that 94.12 contains: 94.13 (1) an agreement to implement an alternative teacher 94.14 professional pay system under section 122A.414; 94.15 (2) a resolution by the charter school board of directors 94.16 adopting the agreement; and 94.17 (3) the record of a formal vote by the teachers employed at 94.18 the charter school indicating that at least 70 percent of all 94.19 teachers agree to implement the alternative teacher professional 94.20 pay system, unless the charter school submits an alternative 94.21 teacher professional pay system under section 122A.414 before 94.22 the first year of operation. 94.23 Alternative compensation revenue for a qualifying charter 94.24 school must be calculated under section 126C.10, subdivision 34, 94.25 paragraphs (a) and (b). 94.26(b)(d) The revenue is available only to school districts, 94.27 school sites, and charter schools that implement an alternative 94.28 teacher professional pay system before the school year begins. 94.29 Sec. 41. Minnesota Statutes 2004, section 122A.415, 94.30 subdivision 3, is amended to read: 94.31 Subd. 3. [AIDREVENUE TIMING.] (a) Districtsor, school 94.32 sites, or charter schools with approved applications must 94.33 receive alternative compensationaidrevenue for each school 94.34 year that the districtor, school site, or charter school 94.35 participates in the programas described inunder this 94.36 subdivision. Districtsor, school sites, or charter schools 95.1 with applicationsreceivedapproved by the commissionerbefore95.2June 1 of the first year of a two-year contractshall receive 95.3 alternative compensationaidrevenue forbothschool yearsof95.4the contract. Districts or sites with applications received by95.5the commissioner after June 1 of the first year of a two-year95.6contract shall receive alternative compensation aid only for the95.7second year of the contractin which the alternative teacher 95.8 professional pay system is implemented for the full school 95.9 year. For fiscal year 2007 and later, a qualifying districtor, 95.10 school site, or charter school that received alternative 95.11 compensation aid for the previous fiscal year must receive at 95.12 least an amount of alternative teacher compensation revenue 95.13 equal to the lesser of the amount it received for the previous 95.14 fiscal year orits proportionate share of the previous year's95.15appropriationthe amount it qualifies for under subdivision 1 95.16 for the current fiscal year if the districtor, school site, or 95.17 charter school submits a timely application and the commissioner 95.18 determines that the districtor, school site, or charter school 95.19 continues to implement an alternative teacher professional pay 95.20 system, consistent with its application under this section.The95.21commissioner must approve initial applications for school95.22districts qualifying under subdivision 1, paragraph (b), clause95.23(1), by January 15 of each year. If any money remains, the95.24commissioner must approve aid amounts for school districts95.25qualifying under subdivision 1, paragraph (b), clause (2), by95.26February 15 of each year.95.27 (b) The commissioner may sort applications by geographic 95.28 region and shall approve applications that comply with sections 95.29 122A.414, subdivision 2, paragraph (b), and 122A.415, 95.30 subdivision 1, in the order in which they are received from each 95.31 region, select applicants that qualify for this program, notify 95.32 school districtsand, school sites, and charter schools about 95.33 the program, develop and disseminate application materials, and 95.34 carry out other activities needed to implement this section. 95.35 [EFFECTIVE DATE.] This section is effective August 1, 2005. 95.36 Sec. 42. Minnesota Statutes 2004, section 123A.06, 96.1 subdivision 1, is amended to read: 96.2 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 96.3 services of a center must focus on academic and learning skills, 96.4 applied learning opportunities, trade and vocational skills, 96.5 work-based learning opportunities, work experience, youth 96.6 service to the community, transition services, and English 96.7 language and literacy programs for children whose primary 96.8 language is a language other than English, and may focus on 96.9 character development, consistent with section 120B.225, 96.10 subdivision 1. Applied learning, work-based learning, and 96.11 service learning may best be developed in collaboration with a 96.12 local education and transitions partnership, culturally based 96.13 organizations, mutual assistance associations, or other 96.14 community resources. In addition to offering programs, the 96.15 center shall coordinate the use of other available educational 96.16 services, special education services, social services, health 96.17 services, and postsecondary institutions in the community and 96.18 services area. 96.19 (b) Consistent with the requirements of sections 121A.40 to 96.20 121A.56, a school district may provide an alternative education 96.21 program for a student who is within the compulsory attendance 96.22 age under section 120A.20, and who is involved in severe or 96.23 repeated disciplinary action. 96.24 [EFFECTIVE DATE.] This section is effective the day 96.25 following final enactment. 96.26 Sec. 43. [123A.10] [EDUCATION ADMINISTRATIVE DISTRICTS.] 96.27 Subdivision 1. [ADMINISTRATIVE EFFICIENCY.] An education 96.28 administrative district is intended to increase the efficiency 96.29 of administrative services for kindergarten through grade 12 96.30 public schools by combining the administrative functions of 96.31 multiple school districts while preserving independent school 96.32 district control of individual school sites. 96.33 Subd. 2. [AGREEMENT TO ESTABLISH EDUCATION ADMINISTRATIVE 96.34 DISTRICT.] School boards that meet the requirements of 96.35 subdivision 3 may enter into a written agreement to establish an 96.36 education administrative district. The agreement must include 97.1 methods to improve the efficient delivery of administrative 97.2 services. A majority of the full board of each member district 97.3 that is a party to the agreement must adopt the agreement and 97.4 any subsequent modifications of the agreement. 97.5 Subd. 3. [COMMISSIONER REVIEW AND COMMENT.] Before 97.6 entering into an agreement to establish an education 97.7 administrative district, the school boards of the proposed 97.8 member districts jointly must submit the proposed agreement to 97.9 the commissioner for review and comment. The commissioner must 97.10 submit a review and comment on the educational and economic 97.11 advisability of the proposed agreement to the affected school 97.12 boards within 60 days of receiving the proposal. If the 97.13 commissioner submits a negative review and comment, the 97.14 districts do not qualify for levy authority under section 97.15 123A.12, subdivision 5. 97.16 Subd. 4. [NOTICE AND PUBLIC HEARING ON PROPOSED 97.17 AGREEMENT.] Before entering into an agreement to establish an 97.18 education administrative district, the school boards of the 97.19 proposed member districts each must publish the commissioner's 97.20 review and comment and a summary of the proposed agreement and 97.21 its anticipated effect upon the district at least once in a 97.22 newspaper of general circulation in the district. The board 97.23 must conduct a public hearing on the proposed agreement not more 97.24 than ten days after the notice is published and at least 30 days 97.25 before entering into the agreement. 97.26 [EFFECTIVE DATE.] This section is effective for the 97.27 2005-2006 school year and later. 97.28 Sec. 44. [123A.11] [EDUCATION ADMINISTRATIVE DISTRICT 97.29 BOARD.] 97.30 Subdivision 1. [SCHOOL DISTRICT REPRESENTATION.] The 97.31 education administrative district board is composed of at least 97.32 one representative appointed by the school board of each member 97.33 district. Each representative must be a member of the 97.34 appointing school board. Each representative serves at the 97.35 pleasure of the appointing board and may be recalled by a 97.36 majority vote of the appointing board. Each representative 98.1 serves for the term specified in the agreement. The board must 98.2 select its officers from among its members and determine the 98.3 officers' terms. The board must adopt bylaws for conducting 98.4 business. The board may conduct public meetings using 98.5 interactive television if it complies with chapter 13 in each 98.6 location where board members are present. 98.7 Subd. 2. [PROVIDING ADMINISTRATIVE SERVICES.] An education 98.8 administrative district board must implement the agreement for 98.9 efficiently delivering needed administrative services under 98.10 section 123A.12 to the education administrative district. 98.11 Subd. 3. [PERSONNEL.] The board may employ personnel 98.12 needed to provide administrative services to the education 98.13 administrative district. Personnel employed by the education 98.14 administrative district are eligible to participate in 98.15 retirement programs. Notwithstanding section 123B.143, 98.16 subdivision 1, a district member of an education administrative 98.17 district must contract with the education administrative 98.18 district to obtain superintendent services. The person 98.19 providing superintendent services need not be an employee of the 98.20 education administrative district or a member district at the 98.21 time the person contracts to provide superintendent services. 98.22 Subd. 4. [CONTRACTS.] The education administrative 98.23 district board may contract with school districts and other 98.24 public and private agencies to provide needed administrative 98.25 services in the education administrative district. 98.26 Subd. 5. [GENERAL LAW.] The education administrative 98.27 district board is governed by section 471.59 unless specifically 98.28 provided otherwise under sections 123A.10 to 123A.12. 98.29 Subd. 6. [ANNUAL REPORT.] After each of its first five 98.30 years of operation, the education administrative district board 98.31 must submit an annual report to its member districts and the 98.32 commissioner about the education administrative district's 98.33 activities, including an analysis of its administrative costs 98.34 and efficiencies. 98.35 [EFFECTIVE DATE.] This section is effective for the 98.36 2005-2006 school year and later. 99.1 Sec. 45. [123A.12] [EDUCATION ADMINISTRATIVE DISTRICT 99.2 AGREEMENT.] 99.3 Subdivision 1. [IMPLEMENTATION; REVIEW.] An education 99.4 administrative district board must implement the agreement of 99.5 its member districts under section 123A.10, subdivision 2, to 99.6 provide efficient administrative services to the education 99.7 administrative district. The board must review the agreement 99.8 annually and propose needed modifications to its member 99.9 districts. 99.10 Subd. 2. [ADMINISTRATIVE SERVICES.] (a) Consistent with 99.11 section 123B.143, subdivision 1, the agreement must allow the 99.12 education administrative district board within 24 months of 99.13 implementing the agreement to select one superintendent to serve 99.14 the education administrative district for a specified term. 99.15 (b) The agreement must specify other administrative 99.16 efficiencies the education administrative district intends to 99.17 provide to member districts, including, among other 99.18 efficiencies, administrative functions related to, business 99.19 management, human resources, payroll, food service, buildings 99.20 and ground maintenance, pupil transportation, technology 99.21 coordination, curriculum coordination, community education, 99.22 nursing services, student records, student administrative 99.23 services, and school building administration. All 99.24 administrative efficiencies implemented by the education 99.25 administrative district under the agreement in this section must 99.26 be in compliance with employee collective bargaining agreements 99.27 in effect in each member school district. 99.28 Subd. 3. [TIMING AND DURATION.] (a) The initial agreement 99.29 must contain a timeline for implementing the agreement. 99.30 (b) The initial agreement must be for a period of at least 99.31 three years. After completing the first two years, the 99.32 agreement may be extended by a majority vote of the full board 99.33 of each member district. 99.34 Subd. 4. [FINANCES.] The initial agreement must: 99.35 (1) include a three-year budget projection comparing 99.36 existing administrative services and costs with proposed 100.1 administrative services and costs for each year; 100.2 (2) specify the retirement and severance incentives, 100.3 consistent with section 123A.48, subdivision 23, that may be 100.4 offered to licensed and nonlicensed staff, and how these costs 100.5 will be apportioned among member districts; 100.6 (3) specify other start-up costs for the education 100.7 administrative district and how these costs will be apportioned 100.8 among member districts; 100.9 (4) specify the estimated amounts each member district will 100.10 levy under subdivision 5 for the specified costs in clauses (2) 100.11 and (3); and 100.12 (5) specify an equitable distribution formula for the 100.13 education administrative district board to assess and certify a 100.14 proportionate share of expenses to member districts, which must 100.15 remit their assessment to the education administrative district 100.16 board within 30 days of receiving the certified assessment. 100.17 Subd. 5. [LEVY.] A school district that is a member of an 100.18 education administrative district may levy an amount equal to 100.19 the member district's share of costs approved by the 100.20 commissioner for retirement and severance incentives and other 100.21 start-up costs included in the initial agreement under 100.22 subdivision 4, clauses (2) and (3), over a term of not more than 100.23 36 months. 100.24 Subd. 6. [REPORTS TO EDUCATION DEPARTMENT.] Member school 100.25 districts jointly may submit reports and provide required 100.26 information to the department. The joint reports clearly must 100.27 attribute information, including expenditures for the education 100.28 administrative district, to individual member districts. 100.29 Subd. 7. [ADDITIONAL AND WITHDRAWING DISTRICTS.] (a) Upon 100.30 approval by a majority vote of a district school board and the 100.31 education administrative district board, an adjoining school 100.32 district may become a member of an education administrative 100.33 district and is governed by this section and the education 100.34 administrative district agreement in effect. A noncontiguous 100.35 district may become a member with the commissioner's approval 100.36 based on the criteria under section 123A.10, subdivision 3. A 101.1 new member added to an education administrative district may 101.2 levy for approved retirement and severance incentive costs under 101.3 subdivision 5. 101.4 (b) After three consecutive years of membership, a member 101.5 district, by majority vote of its full board and after complying 101.6 with the applicable terms in the education administrative 101.7 district agreement, may withdraw from the education 101.8 administrative district and the agreement at the end of the 101.9 subsequent fiscal year. 101.10 Subd. 8. [DISSOLUTION.] After the first three years of the 101.11 education administrative district, the boards of each member 101.12 district may agree to dissolve the education administrative 101.13 district at the end of any fiscal year or at an earlier, 101.14 mutually agreeable time. Member districts must dissolve the 101.15 education administrative district according to the applicable 101.16 provisions in the agreement establishing the education 101.17 administrative district. The dissolution must not affect the 101.18 continuing liability of any district formerly a member of the 101.19 education administrative district for continuing obligations, 101.20 including employment benefits. 101.21 [EFFECTIVE DATE.] This section is effective for the 101.22 2005-2006 school year and later. 101.23 Sec. 46. Minnesota Statutes 2004, section 123A.24, 101.24 subdivision 2, is amended to read: 101.25 Subd. 2. [COOPERATIVE UNIT DEFINED.] For the purposes of 101.26 this section, a cooperative unit is: 101.27 (1) an education district organized under sections 123A.15 101.28 to 123A.19; 101.29 (2) a cooperative vocational center organized under section 101.30 123A.22; 101.31 (3) an intermediate district organized under chapter 136D; 101.32 (4) an education administrative district organized under 101.33 sections 123A.10 to 123A.12; 101.34 (5) a service cooperative organized under section 123A.21; 101.35 or 101.36(5)(6) a regional management information center organized 102.1 under section 123A.23 or as a joint powers district according to 102.2 section 471.59. 102.3 Sec. 47. Minnesota Statutes 2004, section 123B.02, is 102.4 amended by adding a subdivision to read: 102.5 Subd. 22. [REWARD.] A school board, after formally 102.6 adopting a policy consistent with this subdivision, may offer a 102.7 reward to a person who provides accurate and reliable 102.8 information leading to the conviction of a person who has 102.9 committed, attempted to commit, or conspired to commit a crime 102.10 against students or school employees, volunteers or board 102.11 members as a result of their affiliation with the school 102.12 district, or against school district property. 102.13 [EFFECTIVE DATE.] This section is effective the day 102.14 following final enactment. 102.15 Sec. 48. [123B.022] [PROHIBITING SCHOOL EMPLOYEES FROM 102.16 USING PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND 102.17 CURRENT FACTUAL INFORMATION.] 102.18 (a) A school board must adopt and implement a districtwide 102.19 policy that prohibits district employees from using district 102.20 funds or other publicly funded district resources, including 102.21 time, materials, equipment, facilities, and communication 102.22 technologies, among other resources, to advocate for electing or 102.23 defeating a candidate, passing or defeating a ballot question, 102.24 or passing or defeating pending legislation. The policy must 102.25 apply when the employee performs the duties assigned to the 102.26 employee under the employee's employment contract with the 102.27 district, and includes the periods when the employee represents 102.28 the district in an official capacity, among other duties. The 102.29 policy must not apply when an employee disseminates factual 102.30 information consistent with the employee's contractual duties. 102.31 (b) The school board must provide the district's electorate 102.32 with timely factual information about a pending ballot question. 102.33 [EFFECTIVE DATE.] This section is effective January 1, 2006. 102.34 Sec. 49. [123B.042] [SCHOOL SITE GOVERNANCE PROGRAM.] 102.35 Subdivision 1. [ESTABLISHMENT.] A school site governance 102.36 program is established to provide schools with more authority 103.1 and flexibility to teach and provide services to students at the 103.2 school site. Nothing in this section affects a school 103.3 district's ability to enter into a school site decision-making 103.4 agreement under section 123B.04. 103.5 Subd. 2. [SITE DECISION-MAKING TEAM.] (a) To participate 103.6 in the program, a school must form a site decision-making team 103.7 that includes a school principal or other persons having general 103.8 control and supervision of the school, at least one teacher in 103.9 the school, one noninstructional staff person in the school, and 103.10 at least one parent of a student enrolled in the school or other 103.11 community member. By October 1 of the school year before 103.12 participating in the program, the school site decision-making 103.13 team must: 103.14 (1) be approved by a 60 percent vote of employees in the 103.15 school; 103.16 (2) adopt a policy describing how it will delegate 103.17 authority and responsibilities among its members; and 103.18 (3) notify the school board of its intent to participate in 103.19 the program. 103.20 (b) After notifying the school board under paragraph (a), 103.21 clause (3), the school site decision-making team shall publish a 103.22 notice in a newspaper of general circulation in the district of 103.23 its intent to participate in the program and the date it will 103.24 hold a public hearing about its intended participation. In 103.25 addition to holding the public hearing, the decision-making 103.26 team, for a period of 30 days, must also solicit parent and 103.27 community input regarding its intended participation. 103.28 (c) By January 15, the decision-making team shall 103.29 demonstrate to the school board how the team's plan responds to 103.30 public comment. 103.31 Subd. 3. [RESPONSIBILITIES; REVENUE.] (a) A school site 103.32 decision-making team participating in this program: 103.33 (1) has the control and responsibilities of the school 103.34 board for operating and managing the site after the agreement 103.35 under paragraph (b) is signed, including such responsibilities 103.36 as instructional practices, personnel selection from within the 104.1 district, and staffing assignments for the school; and 104.2 (2) retains control of the revenue and determines its use 104.3 as necessary to operate the school for the school years it 104.4 participates in the program under this section. 104.5 (b) By January 15 of the school year before participating 104.6 in the program, the school site decision-making team must enter 104.7 into a written agreement with the local school board describing 104.8 the control and responsibilities of the decision-making team and 104.9 of the school board. Revenue for a fiscal year received or 104.10 receivable by the district and that the district would expend 104.11 for the particular school site participating in the program is 104.12 allocated to that school site. All other district revenue not 104.13 reserved for other purposes must be proportionately allocated to 104.14 the site based on the site's pupil count. The agreement must 104.15 include provisions describing how the decision-making team and 104.16 school board will resolve disputes over assigned authority and 104.17 responsibilities. The school board members must vote whether to 104.18 authorize the agreement under this paragraph according to 104.19 section 123B.09, subdivision 6. The decision of the school 104.20 board is final. If the school board does not authorize the 104.21 agreement, the school board must publish its decision and 104.22 reasons in a newspaper of general circulation in the district. 104.23 (c) The district must maintain an account for each school 104.24 site participating in the program. 104.25 (d) The school site decision-making team must comply with 104.26 section 13D.04, subdivision 1. 104.27 Subd. 4. [EMPLOYEES.] The employees of the school site 104.28 remain employees of the school district for salary, benefits, 104.29 seniority, retirement, and other personnel issues. Consistent 104.30 with current law and the collective bargaining agreement in 104.31 effect, the school site decision-making team selects employees 104.32 from within the district into licensed and nonlicensed positions 104.33 at the school site, including the position of principal or other 104.34 person having general control and supervision of the school. 104.35 When negotiating a new contract under chapter 179A, an exclusive 104.36 representative and school board must provide for the employees 105.1 of a school site participating in the program under this section. 105.2 Subd. 5. [PERFORMANCE AGREEMENTS.] By March 15 of the 105.3 school year before participating in the program, the school site 105.4 decision-making team shall enter into a performance agreement 105.5 with the school board. The agreement shall include: 105.6 (1) the previous year's baseline information at the site 105.7 regarding student achievement based on: 105.8 (i) aggregated and disaggregated statewide testing data; 105.9 (ii) other nationally normed standardized tests; 105.10 (iii) student attendance; and 105.11 (iv) dropout rates and graduation rates, where applicable; 105.12 (2) the expected levels of improvement in selected areas of 105.13 student performance during the next year; 105.14 (3) how student performance will be measured, including 105.15 assessment procedures required by law and rule; 105.16 (4) status of the school's revenues and expenditures; 105.17 (5) other performance expectations and measures agreed upon 105.18 by the school site and school board; 105.19 (6) the frequency of reporting by the school site to the 105.20 school board; and 105.21 (7) how the performance results will be made available to 105.22 parents and the public. 105.23 The term of an agreement shall be for no more than two 105.24 years. 105.25 The performance agreement must include provisions 105.26 describing how the school board and school site decision-making 105.27 team will resolve disputes over the school's compliance with 105.28 provisions of the agreement. 105.29 If the school site decision-making team and school board 105.30 cannot agree on the provisions of a performance agreement as 105.31 required under this subdivision, either party may request 105.32 assistance from the commissioner of education. The commissioner 105.33 shall provide assistance to the parties to ensure they reach an 105.34 agreement. 105.35 Subd. 6. [TERMINATION OF SITE-BASED PROGRAM AUTHORITY.] If 105.36 a school site fails to meet the agreed upon expectations as 106.1 specified in the performance agreement with the school board for 106.2 two consecutive school years, its authority to participate in 106.3 the program is terminated. 106.4 School sites that have had their authority to participate 106.5 in this program terminated under this subdivision may not 106.6 participate in this program for three years after termination. 106.7 Subd. 7. [REPORTS.] A school site decision-making team 106.8 shall, and its respective school board may, make an annual 106.9 report to the commissioner of education by September 1. The 106.10 reports shall be consistent with the requirements of section 106.11 120B.11, subdivision 5, paragraph (a). 106.12 Subd. 8. [COMMISSIONER'S DUTY.] The commissioner of 106.13 education shall evaluate the effectiveness of the program by 106.14 January 1, 2010. 106.15 Sec. 50. Minnesota Statutes 2004, section 123B.09, 106.16 subdivision 8, is amended to read: 106.17 Subd. 8. [DUTIES.] The board must superintend and manage 106.18 the schools of the district; adopt rules for their organization, 106.19 government, and instruction; keep registers; and prescribe 106.20 textbooks and courses of study. The board may enter into an 106.21 agreement with a postsecondary institution for secondary or 106.22 postsecondary nonsectarian courses to be taught at a secondary 106.23 school, nonsectarian postsecondary institution, or another 106.24 location. The board must not enter into an agreement that 106.25 limits its authority to assign and reassign teachers or 106.26 administrators to the schools in which the teachers will teach 106.27 or the administrators will administer. 106.28 [EFFECTIVE DATE.] This section is effective for agreements 106.29 entered into on or after July 1, 2005. 106.30 Sec. 51. Minnesota Statutes 2004, section 123B.143, 106.31 subdivision 1, is amended to read: 106.32 Subdivision 1. [CONTRACT; DUTIES.] All districts 106.33 maintaining a classified secondary school must employ a 106.34 superintendent who shall be an ex officio nonvoting member of 106.35 the school board. The authority for selection and employment of 106.36 a superintendent must be vested in the board in all cases. An 107.1 individual employed by a board as a superintendent shall have an 107.2 initial employment contract for a period of time no longer than 107.3 three years from the date of employment. Any subsequent 107.4 employment contract must not exceed a period of three years. A 107.5 board, at its discretion, may or may not renew an employment 107.6 contract. A board must not, by action or inaction, extend the 107.7 duration of an existing employment contract. Beginning 365 days 107.8 prior to the expiration date of an existing employment contract, 107.9 a board may negotiate and enter into a subsequent employment 107.10 contract to take effect upon the expiration of the existing 107.11 contract. A subsequent contract must be contingent upon the 107.12 employee completing the terms of an existing contract. If a 107.13 contract between a board and a superintendent is terminated 107.14 prior to the date specified in the contract, the board may not 107.15 enter into another superintendent contract with that same 107.16 individual that has a term that extends beyond the date 107.17 specified in the terminated contract. A board may terminate a 107.18 superintendent during the term of an employment contract for any 107.19 of the grounds specified in section 122A.40, subdivision 9 or 13. 107.20 A superintendent shall not rely upon an employment contract with 107.21 a board to assert any other continuing contract rights in the 107.22 position of superintendent under section 122A.40. 107.23 Notwithstanding the provisions of sections 122A.40, subdivision 107.24 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 107.25 individual shall have a right to employment as a superintendent 107.26 based on order of employment in any district. If two or more 107.27 districts enter into an agreement for the purchase or sharing of 107.28 the services of a superintendent, the contracting districts have 107.29 the absolute right to select one of the individuals employed to 107.30 serve as superintendent in one of the contracting districts and 107.31 no individual has a right to employment as the superintendent to 107.32 provide all or part of the services based on order of employment 107.33 in a contracting district. The superintendent of a district 107.34 shall perform the following: 107.35 (1) visit and supervise the schools in the district, report 107.36 and make recommendations about their condition when advisable or 108.1 on request by the board; 108.2 (2) recommend to the board employment and dismissal of 108.3 teachers; 108.4 (3) superintend school grading practices and examinations 108.5 for promotions; 108.6 (4) make reports required by the commissioner; and 108.7 (5)by January 10, submit an annual report to the108.8commissioner in a manner prescribed by the commissioner, in108.9consultation with school districts, identifying the expenditures108.10that the district requires to ensure an 80 percent student108.11passage rate on the basic standards test taken in the eighth108.12grade, identifying the highest student passage rate the district108.13expects it will be able to attain on the basic standards test by108.14grade 12, the amount of expenditures that the district requires108.15to attain the targeted student passage rate, and how much the108.16district is cross-subsidizing programs with special education,108.17basic skills, and general education revenue; and108.18(6)perform other duties prescribed by the board. 108.19 Sec. 52. Minnesota Statutes 2004, section 123B.36, 108.20 subdivision 1, is amended to read: 108.21 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 108.22 purposes of this subdivision, "home school" means a home school 108.23 as defined in sections 120A.22 and 120A.24 with five or fewer 108.24 students receiving instruction. 108.25 (b) A school board is authorized to require payment of fees 108.26 in the following areas: 108.27 (1) in any program where the resultant product, in excess 108.28 of minimum requirements and at the pupil's option, becomes the 108.29 personal property of the pupil; 108.30 (2) admission fees or charges for extracurricular 108.31 activities, where attendance is optional and where the admission 108.32 fees or charges a student must pay to attend or participate in 108.33 an extracurricular activity is the same for all students, 108.34 regardless of whether the student is enrolled in a public or a 108.35 home school; 108.36 (3) a security deposit for the return of materials, 109.1 supplies, or equipment; 109.2 (4) personal physical education and athletic equipment and 109.3 apparel, although any pupil may personally provide it if it 109.4 meets reasonable requirements and standards relating to health 109.5 and safety established by the board; 109.6 (5) items of personal use or products that a student has an 109.7 option to purchase such as student publications, class rings, 109.8 annuals, and graduation announcements; 109.9 (6) fees specifically permitted by any other statute, 109.10 including but not limited to section 171.05, subdivision 2; 109.11 provided (i) driver education fees do not exceed the actual cost 109.12 to the school and school district of providing driver education, 109.13 and (ii) the driver education courses are open to enrollment to 109.14 persons between the ages of 15 and 18 who reside or attend 109.15 school in the school district; 109.16 (7) field trips considered supplementary to a district 109.17 educational program; 109.18 (8) any authorized voluntary student health and accident 109.19 benefit plan; 109.20 (9) for the use of musical instruments owned or rented by 109.21 the district, a reasonable rental fee not to exceed either the 109.22 rental cost to the district or the annual depreciation plus the 109.23 actual annual maintenance cost for each instrument; 109.24 (10) transportation of pupils to and from extracurricular 109.25 activities conducted at locations other than school, where 109.26 attendance is optional, and transportation of charter school 109.27 students participating in extracurricular activities in their 109.28 resident district under section 123B.49, subdivision 4, 109.29 paragraph (a), which must be charged to the charter school; 109.30 (11) transportation to and from school of pupils living 109.31 within two miles from school and all other transportation 109.32 services not required by law. If a district charges fees for 109.33 transportation of pupils, it must establish guidelines for that 109.34 transportation to ensure that no pupil is denied transportation 109.35 solely because of inability to pay; 109.36 (12) motorcycle classroom education courses conducted 110.1 outside of regular school hours; provided the charge must not 110.2 exceed the actual cost of these courses to the school district; 110.3 (13) transportation to and from postsecondary institutions 110.4 for pupils enrolled under the postsecondary enrollment options 110.5 program under section 123B.88, subdivision 22. Fees collected 110.6 for this service must be reasonable and must be used to reduce 110.7 the cost of operating the route. Families who qualify for 110.8 mileage reimbursement under section 124D.09, subdivision 22, may 110.9 use their state mileage reimbursement to pay this fee. If no 110.10 fee is charged, districts must allocate costs based on the 110.11 number of pupils riding the route. 110.12 [EFFECTIVE DATE.] This section is effective for the 110.13 2005-2006 school year and later. 110.14 Sec. 53. Minnesota Statutes 2004, section 123B.49, 110.15 subdivision 4, is amended to read: 110.16 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 110.17 (a) The board may take charge of and control all extracurricular 110.18 activities of the teachers and children of the public schools in 110.19 the district. Extracurricular activities means all direct and 110.20 personal services for pupils for their enjoyment that are 110.21 managed and operated under the guidance of an adult or staff 110.22 member. The board shall allow all resident pupils receiving 110.23 instruction in a home school as defined in section 123B.36, 110.24 subdivision 1, paragraph (a), and all resident pupils receiving 110.25 instruction in a charter school as defined in section 124D.10 to 110.26 be eligible to fully participate in extracurricular activities 110.27 on the same basis as public school students.enrolled in the 110.28 district's schools. A charter school student must give the 110.29 enrolling charter school and the resident school district at 110.30 least a 30-day notice of the student's intent to participate in 110.31 an extracurricular activity in the resident district. Before a 110.32 charter school student begins participating in an 110.33 extracurricular activity in the resident district, the charter 110.34 school must agree in writing to pay the direct and indirect 110.35 costs attributable to that student that the district may charge 110.36 to the charter school under paragraph (f). A charter school 111.1 student is not eligible to participate in an extracurricular 111.2 activity in the resident district if that extracurricular 111.3 activity is offered by the enrolling charter school or the 111.4 extracurricular activity is not controlled by the high school 111.5 league under chapter 128C. Charter school students 111.6 participating in extracurricular activities must meet the 111.7 academic and student conduct requirements of the resident 111.8 district. The charter school must: 111.9 (1) collect the same information that a district collects 111.10 on a student's eligibility to participate in an extracurricular 111.11 activity; 111.12 (2) transmit that information to the district at least ten 111.13 days before a student begins to participate in the 111.14 extracurricular activity; and 111.15 (3) immediately transmit to the district any additional 111.16 information affecting the student's eligibility. 111.17 (b) Extracurricular activities have all of the following 111.18 characteristics: 111.19 (1) they are not offered for school credit nor required for 111.20 graduation; 111.21 (2) they are generally conducted outside school hours, or 111.22 if partly during school hours, at times agreed by the 111.23 participants, and approved by school authorities; 111.24 (3) the content of the activities is determined primarily 111.25 by the pupil participants under the guidance of a staff member 111.26 or other adult. 111.27 (c) If the board does not take charge of and control 111.28 extracurricular activities, these activities shall be 111.29 self-sustaining with all expenses, except direct salary costs 111.30 and indirect costs of the use of school facilities, met by dues, 111.31 admissions, or other student fund-raising events. The general 111.32 fund must reflect only those salaries directly related to and 111.33 readily identified with the activity and paid by public funds. 111.34 Other revenues and expenditures for extracurricular activities 111.35 must be recorded according to the "Manualof Instructionfor 111.36Uniform Student ActivitiesActivity Fund Accountingfor112.1Minnesota School Districts and Area Vocational-Technical112.2Colleges." Extracurricular activities not under board control 112.3 must have an annual financial audit and must also be audited 112.4 annually for compliance with this section. 112.5 (d) If the board takes charge of and controls 112.6 extracurricular activities, any or all costs of these activities 112.7 may be provided from school revenues and all revenues and 112.8 expenditures for these activities shall be recorded in the same 112.9 manner as other revenues and expenditures of the district. 112.10 (e) If the board takes charge of and controls 112.11 extracurricular activities, the teachers or pupils in the 112.12 district must not participate in such activity, nor shall the 112.13 school name or any allied name be used in connection therewith, 112.14 except by consent and direction of the board. 