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Capital IconMinnesota Legislature

SF 100

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1.44 1.45 1.46 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23
2.24 2.25
2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36
2.37
2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45
2.46 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18
3.19
3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30
4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35
5.36 6.1 6.2 6.3 6.4 6.5 6.6
6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11
7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26
7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35
7.36 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13
8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22
8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27
9.28
9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28
10.29 10.30 10.31 10.32 10.33 10.34 10.35 10.36 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19
11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 11.36
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30
12.31 12.32 12.33 12.34 12.35 12.36 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23
13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34
13.35 13.36 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22
14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10
15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31
15.32 15.33 15.34 15.35 15.36 16.1 16.2 16.3 16.4
16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29
16.30 16.31 16.32 16.33 16.34 16.35 16.36 17.1
17.2 17.3 17.4 17.5 17.6 17.7
17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 17.36 18.1 18.2 18.3 18.4 18.5 18.6
18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 18.36 19.1 19.2
19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10
19.11 19.12 19.13 19.14 19.15 19.16
19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 19.36 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20
20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28
20.29 20.30 20.31 20.32 20.33 20.34 20.35 20.36
21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14
21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23
21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35
21.36 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 22.36
23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 23.36 24.1 24.2 24.3 24.4 24.5 24.6
24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15
25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17
26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 26.36 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 28.36 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18
29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30
30.31 30.32 30.33 30.34 30.35 30.36 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26
31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 31.35 31.36 32.1
32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 32.36 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 33.36 34.1 34.2 34.3 34.4 34.5 34.6 34.7
34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20
34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35
34.36 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 35.36
36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 36.36 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9
37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28
38.29 38.30 38.31 38.32 38.33 38.34 38.35 38.36 39.1 39.2 39.3 39.4 39.5 39.6 39.7
39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 39.36 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12
41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32
41.33 41.34 41.35 41.36 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15
42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34
42.35 42.36 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12
43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23
43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32
43.33 43.34 43.35
43.36 44.1 44.2 44.3 44.4
44.5 44.6 44.7 44.8 44.9 44.10 44.11
44.12 44.13 44.14 44.15 44.16 44.17
44.18 44.19
44.20 44.21 44.22 44.23 44.24 44.25
44.26
44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29
45.30 45.31 45.32 45.33 45.34 45.35 45.36 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8
47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 47.36 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9
48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 48.36 49.1 49.2
49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15
49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35
49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20
50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30
50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29
51.30 51.31 51.32 51.33 51.34 51.35 51.36 52.1 52.2 52.3 52.4
52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32
52.33
52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17
54.18 54.19 54.20 54.21 54.22 54.23 54.24
54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 55.36 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19
56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34
57.35 57.36 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8
58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 58.36 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13
59.14 59.15
59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12
60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25
60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 60.36 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23
61.24
61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35
61.36 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32
63.33 63.34 63.35 63.36 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16
64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 64.36 65.1 65.2 65.3 65.4 65.5 65.6 65.7
65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35
65.36 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21
66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 67.36 68.1
68.2 68.3 68.4 68.5
68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 68.36 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13
69.14 69.15 69.16 69.17
69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30
69.31 69.32 69.33 69.34 69.35 69.36 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23
70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30
71.31 71.32 71.33 71.34 71.35 71.36 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 72.36 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 74.36 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23
75.24
75.25 75.26 75.27 75.28 75.29 75.30
75.31 75.32
75.33 75.34 75.35 75.36 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 76.36 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 77.36
78.1
78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33
78.34 78.35 78.36 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27
79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20
80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28
81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21
82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20
83.21 83.22 83.23 83.24 83.25 83.26 83.27
83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35
83.36
84.1 84.2 84.3 84.4 84.5 84.6
84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 84.36 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31
85.32 85.33 85.34 85.35 85.36 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25
86.26
86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 87.36 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 88.36 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14
89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 89.36 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31
90.32 90.33 90.34 90.35 90.36 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12
91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 91.36 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12
92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11
93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30
93.31 93.32 93.33 93.34 93.35 93.36 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35
94.36 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 95.35 95.36 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 96.36 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19
97.20
97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 97.36 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17
98.18 98.19
98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34 98.35 98.36 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 99.36 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18
100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 100.35 100.36 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 101.35 101.36 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 103.36 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 104.36 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 105.36 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32
106.33 106.34 106.35 106.36 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28
107.29 107.30 107.31 107.32 107.33 107.34 107.35 107.36 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8
108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17
108.18 108.19 108.20 108.21 108.22 108.23
108.24 108.25 108.26 108.27 108.28 108.29 108.30
108.31 108.32 108.33 108.34 108.35
108.36 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33
109.34 109.35
109.36 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 110.36 111.1 111.2 111.3 111.4
111.5 111.6
111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26
111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35
111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12
112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33
112.34 112.35 112.36
113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8
113.9 113.10 113.11 113.12 113.13 113.14 113.15
113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33
113.34 113.35 113.36 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35 114.36 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27
115.28
115.29 115.30 115.31 115.32 115.33 115.34 115.35 115.36 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 116.36 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16
117.17 117.18
117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 117.34 117.35 117.36 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 118.35 118.36 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 119.35 119.36 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 120.35 120.36 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28
121.29 121.30 121.31 121.32 121.33 121.34 121.35 121.36 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35
122.36 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 123.36 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16
124.17
124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 124.36 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21
125.22 125.23 125.24 125.25
125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 125.36 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 126.36 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20
127.21
127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 127.36 128.1 128.2 128.3 128.4 128.5 128.6
128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 128.35 128.36 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21
129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 129.36 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 130.36 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24
131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 131.35 131.36 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14
132.15
132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26
132.27
132.28 132.29 132.30 132.31 132.32 132.33 132.34 132.35 132.36 133.1 133.2 133.3 133.4 133.5 133.6
133.7
133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 133.35 133.36 134.1 134.2 134.3 134.4
134.5
134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23
134.24
134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35 134.36 135.1 135.2
135.3
135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 135.34 135.35 135.36 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 136.33 136.34 136.35 136.36 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27
137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35 137.36 138.1 138.2
138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35
138.36 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 139.34 139.35 139.36 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 140.35 140.36 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21
141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 141.35 141.36 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21
142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 142.34 142.35 142.36 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 143.34
143.35 143.36 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 144.33 144.34 144.35 144.36 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10
145.11
145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21 145.22 145.23
145.24 145.25 145.26
145.27 145.28
145.29 145.30 145.31 145.32 145.33 145.34 145.35 145.36 146.1 146.2
146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18
146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30
146.31 146.32 146.33 146.34 146.35 146.36
147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24
147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 147.34 147.35 147.36 148.1 148.2 148.3 148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 148.34 148.35 148.36 149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16
149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 149.35 149.36 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29
150.30
150.31 150.32 150.33 150.34 150.35 150.36 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15
151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 151.34 151.35 151.36 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33 152.34 152.35 152.36 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 153.34 153.35 153.36 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24
154.25
154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 154.34 154.35 154.36 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15
155.16
155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30
155.31 155.32 155.33 155.34 155.35 155.36 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31
156.32 156.33 156.34 156.35 156.36 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17
157.18 157.19 157.20 157.21 157.22 157.23
157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32
157.33 157.34 157.35 157.36 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 158.34 158.35 158.36 159.1 159.2 159.3 159.4 159.5 159.6
159.7 159.8
159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 159.34 159.35 159.36 160.1 160.2 160.3 160.4
160.5
160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33
160.34 160.35 160.36 161.1 161.2 161.3 161.4
161.5 161.6 161.7 161.8 161.9 161.10 161.11
161.12 161.13
161.14 161.15 161.16 161.17 161.18 161.19
161.20 161.21
161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34 161.35 161.36 162.1
162.2 162.3
162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19
162.20 162.21 162.22 162.23 162.24 162.25 162.26
162.27 162.28
162.29 162.30 162.31 162.32 162.33 162.34 162.35 162.36 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 163.36 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28
164.29
164.30 164.31 164.32 164.33 164.34 164.35 164.36 165.1 165.2 165.3 165.4 165.5
165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29
165.30 165.31 165.32
165.33 165.34
165.35 165.36
166.1 166.2 166.3 166.4 166.5 166.6 166.7
166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30
166.31 166.32 166.33 166.34 166.35 166.36 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19
167.20 167.21 167.22 167.23 167.24 167.25 167.26
167.27 167.28
167.29 167.30 167.31 167.32 167.33 167.34 167.35 167.36 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26
168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 168.35 168.36
169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10
169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32
169.33 169.34
169.35 169.36 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 170.34 170.35 170.36 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 171.35 171.36 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 172.35 172.36 173.1 173.2 173.3 173.4 173.5 173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 173.34 173.35
173.36 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19
174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34
174.35 174.36 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30
175.31 175.32 175.33 175.34 175.35 175.36 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27
176.28 176.29 176.30 176.31 176.32
176.33 176.34 176.35 176.36 177.1 177.2 177.3
177.4 177.5
177.6 177.7
177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26
177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 177.35 177.36 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35
178.36 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 179.34 179.35 179.36 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16
180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 180.35 180.36
181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27
181.28 181.29 181.30 181.31 181.32 181.33 181.34 181.35 181.36 182.1 182.2 182.3 182.4 182.5 182.6
182.7 182.8
182.9 182.10 182.11

A bill for an act
relating to education; providing for prekindergarten
through grade 12 education including general
education; education excellence; special programs;
technology, facilities, and accounting; nutrition;
state agencies; school employee health insurance;
technical and conforming amendments; authorizing
rulemaking; providing for reports; appropriating
money; amending Minnesota Statutes 2004, sections
13.321, by adding a subdivision; 62E.02, subdivision
23; 62E.10, subdivision 1; 62E.11, subdivision 5;
120A.05, by adding a subdivision; 120B.02; 120B.021,
subdivision 1, by adding a subdivision; 120B.024;
120B.11, subdivisions 1, 2, 3, 4, 5, 8; 120B.22,
subdivision 1; 120B.30, subdivisions 1, 1a, by adding
a subdivision; 120B.31, subdivision 4; 121A.06,
subdivisions 2, 3; 121A.41, subdivision 10; 121A.53;
121A.66, subdivision 5, by adding subdivisions;
121A.67; 122A.06, subdivision 4; 122A.12, subdivision
2; 122A.15, by adding a subdivision; 122A.18,
subdivision 2a; 122A.40, subdivision 5; 122A.41,
subdivisions 2, 5a, 14; 122A.413; 122A.60, subdivision
1, by adding subdivisions; 122A.61, subdivision 1;
123A.05, subdivision 2; 123B.02, by adding
subdivisions; 123B.04, subdivisions 1, 2; 123B.42, by
adding a subdivision; 123B.49, subdivision 4;
123B.492; 123B.53, subdivision 1; 123B.54, as amended;
123B.75, by adding a subdivision; 123B.76, subdivision
3; 123B.79, subdivision 6; 123B.81, subdivision 1;
123B.82; 123B.83, subdivision 2; 123B.88, by adding a
subdivision; 123B.92, subdivisions 1, 5; 124D.081;
124D.09, subdivision 12; 124D.095, subdivisions 2, 4,
8, by adding a subdivision; 124D.10, subdivision 8;
124D.11, subdivisions 1, 2, 5, 6; 124D.111,
subdivision 1; 124D.118, subdivision 4; 124D.40;
124D.59, subdivision 2; 124D.66, subdivision 3;
124D.68, subdivision 9; 124D.69, subdivision 1;
124D.74, subdivision 1; 124D.81, subdivision 1;
124D.84, subdivision 1; 125A.11, subdivision 1;
125A.24; 125A.28; 125A.51; 125A.76, subdivisions 1, 3,
4; 125A.79, subdivisions 1, 6; 126C.01, subdivision
11; 126C.05, by adding subdivisions; 126C.10,
subdivisions 1, 2, 13, 13a, 13b, 18, 24, 29, 30, 31,
32, 33; 126C.13, subdivision 4, by adding
subdivisions; 126C.17, subdivisions 1, 2, 5, 9, 11,
13; 126C.21, subdivision 4; 126C.40, subdivision 1;
126C.457; 126C.48, subdivisions 2, 8; 126C.63,
subdivisions 5, 8; 127A.41, subdivision 8; 127A.45,
subdivisions 11, 12; 127A.47, subdivisions 7, 8;
127A.49, subdivisions 2, 3; 128C.12, subdivisions 1,
3; 128D.11, subdivision 9; 134.31, by adding a
subdivision; 179A.03, subdivision 14; 260C.201,
subdivision 1; 275.14; 275.16; 297I.05, subdivision 5;
469.177, subdivision 9; 475.61, subdivision 4; 2005
S.F. No. 1879, article 3, section 3, subdivisions 2,
3, 7, 8, 24, 25, 26, 27, 29, 31, 32, 35, 36, 41, 43,
44, 50, if enacted; 2005 S.F. No. 1879, article 3,
section 4, if enacted; 2005 S.F. No. 1879, article 3,
section 5, if enacted; Laws 1996, chapter 412, article
5, section 24; Laws 2003, First Special Session
chapter 9, article 4, section 29, as amended;
proposing coding for new law in Minnesota Statutes,
chapters 62A; 120B; 121A; 122A; 123B; 124D; 125A;
125B; 127A; 129C; repealing Minnesota Statutes 2004,
sections 121A.23; 122A.414; 122A.415; 123B.83,
subdivision 1; 125A.75, subdivision 8; 126C.10,
subdivisions 13a, 13b, 29, 30, 31, 32, 33; 126C.42,
subdivisions 1, 4; 126C.44; 128C.12, subdivision 4.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2004, section 120A.05, is
amended by adding a subdivision to read:


new text begin Subd. 18.new text end

new text begin Kindergarten.new text end

new text begin "Kindergarten" means a program
designed for pupils five years of age on September 1 of the
calendar year in which the school year commences that prepares
pupils to enter first grade the following school year. A
program designed for pupils younger than five years of age on
September 1 of the calendar year in which the school year
commences that prepares pupils to enter kindergarten the
following school year is a prekindergarten program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [121A.24] SAFE SCHOOLS; RESERVED REVENUE.
new text end

new text begin School districts must reserve an amount of the basic
revenue under section 126C.10, subdivision 2, equal to $27 per
adjusted marginal cost pupil unit in fiscal year 2007 and
later. The amount reserved under this section must be used for
the purposes allowed under Minnesota Statutes 2004, section
126C.44, including to pay for school counselors, school social
workers, school nurses, and school psychologists.
new text end

Sec. 3.

Minnesota Statutes 2004, section 123A.05,
subdivision 2, is amended to read:


Subd. 2.

Reserve revenue.

Each district that is a member
of an area learning center must reserve revenue in an amount
equal to new text begin the sum of (1) new text end at least 90 percent of the district
average general education revenue per pupil unit minus an amount
equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times .0485 new text begin for fiscal year 2006
and .0458 for fiscal year 2007 and later
new text end , calculated without
basic skills revenuedeleted text begin ,deleted text end new text begin and new text end transportation sparsity revenue, deleted text begin and
the transportation portion of the transition revenue adjustment,
deleted text end times the number of pupil units attending an area learning
center program under this sectionnew text begin , plus (2) the amount of basic
skills revenue generated by pupils attending the area learning
center
new text end . The amount of reserved revenue under this subdivision
may only be spent on program costs associated with the area
learning center. Compensatory revenue must be allocated
according to section 126C.15, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 4.