112.15 (f) School districts may charge charter schools their 112.16 proportional share of the direct and indirect costs of the 112.17 extracurricular activities that are not covered by student fees 112.18 under section 123B.36, subdivision 1, ticket revenues, 112.19 fund-raising efforts, sponsorships, or other income generated 112.20 for those activities for which the charter school is charged. A 112.21 district may charge charter school students the same fees it 112.22 charges enrolled students to participate in an extracurricular 112.23 activity. All charges to a charter school and charter school 112.24 students must be paid when the charter school students are 112.25 selected to participate in the activity. A district is not 112.26 required to provide transportation from the charter school to 112.27 the resident district for a charter school student who 112.28 participates in an extracurricular activity in the resident 112.29 district. 112.30 [EFFECTIVE DATE.] This section is effective for the 112.31 2005-2006 school year and later. 112.32 Sec. 54. Minnesota Statutes 2004, section 124D.095, 112.33 subdivision 8, is amended to read: 112.34 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 112.35 enrolled in an on-line learning course, the department must 112.36 calculate average daily membership and make payments according 113.1 to this subdivision. 113.2 (b) The initial on-line learning average daily membership 113.3 equals 1/12 for each semester course or a proportionate amount 113.4 for courses of different lengths. The adjusted on-line learning 113.5 average daily membership equals the initial on-line learning 113.6 average daily membership times .88. 113.7 (c) No on-line learning average daily membership shall be 113.8 generated if: (1) the student does not complete the on-line 113.9 learning course, or (2) the student is enrolled in on-line 113.10 learning provided by the enrolling districtand the student was113.11enrolled in a Minnesota public school for the school year before113.12the school year in which the student first enrolled in on-line113.13learning. 113.14 (d) On-line learning average daily membership under this 113.15 subdivision for a student currently enrolled in a Minnesota 113.16 public schooland who was enrolled in a Minnesota public school113.17for the school year before the school year in which the student113.18first enrolled in on-line learningshall be used only for 113.19 computing average daily membership according to section 126C.05, 113.20 subdivision 19, paragraph (a), clause (ii), and for computing 113.21 on-line learning aid according to section126C.24124D.096. 113.22(e) On-line learning average daily membership under this113.23subdivision for students not included in paragraph (c) or (d)113.24shall be used only for computing average daily membership113.25according to section 126C.05, subdivision 19, paragraph (a),113.26clause (ii), and for computing payments under paragraphs (f) and113.27(g).113.28(f) Subject to the limitations in this subdivision, the113.29department must pay an on-line learning provider an amount equal113.30to the product of the adjusted on-line learning average daily113.31membership for students under paragraph (e) times the student113.32grade level weighting under section 126C.05, subdivision 1,113.33times the formula allowance.113.34(g) The department must pay each on-line learning provider113.35100 percent of the amount in paragraph (f) within 45 days of113.36receiving final enrollment and course completion information114.1each quarter or semester.114.2 [EFFECTIVE DATE.] This section is effective for revenue for 114.3 fiscal year 2006. 114.4 Sec. 55. Minnesota Statutes 2004, section 124D.10, 114.5 subdivision 3, is amended to read: 114.6 Subd. 3. [SPONSOR.] (a) A school board; intermediate 114.7 school district school board; education district organized under 114.8 sections 123A.15 to 123A.19; charitable organization under 114.9 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 114.10 member of the Minnesota Council of Nonprofits or the Minnesota 114.11 Council on Foundations, registered with the attorney general's 114.12 office, and reports an end-of-year fund balance of at least 114.13 $2,000,000; Minnesota private college that grants two- or 114.14 four-year degrees and is registered with the Higher Education 114.15 Services Office under chapter 136A; community college, state 114.16 university, or technical college, governed by the Board of 114.17 Trustees of the Minnesota State Colleges and Universities; or 114.18 the University of Minnesota may sponsor one or more charter 114.19 schools. 114.20 (b) A nonprofit corporation subject to chapter 317A, 114.21 described in section 317A.905, and exempt from federal income 114.22 tax under section 501(c)(6) of the Internal Revenue Code of 114.23 1986, may sponsor one or more charter schools if the charter 114.24 school has operated for at least three years under a different 114.25 sponsor and if the nonprofit corporation has existed for at 114.26 least 25 years. 114.27 (c) The commissioner of education may approve up to five 114.28 charitable organizations under section 501(c)(3) of the Internal 114.29 Revenue Code of 1986 that sponsor charter schools as their sole 114.30 charitable purpose. Eligible charitable organizations 114.31 interested in being approved as a sponsor under this paragraph 114.32 must submit a proposal to the commissioner that includes: 114.33 (1) the articles, bylaws, and initial membership of the 114.34 charitable organization's board of directors; 114.35 (2) financial information consistent with section 309.53, 114.36 subdivision 3; 115.1 (3) a description of how the charitable organization plans 115.2 to realize its principle charitable purpose; and 115.3 (4) other information requested by the commissioner. 115.4 A charitable organization that is approved as a sponsor 115.5 under this paragraph annually must report to the commissioner in 115.6 the form and manner the commissioner determines. The report 115.7 must describe the charter schools authorized by the charitable 115.8 organization, the effectiveness of those charter schools in 115.9 promoting student achievement, and the governance structure of 115.10 those charter schools, and also must include other information 115.11 requested by the commissioner. An approved charitable 115.12 organization may sponsor one or more charter schools. The 115.13 commissioner may withdraw the approval of a charitable 115.14 organization to sponsor a charter school under this paragraph if 115.15 the commissioner determines that the charitable organization 115.16 fails to meet generally accepted standards of fiscal management, 115.17 violates the law, or shows other good cause. The commissioner's 115.18 determination is final. When the commissioner withdraws the 115.19 approval of a charitable organization to sponsor a charter 115.20 school, the commissioner may approve the decision of a different 115.21 eligible sponsor to authorize the charter school or may apply 115.22 subdivision 24 governing student enrollment when a charter 115.23 school contract is not renewed or terminated. 115.24 [EFFECTIVE DATE.] This section is effective the day 115.25 following final enactment. 115.26 Sec. 56. Minnesota Statutes 2004, section 124D.10, 115.27 subdivision 4, is amended to read: 115.28 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 115.29 authorize one or more licensed teachers under section 122A.18, 115.30 subdivision 1, to operate a charter school subject to approval 115.31 by the commissioner. A board must vote on charter school 115.32 application for sponsorship no later than 90 days after 115.33 receiving the application. After 90 days, the applicant may 115.34 apply to the commissioner. If a board elects not to sponsor a 115.35 charter school, the applicant may appeal the board's decision to 115.36 the commissioner. The commissionerwho may elect tosponsor the116.1charter school orassist the applicant in finding an eligible 116.2 sponsor. The school must be organized and operated as a 116.3 cooperative under chapter 308A or nonprofit corporation under 116.4 chapter 317A and the provisions under the applicable chapter 116.5 shall apply to the school except as provided in this section. 116.6 Notwithstanding sections 465.717 and 465.719, a school district 116.7 may create a corporation for the purpose of creating a charter 116.8 school. 116.9 (b) Before the operators may form and operate a school, the 116.10 sponsor must file an affidavit with the commissioner stating its 116.11 intent to authorize a charter school. The affidavit must state 116.12 the terms and conditions under which the sponsor would authorize 116.13 a charter school and how the sponsor intends to oversee the 116.14 fiscal and student performance of the charter school and to 116.15 comply with the terms of the written contract between the 116.16 sponsor and the charter school board of directors under 116.17 subdivision 6. The commissioner must approve or disapprove the 116.18 sponsor's proposed authorization within6090 days of receipt of 116.19 the affidavit. Failure to obtain commissioner approval 116.20 precludes a sponsor from authorizing the charter school that was 116.21 the subject of the affidavit. 116.22 (c) The operators authorized to organize and operate a 116.23 school, before entering into a contract or other agreement for 116.24 professional or other services, goods, or facilities, must 116.25 incorporate as a cooperative under chapter 308A or as a 116.26 nonprofit corporation under chapter 317A and must establish a 116.27 board of directors composed of at least five members until a 116.28 timely election for members of the charter school board of 116.29 directors is held according to the school's articles and 116.30 bylaws. A charter school board of directors must be composed of 116.31 at least five members. Any staff members who are employed at 116.32 the school, including teachers providing instruction under a 116.33 contract with a cooperative, and all parents of children 116.34 enrolled in the school may participate in the election for 116.35 members of the school's board of directors. Licensed teachers 116.36 employed at the school, including teachers providing instruction 117.1 under a contract with a cooperative, must be a majority of the 117.2 members of the board of directors before the school completes 117.3 its third year of operation, unless the commissioner waives the 117.4 requirement for a majority of licensed teachers on the board. 117.5 Board of director meetings must comply with chapter 13D. 117.6 (d) The granting or renewal of a charter by a sponsoring 117.7 entity must not be conditioned upon the bargaining unit status 117.8 of the employees of the school. 117.9 (e) A sponsor may authorize the operators of a charter 117.10 school to expand the operation of the charter school to 117.11 additional sites or to add additional grades at the school 117.12 beyond those described in the sponsor's application as approved 117.13 by the commissioner only after submitting a supplemental 117.14 application to the commissioner in a form and manner prescribed 117.15 by the commissioner. The supplemental application must provide 117.16 evidence that: 117.17 (1) the expansion of the charter school is supported by 117.18 need and projected enrollment; 117.19 (2) the charter school is fiscally sound; 117.20 (3) the sponsor supports the expansion; and 117.21 (4) the building of the additional site meets all health 117.22 and safety requirements to be eligible for lease aid. 117.23 (f) The commissioner annually must provide timely financial 117.24 management training to newly elected members of a charter school 117.25 board of directors and ongoing training to other members of a 117.26 charter school board of directors. Training must address ways 117.27 to: 117.28 (1) proactively assess opportunities for a charter school 117.29 to maximize all available revenue sources; 117.30 (2) establish and maintain complete, auditable records for 117.31 the charter school; 117.32 (3) establish proper filing techniques; 117.33 (4) document formal actions of the charter school, 117.34 including meetings of the charter school board of directors; 117.35 (5) properly manage and retain charter school and student 117.36 records; 118.1 (6) comply with state and federal payroll record-keeping 118.2 requirements; and 118.3 (7) address other similar factors that facilitate 118.4 establishing and maintaining complete records on the charter 118.5 school's operations. 118.6 [EFFECTIVE DATE.] This section is effective for the 118.7 2005-2006 school year and later. 118.8 Sec. 57. Minnesota Statutes 2004, section 124D.10, 118.9 subdivision 6, is amended to read: 118.10 Subd. 6. [CONTRACT.] The sponsor's authorization for a 118.11 charter school must be in the form of a written contract signed 118.12 by the sponsor and the board of directors of the charter 118.13 school. The contract must be completed within 90 days of the 118.14 commissioner's approval of the sponsor's proposed authorization. 118.15 The contract for a charter school must be in writing and contain 118.16 at least the following: 118.17 (1) a description of a program that carries out one or more 118.18 of the purposes in subdivision 1; 118.19 (2) specific outcomes pupils are to achieve under 118.20 subdivision 10; 118.21 (3) admission policies and procedures; 118.22 (4) management and administration of the school; 118.23 (5) requirements and procedures for program and financial 118.24 audits; 118.25 (6) how the school will comply with subdivisions 8, 13, 16, 118.26 and 23; 118.27 (7) assumption of liability by the charter school; 118.28 (8) types and amounts of insurance coverage to be obtained 118.29 by the charter school; 118.30 (9) the term of the contract, which may be up to three 118.31 years;and118.32 (10) if the board of directors or the operators of the 118.33 charter school provide special instruction and services for 118.34 children with a disability under sections 125A.03 to 125A.24, 118.35 and 125A.65, a description of the financial parameters within 118.36 which the charter school will operate to provide the special 119.1 instruction and services to children with a disability; and 119.2 (11) the process and criteria the sponsor intends to use to 119.3 monitor and evaluate the fiscal and student performance of the 119.4 charter school, consistent with subdivision 15. 119.5 [EFFECTIVE DATE.] This section is effective for the 119.6 2005-2006 school year and later. 119.7 Sec. 58. Minnesota Statutes 2004, section 124D.10, 119.8 subdivision 8, is amended to read: 119.9 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 119.10 school shall meet all applicable state and local health and 119.11 safety requirements. 119.12 (b) A school sponsored by a school board may be located in 119.13 any district, unless the school board of the district of the 119.14 proposed location disapproves by written resolution. 119.15 (c) A charter school must be nonsectarian in its programs, 119.16 admission policies, employment practices, and all other 119.17 operations. A sponsor may not authorize a charter school or 119.18 program that is affiliated with a nonpublic sectarian school or 119.19 a religious institution. 119.20 (d) Charter schools must not be used as a method of 119.21 providing education or generating revenue for students who are 119.22 being homeschooled. 119.23 (e) The primary focus of a charter school must be to 119.24 provide a comprehensive program of instruction for at least one 119.25 grade or age group from five through 18 years of age. 119.26 Instruction may be provided to people younger than five years 119.27 and older than 18 years of age. 119.28 (f) A charter school may not charge tuition. 119.29 (g) A charter school is subject to and must comply with 119.30 chapter 363A and section 121A.04. 119.31 (h) A charter school is subject to and must comply with the 119.32 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 119.33 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 119.34 (i) A charter school is subject to the same financial 119.35 audits, audit procedures, and audit requirements as a district. 119.36 Audits must be conducted in compliance with generally accepted 120.1 governmental auditing standards, the Federal Single Audit Act, 120.2 if applicable, and section 6.65. A charter school is subject to 120.3 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 120.4 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 120.5 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 120.6 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 120.7 comply with the requirements of sections 123B.75 to 123B.83, 120.8 except to the extent deviations are necessary because of the 120.9 program at the school. Deviations must be approved by the 120.10 commissioner. The Department of Education, state auditor, or 120.11 legislative auditor may conduct financial, program, or 120.12 compliance audits. A charter school determined to be in 120.13 statutory operating debt under sections 123B.81 to 123B.83 must 120.14 submit a plan under section 123B.81, subdivision 4. 120.15 (j) A charter school is a district for the purposes of tort 120.16 liability under chapter 466. 120.17 (k) A charter school must comply with sections 13.32; 120.18 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 120.19 and 5. 120.20 (l) A charter school is subject to the Pledge of Allegiance 120.21 requirement under section 121A.11, subdivision 3. 120.22 (m) A charter school is subject to sections 123B.36, 120.23 subdivision 1, paragraph (b), clause (10), and 123B.49, 120.24 subdivision 4, paragraphs (a) and (f), when its students 120.25 participate in extracurricular activities in their resident 120.26 district. 120.27 (n) Charter school board of director open meeting 120.28 requirements are governed according to subdivision 4. 120.29 [EFFECTIVE DATE.] This section is effective for the 120.30 2005-2006 school year and later. 120.31 Sec. 59. Minnesota Statutes 2004, section 124D.10, 120.32 subdivision 15, is amended to read: 120.33 Subd. 15. [REVIEW AND COMMENT.] (a) The department must 120.34 review and comment on the evaluation, by the sponsor, of the 120.35 performance of a charter school before the charter school's 120.36 contract is renewed for another contract term. The sponsor must 121.1 submit to the commissioner timely information for the review and 121.2 comment. 121.3 (b) A sponsor shall monitor and evaluate the fiscal and 121.4 student performance of the school, and may for this purpose 121.5 annually assess a charter school: (1) in its first, second, or 121.6 third year of operation up to $30 per student up to a maximum of 121.7 $10,000; and (2) in its fourth or a subsequent year of operation 121.8 up to $10 per student up to a maximum of $3,500.The121.9information for the review and comment shall be reported by the121.10sponsor to the commissioner of education in a timely manner.121.11 [EFFECTIVE DATE.] This section is effective for the 121.12 2005-2006 school year and later. 121.13 Sec. 60. Minnesota Statutes 2004, section 124D.10, 121.14 subdivision 23, is amended to read: 121.15 Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 121.16 SCHOOL CONTRACT.] (a) The duration of the contract with a 121.17 sponsor must be for the term contained in the contract according 121.18 to subdivision 6. The sponsor may or may not renew a contract 121.19 at the end of the term for any ground listed in paragraph (b). 121.20 A sponsor may unilaterally terminate a contract during the term 121.21 of the contract for any ground listed in paragraph (b). At 121.22 least 60 days before not renewing or terminating a contract, the 121.23 sponsor shall notify the board of directors of the charter 121.24 school of the proposed action in writing. The notice shall 121.25 state the grounds for the proposed action in reasonable detail 121.26 and that the charter school's board of directors may request in 121.27 writing an informal hearing before the sponsor within 14 days of 121.28 receiving notice of nonrenewal or termination of the contract. 121.29 Failure by the board of directors to make a written request for 121.30 a hearing within the 14-day period shall be treated as 121.31 acquiescence to the proposed action. Upon receiving a timely 121.32 written request for a hearing, the sponsor shall give reasonable 121.33 notice to the charter school's board of directors of the hearing 121.34 date. The sponsor shall conduct an informal hearing before 121.35 taking final action. The sponsor shall take final action to 121.36 renew or not renew a contract by the last day of classes in the 122.1 school year. If the sponsor is a local board, the school's 122.2 board of directors may appeal the sponsor's decision to the 122.3 commissioner. 122.4 (b) A contract may be terminated or not renewed upon any of 122.5 the following grounds: 122.6 (1) failure to meet the requirements for pupil performance 122.7 contained in the contract; 122.8 (2) failure to meet generally accepted standards of fiscal 122.9 management; 122.10 (3) violations of law; or 122.11 (4) other good cause shown. 122.12 If a contract is terminated or not renewed under this 122.13 paragraph, the school must be dissolved according to the 122.14 applicable provisions of chapter 308A or 317A, except when the 122.15 commissioner approves the decision of a different eligible 122.16 sponsor to authorize the charter school. 122.17 (c) If at the end of a contract term, either the sponsor or 122.18 the charter school board of directors wants to voluntarily 122.19 terminate the contract, a change in sponsors is allowed if the 122.20 commissioner approves the decision of a different eligible 122.21 sponsor to authorize the charter school. The party intending to 122.22 terminate the contract must notify the other party and the 122.23 commissioner of its intent at least 90 days before the date on 122.24 which the contract ends. The sponsor that is a party to the 122.25 existing contract at least must inform the approved different 122.26 eligible sponsor about the fiscal and student performance of the 122.27 school. If no different eligible sponsor is approved, the 122.28 school must be dissolved according to applicable law and the 122.29 terms of the contract. 122.30 (d) The commissioner, after providing reasonable notice to 122.31 the board of directors of a charter school and the existing 122.32 sponsor, and after providing an opportunity for a public 122.33 hearing, may terminate the existing sponsorial relationship if 122.34 the charter school has a history of: 122.35 (1) financial mismanagement; or 122.36 (2) repeated violations of the law. 123.1 [EFFECTIVE DATE.] This section is effective for the 123.2 2005-2006 school year and later. 123.3 Sec. 61. Minnesota Statutes 2004, section 124D.11, 123.4 subdivision 1, is amended to read: 123.5 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 123.6 education revenue must be paid to a charter school as though it 123.7 were a district. The general education revenue for each 123.8 adjusted marginal cost pupil unit is the state average general 123.9 education revenue per pupil unit, plus the referendum 123.10 equalization aid allowance in the pupil's district of residence, 123.11 minus an amount equal to the product of the formula allowance 123.12 according to section 126C.10, subdivision 2, times .0485, 123.13 calculated without basic skills revenue, extended time revenue, 123.14 alternative compensation revenue, transition revenue, and 123.15 transportation sparsity revenue, plus basic skills revenue, 123.16 extended time revenue, basic alternative compensation aid 123.17 according to section 126C.10, subdivision 34, and transition 123.18 revenue as though the school were a school district. The 123.19 general education revenue for each extended time marginal cost 123.20 pupil unit equals $4,378. 123.21 (b) Notwithstanding paragraph (a), for charter schools in 123.22 the first year of operation, general education revenue shall be 123.23 computed using the number of adjusted pupil units in the current 123.24 fiscal year. 123.25 Sec. 62. Minnesota Statutes 2004, section 124D.11, 123.26 subdivision 2, is amended to read: 123.27 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 123.28 must be paid to a charter school that provides transportation 123.29 services according to section 124D.10, subdivision 16, according 123.30 to this subdivision. Transportation aid shall equal 123.31 transportation revenue. 123.32 In addition to the revenue under subdivision 1, a charter 123.33 school providing transportation services must receive general 123.34 education aidfor each pupil unitequal to the sum of the 123.35 product of (i) an amount equal to the product of the formula 123.36 allowance according to section 126C.10, subdivision 2, times 124.1 .0485, plus the transportation sparsity allowance for the school 124.2 district in which the charter school is located times (ii) the 124.3 adjusted marginal cost pupil units, plus the product of $223 124.4 times the extended time marginal cost pupil units. 124.5 Sec. 63. Minnesota Statutes 2004, section 124D.11, 124.6 subdivision 6, is amended to read: 124.7 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 124.8 school is eligible to receive other aids, grants, and revenue 124.9 according to chapters 120A to 129C, as though it were a district. 124.10 (b) Notwithstanding paragraph (a), a charter school may not 124.11 receive aid, a grant, or revenue if a levy, other than a levy 124.12 required by sections 125A.76 or 126C.10, is required to obtain 124.13 the money, or if the aid, grant, or revenue is a replacement of 124.14 levy revenue, except as otherwise provided in this section. 124.15 (c) Federal aid received by the state must be paid to the 124.16 school, if it qualifies for the aid as though it were a school 124.17 district. 124.18 (d) A charter school may receive money from any source for 124.19 capital facilities needs. In the year-end report to the 124.20 commissioner of education, the charter school shall report the 124.21 total amount of funds received from grants and other outside 124.22 sources. 124.23 Sec. 64. [124D.4531] [CAREER AND TECHNICAL LEVY.] 124.24 Subdivision 1. [CAREER AND TECHNICAL LEVY.] (a) A district 124.25 with a career and technical program approved under this section 124.26 for the fiscal year in which the levy is certified may levy an 124.27 amount equal to the lesser of: 124.28 (1) $80 times the district's average daily membership in 124.29 grades 10 through 12 for the fiscal year in which the levy is 124.30 certified; or 124.31 (2) 25 percent of approved expenditures in the fiscal year 124.32 in which the levy is certified for the following: 124.33 (i) salaries paid to essential, licensed personnel 124.34 providing direct instructional services to students in that 124.35 fiscal year for services rendered in the district's approved 124.36 career and technical education programs; 125.1 (ii) contracted services provided by a public or private 125.2 agency other than a Minnesota school district or cooperative 125.3 center under subdivision 7; 125.4 (iii) necessary travel between instructional sites by 125.5 licensed career and technical education personnel; 125.6 (iv) necessary travel by licensed career and technical 125.7 education personnel for vocational student organization 125.8 activities held within the state for instructional purposes; 125.9 (v) curriculum development activities that are part of a 125.10 five-year plan for improvement based on program assessment; 125.11 (vi) necessary travel by licensed career and technical 125.12 education personnel for noncollegiate credit-bearing 125.13 professional development; and 125.14 (vii) specialized vocational instructional supplies. 125.15 (b) Up to ten percent of a district's career and technical 125.16 levy may be spent on equipment purchases. Districts using the 125.17 career and technical levy for equipment purchases must report to 125.18 the department on the improved learning opportunities for 125.19 students that result from the investment in equipment. 125.20 (c) The district must recognize the full amount of this 125.21 levy as revenue for the fiscal year in which it is certified. 125.22 Subd. 2. [ALLOCATION FROM COOPERATIVE CENTERS AND 125.23 INTERMEDIATE DISTRICTS.] For purposes of this section, a 125.24 cooperative center or an intermediate district must allocate its 125.25 approved expenditures for career and technical education 125.26 programs among participating districts. 125.27 Subd. 3. [LEVY GUARANTEE.] Notwithstanding subdivision 1, 125.28 the career and technical education levy for a district is not 125.29 less than the lesser of: 125.30 (1) the district's career and technical education levy 125.31 authority for the previous fiscal year; or 125.32 (2) 100 percent of the approved expenditures for career and 125.33 technical programs included in subdivision 1, paragraph (b), for 125.34 the fiscal year in which the levy is certified. 125.35 Subd. 4. [COMPLIANCE WITH RULES.] (a) Levy authority must 125.36 be granted under this section only for services rendered or for 126.1 costs incurred in career and technical education programs 126.2 approved by the commissioner and operated in accordance with 126.3 rules adopted by the commissioner. The rules must not require 126.4 any minimum number of administrative staff, any minimum period 126.5 of coordination time or extended employment for career and 126.6 technical education personnel, or the availability of vocational 126.7 student activities or organizations for a career and technical 126.8 education program to qualify for this levy. Levy authority 126.9 shall be granted only for services rendered and for costs 126.10 incurred by essential, licensed personnel, or approved 126.11 paraprofessionals who meet the requirements for licensure 126.12 pursuant to the rules of the Minnesota Board of Teaching. 126.13 For the purposes of this paragraph, "licensed personnel" 126.14 means persons holding a valid career and technical license 126.15 issued by the commissioner. If an average of five or fewer 126.16 secondary full-time equivalent students are enrolled per teacher 126.17 in an approved postsecondary program at Intermediate District 126.18 No. 287, 916, or 917, "licensed personnel" means persons holding 126.19 a valid vocational license issued by the commissioner or the 126.20 Board of Trustees of the Minnesota State Colleges and 126.21 Universities. 126.22 (b) Notwithstanding section 127A.42, the commissioner may 126.23 modify or withdraw the program or levy authority under this 126.24 section without proceeding under section 127A.42, at any time. 126.25 To do so, the commissioner must determine that the program does 126.26 not comply with rules of the Department of Education or that any 126.27 facts concerning the program or its budget differ from the facts 126.28 in the district's approved application. 126.29 Subd. 5. [LIMIT.] The commissioner may reduce the levy 126.30 under this section for a career and technical education program 126.31 that receives funds from any other source. A district or center 126.32 must not receive a total amount of levy authority pursuant to 126.33 this section which, when added to funds from other sources, will 126.34 provide the program an amount for salaries and travel which 126.35 exceeds 100 percent of the amount of its expenditures for 126.36 salaries and travel in the program. 127.1 Subd. 6. [LEVY FOR CONTRACTED SERVICES.] In addition to 127.2 the provisions of subdivisions 4 and 5, a school district or 127.3 cooperative center may contract with a public or private agency 127.4 other than a Minnesota school district or cooperative center for 127.5 the provision of career and technical education services. The 127.6 commissioner must adopt rules relating to program approval 127.7 procedures and criteria for these contracts and levy authority 127.8 must be granted only for contracts approved by the 127.9 commissioner. The district or cooperative center contracting 127.10 for these services must be construed to be providing the 127.11 services. 127.12 Subd. 7. [DISTRICT REPORTS.] Each district or cooperative 127.13 center must report data to the department for all career and 127.14 technical education programs as required by the department to 127.15 implement the career and technical levy formula. 127.16 [EFFECTIVE DATE.] This section is effective for taxes 127.17 payable in 2008. 127.18 Sec. 65. Minnesota Statutes 2004, section 124D.66, 127.19 subdivision 3, is amended to read: 127.20 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 127.21 programs may provide direct instructional services to an 127.22 eligible pupil, or a group of eligible pupils, under the 127.23 following conditions in paragraphs (b) to (d). 127.24 (b) Instruction may be provided at one or more grade levels 127.25 from kindergarten to grade 8 and for students in grades 9 127.26 through 12 who were enrolled in grade 8 before the 2005-2006 127.27 school year and have failed the basic skills tests, or who were 127.28 enrolled in grade 8 in the 2005-2006 school year and later and 127.29 have failed the Minnesota Comprehensive Assessments (MCA-IIs) in 127.30 reading, mathematics, or writing as required for high school 127.31 graduation under section 120B.02. If an assessment of pupils' 127.32 needs within a district demonstrates that the eligible pupils in 127.33 grades kindergarten to grade 8 are being appropriately served, a 127.34 district may serve eligible pupils in grades 9 to 12. 127.35 (c) Instruction must be provided under the supervision of 127.36 the eligible pupil's regular classroom teacher. Instruction may 128.1 be provided by the eligible pupil's classroom teacher, by 128.2 another teacher, by a team of teachers, or by an education 128.3 assistant or aide. A special education teacher may provide 128.4 instruction, but instruction that is provided under this section 128.5 is not eligible for aid under section 125A.76. 128.6 (d) The instruction that is provided must differ from the 128.7 initial instruction the pupil received in the regular classroom 128.8 setting. The instruction may differ by presenting different 128.9 curriculum than was initially presented in the regular classroom 128.10 or by presenting the same curriculum: 128.11 (1) at a different rate or in a different sequence than it 128.12 was initially presented; 128.13 (2) using different teaching methods or techniques than 128.14 were used initially; or 128.15 (3) using different instructional materials than were used 128.16 initially. 128.17 Sec. 66. Minnesota Statutes 2004, section 124D.74, 128.18 subdivision 1, is amended to read: 128.19 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 128.20 education programs are programs in public elementary and 128.21 secondary schools, nonsectarian nonpublic, community, 128.22 tribal, charter, or alternative schools enrolling American 128.23 Indian children designed to: 128.24 (1) support postsecondary preparation for pupils; 128.25 (2) support the academic achievement of American Indian 128.26 students with identified focus to improve reading and mathematic 128.27 skills; 128.28 (3) make the curriculum more relevant to the needs, 128.29 interests, and cultural heritage of American Indian pupils; 128.30 (4) provide positive reinforcement of the self-image of 128.31 American Indian pupils; 128.32 (5) develop intercultural awareness among pupils, parents, 128.33 and staff; and 128.34 (6) supplement, not supplant, state and federal educational 128.35 and cocurricular programs. 128.36 Program components may include: development of support 129.1 components for students in the areas of academic achievement, 129.2 retention, and attendance; development of support components for 129.3 staff, including in-service training and technical assistance in 129.4 methods of teaching American Indian pupils; research projects, 129.5 including experimentation with and evaluation of methods of 129.6 relating to American Indian pupils; provision of personal and 129.7 vocational counseling to American Indian pupils; modification of 129.8 curriculum, instructional methods, and administrative procedures 129.9 to meet the needs of American Indian pupils; and supplemental 129.10 instruction in American Indian language, literature, history, 129.11 and culture. Districts offering programs may make contracts for 129.12 the provision of program components by establishing cooperative 129.13 liaisons with tribal programs and American Indian social service 129.14 agencies. These programs may also be provided as components of 129.15 early childhood and family education programs. 129.16 Sec. 67. Minnesota Statutes 2004, section 124D.81, 129.17 subdivision 1, is amended to read: 129.18 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 129.19 commissioner of education must make grants to no fewer than six 129.20 American Indian education programs. At least three programs 129.21 must be in urban areas and at least three must be on or near 129.22 reservations. The board of a local district, a participating 129.23 school or a group of boards may develop a proposal for grants in 129.24 support of American Indian education programs. Proposals may 129.25 provide for contracts for the provision of program components by 129.26 nonsectarian nonpublic, community, tribal, charter, or 129.27 alternative schools. The commissioner shall prescribe the form 129.28 and manner of application for grants, and no grant shall be made 129.29 for a proposal not complying with the requirements of sections 129.30 124D.71 to 124D.82.The commissioner must submit all proposals129.31to the state Advisory Committee on American Indian Education129.32Programs for its recommendations concerning approval,129.33modification, or disapproval and the amounts of grants to129.34approved programs.129.35 Sec. 68. Minnesota Statutes 2004, section 124D.84, 129.36 subdivision 1, is amended to read: 130.1 Subdivision 1. [AWARDS.] The commissioner, with the advice130.2and counsel of the Minnesota Indian Education Committee,may 130.3 award scholarships to any Minnesota resident student who is of 130.4 one-fourth or more Indian ancestry, who has applied for other 130.5 existing state and federal scholarship and grant programs, and 130.6 who, in the opinion of the commissioner, has the capabilities to 130.7 benefit from further education. Scholarships must be for 130.8 accredited degree programs in accredited Minnesota colleges or 130.9 universities or for courses in accredited Minnesota business, 130.10 technical, or vocational schools. Scholarships may also be 130.11 given to students attending Minnesota colleges that are in 130.12 candidacy status for obtaining full accreditation, and are 130.13 eligible for and receiving federal financial aid programs. 130.14 Students are also eligible for scholarships when enrolled as 130.15 students in Minnesota higher education institutions that have 130.16 joint programs with other accredited higher education 130.17 institutions. Scholarships shall be used to defray the total 130.18 cost of education including tuition, incidental fees, books, 130.19 supplies, transportation, other related school costs and the 130.20 cost of board and room and shall be paid directly to the college 130.21 or school concerned where the student receives federal financial 130.22 aid. The total cost of education includes all tuition and fees 130.23 for each student enrolling in a public institution and the 130.24 portion of tuition and fees for each student enrolling in a 130.25 private institution that does not exceed the tuition and fees at 130.26 a comparable public institution. Each student shall be awarded 130.27 a scholarship based on the total cost of the student's education 130.28 and a federal standardized need analysis. Applicants are 130.29 encouraged to apply for all other sources of financial aid.The130.30amount and type of each scholarship shall be determined through130.31the advice and counsel of the Minnesota Indian education130.32committee.130.33 When an Indian student satisfactorily completes the work 130.34 required by a certain college or school in a school year the 130.35 student is eligible for additional scholarships, if additional 130.36 training is necessary to reach the student's educational and 131.1 vocational objective. Scholarships may not be given to any 131.2 Indian student for more than five years of studywithout special131.3recommendation of the Minnesota Indian Education Committee. 131.4 Sec. 69. Minnesota Statutes 2004, section 126C.457, is 131.5 amended to read: 131.6 126C.457 [CAREER AND TECHNICAL LEVY.] 131.7 For taxes payable in 2006 and 2007, a school district may 131.8 levy an amount equal to the greater of (1) $10,000, or (2) the 131.9 district's fiscal year 2001 entitlement for career and technical 131.10 aid under Minnesota Statutes 2000, section 124D.453. The 131.11 district must recognize the full amount of this levy as revenue 131.12 for the fiscal year in which it is certified. Revenue received 131.13 under this section must be reserved and used only for career and 131.14 technical programs. 131.15 Sec. 70. Minnesota Statutes 2004, section 127A.47, 131.16 subdivision 8, is amended to read: 131.17 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 131.18 for districts must be adjusted for each pupil attending a 131.19 charter school under section 124D.10. The adjustments must be 131.20 made according to this subdivision. 131.21 (b) General education aid paid to a district in which a 131.22 charter school not providing transportation according to section 131.23 124D.10, subdivision 16, is located must be increased by an 131.24 amount equal to the sum of: 131.25 (1) the product of:(1)(i) the sum of an amount equal to 131.26 the product of the formula allowance according to section 131.27 126C.10, subdivision 2, times .0485, plus the transportation 131.28 sparsity allowance for the district; times(2)(ii) the adjusted 131.29 marginal cost pupil units attributable to the pupil; plus 131.30 (2) the product of $223 times the extended time marginal 131.31 cost pupil units attributable to the pupil. 131.32 Sec. 71. Minnesota Statutes 2004, section 128C.12, 131.33 subdivision 1, is amended to read: 131.34 Subdivision 1. [DUES AND EVENTS REVENUE.] (a) The state 131.35 auditor annually must examine the accounts of, and audit all 131.36 money paid to, the State High School League by its members. The 132.1 audit must include financial and compliance issues. Thestate132.2auditoraudit must alsoauditinclude all money derived from any 132.3 event sponsored by the league.League audits must include132.4audits of administrative regions of the league. The league and132.5its administrative regions may not contract with private132.6auditors. The scope of the state auditor's examinations of the132.7league must be agreed upon by the board and the state auditor,132.8provided that all requirements of this section must be met.132.9 (b) The administrative regions of the league may contract 132.10 with the state auditor or with a private certified public 132.11 accountant for the audit required by this section. If a private 132.12 certified public accountant performs the audit, the state 132.13 auditor may require additional information from the private 132.14 certified public accountant as the state auditor deems in the 132.15 public interest. The state auditor may accept the audit or make 132.16 additional examinations as the state auditor deems to be in the 132.17 public interest. 132.18 [EFFECTIVE DATE.] This section is effective the day 132.19 following final enactment. 132.20 Sec. 72. Minnesota Statutes 2004, section 128C.12, 132.21 subdivision 3, is amended to read: 132.22 Subd. 3. [COPIES.] Thestate auditorboard must file 132.23 copies of thefinancial and complianceaudit report with the 132.24 commissioner of education and the director of the Legislative 132.25 Reference Library. 132.26 [EFFECTIVE DATE.] This section is effective the day 132.27 following final enactment. 132.28 Sec. 73. [129C.105] [BOARD MEETINGS BY TELEPHONE OR OTHER 132.29 ELECTRONIC MEANS.] 132.30 (a) Notwithstanding section 13D.01 and if complying with 132.31 section 13D.02 is impractical, the board for the Perpich Center 132.32 for Arts Education may conduct a meeting of its members by 132.33 telephone or other electronic means so long as the following 132.34 conditions are met: 132.35 (1) all members of the board participating in the meeting, 132.36 wherever their physical location, can hear one another and all 133.1 discussion and testimony; 133.2 (2) members of the public present at the regular meeting 133.3 location of the board can hear all discussion and testimony and 133.4 all votes of members of the board; 133.5 (3) at least one member of the board is physically present 133.6 at the regular meeting location; and 133.7 (4) all votes are conducted by roll call, so each member's 133.8 vote on each issue can be identified and recorded. 133.9 (b) Each member of the board participating in a meeting by 133.10 telephone or other electronic means is considered present at the 133.11 meeting for purposes of determining a quorum and participating 133.12 in all proceedings. 133.13 (c) If telephone or other electronic means is used to 133.14 conduct a meeting, the board, to the extent practical, shall 133.15 allow a person to monitor the meeting electronically from a 133.16 remote location. The board may require the person making such a 133.17 connection to pay for documented marginal costs that the board 133.18 incurs as a result of the additional connection. 133.19 (d) If telephone or other electronic means is used to 133.20 conduct a regular, special, or emergency meeting, the board 133.21 shall provide notice of the regular meeting location, of the 133.22 fact that some members may participate by telephone or other 133.23 electronic means, and of the provisions of paragraph (c). The 133.24 timing and method of providing notice is governed by section 133.25 13D.04. 133.26 [EFFECTIVE DATE.] This section is effective the day 133.27 following final enactment. 133.28 Sec. 74. Minnesota Statutes 2004, section 171.04, 133.29 subdivision 1, is amended to read: 133.30 Subdivision 1. [PERSONS NOT ELIGIBLE.] The department 133.31 shall not issue a driver's license: 133.32 (1) to any person under 18 years unless: 133.33 (i) the applicant is 16 or 17 years of age and has a 133.34 previously issued valid license from another state or country or 133.35 the applicant has, for the 12 consecutive months preceding 133.36 application, held a provisional license and during that time has 134.1 incurred (A) no conviction for a violation of section 169A.20, 134.2 169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 134.3 conviction for a crash-related moving violation, and (C) not 134.4 more than one conviction for a moving violation that is not 134.5 crash related. "Moving violation" means a violation of a 134.6 traffic regulation but does not include a parking violation, 134.7 vehicle equipment violation, or warning citation; 134.8 (ii) the application for a license is approved by (A) 134.9 either parent when both reside in the same household as the 134.10 minor applicant or, if otherwise, then (B) the parent or spouse 134.11 of the parent having custody or, in the event there is no court 134.12 order for custody, then (C) the parent or spouse of the parent 134.13 with whom the minor is living or, if subitems (A) to (C) do not 134.14 apply, then (D) the guardian having custody of the minor or, in 134.15 the event a person under the age of 18 has no living father, 134.16 mother, or guardian, or is married or otherwise legally 134.17 emancipated, then (E) the minor's adult spouse, adult close 134.18 family member, or adult employer; provided, that the approval 134.19 required by this item contains a verification of the age of the 134.20 applicant and the identity of the parent, guardian, adult 134.21 spouse, adult close family member, or adult employer;and134.22 (iii) the applicant presents a certification by the person 134.23 who approves the application under item (ii), stating that the 134.24 applicant has driven a motor vehicle accompanied by and under 134.25 supervision of a licensed driver at least 21 years of age for at 134.26 least ten hours during the period of provisional licensure; and 134.27 (iv) the applicant certifies either (A) the applicant's 134.28 school attendance under section 171.056 and the district, 134.29 charter school, or alternative education program in which the 134.30 applicant is currently enrolled, or (B) that the enrolling 134.31 district, charter school, or alternative education program board 134.32 waived the attendance requirement under section 120A.23; 134.33 (2) to any person who is 18 years of age or younger, unless 134.34 the person has applied for, been issued, and possessed the 134.35 appropriate instruction permit for a minimum of six months, and, 134.36 with respect to a person under 18 years of age, a provisional 135.1 license for a minimum of 12 months; 135.2 (3) to any person who is 19 years of age or older, unless 135.3 that person has applied for, been issued, and possessed the 135.4 appropriate instruction permit for a minimum of three months; 135.5 (4) to any person whose license has been suspended during 135.6 the period of suspension except that a suspended license may be 135.7 reinstated during the period of suspension upon the licensee 135.8 furnishing proof of financial responsibility in the same manner 135.9 as provided in the Minnesota No-Fault Automobile Insurance Act; 135.10 (5) to any person whose license has been revoked except 135.11 upon furnishing proof of financial responsibility in the same 135.12 manner as provided in the Minnesota No-Fault Automobile 135.13 Insurance Act and if otherwise qualified; 135.14 (6) to any drug-dependent person, as defined in section 135.15 254A.02, subdivision 5; 135.16 (7) to any person who has been adjudged legally incompetent 135.17 by reason of mental illness, mental deficiency, or inebriation, 135.18 and has not been restored to capacity, unless the department is 135.19 satisfied that the person is competent to operate a motor 135.20 vehicle with safety to persons or property; 135.21 (8) to any person who is required by this chapter to take a 135.22 vision, knowledge, or road examination, unless the person has 135.23 successfully passed the examination. An applicant who fails 135.24 four road tests must complete a minimum of six hours of 135.25 behind-the-wheel instruction with an approved instructor before 135.26 taking the road test again; 135.27 (9) to any person who is required under the Minnesota 135.28 No-Fault Automobile Insurance Act to deposit proof of financial 135.29 responsibility and who has not deposited the proof; 135.30 (10) to any person when the commissioner has good cause to 135.31 believe that the operation of a motor vehicle on the highways by 135.32 the person would be inimical to public safety or welfare; 135.33 (11) to any person when, in the opinion of the 135.34 commissioner, the person is afflicted with or suffering from a 135.35 physical or mental disability or disease that will affect the 135.36 person in a manner as to prevent the person from exercising 136.1 reasonable and ordinary control over a motor vehicle while 136.2 operating it upon the highways; 136.3 (12) to a person who is unable to read and understand 136.4 official signs regulating, warning, and directing traffic; 136.5 (13) to a child for whom a court has ordered denial of 136.6 driving privileges under section 260C.201, subdivision 1, or 136.7 260B.235, subdivision 5, until the period of denial is 136.8 completed; or 136.9 (14) to any person whose license has been canceled, during 136.10 the period of cancellation. 136.11 [EFFECTIVE DATE.] This section is effective September 1, 136.12 2005, and applies to all persons under age 18 possessing or 136.13 applying for a driver's instruction permit or provisional 136.14 license on or after that date. 136.15 Sec. 75. Minnesota Statutes 2004, section 171.05, 136.16 subdivision 2, is amended to read: 136.17 Subd. 2. [PERSON LESS THAN 18 YEARS OF AGE.] (a) 136.18 Notwithstanding any provision in subdivision 1 to the contrary, 136.19 the department may issue an instruction permit to an applicant 136.20 who is 15, 16, or 17 years of age and who: 136.21 (1) has completed a course of driver education in another 136.22 state, has a previously issued valid license from another state, 136.23 or is enrolled in either: 136.24 (i) a public, private, or commercial driver education 136.25 program that is approved by the commissioner of public safety 136.26 and that includes classroom and behind-the-wheel training; or 136.27 (ii) an approved behind-the-wheel driver education program 136.28 when the student is receiving full-time instruction in a home 136.29 school within the meaning of sections 120A.22 and 120A.24, the 136.30 student is working toward a homeschool diploma, the student's 136.31 status as a homeschool student has been certified by the 136.32 superintendent of the school district in which the student 136.33 resides, and the student is taking home-classroom driver 136.34 training with classroom materials approved by the commissioner 136.35 of public safety; 136.36 (2) has completed the classroom phase of instruction in the 137.1 driver education program; 137.2 (3) has passed a test of the applicant's eyesight; 137.3 (4) has passed a department-administered test of the 137.4 applicant's knowledge of traffic laws; 137.5 (5) has completed the required application, which must be 137.6 approved by (i) either parent when both reside in the same 137.7 household as the minor applicant or, if otherwise, then (ii) the 137.8 parent or spouse of the parent having custody or, in the event 137.9 there is no court order for custody, then (iii) the parent or 137.10 spouse of the parent with whom the minor is living or, if items 137.11 (i) to (iii) do not apply, then (iv) the guardian having custody 137.12 of the minor or, in the event a person under the age of 18 has 137.13 no living father, mother, or guardian, or is married or 137.14 otherwise legally emancipated, then (v) the applicant's adult 137.15 spouse, adult close family member, or adult employer; provided, 137.16 that the approval required by this clause contains a 137.17 verification of the age of the applicant and the identity of the 137.18 parent, guardian, adult spouse, adult close family member, or 137.19 adult employer;and137.20 (6) certifies either (i) the applicant's school attendance 137.21 under section 171.056 and the district, charter school, or 137.22 alternative education program in which the applicant is 137.23 currently enrolled, or (ii) that the enrolling district, charter 137.24 school, or alternative education program board waived the 137.25 attendance requirement under section 120A.23; and 137.26 (7) has paid the fee required in section 171.06, 137.27 subdivision 2. 137.28 (b) The instruction permit is valid for one year from the 137.29 date of application and may be renewed upon payment of a fee 137.30 equal to the fee for issuance of an instruction permit under 137.31 section 171.06, subdivision 2. 137.32 [EFFECTIVE DATE.] This section is effective September 1, 137.33 2005, and applies to all persons under age 18 possessing or 137.34 applying for a driver's instruction permit on or after that date. 137.35 Sec. 76. Minnesota Statutes 2004, section 171.05, 137.36 subdivision 2b, is amended to read: 138.1 Subd. 2b. [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 138.2 (a) This subdivision applies to persons who have applied for and 138.3 received an instruction permit under subdivision 2. 138.4 (b) The permit holder may, with the permit in possession, 138.5 operate a motor vehicle, but must be accompanied by and be under 138.6 the supervision of a certified driver education instructor, the 138.7 permit holder's parent or guardian, or another licensed driver 138.8 age 21 or older. The supervisor must occupy the seat beside the 138.9 permit holder. 138.10 (c) The permit holder may operate a motor vehicle only when 138.11 every occupant under the age of 18 has a seat belt or child 138.12 passenger restraint system properly fastened. A person who 138.13 violates this paragraph is subject to a fine of $25. A peace 138.14 officer may not issue a citation for a violation of this 138.15 paragraph unless the officer lawfully stopped or detained the 138.16 driver of the motor vehicle for a moving violation as defined in 138.17 section 171.04, subdivision 1. The commissioner shall not 138.18 record a violation of this paragraph on a person's driving 138.19 record. 138.20 (d) The permit holder must maintain a driving record free 138.21 of convictions for moving violations, as defined in section 138.22 171.04, subdivision 1, and free of convictions for violation of 138.23 section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 138.24 169A.53. If the permit holder drives a motor vehicle in 138.25 violation of the law, the commissioner shall suspend, cancel, or 138.26 revoke the permit in accordance with the statutory section 138.27 violated. 138.28 (e) The permit holder must comply with the school 138.29 attendance requirement under section 171.056, except when the 138.30 attendance requirement is waived under section 120A.23. If the 138.31 permit holder does not attend school as required, the 138.32 commissioner must cancel the permit under section 171.056. 138.33 [EFFECTIVE DATE.] This section is effective September 1, 138.34 2005, and applies to all persons under age 18 possessing or 138.35 applying for a driver's instruction permit on or after that date. 138.36 Sec. 77. Minnesota Statutes 2004, section 171.05, 139.1 subdivision 3, is amended to read: 139.2 Subd. 3. [MOTORIZED BICYCLE.] Notwithstanding any 139.3 provision in subdivision 1 to the contrary, the department, upon 139.4 application and payment of the fee prescribed in section 171.02, 139.5 subdivision 3, may issue a motorized bicycle instruction permit 139.6 to an applicant who is 15 years of ageand, who has successfully 139.7 completed the written portion of the examination prescribed by 139.8 the commissioner, and who certifies either (1) the applicant's 139.9 school attendance under section 171.056 and the district, 139.10 charter school, or alternative education program in which the 139.11 applicant is currently enrolled, or (2) that the enrolling 139.12 district, charter school, or alternative education program board 139.13 waived the attendance requirement under section 120A.23. The 139.14 holder of this instruction permit who has the permit in 139.15 possession may operate a motorized bicycle within one mile of 139.16 the holder's residence for the purpose of practicing to take the 139.17 operator portion of the examination prescribed by the 139.18 commissioner. 139.19 [EFFECTIVE DATE.] This section is effective September 1, 139.20 2005, and applies to all persons under age 18 possessing or 139.21 applying for a motorized bicycle instruction permit on or after 139.22 that date. 139.23 Sec. 78. [171.056] [SCHOOL ATTENDANCE REQUIREMENT FOR 139.24 DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 139.25 PROVISIONAL LICENSE.] 139.26 Subdivision 1. [DEFINITIONS.] (a) As used in this section 139.27 the terms defined in this subdivision have the meanings given 139.28 them. 139.29 (b) "Continuing truant" means a student under section 139.30 260A.02, subdivision 3, who is absent without valid excuse from 139.31 instruction in a school. 139.32 (c) "Habitual truant" means a person under section 139.33 260C.007, subdivision 19, who is absent without lawful excuse 139.34 from attendance at school. 139.35 (d) "High school diploma" means an official record or 139.36 document indicating that the student has satisfied the 140.1 graduation requirements of that school as defined under section 140.2 120A.22, subdivision 4. 140.3 (e) "Public school" means a public school, state approved 140.4 alternative program (SAAP), or charter school. 140.5 (f) "School board" means a public school district school 140.6 board, SAAP board, or charter school board of directors. 140.7 (g) "School principal" means a principal or chief 140.8 administrative officer of a public school. 140.9 Subd. 2. [ISSUANCE OR RENEWAL OF DRIVER'S INSTRUCTION 140.10 PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 140.11 Notwithstanding any law to the contrary, except when the 140.12 attendance requirement is waived under section 120A.23, school 140.13 attendance is a requirement for issuing a new driver's 140.14 instruction permit, motorized bicycle permit, or provisional 140.15 license or renewing the permit of a person under age 18. The 140.16 person meets the school attendance requirement when the person: 140.17 (1) has a high school diploma or general education 140.18 development certificate (GED); 140.19 (2) has withdrawn from school under section 120A.22, 140.20 subdivision 8; or 140.21 (3) is enrolled and attending a public school and is not a 140.22 continuing truant or habitually truant, is enrolled and 140.23 attending a nonpublic school, or is homeschooled. 140.24 (b) A person under age 18 who applies for a motorized 140.25 bicycle permit, instruction permit, or provisional license must 140.26 submit information to the Department of Public Safety in the 140.27 manner and format it prescribes documenting that the person has 140.28 met the requirements of paragraph (a). 140.29 Subd. 3. [EXPUNGEMENT OF RECORD.] Upon receiving the 140.30 written or electronic request of a student who is age 18 or 140.31 older, the Department of Public Safety must expunge from the 140.32 department's motor vehicle records all the student's truancy 140.33 data related to the department refusing to issue or canceling 140.34 the student's permit or license under this section. 140.35 [EFFECTIVE DATE.] This section is effective September 1, 140.36 2005, and applies to all persons under age 18 possessing or 141.1 applying for a motorized bicycle permit, driver's instruction 141.2 permit, or provisional license on or after that date. 141.3 Sec. 79. [179A.145] [PERIOD DURING WHICH NEGOTIATIONS ARE 141.4 PROHIBITED; FINANCIAL PENALTY FOR FAILING TO SETTLE.] 141.5 Subdivision 1. [PROHIBITION; FINANCIAL INCENTIVE AND 141.6 PENALTY.] (a) A school board and the exclusive representative of 141.7 the teachers in a district may not meet and negotiate and may 141.8 not enter into a contract during the period beginning November 141.9 15 and ending with the last student contact day the next spring 141.10 in the even-numbered year and ending March 1 in the odd-numbered 141.11 year. 141.12 (b) Notwithstanding paragraph (a), a school board and the 141.13 exclusive representative of the teachers may mutually agree to 141.14 meet and negotiate an agreement or contract, meet and confer 141.15 under section 179A.03, subdivision 10, negotiate a memorandum of 141.16 understanding or meet for another particular purpose after 141.17 November 15. 141.18 (c) If the school board and the exclusive representative of 141.19 the teachers in a district fail to enter into a contract before 141.20 November 15 or 90 days after the date on which the governor 141.21 signs the bill providing for elementary and secondary school 141.22 funding, whichever is later, unless subdivision 2 applies, the 141.23 education commissioner must withhold from the district all 141.24 district basic revenue increases under section 126C.10 that are 141.25 allowed over the previous fiscal year until the school board and 141.26 the exclusive representative of the teachers enter into a 141.27 contract. 141.28 Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply: 141.29 (1) if the school board and the exclusive representative of 141.30 teachers certify in writing to the commissioner of mediation 141.31 services that they have entered into a tentative agreement 141.32 before November 15, to the extent the parties enter into a final 141.33 contract based on the tentative agreement certified to the 141.34 commissioner; 141.35 (2) if the school board and the exclusive representative 141.36 agree, before November 15, to binding interest arbitration of 142.1 items in dispute, to the extent the parties enter into a 142.2 contract to confirm the results of the arbitrator's decision; 142.3 (3) if the teachers in the district are on strike on 142.4 November 15; or 142.5 (4) the commissioner has approved the district's 142.6 application to participate in an alternative teacher 142.7 professional pay system under sections 122A.414 and 122A.415. 142.8 Subd. 3. [RELATION TO OTHER LAW.] This section supersedes 142.9 any conflicting provisions of other law. 142.10 [EFFECTIVE DATE.] This section is effective July 1, 2007. 142.11 Sec. 80. Minnesota Statutes 2004, section 260C.007, 142.12 subdivision 6, is amended to read: 142.13 Subd. 6. [CHILD IN NEED OF PROTECTION OR SERVICES.] "Child 142.14 in need of protection or services" means a child who is in need 142.15 of protection or services because the child: 142.16 (1) is abandoned or without parent, guardian, or custodian; 142.17 (2)(i) has been a victim of physical or sexual abuse, (ii) 142.18 resides with or has resided with a victim of domestic child 142.19 abuse as defined in subdivision 5, (iii) resides with or would 142.20 reside with a perpetrator of domestic child abuse or child abuse 142.21 as defined in subdivision 5, or (iv) is a victim of emotional 142.22 maltreatment as defined in subdivision 8; 142.23 (3) is without necessary food, clothing, shelter, 142.24 education, or other required care for the child's physical or 142.25 mental health or morals because the child's parent, guardian, or 142.26 custodian is unable or unwilling to provide that care; 142.27 (4) is without the special care made necessary by a 142.28 physical, mental, or emotional condition because the child's 142.29 parent, guardian, or custodian is unable or unwilling to provide 142.30 that care, including a child in voluntary placement due solely 142.31 to the child's developmental disability or emotional 142.32 disturbance; 142.33 (5) is medically neglected, which includes, but is not 142.34 limited to, the withholding of medically indicated treatment 142.35 from a disabled infant with a life-threatening condition. The 142.36 term "withholding of medically indicated treatment" means the 143.1 failure to respond to the infant's life-threatening conditions 143.2 by providing treatment, including appropriate nutrition, 143.3 hydration, and medication which, in the treating physician's or 143.4 physicians' reasonable medical judgment, will be most likely to 143.5 be effective in ameliorating or correcting all conditions, 143.6 except that the term does not include the failure to provide 143.7 treatment other than appropriate nutrition, hydration, or 143.8 medication to an infant when, in the treating physician's or 143.9 physicians' reasonable medical judgment: 143.10 (i) the infant is chronically and irreversibly comatose; 143.11 (ii) the provision of the treatment would merely prolong 143.12 dying, not be effective in ameliorating or correcting all of the 143.13 infant's life-threatening conditions, or otherwise be futile in 143.14 terms of the survival of the infant; or 143.15 (iii) the provision of the treatment would be virtually 143.16 futile in terms of the survival of the infant and the treatment 143.17 itself under the circumstances would be inhumane; 143.18 (6) is one whose parent, guardian, or other custodian for 143.19 good cause desires to be relieved of the child's care and 143.20 custody, including a child in placement according to voluntary 143.21 release by the parent under section 260C.212, subdivision 8; 143.22 (7) has been placed for adoption or care in violation of 143.23 law; 143.24 (8) is without proper parental care because of the 143.25 emotional, mental, or physical disability, or state of 143.26 immaturity of the child's parent, guardian, or other custodian; 143.27 (9) is one whose behavior, condition, or environment is 143.28 such as to be injurious or dangerous to the child or others. An 143.29 injurious or dangerous environment may include, but is not 143.30 limited to, the exposure of a child to criminal activity in the 143.31 child's home; 143.32 (10) is experiencing growth delays, which may be referred 143.33 to as failure to thrive, that have been diagnosed by a physician 143.34 and are due to parental neglect; 143.35 (11) has engaged in prostitution as defined in section 143.36 609.321, subdivision 9; 144.1 (12) has committed a delinquent act or a juvenile petty 144.2 offense before becoming ten years old; 144.3 (13) is a runaway; 144.4 (14) is a continuing or habitual truant; 144.5 (15) has been found incompetent to proceed or has been 144.6 found not guilty by reason of mental illness or mental 144.7 deficiency in connection with a delinquency proceeding, a 144.8 certification under section 260B.125, an extended jurisdiction 144.9 juvenile prosecution, or a proceeding involving a juvenile petty 144.10 offense; or 144.11 (16) has been found by the court to have committed domestic 144.12 abuse perpetrated by a minor under Laws 1997, chapter 239, 144.13 article 10, sections 2 to 26, has been ordered excluded from the 144.14 child's parent's home by an order for protection/minor 144.15 respondent, and the parent or guardian is either unwilling or 144.16 unable to provide an alternative safe living arrangement for the 144.17 child. 144.18 [EFFECTIVE DATE.] This section is effective July 1, 2005. 144.19 Sec. 81. Minnesota Statutes 2004, section 260C.007, is 144.20 amended by adding a subdivision to read: 144.21 Subd. 8a. [CONTINUING TRUANT.] "Continuing truant" means a 144.22 student under section 260A.02, subdivision 3, who is absent 144.23 without valid excuse from instruction in a school. 144.24 [EFFECTIVE DATE.] This section is effective July 1, 2005. 144.25 Sec. 82. Minnesota Statutes 2004, section 260C.201, 144.26 subdivision 1, is amended to read: 144.27 Subdivision 1. [DISPOSITIONS.] (a) If the court finds that 144.28 the child is in need of protection or services or neglected and 144.29 in foster care, it shall enter an order making any of the 144.30 following dispositions of the case: 144.31 (1) place the child under the protective supervision of the 144.32 responsible social services agency or child-placing agency in 144.33 the home of a parent of the child under conditions prescribed by 144.34 the court directed to the correction of the child's need for 144.35 protection or services: 144.36 (i) the court may order the child into the home of a parent 145.1 who does not otherwise have legal custody of the child, however, 145.2 an order under this section does not confer legal custody on 145.3 that parent; 145.4 (ii) if the court orders the child into the home of a 145.5 father who is not adjudicated, he must cooperate with paternity 145.6 establishment proceedings regarding the child in the appropriate 145.7 jurisdiction as one of the conditions prescribed by the court 145.8 for the child to continue in his home; 145.9 (iii) the court may order the child into the home of a 145.10 noncustodial parent with conditions and may also order both the 145.11 noncustodial and the custodial parent to comply with the 145.12 requirements of a case plan under subdivision 2; or 145.13 (2) transfer legal custody to one of the following: 145.14 (i) a child-placing agency; or 145.15 (ii) the responsible social services agency. In placing a 145.16 child whose custody has been transferred under this paragraph, 145.17 the agencies shall make an individualized determination of how 145.18 the placement is in the child's best interests using the 145.19 consideration for relatives and the best interest factors in 145.20 section 260C.212, subdivision 2, paragraph (b); or 145.21 (3) if the child has been adjudicated as a child in need of 145.22 protection or services because the child is in need of special 145.23 services or care to treat or ameliorate a physical or mental 145.24 disability, the court may order the child's parent, guardian, or 145.25 custodian to provide it. The court may order the child's health 145.26 plan company to provide mental health services to the child. 145.27 Section 62Q.535 applies to an order for mental health services 145.28 directed to the child's health plan company. If the health 145.29 plan, parent, guardian, or custodian fails or is unable to 145.30 provide this treatment or care, the court may order it 145.31 provided. Absent specific written findings by the court that 145.32 the child's disability is the result of abuse or neglect by the 145.33 child's parent or guardian, the court shall not transfer legal 145.34 custody of the child for the purpose of obtaining special 145.35 treatment or care solely because the parent is unable to provide 145.36 the treatment or care. If the court's order for mental health 146.1 treatment is based on a diagnosis made by a treatment 146.2 professional, the court may order that the diagnosing 146.3 professional not provide the treatment to the child if it finds 146.4 that such an order is in the child's best interests; or 146.5 (4) if the court believes that the child has sufficient 146.6 maturity and judgment and that it is in the best interests of 146.7 the child, the court may order a child 16 years old or older to 146.8 be allowed to live independently, either alone or with others as 146.9 approved by the court under supervision the court considers 146.10 appropriate, if the county board, after consultation with the 146.11 court, has specifically authorized this dispositional 146.12 alternative for a child. 146.13 (b) If the child was adjudicated in need of protection or 146.14 services because the child is a runaway, or is a continuing or 146.15 habitual truant, the court may order any of the following 146.16 dispositions in addition to or as alternatives to the 146.17 dispositions authorized under paragraph (a): 146.18 (1) counsel the child or the child's parents, guardian, or 146.19 custodian; 146.20 (2) place the child under the supervision of a probation 146.21 officer or other suitable person in the child's own home under 146.22 conditions prescribed by the court, including reasonable rules 146.23 for the child's conduct and the conduct of the parents, 146.24 guardian, or custodian, designed for the physical, mental, and 146.25 moral well-being and behavior of the child; or with the consent 146.26 of the commissioner of corrections, place the child in a group 146.27 foster care facility which is under the commissioner's 146.28 management and supervision; 146.29 (3) subject to the court's supervision, transfer legal 146.30 custody of the child to one of the following: 146.31 (i) a reputable person of good moral character. No person 146.32 may receive custody of two or more unrelated children unless 146.33 licensed to operate a residential program under sections 245A.01 146.34 to 245A.16; or 146.35 (ii) a county probation officer for placement in a group 146.36 foster home established under the direction of the juvenile 147.1 court and licensed pursuant to section 241.021; 147.2 (4) require the child to pay a fine of up to $100. The 147.3 court shall order payment of the fine in a manner that will not 147.4 impose undue financial hardship upon the child; 147.5 (5) require the child to participate in a community service 147.6 project; 147.7 (6) order the child to undergo a chemical dependency 147.8 evaluation and, if warranted by the evaluation, order 147.9 participation by the child in a drug awareness program or an 147.10 inpatient or outpatient chemical dependency treatment program; 147.11 (7) if the court believes that it is in the best interests 147.12 of the childandor of public safety that the child's driver's 147.13 license or instruction permit be canceled, the court may order 147.14 the commissioner of public safety to cancel the child's license 147.15 or permit for any period up to the child's 18th birthday. If 147.16 the child does not have a driver's license or permit, the court 147.17 may order a denial of driving privileges for any period up to 147.18 the child's 18th birthday. If the child is a continuing or 147.19 habitual truant, the court must cancel the child's driving 147.20 privileges. The court shall forward an order issued under this 147.21 clause to the commissioner, who shall cancel the license or 147.22 permit or deny driving privileges without a hearing for the 147.23 period specified by the court. At any time before the 147.24 expiration of the period of cancellation or denial, the court 147.25 may, for good cause, order the commissioner of public safety to 147.26 allow the child to apply for a license or permit, and the 147.27 commissioner shall so authorize; 147.28 (8) order that the child's parent or legal guardian deliver 147.29 the child to school at the beginning of each school day for a 147.30 period of time specified by the court; or 147.31 (9) require the child to perform any other activities or 147.32 participate in any other treatment programs deemed appropriate 147.33 by the court. 147.34 To the extent practicable, the court shall enter a 147.35 disposition order the same day it makes a finding that a child 147.36 is in need of protection or services or neglected and in foster 148.1 care, but in no event more than 15 days after the finding unless 148.2 the court finds that the best interests of the child will be 148.3 served by granting a delay. If the child was under eight years 148.4 of age at the time the petition was filed, the disposition order 148.5 must be entered within ten days of the finding and the court may 148.6 not grant a delay unless good cause is shown and the court finds 148.7 the best interests of the child will be served by the delay. 148.8 (c) If a child who is 14 years of age or older is 148.9 adjudicated in need of protection or services because the child 148.10 is a habitual truant and truancy procedures involving the child 148.11 were previously dealt with by a school attendance review board 148.12 or county attorney mediation program under section 260A.06 or 148.13 260A.07, the court shall order a cancellation or denial of 148.14 driving privileges under paragraph (b), clause (7), for any 148.15 period up to the child's 18th birthday. 148.16 (d) In the case of a child adjudicated in need of 148.17 protection or services because the child has committed domestic 148.18 abuse and been ordered excluded from the child's parent's home, 148.19 the court shall dismiss jurisdiction if the court, at any time, 148.20 finds the parent is able or willing to provide an alternative 148.21 safe living arrangement for the child, as defined in Laws 1997, 148.22 chapter 239, article 10, section 2. 148.23 (e) When a parent has complied with a case plan ordered 148.24 under subdivision 6 and the child is in the care of the parent, 148.25 the court may order the responsible social services agency to 148.26 monitor the parent's continued ability to maintain the child 148.27 safely in the home under such terms and conditions as the court 148.28 determines appropriate under the circumstances. 148.29 [EFFECTIVE DATE.] This section is effective July 1, 2005. 148.30 Sec. 83. [BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 148.31 AUTHORITY.] 