Minnesota Statutes 2004, section 123B.49,
subdivision 4, is amended to read:


Subd. 4.

Board control of extracurricular activities.

(a) The board may take charge of and control all extracurricular
activities of the teachers and children of the public schools in
the district. Extracurricular activities means all direct and
personal services for pupils for their enjoyment that are
managed and operated under the guidance of an adult or staff
member. The board shall allow all resident pupils receiving
instruction in a home school as defined in section 123B.36,
subdivision 1, paragraph (a), to be eligible to fully
participate in extracurricular activities on the same basis as
public school students.

(b) Extracurricular activities have all of the following
characteristics:

(1) they are not offered for school credit nor required for
graduation;

(2) they are generally conducted outside school hours, or
if partly during school hours, at times agreed by the
participants, and approved by school authorities;

(3) the content of the activities is determined primarily
by the pupil participants under the guidance of a staff member
or other adult.

(c) If the board does not take charge of and control
extracurricular activities, these activities shall be
self-sustaining with all expenses, except direct salary costs
and indirect costs of the use of school facilities, met by dues,
admissions, or other student fund-raising events. The general
fund must reflect only those salaries directly related to and
readily identified with the activity and paid by public funds.
Other revenues and expenditures for extra curricular activities
must be recorded according to the deleted text begin "Manual of Instruction for
Uniform Student Activities Accounting for Minnesota School
Districts and Area Vocational-Technical Colleges."
deleted text end new text begin Manual for
Activity Fund Accounting.
new text end Extracurricular activities not under
board control must have an annual financial audit and must also
be audited annually for compliance with this section.

(d) If the board takes charge of and controls
extracurricular activities, any or all costs of these activities
may be provided from school revenues and all revenues and
expenditures for these activities shall be recorded in the same
manner as other revenues and expenditures of the district.

(e) If the board takes charge of and controls
extracurricular activities, the teachers or pupils in the
district must not participate in such activity, nor shall the
school name or any allied name be used in connection therewith,
except by consent and direction of the board.

Sec. 5.

Minnesota Statutes 2004, section 123B.53,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this
section, the eligible debt service revenue of a district is
defined as follows:

(1) the amount needed to produce between five and six
percent in excess of the amount needed to meet when due the
principal and interest payments on the obligations of the
district for eligible projects according to subdivision 2,
including the amounts necessary for repayment of energy loans
according to section 216C.37 or sections 298.292 to 298.298,
debt service loans and capital loans, lease purchase payments
under section 126C.40, subdivision 2, alternative facilities
levies under section 123B.59, subdivision 5, minus

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

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

(1) obligations under section 123B.61;

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

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

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school
district reorganized under sections 123A.35 to 123A.43, 123A.46,
and 123A.48 is solely responsible for retirement of the
preexisting district's bonded indebtedness, capital loans or
debt service loans, debt service equalization aid must be
computed separately for each of the preexisting districts.

new text begin (d) For purposes of this section, the adjusted net tax
capacity determined according to section 127A.48 shall be
adjusted to include a portion of the tax capacity of property
generally exempted from ad valorem taxes under section 272.02,
subdivisions 64 and 65, equal to the product of that tax
capacity times the ratio of the eligible debt service revenue
attributed to general obligation bonds to the total eligible
debt service revenue of the district.
new text end

Sec. 6.

Minnesota Statutes 2004, section 123B.75, is
amended by adding a subdivision to read:


new text begin Subd. 4a. new text end

new text begin Taconite revenue. new text end

new text begin Taconite revenue received in
a calendar year by a school district under section 298.28,
subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d),
is fully recognized in the fiscal year in which the February
payment falls.
new text end

Sec. 7.

Minnesota Statutes 2004, section 123B.76,
subdivision 3, is amended to read:


Subd. 3.

Expenditures by building.

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

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

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

(1) expenditures not deleted text begin required to be deleted text end reported by building
shall be allocated among buildings on a uniform per pupil basis;

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

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

(4) other general education revenue shall be allocated on a
uniform per pupil unit basis;

(5) first grade preparedness aid shall be allocated
according to section 124D.081;

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

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

Sec. 8.

Minnesota Statutes 2004, section 123B.79,
subdivision 6, is amended to read:


Subd. 6.

Account transfer for statutory operating debt.

On June 30 of each year, a district may make a permanent
transfer from the general fund account entitled " deleted text begin undesignated
deleted text end new text begin net unreserved general new text end fund balance since statutory operating
debt" to the account entitled "reserved fund balance reserve
account for purposes of statutory operating debt reduction."
The amount of the transfer is limited to the lesser of (a) the
net deleted text begin undesignated operating deleted text end new text begin unreserved general new text end fund balance, or
(b) the sum of the remaining statutory operating debt levies
authorized for all future years according to section 126C.42,
subdivision 1. If the net deleted text begin undesignated operating deleted text end new text begin unreserved
general
new text end fund balance is less than zero, the district may not
make a transfer.

Sec. 9.

Minnesota Statutes 2004, section 123B.81,
subdivision 1, is amended to read:


Subdivision 1.

Operating debt.

The "operating debt" of a
school district means the net negative deleted text begin undesignated deleted text end new text begin unreserved
general
new text end fund balance deleted text begin in all school district funds, other than
capital expenditure, building construction, debt service, and
trust and agency,
deleted text end calculated as of June 30 of each year in
accordance with the uniform financial accounting and reporting
standards for Minnesota school districts.

Sec. 10.

Minnesota Statutes 2004, section 123B.82, is
amended to read:


123B.82 REORGANIZATION OPERATING DEBT.

The "reorganization operating debt" of a school district
means the net negative deleted text begin undesignated deleted text end new text begin unreserved general new text end fund
deleted text begin balance deleted text end new text begin balances new text end in all school district funds, other than
building construction, debt redemption, and trust and agency,
calculated in accordance with the uniform financial accounting
and reporting standards for Minnesota school districts as of:

(1) June 30 of the fiscal year before the first year that a
district receives revenue according to section 123A.39,
subdivision 3; or

(2) June 30 of the fiscal year before the effective date of
reorganization according to section 123A.46 or 123A.48.

Sec. 11.

Minnesota Statutes 2004, section 123B.83,
subdivision 2, is amended to read:


Subd. 2.

deleted text begin undesignated deleted text end new text begin net unreserved general new text end fund
balances.

deleted text begin Beginning in fiscal year 1978 and each year
thereafter, any
deleted text end new text begin A school new text end district deleted text begin not subject to the provisions
of subdivision 1
deleted text end must limit its expenditures so that
its deleted text begin undesignated deleted text end new text begin net unreserved general new text end fund deleted text begin balances do deleted text end new text begin balance
does
new text end not constitute statutory operating debt as defined in
section 126C.42.

Sec. 12.

Minnesota Statutes 2004, section 123B.92,
subdivision 5, is amended to read:


Subd. 5.

District reports.

new text begin (a) new text end Each district must report
data to the department as required by the department to account
for transportation expenditures.

new text begin (b) Salaries and fringe benefits of district employees
whose primary duties are other than transportation, including
central office administrators and staff, building administrators
and staff, teachers, social workers, school nurses, and
instructional aides, must not be included in a district's
transportation expenditures, except that a district may include
salaries and benefits according to paragraph (c) for (1) an
employee designated as the district transportation director, (2)
an employee providing direct support to the transportation
director, or (3) an employee providing direct transportation
services such as a bus driver or bus aide.
new text end

new text begin (c) Salaries and fringe benefits of other district
employees who work part-time in transportation and part-time in
other areas must not be included in a district's transportation
expenditures unless the district maintains documentation of the
employee's time spent on pupil transportation matters in the
form and manner prescribed by the department.
new text end

new text begin (d) Pupil transportation expenditures, excluding
expenditures for capital outlay, leased buses, student board and
lodging, crossing guards, and aides on buses, must be allocated
among transportation categories based on a cost per mile, cost
per student, cost per hour, or cost per route, regardless of
whether the transportation services are provided on
district-owned or contractor-owned school buses. Expenditures
for school bus driver salaries and fringe benefits may either be
directly charged to the appropriate transportation category or
may be allocated among transportation categories on a cost per
mile, cost per student basis, cost per hour, or cost per route.
Expenditures by private contractors or individuals who provide
transportation exclusively in one transportation category must
be charged directly to the appropriate transportation category.
Transportation services provided by contractor-owned school bus
companies incorporated under different names but owned by the
same individual or group of individuals must be treated as the
same company for cost allocation purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for expenditure
reporting for fiscal year 2006 and later.
new text end

Sec. 13.

Minnesota Statutes 2004, section 124D.11,
subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

(a) new text begin For fiscal
year 2006,
new text end general education revenue must be paid to a charter
school as though it were a district. The general education
revenue for each adjusted marginal cost pupil unit is the state
average general education revenue per pupil unit, plus the
referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times
.0485, calculated without basic skills revenue, new text begin extended time
revenue, transition revenue,
new text end and transportation sparsity
revenue, plus basic skills revenuenew text begin , extended time revenue,new text end and
transition revenue as though the school were a school district.
new text begin The general education revenue for each extended time marginal
cost pupil unit equals $4,378.
new text end

(b) new text begin For fiscal year 2007 and later, general education
revenue must be paid to a charter school as though it were a
district. The general education revenue for each adjusted
marginal cost pupil unit is the state average general education
revenue per pupil unit, plus the referendum equalization aid
allowance in the pupil's district of residence, minus an amount
equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times .0458, calculated without
basic skills revenue, extended time revenue, and transportation
sparsity revenue, plus basic skills revenue and extended time
revenue as though the school were a school district. The
general education revenue for each extended time marginal cost
pupil unit equals $4,391. Each year, a charter school must also
be paid an amount equal to its 2004 transition revenue allowance
multiplied times its adjusted marginal cost pupil units for the
current year.
new text end

new text begin (c) new text end Notwithstanding deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin and (b)new text end , for
charter schools in the first year of operation, general
education revenue shall be computed using the number of adjusted
pupil units in the current fiscal year.

Sec. 14.

Minnesota Statutes 2004, section 124D.11,
subdivision 2, is amended to read:


Subd. 2.

Transportation revenue.

Transportation revenue
must be paid to a charter school that provides transportation
services according to section 124D.10, subdivision 16, according
to this subdivision. Transportation aid shall equal
transportation revenue.

In addition to the revenue under subdivision 1, new text begin for fiscal
year 2006
new text end a charter school providing transportation services
must receive general education aid deleted text begin for each pupil unit deleted text end equal to
the sum of new text begin the product of (1) new text end an amount equal to the product of
the formula allowance according to section 126C.10, subdivision
2, times .0485 new text begin in fiscal years 2005 and 2006 and .0458 in fiscal
years 2007 and later
new text end , plus the transportation sparsity allowance
for the school district in which the charter school is locatednew text begin ,
times (2) the adjusted marginal cost pupil units, plus the
product of $223 times the extended time marginal cost pupil
units.
new text end

new text begin In addition to the revenue under subdivision 1, for fiscal
year 2007 and later, a charter school providing transportation
services must receive general education aid equal to the sum of
the product of (1) the formula allowance according to section
126C.10, subdivision 2, times .0458, plus the transportation
sparsity allowance for the school district in which the charter
school is located, times (2) the adjusted marginal cost pupil
units, plus the product of $210 times the extended time marginal
cost pupil units
new text end .

Sec. 15.

Minnesota Statutes 2004, section 124D.11,
subdivision 6, is amended to read:


Subd. 6.

Other aid, grants, revenue.

(a) A charter
school is eligible to receive other aids, grants, and revenue
according to chapters 120A to 129C, as though it were a district.

(b) Notwithstanding paragraph (a), a charter school may not
receive aid, a grant, or revenue new text begin other than general education
revenue
new text end if a levy is required to obtain the money, except as
otherwise provided in this section.

(c) Federal aid received by the state must be paid to the
school, if it qualifies for the aid as though it were a school
district.

(d) A charter school may receive money from any source for
capital facilities needs. In the year-end report to the
commissioner of education, the charter school shall report the
total amount of funds received from grants and other outside
sources.

Sec. 16.

Minnesota Statutes 2004, section 124D.68,
subdivision 9, is amended to read:


Subd. 9.

Enrollment verification.

(a) For a pupil
attending an eligible program full time under subdivision 3,
paragraph (d), the department must pay 90 percent of the
district's average general education revenue less basic skills
revenue to the eligible program and ten percent of the
district's average general education revenue less basic skills
revenue to the contracting district within 30 days after the
eligible program verifies enrollment using the form provided by
the department. For a pupil attending an eligible program part
time, revenuenew text begin , excluding compensatory revenue,new text end shall be reduced
proportionately, according to the amount of time the pupil
attends the program, and the payments to the eligible program
and the contracting district shall be reduced accordingly. A
pupil for whom payment is made according to this section may not
be counted by any district for any purpose other than
computation of general education revenue. If payment is made
for a pupil under this subdivision, a district shall not
reimburse a program under section 124D.69 for the same
pupil. new text begin The new text end basic skills revenue deleted text begin shall be paid deleted text end new text begin generated by
pupils attending the eligible program
new text end according to section
126C.10, subdivision 4new text begin , shall be paid to the eligible programnew text end .

(b) The department must pay up to 100 percent of the
revenue to the eligible program if there is an agreement to that
effect between the school district and the eligible program.

(c) Notwithstanding paragraphs (a) and (b), for an eligible
program that provides chemical treatment services to students,
the department must pay 100 percent of the revenue to the
eligible program.

Sec. 17.

Minnesota Statutes 2004, section 124D.69,
subdivision 1, is amended to read:


Subdivision 1.

Aid.

If a pupil enrolls in an alternative
program, eligible under section 124D.68, subdivision 3,
paragraph (d), or subdivision 4, operated by a private
organization that has contracted with a school district to
provide educational services for eligible pupils under section
124D.68, subdivision 2, the district contracting with the
private organization must reimburse the provider an amount equal
to new text begin the sum of (1) new text end at least 95 percent of the district's average
general education less basic skills revenue per pupil unit times
the number of pupil units for pupils attending the programdeleted text begin .deleted text end new text begin , and
(2) the amount of
new text end basic skills revenue deleted text begin shall be paid deleted text end new text begin generated
by pupils attending the program
new text end according to section 126C.10,
subdivision 4. deleted text begin Compensatory revenue must be allocated according
to section 126C.15, subdivision 2.
deleted text end For a pupil attending the
program part time, the revenue paid to the programnew text begin , excluding
compensatory revenue,
new text end must be reduced proportionately, according
to the amount of time the pupil attends the program, and revenue
paid to the district shall be reduced accordingly. Pupils for
whom a district provides reimbursement may not be counted by the
district for any purpose other than computation of general
education revenue. If payment is made to a district or program
for a pupil under this section, the department must not make a
payment for the same pupil under section 124D.68, subdivision 9.
new text begin Notwithstanding sections 125A.15, 125A.51, and 125A.515, general
education revenue for a student who receives educational
services under this section shall be paid according to this
section.
new text end

Sec. 18.

Minnesota Statutes 2004, section 126C.01,
subdivision 11, is amended to read:


Subd. 11.