148.32 On or before June 30, 2007, the Board of School 148.33 Administrators may adopt expedited rules under Minnesota 148.34 Statutes, section 14.389, to make technical revisions and 148.35 clarifications to Minnesota Rules, chapter 3512. 148.36 Sec. 84. [CAREER AND TECHNICAL EDUCATION PROGRAM RULES.] 149.1 By January 1, 2007, the commissioner of education must 149.2 adopt rules for approval of career and technical education 149.3 programs consistent with Minnesota Statutes, section 124D.4531, 149.4 subdivisions 4 and 6, that emphasize emerging workforce skills. 149.5 Program approval for fiscal year 2008 and later must be based on 149.6 the rules. 149.7 Sec. 85. [MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.] 149.8 The commissioner of education shall adopt rules on or 149.9 before January 1, 2006, to implement the Minnesota Comprehensive 149.10 Assessments Second Edition (MCA-IIs) in reading, mathematics, 149.11 and writing. For purposes of state and local high school 149.12 graduation requirements, and consistent with applicable federal 149.13 and state law, the rules must include criteria and an 149.14 alternative assessment process to enable school districts to 149.15 accommodate students, including at least students with 149.16 disabilities, English language learners, and students performing 149.17 below their grade level, who do not receive a passing score on 149.18 the Minnesota Comprehensive Assessments Second Edition. 149.19 Sec. 86. [TITLE.] 149.20 Minnesota Statutes, section 120B.25, shall be known as the 149.21 American Heritage Education in Minnesota Public Schools Act. 149.22 [EFFECTIVE DATE.] This section is effective the day 149.23 following final enactment. 149.24 Sec. 87. [STUDY; SPONSOR EVALUATION AND CHARGES.] 149.25 The Department of Education by December 31, 2005, after 149.26 consulting with representatives of charter schools and charter 149.27 school sponsors, must submit to the legislature recommendations 149.28 on how a charter school sponsor effectively evaluates the 149.29 performance of a charter school under Minnesota Statutes, 149.30 section 124D.10, subdivision 15, and what annual fees a sponsor 149.31 may charge for that evaluation. 149.32 Sec. 88. [MODEL POLICY.] 149.33 The commissioner of education, after consulting with 149.34 representatives of teachers, school administrators, parents, 149.35 students, student support service providers, law enforcement 149.36 officials, community service providers, and the juvenile justice 150.1 and district court systems, must develop and make available upon 150.2 request to interested school boards a model policy to effect a 150.3 reward for information about persons committing crimes against 150.4 students, school employees, school volunteers, school board 150.5 members, or school property, consistent with section 123B.02, 150.6 subdivision 22. 150.7 [EFFECTIVE DATE.] This section is effective the day 150.8 following final enactment. 150.9 Sec. 89. [SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 150.10 PAY.] 150.11 Notwithstanding Minnesota Statutes, section 179A.20, or 150.12 other law to the contrary, a school board and the exclusive 150.13 representative of the teachers that enter into a collective 150.14 bargaining agreement for the period July 1, 2005, to June 30, 150.15 2007, before the effective date of this act may enter into a 150.16 supplemental agreement solely for the purpose of complying with 150.17 the alternative teacher pay provisions under Minnesota Statutes, 150.18 sections 122A.414 and 122A.415. 150.19 [EFFECTIVE DATE.] This section is effective the day 150.20 following final enactment. 150.21 Sec. 90. [APPROPRIATIONS.] 150.22 Subdivision 1. [DEPARTMENT.] The sums indicated in this 150.23 section are appropriated from the general fund to the Department 150.24 of Education for the fiscal years designated. 150.25 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 150.26 lease aid under Minnesota Statutes, section 124D.11, subdivision 150.27 4: 150.28 $25,465,000 ..... 2006 150.29 $30,929,000 ..... 2007 150.30 The 2006 appropriation includes $3,324,000 for 2005 and 150.31 $22,141,000 for 2006. 150.32 The 2007 appropriation includes $4,123,000 for 2006 and 150.33 $26,806,000 for 2007. 150.34 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 150.35 startup cost aid under Minnesota Statutes, section 124D.11: 150.36 $1,393,000 ..... 2006 151.1 $3,185,000 ..... 2007 151.2 The 2006 appropriation includes $0 for 2005 and $1,393,000 151.3 for 2006. 151.4 The 2007 appropriation includes $259,000 for 2006 and 151.5 $2,926,000 for 2007. 151.6 Subd. 4. [INTEGRATION AID.] For integration aid under 151.7 Minnesota Statutes, section 124D.86, subdivision 5: 151.8 $57,812,000 ..... 2006 151.9 $57,556,000 ..... 2007 151.10 The 2006 appropriation includes $8,545,000 for 2005 and 151.11 $49,267,000 for 2006. 151.12 The 2007 appropriation includes $9,174,000 for 2006 and 151.13 $48,382,000 for 2007. 151.14 Subd. 5. [MAGNET SCHOOL GRANTS.] For magnet school and 151.15 program grants: 151.16 $ 750,000 ..... 2006 151.17 $ 750,000 ..... 2007 151.18 These amounts may be used for magnet school programs under 151.19 Minnesota Statutes, section 124D.88. 151.20 Subd. 6. [INTERDISTRICT DESEGREGATION OR INTEGRATION 151.21 TRANSPORTATION GRANTS.] For interdistrict desegregation or 151.22 integration transportation grants under Minnesota Statutes, 151.23 section 124D.87: 151.24 $7,768,000 ..... 2006 151.25 $9,908,000 ..... 2007 151.26 Subd. 7. [SUCCESS FOR THE FUTURE.] For American Indian 151.27 success for the future grants under Minnesota Statutes, section 151.28 124D.81: 151.29 $2,137,000 ..... 2006 151.30 $2,137,000 ..... 2007 151.31 The 2006 appropriation includes $335,000 for 2005 and 151.32 $1,802,000 for 2006. 151.33 The 2007 appropriation includes $335,000 for 2006 and 151.34 $1,802,000 for 2007. 151.35 Subd. 8. [AMERICAN INDIAN SCHOLARSHIPS.] For American 151.36 Indian scholarships under Minnesota Statutes, section 124D.84: 152.1 $1,875,000 ..... 2006 152.2 $1,875,000 ..... 2007 152.3 Subd. 9. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] For 152.4 joint grants to assist American Indian people to become teachers 152.5 under Minnesota Statutes, section 122A.63: 152.6 $ 190,000 ..... 2006 152.7 $ 190,000 ..... 2007 152.8 Subd. 10. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 152.9 school aid under Minnesota Statutes, section 124D.83: 152.10 $2,372,000 ..... 2006 152.11 $2,559,000 ..... 2007 152.12 The 2006 appropriation includes $348,000 for 2005 and 152.13 $2,024,000 for 2006. 152.14 The 2007 appropriation includes $376,000 for 2006 and 152.15 $2,183,000 for 2007. 152.16 Subd. 11. [EARLY CHILDHOOD PROGRAMS AT TRIBAL 152.17 SCHOOLS.] For early childhood family education programs at 152.18 tribal contract schools under Minnesota Statutes, section 152.19 124D.83, subdivision 4: 152.20 $ 68,000 ..... 2006 152.21 $ 68,000 ..... 2007 152.22 Subd. 12. [STATEWIDE TESTING.] For statewide testing 152.23 support under Minnesota Statutes, section 120B.30: 152.24 $10,200,000 ..... 2006 152.25 $10,200,000 ..... 2007 152.26 Of this appropriation, $1,200,000 each year is for 152.27 development of interactive science assessments. 152.28 Subd. 13. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 152.29 PROGRAMS.] For student examination fees and training and related 152.30 costs for teachers and other interested educators under 152.31 Minnesota Statutes, section 120B.13: 152.32 $2,500,000 ..... 2006 152.33 $2,500,000 ..... 2007 152.34 The advanced placement program shall receive 90 percent of 152.35 the appropriation each year and the international baccalaureate 152.36 program shall receive ten percent of the appropriation each 153.1 year. The department, in consultation with representatives of 153.2 the advanced placement and international baccalaureate programs 153.3 selected by the Advanced Placement Advisory Council and IBMN, 153.4 respectively, shall determine the amounts of the expenditures 153.5 each year for examination fees and training and support programs. 153.6 Any balance in the first year does not cancel but is 153.7 available in the second year. 153.8 Subd. 14. [FIRST GRADE PREPAREDNESS.] For first grade 153.9 preparedness grants under Minnesota Statutes, section 124D.081: 153.10 $7,250,000 ..... 2006 153.11 $7,250,000 ..... 2007 153.12 Subd. 15. [COLLABORATIVE URBAN EDUCATOR.] For the 153.13 collaborative urban educator program: 153.14 $ 528,000 ..... 2006 153.15 $ 528,000 ..... 2007 153.16 Subd. 16. [YOUTH WORKS PROGRAM.] For funding youth works 153.17 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 153.18 $ 900,000 ..... 2006 153.19 $ 900,000 ..... 2007 153.20 A grantee organization may provide health and child care 153.21 coverage to the dependents of each participant enrolled in a 153.22 full-time youth works program to the extent such coverage is not 153.23 otherwise available. 153.24 Subd. 17. [STUDENT ORGANIZATIONS.] For student 153.25 organizations: 153.26 $ 625,000 ..... 2006 153.27 $ 625,000 ..... 2007 153.28 Subd. 18. [EDUCATION PLANNING AND ASSESSMENT PROGRAM.] For 153.29 the Educational Planning and Assessment (EPAS) program under 153.30 Minnesota Statutes, section 120B.128: 153.31 $ 829,000 ..... 2006 153.32 $ 829,000 ..... 2007 153.33 Subd. 19. [COLLEGE LEVEL EXAMINATION PROGRAM (CLEP).] For 153.34 the College Level Examination program (CLEP) under Minnesota 153.35 Statutes, section 120B.131: 153.36 $ 825,000 ..... 2006 154.1 $1,650,000 ..... 2007 154.2 Subd. 20. [CAREER AND TECHNICAL EDUCATION GRANTS.] For 154.3 career and technical education grants: 154.4 $1,000,000 ..... 2006 154.5 $1,000,000 ..... 2007 154.6 This appropriation is for grants to school districts to 154.7 establish emerging technology demonstration programs for 154.8 students in grades 7 through 9. The commissioner shall 154.9 prescribe the form and manner of grant applications, and shall 154.10 make up to 20 grant awards each year of the biennium. The grant 154.11 award process must take into consideration regional 154.12 distribution, district instructional history with emerging 154.13 technologies, plans to link the program with high school 154.14 emerging technology programs, ability to provide local matching 154.15 funds, and plans to serve as a demonstration program. 154.16 Any balance in the first year does not cancel but is 154.17 available in the second year. This is a onetime appropriation. 154.18 Subd. 21. [MINNESOTA LEARNING RESOURCE CENTER.] For a 154.19 grant to A Chance to Grow/New Visions for the Minnesota Learning 154.20 Resource Center's comprehensive training program for education 154.21 professionals charged with helping children acquire basic 154.22 reading and math skills: 154.23 $125,000 ..... 2006 154.24 $125,000 ..... 2007 154.25 This is a onetime appropriation. 154.26 Subd. 22. [TEACHER PROFESSIONAL DEVELOPMENT.] For a grant 154.27 to the Minnesota Humanities Commission to provide content-based 154.28 professional development for teachers: 154.29 $500,000 ..... 2006 154.30 $500,000 ..... 2007 154.31 This is a onetime appropriation. 154.32 Subd. 23. [MINNESOTA HISTORICAL SOCIETY.] For a grant to 154.33 the Minnesota Historical Society to provide teacher professional 154.34 development: 154.35 $100,000 ..... 2006 154.36 $100,000 ..... 2007 155.1 This is a onetime appropriation. 155.2 Sec. 91. [REPEALER.] 155.3 (a) Minnesota Statutes 2004, section 124D.095, is repealed. 155.4 (b) Minnesota Statutes 2004, section 128C.12, subdivision 155.5 4, is repealed. 155.6 [EFFECTIVE DATE.] This section, paragraph (a), is effective 155.7 for revenue for fiscal year 2006. This section, paragraph (b), 155.8 is effective the day following final enactment. 155.9 ARTICLE 3 155.10 SPECIAL PROGRAMS 155.11 Section 1. Minnesota Statutes 2004, section 124D.11, 155.12 subdivision 5, is amended to read: 155.13 Subd. 5. [SPECIAL EDUCATION AID.] (a) Except as provided 155.14 in subdivision 2, special education aid must be paid to a 155.15 charter school according to section 125A.76, as though it were a 155.16 school district. 155.17 (b) For fiscal year 2006, the charter school may charge 155.18 tuition to the district of residence as follows: 155.19 (1) if the charter school does not receive general 155.20 education revenue on behalf of the student according to 155.21 subdivision 1, tuition shall be charged as provided in section 155.22 125A.11; or 155.23 (2) if the charter school receives general education 155.24 revenue on behalf of the student according to subdivision 1, 155.25 tuition shall be charged as provided in section 127A.47, 155.26 subdivision 7, paragraph (d). 155.27 (c) For fiscal year 2007 and later, the special education 155.28 aid paid to the charter school shall be adjusted as follows: 155.29 (1) if the charter school does not receive general 155.30 education revenue on behalf of the student according to 155.31 subdivision 1, the aid shall be adjusted as provided in section 155.32 125A.11; or 155.33 (2) if the charter school receives general education 155.34 revenue on behalf of the student according to subdivision 1, the 155.35 aid shall be adjusted as provided in section 127A.47, 155.36 subdivision 7, paragraph (d). 156.1 Sec. 2. Minnesota Statutes 2004, section 125A.091, 156.2 subdivision 5, is amended to read: 156.3 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] (a) The 156.4 district must not proceed with the initial evaluation of a 156.5 child, the initial placement of a child in a special education 156.6 program, or the initial provision of special education services 156.7 for a child without the prior written consent of the child's 156.8 parent. A district may not override the written refusal of a 156.9 parent to consent to an initial evaluation or reevaluation. If 156.10 a parent refuses to consent to the initial evaluation of a 156.11 child, a school district may apply to the child in any 156.12 subsequent disciplinary action those provisions of the Pupil 156.13 Fair Dismissal Act under sections 121A.40 to 121A.56 applicable 156.14 to students without disabilities. A parent's refusal to consent 156.15 to an initial evaluation or reevaluation under this paragraph is 156.16 not a ground for disciplinary action under sections 121A.40 to 156.17 121A.56. 156.18 (b) A parent, after consulting with health care, education, 156.19 or other professional providers, may agree or disagree to 156.20 provide the parent's child withsympathomimetic medications156.21 psychotropic drugs unless section 144.344 applies. 156.22 "Psychotropic drug" means a substance used in the diagnosis, 156.23 treatment or prevention of a disease or as a component of a 156.24 medication, and intended to have an altering effect on 156.25 perception, emotion, or behavior. School officials must not use 156.26 the refusal of a parent or guardian to consent to the 156.27 administration of a psychotropic drug to their student or to 156.28 consent to a psychiatric evaluation, screening or examination of 156.29 the student as a ground, by itself, to prohibit the student from 156.30 attending class or participating in a school-related activity, 156.31 or as a basis of a charge of child abuse, child neglect, or 156.32 medical or educational neglect. 156.33 [EFFECTIVE DATE.] This section is effective for the 156.34 2005-2006 school year and later. 156.35 Sec. 3. Minnesota Statutes 2004, section 125A.11, 156.36 subdivision 1, is amended to read: 157.1 Subdivision 1. [NONRESIDENT TUITION RATE; OTHER COSTS.] 157.2 (a) For fiscal year 2006, when a school district provides 157.3 instruction and services outside the district of residence, 157.4 board and lodging, and any tuition to be paid, shall be paid by 157.5 the district of residence. The tuition rate to be charged for 157.6 any child with a disability, excluding a pupil for whom tuition 157.7 is calculated according to section 127A.47, subdivision 7, 157.8 paragraph (d), must be the sum of (1) the actual cost of 157.9 providing special instruction and services to the child 157.10 including a proportionate amount forcapital outlay and debt157.11service but not including any amount forspecial transportation 157.12 and unreimbursed building lease and debt service costs for 157.13 facilities used primarily for special education, plus (2) the 157.14 amount of general education revenue and referendum aid 157.15 attributable to the pupil, minus (3) the amount of special 157.16 education aid for children with a disability received on behalf 157.17 of that child, minus (4) if the pupil receives special 157.18 instruction and services outside the regular classroom for more 157.19 than 60 percent of the school day, the amount of general 157.20 education revenue and referendum aid, excluding portions 157.21 attributable to district and school administration, district 157.22 support services, operations and maintenance, capital 157.23 expenditures, and pupil transportation, attributable to that 157.24 pupil for the portion of time the pupil receives instruction in 157.25 the regular classroom. If the boards involved do not agree upon 157.26 the tuition rate, either board may apply to the commissioner to 157.27 fix the rate. Notwithstanding chapter 14, the commissioner must 157.28 then set a date for a hearing or request a written statement 157.29 from each board, giving each board at least ten days' notice, 157.30 and after the hearing or review of the written statements the 157.31 commissioner must make an order fixing the tuition rate, which 157.32 is binding on both school districts. General education revenue 157.33 and referendum aid attributable to a pupil must be calculated 157.34 using the resident district's average general education and 157.35 referendum revenue per adjusted pupil unit. 157.36 (b) For fiscal year 2007 and later, when a school district 158.1 provides special instruction and services for a pupil with a 158.2 disability as defined in section 125A.02 outside the district of 158.3 residence, excluding a pupil for whom an adjustment to special 158.4 education aid is calculated according to section 127A.47, 158.5 subdivision 7, paragraph (e), special education aid paid to the 158.6 resident district must be reduced by an amount equal to (1) the 158.7 actual cost of providing special instruction and services to the 158.8 pupil, including a proportionate amount for special 158.9 transportation and unreimbursed building lease and debt service 158.10 costs for facilities used primarily for special education, plus 158.11 (2) the amount of general education revenue and referendum aid 158.12 attributable to that pupil, minus (3) the amount of special 158.13 education aid for children with a disability received on behalf 158.14 of that child, minus (4) if the pupil receives special 158.15 instruction and services outside the regular classroom for more 158.16 than 60 percent of the school day, the amount of general 158.17 education revenue and referendum aid, excluding portions 158.18 attributable to district and school administration, district 158.19 support services, operations and maintenance, capital 158.20 expenditures, and pupil transportation, attributable to that 158.21 pupil for the portion of time the pupil receives instruction in 158.22 the regular classroom. General education revenue and referendum 158.23 aid attributable to a pupil must be calculated using the 158.24 resident district's average general education revenue and 158.25 referendum aid per adjusted pupil unit. Special education aid 158.26 paid to the district or cooperative providing special 158.27 instruction and services for the pupil must be increased by the 158.28 amount of the reduction in the aid paid to the resident 158.29 district. Amounts paid to cooperatives under this subdivision 158.30 and section 127A.47, subdivision 7, shall be recognized and 158.31 reported as revenues and expenditures on the resident school 158.32 district's books of account under sections 123B.75 and 123B.76. 158.33 If the resident district's special education aid is insufficient 158.34 to make the full adjustment, the remaining adjustment shall be 158.35 made to other state aid due to the district. 158.36 (c) Notwithstanding paragraphs (a) and (b) and section 159.1 127A.47, subdivision 7, paragraphs (d) and (e), a charter school 159.2 where more than 30 percent of enrolled students receive special 159.3 education and related services, an intermediate district, or a 159.4 special education cooperative may apply to the commissioner for 159.5 authority to charge the resident district an additional amount 159.6 to recover any remaining unreimbursed costs of serving pupils 159.7 with a disability. The application must include a description 159.8 of the costs and the calculations used to determine the 159.9 unreimbursed portion to be charged to the resident district. 159.10 Amounts approved by the commissioner under this paragraph must 159.11 be included in the tuition billings or aid adjustments under 159.12 paragraph (a) or (b), or section 127A.47, subdivision 7, 159.13 paragraph (d) or (e), as applicable. 159.14 Sec. 4. Minnesota Statutes 2004, section 125A.24, is 159.15 amended to read: 159.16 125A.24 [PARENT ADVISORY COUNCILS.] 159.17 In order to increase the involvement of parents of children 159.18 with disabilities in district policy making and decision making, 159.19 school districts must have a special education advisory council 159.20 that is incorporated into the district's special education 159.21 system plan. 159.22 (1) This advisory council may be established either for 159.23 individual districts or in cooperation with other districts who 159.24 are members of the same special education cooperative. 159.25 (2) A district may set up this council as a subgroup of an 159.26 existing board, council, or committee. 159.27 (3) At least half of the designated council members must be 159.28 parents of students with a disability. The council must include 159.29 at least one member who is a parent of a nonpublic school 159.30 student with a disability if a nonpublic school is located in 159.31 the district. Each local council must meet no less than once 159.32 each year. The number of members, frequency of meetings, and 159.33 operational procedures are to be locally determined. 159.34 Sec. 5. Minnesota Statutes 2004, section 125A.28, is 159.35 amended to read: 159.36 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 160.1 An Interagency Coordinating Council of at least 17, but not 160.2 more than 25 members is established, in compliance with Public 160.3 Law 102-119, section 682. The members must be appointed by the 160.4 governor. Council members must elect the council chair. The 160.5 representative of the commissioner may not serve as the chair. 160.6 The council must be composed of at least five parents, including 160.7 persons of color, of children with disabilities under age 12, 160.8 including at least three parents of a child with a disability 160.9 under age seven, five representatives of public or private 160.10 providers of services for children with disabilities under age 160.11 five, including a special education director, county social 160.12 service director, local Head Start director, and a community 160.13 health services or public health nursing administrator, one 160.14 member of the senate, one member of the house of 160.15 representatives, one representative of teacher preparation 160.16 programs in early childhood-special education or other 160.17 preparation programs in early childhood intervention, at least 160.18 one representative of advocacy organizations for children with 160.19 disabilities under age five, one physician who cares for young 160.20 children with special health care needs, one representative each 160.21 from the commissioners of commerce, education, health, human 160.22 services, a representative from the state agency responsible for 160.23 child care, and a representative from Indian health services or 160.24 a tribal council. Section 15.059, subdivisions 2 to 5, apply to 160.25 the council. The council must meet at least quarterly. 160.26 The council must address methods of implementing the state 160.27 policy of developing and implementing comprehensive, 160.28 coordinated, multidisciplinary interagency programs of early 160.29 intervention services for children with disabilities and their 160.30 families. 160.31 The duties of the council include recommending policies to 160.32 ensure a comprehensive and coordinated system of all state and 160.33 local agency services for children under age five with 160.34 disabilities and their families. The policies must address how 160.35 to incorporate each agency's services into a unified state and 160.36 local system of multidisciplinary assessment practices, 161.1 individual intervention plans, comprehensive systems to find 161.2 children in need of services, methods to improve public 161.3 awareness, and assistance in determining the role of interagency 161.4 early intervention committees. 161.5By September 1On the date that Minnesota Part C Annual 161.6 Performance Report is submitted to the federal Office of Special 161.7 Education, the council must recommend to the governor and the 161.8 commissioners of education, health, human services, commerce, 161.9 and employment and economic development policies for a 161.10 comprehensive and coordinated system. 161.11 Notwithstanding any other law to the contrary, the State 161.12 Interagency Coordinating Council expires on June 30,20052009. 161.13 Sec. 6. Minnesota Statutes 2004, section 125A.76, 161.14 subdivision 1, is amended to read: 161.15 Subdivision 1. [DEFINITIONS.] For the purposes of this 161.16 section, the definitions in this subdivision apply. 161.17 (a) "Base year" for fiscal year 1998 and later fiscal years 161.18 means the second fiscal year preceding the fiscal year for which 161.19 aid will be paid. 161.20 (b) "Basic revenue" has the meaning given it in section 161.21 126C.10, subdivision 2. For the purposes of computing basic 161.22 revenue pursuant to this section, each child with a disability 161.23 shall be counted as prescribed in section 126C.05, subdivision 1. 161.24 (c) "Essential personnel" means teachers, cultural 161.25 liaisons, related services, and support services staff providing 161.26 direct services to students. Essential personnel may also 161.27 include special education paraprofessionals or clericals 161.28 providing support to teachers and students by preparing 161.29 paperwork and making arrangements related to special education 161.30 compliance requirements, including parent meetings and 161.31 individual education plans. 161.32 (d) "Average daily membership" has the meaning given it in 161.33 section 126C.05. 161.34 (e) "Program growth factor" means1.0461.04 for fiscal 161.35year 2003years 2007 and 2008, and 1.0 for fiscal year20042009 161.36 and later. 162.1 Sec. 7. Minnesota Statutes 2004, section 125A.76, 162.2 subdivision 4, is amended to read: 162.3 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.]The state162.4total special education aid for fiscal year 2004 equals162.5$530,642,000.The state total special education aid for fiscal 162.6 year 2005 equals $529,164,000. The state total special 162.7 education aid for later fiscal years equals: 162.8 (1) the state total special education aid for the preceding 162.9 fiscal year; times 162.10 (2)the program growth factor; times162.11(3)the ratio of the state total average daily membership 162.12 for the current fiscal year to the state total average daily 162.13 membership for the preceding fiscal year. 162.14 Sec. 8. Minnesota Statutes 2004, section 125A.76, is 162.15 amended by adding a subdivision to read: 162.16 Subd. 5a. [SPECIAL EDUCATION LEVY REVENUE.] (a) For fiscal 162.17 year 2007, the state total special education revenue equals the 162.18 state total special education aid times the program growth 162.19 factor. For fiscal year 2008 and later, the state total special 162.20 education revenue equals: 162.21 (1) the state total special education revenue for the 162.22 preceding fiscal year, times 162.23 (2) the program growth factor, times 162.24 (3) the ratio of the state total average daily membership 162.25 for the current fiscal year to the state total average daily 162.26 membership for the preceding fiscal year. 162.27 (b) For fiscal year 2007 and later, the state total special 162.28 education levy revenue equals the difference between the state 162.29 total special education revenue and the state total special 162.30 education aid. 162.31 (c) For fiscal year 2007 and later, the special education 162.32 levy revenue for a school district, charter school, or state 162.33 academy equals the product of the state total special education 162.34 levy revenue times the ratio of the school district, charter 162.35 school, or state academy's special education aid to the state 162.36 total special education aid. 163.1 Sec. 9. Minnesota Statutes 2004, section 125A.76, is 163.2 amended by adding a subdivision to read: 163.3 Subd. 5b. [SPECIAL EDUCATION LEVY.] To obtain special 163.4 education levy revenue for fiscal year 2007 and later, a 163.5 district may levy an amount not more than the product of its 163.6 special education levy revenue for the fiscal year times the 163.7 lesser of one or the ratio of its adjusted net tax capacity per 163.8 adjusted pupil unit to $5,913. 163.9 Sec. 10. Minnesota Statutes 2004, section 125A.76, is 163.10 amended by adding a subdivision to read: 163.11 Subd. 5c. [SPECIAL EDUCATION LEVY EQUALIZATION AID.] (a) 163.12 For fiscal year 2007 and later, a school district's special 163.13 education levy equalization aid equals its special education 163.14 levy equalization revenue minus its special education levy times 163.15 the ratio of the actual amount levied to the permitted levy. 163.16 (b) The special education levy equalization aid for a 163.17 charter school or a state academy equals the charter school or 163.18 state academy's special education levy revenue. 163.19 Sec. 11. Minnesota Statutes 2004, section 125A.79, 163.20 subdivision 1, is amended to read: 163.21 Subdivision 1. [DEFINITIONS.] For the purposes of this 163.22 section, the definitions in this subdivision apply. 163.23 (a) "Unreimbursed special education cost" means the sum of 163.24 the following: 163.25 (1) expenditures for teachers' salaries, contracted 163.26 services, supplies, equipment, and transportation services 163.27 eligible for revenue under section 125A.76; plus 163.28 (2) expenditures for tuition bills received under sections 163.29 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 163.30 under section 125A.76, subdivision 2; minus 163.31 (3) revenue for teachers' salaries, contracted services, 163.32 supplies, and equipment under section 125A.76; minus 163.33 (4) tuition receipts under sections 125A.03 to 125A.24 and 163.34 125A.65 for services eligible for revenue under section 125A.76, 163.35 subdivision 2. 163.36 (b)"General revenue" means for fiscal year 1996, the sum164.1of the general education revenue according to section 126C.10,164.2subdivision 1, as adjusted according to section 127A.47,164.3subdivision 7, plus the total referendum revenue according to164.4section 126C.17, subdivision 4. For fiscal years 1997 and164.5later,"General revenue" means the sum of the general education 164.6 revenue according to section 126C.10, subdivision 1, as adjusted 164.7 according to section 127A.47, subdivisions 7 and 8,plus the164.8total referendum revenueminus transportation sparsity revenue 164.9 minus total operating capital revenue. 164.10 (c) "Average daily membership" has the meaning given it in 164.11 section 126C.05. 164.12 (d) "Program growth factor" means 1.02 for fiscal year 164.13 2003, and 1.0 for fiscal year 2004 and later. 164.14 Sec. 12. Minnesota Statutes 2004, section 125A.79, 164.15 subdivision 5, is amended to read: 164.16 Subd. 5. [INITIAL EXCESS COST AID; FISCAL YEARS 2004 and 164.17 2005.] For fiscal years20022004 andlater2005, a district's 164.18 initial excess cost aid equals the greatest of: 164.19 (1) 75 percent of the difference between (i) the district's 164.20 unreimbursed special education cost and (ii) 4.36 percent of the 164.21 district's general revenue; 164.22 (2) 70 percent of the difference between (i) the increase 164.23 in the district's unreimbursed special education cost between 164.24 the base year as defined in section 125A.76, subdivision 1, and 164.25 the current year and (ii) 1.6 percent of the district's general 164.26 revenue; or 164.27 (3) zero. 164.28 Sec. 13. Minnesota Statutes 2004, section 125A.79, is 164.29 amended by adding a subdivision to read: 164.30 Subd. 5a. [INITIAL EXCESS COST AID.] For fiscal years 2006 164.31 and later, a district's initial excess cost aid equals the 164.32 greater of: 164.33 (1) 75 percent of the difference between (i) the district's 164.34 unreimbursed special education cost for the previous fiscal 164.35 year, and (ii) 4.36 percent of the district's general revenue 164.36 for the previous fiscal year; or 165.1 (2) zero. 165.2 Sec. 14. Minnesota Statutes 2004, section 125A.79, is 165.3 amended by adding a subdivision to read: 165.4 Subd. 5b. [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 165.5 years 2006 and later, a district's supplemental excess cost aid 165.6 equals the greater of: 165.7 (1) 75 percent of the difference between (i) the increase 165.8 in the district's unreimbursed special education excess cost 165.9 between the previous fiscal year and the current fiscal year, 165.10 and (ii) $80 times the district's adjusted marginal cost pupil 165.11 units for the current fiscal year; or 165.12 (2) zero. 165.13 (b) The state total supplemental excess cost aid for any 165.14 fiscal year must not exceed $2,000,000. If the state total 165.15 supplemental excess cost aid according to paragraph (a) exceeds 165.16 $2,000,000, the supplemental excess cost aid for each district 165.17 shall be reduced proportionately so that the state total equals 165.18 $2,000,000. 165.19 Sec. 15. Minnesota Statutes 2004, section 125A.79, 165.20 subdivision 6, is amended to read: 165.21 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 165.22The state total special education excess cost aid for fiscal165.23year 2004 equals $92,067,000.The state total special education 165.24 excess cost aid for fiscal year 2005 equals $91,811,000. The 165.25 state total special education excess cost aid for fiscal year 165.26 2006 equals $102,746,000. The state total special education 165.27 excess cost aid for fiscal year20062007 and later fiscal years 165.28 equals: 165.29 (1) the state total special education excess cost aid for 165.30 the preceding fiscal year; times 165.31 (2) the program growth factor; times 165.32 (3) the ratio of the state total average daily membership 165.33 for the current fiscal year to the state total average daily 165.34 membership for the preceding fiscal year. 165.35 Sec. 16. Minnesota Statutes 2004, section 125A.79, 165.36 subdivision 7, is amended to read: 166.1 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 166.2 A district's special education excess cost aid for fiscalyear166.32002 and lateryears 2004 and 2005 equals the state total 166.4 special education excess cost aid times the ratio of the 166.5 district's initial excess cost aid to the state total initial 166.6 excess cost aid. 166.7 (b) A district's special education excess cost aid for 166.8 fiscal year 2006 and later equals the sum of: 166.9 (1) the product of the difference between the state total 166.10 special education excess cost aid and the state total 166.11 supplemental excess cost aid times the ratio of the district's 166.12 initial excess cost aid to the state total initial excess cost 166.13 aid; and 166.14 (2) the district's supplemental excess cost aid according 166.15 to subdivision 5b. 166.16 Sec. 17. Minnesota Statutes 2004, section 127A.45, 166.17 subdivision 13, is amended to read: 166.18 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 166.19 subdivisions 11, 12, 12a, and 14, each fiscal year, all 166.20 education aids and credits in this chapter and chapters 120A, 166.21 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 166.22 section 273.1392, shall be paid at80 percentthe current year 166.23 aid payment percentage of the estimated entitlement during the 166.24 fiscal year of the entitlement. For the purposes of this 166.25 subdivision, a district's estimated entitlement for special 166.26 education excess cost aid under section 125A.79 for fiscal year 166.27 2005 equals 70 percent of the district's entitlement for the 166.28 second prior fiscal year. For the purposes of this subdivision, 166.29 a district's estimated entitlement for special education excess 166.30 cost aid under section 125A.79 for fiscal year 2006 and later 166.31 equals 75.5 percent of the district's entitlement for the 166.32 current fiscal year. The final adjustment payment, according to 166.33 subdivision 9, must be the amount of the actual entitlement, 166.34 after adjustment for actual data, minus the payments made during 166.35 the fiscal year of the entitlement. 166.36 [EFFECTIVE DATE.] This section is effective the day 167.1 following final enactment and applies to aid payments for fiscal 167.2 year 2005 and later. 167.3 Sec. 18. Minnesota Statutes 2004, section 127A.47, 167.4 subdivision 7, is amended to read: 167.5 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 167.6 education aid and special education aid for districts must be 167.7 adjusted for each pupil attending a nonresident district under 167.8 sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 167.9 124D.68. The adjustments must be made according to this 167.10 subdivision. 167.11 (a) General education aid paid to a resident district must 167.12 be reduced by an amount equal to the referendum equalization aid 167.13 attributable to the pupil in the resident district. 167.14 (b) General education aid paid to a district serving a 167.15 pupil in programs listed in this subdivision must be increased 167.16 by an amount equal to the referendum equalization aid 167.17 attributable to the pupil in the nonresident district. 167.18 (c) If the amount of the reduction to be made from the 167.19 general education aid of the resident district is greater than 167.20 the amount of general education aid otherwise due the district, 167.21 the excess reduction must be made from other state aids due the 167.22 district. 