Net deleted text begin unappropriated operating deleted text end new text begin unreserved general
new text end fund balance.

"Net deleted text begin unappropriated operating deleted text end new text begin unreserved general
new text end fund balance" means the sum of the new text begin unreserved general new text end fund
deleted text begin balances in the general, food service, and community service
funds minus the balances reserved for statutory operating debt
reduction, bus purchase, severance pay, taconite, unemployment
benefits, maintenance levy reduction, operating capital,
disabled access, health and safety,
deleted text end new text begin balance new text end and encumbrances,
computed as of June 30 each year.

Sec. 19.

Minnesota Statutes 2004, section 126C.05, is
amended by adding a subdivision to read:


new text begin Subd. 5a. new text end

new text begin Extended time pupil units. new text end

new text begin (a) "Extended time
average daily membership for a district or charter school" means
the sum of the average daily membership according to subdivision
8, paragraph (a), minus the sum of the average daily membership
according to subdivision 8, paragraph (b), for pupils enrolled
in a learning year program under section 124D.128; an area
learning center under sections 123A.05 and 123A.06; an
alternative program under section 124D.68, subdivision 3,
paragraph (d); or section 124D.69.
new text end

new text begin (b) "Extended time pupil units for a district or charter
school" means the sum of the average daily membership in
paragraph (a) weighted according to subdivision 1 for pupils
included in the pupil unit calculations under subdivision 5,
paragraph (a).
new text end

new text begin (c) "Extended time marginal cost pupil units" means the
greater of:
new text end

new text begin (1) the sum of .77 times the pupil units defined in
paragraph (b) for the current school year and .23 times the
pupil units defined in paragraph (b) for the previous school
year; or
new text end

new text begin (2) the number of extended time pupil units defined in
paragraph (b) for the current school year.
new text end

Sec. 20.

Minnesota Statutes 2004, section 126C.05, is
amended by adding a subdivision to read:


new text begin Subd. 20. new text end

new text begin Project-based average daily membership. new text end

new text begin (a) To
receive general education revenue for a pupil enrolled in a
public school with a project-based program, a school must meet
the requirements in this paragraph. The school must:
new text end

new text begin (1) register with the commissioner as a project-based
program by May 30 of the preceding fiscal year;
new text end

new text begin (2) provide a minimum teacher contact of no less than one
hour per week per project-based credit for each pupil;
new text end

new text begin (3) maintain a record system that shows when each credit or
portion thereof was reported for membership for each pupil; and
new text end

new text begin (4) report pupil membership consistent with paragraph (b).
new text end

new text begin (b) The commissioner must develop a formula for reporting
pupil membership to compute average daily membership for each
registered project-based school. Average daily membership for a
pupil in a registered project-based program is the lesser of:
new text end

new text begin (1) 1.0; or
new text end

new text begin (2) the ratio of (i) the number of membership hours
generated by project-based credits completed during the school
year plus membership hours generated by credits completed in a
seat-based setting to (ii) the annual required instructional
hours at that grade level. Membership hours for a partially
completed project-based credit must be prorated.
new text end

Sec. 21.

Minnesota Statutes 2004, section 126C.10,
subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

(a) deleted text begin For fiscal
year 2003, the general education revenue for each district
equals the sum of the district's basic revenue, basic skills
revenue, training and experience revenue, secondary sparsity
revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, and equity revenue.
deleted text end

deleted text begin (b) deleted text end For fiscal year deleted text begin 2004 and later deleted text end new text begin 2006new text end , the general
education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, basic skills
revenue, training and experience revenue, secondary sparsity
revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, equity revenue, and
transition revenue.

new text begin (b) For fiscal year 2007 and later, the general education
revenue for each district equals the sum of the district's basic
revenue, extended time revenue, basic skills revenue, training
and experience revenue, secondary sparsity revenue, elementary
sparsity revenue, transportation sparsity revenue, total
operating capital revenue, and equity revenue.
new text end

Sec. 22.

Minnesota Statutes 2004, section 126C.10,
subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

The basic revenue for each
district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin 2001 deleted text end new text begin 2005 new text end is deleted text begin $3,964 deleted text end new text begin $4,601new text end . The
formula allowance for fiscal year deleted text begin 2002 deleted text end new text begin 2006 new text end is deleted text begin $4,068 deleted text end new text begin $4,832new text end .
The formula allowance for fiscal year deleted text begin 2003 deleted text end new text begin 2007 new text end and subsequent
years is deleted text begin $4,601 deleted text end new text begin $5,053new text end .

Sec. 23.

Minnesota Statutes 2004, section 126C.10,
subdivision 13, is amended to read:


Subd. 13.

Total operating capital revenue.

(a) For
fiscal year 2000 and thereafter, total operating capital revenue
for a district equals the amount determined under paragraph (b)
or (c), plus $73 times the adjusted marginal cost pupil units
for the school year. The revenue must be placed in a reserved
account in the general fund and may only be used according to
paragraph (d) or subdivision 14.

(b) For fiscal years 2000 and later, capital revenue for a
district equals $100 times the district's maintenance cost index
times its adjusted marginal cost pupil units for the school year.

(c) For fiscal years 2000 and later, the revenue for a
district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of marginal
cost pupil units served at the site where the program is
implemented.

deleted text begin (d) For fiscal years 2001, 2002, and 2003, the district
must reserve an amount equal to $5 per adjusted marginal cost
pupil unit for telecommunication access costs. Reserve revenue
under this paragraph must first be used to pay for ongoing or
recurring telecommunication access costs, including access to
data and video connections, including Internet access. Any
revenue remaining after covering all ongoing or recurring access
costs may be used for computer hardware or equipment.
deleted text end

Sec. 24.

Minnesota Statutes 2004, section 126C.10,
subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating
capital revenue for fiscal deleted text begin year deleted text end new text begin years new text end 2005 and deleted text begin later deleted text end new text begin 2006new text end , a
district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser
of one or the ratio of its adjusted net tax capacity per
adjusted marginal cost pupil unit to $22,222.

Sec. 25.

Minnesota Statutes 2004, section 126C.10,
subdivision 13b, is amended to read:


Subd. 13b.

Operating capital aid.

new text begin For fiscal years 2005
and 2006,
new text end a district's operating capital aid equals its
operating capital revenue minus its operating capital levy times
the ratio of the actual amount levied to the permitted levy.

Sec. 26.

Minnesota Statutes 2004, section 126C.10,
subdivision 18, is amended to read:


Subd. 18.

Transportation sparsity revenue allowance.

(a)
new text begin For fiscal year 2006,new text end a district's transportation sparsity
allowance equals the greater of zero or the result of the
following computation:

deleted text begin (i) deleted text end new text begin (1) new text end multiply the formula allowance according to
subdivision 2, by .1469deleted text begin .deleted text end new text begin ;
new text end

deleted text begin (ii) deleted text end new text begin (2) new text end multiply the result in clause deleted text begin (i) deleted text end new text begin (1) new text end by the
district's sparsity index raised to the 26/100 powerdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (iii) deleted text end new text begin (3) new text end multiply the result in clause deleted text begin (ii) deleted text end new text begin (2) new text end by the
district's density index raised to the 13/100 powerdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (iv) deleted text end new text begin (4) new text end multiply the formula allowance according to
subdivision 2, by .0485deleted text begin .deleted text end new text begin ; and
new text end

deleted text begin (v) deleted text end new text begin (5) new text end subtract the result in clause deleted text begin (iv) deleted text end new text begin (4) new text end from the
result in clause deleted text begin (iii) deleted text end new text begin (3)new text end .

(b) new text begin For fiscal year 2007 and later, a district's
transportation sparsity allowance equals the greater of zero or
the result of the following computation:
new text end

new text begin (1) multiply the formula allowance according to subdivision
2 by .1469;
new text end

new text begin (2) multiply the result in clause (1) by the district's
sparsity index raised to the 28/100 power;
new text end

new text begin (3) multiply the result in clause (2) by the district's
density index raised to the 13/100 power;
new text end

new text begin (4) multiply the formula allowance according to subdivision
2 by .0458; and
new text end

new text begin (5) subtract the result in clause (4) from the result in
clause (3).
new text end

new text begin (c) Transportation sparsity revenue is equal to the
transportation sparsity allowance times the adjusted marginal
cost pupil units.
new text end

new text begin (d) new text end Transportation sparsity revenue is equal to the
transportation sparsity allowance times the adjusted marginal
cost pupil units.

Sec. 27.

Minnesota Statutes 2004, section 126C.10,
subdivision 24, is amended to read:


Subd. 24.

Equity revenue.

(a) A school district
qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit
amount of basic revenuedeleted text begin , supplemental revenue, transition
revenue,
deleted text end and referendum revenue is less than the value of the
school district at or immediately above the 95th percentile of
school districts in its equity region for those revenue
categories; and

(2) the school district's administrative offices are not
located in a city of the first class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives
referendum revenue under section 126C.17, subdivision 4, equals
the product of (1) the district's adjusted marginal cost pupil
units for that year; times (2) the sum of (i) $13, plus (ii)
$75, times the school district's equity index computed under
subdivision 27.

(c) Equity revenue for a qualifying district that does not
receive referendum revenue under section 126C.17, subdivision 4,
equals the product of the district's adjusted marginal cost
pupil units for that year times $13.

new text begin (d) For fiscal year 2007 and later, referendum revenue for
the purpose of this section does not include referendum
conversion allowance authority transferred to the referendum
allowance in fiscal year 2007 under section 126C.17, subdivision
13, by the vote of a school board. Referendum conversion
allowance authority added to the referendum allowance under
section 126C.17, subdivision 1, shall be included in the
referendum for the purposes of this section if a school district
reauthorizes the revenue at an election according to section
126C.17, subdivision 9.
new text end

Sec. 28.

Minnesota Statutes 2004, section 126C.10,
subdivision 29, is amended to read:


Subd. 29.

Equity levy.

To obtain equity revenue for
fiscal deleted text begin year deleted text end new text begin years new text end 2005 and deleted text begin later deleted text end new text begin 2006new text end , a district may levy an
amount not more than the product of its equity revenue for the
fiscal year times the lesser of one or the ratio of its
referendum market value per resident marginal cost pupil unit to
$476,000.

Sec. 29.

Minnesota Statutes 2004, section 126C.10,
subdivision 30, is amended to read:


Subd. 30.

Equity aid.

new text begin For fiscal years 2005 and 2006,new text end a
district's equity aid equals its equity revenue minus its equity
levy times the ratio of the actual amount levied to the
permitted levy.

Sec. 30.

Minnesota Statutes 2004, section 126C.10,
subdivision 31, is amended to read:


Subd. 31.

Transition revenue.

(a) A district's
transition allowance for fiscal years 2004 through deleted text begin 2008 deleted text end new text begin 2006
new text end equals the greater of zero or the product of the ratio of the
number of adjusted marginal cost pupil units the district would
have counted for fiscal year 2004 under Minnesota Statutes 2002
to the district's adjusted marginal cost pupil units for fiscal
year 2004, times the difference between: (1) the lesser of the
district's general education revenue per adjusted marginal cost
pupil unit for fiscal year 2003 or the amount of general
education revenue the district would have received per adjusted
marginal cost pupil unit for fiscal year 2004 according to
Minnesota Statutes 2002, and (2) the district's general
education revenue for fiscal year 2004 excluding transition
revenue divided by the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under
Minnesota Statutes 2002. A district's transition allowance for
fiscal year deleted text begin 2009 deleted text end new text begin 2007 new text end and later is zero.

(b) A district's transition revenue for fiscal deleted text begin year deleted text end new text begin years
new text end 2004 and deleted text begin later deleted text end new text begin 2005 new text end equals the product of the district's
transition allowance times the district's adjusted marginal cost
pupil units.

new text begin (c) A district's transition revenue for fiscal year 2006
equals the sum of (1) the product of the district's transition
allowance times the district's adjusted marginal cost pupil
units, plus (2) the amount of referendum revenue under section
126C.17 and general education revenue, excluding transition
revenue, for fiscal year 2004 attributable to pupils four or
five years of age on September 1, 2003, enrolled in a
prekindergarten program implemented by the district before July
1, 2003, and reported as kindergarten pupils under section
126C.05, subdivision 1, for fiscal year 2004 multiplied times
0.01, plus (3) the amount of compensatory education revenue
under subdivision 3 for fiscal year 2005 attributable to pupils
four years of age on September 1, 2003, enrolled in a
prekindergarten program implemented by the district before July
1, 2003, and reported as kindergarten pupils under section
126C.05, subdivision 1, for fiscal year 2004 multiplied times
0.01.
new text end

Sec. 31.

Minnesota Statutes 2004, section 126C.10,
subdivision 32, is amended to read:


Subd. 32.

Transition levy.

To obtain transition revenue
for fiscal deleted text begin year deleted text end new text begin years new text end 2005 and deleted text begin later deleted text end new text begin 2006new text end , a district may levy
an amount not more than the product of its transition revenue
for the fiscal year times the lesser of one or the ratio of its
referendum market value per resident marginal cost pupil unit to
$476,000.

Sec. 32.

Minnesota Statutes 2004, section 126C.10,
subdivision 33, is amended to read:


Subd. 33.

Transition aid.

(a) For fiscal year 2004, a
district's transition aid equals its transition revenue.

(b) For fiscal deleted text begin year deleted text end new text begin years new text end 2005 and deleted text begin later deleted text end new text begin 2006new text end , a district's
transition aid equals its transition revenue minus its
transition levy times the ratio of the actual amount levied to
the permitted levy.

Sec. 33.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:


new text begin Subd. 3a. new text end

new text begin Consolidated tax rate. new text end

new text begin The commissioner must
establish the consolidated tax rate by July 1 of each year for
levies payable in the following year. The consolidated tax
capacity rate must be a rate, rounded up to the nearest
hundredth of a percent, that, when applied to the adjusted net
tax capacity for all districts, raises the amount specified in
this subdivision. The consolidated tax rate must be the rate
that raises $91,097,300 for fiscal year 2007, $110,770,300 for
fiscal year 2008, and $122,380,100 for fiscal year 2009 and
later years. The consolidated tax rate may not be changed due
to changes or corrections made to a district's adjusted net tax
capacity after the tax rate has been established.
new text end

Sec. 34.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:


new text begin Subd. 3b. new text end

new text begin Consolidated levy. new text end

new text begin To obtain general education
revenue, a district may levy an amount not to exceed the
consolidated tax rate times the adjusted net tax capacity of the
district for the preceding year. If the amount of the
consolidated levy would exceed the general education revenue,
the consolidated levy must be determined according to
subdivision 3c.
new text end

Sec. 35.

Minnesota Statutes 2004, section 126C.13, is
amended by adding a subdivision to read:


new text begin Subd. 3c. new text end

new text begin Consolidated levy; districts off the
formula.
new text end

new text begin If the amount of the consolidated levy for a district
exceeds the district's general education revenue, the amount of
the consolidated levy must be limited to the following:
new text end

new text begin (1) the district's general education revenue; minus
new text end

new text begin (2) payments made for the same school year according to
section 126C.21, subdivision 3.
new text end

new text begin For purposes of statutory cross-reference, a levy made
according to this subdivision shall be construed to be the levy
made according to subdivision 3b.
new text end

Sec. 36.