167.23 (d) For fiscal year 2006, the district of residence must 167.24 pay tuition to a district or an area learning center, operated 167.25 according to paragraph(e)(f), providing special instruction 167.26 and services to a pupil with a disability, as defined in section 167.27 125A.02, or a pupil, as defined in section 125A.51, who is 167.28 enrolled in a program listed in this subdivision. The tuition 167.29 must be equal to (1) the actual cost of providing special 167.30 instruction and services to the pupil, including a proportionate 167.31 amount fordebt service and for capital expenditure facilities167.32and equipment, and debt service but not including any amount for167.33 special transportation and unreimbursed building lease and debt 167.34 service costs for facilities used primarily for special 167.35 education, minus (2) if the pupil receives special instruction 167.36 and services outside the regular classroom for more than 60 168.1 percent of the school day, the amount of general education 168.2 revenue and referendum aid attributable to that pupil for the 168.3 portion of time the pupil receives special instruction and 168.4 services outside of the regular classroom, excluding portions 168.5 attributable to district and school administration, district 168.6 support services, operations and maintenance, capital 168.7 expenditures, and pupil transportation, minus (3) special 168.8 education aidbut not including any amount for transportation,168.9 attributable to that pupil, that is received by the district 168.10 providing special instruction and services. For purposes of 168.11 this paragraph, general education revenue and referendum aid 168.12 attributable to a pupil must be calculated using the serving 168.13 district's average general education revenue and referendum aid 168.14 per adjusted pupil unit. 168.15 (e) For fiscal year 2007 and later, special education aid 168.16 paid to a resident district must be reduced by an amount equal 168.17 to (1) the actual cost of providing special instruction and 168.18 services, including special transportation and unreimbursed 168.19 building lease and debt service costs for facilities used 168.20 primarily for special education, for a pupil with a disability, 168.21 as defined in section 125A.02, or a pupil, as defined in section 168.22 125A.51, who is enrolled in a program listed in this 168.23 subdivision, minus (2) if the pupil receives special instruction 168.24 and services outside the regular classroom for more than 60 168.25 percent of the school day, the amount of general education 168.26 revenue and referendum aid attributable to that pupil for the 168.27 portion of time the pupil receives special instruction and 168.28 services outside of the regular classroom, excluding portions 168.29 attributable to district and school administration, district 168.30 support services, operations and maintenance, capital 168.31 expenditures, and pupil transportation, minus (3) special 168.32 education aid attributable to that pupil, that is received by 168.33 the district providing special instruction and services. For 168.34 purposes of this paragraph, general education revenue and 168.35 referendum aid attributable to a pupil must be calculated using 168.36 the serving district's average general education revenue and 169.1 referendum aid per adjusted pupil unit. Special education aid 169.2 paid to the district or cooperative providing special 169.3 instruction and services for the pupil must be increased by the 169.4 amount of the reduction in the aid paid to the resident 169.5 district. If the resident district's special education aid is 169.6 insufficient to make the full adjustment, the remaining 169.7 adjustment shall be made to other state aids due to the district. 169.8 (f) An area learning center operated by a service 169.9 cooperative, intermediate district, education district, or a 169.10 joint powers cooperative may elect through the action of the 169.11 constituent boards to charge the resident district tuition for 169.12 pupils rather than to have the general education revenue paid to 169.13 a fiscal agent school district. Except as provided in paragraph 169.14 (d) or (e), the district of residence must pay tuition equal to 169.15 at least 90 percent of the district average general education 169.16 revenue per pupil unit minus an amount equal to the product of 169.17 the formula allowance according to section 126C.10, subdivision 169.18 2, times .0485, calculated without basic skills revenue and 169.19 transportation sparsity revenue, times the number of pupil units 169.20 for pupils attending the area learning center, plus the amount 169.21 of compensatory revenue generated by pupils attending the area 169.22 learning center. 169.23 Sec. 19. Minnesota Statutes 2004, section 134.31, is 169.24 amended by adding a subdivision to read: 169.25 Subd. 5a. [ADVISORY COMMITTEE.] The commissioner shall 169.26 appoint an advisory committee of five members to advise the 169.27 staff of the Minnesota Library for the Blind and Physically 169.28 Handicapped on long-range plans and library services. Members 169.29 shall be people who use the library. Section 15.059 governs 169.30 this committee except that the committee shall not expire. 169.31 Sec. 20. Laws 2003, First Special Session chapter 9, 169.32 article 3, section 20, subdivision 6, as amended by Laws 2004, 169.33 chapter 272, article 1, section 16, is amended to read: 169.34 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 169.35 cost aid under Minnesota Statutes, section 125A.79, subdivision 169.36 7: 170.1 $92,605,000 ..... 2004 170.2$92,799,000$95,572,000 ..... 2005 170.3 The 2004 appropriation includes $41,754,000 for 2003 and 170.4 $50,851,000 for 2004. 170.5 The 2005 appropriation includes $41,216,000 for 2004 and 170.6$51,583,000$54,356,000 for 2005. 170.7 Of the state total excess cost aid for fiscal year 2005, 170.8 $150,000 shall be paid to Independent School District No. 2580, 170.9 East Central, for unfunded special education costs that would 170.10 otherwise be cross-subsidized with general education aid. For 170.11 purposes of Minnesota Statutes, section 125A.79, subdivision 7, 170.12 the state total excess cost aid used in calculating district 170.13 special education excess cost aid must be reduced by the amount 170.14 paid to Independent School District No. 2580, East Central. 170.15 [EFFECTIVE DATE.] This section is effective the day 170.16 following final enactment. 170.17 Sec. 21. [TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO 170.18 NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.] 170.19 Subdivision 1. [PURPOSE; ESTABLISHMENT.] A task force on 170.20 the delivery of special education services to nonpublic school 170.21 students by public school districts shall be established to 170.22 compare and evaluate how the individual needs of each child are 170.23 being met, if services are provided in the least restrictive 170.24 environment, and whether best practices and program efficiencies 170.25 are being used in the specific areas of transportation, location 170.26 of services, and shared time aid. 170.27 Subd. 2. [MEMBERS.] The governor shall appoint the members 170.28 of the task force from each of the following: 170.29 (1) two members from the Department of Education, one 170.30 representing special education programs and policy and one 170.31 representing district finances; 170.32 (2) two special education teachers with one member from a 170.33 public school and one member from a nonpublic school; 170.34 (3) two special education administrators with one member 170.35 from a public school and one member from a nonpublic school; 170.36 (4) two members with one from each of two special education 171.1 advocacy organizations; 171.2 (5) two parents of children receiving special education 171.3 services with one member from a public school and one member 171.4 from a nonpublic school; 171.5 (6) two elementary school principals with one member from a 171.6 public school and one member from a nonpublic school; 171.7 (7) two superintendents with one member from a public 171.8 school district and one member from a nonpublic school district; 171.9 (8) two school business officials with one from a public 171.10 school and one from a nonpublic school; and 171.11 (9) two school board officials with one from a public 171.12 school and one from a nonpublic school. 171.13 The task force may select additional members to work on the 171.14 task force. The commissioner of education shall provide 171.15 necessary materials and assistance. 171.16 Subd. 3. [REPORT.] The task force shall submit a report by 171.17 January 15, 2006, to the house of representatives and senate 171.18 committees having jurisdiction over education on the delivery of 171.19 special education services to nonpublic school students by 171.20 public school districts, to compare and evaluate how the 171.21 individual needs of each child are being met in the least 171.22 restrictive environment, and whether best practices and program 171.23 efficiencies are being used. 171.24 Subd. 4. [EXPIRATION.] This section expires January 31, 171.25 2006. 171.26 [EFFECTIVE DATE.] This section is effective the day 171.27 following final enactment. 171.28 Sec. 22. [APPROPRIATIONS.] 171.29 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 171.30 indicated in this section are appropriated from the general fund 171.31 to the Department of Education for the fiscal years designated. 171.32 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 171.33 education aid under Minnesota Statutes, section 125A.75: 171.34 $528,846,000 ..... 2006 171.35 $527,446,000 ..... 2007 171.36 The 2006 appropriation includes $83,078,000 for 2005 and 172.1 $445,768,000 for 2006. 172.2 The 2007 appropriation includes $83,019,000 for 2006 and 172.3 $444,427,000 for 2007. 172.4 Subd. 3. [SPECIAL EDUCATION; REGULAR EQUALIZATION 172.5 AID.] For special education regular equalization aid: 172.6 $2,176,000 ..... 2007 172.7 The 2007 appropriation includes $0 for 2006 and $2,176,000 172.8 for 2007. 172.9 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 172.10 under Minnesota Statutes, section 125A.75, subdivision 3, for 172.11 children with disabilities placed in residential facilities 172.12 within the district boundaries for whom no district of residence 172.13 can be determined: 172.14 $2,212,000 ..... 2006 172.15 $2,615,000 ..... 2007 172.16 If the appropriation for either year is insufficient, the 172.17 appropriation for the other year is available. 172.18 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 172.19 teacher travel for home-based services under Minnesota Statutes, 172.20 section 125A.75, subdivision 1: 172.21 $ 187,000 ..... 2006 172.22 $ 195,000 ..... 2007 172.23 The 2006 appropriation includes $28,000 for 2005 and 172.24 $159,000 for 2006. 172.25 The 2007 appropriation includes $29,000 for 2006 and 172.26 $166,000 for 2007. 172.27 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 172.28 cost aid under Minnesota Statutes, section 125A.79, subdivision 172.29 7: 172.30 $102,782,000 ..... 2006 172.31 $102,483,000 ..... 2007 172.32 The 2006 appropriation includes $37,455,000 for 2005 and 172.33 $65,327,000 for 2006. 172.34 The 2007 appropriation includes $37,339,000 for 2006 and 172.35 $65,144,000 for 2007. 172.36 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 173.1 paying the costs a district incurs under Minnesota Statutes, 173.2 section 125A.75, subdivision 8: 173.3 $ 17,000 ..... 2006 173.4 $ 17,000 ..... 2007 173.5 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 173.6 transition programs for children with disabilities under 173.7 Minnesota Statutes, section 124D.454: 173.8 $8,788,000 ..... 2006 173.9 $8,765,000 ..... 2007 173.10 The 2006 appropriation includes $1,380,000 for 2005 and 173.11 $7,408,000 for 2006. 173.12 The 2007 appropriation includes $1,379,000 for 2006 and 173.13 $7,386,000 for 2007. 173.14 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 173.15 reimbursing serving school districts for unreimbursed eligible 173.16 expenditures attributable to children placed in the serving 173.17 school district by court action under Minnesota Statutes, 173.18 section 125A.79, subdivision 4: 173.19 $ 65,000 ..... 2006 173.20 $ 70,000 ..... 2007 173.21 Subd. 10. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 173.22 special education out-of-state tuition according to Minnesota 173.23 Statutes, section 125A.79, subdivision 8: 173.24 $ 250,000 ..... 2006 173.25 $ 250,000 ..... 2007 173.26 ARTICLE 4 173.27 FACILITIES AND TECHNOLOGY 173.28 Section 1. Minnesota Statutes 2004, section 123B.53, 173.29 subdivision 1, is amended to read: 173.30 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 173.31 section, the eligible debt service revenue of a district is 173.32 defined as follows: 173.33 (1) the amount needed to produce between five and six 173.34 percent in excess of the amount needed to meet when due the 173.35 principal and interest payments on the obligations of the 173.36 district for eligible projects according to subdivision 2, 174.1 including the amounts necessary for repayment of energy loans 174.2 according to section 216C.37 or sections 298.292 to 298.298, 174.3 debt service loans and capital loans, lease purchase payments 174.4 under section 126C.40, subdivision 2, alternative facilities 174.5 levies under section 123B.59, subdivision 5, minus 174.6 (2) the amount of debt service excess levy reduction for 174.7 that school year calculated according to the procedure 174.8 established by the commissioner. 174.9 (b) The obligations in this paragraph are excluded from 174.10 eligible debt service revenue: 174.11 (1) obligations under section 123B.61; 174.12 (2) the part of debt service principal and interest paid 174.13 from the taconite environmental protection fund or northeast 174.14 Minnesota economic protection trust; 174.15 (3) obligations issued under Laws 1991, chapter 265, 174.16 article 5, section 18, as amended by Laws 1992, chapter 499, 174.17 article 5, section 24; and 174.18 (4) obligations under section 123B.62. 174.19 (c) For purposes of this section, if a preexisting school 174.20 district reorganized under sections 123A.35 to 123A.43, 123A.46, 174.21 and 123A.48 is solely responsible for retirement of the 174.22 preexisting district's bonded indebtedness, capital loans or 174.23 debt service loans, debt service equalization aid must be 174.24 computed separately for each of the preexisting districts. 174.25 (d) For purposes of this section, the adjusted net tax 174.26 capacity determined according to section 127A.48 shall be 174.27 adjusted to include a portion of the tax capacity of property 174.28 generally exempted from ad valorem taxes under section 272.02, 174.29 subdivisions 64 and 65, equal to the product of that tax 174.30 capacity times the ratio of the eligible debt service revenue 174.31 attributed to general obligation bonds to the total eligible 174.32 debt service revenue of the district. 174.33 Sec. 2. Minnesota Statutes 2004, section 123B.54, is 174.34 amended to read: 174.35 123B.54 [DEBT SERVICE APPROPRIATION.] 174.36 (a)$28,367,000$21,624,000 in fiscal year20062008 and 175.1$25,560,000$20,403,000 in fiscal year20072009 and later are 175.2 appropriated from the general fund to the commissioner of 175.3 education for payment of debt service equalization aid under 175.4 section 123B.53. 175.5 (b) The appropriations in paragraph (a) must be reduced by 175.6 the amount of any money specifically appropriated for the same 175.7 purpose in any year from any state fund. 175.8 Sec. 3. Minnesota Statutes 2004, section 123B.59, 175.9 subdivision 3, is amended to read: 175.10 Subd. 3. [BOND AUTHORIZATION.] (a) A school district may 175.11 issue general obligation bonds under this section to finance 175.12 facilities plans approved by its board and the commissioner. 175.13 Chapter 475, except sections 475.58 and 475.59, must be complied 175.14 with. The district may levy under subdivision 5 for the debt 175.15 service revenue. The authority to issue bonds under this 175.16 section is in addition to any bonding authority authorized by 175.17 this chapter, or other law. The amount of bonding authority 175.18 authorized under this section must be disregarded in calculating 175.19 the bonding or net debt limits of this chapter, or any other law 175.20 other than section 475.53, subdivision 4. 175.21 (b) At least 20 days beforea district issues bondsthe 175.22 earliest of solicitation of bids, the issuance of bonds, or the 175.23 final certification of levies underthissubdivision 5,itthe 175.24 district must publish notice of the intended projects, the 175.25 amount of the bond issue,andthe total amount of district 175.26 indebtedness, and the commissioner's review and comment, if 175.27 applicable. 175.28 Sec. 4. Minnesota Statutes 2004, section 123B.59, 175.29 subdivision 3a, is amended to read: 175.30 Subd. 3a. [LEVY AUTHORIZATION.] (a) A school district may 175.31 levy under this section to finance the portion of facilities 175.32 plans approved by its board and the commissioner that are not 175.33 financed through bond issues according to subdivision 3. 175.34 (b) At least 20 days before a final district certification 175.35 of levies underthissubdivision 5,itthe district must 175.36 publish notice of the intended projects, including the total 176.1 estimated project cost, and the commissioner's review and 176.2 comment, if applicable. 176.3 Sec. 5. Minnesota Statutes 2004, section 123B.63, 176.4 subdivision 2, is amended to read: 176.5 Subd. 2. [USES OF THE ACCOUNT.] Money in the capital 176.6 project referendum account must be used only for the purposes 176.7 specified in section 126C.10, subdivision 14, for operating 176.8 capital revenue, including the costs of acquisition and 176.9 betterment for a project that has been reviewed under section 176.10 123B.71 and has been approved according to subdivision 3. 176.11 Sec. 6. [123B.591] [DEFERRED MAINTENANCE REVENUE.] 176.12 Subdivision 1. [ELIGIBILITY.] (a) An independent or 176.13 special school district that does not qualify to participate in 176.14 the alternative facilities bonding and levy under section 176.15 123B.59, subdivision 1, paragraph (a), is eligible to receive 176.16 deferred maintenance revenue. 176.17 (b) Deferred maintenance revenue is subject to reverse 176.18 referendum according to section 126C.48, subdivision 9. 176.19 Subd. 2. [DEFERRED MAINTENANCE REVENUE.] The deferred 176.20 maintenance revenue for an eligible school district equals the 176.21 product of $45 times the adjusted marginal cost pupil units for 176.22 the school year times the lesser of one or the ratio of the 176.23 district's average age of building space to 35 years. 176.24 Subd. 3. [DEFERRED MAINTENANCE LEVY.] To obtain deferred 176.25 maintenance revenue for fiscal year 2007 and later, a district 176.26 may levy an amount not more than the product of its deferred 176.27 maintenance revenue for the fiscal year times the lesser of one 176.28 or the ratio of its adjusted net tax capacity per adjusted 176.29 marginal cost pupil unit to $5,913. 176.30 Subd. 4. [DEFERRED MAINTENANCE AID.] For fiscal year 2007 176.31 and later, a district's deferred maintenance aid equals its 176.32 deferred maintenance revenue minus its deferred maintenance levy 176.33 times the ratio of the actual amount levied to the permitted 176.34 levy. 176.35 Subd. 5. [RESERVE ACCOUNT.] Deferred maintenance revenue 176.36 must be maintained in a reserve account within the general fund. 177.1 Deferred maintenance revenue may be used only for expenditures 177.2 that would be eligible for alternative facilities bonding and 177.3 levy revenue under section 123B.59, subdivision 2, paragraph 177.4 (a), if the district qualified for that revenue under section 177.5 123B.59, subdivision 1, paragraph (a). 177.6 [EFFECTIVE DATE.] This section is effective for revenue for 177.7 fiscal year 2007. 177.8 Sec. 7. Minnesota Statutes 2004, section 123B.71, 177.9 subdivision 8, is amended to read: 177.10 Subd. 8. [REVIEW AND COMMENT.] A school district, a 177.11 special education cooperative, or a cooperative unit of 177.12 government, as defined in section 123A.24, subdivision 2, must 177.13 not initiate an installment contract for purchase or a lease 177.14 agreement, hold a referendum for bonds, nor solicit bids for new 177.15 construction, expansion, or remodeling of an educational 177.16 facility that requires an expenditure in excess of $500,000 per 177.17 school site prior to review and comment by the commissioner. 177.18 The commissioner may exempt a facility maintenance project 177.19 funded with general education aid and levy, alternative 177.20 facilities bonding and levy program, or health and safety 177.21 revenue from this provision after reviewing a written request 177.22 from a school district describing the scope of work. A school 177.23 board shall not separate portions of a single project into 177.24 components to avoid the requirements of this subdivision. 177.25 Sec. 8. Minnesota Statutes 2004, section 123B.71, 177.26 subdivision 9, is amended to read: 177.27 Subd. 9. [INFORMATION REQUIRED.] A school board proposing 177.28 to construct a facility described in subdivision 8 shall submit 177.29 to the commissioner a proposal containing information including 177.30 at least the following: 177.31 (1) the geographic area and population to be served, 177.32 preschool through grade 12 student enrollments for the past five 177.33 years, and student enrollment projections for the next five 177.34 years; 177.35 (2) a list of existing facilities by year constructed, 177.36 their uses, and an assessment of the extent to which alternate 178.1 facilities are available within the school district boundaries 178.2 and in adjacent school districts; 178.3 (3) a list of the specific deficiencies of the facility 178.4 that demonstrate the need for a new or renovated facility to be 178.5 provided, and a list of the specific benefits that the new or 178.6 renovated facility will provide to the students, teachers, and 178.7 community users served by the facility; 178.8 (4) the relationship of the project to any priorities 178.9 established by the school district, educational cooperatives 178.10 that provide support services, or other public bodies in the 178.11 service area; 178.12 (5) a specification of how the project will increase 178.13 community use of the facility and whether and how the project 178.14 will increase collaboration with other governmental or nonprofit 178.15 entities; 178.16 (6) a description of the project, including the 178.17 specification of site and outdoor space acreage and square 178.18 footage allocations for classrooms, laboratories, and support 178.19 spaces; estimated expenditures for the major portions of the 178.20 project; and the dates the project will begin and be completed; 178.21 (7) a specification of the source of financing the project; 178.22 the scheduled date for a bond issue or school board action; a 178.23 schedule of payments, including debt service equalization aid; 178.24 and the effect of a bond issue on local property taxes by the 178.25 property class and valuation; 178.26 (8) an analysis of how the proposed new or remodeled 178.27 facility will affect school district operational or 178.28 administrative staffing costs, and how the district's operating 178.29 budget will cover any increased operational or administrative 178.30 staffing costs; 178.31 (9) a description of the consultation with local or state 178.32 road and transportation officials on school site access and 178.33 safety issues, and the ways that the project will address those 178.34 issues; 178.35 (10) a description of how indoor air quality issues have 178.36 been considered and a certification that the architects and 179.1 engineers designing the facility will have professional 179.2 liability insurance; 179.3 (11) as required under section 123B.72, for buildings 179.4 coming into service after July 1, 2002, a certification that the 179.5 plans and designs for the extensively renovated or new 179.6 facility's heating, ventilation, and air conditioning systems 179.7 will meet or exceed code standards; will provide for the 179.8 monitoring of outdoor airflow and total airflow of ventilation 179.9 systems; and will provide an indoor air quality filtration 179.10 system that meets ASHRAE standard 52.1; 179.11 (12) a specification of any desegregation requirements that 179.12 cannot be met by any other reasonable means;and179.13 (13) a specification, if applicable, of how the facility 179.14 will utilize environmentally sustainable school facility design 179.15 concepts; and 179.16 (14) a description of how the architects and engineers have 179.17 considered the American National Standards Institute Acoustical 179.18 Performance Criteria, Design Requirements and Guidelines for 179.19 Schools of the maximum background noise level and reverberation 179.20 times. 179.21 [EFFECTIVE DATE.] This section is effective July 1, 2006. 179.22 Sec. 9. Minnesota Statutes 2004, section 123B.71, 179.23 subdivision 12, is amended to read: 179.24 Subd. 12. [PUBLICATION.] (a) At least 20 days but not more 179.25 than 60 days before a referendum for bonds or solicitation of 179.26 bids for a project that has received a positive or unfavorable 179.27 review and comment under section 123B.70, the school board shall 179.28 publish the commissioner's review and comment of that project in 179.29 the legal newspaper of the district. Supplementary information 179.30 shall be available to the public. 179.31 (b) The publication requirement in paragraph (a) does not 179.32 apply to alternative facilities projects approved under section 179.33 123B.59. Publication for alternative facilities projects shall 179.34 be as specified in section 123B.59, subdivisions 3 and 3a. 179.35 Sec. 10. [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 179.36 EQUITY AID.] 180.1 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 180.2 charter school shall submit its actual 180.3 telecommunications/Internet access costs for the previous fiscal 180.4 year, adjusted for any e-rate revenue received, to the 180.5 department by August 15 of each year as prescribed by the 180.6 commissioner. Costs eligible for reimbursement under this 180.7 program are limited to the following: 180.8 (1) ongoing or recurring telecommunications/Internet access 180.9 costs associated with Internet access, data lines, and video 180.10 links providing: 180.11 (i) the equivalent of one data line, video link, or 180.12 integrated data/video link that relies on a transport medium 180.13 that operates at a minimum speed of 1.544 megabytes per second 180.14 (T1) for each elementary school, middle school, or high school 180.15 under section 120A.05, subdivisions 9, 11, and 13, including the 180.16 recurring telecommunications line lease costs and ongoing 180.17 Internet access service fees; or 180.18 (ii) the equivalent of one data line or video circuit, or 180.19 integrated data/video link that relies on a transport medium 180.20 that operates at a minimum speed of 1.544 megabytes per second 180.21 (T1) for each district, including recurring telecommunications 180.22 line lease costs and ongoing Internet access service fees; 180.23 (2) recurring costs of contractual or vendor-provided 180.24 maintenance on the school district's wide area network to the 180.25 point of presence at the school building up to the router, 180.26 codec, or other service delivery equipment located at the point 180.27 of presence termination at the school or school district; 180.28 (3) recurring costs of cooperative, shared arrangements for 180.29 regional delivery of telecommunications/Internet access between 180.30 school districts, postsecondary institutions, and public 180.31 libraries including network gateways, peering points, regional 180.32 network infrastructure, Internet2 access, and network support, 180.33 maintenance, and coordination; and 180.34 (4) service provider installation fees for installation of 180.35 new telecommunications lines or increased bandwidth. 180.36 (b) Costs not eligible for reimbursement under this program 181.1 include: 181.2 (1) recurring costs of school district staff providing 181.3 network infrastructure support; 181.4 (2) recurring costs associated with voice and standard 181.5 telephone service; 181.6 (3) costs associated with purchase of network hardware, 181.7 telephones, computers, or other peripheral equipment needed to 181.8 deliver telecommunications access to the school or school 181.9 district; 181.10 (4) costs associated with laying fiber for 181.11 telecommunications access; 181.12 (5) costs associated with wiring school or school district 181.13 buildings; 181.14 (6) costs associated with purchase, installation, or 181.15 purchase and installation of Internet filtering; and 181.16 (7) costs associated with digital content, including 181.17 on-line learning or distance learning programming, and 181.18 information databases. 181.19 Subd. 2. [E-RATES.] To be eligible for aid under this 181.20 section, a district or charter school is required to file an 181.21 e-rate application either separately or through its 181.22 telecommunications access cluster and have a current technology 181.23 plan on file with the department. Discounts received on 181.24 telecommunications expenditures shall be reflected in the costs 181.25 submitted to the department for aid under this section. 181.26 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 181.27 develop criteria for approving costs submitted by school 181.28 districts and charter schools under subdivision 1. 181.29 Subd. 4. [DISTRICT AID.] A district or charter school's 181.30 Internet access equity aid equals 90 percent of the district or 181.31 charter school's approved cost for the previous fiscal year 181.32 according to subdivision 1 exceeding $15 times the district's 181.33 adjusted marginal cost pupil units for the previous fiscal year. 181.34 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 181.35 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 181.36 formal request by or on behalf of a nonpublic school, not 182.1 including home schools, located in that district or area, 182.2 ongoing or recurring telecommunications access services to the 182.3 nonpublic school either through existing district providers or 182.4 through separate providers. 182.5 (b) The amount of district aid for telecommunications 182.6 access services for each nonpublic school under this subdivision 182.7 equals the lesser of: 182.8 (1) 90 percent of the nonpublic school's approved cost for 182.9 the previous fiscal year according to subdivision 1 exceeding 182.10 $10 times the number of weighted pupils enrolled at the 182.11 nonpublic school as of October 1 of the previous school year; or 182.12 (2) the product of the district's aid per pupil unit 182.13 according to subdivision 4 times the number of weighted pupils 182.14 enrolled at the nonpublic school as of October 1 of the previous 182.15 school year. 182.16 (c) For purposes of this subdivision, nonpublic school 182.17 pupils shall be weighted by grade level using the weighting 182.18 factors defined in section 126C.05, subdivision 1. 182.19 (d) Each year, a district providing services under 182.20 paragraph (a) may claim up to five percent of the aid determined 182.21 in paragraph (b) for costs of administering this subdivision. 182.22 No district may expend an amount for these telecommunications 182.23 access services which exceeds the amount allocated under this 182.24 subdivision. The nonpublic school is responsible for the 182.25 Internet access costs not covered by this section. 182.26 (e) At the request of a nonpublic school, districts may 182.27 allocate the amount determined in paragraph (b) directly to the 182.28 nonpublic school to pay for or offset the nonpublic school's 182.29 costs for telecommunications access services, however, the 182.30 amount allocated directly to the nonpublic school may not exceed 182.31 the actual amount of the school's ongoing or recurring 182.32 telecommunications access costs. 182.33 Subd. 6. [SEVERABILITY.] If any portion of this section is 182.34 found by a court to be unconstitutional, the remaining portions 182.35 of the section shall remain in effect. 182.36 [EFFECTIVE DATE.] This section is effective for revenue for 183.1 fiscal year 2006. 183.2 Sec. 11. Minnesota Statutes 2004, section 126C.63, 183.3 subdivision 5, is amended to read: 183.4 Subd. 5. [LEVY.] "Levy" means a district's net debt 183.5 service levy after the reduction of debt service equalization 183.6 aid under section 123B.53, subdivision 6. For taxes payable in 183.7 2003 and later, each district's maximum effort debt service levy 183.8 for purposes of subdivision 8, must be reduced by an equal 183.9 number of percentage points if the commissioner of finance 183.10 determines that the levy reduction will not result in a payment 183.11 from the general fund in the state treasury according to section 183.12 16A.641, as would be required under section 126C.72, subdivision 183.13 3. A district's levy that is adjusted under this section must 183.14 not be reduced below30.125 percent of the district's adjusted 183.15 net tax capacity. 183.16 Sec. 12. Minnesota Statutes 2004, section 126C.63, 183.17 subdivision 8, is amended to read: 183.18 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 183.19 effort debt service levy" means the lesser of: 183.20 (1) a levy in whichever of the following amounts is 183.21 applicable: 183.22 (i) in any district receiving a debt service loan for a 183.23 debt service levy payable in 2002 and thereafter, or granted a 183.24 capital loan after January 1, 2002, a levy in total dollar 183.25 amount computed at a rate of4032 percent of adjusted net tax 183.26 capacity for taxes payable in 2002 and thereafter; 183.27 (ii) in any district receiving a debt service loan for a 183.28 debt service levy payable in 2001 or earlier, or granted a 183.29 capital loan before January 2,20012002, a levy in a total 183.30 dollar amount computed at a rate of3228 percent of adjusted 183.31 net tax capacity for taxes payable in 2002 and thereafter; or 183.32 (2) a levy in any district for which a capital loan was 183.33 approved prior to August 1, 1981, a levy in a total dollar 183.34 amount equal to the sum of the amount of the required debt 183.35 service levy and an amount which when levied annually will in 183.36 the opinion of the commissioner be sufficient to retire the 184.1 remaining interest and principal on any outstanding loans from 184.2 the state within 30 years of the original date when the capital 184.3 loan was granted. 184.4 (b) The board in any district affected by the provisions of 184.5 paragraph (a), clause (2), may elect instead to determine the 184.6 amount of its levy according to the provisions of paragraph (a), 184.7 clause (1). If a district's capital loan is not paid within 30 184.8 years because it elects to determine the amount of its levy 184.9 according to the provisions of paragraph (a), clause (2), the 184.10 liability of the district for the amount of the difference 184.11 between the amount it levied under paragraph (a), clause (2), 184.12 and the amount it would have levied under paragraph (a), clause 184.13 (1), and for interest on the amount of that difference, must not 184.14 be satisfied and discharged pursuant to Minnesota Statutes 1988, 184.15 or an earlier edition of Minnesota Statutes if applicable, 184.16 section 124.43, subdivision 4. 184.17 Sec. 13. Laws 1996, chapter 412, article 5, section 24, is 184.18 amended to read: 184.19 Sec. 24. [BONDS PAID FROM TACONITE PRODUCTION TAX 184.20 REVENUES.] 184.21 Subdivision 1. [REFUNDING BONDS.] The appropriation of 184.22 funds from the distribution of taconite production tax revenues 184.23 to the taconite environmental protection tax fund and the 184.24 northeast Minnesota economic protection fund made by Laws 1988, 184.25 chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 184.26 329, article 5, section 20, Laws 1990, chapter 604, article 8, 184.27 section 13, Laws 1992, chapter 499, article 5, section 29,and184.28by sections 18 to 20Laws 1996, chapter 412, article 5, sections 184.29 20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to 184.30 26, shall continue to apply to bonds issued under Minnesota 184.31 Statutes, chapter 475, to refund bonds originally issued 184.32 pursuant to those chapters. 184.33 Subd. 2. [LOCAL PAYMENTS.] School districts that are 184.34 required in Laws 1988, chapter 718, article 7, sections 62 and 184.35 63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, 184.36 chapter 604, article 8, section 13, Laws 1992, chapter 499, 185.1 article 5, section 29,and by sections 18 to 20Laws 1996, 185.2 chapter 412, article 5, sections 20 to 22, and Laws 2000, 185.3 chapter 489, article 5, sections 24 to 26, to impose levies to 185.4 pay debt service on the bonds issued under those provisions to 185.5 the extent the principal and interest on the bonds is not paid 185.6 by distributions from the taconite environmental protection fund 185.7 and the northeast Minnesota economic protection trust, may pay 185.8 their portion of the principal and interest from any funds 185.9 available to them. To the extent a school district uses funds 185.10 other than the proceeds of a property tax levy to pay its share 185.11 of the principal and interest on the bonds, the requirement to 185.12 impose a property tax to pay the local share does not apply to 185.13 the school district. 185.14 [EFFECTIVE DATE.] This section is effective the day 185.15 following final enactment. 185.16 Sec. 14. [LEVY; GLENCOE-SILVER LAKE.] 185.17 For taxes payable in 2006 only, Independent School District 185.18 No. 2859, Glencoe-Silver Lake, may levy an amount up to $81,276. 185.19 Of that amount, $63,850 is for recovering the cost of replacing 185.20 a gymnasium floor at Lakeside Elementary School resulting from 185.21 storm damage and $17,426 is for recovering the cost of the 185.22 Lincoln Junior High School water service line and associated 185.23 work. 185.24 [EFFECTIVE DATE.] This section is effective for taxes 185.25 payable in 2006. 185.26 Sec. 15. [LEVY; RED WING.] 185.27 For taxes payable in 2006 only, Independent School District 185.28 No. 256, Red Wing, may levy an amount up to $158,000 for the 185.29 construction deficit for building the community ice arena. 185.30 [EFFECTIVE DATE.] This section is effective for revenue for 185.31 fiscal year 2006. 185.32 Sec. 16. [RESIDENTIAL PROGRAM FACILITIES; WORTHINGTON.] 185.33 Subject to Minnesota Statutes, section 16A.695, Independent 185.34 School District No. 518, Worthington, may use the facilities 185.35 provided under Laws 1994, chapter 643, section 14, subdivision 185.36 8, as amended by Laws 1995, chapter 76, section 1, to provide 186.1 adult foster care or child foster care services licensed by the 186.2 commissioner of human services or for other special education 186.3 purposes. 186.4 [EFFECTIVE DATE.] This section is effective the day 186.5 following final enactment. 186.6 Sec. 17. [APPROPRIATIONS.] 186.7 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 186.8 indicated in this section are appropriated from the general fund 186.9 to the Department of Education for the fiscal years designated. 186.10 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 186.11 safety aid according to Minnesota Statutes, section 123B.57, 186.12 subdivision 5: 186.13 $ 802,000 ..... 2006 186.14 $ 578,000 ..... 2007 186.15 The 2006 appropriation includes $211,000 for 2005 and 186.16 $591,000 for 2006. 186.17 The 2007 appropriation includes $109,000 for 2006 and 186.18 $469,000 for 2007. 186.19 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 186.20 according to Minnesota Statutes, section 123B.53, subdivision 6: 186.21 $25,654,000 ..... 2006 186.22 $24,134,000 ..... 2007 186.23 The 2006 appropriation includes $4,654,000 for 2005 and 186.24 $21,000,000 for 2006. 186.25 The 2007 appropriation includes $3,911,000 for 2006 and 186.26 $20,223,000 for 2007. 186.27 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 186.28 alternative facilities bonding aid, according to Minnesota 186.29 Statutes, section 123B.59, subdivision 1: 186.30 $19,287,000 ..... 2006 186.31 $19,287,000 ..... 2007 186.32 The 2006 appropriation includes $3,028,000 for 2005 and 186.33 $16,259,000 for 2006. 186.34 The 2007 appropriation includes $3,028,000 for 2006 and 186.35 $16,259,000 for 2007. 186.36 Subd. 5. [TELECOMMUNICATIONS INTERNET ACCESS AID.] For 187.1 telecommunications Internet access aid: 187.2 $4,500,000 ..... 2006 187.3 $4,600,000 ..... 2007 187.4 Subd. 6. [DEFERRED MAINTENANCE AID.] For deferred 187.5 maintenance aid under Minnesota Statutes, section 123B.591: 187.6 $2,684,000 ..... 