Minnesota Statutes 2004, section 126C.13,
subdivision 4, is amended to read:


Subd. 4.

General education aid.

(a) deleted text begin For fiscal year
2004, a district's general education aid is the sum of the
following amounts:
deleted text end

deleted text begin (1) general education revenue;
deleted text end

deleted text begin (2) shared time aid according to section 126C.01,
subdivision 7;
deleted text end

deleted text begin (3) referendum aid according to section 126C.17; and
deleted text end

deleted text begin (4) online learning aid according to section 126C.24.
deleted text end

deleted text begin (b) deleted text end For fiscal deleted text begin year deleted text end new text begin years new text end 2005 and deleted text begin later deleted text end new text begin 2006new text end , a
district's general education aid is the sum of the following
amounts:

(1) general education revenue, excluding equity revenue,
total operating capital, and transition revenue;

(2) operating capital aid according to section 126C.10,
subdivision 13b;

(3) equity aid according to section 126C.10, subdivision
30;

(4) transition aid according to section 126C.10,
subdivision 33;

(5) shared time aid according to section 126C.01,
subdivision 7;

(6) referendum aid according to section 126C.17; and

(7) online learning aid according to section deleted text begin 126C.24
deleted text end new text begin 124D.0962new text end .

new text begin (b) For fiscal year 2007 and later, a district's general
education aid is the sum of the following amounts:
new text end

new text begin (1) the product of:
new text end

new text begin (i) the difference between the general education revenue
and the consolidated levy; times
new text end

new text begin (ii) the ratio of the actual amount levied to the permitted
levy;
new text end

new text begin (2) shared time aid according to section 126C.01,
subdivision 7;
new text end

new text begin (3) referendum aid according to section 126C.17; and
new text end

new text begin (4) online learning aid according to section 126C.24.
new text end

Sec. 37.

Minnesota Statutes 2004, section 126C.17,
subdivision 1, is amended to read:


Subdivision 1.

Referendum allowance.

(a) For fiscal year
deleted text begin 2003 deleted text end new text begin 2006 new text end and later, a district's initial referendum revenue
allowance equals the sum of the allowance under section 126C.16,
subdivision 2, plus any additional allowance per resident
marginal cost pupil unit authorized under subdivision 9 before
May 1, 2001, for fiscal year 2002 and later, plus the referendum
conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the
reduction must be computed separately for each authority. The
reduction must be applied first to the referendum conversion
allowance and next to the authority with the earliest expiration
date. A district's initial referendum revenue allowance may not
be less than zero.

(b) deleted text begin For fiscal year 2003, a district's referendum revenue
allowance equals the initial referendum allowance plus any
additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and
December 30, 2001, for fiscal year 2003 and later.
deleted text end

deleted text begin (c) deleted text end For fiscal year deleted text begin 2004 and later deleted text end new text begin 2006new text end , a district's
referendum revenue allowance equals the sum of:

(1) the product of (i) the ratio of the resident marginal
cost pupil units the district would have counted for fiscal year
2004 under Minnesota Statutes 2002, section 126C.05, to the
district's resident marginal cost pupil units for fiscal year
2004, times (ii) the initial referendum allowance plus any
additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and May
30, 2003, for fiscal year 2003 and later, plus

(2) any additional allowance per resident marginal cost
pupil unit authorized under subdivision 9 after May 30, 2003,
for fiscal year 2005 and later.

new text begin (c) For fiscal year 2007 and later, a district's referendum
revenue allowance equals the sum of: (1) the referendum
allowance the district would have received for fiscal year 2007
and later under Minnesota Statutes 2004, section 126C.17,
subdivision 1, paragraph (c), based on elections held under
subdivision 9, before May 30, 2005, plus any additional
allowance per resident pupil unit authorized under subdivision 9
after May 30, 2005, plus the referendum conversion allowance
approved under subdivision 13.
new text end

Sec. 38.

Minnesota Statutes 2004, section 126C.17,
subdivision 2, is amended to read:


Subd. 2.

Referendum allowance limit.

(a) deleted text begin Notwithstanding
subdivision 1, for fiscal year 2003, a district's referendum
allowance must not exceed the greater of:
deleted text end

deleted text begin (1) the sum of a district's referendum allowance for fiscal
year 1994 times 1.162 plus its referendum conversion allowance
for fiscal year 2003, minus $415;
deleted text end

deleted text begin (2) 18.2 percent of the formula allowance;
deleted text end

deleted text begin (3) for a newly reorganized district created on July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization, minus $415; or
deleted text end

deleted text begin (4) for a newly reorganized district created after July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization.
deleted text end

deleted text begin (b) deleted text end Notwithstanding subdivision 1, for fiscal year 2004 and
later, a district's referendum allowance must not exceed the
greater of:

(1) the sum of: (i) a district's referendum allowance for
fiscal year 1994 times 1.177 times the annual inflationary
increase as calculated under paragraph deleted text begin (c) deleted text end new text begin (b) new text end plus (ii) its
referendum conversion allowance for fiscal year 2003, minus
(iii) $415;

(2) the greater of (i) 18.6 percent of the formula
allowance or (ii) $855.79 times the annual inflationary increase
as calculated under paragraph deleted text begin (c) deleted text end new text begin (b)new text end ; or

(3) for a newly reorganized district created after July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization.

deleted text begin (c) deleted text end new text begin (b) new text end For purposes of this subdivision, for fiscal year
2005 and later, "inflationary increase" means one plus the
percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor
Standards, for the current fiscal year to fiscal year 2004. For
fiscal years 2009 and later, for purposes of paragraph (b),
clause (1), the inflationary increase equals the inflationary
increase for fiscal year 2008 plus one-fourth of the percentage
increase in the formula allowance for that year compared with
the formula allowance for fiscal year 2008.

Sec. 39.

Minnesota Statutes 2004, section 126C.17,
subdivision 5, is amended to read:


Subd. 5.

Referendum equalization revenue.

(a) For fiscal
year 2003 and later, a district's referendum equalization
revenue equals the sum of the first tier referendum equalization
revenue and the second tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue
equals the district's first tier referendum equalization
allowance times the district's resident marginal cost pupil
units for that year.

(c) deleted text begin For fiscal years 2003 and 2004, a district's first tier
referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $126.
deleted text end For fiscal year 2005, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $405. For fiscal
year 2006 deleted text begin and laterdeleted text end , a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $500. new text begin For fiscal
year 2007 and later, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $524.
new text end

(d) A district's second tier referendum equalization
revenue equals the district's second tier referendum
equalization allowance times the district's resident marginal
cost pupil units for that year.

(e) A district's second tier referendum equalization
allowance equals the lesser of the district's referendum
allowance under subdivision 1 or 18.6 percent of the formula
allowance, minus the district's first tier referendum
equalization allowance.

(f) Notwithstanding paragraph (e), the second tier
referendum allowance for a district qualifying for secondary
sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision
8, equals the district's referendum allowance under subdivision
1 minus the district's first tier referendum equalization
allowance.

Sec. 40.

Minnesota Statutes 2004, section 126C.17,
subdivision 9, is amended to read:


Subd. 9.

Referendum revenue.

(a) The revenue authorized
by section 126C.10, subdivision 1, may be increased in the
amount approved by the voters of the district at a referendum
called for the purpose. The referendum may be called by the
board or shall be called by the board upon written petition of
qualified voters of the district. The referendum must be
conducted one or two calendar years before the increased levy
authority, if approved, first becomes payable. Only one
election to approve an increase may be held in a calendar year.
Unless the referendum is conducted by mail under paragraph (g),
the referendum must be held on the first Tuesday after the first
Monday in November. The ballot must state the maximum amount of
the increased revenue per resident marginal cost pupil unit, the
estimated referendum tax rate as a percentage of referendum
market value in the first year it is to be levied, and that the
revenue must be used to finance school operations. The ballot
may state a schedule, determined by the board, of increased
revenue per resident marginal cost pupil unit that differs from
year to year over the number of years for which the increased
revenue is authorized. deleted text begin If the ballot contains a schedule
showing different amounts, it must also indicate the estimated
referendum tax rate as a percent of referendum market value for
the amount specified for the first year and for the maximum
amount specified in the schedule.
deleted text end The ballot may state that
existing referendum levy authority is expiring. In this case,
the ballot may also compare the proposed levy authority to the
existing expiring levy authority, and express the proposed
increase as the amount, if any, over the expiring referendum
levy authority. The ballot must designate the specific number
of years, not to exceed ten, for which the referendum
authorization applies. new text begin The ballot, including a ballot on the
question to revoke or reduce the increased revenue amount under
paragraph (c), must abbreviate the term "per resident marginal
cost pupil unit" as "per pupil."
new text end The notice required under
section 275.60 may be modified to read, in cases of renewing
existing levies:

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

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

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

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

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

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

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

(c) A referendum on the question of revoking or reducing
the increased revenue amount authorized pursuant to paragraph
(a) may be called by the board and shall be called by the board
upon the written petition of qualified voters of the district.
A referendum to revoke or reduce the revenue amount must state
the amount per resident marginal cost pupil unit by which the
authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be
available to the school district at least once before it is
subject to a referendum on its revocation or reduction for
subsequent years. Only one revocation or reduction referendum
may be held to revoke or reduce referendum revenue for any
specific year and for years thereafter.

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

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

(f) At least 15 days before the day of the referendum, the
district must submit a copy of the notice required under
paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days
after the results of the referendum have been certified by the
board, or in the case of a recount, the certification of the
results of the recount by the canvassing board, the district
must notify the commissioner of the results of the referendum.

Sec. 41.

Minnesota Statutes 2004, section 126C.17,
subdivision 13, is amended to read:


Subd. 13.

Referendum conversion allowance.

(a) A school
district that received supplemental or transition revenue in
fiscal year 2002 may convert its supplemental revenue conversion
allowance and transition revenue conversion allowance to
additional referendum allowance under subdivision 1 for fiscal
year 2003 and thereafter. A majority of the school board must
approve the conversion at a public meeting before November 1,
2001. For a district with other referendum authority, the
referendum conversion allowance approved by the board continues
until the portion of the district's other referendum authority
with the earliest expiration date after June 30, 2006, expires.
For a district with no other referendum authority, the
referendum conversion allowance approved by the board continues
until June 30, 2012.

(b) A school district that received transition revenue in
fiscal year 2004 may convert deleted text begin all or part of its transition
revenue to referendum revenue with voter approval in a
referendum called for the purpose. The referendum must be held
in accordance with subdivision 9, except that the ballot may
state that existing transition revenue authority is being
canceled or is expiring. In this case, the ballot shall compare
the proposed referendum allowance to the canceled or expiring
transition revenue allowance. For purposes of this comparison,
the canceled or expiring transition revenue allowance per
adjusted marginal cost pupil unit shall be converted to an
allowance per resident marginal cost pupil unit based on the
district's ratio of adjusted marginal cost pupil units to
resident marginal cost pupil units for the preceding fiscal
year. The referendum must be held on the first Tuesday after
the first Monday in November. The notice required under section
275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT
QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
Elections under this paragraph must be held in 2007 or
earlier.
deleted text end new text begin its transition revenue 2004 conversion allowance to
additional referendum allowance under subdivision 1 for fiscal
year 2007 and thereafter. A majority of the school board must
approve the conversion at a public meeting before November 1,
2005. For a district with other referendum authority, as of
July 1, 2005, that extends beyond June 30, 2010, the referendum
conversion allowance approved by the board under this paragraph
continues until the portion of the district's other referendum
authority, as of July 1, 2005, with the earliest expiration date
after June 30, 2010, expires. For a district with no other
referendum authority, as of July 1, 2005, that extends beyond
June 30, 2010, the referendum conversion allowance approved by
the board continues until June 30, 2016.
new text end

Sec. 42.

Minnesota Statutes 2004, section 126C.21,
subdivision 4, is amended to read:


Subd. 4.

Taconite deductions.

deleted text begin (1) Notwithstanding any
provisions of any other law to the contrary, the adjusted net
tax capacity used in calculating general education aid may
include only that property that is currently taxable in the
district.
deleted text end

deleted text begin (2) deleted text end For districts that deleted text begin received payments deleted text end new text begin have revenue new text end under
sections 298.018; 298.225; new text begin 229.24 to new text end 298.28new text begin , excluding 298.26
and 298.28, subdivision 4, paragraph (d)
new text end ; 298.34 to 298.39;
298.391 to 298.396; deleted text begin and deleted text end 298.405new text begin ; and 477A.15new text end , any law imposing a
tax upon severed mineral values; deleted text begin or recognized revenue under
section 477A.15;
deleted text end the general education aid must be reduced in
the final adjustment payment by new text begin (1) new text end the deleted text begin difference between the
dollar
deleted text end amount of the deleted text begin payments received deleted text end new text begin revenue recognized
new text end pursuant to those sectionsdeleted text begin , or revenue recognized under section
477A.15 in
deleted text end new text begin for new text end the fiscal year to which the final adjustment is
attributable deleted text begin and deleted text end new text begin , less (2) new text end the amount that was calculated,
pursuant to section 126C.48, subdivision 8, as a reduction of
the levy attributable to the fiscal year to which the final
adjustment is attributable. If the final adjustment of a
district's general education aid for a fiscal year is a negative
amount because of this deleted text begin clause deleted text end new text begin subdivisionnew text end , the next fiscal
year's general education aid to that district must be reduced by
this negative amount in the following manner: there must be
withheld from each scheduled general education aid payment due
the district in such fiscal year, 15 percent of the total
negative amount, until the total negative amount has been
withheld. The amount reduced from general education aid
pursuant to this deleted text begin clause deleted text end new text begin subdivision new text end must deleted text begin be recognized as deleted text end new text begin reduce
new text end revenue in the fiscal year to which the final adjustment payment
is attributable.

Sec. 43.

Minnesota Statutes 2004, section 126C.48,
subdivision 2, is amended to read:


Subd. 2.

Notice to commissioner; forms.

By October 7 of
each year each district must notify the commissioner of the
proposed levies in compliance with the levy limitations of this
chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A,
and 136D. By January deleted text begin 15 deleted text end new text begin 7 new text end of each year each district must
notify the commissioner of the final levies certified. The
commissioner shall prescribe the form of these notifications and
may request any additional information necessary to compute
certified levy amounts.

Sec. 44.

Minnesota Statutes 2004, section 126C.48,
subdivision 8, is amended to read:


Subd. 8.

Taconite payment and other reductions.

(1)
Reductions in levies pursuant to subdivision 1 must be made
prior to the reductions in clause (2).

(2) Notwithstanding any other law to the contrary,
districts deleted text begin which received payments deleted text end new text begin that have revenue new text end pursuant to
sections 298.018; 298.225; new text begin 298.24 to new text end 298.28, except an amount
distributed under deleted text begin section deleted text end new text begin sections 298.26;new text end 298.28, subdivision
4, deleted text begin paragraph deleted text end new text begin paragraphs new text end (c), clause (ii)new text begin , and (d)new text end ; 298.34 to
298.39; 298.391 to 298.396; 298.405; new text begin 477A.15;new text end and any law
imposing a tax upon severed mineral valuesdeleted text begin ; or recognized
revenue under section 477A.15 must not include a portion of
these aids in their permissible levies pursuant to those
sections, but instead
deleted text end must reduce the deleted text begin permissible deleted text end levies
authorized by this chapter and chapters 120B, 122A, 123A, 123B,
124A, 124D, 125A, and 127A by deleted text begin the greater of the following:deleted text end new text begin 95
percent of the previous year's revenue specified under this
clause.
new text end

deleted text begin (a) an amount equal to 50 percent of the total dollar
amount of the payments received pursuant to those sections or
revenue recognized under section 477A.15 in the previous fiscal
year; or
deleted text end

deleted text begin (b) an amount equal to the total dollar amount of the
payments received pursuant to those sections or revenue
recognized under section 477A.15 in the previous fiscal year
less the product of the same dollar amount of payments or
revenue times five percent.
deleted text end

deleted text begin For levy year 2002 only, 77 percent of the amounts
distributed under section 298.225 and 298.28, and 100 percent of
the amounts distributed under sections 298.018; 298.34 to
298.39; 298.391 to 298.396; 298.405; and any law imposing a tax
upon severed mineral values, or recognized revenue under section
477A.15, shall be used for purposes of the calculations under
this paragraph. For levy year 2003 only, the levy reductions
under this subdivision must be calculated as if section 298.28,
subdivision 4, paragraph (f), did not apply for the 2003
distribution.
deleted text end

(3) The amount of any voter approved referendum, facilities
down payment, and debt levies shall not be reduced by more than
50 percent under this subdivision. In administering this
paragraph, the commissioner shall first reduce the nonvoter
approved levies of a district; then, if any payments, severed
mineral value tax revenue or recognized revenue under paragraph
(2) remains, the commissioner shall reduce any voter approved
referendum levies authorized under section 126C.17; then, if any
payments, severed mineral value tax revenue or recognized
revenue under paragraph (2) remains, the commissioner shall
reduce any voter approved facilities down payment levies
authorized under section 123B.63 and then, if any payments,
severed mineral value tax revenue or recognized revenue under
paragraph (2) remains, the commissioner shall reduce any voter
approved debt levies.

(4) Before computing the reduction pursuant to this
subdivision of the health and safety levy authorized by sections
123B.57 and 126C.40, subdivision 5, the commissioner shall
ascertain from each affected school district the amount it
proposes to levy under each section or subdivision. The
reduction shall be computed on the basis of the amount so
ascertained.

(5) To the extent the levy reduction calculated under
paragraph (2) exceeds the limitation in paragraph (3), an amount
equal to the excess must be distributed from the school
district's distribution under sections 298.225, 298.28, and
477A.15 in the following year to the cities and townships within
the school district in the proportion that their taxable net tax
capacity within the school district bears to the taxable net tax
capacity of the school district for property taxes payable in
the year prior to distribution. No city or township shall
receive a distribution greater than its levy for taxes payable
in the year prior to distribution. The commissioner of revenue
shall certify the distributions of cities and towns under this
paragraph to the county auditor by September 30 of the year
preceding distribution. The county auditor shall reduce the
proposed and final levies of cities and towns receiving
distributions by the amount of their distribution.
Distributions to the cities and towns shall be made at the times
provided under section 298.27.

Sec. 45.

Minnesota Statutes 2004, section 127A.45,
subdivision 11, is amended to read:


Subd. 11.

Payment percentage for reimbursement aids.

One
hundred percent of the aid for the previous fiscal year must be
paid in the current year for the following aids:
new text begin telecommunications/Internet access equity aid according to
section 125B.26,
new text end special education special pupil aid according
to section 125A.75, subdivision 3, aid for litigation costs
according to section 125A.75, subdivision 8, aid for
court-placed special education expenses according to section
125A.79, subdivision 4, and aid for special education
out-of-state tuition according to section 125A.79, subdivision 8
new text begin and shared time aid according to section 126C.01, subdivision 7new text end .

Sec. 46.

Minnesota Statutes 2004, section 127A.47,
subdivision 8, is amended to read:


Subd. 8.

Charter schools.

(a) The general education aid
for districts must be adjusted for each pupil attending a
charter school under section 124D.10. The adjustments must be
made according to this subdivision.

(b) General education aid paid to a district in which a
charter school not providing transportation according to section
124D.10, subdivision 16, is located must be increased by an
amount equal to the product of: (1) the sum of an amount equal
to the product of the formula allowance according to section
126C.10, subdivision 2, times .0485 new text begin for fiscal years 2005 and
2006 and times .0458 for fiscal year 2007 and later
new text end , plus the
transportation sparsity allowance for the district; times (2)
the pupil units attributable to the pupil.

Sec. 47.

Minnesota Statutes 2004, section 127A.49,
subdivision 2, is amended to read:


Subd. 2.

Abatements.

Whenever by virtue of chapter 278,
sections 270.07, 375.192, or otherwise, the net tax capacity of
any district for any taxable year is changed after the taxes for
that year have been spread by the county auditor and the local
tax rate as determined by the county auditor based upon the
original net tax capacity is applied upon the changed net tax
capacities, the county auditor shall, prior to February 1 of
each year, certify to the commissioner of education the amount
of any resulting net revenue loss that accrued to the district
during the preceding year. Each year, the commissioner shall
pay an abatement adjustment to the district in an amount
calculated according to the provisions of this subdivision.
This amount shall be deducted from the amount of the levy
authorized by section 126C.46. The amount of the abatement
adjustment must be the product of:

(1) the net revenue loss as certified by the county
auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy
in the new text begin third new text end preceding year according to the following:

(A) section 123B.57, if the district received health and
safety aid according to that section for the second preceding
year;

(B) section 124D.20, if the district received aid for
community education programs according to that section for the
second preceding year;

(C) section 124D.135, subdivision 3, if the district
received early childhood family education aid according to
section 124D.135 for the second preceding year; and

(D) section 126C.17, subdivision 6, if the district
received referendum equalization aid according to that section
for the second preceding year; to

(ii) the total amount of the district's certified levy in
the new text begin third new text end preceding December, plus or minus auditor's
adjustments.

Sec. 48.

Minnesota Statutes 2004, section 127A.49,
subdivision 3, is amended to read:


Subd. 3.

Excess tax increment.

(a) If a return of excess
tax increment is made to a district pursuant to deleted text begin section deleted text end new text begin sections
new text end 469.176, subdivision 2, new text begin and 469.177, subdivision 9,new text end or upon
decertification of a tax increment district, the school
district's aid and levy limitations must be adjusted for the
fiscal year in which the excess tax increment is paid under the
provisions of this subdivision.

(b) An amount must be subtracted from the district's aid
for the current fiscal year equal to the product of:

(1) the amount of the payment of excess tax increment to
the district, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy
for the fiscal year in which the excess tax increment is paid
according to the following:

(A) section 123B.57, if the district received health and
safety aid according to that section for the second preceding
year;

(B) section 124D.20, if the district received aid for
community education programs according to that section for the
second preceding year;

(C) section 124D.135, subdivision 3, if the district
received early childhood family education aid according to
section 124D.135 for the second preceding year; and

(D) section 126C.17, subdivision 6, if the district
received referendum equalization aid according to that section
for the second preceding year; to

(ii) the total amount of the district's certified levy for
the fiscal year, plus or minus auditor's adjustments.

(c) An amount must be subtracted from the school district's
levy limitation for the next levy certified equal to the
difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision
cannot be made to the aid for the fiscal year specified or to
the levy specified, the reductions must be made from aid for
subsequent fiscal years, and from subsequent levies. The school
district must use the payment of excess tax increment to replace
the aid and levy revenue reduced under this subdivision.

(d) This subdivision applies only to the total amount of
excess increments received by a district for a calendar year
that exceeds $25,000.

Sec. 49.

Minnesota Statutes 2004, section 275.14, is
amended to read:


275.14 CENSUS.

deleted text begin For the purposes of sections 275.124 to 275.16, the
population of a city shall be that established by the last
federal census, by a special census taken by the United States
Bureau of the Census, by an estimate made by the Metropolitan
Council, or by the state demographer made according to section
4A.02, whichever has the latest stated date of count or
estimate, before July 2 of the current levy year.
deleted text end The
population of a school district must be as certified by the
Department of Education from the most recent federal census. In
any year in which no federal census is taken pursuant to law in
any school district affected by sections deleted text begin 275.124 to
275.16
deleted text end new text begin 124D.20 and 124D.531 new text end a population estimate may be made
and submitted to the state demographer for approval as
hereinafter provided. The school board of a school district, in
case it desires a population estimate, shall pass a resolution
by July 1 containing a current estimate of the population of the
school district and shall submit the resolution to the state
demographer. The resolution shall describe the criteria on
which the estimate is based and shall be in a form and
accompanied by the data prescribed by the state demographer.
The state demographer shall determine whether or not the
criteria and process described in the resolution provide a
reasonable basis for the population estimate and shall inform
the school district of that determination within 30 days of
receipt of the resolution. If the state demographer determines
that the criteria and process described in the resolution do not
provide a reasonable basis for the population estimate, the
resolution shall be of no effect. If the state demographer
determines that the criteria and process do provide a reasonable
basis for the population estimate, the estimate shall be treated
as the population of the school district for the purposes of
sections deleted text begin 275.124 to 275.16 deleted text end new text begin 124D.20 and 124D.531 new text end until the
population of the school district has been established by the
next federal census or until a more current population estimate
is prepared and approved as provided herein, whichever occurs
first. The state demographer shall establish guidelines for
acceptable population estimation criteria and processes. The
state demographer shall issue advisory opinions upon request in
writing to cities or school districts as to proposed criteria
and processes prior to their implementation in an estimation.
The advisory opinion shall be final and binding upon the
demographer unless the demographer can show cause why it should
not be final and binding.

In the event that a census tract employed in taking a
federal or local census overlaps two or more school districts,
the county auditor shall, on the basis of the best information
available, allocate the population of said census tract to the
school districts involved.

deleted text begin The term "council," as used in sections 275.124 to 275.16,
means any board or body, whether composed of one or more
branches, authorized to make ordinances for the government of a
city within this state.
deleted text end

Sec. 50.

Minnesota Statutes 2004, section 275.16, is
amended to read:


275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.

If any such municipality shall return to the county auditor
a levy greater than permitted by chapters 123A, 123B, new text begin 124D,
new text end 126C, new text begin and new text end 136C, deleted text begin and 136D,deleted text end sections 275.124 to 275.16, and 275.70
to 275.74, such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit;
provided, if such levy shall include any levy for the payment of
bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the
remainder of the levies shall be reduced so that the total
thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will
permit.

Sec. 51.

Minnesota Statutes 2004, section 469.177,
subdivision 9, is amended to read:


Subd. 9.

Distributions of excess taxes on captured net
tax capacity.

(a) If the amount of tax paid on captured net tax
capacity exceeds the amount of tax increment, the county auditor
shall distribute the excess to the municipality, county, and
school district as follows: each governmental unit's share of
the excess equals

(1) the total amount of the excess for the tax increment
financing district, multiplied by

(2) a fraction, the numerator of which is the current local
tax rate of the governmental unit less the governmental unit's
local tax rate for the year the original local tax rate for the
district was certified (in no case may this amount be less than
zero) and the denominator of which is the sum of the numerators
for the municipality, county, and school district.

If the entire increase in the local tax rate is attributable to
a taxing district, other than the municipality, county, or
school district, then the excess must be distributed to the
municipality, county, and school district in proportion to their
respective local tax rates.

(b) The amounts distributed shall be deducted in computing
the levy limits of the taxing district for the succeeding
taxable year. deleted text begin In the case of a school district, only the
proportion of the excess taxes attributable to unequalized
levies that are subject to a fixed dollar amount levy limit
shall be deducted from the levy limit.
deleted text end

(c) In the case of distributions to a school district deleted text begin that
are attributable to state equalized levies
deleted text end , the county auditor
shall report amounts distributed to the commissioner of
education in the same manner as provided for excess increments
under section 469.176, subdivision 2, and the distribution shall
be deducted from the school district's state aid payments new text begin and
levy limitation according to section 127A.49, subdivision 3
new text end .

Sec. 52. 2005 S.F. No. 1879, article 3, section 3,
subdivision 2, if enacted, is amended to read:

Subd. 2.

General education aid.

For general education
aid under Minnesota Statutes, section 126C.13, subdivision 4:

$ deleted text begin 5,012,148,000 deleted text end new text begin 5,215,775,000new text end ..... 2006

$ deleted text begin 5,007,512,000 deleted text end new text begin 5,419,316,000new text end ..... 2007

The 2006 appropriation includes $784,978,000 for 2005 and
$ deleted text begin 4,227,170,000 deleted text end new text begin 4,430,797,000 new text end for 2006.

The 2007 appropriation includes $ deleted text begin 782,399,000 deleted text end new text begin 825,190,000
new text end for 2006 and $ deleted text begin 4,225,113,000 deleted text end new text begin 4,594,126,000 new text end for 2007.

Sec. 53. 2005 S.F. No. 1879, article 3, section 3,
subdivision 3, if enacted, is amended to read:

Subd. 3.

Referendum tax base replacement aid.

For
referendum tax base replacement aid under Minnesota Statutes,
section 126C.17, subdivision 7a:

$8,704,000 ..... 2006

$ deleted text begin 8,704,000 deleted text end new text begin 8,706,000new text end ..... 2007

The 2006 appropriation includes $1,366,000 for 2005 and
$7,338,000 for 2006.

The 2007 appropriation includes $1,366,000 for 2006 and
$ deleted text begin 7,338,000 deleted text end new text begin 7,340,000 new text end for 2007.

Sec. 54. 2005 S.F. No. 1879, article 3, section 3,
subdivision 7, if enacted, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

For nonpublic
pupil education aid under Minnesota Statutes, sections 123B.40
to 123B.43 and 123B.87:

$ deleted text begin 15,174,000 deleted text end new text begin 15,817,000new text end ..... 2006

$ deleted text begin 15,976,000 deleted text end new text begin 17,426,000new text end ..... 2007

The 2006 appropriation includes $2,305,000 for 2005 and
$ deleted text begin 12,869,000 deleted text end new text begin 13,512,000 new text end for 2006.

The 2007 appropriation includes $ deleted text begin 2,396,000 deleted text end new text begin 2,516,000 new text end for
2006 and $ deleted text begin 13,580,000 deleted text end new text begin 14,910,000 new text end for 2007.

Sec. 55. 2005 S.F. No. 1879, article 3, section 3,
subdivision 8, if enacted, is amended to read:

Subd. 8.

Nonpublic pupil transportation aid.

For
nonpublic pupil transportation aid under Minnesota Statutes,
section 123B.92, subdivision 9:

$ deleted text begin 20,758,000 deleted text end new text begin 21,633,000new text end ..... 2006

$ deleted text begin 21,446,000 deleted text end new text begin 23,390,000new text end ..... 2007

The 2006 appropriation includes $3,274,000 for 2005 and
$ deleted text begin 17,484,000 deleted text end new text begin 18,359,000 new text end for 2006.

The 2007 appropriation includes $ deleted text begin 3,256,000 deleted text end new text begin 3,418,000 new text end for
2006 and $ deleted text begin 18,190,000 deleted text end new text begin 19,972,000 new text end for 2007.