2007 187.7 The 2007 appropriation includes $0 for 2006 and $2,684,000 187.8 for 2007. 187.9 ARTICLE 5 187.10 NUTRITION AND ACCOUNTING 187.11 Section 1. [123B.748] [REGULAR CLASSROOM EXPENDITURES.] 187.12 Subdivision 1. [DEFINITIONS.] "Direct classroom 187.13 expenditures" means instructional expenditures as defined in the 187.14 uniform financial accounting and reporting standards, excluding 187.15 tuition payments to other Minnesota school districts, capital 187.16 expenditures, and expenditures for athletics, other cocurricular 187.17 activities and extracurricular activities. "Total K-12 187.18 operating expenditures" means the total expenditures in the 187.19 general and food service funds, as defined in the uniform 187.20 financial accounting and reporting standards, excluding tuition 187.21 payments to other Minnesota school districts and capital 187.22 expenditures. 187.23 Subd. 2. [EXPECTED EXPENDITURE LEVEL.] A school district 187.24 must spend at least 65 percent of its total K-12 operating 187.25 expenditures on direct classroom expenditures. If a school 187.26 district's direct classroom expenditures in fiscal year 2005 are 187.27 less than 65 percent of its total K-12 operating expenditures, 187.28 the district must increase its direct classroom expenditures by 187.29 at least two percentage points per year beginning in fiscal year 187.30 2006. 187.31 Subd. 3. [SUPERINTENDENT VERIFICATION.] A superintendent 187.32 must include in the audited financial statements submitted to 187.33 the commissioner under section 123B.77 a letter signed by the 187.34 superintendent certifying the percent of the district's total 187.35 K-12 operating expenditures that were actually spent on direct 187.36 classroom expenditures for that school year. 188.1 Subd. 4. [WAIVER.] A school district that is unable to 188.2 meet the expenditure standards established under subdivision 2 188.3 may apply to the commissioner for a waiver. The waiver request 188.4 must list the reasons why the district's direct classroom 188.5 expenditures cannot meet the requirements of subdivision 2 and 188.6 describe the changes the district intends to meet in the 188.7 subsequent year in order to meet the direct classroom 188.8 instruction requirements. The commissioner must grant or deny a 188.9 waiver request within 60 days of receiving the request. 188.10 [EFFECTIVE DATE.] This section is effective July 1, 2005, 188.11 for the 2005-2006 school year. 188.12 Sec. 2. Minnesota Statutes 2004, section 123B.749, is 188.13 amended to read: 188.14 123B.749 [STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.] 188.15 (a) Prior to approving a collective bargaining agreement 188.16 that does not result from an interest arbitration decision, a 188.17 school board must determine by board resolution that the 188.18 proposed agreement will not cause structural imbalance in the 188.19 district's budget during the period of the agreement. 188.20 (b) A school board may only determine that an agreement 188.21 will not cause structural imbalance if expenditures will not 188.22 exceed available funds, taking into account: 188.23 (1) current state aid formulas; and 188.24 (2) reasonable and comprehensive projections of ongoing 188.25 revenues and expenditures for the period of the agreement.It188.26is expected thatOnetime revenue may not be used for ongoing 188.27 expenditures. Any amount in excess of the board's guideline for 188.28 the district's general fund balance is not onetime revenue for 188.29 the purposes of this section. The school board must make 188.30 available with the resolution a summary of the projections and 188.31 calculations supporting the determination. The projections and 188.32 calculations must include state aid formulas, pupil units, and 188.33 employee costs, including the terms of labor agreements, 188.34 including the agreement under consideration, fringe benefits, 188.35 severance pay, and staff changes. 188.36 (c) In addition to the determination required in paragraph 189.1 (a), the school board must project revenues, expenditures, and 189.2 fund balances forone yeartwo years following the period of the 189.3 agreement. The projections must include the categories of 189.4 information described in paragraph (b), be reasonable and 189.5 comprehensive, and reference current state aid formulas. 189.6 (d) All projections and calculations required by this 189.7 section and estimated district employee terminations must be 189.8 made available to the public prior toand, at, and after the 189.9 meeting where the resolution is adopted in a manner consistent 189.10 with state law on public notice and access to public data. 189.11 (e) In an interest arbitration, the district must submit, 189.12 and the exclusive bargaining representative may submit, proposed 189.13 determinations with supporting projections and calculations 189.14 consistent with paragraph (b) of the effect of the potential 189.15 decision on the structural balance of the district's budget. 189.16 The arbitrator must consider the potential effect of a decision 189.17 on the structural balance of the district's budget for the term 189.18 of the agreement. The arbitrator's decision must describe the 189.19 effect of the decision on the structural balance of the 189.20 district's budget in a manner consistent with paragraph (b). 189.21 The arbitrator's decision must also show the effect of the 189.22 decision on the school budget for one year following the term of 189.23 the contract at issue. Within 30 days of receipt of the 189.24 decision or when the board acts on the decision, whichever is 189.25 earlier, the school board must by resolution determine the 189.26 effect of the decision on the structural balance of its budget 189.27 for the term of the agreement consistent with paragraph (b). 189.28 (f) A copy of the resolution with the supporting 189.29 projections and calculations must be submitted to the 189.30 commissioner of education with the uniform collective bargaining 189.31 agreement settlement document within 30 days of adoption of the 189.32 resolution. The commissioner must develop a model form for use 189.33 by districts in reporting projections and calculations. The 189.34 commissioner must not accept any reports that fail to comply 189.35 with this section. The commissioner must make all resolutions, 189.36 projections, and calculations available to the public. 190.1 (g) Compliance with this section by itself is not an unfair 190.2 labor practice under section 179A.13, subdivision 2. 190.3 Sec. 3. Minnesota Statutes 2004, section 123B.75, 190.4 subdivision 5, is amended to read: 190.5 Subd. 5. [LEVY RECOGNITION.] (a) "School district tax 190.6 settlement revenue" means the current, delinquent, and 190.7 manufactured home property tax receipts collected by the county 190.8 and distributed to the school district. 190.9 (b)In June of 2003, the school district must recognize as190.10revenue, in the fund for which the levy was made, the lesser of:190.11(1) the sum of May, June, and July school district tax190.12settlement revenue received in that calendar year, plus general190.13education aid according to section 126C.13, subdivision 4,190.14received in July and August of that calendar year; or190.15(2) the sum of:190.16(i) 31 percent of the referendum levy certified according190.17to section 126C.17, in calendar year 2000; plus190.18(ii) the entire amount of the levy certified in the prior190.19calendar year according to section 124D.86, subdivision 4, for190.20school districts receiving revenue under sections 124D.86,190.21subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions190.221, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision190.232; 126C.457; and 126C.48, subdivision 6.190.24(c)For fiscal year 2004 and later years, in June of each 190.25 year, the school district must recognize as revenue, in the fund 190.26 for which the levy was made, the lesser of: 190.27 (1) the sum of May, June, and July school district tax 190.28 settlement revenue received in that calendar year, plus general 190.29 education aid according to section 126C.13, subdivision 4, 190.30 received in July and August of that calendar year; or 190.31 (2) the sum of: 190.32 (i) the greater of4548.6 percent of the referendum levy 190.33 certified according to section 126C.17, in the prior calendar 190.34 year or 31 percent of the referendum levy certified according to 190.35 section 126C.17, in calendar year 2000; plus 190.36 (ii) the entire amount of the levy certified in the prior 191.1 calendar year according to section 124D.86, subdivision 4, for 191.2 school districts receiving revenue under sections 124D.86, 191.3 subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 191.4 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 191.5 2; 126C.457; and 126C.48, subdivision 6; plus 191.6 (iii)4548.6 percent of the amount of the levy certified 191.7 in the prior calendar year for the school district's general and 191.8 community service funds, plus or minus auditor's adjustments, 191.9 not including levy portions that are assumed by the state, that 191.10 remains after subtracting the referendum levy certified 191.11 according to section 126C.17 and the amount recognized according 191.12 to clause (ii). 191.13 Sec. 4. Minnesota Statutes 2004, section 124D.111, 191.14 subdivision 1, is amended to read: 191.15 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 191.16 year, the state must paydistricts participatingparticipants in 191.17 the national school lunch program the amount of eight cents for 191.18 each full paid, reduced, and free student lunch served to 191.19 studentsin the district. 191.20 [EFFECTIVE DATE.] This section is effective for fiscal year 191.21 2006. 191.22 Sec. 5. Minnesota Statutes 2004, section 124D.111, 191.23 subdivision 2, is amended to read: 191.24 Subd. 2. [APPLICATION.] A schooldistrictsdistrict, 191.25 charter school, nonpublic school, or other participant in the 191.26 national school lunch program shall apply to the department for 191.27 this payment on forms provided by the department. 191.28 [EFFECTIVE DATE.] This section is effective for fiscal year 191.29 2006. 191.30 Sec. 6. Minnesota Statutes 2004, section 124D.118, 191.31 subdivision 4, is amended to read: 191.32 Subd. 4. [REIMBURSEMENT.] In accordance with program 191.33 guidelines, the commissioner shall reimburse each participating 191.34 public or nonpublic schoolnine14 cents for each half-pint of 191.35 milk that is served to kindergarten students and is not part of 191.36 a school lunch or breakfast reimbursed under section 124D.111 or 192.1 124D.1158. 192.2 [EFFECTIVE DATE.] This section is effective for fiscal year 192.3 2006. 192.4 Sec. 7. Minnesota Statutes 2004, section 127A.42, 192.5 subdivision 2, is amended to read: 192.6 Subd. 2. [VIOLATIONS OF LAW.] The commissioner may reduce 192.7 or withhold the district's state aid for any school year 192.8 whenever the board of the district authorizes or permits 192.9 violations of law within the district by: 192.10 (1) employing a teacher who does not hold a valid teaching 192.11 license or permit in a public school; 192.12 (2) noncompliance with a mandatory rule of general 192.13 application promulgated by the commissioner in accordance with 192.14 statute, unless special circumstances make enforcement 192.15 inequitable, impose an extraordinary hardship on the district, 192.16 or the rule is contrary to the district's best interests; 192.17 (3) the district's continued performance of a contract made 192.18 for the rental of rooms or buildings for school purposes or for 192.19 the rental of any facility owned or operated by or under the 192.20 direction of any private organization, if the contract has been 192.21 disapproved, the time for review of the determination of 192.22 disapproval has expired, and no proceeding for review is 192.23 pending; 192.24 (4) any practice which is a violation of sections 1 and 2 192.25 of article 13 of the Constitution of the state of Minnesota; 192.26 (5) failure to reasonably provide for a resident pupil's 192.27 school attendance under Minnesota Statutes; 192.28 (6) noncompliance with state laws prohibiting 192.29 discrimination because of race, color, creed, religion, national 192.30 origin, sex, age, marital status, status with regard to public 192.31 assistance or disability, as defined in sections 363A.08 to 192.32 363A.19 and 363A.28, subdivision 10;or192.33 (7) using funds contrary to the statutory purpose of the 192.34 funds; or 192.35 (8) failing to submit a report under section 123B.749, 192.36 paragraph (f). 193.1 The reduction or withholding must be made in the amount and upon 193.2 the procedure provided in this section. 193.3 Sec. 8. Minnesota Statutes 2004, section 127A.45, 193.4 subdivision 2, is amended to read: 193.5 Subd. 2. [DEFINITIONS.] (a) The term "other district 193.6 receipts" means payments by county treasurers pursuant to 193.7 section 276.10, apportionments from the school endowment fund 193.8 pursuant to section 127A.33, apportionments by the county 193.9 auditor pursuant to section 127A.34, subdivision 2, and payments 193.10 to school districts by the commissioner of revenue pursuant to 193.11 chapter 298. 193.12 (b) The term "cumulative amount guaranteed" means the 193.13 product of 193.14 (1) the cumulative disbursement percentage shown in 193.15 subdivision 3; times 193.16 (2) the sum of 193.17 (i)80 percentthe current year aid payment percentage of 193.18 the estimated aid and credit entitlements paid according to 193.19 subdivision 13; plus 193.20 (ii) 100 percent of the entitlements paid according to 193.21 subdivisions 11 and 12; plus 193.22 (iii) the other district receipts. 193.23 (c) The term "payment date" means the date on which state 193.24 payments to districts are made by the electronic funds transfer 193.25 method. If a payment date falls on a Saturday, a Sunday, or a 193.26 weekday which is a legal holiday, the payment shall be made on 193.27 the immediately preceding business day. The commissioner may 193.28 make payments on dates other than those listed in subdivision 3, 193.29 but only for portions of payments from any preceding payment 193.30 dates which could not be processed by the electronic funds 193.31 transfer method due to documented extenuating circumstances. 193.32 (d) "Current year payment percentage" means 84.3 percent. 193.33 [EFFECTIVE DATE.] This section is effective for state aid 193.34 payments for fiscal year 2006. 193.35 Sec. 9. Minnesota Statutes 2004, section 127A.45, 193.36 subdivision 10, is amended to read: 194.1 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 194.2 fiscal year state general fund payments for a district 194.3 nonoperating fund must be made at80 percentthe current year 194.4 aid payment percentage of the estimated entitlement during the 194.5 fiscal year of the entitlement. This amount shall be paid in 12 194.6 equal monthly installments. The amount of the actual 194.7 entitlement, after adjustment for actual data, minus the 194.8 payments made during the fiscal year of the entitlement must be 194.9 paid prior to October 31 of the following school year. The 194.10 commissioner may make advance payments of debt service 194.11 equalization aid for a district's debt service fund earlier than 194.12 would occur under the preceding schedule if the district submits 194.13 evidence showing a serious cash flow problem in the fund. The 194.14 commissioner may make earlier payments during the year and, if 194.15 necessary, increase the percent of the entitlement paid to 194.16 reduce the cash flow problem. 194.17 [EFFECTIVE DATE.] This section is effective for state aid 194.18 payments for fiscal year 2006. 194.19 Sec. 10. Minnesota Statutes 2004, section 127A.45, 194.20 subdivision 14, is amended to read: 194.21 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 194.22 according to sections 123B.40 to 123B.48 for pupils attending 194.23 nonpublic schools as follows: 194.24 (1) an advance payment by November 30 equal to80 percent194.25 the current year aid payment percentage of the estimated 194.26 entitlement for the current fiscal year; and 194.27 (2) a final payment by October 31 of the following fiscal 194.28 year, adjusted for actual data. 194.29 If a payment advance to meet cash flow needs is requested 194.30 by a district and approved by the commissioner, the state shall 194.31 pay nonpublic pupil transportation aid according to section 194.32 123B.92 by October 31. 194.33 [EFFECTIVE DATE.] This section is effective for state aid 194.34 payments for fiscal year 2006. 194.35 Sec. 11. Minnesota Statutes 2004, section 127A.45, 194.36 subdivision 16, is amended to read: 195.1 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 195.2 subdivision 3,80 percentthe current year aid payment 195.3 percentage of the amounts under section 123A.26, subdivision 3, 195.4 shall be paid in equal installments on August 30, December 30, 195.5 and March 30, with a20 percentfinal adjustment payment on 195.6 October 30 of the next fiscal year of the remaining amount. 195.7 [EFFECTIVE DATE.] This section is effective for state aid 195.8 payments for fiscal year 2006. 195.9 Sec. 12. [FUND TRANSFERS.] 195.10 Subdivision 1. [LAKE CRYSTAL-WELLCOME MEMORIAL.] (a) 195.11 Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 195.12 on June 30, 2005, upon approval of the commissioner of 195.13 education, Independent School District No. 2071, Lake 195.14 Crystal-Wellcome Memorial, may permanently transfer up to 195.15 $132,754 from its reserved account for handicapped access to its 195.16 undesignated general fund balance. 195.17 (b) Prior to making the fund transfer, Independent School 195.18 District No. 2071, Lake Crystal-Wellcome Memorial, must 195.19 demonstrate to the commissioner's satisfaction that the 195.20 district's school buildings are accessible to students or 195.21 employees with disabilities. 195.22 (c) Notwithstanding Minnesota Statutes, section 123B.79 or 195.23 123B.80, on June 30 of 2005, 2006, and 2007, Independent School 195.24 District No. 2071, Lake Crystal-Wellcome Memorial, may 195.25 permanently transfer any balance in its reserved for operating 195.26 capital account resulting from the sale of school property to 195.27 its undesignated general fund balance. 195.28 Subd. 2. [ROCKFORD.] Notwithstanding Minnesota Statutes, 195.29 sections 123B.79, 123B.80, and 475.61, subdivision 4, 195.30 Independent School District No. 883, Rockford, on June 30, 2005, 195.31 may permanently transfer up to $660,000 from its debt redemption 195.32 fund to the undesignated balance of its general fund without 195.33 making a levy reduction. 195.34 Subd. 3. [RUSSELL.] Notwithstanding Minnesota Statutes, 195.35 section 123B.79 or 123B.80, on June 30, 2005, Independent School 195.36 District No. 418, Russell, may transfer up to $50,000 from its 196.1 reserved capital accounts in its general fund to its 196.2 undesignated fund balance. 196.3 Subd. 4. [RUTHTON.] Notwithstanding Minnesota Statutes, 196.4 section 123B.79 or 123B.80, on June 30, 2005, Independent School 196.5 District No. 584, Ruthton, may permanently transfer up to 196.6 $140,000 from its reserved for operating capital account to the 196.7 undesignated general fund balance. 196.8 Subd. 5. [WINDOM.] Notwithstanding Minnesota Statutes, 196.9 section 123B.79 or 123B.80, Independent School District No. 177, 196.10 Windom, on June 30, 2005, may permanently transfer up to 196.11 $270,000 from its reserved for operating capital account to the 196.12 undesignated balance in its general fund. 196.13 [EFFECTIVE DATE.] This section is effective the day 196.14 following final enactment. 196.15 Sec. 13. [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 196.16 FORKS.] 196.17 Notwithstanding the time limits established in Minnesota 196.18 Statutes, section 123B.58, subdivision 3, Independent School 196.19 District No. 595, East Grand Forks, may levy its remaining 196.20 disabled access levy authority over five or fewer years. 196.21 [EFFECTIVE DATE.] This section is effective the day 196.22 following final enactment. 196.23 Sec. 14. [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 196.24 (a) The commissioner of education, when making offsetting 196.25 levy adjustments between levy categories to ensure that each 196.26 levy category is positive for Independent School District No. 196.27 599, Fertile-Beltrami, shall make such adjustments first between 196.28 levy categories that are imposed on identical tax bases before 196.29 making such adjustments between levy categories that are imposed 196.30 on different tax bases. The commissioner may make offsetting 196.31 levy adjustments between the general fund and the debt service 196.32 fund, if necessary. 196.33 (b) The commissioner of education must make the offsetting 196.34 levy adjustments according to the process in paragraph (a) until 196.35 Independent School District No. 599, Fertile-Beltrami's current 196.36 referendum authority, under Minnesota Statutes, section 126C.17, 197.1 expires. 197.2 Sec. 15. [FUNDING REDUCTION.] 197.3 If House File 1664 or a similarly styled bill does not pass 197.4 the house of representatives, the commissioner of education must 197.5 adjust the current year aid payment percentage under Minnesota 197.6 Statutes, section 127A.45, subdivision 3, to reduce spending by 197.7 $134,000,000 during the 2006-2007 biennium. 197.8 Sec. 16. [APPROPRIATIONS.] 197.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 197.10 indicated in this section are appropriated from the general fund 197.11 to the Department of Education for the fiscal years designated. 197.12 Subd. 2. [SCHOOL LUNCH.] For school lunch aid according to 197.13 Minnesota Statutes, section 124D.111, and Code of Federal 197.14 Regulations, title 7, section 210.17: 197.15 $7,748,000 ..... 2006 197.16 $7,826,000 ..... 2007 197.17 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 197.18 MILK.] For traditional school breakfast aid and kindergarten 197.19 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 197.20 $4,934,000 ..... 2006 197.21 $5,023,000 ..... 2007 197.22 Subd. 4. [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 197.23 summer food service replacement aid under Minnesota Statutes, 197.24 section 124D.119: 197.25 $ 150,000 ..... 2006 197.26 $ 150,000 ..... 2007 197.27 ARTICLE 6 197.28 LIBRARIES 197.29 Section 1. [DEPARTMENT OF EDUCATION; LIBRARY 197.30 APPROPRIATIONS.] 197.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 197.32 indicated in this section are appropriated from the general fund 197.33 to the Department of Education for the fiscal years designated. 197.34 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 197.35 grants under Minnesota Statutes, section 134.355: 197.36 $ 8,570,000 ..... 2006 198.1 $ 8,570,000 ..... 2007 198.2 The 2006 appropriation includes $1,345,000 for 2005 and 198.3 $7,225,000 for 2006. 198.4 The 2007 appropriation includes $1,345,000 for 2006 and 198.5 $7,225,000 for 2007. 198.6 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 198.7 grants under Minnesota Statutes, sections 134.353 and 134.354, 198.8 to multicounty, multitype library systems: 198.9 $ 903,000 ..... 2006 198.10 $ 903,000 ..... 2007 198.11 The 2006 appropriation includes $141,000 for 2005 and 198.12 $762,000 for 2006. 198.13 The 2007 appropriation includes $141,000 for 2006 and 198.14 $762,000 for 2007. 198.15 Subd. 4. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 198.16 licenses to online databases selected in cooperation with the 198.17 Higher Education Services Office for school media centers, 198.18 public libraries, state government agency libraries, and public 198.19 or private college or university libraries: 198.20 $1,039,000 ..... 2006 198.21 $1,091,000 ..... 2007 198.22 Any balance in the first year does not cancel but is 198.23 available in the second year. 198.24 Subd. 5. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 198.25 regional library telecommunications aid under Minnesota 198.26 Statutes, section 134.355: 198.27 $1,200,000 ..... 2006 198.28 $1,200,000 ..... 2007 198.29 The 2006 appropriation includes $188,000 for 2005 and 198.30 $1,012,000 for 2006. 198.31 The 2007 appropriation includes $188,000 for 2006 and 198.32 $1,012,000 for 2007. 198.33 Subd. 6. [MNLINK.] To support school media center and 198.34 public library participation in MnLink: 198.35 $ 250,000 ..... 2006 198.36 $ 250,000 ..... 2007 199.1 ARTICLE 7 199.2 EARLY EDUCATION 199.3 Section 1. Minnesota Statutes 2004, section 121A.17, 199.4 subdivision 1, is amended to read: 199.5 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 199.6 Every school board must provide for a mandatory program of early 199.7 childhood developmental screening for children once before 199.8 school entrance, targeting children who are between3-1/2three 199.9 and four years old. This screening program must be established 199.10 either by one board, by two or more boards acting in 199.11 cooperation, by service cooperatives, by early childhood family 199.12 education programs, or by other existing programs. This 199.13 screening examination is a mandatory requirement for a student 199.14 to continue attending kindergarten or first grade in a public 199.15 school. A child need not submit to developmental screening 199.16 provided by a board if the child's health records indicate to 199.17 the board that the child has received comparable developmental 199.18 screening from a public or private health care organization or 199.19 individual health care provider. A public school must assign a 199.20 child a student identification number, as defined by the 199.21 commissioner, at the time the child receives a developmental 199.22 screening or the child's parent or guardian provides the public 199.23 school with the child's health records indicating that the child 199.24 received a comparable developmental screening. A school 199.25 district must transmit essential data under section 125B.07, 199.26 subdivision 6, to the department. Districts are encouraged to 199.27 reduce the costs of preschool developmental screening programs 199.28 byutilizingusing volunteers in implementing the program. 199.29 [EFFECTIVE DATE.] This section is effective the day 199.30 following final enactment. 199.31 Sec. 2. Minnesota Statutes 2004, section 121A.17, 199.32 subdivision 3, is amended to read: 199.33 Subd. 3. [SCREENING PROGRAM.] (a) A screening program must 199.34 include at least the following components: developmental 199.35 assessments that measure the child's cognitive development, 199.36 hearing and vision screening or referral, immunization review 200.1 and referral, the child's height and weight, identification of 200.2 risk factors that may influence learning, an interview with the 200.3 parent about the child, and referral for assessment, diagnosis, 200.4 and treatment when potential needs are identified. The district 200.5 and the person performing or supervising the screening must 200.6 provide a parent or guardian with clear written notice that the 200.7 parent or guardian may decline to answer questions or provide 200.8 information about family circumstances that might affect 200.9 development and identification of risk factors that may 200.10 influence learning. The notice must clearly state that 200.11 declining to answer questions or provide information does not 200.12 prevent the child from being enrolled in kindergarten or first 200.13 grade if all other screening components are met. If a parent or 200.14 guardian is not able to read and comprehend the written notice, 200.15 the district and the person performing or supervising the 200.16 screening must convey the information in another manner. The 200.17 notice must also inform the parent or guardian that a child need 200.18 not submit to the district screening program if the child's 200.19 health records indicate to the school that the child has 200.20 received comparable developmental screening performed within the 200.21 preceding 365 days by a public or private health care 200.22 organization or individual health care provider. The notice 200.23 must be given to a parent or guardian at the time the district 200.24 initially provides information to the parent or guardian about 200.25 screening and must be given again at the screening location. 200.26 (b) All screening components shall be consistent with the 200.27 standards of the state commissioner of health for early 200.28 developmental screening programs. A developmental screening 200.29 program must not provide laboratory tests or a physical 200.30 examination to any child. The district must request from the 200.31 public or private health care organization or the individual 200.32 health care provider the results of any laboratory test or 200.33 physical examination within the 12 months preceding a child's 200.34 scheduled screening. 200.35 (c) If a child is without health coverage, the school 200.36 district must refer the child to an appropriate health care 201.1 provider. 201.2 (d) A board may offer additional components such as 201.3 nutritional, physical and dental assessments, review of family 201.4 circumstances that might affect development, blood pressure, 201.5 laboratory tests, and health history. 201.6 (e) If a statement signed by the child's parent or guardian 201.7 is submitted to the administrator or other person having general 201.8 control and supervision of the school that the child has not 201.9 been screened because of conscientiously held beliefs of the 201.10 parent or guardian, the screening is not required. 201.11 Sec. 3. Minnesota Statutes 2004, section 121A.17, 201.12 subdivision 5, is amended to read: 201.13 Subd. 5. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 201.14 The board must inform each resident family with a child eligible 201.15 to participate in the developmental screening program about the 201.16 availability of the program and the state's requirement that a 201.17 child receive a developmental screening or provide health 201.18 records indicating that the child received a comparable 201.19 developmental screening from a public or private health care 201.20 organization or individual health care provider not later than 201.21 30 days after the first day of attending kindergarten in a 201.22 public school. A school district must inform all resident 201.23 families with eligible children under age seven that their 201.24 children may receive a developmental screening conducted either 201.25 by the school district or by a public or private health care 201.26 organization or individual health care provider. 201.27 [EFFECTIVE DATE.] This section is effective the day 201.28 following final enactment. 201.29 Sec. 4. Minnesota Statutes 2004, section 121A.19, is 201.30 amended to read: 201.31 121A.19 [DEVELOPMENTAL SCREENING AID.] 201.32 Each school year, the state must pay a district$40$50 for 201.33 each three-year-old child screened; $40 for each four-year-old 201.34 child screened; and $30 for each five-year-old child screened 201.35 prior to kindergarten according to the requirements of section 201.36 121A.17. If this amount of aid is insufficient, the district 202.1 may permanently transfer from the general fund an amount that, 202.2 when added to the aid, is sufficient. 202.3 Sec. 5. Minnesota Statutes 2004, section 124D.135, 202.4 subdivision 1, is amended to read: 202.5 Subdivision 1. [REVENUE.] The revenue for early childhood 202.6 family education programs for a school district equals$120 for202.7fiscal years 2003 and 2004 and$96 for fiscal year 2005, $115 202.8 for fiscal year 2006, and $125 for fiscal year 2007 and later, 202.9 times the greater of: 202.10 (1) 150; or 202.11 (2) the number of people under five years of age residing 202.12 in the district on October 1 of the previous school year. 202.13 [EFFECTIVE DATE.] This section is effective for revenue for 202.14 fiscal year 2006. 202.15 Sec. 6. Minnesota Statutes 2004, section 124D.135, 202.16 subdivision 5, is amended to read: 202.17 Subd. 5. [USE OF REVENUE RESTRICTED.] Early childhood 202.18 family education revenue may be used only for early childhood 202.19 family education programs. Not more than five percent of early 202.20 childhood family education revenue, as defined in subdivision 7, 202.21 may be used to administer early childhood family education 202.22 programs. 202.23 Sec. 7. Minnesota Statutes 2004, section 124D.15, 202.24 subdivision 1, is amended to read: 202.25 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 202.26 group of districts may establish a school readiness program 202.27 foreligiblechildren age three to entering kindergarten. The 202.28 purpose of a school readiness program is toprovide all eligible202.29children adequate opportunities to participate in child202.30development programs that enable the children to enter school202.31with the necessary skills and behavior and family stability and202.32support to progress and flourishprepare children cognitively 202.33 and physically and teach the self-discipline necessary to enter 202.34 kindergarten. 202.35 Sec. 8. Minnesota Statutes 2004, section 124D.15, 202.36 subdivision 3, is amended to read: 203.1 Subd. 3. [PROGRAMELIGIBILITYREQUIREMENTS.] (a) A school 203.2 readiness program provider mustinclude the following: 203.3 (1)a comprehensive plan to anticipate and meet the needs203.4of participating families by coordinating existing social203.5services programs and by fostering collaboration among agencies203.6or other community-based organizations and programs that provide203.7a full range of flexible, family-focused services to families203.8with young childrenassess each child's cognitive skills when 203.9 the child enters and again before the child leaves the program 203.10 to inform program planning and promote kindergarten readiness; 203.11 (2)a development and learning component to help children203.12develop appropriate social, cognitive, and physical skills, and203.13emotional well-being;203.14(3) health referral services to address children's medical,203.15dental, mental health, and nutritional needsprovide 203.16 comprehensive program content based on early childhood research 203.17 and professional practice that is focused on children's 203.18 cognitive skills and development and prepares children for the 203.19 transition to kindergarten; 203.20(4)(3)a nutrition component to meet children's daily203.21nutritional needsarrange for early childhood screening and 203.22 appropriate referral; 203.23(5)(4)parents' involvement in meeting children's203.24educational, health, social service, and other needsinvolve 203.25 parents in program planning and decision making; 203.26(6)(5)community outreach to ensure participation by203.27families who represent the racial, cultural, and economic203.28diversity of the community;coordinate with relevant 203.29 community-based services; and 203.30(7)(6)community-based staff and program resources,203.31including interpreters, that reflect the racial and ethnic203.32characteristics of the children participating in the program;203.33and203.34(8) a literacy component to ensure that the literacy needs203.35of parents are addressed through referral to and cooperation203.36 cooperate with adult basic education programs and other adult 204.1 literacy programs. 204.2 (b) A district that establishes a school readiness program 204.3 under this section must monitor the school performance of those 204.4 students who participate in the program and subsequently attend 204.5 a district school in grades kindergarten through grade 3, 204.6 compare the school performance of those students with other 204.7 students in the same grade in the district who did not 204.8 participate in a school readiness program, and report the 204.9 performance comparisons annually by May 1 to the school board 204.10 and the department. 204.11 Sec. 9. Minnesota Statutes 2004, section 124D.15, is 204.12 amended by adding a subdivision to read: 204.13 Subd. 3a. [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 204.14 school readiness program provider must submit a biennial plan 204.15 for approval by the commissioner before receiving aid under 204.16 section 124D.16. The plan must describe how the program meets 204.17 the program requirements under subdivision 3. A school district 204.18 by April 1 must submit the plan for approval by the commissioner 204.19 in the form and manner prescribed by the commissioner. One-half 204.20 the districts must first submit the plan by April 1, 2006, and 204.21 one-half the districts must first submit the plan by April 1, 204.22 2007, as determined by the commissioner. 204.23 (b) Programs receiving school readiness funds annually must 204.24 submit a report to the department. 204.25 Sec. 10. Minnesota Statutes 2004, section 124D.15, 204.26 subdivision 5, is amended to read: 204.27 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 204.28 districtis encouraged tomay contract with apubliccharter 204.29 school ornonprofitcommunity-based organization to provide 204.30 eligible children developmentally appropriate services that meet 204.31 the program requirements in subdivision 3. In the alternative, 204.32 a district may pay tuition or fees to place an eligible child in 204.33 an existing program. A district may establish a new program 204.34 where no existing, reasonably accessible program meets the 204.35 program requirements in subdivision 3. Districts must submit a 204.36 copy of each contract to the commissioner with the biennial plan. 205.1 Services may be provided in a site-based program or in the home 205.2 of the child or a combination of both. The district may not 205.3 restrict participation to district residents. 205.4 Sec. 11. Minnesota Statutes 2004, section 124D.15, 205.5 subdivision 10, is amended to read: 205.6 Subd. 10. [SUPERVISION.] A program provided by a board 205.7 must be supervised by a licensed early childhood teacher, a 205.8 certified early childhood educator, or a licensed parent 205.9 educator.A program provided according to a contract between a205.10district and a nonprofit organization or another private205.11organization must be supervised and staffed according to the205.12terms of the contract.205.13 Sec. 12. Minnesota Statutes 2004, section 124D.15, 205.14 subdivision 12, is amended to read: 205.15 Subd. 12. [PROGRAM FEES.] A districtmaymust adopt a 205.16 sliding fee schedule based on a family's income but must waive a 205.17 fee for a participant unable to pay.The fees charged must be205.18designed to enable eligible children of all socioeconomic levels205.19to participate in the program.205.20 Sec. 13. Minnesota Statutes 2004, section 124D.15, is 205.21 amended by adding a subdivision to read: 205.22 Subd. 14. [ASSISTANCE.] The department must assist 205.23 districts, upon request, with programs under this section. 205.24 Sec. 14. Minnesota Statutes 2004, section 124D.16, 205.25 subdivision 2, is amended to read: 205.26 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 205.27 receive school readiness aid for eligible prekindergarten pupils 205.28 enrolled in a school readiness program under section 124D.15 if 205.29 theprogrambiennial plan required bysubdivision 1section 205.30 124D.15, subdivision 3a, has been approved by the commissioner. 