Sec. 56. new text begin FOUR-YEAR OLD PREKINDERGARTEN ALLOWANCE.
new text end

new text begin (a) A district's four-year old prekindergarten revenue
equals the sum of (1) the amount of referendum revenue under
Minnesota Statutes, section 126C.17, and general education
revenue, excluding transition revenue, for fiscal year 2004
attributable to pupils four or five years of age on September 1,
2003, enrolled in a prekindergarten program implemented by the
district before July 1, 2003, and reported as kindergarten
pupils under Minnesota Statutes, section 126C.05, subdivision 1,
for fiscal year 2004, plus (2) the amount of compensatory
education revenue under Minnesota Statutes, section 126C.05,
subdivision 3, for fiscal year 2005 attributable to pupils four
years of age on September 1, 2003, enrolled in a prekindergarten
program implemented by the district before July 1, 2003, and
reported as kindergarten pupils under Minnesota Statutes,
section 126C.05, subdivision 1, for 2004.
new text end

new text begin (b) A district's four-year old prekindergarten allowance
equals a district's four-year old prekindergarten revenue under
paragraph (a) divided by its 2007 resident marginal cost pupil
units.
new text end

Sec. 57. new text begin TRANSITION REVENUE 2004 CONVERSION ALLOWANCE.
new text end

new text begin (a) A district's transition revenue 2004 conversion
allowance is equal to the sum of (1) the district's fiscal year
2004 transition revenue allowance multiplied by the ratio of its
adjusted marginal cost pupil units to its resident marginal cost
pupil units for the preceding fiscal year, plus (2) its
four-year old prekindergarten allowance multiplied by 0.01.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 126C.17,
subdivision 2, the transition revenue 2004 conversion allowance
is increased by $40 for any school district whose referendum
allowance limit under Minnesota Statutes, section 126C.17,
subdivision 2, does not increase in fiscal year 2007 as a result
of growth, excluding roll-ins, in the formula allowance under
Minnesota Statutes, section 126C.10, subdivision 2, and whose
referendum allowance under Minnesota Statutes, section 126C.17,
subdivision 1, is greater than the formula allowance multiplied
by 18.6 percent. A district that is eligible for sparsity
revenue is not eligible for this additional transition allowance
adjustment.
new text end

Sec. 58. new text begin SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.
new text end

new text begin Subdivision 1. new text end

new text begin Bus loan revenue. new text end

new text begin In fiscal year 2006
only, a school district may receive bus loan revenue equal to up
to $30,000 times the number of Carpenter school buses in its
fleet between March 30, 2003, and March 30, 2004, that have been
determined to have potentially defective welds and are subject
to the limitations imposed by the Department of Public Safety.
A school district that is eligible to receive revenue under this
subdivision must approve a board resolution to receive revenue
according to this section.
new text end

new text begin Subd. 2. new text end

new text begin Levy. new text end

new text begin For taxes payable in 2006 through 2009, a
school district that receives revenue under subdivision 1 must
levy an amount equal to its bus loan revenue times .25.
new text end

new text begin Subd. 3. new text end

new text begin General education revenue withholding. new text end

new text begin For
fiscal years 2007 through 2010, the Department of Education
shall reduce the general education aid under Minnesota Statutes,
section 126C.13, subdivision 4, for each district that receives
revenue under subdivision 1 in an amount equal to the district's
bus loan revenue times .25.
new text end

Sec. 59. new text begin RED LAKE FISCAL YEAR 2005 PUPIL UNITS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.05, the
fiscal year 2005 average daily membership for Independent School
District No. 38, Red Lake, shall be the greater of the amount
that would have been computed if the district's school buildings
had not reopened after March 21, 2005, or the amount computed
using actual data for the entire school year. Notwithstanding
Minnesota Statutes, section 126C.05, subdivision 15, for fiscal
year 2005, learning year pupil units for Independent School
District No. 38, Red Lake, must be calculated using the hours in
excess of the actual number of instructional hours in the
calendar year for the school attended by the student, instead of
the number of hours in excess of 1,020 for a secondary school
pupil.
new text end

Sec. 60. new text begin FISCAL YEARS 2006 AND 2007 DECLINING PUPIL UNIT
AID, RED LAKE.
new text end

new text begin For fiscal years 2006 and 2007 only, Independent School
District No. 38, Red Lake, is eligible for declining pupil unit
aid equal to the greater of zero or the product of the general
education formula allowance times the difference between the
district's adjusted marginal cost pupil units for fiscal year
2005 and the district's adjusted marginal cost pupil units for
that fiscal year. Notwithstanding Minnesota Statutes, section
126C.13, the declining pupil unit aid must be included in
calculating the district's general education aid.
new text end

Sec. 61. new text begin KINDERGARTEN REPORTING.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 120A.05,
subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision
1, pupils four or five years of age on September 1 of the
calendar year in which the school year commences and enrolled in
a prekindergarten program implemented by the district before
July 1, 2003, may be reported as kindergarten pupils under
Minnesota Statutes, section 126C.05, subdivision 1, for fiscal
year 2004 and earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to fiscal year 2004 and
earlier.
new text end

Sec. 62. new text begin TRANSITION REVENUE ADJUSTMENTS.
new text end

new text begin For taxes payable in 2006, a district may levy an amount
equal to the increase in the district's transition levy for
fiscal year 2006 under Minnesota Statutes, section 126C.10,
subdivision 31, paragraph (c).
new text end

Sec. 63. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin School bus loan revenue. new text end

new text begin For school bus loan
revenue under section 58:
new text end

new text begin $3,630,000 new text end new text begin ..... new text end new text begin 2006
new text end

Sec. 64. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, sections 123B.83, subdivision
1; and 126C.42, subdivisions 1 and 4, are repealed.
new text end

new text begin (b) Minnesota Statutes 2004, sections 126C.10, subdivisions
13a, 13b, 29, 30, 31, 32, and 33; and 126C.44, are repealed for
revenue for fiscal year 2007.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2004, section 13.321, is
amended by adding a subdivision to read:


new text begin Subd. 10.new text end

new text begin Teacher data from value-added assessment
model.
new text end

new text begin Data on individual teachers generated from a value-added
assessment model are governed under section 120B.362.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2004, section 120B.02, is
amended to read:


120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous
academic standards for Minnesota's public school students. To
that end, the commissioner shall adopt in rule statewide
academic standards. The commissioner shall not prescribe in
rule or otherwise the delivery system, classroom assessments, or
form of instruction that school sites must use. For purposes of
this chapter, a school site is a separate facility, or a
separate program within a facility that a local school board
recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be
premised on the following:

(1) the rule is intended to raise academic expectations for
students, teachers, and schools;

(2) any state action regarding the rule must evidence
consideration of school district autonomy; and

(3) the Department of Education, with the assistance of
school districts, must make available information about all
state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is
appropriate, comprehensive, and readily understandable.

(c) When fully implemented, the requirements for high
school graduation in Minnesota must require students to deleted text begin pass the
basic skills test requirements and
deleted text end satisfactorily complete, as
determined by the school district, the course credit
requirements under section 120B.024new text begin and:
new text end

new text begin (1) for students enrolled in grade 8 before the 2005-2006
school year, to pass the basic skills test requirements; or
new text end

new text begin (2) for students enrolled in grade 8 in the 2005-2006
school year and later, to pass the Minnesota Comprehensive
Assessments Second Edition (MCA-IIs)
new text end .

(d) The commissioner shall periodically review and report
on the state's assessment process.

(e) School districts are not required to adopt specific
provisions of deleted text begin the Goals 2000 and deleted text end the federal School-to-Work
programs.

Sec. 3.

Minnesota Statutes 2004, section 120B.021,
subdivision 1, is amended to read:


Subdivision 1.

Required academic standards.

The
following subject areas are required for statewide
accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography,
economics, and government and citizenship;

(5) health and physical education, for which locally
developed academic standards apply; and

(6) the arts, for which statewide or locally developed
academic standards apply, as determined by the school district.
Public elementary and middle schools must offer at least three
and require at least two of the following four arts areas:
dance; music; theater; and visual arts. Public high schools
must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater;
and visual arts.

The commissioner must submit proposed standards in science
and social studies to the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards
for language arts, mathematics, and science apply to all public
school students, except the very few students with extreme
cognitive or physical impairments for whom an individualized
education plan team has determined that the required academic
standards are inappropriate. An individualized education plan
team that makes this determination must establish alternative
standards.

A school district, no later than the 2007-2008 school year,
must adopt graduation requirements that meet or exceed state
graduation requirements established in law or rule. A school
district that incorporates these state graduation requirements
before the 2007-2008 school year must provide students who enter
the 9th grade in or before the 2003-2004 school year the
opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students
entered the 9th grade. District efforts to develop, implement,
or improve instruction or curriculum as a result of the
provisions of this section must be consistent with sections
120B.10, 120B.11, and 120B.20.

new text begin At a minimum, school districts must maintain the same
physical education and health education requirements for
students in kindergarten through grade 8 adopted for the
2004-2005 school year through the 2007-2008 school year. Before
a revision of the local health and physical education standards,
a school district must consult the grade-specific benchmarks
developed by the Department of Education's health and physical
education quality teaching network for the six national physical
education standards and the seven national health standards.
new text end

Sec. 4.

Minnesota Statutes 2004, section 120B.021, is
amended by adding a subdivision to read:


new text begin Subd. 1a. new text end

new text begin Rigorous course of study; waiver. new text end

new text begin (a) Upon
receiving a student's application signed by the student's parent
or guardian, a school district, area learning center, or charter
school must declare that a student meets or exceeds a specific
academic standard required for graduation under this section if
the local school board, the school board of the school district
in which the area learning center is located, or the charter
school board of directors determines that the student:
new text end

new text begin (1) is participating in a course of study, including an
advanced placement or international baccalaureate course or
program; a learning opportunity outside the curriculum of the
district, area learning center, or charter school; or an
approved preparatory program for employment or postsecondary
education that is equally or more rigorous than the
corresponding state or local academic standard required by the
district, area learning center, or charter school;
new text end

new text begin (2) would be precluded from participating in the rigorous
course of study, learning opportunity, or preparatory employment
or postsecondary education program if the student were required
to achieve the academic standard to be waived; and
new text end

new text begin (3) satisfactorily completes the requirements for the
rigorous course of study, learning opportunity, or preparatory
employment or postsecondary education program.
new text end

new text begin Consistent with the requirements of this section, the local
school board, the school board of the school district in which
the area learning center is located, or the charter school board
of directors also may formally determine other circumstances in
which to declare that a student meets or exceeds a specific
academic standard that the site requires for graduation under
this section.
new text end

new text begin (b) A student who satisfactorily completes a postsecondary
enrollment options course or program under section 124D.09 is
not required to complete other requirements of the academic
standards corresponding to that specific rigorous course of
study.
new text end

Sec. 5.

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


120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

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

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least new text begin the
mathematical reasoning,
new text end algebra, geometry, statistics, and
probability deleted text begin sufficient to satisfy the academic
standard
deleted text end new text begin identified in the mathematics grades 9, 10, and 11
standards documents
new text end ;

(3) three credits of science, including at least one credit
in biology;

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

(5) one credit in the arts; deleted text begin and
deleted text end

(6) new text begin one-half credit in physical education and one-half
credit in health education; and
new text end

new text begin (7) new text end a minimum of deleted text begin seven deleted text end new text begin six new text end elective course credits.

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

Sec. 6.

Minnesota Statutes 2004, section 120B.11,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this
section and section 120B.10, the following terms have the
meanings given them.

(a) "Instruction" means methods of providing learning
experiences that deleted text begin enables deleted text end new text begin enable new text end a student to meet new text begin state and
district academic standards and
new text end graduation
deleted text begin standards deleted text end new text begin requirementsnew text end .

(b) "Curriculum" means new text begin district or school adopted programs
and
new text end written plans for providing students with learning
experiences that lead to new text begin expected new text end knowledgedeleted text begin ,deleted text end new text begin and new text end skillsdeleted text begin , and
positive attitudes
deleted text end .

Sec. 7.

Minnesota Statutes 2004, section 120B.11,
subdivision 2, is amended to read:


Subd. 2.

Adopting policies.

(a) A school board shall
deleted text begin adopt annually a deleted text end new text begin have in place an adopted new text end written policy that
includes the following:

(1) district goals for instruction deleted text begin and deleted text end new text begin including the use of
best practices, district and school
new text end curriculumnew text begin , and achievement
for all student subgroups
new text end ;

(2) a process for evaluating each student's progress toward
meeting deleted text begin graduation deleted text end new text begin academic new text end standards and identifying the
strengths and weaknesses of instruction and curriculum affecting
students' progress;

(3) a system for periodically reviewing new text begin and evaluating new text end all
instruction and curriculum;

(4) a plan for improving instruction deleted text begin and deleted text end new text begin ,new text end curriculumnew text begin , and
student achievement
new text end ; and

(5) an deleted text begin instruction plan that includes deleted text end education
effectiveness deleted text begin processes developed under deleted text end new text begin plan aligned with
new text end section 122A.625deleted text begin and deleted text end new text begin that new text end integrates instruction, curriculum,
and technology.

Sec. 8.

Minnesota Statutes 2004, section 120B.11,
subdivision 3, is amended to read:


Subd. 3.

deleted text begin instruction and curriculum deleted text end new text begin district new text end advisory
committee.

Each school board shall establish an deleted text begin Instruction and
Curriculum
deleted text end advisory committee to ensure active community
participation in all phases of planning and improving the
instruction and curriculum affecting state deleted text begin graduation deleted text end new text begin and
district academic
new text end standards. A district advisory committee, to
the extent possible, shall reflect the diversity of the district
and its learning sites, and shall include teachers, parents,
support staff, deleted text begin pupils deleted text end new text begin studentsnew text end , and other community residents.
The district may establish building teams as subcommittees of
the district advisory committee under subdivision 4. The
district advisory committee shall recommend to the school
board deleted text begin districtwide education standards deleted text end new text begin rigorous academic
standards, student achievement goals and measures
new text end , assessments,
and program evaluations. Learning sites may expand upon
district evaluations of instruction, curriculum, assessments, or
programs. Whenever possible, parents and other community
residents shall comprise at least two-thirds of advisory
committee members.

Sec. 9.

Minnesota Statutes 2004, section 120B.11,
subdivision 4, is amended to read:


Subd. 4.

Building team.

A school may establish a
building team to develop and implement an education
effectiveness plan to improve instruction deleted text begin and deleted text end new text begin ,new text end curriculumnew text begin , and
student achievement
new text end . The team shall advise the board and the
advisory committee about developing an instruction and
curriculum improvement plan that aligns curriculum, assessment
of student progress in meeting state deleted text begin graduation deleted text end new text begin and district
academic
new text end standards, and instruction.

Sec. 10.

Minnesota Statutes 2004, section 120B.11,
subdivision 5, is amended to read:


Subd. 5.

Report.

(a) By October 1 of each year, the
school board shall use standard statewide reporting procedures
the commissioner develops and adopt a report that includes the
following:

(1) student deleted text begin performance deleted text end new text begin achievement new text end goals for meeting state
deleted text begin graduation deleted text end new text begin academic new text end standards deleted text begin adopted for that yeardeleted text end ;

(2) results of local assessment data, and any additional
test data;

(3) the annual school district improvement plans new text begin including
staff development goals under section 122A.60
new text end ;

(4) information about district and learning site progress
in realizing previously adopted improvement plans; and

(5) the amount and type of revenue attributed to each
education site as defined in section 123B.04.

(b) The school board shall publish the report in the local
newspaper with the largest circulation in the district deleted text begin or deleted text end new text begin ,new text end by
mailnew text begin , or by electronic means such as the district Web site. If
electronic means are used, copies of the report must be made
available to the public on request
new text end . The board shall make a copy
of the report available to the public for inspection. The board
shall send a copy of the report to the commissioner of education
by October 15 of each year.

(c) The title of the report shall contain the name and
number of the school district and read "Annual Report on
Curriculum, Instruction, and Student deleted text begin Performance deleted text end new text begin Achievementnew text end ."
The report must include at least the following information about
advisory committee membership:

(1) the name of each committee member and the date when
that member's term expires;

(2) the method and criteria the school board uses to select
committee members; and

(3) the date by which a community resident must apply to
next serve on the committee.

Sec. 11.

Minnesota Statutes 2004, section 120B.11,
subdivision 8, is amended to read:


Subd. 8.

Biennial evaluation; assessment program.

At
least once every two years, the district report shall include an
evaluation of the district testing programs, according to the
following:

(1) written objectives of the assessment program;

(2) names of tests and grade levels tested;

(3) use of test results; and

(4) deleted text begin implementation of an assurance of mastery program
deleted text end new text begin student achievement results compared to previous yearsnew text end .

Sec. 12.

new text begin [120B.15] GIFTED AND TALENTED STUDENTS
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Gifted and talented students. new text end

new text begin School
districts must adopt guidelines for assessing and identifying
students for participation in gifted and talented programs. The
guidelines should include the use of:
new text end

new text begin (1) multiple and objective criteria; and
new text end

new text begin (2) assessments and procedures that are valid and reliable,
fair, and based on current theory and research.
new text end

new text begin Subd. 2.new text end

new text begin Student access; program content and
development.
new text end

new text begin (a) Gifted and talented programs may include:
new text end

new text begin (1) curriculum aligned with the cognitive, affective,
developmental, and physical needs of gifted and talented
students;
new text end

new text begin (2) articulated prekindergarten through grade 12 learning
experiences;
new text end

new text begin (3) flexible instructional pacing and subject and
grade-based opportunities to accelerate instruction;
new text end

new text begin (4) rigorous content consistent with students' abilities
and social and emotional development;
new text end

new text begin (5) challenging learning experiences focused on problem
solving and advanced reasoning; and
new text end

new text begin (6) differentiated guidance services to nurture students'
social and emotional development.
new text end

new text begin (b) School districts, in collaboration with interested
community members and with technical assistance from the state
Department of Education, may offer gifted and talented programs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 13.

Minnesota Statutes 2004, section 120B.22,
subdivision 1, is amended to read:


Subdivision 1.

Violence prevention curriculum.

(a) The
commissioner of education, in consultation with the
commissioners of health and human services, state minority
councils, battered women's and domestic abuse programs, battered
women's shelters, sexual assault centers, representatives of
religious communities, and the assistant commissioner of the
Office of Drug Policy and Violence Prevention, shall assist
districts on request in developing or implementing a violence
prevention program for students in kindergarten to grade 12 that
can be integrated into existing curriculum. The purpose of the
program is to help students learn how to resolve conflicts
within their families and communities in nonviolent, effective
ways.

(b) Each district is encouraged to integrate into its
existing curriculum a program for violence prevention that
includes at least:

(1) a comprehensive, accurate, and age appropriate
curriculum on violence prevention, nonviolent conflict
resolution, sexual, racial, and cultural
harassment, new text begin self-protection,new text end and student hazing that promotes
equality, respect, understanding, effective communication,
individual responsibility, thoughtful decision making, positive
conflict resolution, useful coping skills, critical thinking,
listening and watching skills, and personal safety;

(2) planning materials, guidelines, and other accurate
information on preventing physical and emotional violence,
identifying and reducing the incidence of sexual, racial, and
cultural harassment, and reducing child abuse and neglect;

(3) a special parent education component of early childhood
family education programs to prevent child abuse and neglect and
to promote positive parenting skills, giving priority to
services and outreach programs for at-risk families;

(4) involvement of parents and other community members,
including the clergy, business representatives, civic leaders,
local elected officials, law enforcement officials, and the
county attorney;

(5) collaboration with local community services, agencies,
and organizations that assist in violence intervention or
prevention, including family-based services, crisis services,
life management skills services, case coordination services,
mental health services, and early intervention services;

(6) collaboration among districts and service cooperatives;

(7) targeting early adolescents for prevention efforts,
especially early adolescents whose personal circumstances may
lead to violent or harassing behavior;

(8) opportunities for teachers to receive in-service
training or attend other programs on strategies or curriculum
designed to assist students in intervening in or preventing
violence in school and at home; and

(9) administrative policies that reflect, and a staff that
models, nonviolent behaviors that do not display or condone
sexual, racial, or cultural harassment or student hazing.

(c) The department may provide assistance at a neutral site
to a nonpublic school participating in a district's program.

Sec. 14.

new text begin [120B.25] AMERICAN HERITAGE EDUCATION.
new text end

new text begin School districts shall permit grade-level instruction for
students to read and study America's founding documents,
including documents that contributed to the foundation or
maintenance of America's representative form of limited
government, the Bill of Rights, our free-market economic system,
and patriotism.
new text end

Sec. 15.

Minnesota Statutes 2004, section 120B.30,
subdivision 1, is amended to read:


Subdivision 1.

Statewide testing.

(a) The commissioner,
with advice from experts with appropriate technical
qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment
system, for each grade level to be tested, state-constructed
tests developed from and aligned with the state's required
academic standards under section 120B.021 and administered
annually to all students in grades 3 through 8 and at the high
school level. A state-developed test in a subject other than
writing, developed after the 2002-2003 school year, must include
both deleted text begin multiple choice deleted text end new text begin machine-scoreable new text end and constructed response
questions. The commissioner shall establish one or more months
during which schools shall administer the tests to students each
school year. new text begin For students enrolled in grade 8 before the
2005-2006 school year,
new text end only Minnesota basic skills tests in
reading, mathematics, and writing shall fulfill students' basic
skills testing requirements for a passing state notation. The
passing scores of the state tests in reading and mathematics are
the equivalent of:

(1) 70 percent correct for students entering grade 9 in
1996; and

(2) 75 percent correct for students entering grade 9 in
1997 and thereafter, as based on the first uniform test
administration of February 1998.

new text begin For students enrolled in grade 8 in the 2005-2006 school
year and later, only the Minnesota Comprehensive Assessments
Second Edition (MCA-IIs) in reading, mathematics, and writing
shall fulfill students' academic standard requirements.
new text end

(b) The third through 8th grade and high school level test
results shall be available to districts for diagnostic purposes
affecting student learning and district instruction and
curriculum, and for establishing educational accountability.
The commissioner must disseminate to the public the test results
upon receiving those results.

(c) State tests must be constructed and aligned with state
academic standards. The testing process and the order of
administration shall be determined by the commissioner. The
statewide results shall be aggregated at the site and district
level, consistent with subdivision 1a.

(d) In addition to the testing and reporting requirements
under this section, the commissioner shall include the following
components in the statewide public reporting system:

(1) uniform statewide testing of all students in grades 3
through 8 and at the high school level that provides exemptions,
only with parent or guardian approval, for those very few
students for whom the student's individual education plan team
under sections 125A.05 and 125A.06, determines that the student
is incapable of taking a statewide test, or for a limited
English proficiency student under section 124D.59, subdivision
2, if the student has been in the United States for fewer than
three years;

(2) educational indicators that can be aggregated and
compared across school districts and across time on a statewide
basis, including average daily attendance, high school
graduation rates, and high school drop-out rates by age and
grade level;

(3) students' scores on the American College Test; and

(4) state results from participation in the National
Assessment of Educational Progress so that the state can
benchmark its performance against the nation and other states,
and, where possible, against other countries, and contribute to
the national effort to monitor achievement.

(e) Districts must report exemptions under paragraph (d),
clause (1), to the commissioner consistent with a format
provided by the commissioner.

Sec. 16.

Minnesota Statutes 2004, section 120B.30,
subdivision 1a, is amended to read:


Subd. 1a.

Statewide and local assessments; results.

(a)
The commissioner must develop deleted text begin language arts deleted text end new text begin readingnew text end ,
mathematics, and science assessments aligned with state academic
standards that districts and sites must use to monitor student
growth toward achieving those standards. The commissioner must
not develop statewide assessments for academic standards in
social studiesnew text begin , health and physical education,new text end and the arts.
The commissioner must require:

(1) annual deleted text begin language arts deleted text end new text begin reading new text end and mathematics
assessments in grades 3 through 8 and at the high school level
for the 2005-2006 school year and later; and

(2) annual science assessments in one grade in the grades 3
through 5 span, the grades 6 through 9 span, and a life sciences
assessment in the grades 10 through 12 span for the 2007-2008
school year and later.

(b) The commissioner must ensure that all statewide tests
administered to elementary and secondary students measure
students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

(c) Reporting of assessment results must:

(1) provide timely, useful, and understandable information
on the performance of individual students, schools, school
districts, and the state;

(2) include, by the 2006-2007 school year, a value-added
component to measure student achievement growth over time; and

(3) new text begin (i) for students enrolled in grade 8 before the
2005-2006 school year,
new text end determine whether students have met the
state's basic skills requirementsnew text begin ; or
new text end

new text begin (ii) for students enrolled in grade 8 in the 2005-2006
school year and later, determine whether students have met the
state's academic standards
new text end .

(d) Consistent with applicable federal law and subdivision
1, paragraph (d), clause (1), the commissioner must include
alternative assessments for the very few students with
disabilities for whom statewide assessments are inappropriate
and for students with limited English proficiency.

(e) A school, school district, and charter school must
administer statewide assessments under this section, as the
assessments become available, to evaluate student progress in
achieving the academic standards. If a state assessment is not
available, a school, school district, and charter school must
determine locally if a student has met the required academic
standards. A school, school district, or charter school may use
a student's performance on a statewide assessment as one of
multiple criteria to determine grade promotion or retention. A
school, school district, or charter school may use a high school
student's performance on a statewide assessment as a percentage
of the student's final grade in a course, or place a student's
assessment score on the student's transcript.

Sec. 17.

Minnesota Statutes 2004, section 120B.30, is
amended by adding a subdivision to read:


new text begin Subd. 4. new text end

new text begin Access to tests. new text end

new text begin The commissioner must adopt
and publish a policy to provide public and parental access for
review of basic skills tests, Minnesota Comprehensive
Assessments, or any other such statewide test and assessment.
Upon receiving a written request, the commissioner must make
available to parents or guardians a copy of their student's
actual answer sheet to the test questions to be reviewed by the
parent.
new text end

Sec. 18.

new text begin [120B.361] VALUE-ADDED ASSESSMENT PROGRAM.
new text end

new text begin (a) The commissioner of education must implement a
value-added assessment program to assist school districts,
public schools, and charter schools in assessing and reporting
students' growth in academic achievement under section 120B.30,
subdivision 1a. The program must use assessments consistent
with paragraph (d) of students' academic achievement to make
longitudinal comparisons of each student's academic growth over
time. School districts, public schools, and charter schools may
apply to the commissioner to participate in the initial trial
program using a form and in the manner the commissioner
prescribes. The commissioner must select program participants
from urban, suburban, and rural areas throughout the state.
new text end

new text begin (b) The commissioner may issue a request for a proposal to
contract with an organization that provides a value-added
assessment model that uses fully adaptive computer-based
assessments that reliably estimates school and school district
effects on students' academic achievement over time. The model
the commissioner selects must use each student's test data
across grades.
new text end

new text begin (c) The contract under paragraph (b) must be consistent
with the definition of "best value" under section 16C.02,
subdivision 4, and may not be executed until the state has
authority to use the assessments described in paragraph (d) for
purposes of the No Child Left Behind Act, Public Law 107-110.
new text end

new text begin (d) In connection with implementation of the value-added
assessment program, the department must request and obtain from
the United States Department of Education authority to use fully
adaptive computer-based assessments that accurately measure
student achievement and growth over time. The assessments must
be aligned with Minnesota standards, use a common scale score
over multiple grades or ages, and be capable of being used for
source data for a growth or value-added model of school
evaluation.
new text end

new text begin (e) In implementing the value-added assessment program, the
commissioner must report assessment result data in a way that
shows the growth trends over time for students in four groups:
new text end

new text begin (1) performing above grade level;
new text end

new text begin (2) performing at grade level;
new text end

new text begin (3) approaching grade-level performance; and
new text end

new text begin (4) performing significantly below grade level.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2004, section 121A.06,
subdivision 2, is amended to read:


Subd. 2.

Reports; content.

deleted text begin By January 1, 1994, the
commissioner, in consultation with the criminal and juvenile
information policy group, shall develop a standardized form to
be used by schools to report incidents involving the use or
possession of a dangerous weapon in school zones.
deleted text end new text begin School
districts must electronically report to the commissioner of
education incidents involving the use or possession of a
dangerous weapon in school zones.
new text end The form deleted text begin shall deleted text end new text begin must new text end include
the following information:

(1) a description of each incident, including a description
of the dangerous weapon involved in the incident;

(2) where, at what time, and under what circumstances the
incident occurred;

(3) information about the offender, other than the
offender's name, including the offender's age; whether the
offender was a student and, if so, where the offender attended
school; and whether the offender was under school expulsion or
suspension at the time of the incident;

(4) information about the victim other than the victim's
name, if any, including the victim's age; whether the victim was
a student and, if so, where the victim attended school; and if
the victim was not a student, whether the victim was employed at
the school;

(5) the cost of the incident to the school and to the
victim; and

(6) the action taken by the school administration to
respond to the incident.

The commissioner deleted text begin also deleted text end shall deleted text begin develop deleted text end new text begin provide new text end an deleted text begin alternative
deleted text end new text begin electronic new text end reporting format that allows school districts to
provide aggregate datadeleted text begin , with an option to use computer
technology to report the data
deleted text end .

Sec. 20.

Minnesota Statutes 2004, section 121A.06,
subdivision 3, is amended to read:


Subd. 3.

Reports; filing requirements.

By deleted text begin February 1 and
deleted text end July deleted text begin 1 deleted text end new text begin 31 new text end of each year, each schoolnew text begin , other than a home-school,
new text end shall report incidents involving the use or possession of a
dangerous weapon in school zones to the commissioner. The
reports new text begin by public schools new text end must be deleted text begin made on the standardized forms
or using the alternative format
deleted text end new text begin submitted using the electronic
reporting system
new text end developed by the commissioner under subdivision
2. The commissioner shall compile the information it receives
from the schools and report it annually to the commissioner of
public safetydeleted text begin , the criminal and juvenile information policy
group,
deleted text end and the legislature.