205.31 (b) For fiscal year 2002 and thereafter, a district must 205.32 receive school readiness aid equal to: 205.33 (1) the number ofeligiblefour-year-old children in the 205.34 district on October 1 for the previous school year times the 205.35 ratio of 50 percent of the total school readiness aid for that 205.36 year to the total number ofeligiblefour-year-old children 206.1 reported to the commissioner for the previous school year; plus 206.2 (2) the number of pupils enrolled in the school district 206.3 from families eligible for the free or reduced school lunch 206.4 program for thesecondprevious school year times the ratio of 206.5 50 percent of the total school readiness aid for that year to 206.6 the total number of pupils in the state from families eligible 206.7 for the free or reduced school lunch program for thesecond206.8 previous school year. 206.9 Sec. 15. Minnesota Statutes 2004, section 124D.16, 206.10 subdivision 3, is amended to read: 206.11 Subd. 3. [USE OF AID.] School readiness aid shall be used 206.12 only to provide a school readiness program and may be used to 206.13 provide transportation. Not more than five percent ofthe206.14aidprogram revenue, as defined in subdivision 5, may be used 206.15 for the cost of administering the program. Aid must be used to 206.16 supplement and not supplant local, state, and federal funding. 206.17 Aid may not be used for instruction and services required under 206.18 sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 206.19 purchase land or construct buildings, but may be used to lease 206.20 or renovate existing buildings. 206.21 Sec. 16. [124D.175] [MINNESOTA EARLY LEARNING FOUNDATION 206.22 PROPOSAL.] 206.23 (a) To the extent revenue is available for the purposes of 206.24 this section, the commissioner must implement paragraphs (b) and 206.25 (c). 206.26 (b) The commissioner must implement an early childhood 206.27 development grant program for low-income and other families that 206.28 increases the effectiveness of early childhood development 206.29 programs, which may include child care programs, and leads to 206.30 improved early childhood parent education and children's 206.31 kindergarten readiness. Children eligible to participate under 206.32 this section must demonstrate two or more of the following 206.33 characteristics: 206.34 (1) are members of a household with an income less than 75 206.35 percent of the statewide median family income; 206.36 (2) live in divorced or separated households headed by a 207.1 single parent; 207.2 (3) have experienced residential instability, homelessness, 207.3 or have parents who have been unemployed in the past 12 months; 207.4 (4) have a parent who has not received a high school 207.5 diploma or its equivalent; 207.6 (5) speak a primary language other than English; 207.7 (6) are determined by a qualified early childhood or other 207.8 professional to require additional developmental screening, 207.9 diagnosis, or treatment; 207.10 (7) have been placed in three or more child care settings 207.11 in the past 12 months or are determined by a qualified early 207.12 childhood or other professional to have been a victim of 207.13 bullying; 207.14 (8) have a parent who has undergone treatment for chemical 207.15 abuse or mental illness; or 207.16 (9) other criteria determined by the commissioner in 207.17 consultation with qualified early childhood or other 207.18 professionals. 207.19 (c) The program must include: 207.20 (1) grant awards to existing early childhood development 207.21 program providers that also provide parent education programs 207.22 and to qualified providers proposing to implement pilot programs 207.23 for this same purpose; 207.24 (2) grant awards to enable low-income families to 207.25 participate in these programs; 207.26 (3) grant awards to improve overall academic quality; and 207.27 (4) an evaluation of the academic and financial efficacy of 207.28 all these programs. 207.29 This grant program must not supplant existing early childhood 207.30 development programs or child care funds. 207.31 (c) The commissioner must contract with a private 207.32 nonprofit, section 501(c)(3) organization to implement the 207.33 requirements of paragraph (b). The private nonprofit 207.34 organization must be governed by a board of directors composed 207.35 of members from the public and nonpublic sectors, where the 207.36 nonpublic sector members compose a simple majority of board 208.1 members and where the public sector members are state and local 208.2 government officials and kindergarten through grade 12 or 208.3 postsecondary educators appointed by the governor. The board of 208.4 directors must appoint an executive director and must seek 208.5 advice from geographically and ethnically diverse parents of 208.6 young children and representatives of early childhood 208.7 development providers, kindergarten through grade 12 and 208.8 postsecondary educators, public libraries and the business 208.9 sector. All other terms and conditions under which board 208.10 members serve and operate must be described in the articles and 208.11 bylaws of the organization. The private nonprofit organization 208.12 is not a state agency and is not subject to any laws governing 208.13 public agencies. 208.14 (d) This section expires June 30, 2011. 208.15 Sec. 17. Minnesota Statutes 2004, section 126C.15, is 208.16 amended by adding a subdivision to read: 208.17 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 208.18 under subdivision 2, paragraph (c), must be reserved and used 208.19 for programs and activities that prepare children ages 3-1/2 208.20 from families eligible for the free or reduced-price school 208.21 lunch program to enter kindergarten. Programs may serve 208.22 resident and nonresident children. Districts may contract with 208.23 private preschools and other providers of prekindergarten 208.24 programs. 208.25 Sec. 18. Minnesota Statutes 2004, section 179A.03, 208.26 subdivision 14, is amended to read: 208.27 Subd. 14. [PUBLIC EMPLOYEE OR EMPLOYEE.] "Public employee" 208.28 or "employee" means any person appointed or employed by a public 208.29 employer except: 208.30 (a) elected public officials; 208.31 (b) election officers; 208.32 (c) commissioned or enlisted personnel of the Minnesota 208.33 National Guard; 208.34 (d) emergency employees who are employed for emergency work 208.35 caused by natural disaster; 208.36 (e) part-time employees whose service does not exceed the 209.1 lesser of 14 hours per week or 35 percent of the normal work 209.2 week in the employee's appropriate unit; 209.3 (f) employees whose positions are basically temporary or 209.4 seasonal in character and: (1) are not for more than 67 working 209.5 days in any calendar year; or (2) are not for more than 100 209.6 working days in any calendar year and the employees are under 209.7 the age of 22, are full-time students enrolled in a nonprofit or 209.8 public educational institution prior to being hired by the 209.9 employer, and have indicated, either in an application for 209.10 employment or by being enrolled at an educational institution 209.11 for the next academic year or term, an intention to continue as 209.12 students during or after their temporary employment; 209.13 (g) employees providing services for not more than two 209.14 consecutive quarters to the Board of Trustees of the Minnesota 209.15 State Colleges and Universities under the terms of a 209.16 professional or technical services contract as defined in 209.17 section 16C.08, subdivision 1; 209.18 (h) employees of charitable hospitals as defined by section 209.19 179.35, subdivision 3; 209.20 (i) full-time undergraduate students employed by the school 209.21 which they attend under a work-study program or in connection 209.22 with the receipt of financial aid, irrespective of number of 209.23 hours of service per week; 209.24 (j) an individual who is employed for less than 300 hours 209.25 in a fiscal year as an instructor in an adult vocational 209.26 education program; 209.27 (k) an individual hired by the Board of Trustees of the 209.28 Minnesota State Colleges and Universities to teach one course 209.29 for three or fewer credits for one semester in a year; 209.30 (l) with respect to court employees: 209.31 (1) personal secretaries to judges; 209.32 (2) law clerks; 209.33 (3) managerial employees; 209.34 (4) confidential employees; and 209.35 (5) supervisory employees. 209.36 The following individuals are public employees regardless 210.1 of the exclusions of clauses (e) and (f): 210.2 (i) an employee hired by a school district or the Board of 210.3 Trustees of the Minnesota State Colleges and Universities except 210.4 at the university established in section 136F.13 or for 210.5 community services or community education instruction offered on 210.6 a noncredit basis: (A) to replace an absent teacher or faculty 210.7 member who is a public employee, where the replacement employee 210.8 is employed more than 30 working days as a replacement for that 210.9 teacher or faculty member; or (B) to take a teaching position 210.10 created due to increased enrollment, curriculum expansion, 210.11 courses which are a part of the curriculum whether offered 210.12 annually or not, or other appropriate reasons;and210.13 (ii) an employee hired for a position under clause (f)(1) 210.14 if that same position has already been filled under clause 210.15 (f)(1) in the same calendar year and the cumulative number of 210.16 days worked in that same position by all employees exceeds 67 210.17 calendar days in that year. For the purpose of this paragraph, 210.18 "same position" includes a substantially equivalent position if 210.19 it is not the same position solely due to a change in the 210.20 classification or title of the position; and 210.21 (iii) an early childhood family education teacher employed 210.22 by a school district. 210.23 [EFFECTIVE DATE.] This section is effective July 1, 2005. 210.24 Sec. 19. [PILOT PROGRAM FOR AT-RISK PREKINDERGARTEN 210.25 CHILDREN.] 210.26 Subdivision 1. [ESTABLISHMENT; ELIGIBILITY; APPLICATION 210.27 PROCESS.] (a) An early childhood education pilot program for 210.28 at-risk children between the age of three and entering 210.29 kindergarten is established to develop or expand developmentally 210.30 appropriate and cost-effective programs for children who 210.31 demonstrate two or more of the following characteristics: 210.32 (1) are members of a household with an income less than 75 210.33 percent of the statewide median family income; 210.34 (2) live in divorced or separated households headed by a 210.35 single parent; 210.36 (3) have experienced residential instability, homelessness, 211.1 or have parents who have been unemployed in the past 12 months; 211.2 (4) have a parent who has not received a high school 211.3 diploma or its equivalent; 211.4 (5) speak a primary language other than English; 211.5 (6) are determined by a qualified early childhood or other 211.6 professional to require additional developmental screening, 211.7 diagnosis, or treatment; 211.8 (7) have been placed in three or more child care settings 211.9 in the past 12 months or are determined by a qualified early 211.10 childhood or other professional to have been a victim of 211.11 bullying; 211.12 (8) have a parent who has undergone treatment for chemical 211.13 abuse or mental illness; or 211.14 (9) other criteria determined by the commissioner in 211.15 consultation with qualified early childhood or other 211.16 professionals. 211.17 (b) An applicant for a grant must be a qualified provider 211.18 of care, education, and social services for young children and 211.19 their families. The applicant must demonstrate to the 211.20 satisfaction of the commissioner of education that, at a 211.21 minimum, the applicant: 211.22 (1) has successfully operated an early childhood program 211.23 for two or more calendar years that includes a parent 211.24 involvement and education component; 211.25 (2) addresses the physical and educational needs of young 211.26 children and their families; and 211.27 (3) measures its success in meeting the needs of the young 211.28 children and families it serves. 211.29 (c) To obtain a grant under this section, a qualified 211.30 provider must submit an application to the commissioner of 211.31 education in the form and manner the commissioner prescribes. 211.32 The application must demonstrate the applicant's qualifications, 211.33 consistent with paragraph (b), and describe how the applicant 211.34 proposes to develop or expand a developmentally appropriate and 211.35 cost-effective program for at-risk young children and their 211.36 families. The commissioner may require an applicant to submit 212.1 additional information. 212.2 Subd. 2. [GRANT AWARDS.] The commissioner may award up to 212.3 five grants to qualified providers throughout the state. The 212.4 amount of the grant shall be based on the number of children and 212.5 families expected to participate in the provider's program. 212.6 Grant recipients must use the grant award to provide a 212.7 developmentally appropriate and cost-effective program for 212.8 at-risk young children and their families. 212.9 Subd. 3. [EVALUATION.] The commissioner, after evaluating 212.10 the programmatic and cost-effectiveness of the grant recipients' 212.11 programs and identifying the elements of developmentally 212.12 appropriate and cost-effective programs for at-risk young 212.13 children and their families, must submit by January 15, 2008, a 212.14 written report of the commissioner's findings to the early 212.15 childhood committees in the legislature. The commissioner must 212.16 submit by January 15, 2014, a subsequent written report to the 212.17 early childhood education committees of the legislature 212.18 evaluating the long-term effect of children's participation in 212.19 early childhood education programs under this section. 212.20 [EFFECTIVE DATE.] This section is effective July 1, 2005. 212.21 Sec. 20. [MELF PROGRESS REPORT.] 212.22 Consistent with Minnesota Statutes, section 124D.175, the 212.23 private nonprofit organization under contract with the 212.24 commissioner of education must submit to the education policy 212.25 and finance committees of the legislature by February 1, 2008, 212.26 an interim progress report evaluating the programmatic and 212.27 financial efficacy of the programs receiving grant awards. 212.28 Sec. 21. [APPROPRIATIONS.] 212.29 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 212.30 indicated in this section are appropriated from the general fund 212.31 to the Department of Education for the fiscal years designated. 212.32 Subd. 2. [SCHOOL READINESS.] For revenue for school 212.33 readiness programs under Minnesota Statutes, sections 124D.15 212.34 and 124D.16: 212.35 $9,020,000 ..... 2006 212.36 $9,042,000 ..... 2007 213.1 The 2006 appropriation includes $1,417,000 for 2005 and 213.2 $7,603,000 for 2006. 213.3 The 2007 appropriation includes $1,415,000 for 2006 and 213.4 $7,627,000 for 2007. 213.5 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 213.6 childhood family education aid under Minnesota Statutes, section 213.7 124D.135: 213.8 $17,652,000 ..... 2006 213.9 $22,133,000 ..... 2007 213.10 The 2006 appropriation includes $1,861,000 for 2005 and 213.11 $15,791,000 for 2006. 213.12 The 2007 appropriation includes $2,940,000 for 2006 and 213.13 $19,193,000 for 2007. 213.14 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 213.15 health and developmental screening aid under Minnesota Statutes, 213.16 sections 121A.17 and 121A.19: 213.17 $3,076,000 ..... 2006 213.18 $3,511,000 ..... 2007 213.19 The 2006 appropriation includes $417,000 for 2005 and 213.20 $2,659,000 for 2006. 213.21 The 2007 appropriation includes $494,000 for 2006 and 213.22 $3,017,000 for 2007. 213.23 Subd. 5. [HEAD START PROGRAM.] For Head Start programs 213.24 under Minnesota Statutes, section 119A.52: 213.25 $17,100,000 ..... 2006 213.26 $17,100,000 ..... 2007 213.27 Subd. 6. [MINNESOTA EARLY LEARNING FOUNDATION.] For the 213.28 purposes of Minnesota Statutes, section 124D.175: 213.29 $ 1,500,000 ..... 2006 213.30 The private nonprofit, section 501(c)(3) organization 213.31 contracting with the commissioner may accept nonpublic funds for 213.32 the purposes of Minnesota Statutes, section 124D.175. 213.33 Of this appropriation, $500,000 is for a pilot program to 213.34 develop or expand developmentally appropriate and cost-effective 213.35 programs for at-risk young children and their families under 213.36 section 19. 214.1 This is a onetime appropriation. 214.2 Sec. 22. [REPEALER.] 214.3 (a) Minnesota Statutes 2004, sections 124D.15, subdivisions 214.4 2, 4, 6, 7, 8, 9, 11, and 13; and 124D.16, subdivision 4, are 214.5 repealed. 214.6 (b) Minnesota Statutes 2004, section 124D.16, subdivision 214.7 1, is repealed effective July 1, 2006. 214.8 ARTICLE 8 214.9 PREVENTION 214.10 Section 1. Minnesota Statutes 2004, section 119A.46, 214.11 subdivision 1, is amended to read: 214.12 Subdivision 1. [DEFINITIONS.] (a) The definitions in 214.13 section 144.9501 and in this subdivision apply to this section. 214.14 (b) "Eligible organization" means a lead contractor, city, 214.15 board of health, community health department, community action 214.16 agency as defined in section 119A.374, or community development 214.17 corporation. 214.18 (c) "Commissioner" means the commissioner ofeducation214.19 health, or the commissioner of the Minnesota Housing Finance 214.20 Agency as authorized by section 462A.05, subdivision 15c. 214.21 Sec. 2. Minnesota Statutes 2004, section 119A.46, 214.22 subdivision 2, is amended to read: 214.23 Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of 214.24 the available appropriation, the commissioner must develop a 214.25 swab team services program which may make demonstration and 214.26 training grants to eligible organizations to train workers to 214.27 provide swab team services and swab team services for 214.28 residential property. Grants may be awarded to nonprofit 214.29 organizations to provide technical assistance and training to 214.30 ensure quality and consistency within the statewide program. 214.31 Grants must be awarded to help ensure full-time employment to 214.32 workers providing swab team services and must be awarded for a 214.33 two-year period. 214.34 Grants awarded under this section must be made in 214.35 consultation with thecommissioners of the Department of Health214.36andcommissioner of the Housing Finance Agency,and 215.1 representatives of neighborhood groups from areas at high risk 215.2 for toxic lead exposure, a labor organization, the lead 215.3 coalition, community action agencies, and the legal aid 215.4 society. The consulting team must review grant applications and 215.5 recommend awards to eligible organizations that meet 215.6 requirements for receiving a grant under this section. 215.7 Sec. 3. Minnesota Statutes 2004, section 119A.46, 215.8 subdivision 3, is amended to read: 215.9 Subd. 3. [APPLICANTS.] (a) Interested eligible 215.10 organizations may apply to the commissioner for grants under 215.11 this section. Two or more eligible organizations may jointly 215.12 apply for a grant. Priority shall be given to community action 215.13 agencies in greater Minnesota and to either community action 215.14 agencies or neighborhood based nonprofit organizations in cities 215.15 of the first class. Of the total annual appropriation, 12.5 215.16 percent may be used for administrative purposes. The 215.17 commissioner may deviate from this percentage if a grantee can 215.18 justify the need for a larger administrative allowance. Of this 215.19 amount, up to five percent may be used by the commissioner for 215.20 state administrative purposes. Applications must provide 215.21 information requested by the commissioner, including at least 215.22 the information required to assess the factors listed in 215.23 paragraph (d). 215.24 (b) The commissioner mustcoordinate with the commissioner215.25of health who mustconsult with boards of health to provide swab 215.26 team services for purposes of secondary prevention. The 215.27 priority for swab teams created by grants to eligible 215.28 organizations under this section must be work assigned by the 215.29 commissioner of health, or by a board of health if so designated 215.30 by the commissioner of health, to provide secondary prevention 215.31 swab team services to fulfill the requirements of section 215.32 144.9504, subdivision 6, in response to a lead order. Swab 215.33 teams assigned work under this section by the commissioner, that 215.34 are not engaged daily in fulfilling the requirements of section 215.35 144.9504, subdivision 6, must deliver swab team services in 215.36 response to elevated blood lead levels as defined in section 216.1 144.9501, subdivision 9, where lead orders were not issued, and 216.2 for purposes of primary prevention in census tracts known to be 216.3 in areas at high risk for toxic lead exposure as described in 216.4 section 144.9503, subdivision 2. 216.5 (c) Any additional money must be used for grants to 216.6 establish swab teams for primary prevention under section 216.7 144.9503, in census tracts in areas at high risk for toxic lead 216.8 exposure as determined under section 144.9503, subdivision 2. 216.9 (d) In evaluating grant applications, the commissioner must 216.10 consider the following criteria: 216.11 (1) the use of lead contractors and lead workers for 216.12 residential swab team services; 216.13 (2) the participation of neighborhood groups and 216.14 individuals, as swab team workers, in areas at high risk for 216.15 toxic lead exposure; 216.16 (3) plans for the provision of swab team services for 216.17 primary and secondary prevention as required under subdivision 216.18 4; 216.19 (4) plans for supervision, training, career development, 216.20 and postprogram placement of swab team members; 216.21 (5) plans for resident and property owner education on lead 216.22 safety; 216.23 (6) plans for distributing cleaning supplies to area 216.24 residents and educating residents and property owners on 216.25 cleaning techniques; 216.26 (7) sources of other funding and cost estimates for 216.27 training, lead inspections, swab team services, equipment, 216.28 monitoring, testing, and administration; 216.29 (8) measures of program effectiveness; 216.30 (9) coordination of program activities with other federal, 216.31 state, and local public health, job training, apprenticeship, 216.32 and housing renovation programs including programs under 216.33 sections 116L.86 to 116L.881; and 216.34 (10) prior experience in providing swab team services. 216.35 Sec. 4. Minnesota Statutes 2004, section 119A.46, 216.36 subdivision 8, is amended to read: 217.1 Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the 217.2 environment is not necessary by swab teams whose work is 217.3 assigned by the commissioner of health or a designated board of 217.4 health under section 144.9504. The commissioner of health or 217.5 designated board of health must share the analytical testing 217.6 data collected on each residence for purposes of secondary 217.7 prevention under section 144.9504 with the swab team workers in 217.8 order to provide constructive feedback on their work and to the 217.9 commissioner for the purposes set forth in paragraph (c). 217.10 (b) For purposes of primary prevention evaluation, the 217.11 following samples must be collected: pretesting and posttesting 217.12 of one noncarpeted floor dust lead sample and a notation of the 217.13 extent and location of bare soil and of deteriorated lead-based 217.14 paint. The analytical testing data collected on each residence 217.15 for purposes of primary prevention under section 144.9503 must 217.16 be shared with the swab team workers in order to provide 217.17 constructive feedback on their work and to the commissioner for 217.18 the purposes set forth in paragraph (c). 217.19 (c) The commissioner of health must establish a programin217.20cooperation with the commissionerto collect appropriate data as 217.21 required under paragraphs (a) and (b), in order to conduct an 217.22 ongoing evaluation of swab team services for primary and 217.23 secondary prevention. Within the limits of available 217.24 appropriations, the commissioner of health must conductor217.25contract with the commissioner,on up to 1,000 residences which 217.26 have received primary or secondary prevention swab team 217.27 services, a postremediation evaluation, on at least a quarterly 217.28 basis for a period of at least two years for each residence. 217.29 The evaluation must note the condition of the paint within the 217.30 residence, the extent of bare soil on the grounds, and collect 217.31 and analyze one noncarpeted floor dust lead sample. The data 217.32 collected must be evaluated to determine the efficacy of 217.33 providing swab team services as a method of reducing lead 217.34 exposure in young children. In evaluating this data, the 217.35 commissioner of health must consider city size, community 217.36 location, historic traffic flow, soil lead level of the property 218.1 by area or census tract, distance to industrial point sources 218.2 that emit lead, season of the year, age of the housing, age and 218.3 number of children living at the residence, the presence of pets 218.4 that move in and out of the residence, and other relevant 218.5 factors as the commissioner of health may determine. 218.6 Sec. 5. Minnesota Statutes 2004, section 124D.20, 218.7 subdivision 3, is amended to read: 218.8 Subd. 3. [GENERAL COMMUNITY EDUCATION REVENUE.] The 218.9 general community education revenue for a district equals$5.95218.10for fiscal year 2003 and 2004 and$5.23 for fiscalyearyears 218.11 2005 and 2006 and $6.00 for fiscal year 2007 and later, times 218.12 the greater of 1,335 or the population of the district. The 218.13 population of the district is determined according to section 218.14 275.14. 218.15 [EFFECTIVE DATE.] This section is effective for revenue for 218.16 fiscal year 2007. 218.17 Sec. 6. [APPROPRIATION.] 218.18 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 218.19 indicated in this section are appropriated from the general fund 218.20 to the Department of Education for the fiscal years designated. 218.21 Subd. 2. [COMMUNITY EDUCATION AID.] For community 218.22 education aid under Minnesota Statutes, section 124D.20: 218.23 $1,918,000 ..... 2006 218.24 $1,837,000 ..... 2007 218.25 The 2006 appropriation includes $390,000 for 2005 and 218.26 $1,528,000 for 2006. 218.27 The 2007 appropriation includes $284,000 for 2006 and 218.28 $1,553,000 for 2007. 218.29 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 218.30 adults with disabilities programs under Minnesota Statutes, 218.31 section 124D.56: 218.32 $ 710,000 ..... 2006 218.33 $ 710,000 ..... 2007 218.34 The 2006 appropriation includes $111,000 for 2005 and 218.35 $599,000 for 2006. 218.36 The 2007 appropriation includes $111,000 for 2006 and 219.1 $599,000 for 2007. 219.2 Subd. 4. [HEARING-IMPAIRED ADULTS.] For programs for 219.3 hearing-impaired adults under Minnesota Statutes, section 219.4 124D.57: 219.5 $ 70,000 ..... 2006 219.6 $ 70,000 ..... 2007 219.7 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day aid 219.8 under Minnesota Statutes, section 124D.22: 219.9 $ 17,000 ..... 2006 219.10 $ 7,000 ..... 2007 219.11 The 2006 appropriation includes $4,000 for 2005 and $13,000 219.12 for 2006. 219.13 The 2007 appropriation includes $2,000 for 2006 and $5,000 219.14 for 2007. 219.15 ARTICLE 9 219.16 SELF-SUFFICIENCY AND LIFELONG LEARNING 219.17 Section 1. Minnesota Statutes 2004, section 124D.531, 219.18 subdivision 1, is amended to read: 219.19 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 219.20 (a) The state total adult basic education aid for fiscal year 219.212004 equals $34,388,000. The state total adult basic education219.22aid for fiscal year2005and lateris $36,509,000. The state 219.23 total adult basic education aid for fiscal year 2006 and later 219.24 is $36,518,000 plus any amount that is not paid for during the 219.25 previous fiscal year, as a result of adjustments under 219.26 subdivision 4, paragraph (a), or section 124D.52, subdivision 219.27 3. Beginning in fiscal year 2002, two percent of the state 219.28 total adult basic education aid must be set aside for adult 219.29 basic education supplemental service grants under section 219.30 124D.522. 219.31 (b) The state total adult basic education aid, excluding 219.32 basic population aid, equals the difference between the amount 219.33 computed in paragraph (a), and the state total basic population 219.34 aid under subdivision 2. 219.35 [EFFECTIVE DATE.] This section is effective the day 219.36 following final enactment and applies to revenue distributions 220.1 for fiscal year 2006. 220.2 Sec. 2. Minnesota Statutes 2004, section 124D.531, 220.3 subdivision 4, is amended to read: 220.4 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 220.5 Notwithstanding subdivisions 2 and 3, the total adult basic 220.6 education aid for a program per prior year contact hour must not 220.7 exceed $21 per prior year contact hour computed under 220.8 subdivision 3, clause (2). 220.9 (b) For fiscal year 2004, the aid for a program under 220.10 subdivision 3, clause (2), adjusted for changes in program 220.11 membership, must not exceed the aid for that program under 220.12 subdivision 3, clause (2), for fiscal year 2003 by more than the 220.13 greater of eight percent or $10,000. 220.14 (c) For fiscal year 2005, the aid for a program under 220.15 subdivision 3, clause (2), adjusted for changes in program 220.16 membership, must not exceed the sum of the aid for that program 220.17 under subdivision 3, clause (2), and Laws 2003, First Special 220.18 Session chapter 9, article 9, section 8, paragraph (a), for the 220.19 preceding fiscal year by more than the greater of eight percent 220.20 or $10,000. 220.21 (d) For fiscal year 2006 and later, the aid for a program 220.22 under subdivision 3, clause (2), adjusted for changes in program 220.23 membership, must not exceed the aid for that program under 220.24 subdivision 3, clause (2), for the first preceding fiscal year 220.25 by more than the greater of eight percent or $10,000. 220.26 (e) Adult basic education aid is payable to a program for 220.27 unreimbursed costs occurring in the program year as defined in 220.28 section 124D.52, subdivision 3. 220.29 (f) Any adult basic education aid that is not paid to a 220.30 program because of the program aid limitation under paragraph 220.31 (a) must be added to the state total adult basic education aid 220.32 for the next fiscal year under subdivision 1. Any adult basic 220.33 education aid that is not paid to a program because of the 220.34 program aid limitations under paragraph (b), (c), or (d), must 220.35 be reallocated among programs by adjusting the rate per contact 220.36 hour under subdivision 3, clause (2). 221.1 [EFFECTIVE DATE.] This section is effective the day 221.2 following final enactment and applies to revenue distributions 221.3 for fiscal year 2006. 221.4 Sec. 3. [REVISOR'S INSTRUCTION.] 221.5 In the next edition of Minnesota Statutes, the revisor of 221.6 statutes shall renumber Minnesota Statutes, section 119A.46, as 221.7 section 144.9512 and make necessary cross-reference changes. 221.8 Sec. 4. [APPROPRIATIONS.] 221.9 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 221.10 indicated in this section are appropriated from the general fund 221.11 to the Department of Education for the fiscal years designated. 221.12 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 221.13 education aid under Minnesota Statutes: 221.14 $36,518,000 ..... 2006 221.15 $36,540,000 ..... 2007 221.16 The 2006 appropriation includes $5,707,000 for 2005 and 221.17 $30,811,000 for 2006. 221.18 The 2007 appropriation includes $5,737,000 for 2006 and 221.19 $30,803,000 for 2007. 221.20 Subd. 3. [GED TESTS.] For payment of 60 percent of the 221.21 costs of GED tests under Laws 1993, chapter 224, article 4, 221.22 section 44, subdivision 10: 221.23 $ 125,000 ..... 2006 221.24 $ 125,000 ..... 2007 221.25 Subd. 4. [LEAD HAZARD REDUCTION.] For lead hazard 221.26 reduction under Minnesota Statutes, section 119A.46: 221.27 $ 100,000 ..... 2006 221.28 $ 100,000 ..... 2007 221.29 Any balance in the first year does not cancel but is 221.30 available in the second year. The commissioner of education may 221.31 transfer this appropriation to the commissioner of health. 221.32 ARTICLE 10 221.33 STATE AGENCIES 221.34 Section 1. Minnesota Statutes 2004, section 122A.09, 221.35 subdivision 4, is amended to read: 221.36 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 222.1 rules to license public school teachers and interns subject to 222.2 chapter 14. 222.3 (b) The board must adopt rules requiring a person to 222.4 successfully complete a skills examination in reading, writing, 222.5 and mathematics as a requirement for initial teacher licensure. 222.6 Such rules must require college and universities offering a 222.7 board-approved teacher preparation program to provide remedial 222.8 assistance to persons who did not achieve a qualifying score on 222.9 the skills examination, including those for whom English is a 222.10 second language. 222.11 (c) The board must adopt rules to approve teacher 222.12 preparation programs. The board, upon the request of a 222.13 postsecondary student preparing for teacher licensure or a 222.14 licensed graduate of a teacher preparation program, shall assist 222.15 in resolving a dispute between the person and a postsecondary 222.16 institution providing a teacher preparation program when the 222.17 dispute involves an institution's recommendation for licensure 222.18 affecting the person or the person's credentials. At the 222.19 board's discretion, assistance may include the application of 222.20 chapter 14. 222.21 (d) The board must provide the leadership and shall adopt 222.22 rules for the redesign of teacher education programs to 222.23 implement a research based, results-oriented curriculum that 222.24 focuses on the skills teachers need in order to be effective. 222.25 The board shall implement new systems of teacher preparation 222.26 program evaluation to assure program effectiveness based on 222.27 proficiency of graduates in demonstrating attainment of program 222.28 outcomes. 222.29 (e) The board must adopt rules requiring successful 222.30 completion of an examination of general pedagogical knowledge 222.31 and examinations of licensure-specific teaching skills. The 222.32 rules shall be effective on the dates determined by the board 222.33 but not later than September 1, 2001. 222.34 (f) The board must adopt rules requiring teacher educators 222.35 to work directly with elementary or secondary school teachers in 222.36 elementary or secondary schools to obtain periodic exposure to 223.1 the elementary or secondary teaching environment. 223.2 (g) The board must grant licenses to interns and to 223.3 candidates for initial licenses. 223.4 (h) The board must design and implement an assessment 223.5 system which requires a candidate for an initial license and 223.6 first continuing license to demonstrate the abilities necessary 223.7 to perform selected, representative teaching tasks at 223.8 appropriate levels. 223.9 (i) The board must receive recommendations from local 223.10 committees as established by the board for the renewal of 223.11 teaching licenses. 223.12 (j) The board must grant life licenses to those who qualify 223.13 according to requirements established by the board, and suspend 223.14 or revoke licenses pursuant to sections 122A.20 and 214.10. The 223.15 board must not establish any expiration date for application for 223.16 life licenses. 223.17 (k) The board must adopt rules that require all licensed 223.18 teachers who are renewing their continuing license to include in 223.19 their renewal requirements further preparation in the areas of 223.20 using positive behavior interventions and in accommodating, 223.21 modifying, and adapting curricula, materials, and strategies to 223.22 appropriately meet the needs of individual students and ensure 223.23 adequate progress toward the state's graduation rule. 223.24 (l) In adopting rules to license public school teachers who 223.25 provide health-related services for disabled children, the board 223.26 shall adopt rules consistent with license or registration 223.27 requirements of the commissioner of health and the 223.28 health-related boards who license personnel who perform similar 223.29 services outside of the school. 223.30 (m) The board must adopt rules that require all licensed 223.31 teachers who are renewing their continuing license to include in 223.32 their renewal requirements further reading preparation, 223.33 consistent with section 122A.06, subdivision 4. The rules do 223.34 not take effect until they are approved by law. Teachers who do 223.35 not provide direct instruction including, at least, counselors, 223.36 school psychologists, school nurses, school social workers, 224.1 audiovisual directors and coordinators, and recreation personnel 224.2 are exempt from this section. 224.3 (n) The board must adopt rules that require all licensed 224.4 teachers who are renewing their continuing license to include in 224.5 their renewal requirements further preparation in understanding 224.6 the key warning signs of early-onset mental illness in children 224.7 and adolescents. 224.8 (o) The board, in consultation with the department, 224.9 representatives of innovative schools and programs as determined 224.10 by the board, and representatives of charter schools, 224.11 alternative schools, small schools, and rural schools, must 224.12 adopt rules to create an interdisciplinary teaching license. 224.13 Sec. 2. Minnesota Statutes 2004, section 122A.09, 224.14 subdivision 10, is amended to read: 224.15 Subd. 10. [VARIANCES.] (a) Notwithstanding subdivision 9 224.16 and section 14.05, subdivision 4, the Board of Teaching may 224.17 grant a variance to its rules upon application by a school 224.18 district for purposes of implementing experimental programs in 224.19 learning or management. 224.20 (b) To enable a school district to meet the needs of 224.21 students enrolled in an alternative education program and to 224.22 enable licensed teachers instructing those students to satisfy 224.23 content area licensure requirements, the Board of Teaching 224.24 annually may permit a licensed teacher teaching in an 224.25 alternative education program to instruct students in a content 224.26 area for which the teacher is not licensed, consistent with 224.27 paragraph (a). 224.28 (c) A special education license variance issued by the 224.29 Board of Teaching for a primary employer's low-incidence region 224.30 shall be valid in all low-incidence regions. 224.31 Sec. 3. [122A.245] [TEACHER TRAINING PROGRAM FOR QUALIFIED 224.32 PROFESSIONALS.] 224.33 Subdivision 1. [SCOPE AND REQUIREMENTS.] (a) As an 224.34 alternative to postsecondary teacher preparation programs, a 224.35 teacher training program is established for qualified 224.36 professionals to acquire an entrance license. Program 225.1 providers, approved by the Board of Teaching under subdivision 225.2 3, may offer the program in the instructional fields of science, 225.3 mathematics, world languages, English as a second language, and 225.4 special education. 225.5 (b) To participate in the teacher training program, the 225.6 teacher applicant must: 225.7 (1) have, at a minimum, a bachelor's degree from an 225.8 accredited four-year postsecondary institution; 225.9 (2) have an undergraduate major or postbaccalaureate degree 225.10 in the subject to be taught or in an equivalent or related 225.11 subject area in which the applicant is seeking licensure; 225.12 (3) pass a skills examination in reading, writing, and 225.13 mathematics required under section 122A.18; 225.14 (4) pass the Praxis II subject assessment for each subject 225.15 area to be taught; 225.16 (5) have a cumulative grade point average of 2.75 or higher 225.17 on a 4.0 scale for a bachelor's degree; 225.18 (6) show employment related to the subject to be taught; 225.19 and 225.20 (7) show a district offer for employment as a teacher 225.21 contingent on participating in an approved program described in 225.22 subdivision 2. 225.23 Subd. 2. [PROGRAM.] A teacher training program under this 225.24 section is one year in duration and must include: 225.25 (1) a nine-credit summer or preinduction preparation 225.26 program that includes classroom management techniques and 225.27 on-site classroom observation that are completed before the 225.28 candidate is employed in the classroom; 225.29 (2) 200 clock hours of instruction in standards of 225.30 effective practice and essential skills that include curriculum, 225.31 instructional strategies, and classroom management presented 225.32 after school or on Saturdays throughout the year leading to a 225.33 teaching license and up to 15 graduate credits toward a master's 225.34 degree in education; 225.35 (3) on-the-job mentoring, supervision, and evaluation 225.36 arranged by the employing district that includes mentoring 226.1 provided by an experienced teacher licensed in the subject 226.2 taught by the applicant, and three evaluations by an evaluation 226.3 team composed of the mentor, the principal, and a training 226.4 program member that include at least three classroom 226.5 observations where the third evaluation contains the team's 226.6 recommendation for licensure and where a written report of each 226.7 evaluation is prepared; and 226.8 (4) a one-week intensive workshop that includes analysis 226.9 and reflection of the first year of teaching after completing 226.10 the school year, which may be counted as part of 200 clock hours 226.11 required in clause (2). 226.12 Subd. 3. [PROGRAM APPROVAL.] An interested Minnesota 226.13 public or private postsecondary institution must submit program 226.14 proposals to the Board of Teaching for approval. 226.15 Notwithstanding any law to the contrary, the Board of 226.16 Teaching must develop criteria for approving teacher training 226.17 programs under this section after considering the 226.18 recommendations of an advisory group appointed by the Board of 226.19 Teaching composed of, at a minimum, the commissioner of 226.20 education or designee, and representatives of school 226.21 superintendents, principals, teachers, and postsecondary 226.22 institutions, including those offering degrees in teaching 226.23 preparation. 226.24 Subd. 4. [ELIGIBILITY LICENSE.] Notwithstanding any law to 226.25 the contrary, the Board of Teaching must issue to an applicant 226.26 who successfully meets the criteria under subdivision 1, 226.27 paragraph (b), a one-year eligibility license to teach at the 226.28 employing district under subdivision 1, paragraph (b), clause 226.29 (7). During the one-year eligibility period, the employing 226.30 district must assign a mentor under subdivision 2, clause (3). 226.31 The applicant teacher and teacher mentor must meet at least 226.32 weekly throughout the school year on classroom and instructional 226.33 issues. 226.34 The hiring district may deduct from the participant's 226.35 salary the cost of providing the mentor for the participant 226.36 during the training year. 227.1 Subd. 5. [STANDARD ENTRANCE LICENSE.] Notwithstanding any 227.2 law to the contrary, the Board of Teaching must issue a standard 227.3 entrance license to a training program licensee who successfully 227.4 completes the program under subdivision 2, successfully teaches 227.5 in a classroom for one complete school year, successfully passes 227.6 the Praxis II principles of learning and teaching, and receives 227.7 a positive recommendation from the applicant's evaluation team. 227.8 Subd. 6. [QUALIFIED TEACHER.] A person with a valid 227.9 eligibility license under subdivision 5 is a qualified teacher 227.10 under section 122A.16. 227.11 Sec. 4. Minnesota Statutes 2004, section 122A.40, 227.12 subdivision 5, is amended to read: 227.13 Subd. 5. [PROBATIONARY PERIOD.] (a) The first three 227.14 consecutive years of a teacher's first teaching experience in 227.15 Minnesota in a single district is deemed to be a probationary 227.16 period of employment, and after completion thereof, the 227.17 probationary period in each district in which the teacher is 227.18 thereafter employed shall be one year. The school board must 227.19 adopt a plan for written evaluation of teachers during the 227.20 probationary period. Evaluation must occur at least three times 227.21 each year for a teacher performing services on 120 or more 227.22 school days, at least two times each year for a teacher 227.23 performing services on 60 to 119 school days, and at least one 227.24 time each year for a teacher performing services on fewer than 227.25 60 school days. Days devoted to parent-teacher conferences, 227.26 teachers' workshops, and other staff development opportunities 227.27 and days on which a teacher is absent from school must not be 227.28 included in determining the number of school days on which a 227.29 teacher performs services. Except as otherwise provided in 227.30 paragraph (b), during the probationary period any annual 227.31 contract with any teacher may or may not be renewed as the 227.32 school board shall see fit. However, the board must give any 227.33 such teacher whose contract it declines to renew for the 227.34 following school year written notice to that effect before July 227.35 1. If the teacher requests reasons for any nonrenewal of a 227.36 teaching contract, the board must give the teacher its reason in 228.1 writing, including a statement that appropriate supervision was 228.2 furnished describing the nature and the extent of such 228.3 supervision furnished the teacher during the employment by the 228.4 board, within ten days after receiving such request. The school 228.5 board may, after a hearing held upon due notice, discharge a 228.6 teacher during the probationary period for cause, effective 228.7 immediately, under section 122A.44. 228.8 (b) A board must discharge a probationary teacher, 228.9 effective immediately, upon receipt of notice under section 228.10 122A.20, subdivision 1, paragraph (b), that the teacher's 228.11 license has been revoked due to a conviction for child abuse or 228.12 sexual abuse. 228.13 (c) A probationary teacher must complete at least 60 days 228.14 of teaching service each year during the probationary period. 228.15 Days devoted to parent-teacher conferences, teachers' workshops, 228.16 and other staff development opportunities and days on which a 228.17 teacher is absent from school do not count as days of teaching 228.18 service under this paragraph. 228.19 [EFFECTIVE DATE.] This section is effective July 1, 2005. 228.20 Sec. 5. Minnesota Statutes 2004, section 122A.41, 228.21 subdivision 2, is amended to read: 228.22 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 228.23 All teachers in the public schools in cities of the first class 228.24 during the first three years of consecutive employment shall be 228.25 deemed to be in a probationary period of employment during which 228.26 period any annual contract with any teacher may, or may not, be 228.27 renewed as the school board, after consulting with the peer 228.28 review committee charged with evaluating the probationary 228.29 teachers under subdivision 3, shall see fit. The school site 228.30 management team or the school board if there is no school site 228.31 management team, shall adopt a plan for a written evaluation of 228.32 teachers during the probationary period according to subdivision 228.33 3. Evaluation by the peer review committee charged with 228.34 evaluating probationary teachers under subdivision 3 shall occur 228.35 at least three times each year for a teacher performing services 228.36 on 120 or more school days, at least two times each year for a 229.1 teacher performing services on 60 to 119 school days, and at 229.2 least one time each year for a teacher performing services on 229.3 fewer than 60 school days. Days devoted to parent-teacher 229.4 conferences, teachers' workshops, and other staff development 229.5 opportunities and days on which a teacher is absent from school 229.6 shall not be included in determining the number of school days 229.7 on which a teacher performs services. The school board may, 229.8 during such probationary period, discharge or demote a teacher 229.9 for any of the causes as specified in this code. A written 229.10 statement of the cause of such discharge or demotion shall be 229.11 given to the teacher by the school board at least 30 days before 229.12 such removal or demotion shall become effective, and the teacher 229.13 so notified shall have no right of appeal therefrom. 229.14 (b) A probationary teacher must complete at least 60 days 229.15 of teaching service each year during the probationary period. 229.16 Days devoted to parent-teacher conferences, teachers' workshops, 229.17 and other staff development opportunities and days on which a 229.18 teacher is absent from school do not count as days of teaching 229.19 service under this paragraph. 229.20 [EFFECTIVE DATE.] This section is effective July 1, 2005. 229.21 Sec. 6. [REPORT.] 229.22 The Board of Teaching, in consultation with approved 229.23 alternative teacher training program providers and the 229.24 Department of Education, must evaluate the efficacy of the 229.25 alternative teacher training program under Minnesota Statutes, 229.26 section 122A.245, through the 2013-2014 school year and by 229.27 February 15, 2015, submit a written report to the kindergarten 229.28 through grade 12 education policy committees of the legislature 229.29 that includes, among other content, recommendations about 229.30 whether to extend or expand the alternative teacher training 229.31 program. 229.32 Sec. 7. [LICENSED STUDENT SUPPORT SERVICES.] 229.33 Subdivision 1. [ACCESS TO SERVICES.] School districts and 229.34 the Department of Education shall work to provide for students' 229.35 educational achievement, to provide for student safety, and to 229.36 enhance student physical, emotional, and social well-being by 230.1 providing access to licensed student support services, such as 230.2 licensed school nurses, licensed school counselors, licensed 230.3 school social workers, and licensed school psychologists. 230.4 Subd. 2. [FUNDING.] Districts and the department shall 230.5 explore opportunities for obtaining additional funds to improve 230.6 students' access to needed licensed student support services 230.7 including, but not limited to, medical assistance 230.8 reimbursements, local collaborative time study funds, federal 230.9 funds, public health funds, and specifically designated funds. 230.10 Subd. 3. [IMPROVING ACCESS.] Districts and the department 230.11 must consider nationally recommended licensed staff-to-student 230.12 ratios, work loads, and best practices when working to improve 230.13 student access to needed licensed student support services. 230.14 Sec. 8. [STATEWIDE STUDENT INFORMATION AND REPORTING 230.15 SYSTEM.] 230.16 Subdivision 1. [WORKING GROUP CONVENED.] (a) The 230.17 commissioner of education must convene a working group composed 230.18 of: 230.19 (1) representatives from school districts, charter schools, 230.20 and area learning centers of diverse size and location chosen by 230.21 the commissioner; 230.22 (2) officials from the Department of Administration 230.23 Materials Management Division; and 230.24 (3) at least three citizens with a demonstrated expertise 230.25 in Web-based student information systems. 230.26 The working group must develop a plan to improve the quality and 230.27 decrease the cost of Minnesota's student information systems. 230.28 (b) When developing its plan under paragraph (a), the group 230.29 at least must determine whether the student information system: 230.30 (1) best operates as a single integrated management system 230.31 or a system with a specified number of vendors that seamlessly 230.32 transfer student data between school districts; 230.33 (2) includes a software license, technical support, and 230.34 also hardware on which the software runs; 230.35 (3) is run in each school district or at a central data 230.36 center; and 231.1 (4) can be run by private sector companies having access to 231.2 students' educational records. 231.3 Subd. 2. [REQUEST FOR PROPOSALS.] The working group, 231.4 consistent with its determinations in subdivision 1, paragraph 231.5 (b), shall develop the framework for a request for proposal or 231.6 "RFP" for the student information and reporting system. The RFP 231.7 must require a vendor to implement a system that: 231.8 (1) meets all of the data collection and reporting 231.9 requirements of the Minnesota Automated Reporting Student 231.10 System; 231.11 (2) enhances state and federal student data collection; 231.12 (3) facilitates value-added assessment systems; 231.13 (4) ensures that the system has secure Web-based 231.14 capabilities for entering and editing data; and 231.15 (5) provides robust data management tools including 231.16 reporting features. 231.17 [EFFECTIVE DATE.] This section is effective the day 231.18 following final enactment. 231.19 Sec. 9. [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 231.20 Subdivision 1. [DEPARTMENT OF EDUCATION.] Unless otherwise 231.21 indicated, the sums indicated in this section are appropriated 231.22 from the general fund to the Department of Education for the 231.23 fiscal years designated. 231.24 Subd. 2. [DEPARTMENT.] (a) For the Department of Education: 231.25 $22,057,000 ..... 2006 231.26 $23,887,000 ..... 2007 231.27 Any balance in the first year does not cancel but is 231.28 available in the second year. 231.29 (b) $260,000 each year is for the Minnesota Children's 231.30 Museum. 231.31 (c) $41,000 each year is for the Minnesota Academy of 231.32 Science. 231.33 (d) $605,000 each year is for the Board of Teaching. In 231.34 addition, the commissioner must provide necessary resources to 231.35 complete rulemaking under Minnesota Statutes, section 122A.09, 231.36 subdivision 4. 232.1 (e) $160,000 each year is for the Board of School 232.2 Administrators. 232.3 (f) $10,000 in fiscal year 2006 and $15,000 in fiscal year 232.4 2007 are for administration of single purpose charter school 232.5 sponsors. 232.6 (g) $500,000 in fiscal year 2007 is for alternative teacher 232.7 licensure programs. 232.8 (h) $300,000 in fiscal year 2006 and $1,600,000 in fiscal 232.9 year 2007 are for value-added index assessment model. 232.10 (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year 232.11 2007 are for the development and distribution to school 232.12 districts of materials addressing the dangers of methamphetamine. 232.13 (j) The expenditures of federal grants and aids as shown in 232.14 the biennial budget document and its supplements are approved 232.15 and appropriated and shall be spent as indicated. 232.16 Sec. 10. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 232.17 The sums indicated in this section are appropriated from 232.18 the general fund to the Minnesota State Academies for the Deaf 232.19 and the Blind for the fiscal years designated: 232.20 $11,078,000 ..... 2006 232.21 $11,153,000 ..... 2007 232.22 Any balance in the first year does not cancel but is 232.23 available in the second year. 232.24 Sec. 11. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 232.25 EDUCATION.] 232.26 The sums indicated in this section are appropriated from 232.27 the general fund to the Perpich Center for Arts Education for 232.28 the fiscal years designated: 232.29 $6,255,000 ..... 2006 232.30 $6,255,000 ..... 2007 232.31 Any balance in the first year does not cancel but is 232.32 available in the second year. 232.33 Sec. 12. [REPEALER.] 232.34 Minnesota Statutes 2004, section 122A.24, is repealed. 232.35 ARTICLE 11 232.36 FORECAST DEFICIENCIES 233.1 A. GENERAL EDUCATION 233.2 Section 1. Laws 2003, First Special Session chapter 9, 233.3 article 1, section 53, subdivision 2, as amended by Laws 2004, 233.4 chapter 272, article 1, section 1, is amended to read: 233.5 Subd. 2. [GENERAL EDUCATION AID.] For general education 233.6 aid under Minnesota Statutes, section 126C.13, subdivision 4: 233.7 $4,726,466,000 ..... 2004 233.8$5,026,983,000$5,281,781,000 ..... 2005 233.9 The 2004 appropriation includes $860,552,000 for 2003 and 233.10 $3,865,914,000 for 2004. 233.11 The 2005 appropriation includes 233.12$1,009,822,000$1,009,526,000 for 2004 233.13 and$4,017,161,000$4,272,255,000 for 2005. 233.14 Sec. 2. Laws 2003, First Special Session chapter 9, 233.15 article 1, section 53, subdivision 3, as amended by Laws 2004, 233.16 chapter 272, article 1, section 2, is amended to read: 233.17 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 233.18 referendum tax base replacement aid under Minnesota Statutes, 233.19 section 126C.17, subdivision 7a: 233.20 $8,096,000 ..... 2004 233.21$8,596,000$9,007,000 ..... 2005 233.22 The 2004 appropriation includes $1,419,000 for 2003 and 233.23 $6,677,000 for 2004. 233.24 The 2005 appropriation includes $1,669,000 for 2004 and 233.25$6,927,000$7,338,000 for 2005. 233.26 Sec. 3. Laws 2003, First Special Session chapter 9, 233.27 article 1, section 53, subdivision 11, as amended by Laws 2004, 233.28 chapter 272, article 1, section 5, is amended to read: 233.29 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 233.30 education aid under Minnesota Statutes, sections 123B.40 to 233.31 123B.43 and 123B.87: 233.32 $14,411,000 ..... 2004 233.33$15,072,000$15,304,000 ..... 2005 233.34 The 2004 appropriation includes $2,715,000 for 2003 and 233.35 $11,696,000 for 2004. 233.36 The 2005 appropriation includes $2,923,000 for 2004 and 234.1$12,149,000$12,381,000 for 2005. 234.2 Sec. 4. Laws 2003, First Special Session chapter 9, 234.3 article 1, section 53, subdivision 12, as amended by Laws 2004, 234.4 chapter 272, article 1, section 6, is amended to read: 234.5 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 234.6 pupil transportation aid under Minnesota Statutes, section 234.7 123B.92, subdivision 9: 234.8 $20,471,000 ..... 2004 234.9$21,421,000$21,703,000 ..... 2005 234.10 The 2004 appropriation includes $3,990,000 for 2003 and 234.11 $16,481,000 for 2004. 234.12 The 2005 appropriation includes $4,120,000 for 2004 and 234.13$17,301,000$17,583,000 for 2005. 234.14 B. EDUCATION EXCELLENCE 234.15 Sec. 5. Laws 2003, First Special Session chapter 9, 234.16 article 2, section 55, subdivision 2, as amended by Laws 2004, 234.17 chapter 272, article 1, section 7, is amended to read: 234.18 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 234.19 lease aid under Minnesota Statutes, section 124D.11, subdivision 234.20 4: 234.21 $16,753,000 ..... 2004 234.22$21,347,000$21,410,000 ..... 2005 234.23 The 2004 appropriation includes $2,524,000 for 2003 and 234.24 $14,229,000 for 2004. 234.25 The 2005 appropriation includes $3,557,000 for 2004 and 234.26$17,790,000$17,853,000 for 2005. 234.27 Sec. 6. Laws 2003, First Special Session chapter 9, 234.28 article 2, section 55, subdivision 5, as amended by Laws 2004, 234.29 chapter 272, article 1, section 10, is amended to read: 234.30 Subd. 5. [INTEGRATION AID.] For integration aid under 234.31 Minnesota Statutes, section 124D.86, subdivision 5: 234.32 $55,911,000 ..... 2004 234.33$55,893,000$57,756,000 ..... 2005 234.34 The 2004 appropriation includes $8,428,000 for 2003 and 234.35 $47,483,000 for 2004. 234.36 The 2005 appropriation includes $11,870,000 for 2004 and 235.1$44,023,000$45,886,000 for 2005. 235.2 Sec. 7. Laws 2003, First Special Session chapter 9, 235.3 article 2, section 55, subdivision 9, as amended by Laws 2004, 235.4 chapter 272, article 1, section 12, is amended to read: 235.5 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 235.6 success for the future grants under Minnesota Statutes, section 235.7 124D.81: 235.8 $2,061,000 ..... 2004 235.9$2,137,000$2,229,000 ..... 2005 235.10 The 2004 appropriation includes $351,000 for 2003 and 235.11 $1,710,000 for 2004. 235.12 The 2005 appropriation includes $427,000 for 2004 and 235.13$1,710,000$1,802,000 for 2005. 235.14 Sec. 8. Laws 2003, First Special Session chapter 9, 235.15 article 2, section 55, subdivision 12, as amended by Laws 2004, 235.16 chapter 272, article 1, section 13, is amended to read: 235.17 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 235.18 school aid under Minnesota Statutes, section 124D.83: 235.19 $1,617,000 ..... 2004 235.20$2,185,000$2,203,000 ..... 2005 235.21 The 2004 appropriation includes $285,000 for 2003 and 235.22 $1,332,000 for 2004. 235.23 The 2005 appropriation includes $333,000 for 2004 and 235.24$1,852,000$1,870,000 for 2005. 235.25 C. SPECIAL PROGRAMS 235.26 Sec. 9. Laws 2003, First Special Session chapter 9, 235.27 article 3, section 20, subdivision 2, is amended to read: 235.28 Subd. 2. [SPECIAL EDUCATION; REGULAR.] For special 235.29 education aid under Minnesota Statutes, section 125A.75: 235.30 $515,091,000 ..... 2004 235.31$529,460,000$552,214,000 ..... 2005 235.32 The 2004 appropriation includes $90,577,000 for 2003 and 235.33 $424,514,000 for 2004. 235.34 The 2005 appropriation includes $106,128,000 for 2004 and 235.35$423,332,000$446,086,000 for 2005. 235.36 Sec. 10. Laws 2003, First Special Session chapter 9, 236.1 article 3, section 20, subdivision 4, as amended by Laws 2004, 236.2 chapter 272, article 1, section 14, is amended to read: 236.3 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 236.4 under Minnesota Statutes, section 125A.75, subdivision 3, for 236.5 children with disabilities placed in residential facilities 236.6 within the district boundaries for whom no district of residence 236.7 can be determined: 236.8 $2,311,000 ..... 2004 236.9$2,550,000$3,155,000 ..... 2005 236.10 If the appropriation for either year is insufficient, the 236.11 appropriation for the other year is available. 236.12 Sec. 11. Laws 2003, First Special Session chapter 9, 236.13 article 3, section 20, subdivision 5, as amended by Laws 2004, 236.14 chapter 272, article 1, section 15, is amended to read: 236.15 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 236.16 teacher travel for home-based services under Minnesota Statutes, 236.17 section 125A.75, subdivision 1: 236.18 $173,000 ..... 2004 236.19$178,000$187,000 ..... 2005 236.20 The 2004 appropriation includes $34,000 for 2003 and 236.21 $139,000 for 2004. 236.22 The 2005 appropriation includes $34,000 for 2004 and 236.23$144,000$153,000 for 2005. 236.24 Sec. 12. Laws 2003, First Special Session chapter 9, 236.25 article 3, section 20, subdivision 8, as amended by Laws 2004, 236.26 chapter 272, article 1, section 18, is amended to read: 236.27 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 236.28 transition programs for children with disabilities under 236.29 Minnesota Statutes, section 124D.454: 236.30 $8,570,000 ..... 2004 236.31$8,760,000$9,176,000 ..... 2005 236.32 The 2004 appropriation includes $1,516,000 for 2003 and 236.33 $7,054,000 for 2004. 236.34 The 2005 appropriation includes $1,763,000 for 2004 and 236.35$6,997,000$7,413,000 for 2005. 236.36 Sec. 13. Laws 2003, First Special Session chapter 9, 237.1 article 3, section 20, subdivision 9, as amended by Laws 2004, 237.2 chapter 272, article 1, section 19, is amended to read: 237.3 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 237.4 reimbursing serving school districts for unreimbursed eligible 237.5 expenditures attributable to children placed in the serving 237.6 school district by court action under Minnesota Statutes, 237.7 section 125A.79, subdivision 4: 237.8 $36,000 ..... 2004 237.9$61,000$62,000 ..... 2005 237.10 D. FACILITIES AND TECHNOLOGY 237.11 Sec. 14. Laws 2003, First Special Session chapter 9, 237.12 article 4, section 31, subdivision 2, as amended by Laws 2004, 237.13 chapter 272, article 1, section 21, is amended to read: 237.14 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 237.15 safety aid according to Minnesota Statutes, section 123B.57, 237.16 subdivision 5: 237.17 $5,356,000 ..... 2004 237.18$1,920,000$2,099,000 ..... 2005 237.19 The 2004 appropriation includes $1,516,000 for 2003 and 237.20 $3,840,000 for 2004. 237.21 The 2005 appropriation includes $960,000 for 2004 and 237.22$960,000$1,139,000 for 2005. 237.23 Sec. 15. Laws 2003, First Special Session chapter 9, 237.24 article 4, section 31, subdivision 3, as amended by Laws 2004, 237.25 chapter 272, article 1, section 22, is amended to read: 237.26 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 237.27 according to Minnesota Statutes, section 123B.53, subdivision 6: 237.28 $35,598,000 ..... 2004 237.29$31,220,000$32,495,000 ..... 2005 237.30 The 2004 appropriation includes $5,586,000 for 2003 and 237.31 $30,012,000 for 2004. 237.32 The 2005 appropriation includes $7,503,000 for 2004 and 237.33$23,717,000$24,992,000 for 2005. 237.34 Sec. 16. Laws 2003, First Special Session chapter 9, 237.35 article 4, section 31, subdivision 4, is amended to read: 237.36 Subd. 4. [ALTERNATIVE FACILITIES BONDING AID.] For 238.1 alternative facilities bonding aid, according to Minnesota 238.2 Statutes, section 123B.59, subdivision 1: 238.3 $18,708,000 ..... 2004 238.4$19,287,000$20,116,000 ..... 2005 238.5 The 2004 appropriation includes $3,278,000 for 2003 and 238.6 $15,430,000 for 2004. 238.7 The 2005 appropriation includes $3,857,000 for 2004 and 238.8$15,430,000$16,259,000 for 2005. 238.9 E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 238.10 Sec. 17. Laws 2003, First Special Session chapter 9, 238.11 article 5, section 35, subdivision 3, as amended by Laws 2004, 238.12 chapter 272, article 1, section 24, is amended to read: 238.13 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 238.14 MILK.] For traditional school breakfast aid and kindergarten 238.15 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 238.16 $4,382,000 ..... 2004 238.17$4,460,000$4,548,000 ..... 2005 238.18 F. LIBRARIES 238.19 Sec. 18. Laws 2003, First Special Session chapter 9, 238.20 article 6, section 4, as amended by Laws 2004, chapter 272, 238.21 article 1, section 25, and Laws 2004, chapter 286, section 3, is 238.22 amended to read: 238.23 Sec. 4. [APPROPRIATIONS.] 238.24 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 238.25 indicated in this section are appropriated from the general fund 238.26 to the department of education for the fiscal years designated. 238.27 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 238.28 grants under Minnesota Statutes, section 134.355: 238.29 $8,312,000 ..... 2004 238.30$8,570,000$8,939,000 ..... 2005 238.31 The 2004 appropriation includes $1,456,000 for 2003 and 238.32 $6,856,000 for 2004. 238.33 The 2005 appropriation includes $1,714,000 for 2004 and 238.34$6,856,000$7,225,000 for 2005. 238.35 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 238.36 regional library telecommunications aid under Minnesota 239.1 Statutes, section 134.355: 239.2 $960,000 ..... 2004 239.3$1,200,000$1,252,000 ..... 2005 239.4 The 2004 appropriation includes $960,000 for 2004. 239.5 The 2005 appropriation includes $240,000 for 2004 and 239.6$960,000$1,012,000 for 2005. 239.7 Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 239.8 grants according to Minnesota Statutes, sections 134.353 and 239.9 134.354, to multicounty, multitype library systems: 239.10 $876,000 ..... 2004 239.11$903,000$942,000 ..... 2005 239.12 The 2004 appropriation includes $153,000 for 2003 and 239.13 $723,000 for 2004. 239.14 The 2005 appropriation includes $180,000 for 2004 and 239.15$723,000$762,000 for 2005. 239.16 Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 239.17 licenses to on-line databases selected in cooperation with the 239.18 higher education services office for school media centers, 239.19 public libraries, state government agency libraries, and public 239.20 or private college or university libraries: 239.21 $400,000 ..... 2004 239.22 $400,000 ..... 2005 239.23 Any balance in the first year does not cancel but is 239.24 available in the second year. 239.25 G. EARLY CHILDHOOD FAMILY SUPPORT 239.26 Sec. 19. Laws 2003, First Special Session chapter 9, 239.27 article 7, section 11, subdivision 2, is amended to read: 239.28 Subd. 2. [SCHOOL READINESS.] For revenue for school 239.29 readiness programs under Minnesota Statutes, sections 124D.15 239.30 and 124D.16: 239.31 $ 9,536,000 ..... 2004 239.32$ 9,258,000$9,594,000 ..... 2005 239.33 The 2004 appropriation includes $1,605,000 for 2003 and 239.34 $7,931,000 for 2004. 239.35 The 2005 appropriation includes $1,982,000 for 2004 and 239.36$7,276,000$7,612,000 for 2005. 240.1 Sec. 20. Laws 2003, First Special Session chapter 9, 240.2 article 7, section 11, subdivision 4, is amended to read: 240.3 Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 240.4 health and developmental screening aid under Minnesota Statutes, 240.5 sections 121A.17 and 121A.19: 240.6 $2,581,000 ..... 2004 240.7$2,661,000$2,776,000 ..... 2005 240.8 The 2004 appropriation includes $452,000 for 2003 and 240.9 $2,129,000 for 2004. 240.10 The 2005 appropriation includes $532,000 for 2004 and 240.11$2,129,000$2,244,000 for 2005. 240.12 H. PREVENTION 240.13 Sec. 21. Laws 2003, First Special Session chapter 9, 240.14 article 8, section 7, subdivision 2, as amended by Laws 2004, 240.15 chapter 272, article 1, section 27, is amended to read: 240.16 Subd. 2. [COMMUNITY EDUCATION AID.] For community 240.17 education aid under Minnesota Statutes, section 124D.20: 240.18 $5,351,000 ..... 2004 240.19$3,137,000$3,198,000 ..... 2005 240.20 The 2004 appropriation includes $956,000 for 2003 and 240.21 $4,395,000 for 2004. 240.22 The 2005 appropriation includes $1,098,000 for 2004 and 240.23$2,039,000$2,100,000 for 2005. 240.24 Sec. 22. Laws 2003, First Special Session chapter 9, 240.25 article 8, section 7, subdivision 3, is amended to read: 240.26 Subd. 3. [ADULTS WITH DISABILITIES PROGRAM AID.] For 240.27 adults with disabilities programs under Minnesota Statutes, 240.28 section 124D.56: 240.29 $688,000 ..... 2004 240.30$710,000$741,000 ..... 2005 240.31 The 2004 appropriation includes $120,000 for 2003 and 240.32 $568,000 for 2004. 240.33 The 2005 appropriation includes $142,000 for 2004 and 240.34$568,000$599,000 for 2005. 240.35 Sec. 23. Laws 2003, First Special Session chapter 9, 240.36 article 8, section 7, subdivision 5, as amended by Laws 2004, 241.1 chapter 272, article 1, section 28, is amended to read: 241.2 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 241.3 aid under Minnesota Statutes, section 124D.22: 241.4 $40,000 ..... 2004 241.5$24,000$30,000 ..... 2005 241.6 The 2004 appropriation includes $14,000 for 2003 and 241.7 $26,000 for 2004. 241.8 The 2005 appropriation includes $6,000 for 2004 and 241.9$18,000$24,000 for 2005. 241.10 I. SELF-SUFFICIENCY AND LIFELONG LEARNING 241.11 Sec. 24. Laws 2003, First Special Session chapter 9, 241.12 article 9, section 9, subdivision 2, as amended by Laws 2004, 241.13 chapter 272, article 1, section 29, is amended to read: 241.14 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 241.15 education aid under Minnesota Statutes, section 124D.52, in 241.16 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 241.17 fiscal year 2005: 241.18 $33,014,000 ..... 2004 241.19$35,808,000$37,444,000 ..... 2005 241.20 The 2004 appropriation includes $5,827,000 for 2003 and 241.21 $27,187,000 for 2004. 241.22 The 2005 appropriation includes $6,796,000 for 2004 and 241.23$29,012,000$30,648,000 for 2005. 241.24 Sec. 25. [EFFECTIVE DATE.] 241.25 Sections 1 to 24 are effective the day following final 241.26 enactment. 241.27 ARTICLE 12 241.28 TECHNICAL AND CONFORMING AMENDMENTS 241.29 Section 1. Minnesota Statutes 2004, section 120B.31, 241.30 subdivision 4, is amended to read: 241.31 Subd. 4. [STATISTICAL ADJUSTMENTS.] In developing policies 241.32 and assessment processes to hold schools and districts 241.33 accountable for high levels of academic standards, including the241.34profile of learningunder section 120B.021, the commissioner 241.35 shall aggregate student data over time to report student 241.36 performance levels measured at the school district, regional, or 242.1 statewide level. When collecting and reporting the data, the 242.2 commissioner shall: (1) acknowledge the impact of significant 242.3 demographic factors such as residential instability, the number 242.4 of single parent families, parents' level of education, and 242.5 parents' income level on school outcomes; and (2) organize and 242.6 report the data so that state and local policy makers can 242.7 understand the educational implications of changes in districts' 242.8 demographic profiles over time. Any report the commissioner 242.9 disseminates containing summary data on student performance must 242.10 integrate student performance and the demographic factors that 242.11 strongly correlate with that performance. 242.12 Sec. 2. Minnesota Statutes 2004, section 121A.41, 242.13 subdivision 10, is amended to read: 242.14 Subd. 10. [SUSPENSION.] "Suspension" means an action by 242.15 the school administration, under rules promulgated by the school 242.16 board, prohibiting a pupil from attending school for a period of 242.17 no more than ten school days. If a suspension is longer than 242.18 five days, the suspending administrator must provide the 242.19 superintendent with a reason for the longer suspension. This 242.20 definition does not apply to dismissal from school for one 242.21 school day or less, except as provided in federal law for a 242.22 student with a disability. Each suspension action may include a 242.23 readmission plan. The readmission plan shall include, where 242.24 appropriate, a provision for implementing alternative 242.25 educational services upon readmission and may not be used to 242.26 extend the current suspension. Consistent with section 242.27125A.09125A.091, subdivision35, the readmission plan must not 242.28 obligate a parent to provide a sympathomimetic medication for 242.29 the parent's child as a condition of readmission. The school 242.30 administration may not impose consecutive suspensions against 242.31 the same pupil for the same course of conduct, or incident of 242.32 misconduct, except where the pupil will create an immediate and 242.33 substantial danger to self or to surrounding persons or 242.34 property, or where the district is in the process of initiating 242.35 an expulsion, in which case the school administration may extend 242.36 the suspension to a total of 15 days. In the case of a student 243.1 with a disability, the student's individual education plan team 243.2 must meet immediately but not more than ten school days after 243.3 the date on which the decision to remove the student from the 243.4 student's current education placement is made. The individual 243.5 education plan team and other qualified personnel shall at that 243.6 meeting: conduct a review of the relationship between the 243.7 child's disability and the behavior subject to disciplinary 243.8 action; and determine the appropriateness of the child's 243.9 education plan. 243.10 The requirements of the individual education plan team 243.11 meeting apply when: 243.12 (1) the parent requests a meeting; 243.13 (2) the student is removed from the student's current 243.14 placement for five or more consecutive days; or 243.15 (3) the student's total days of removal from the student's 243.16 placement during the school year exceed ten cumulative days in a 243.17 school year. The school administration shall implement 243.18 alternative educational services when the suspension exceeds 243.19 five days. A separate administrative conference is required for 243.20 each period of suspension. 243.21 Sec. 3. Minnesota Statutes 2004, section 124D.40, is 243.22 amended to read: 243.23 124D.40 [YOUTH WORKS GRANTS.] 243.24 Subdivision 1. [APPLICATION.] An eligible organization 243.25 interested in receiving a grant under sections 124D.39 to 243.26 124D.44 may prepare and submit an application to the commission 243.27an application that complies with section 124D.41. 243.28 Subd. 2. [GRANT AUTHORITY.] The commission must use any 243.29 state appropriation and any available federal funds, including 243.30 any grant received under federal law, to award grants to 243.31 establish programs for youth worksmeeting the requirements of243.32section 124D.41. At least one grant each must be available for 243.33 a metropolitan proposal, a rural proposal, and a statewide 243.34 proposal. If a portion of the suburban metropolitan area is not 243.35 included in the metropolitan grant proposal, the statewide grant 243.36 proposal must incorporate at least one suburban metropolitan 244.1 area. In awarding grants, the commission may select at least 244.2 one residential proposal and one nonresidential proposal,244.3provided the proposals meet or exceed the criteria in section244.4124D.41. 244.5 Sec. 4. Minnesota Statutes 2004, section 127A.41, 244.6 subdivision 8, is amended to read: 244.7 Subd. 8. [APPROPRIATION TRANSFERS.] (a) If a direct 244.8 appropriation from the general fund to the department for any 244.9 education aid or grant authorized in this chapter and chapters 244.10 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 244.11 appropriations under sections 124D.135, 124D.16, 124D.20, 244.12124D.21,124D.22, 124D.52, 124D.531,124D.54,124D.55, and 244.13 124D.56, exceeds the amount required, the commissioner may 244.14 transfer the excess to any education aid or grant appropriation 244.15 that is insufficient. However, section 126C.20 applies to a 244.16 deficiency in the direct appropriation for general education 244.17 aid. Excess appropriations must be allocated proportionately 244.18 among aids or grants that have insufficient appropriations. The 244.19 commissioner of finance shall make the necessary transfers among 244.20 appropriations according to the determinations of the 244.21 commissioner. If the amount of the direct appropriation for the 244.22 aid or grant plus the amount transferred according to this 244.23 subdivision is insufficient, the commissioner shall prorate the 244.24 available amount among eligible districts. The state is not 244.25 obligated for any additional amounts. 244.26 (b) Transfers for aids paid under section 127A.45, 244.27 subdivisions 12, paragraph (a), 12a, paragraph (a), and 13, 244.28 shall be made during the fiscal year after the fiscal year of 244.29 the entitlement. Transfers for aids paid under section 127A.45, 244.30 subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 244.31 shall be made during the fiscal year of the appropriation. 244.32 Sec. 5. Minnesota Statutes 2004, section 127A.45, 244.33 subdivision 12, is amended to read: 244.34 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 244.35 hundred percent of the aid for the current fiscal year must be 244.36 paid for the following aids: reimbursement for enrollment 245.1 options transportation, according to sections 124D.03, 245.2 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 245.3 lunch aid, according to section 124D.111; hearing impaired 245.4 support services aid, according to section 124D.57; and Indian 245.5 postsecondary preparation grants according to section 245.6124D.80124D.81. 245.7 (b) One hundred percent of the aid for the current fiscal 245.8 year, based on enrollment in the previous year, must be paid for 245.9 the first grade preparedness program according to section 245.10 124D.081.