Sec. 21.

new text begin [121A.0695] SCHOOL BOARD POLICY; PROHIBITING
INTIMIDATION AND BULLYING.
new text end

new text begin Subdivision 1. new text end

new text begin Intimidation or bullying
defined.
new text end

new text begin "Intimidation or bullying" means an intentional
gesture or a written, oral, or physical act or threat that a
reasonable person under the circumstances knows or should know
has the effect of:
new text end

new text begin (1) harming a student;
new text end

new text begin (2) damaging a student's property;
new text end

new text begin (3) placing a student in reasonable fear of harm to the
student's person;
new text end

new text begin (4) placing a student in reasonable fear of damage to the
student's property; or
new text end

new text begin (5) creating a severe or persistent environment of
intimidation or abuse.
new text end

new text begin Subd. 2. new text end

new text begin Model policy. new text end

new text begin The commissioner of education
shall maintain and make available to school boards and other
schools a model policy prohibiting intimidation and bullying
that addresses the requirements of subdivision 3.
new text end

new text begin Subd. 3.new text end

new text begin School board policy.new text end

new text begin Each school board shall
adopt a written policy prohibiting intimidation and bullying of
any student, including, but not limited to, the acts defined in
subdivision 1. The policy must describe the behavior expected
of each student and state the consequences for and the
appropriate remedial action to be taken against the person
acting to intimidate or bully. The policy must include
reporting procedures, including, at a minimum, requiring school
personnel to report student intimidation or bullying incidents
and allowing persons to report incidents anonymously. Each
district must integrate into its violence prevention program
under section 120B.22, if applicable, behavior and expectations
established under this section. Each school must include the
policy in the student handbook on school policies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 22.

new text begin [121A.222] POSSESSION AND USE OF NONPRESCRIPTION
PAIN RELIEVERS BY SECONDARY STUDENTS.
new text end

new text begin A secondary student may possess and use nonprescription
pain relief in a manner consistent with the labeling, if the
district has received a written authorization from the student's
parent permitting the student to self-administer the
medication. The parent must submit written authorization for
the student to self-administer the medication each school year.
The district may revoke a student's privilege to possess and use
nonprescription pain relievers if the district determines that
the student is abusing the privilege.
new text end

Sec. 23.

new text begin [121A.231] COMPREHENSIVE FAMILY LIFE AND
SEXUALITY EDUCATION PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Comprehensive family
life and sexuality education" means education in grades 7
through 12 that:
new text end

new text begin (1) respects community values and encourages family
communication;
new text end

new text begin (2) develops skills in communication, decision making, and
conflict resolution;
new text end

new text begin (3) contributes to healthy relations;
new text end

new text begin (4) provides human development and sexuality education that
is age appropriate and medically accurate;
new text end

new text begin (5) promotes responsible sexual behavior, including an
abstinence-first approach to delaying initiation to sexual
activity that emphasizes abstinence while also including
education about the use of protection and contraception; and
new text end

new text begin (6) promotes individual responsibility.
new text end

new text begin (b) "Age appropriate" refers to topics, messages, and
teaching methods suitable to particular ages or age groups of
children and adolescents, based on developing cognitive,
emotional, and behavioral capacity typical for the age or age
group.
new text end

new text begin (c) "Medically accurate" means verified or supported by
research conducted in compliance with scientific methods and
published in peer-reviewed journals, where appropriate, and
recognized as accurate and objective by professional
organizations and agencies in the relevant field, such as the
federal Centers for Disease Control and Prevention, the American
Public Health Association, the American Academy of Pediatrics,
or the American College of Obstetricians and Gynecologists.
new text end

new text begin Subd. 2. new text end

new text begin Curriculum requirements. new text end

new text begin (a) A school district
may offer and may independently establish policies, procedures,
curriculum, and services for providing comprehensive family life
and sexuality education that is age appropriate and medically
accurate for kindergarten through grade 6.
new text end

new text begin (b) A school district must offer and may independently
establish policies, procedures, curriculum, and services for
providing comprehensive family life and sexuality education that
is age appropriate and medically accurate for grades 7 through
12.
new text end

new text begin Subd. 3. new text end

new text begin Notice and parental options. new text end

new text begin (a) It is the
legislature's intent to encourage pupils to communicate with the
pupils' parents or guardians about human sexuality and to
respect rights of parents or guardians to supervise the parents'
or guardians' children's education on these subjects.
new text end

new text begin (b) Parents or guardians may excuse the parents' or
guardians' children from all or part of a comprehensive family
life and sexuality education program.
new text end

new text begin (c) A school district must establish procedures for
providing parents or guardians reasonable notice with the
following information:
new text end

new text begin (1) if the district is offering a comprehensive family life
and sexuality education program to the parents' or guardians'
child during the course of the year;
new text end

new text begin (2) how the parents or guardians may inspect the written
and audiovisual educational materials used in the program and
the process for inspection;
new text end

new text begin (3) if the program is presented by school district
personnel or outside consultants, and if outside consultants are
used, who they may be; and
new text end

new text begin (4) the right to choose not to have the parents' or
guardians' child participate in the program and the procedure
for exercising that right.
new text end

new text begin (d) A school district must establish procedures for
reasonably restricting the availability of written and
audiovisual educational materials from public view of students
who have been excused from all or part of a comprehensive family
life and sexuality education program at the request of a parent
or guardian.
new text end

Sec. 24.

Minnesota Statutes 2004, section 121A.53, is
amended to read:


121A.53 REPORT TO COMMISSIONER OF EDUCATION.

Subdivision 1.

Exclusions and expulsions.

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

Subd. 2.

Report.

The school board must include state
student identification numbers of affected pupils on all
dismissal reports required by the department. The department
must report annually to the commissioner summary data on the
number of dismissals by age, grade, gender, race, and special
education status of the affected pupils. new text begin All dismissal reports
must be submitted through the department electronic reporting
system.
new text end

Sec. 25.

Minnesota Statutes 2004, section 122A.06,
subdivision 4, is amended to read:


Subd. 4.

Comprehensive, scientifically based reading
instruction.

deleted text begin "Comprehensive, scientifically based reading
instruction" includes instruction and practice in phonemic
awareness, phonics and other word-recognition skills, and guided
oral reading for beginning readers, as well as extensive silent
reading, vocabulary instruction, instruction in comprehension,
and instruction that fosters understanding and higher-order
thinking for readers of all ages and proficiency
levels.
deleted text end new text begin "Comprehensive, scientifically based reading
instruction" includes a program or collection of instructional
practices with demonstrated success in instructing learners and
reliable and valid evidence to support the conclusion that when
these methods are used with learners, learners can be expected
to achieve, at a minimum, satisfactory progress in reading
achievement. The program or collection of practices must
include, at a minimum, instruction in five areas of reading:
phonemic awareness, phonics, fluency, vocabulary, and text
comprehension.
new text end

new text begin Comprehensive, scientifically based reading instruction
also includes and integrates instructional strategies for
continuously assessing and evaluating the learner's reading
progress and needs in order to design and implement ongoing
interventions so that learners of all ages and proficiency
levels can read and comprehend text and apply higher-level
thinking skills.
new text end

Sec. 26.

Minnesota Statutes 2004, section 122A.12,
subdivision 2, is amended to read:


Subd. 2.

Terms; compensation; removal; administrationnew text begin ;
reimbursement
new text end .

new text begin (a) new text end Membership terms, removal of members, and
the filling of membership vacancies are as provided in section
214.09. The terms of the initial board members must be
determined by lot as follows:

(1) three members must be appointed for terms that expire
August 1, 2002;

(2) three members must be appointed for terms that expire
August 1, 2003; and

(3) four members must be appointed for terms that expire
August 1, 2004.

Members shall not receive the daily payment under section
214.09, subdivision 3. The public employer of a member shall
not reduce the member's compensation or benefits for the
member's absence from employment when engaging in the business
of the board. The provision of staff, administrative services,
and office space; the review and processing of complaints; the
setting of fees; the selection and duties of an executive
secretary to serve the board; and other provisions relating to
board operations are as provided in chapter 214. Fiscal year
and reporting requirements are as provided in sections 214.07
and 214.08.

new text begin (b) The board may reimburse local school districts for the
cost of a substitute teacher employed when a regular teacher is
providing professional assistance to the state by serving on the
board or on a committee or task force appointed by the board.
new text end

Sec. 27.

Minnesota Statutes 2004, section 122A.18,
subdivision 2a, is amended to read:


Subd. 2a.

Reading strategies.

(a) All colleges and
universities approved by the Board of Teaching to prepare
persons for classroom teacher licensure must include in their
teacher preparation programs deleted text begin reading best practices that enable
classroom teacher licensure candidates to know how to teach
reading, such as phonics or other
deleted text end research-based best practices
new text begin in reading, consistent with section 122A.06, subdivision 4, that
enable the licensure candidate to know how to teach reading in
the candidate's content areas
new text end .

(b) Board-approved teacher preparation programs for
teachers of elementary education must require instruction in the
application of comprehensive, scientifically based, and balanced
reading instruction programsdeleted text begin .deleted text end new text begin that:
new text end

new text begin (1) teach students to read using foundational knowledge,
practices, and strategies consistent with section 122A.06,
subdivision 4, so that all students will achieve continuous
progress in reading; and
new text end

new text begin (2) teach specialized instruction in reading strategies,
interventions, and remediations that enable students of all ages
and proficiency levels to become proficient readers.
new text end

Sec. 28.

Minnesota Statutes 2004, section 122A.40,
subdivision 5, is amended to read:


Subd. 5.

Probationary period.

(a) The first three
consecutive years of a teacher's first teaching experience in
Minnesota in a single district is deemed to be a probationary
period of employment, and after completion thereof, the
probationary period in each district in which the teacher is
thereafter employed shall be one year. The school board must
adopt a plan for written evaluation of teachers during the
probationary period. Evaluation must occur at least three times
each year for a teacher performing services on 120 or more
school days, at least two times each year for a teacher
performing services on 60 to 119 school days, and at least one
time each year for a teacher performing services on fewer than
60 school days. Days devoted to parent-teacher conferences,
teachers' workshops, and other staff development opportunities
and days on which a teacher is absent from school must not be
included in determining the number of school days on which a
teacher performs services. Except as otherwise provided in
paragraph (b), during the probationary period any annual
contract with any teacher may or may not be renewed as the
school board shall see fit. However, the board must give any
such teacher whose contract it declines to renew for the
following school year written notice to that effect before July
1. If the teacher requests reasons for any nonrenewal of a
teaching contract, the board must give the teacher its reason in
writing, including a statement that appropriate supervision was
furnished describing the nature and the extent of such
supervision furnished the teacher during the employment by the
board, within ten days after receiving such request. The school
board may, after a hearing held upon due notice, discharge a
teacher during the probationary period for cause, effective
immediately, under section 122A.44.

(b) A board must discharge a probationary teacher,
effective immediately, upon receipt of notice under section
122A.20, subdivision 1, paragraph (b), that the teacher's
license has been revoked due to a conviction for child abuse or
sexual abuse.

new text begin (c) A probationary teacher must complete at least 60 days
of teaching service each year during the probationary period.
Days devoted to parent-teacher conferences, teachers' workshops,
and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching
service under this paragraph.
new text end

new text begin (d) A probationary teacher whose first three years of
consecutive employment is interrupted for active military
service and who promptly resumes teaching consistent with
federal reemployment timelines for uniformed service personnel
under United States Code, title 38, section 4312(e), is
considered to have a consecutive teaching experience for
purposes of paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (c) of this section is
effective July 1, 2005. Paragraph (d) of this section is
retroactively effective from September 10, 2001, and applies to
those probationary teachers absent for active military service
beginning on September 10, 2001, or later.
new text end

Sec. 29.

Minnesota Statutes 2004, section 122A.41,
subdivision 2, is amended to read:


Subd. 2.

Probationary period; discharge or demotion.

new text begin (a)
new text end All teachers in the public schools in cities of the first class
during the first three years of consecutive employment shall be
deemed to be in a probationary period of employment during which
period any annual contract with any teacher may, or may not, be
renewed as the school board, after consulting with the peer
review committee charged with evaluating the probationary
teachers under subdivision 3, shall see fit. The school site
management team or the school board if there is no school site
management team, shall adopt a plan for a written evaluation of
teachers during the probationary period according to subdivision
3. Evaluation by the peer review committee charged with
evaluating probationary teachers under subdivision 3 shall occur
at least three times each year for a teacher performing services
on 120 or more school days, at least two times each year for a
teacher performing services on 60 to 119 school days, and at
least one time each year for a teacher performing services on
fewer than 60 school days. Days devoted to parent-teacher
conferences, teachers' workshops, and other staff development
opportunities and days on which a teacher is absent from school
shall not be included in determining the number of school days
on which a teacher performs services. The school board may,
during such probationary period, discharge or demote a teacher
for any of the causes as specified in this code. A written
statement of the cause of such discharge or demotion shall be
given to the teacher by the school board at least 30 days before
such removal or demotion shall become effective, and the teacher
so notified shall have no right of appeal therefrom.

new text begin (b) A probationary teacher must complete at least 60 days
of teaching service each year during the probationary period.
Days devoted to parent-teacher conferences, teachers' workshops,
and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching
service under this paragraph.
new text end

new text begin (c) A probationary teacher whose first three years of
consecutive employment is interrupted for active military
service and who promptly resumes teaching consistent with
federal reemployment timelines for uniformed service personnel
under United States Code, title 38, section 4312(e), is
considered to have a consecutive teaching experience for
purposes of paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) of this section is
effective July 1, 2005. Paragraph (c) of this section is
retroactively effective from September 10, 2001, and applies to
those probationary teachers absent for active military service
beginning on September 10, 2001, or later.
new text end

Sec. 30.

Minnesota Statutes 2004, section 122A.41,
subdivision 5a, is amended to read:


Subd. 5a.

Probationary period for principals hired
internally.

A board and the exclusive representative of the
school principals in the district may negotiate a plan for a
probationary period of up to two school years for licensed
teachers employed by the board who are subsequently employed by
the board as a licensed school principal new text begin or assistant principal
and an additional probationary period of up to two years for
licensed assistant principals employed by the board who are
subsequently employed by the board as a licensed school
principal
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 31.

Minnesota Statutes 2004, section 122A.41,
subdivision 14, is amended to read:


Subd. 14.

Services terminated by discontinuance or lack
of pupils; preference given.

(a) A teacher whose services are
terminated on account of discontinuance of position or lack of
pupils must receive first consideration for other positions in
the district for which that teacher is qualified. In the event
it becomes necessary to discontinue one or more positions, in
making such discontinuance, teachers must be discontinued in any
department in the inverse order in which they were employednew text begin ,
unless a board and the exclusive representative of teachers in
the district negotiate a plan providing otherwise
new text end .

(b) Notwithstanding the provisions of clause (a), a teacher
is not entitled to exercise any seniority when that exercise
results in that teacher being retained by the district in a
field for which the teacher holds only a provisional license, as
defined by the Board of Teaching, unless that exercise of
seniority results in the termination of services, on account of
discontinuance of position or lack of pupils, of another teacher
who also holds a provisional license in the same field. The
provisions of this clause do not apply to vocational education
licenses.

(c) Notwithstanding the provisions of clause (a), a teacher
must not be reinstated to a position in a field in which the
teacher holds only a provisional license, other than a
vocational education license, while another teacher who holds a
nonprovisional license in the same field is available for
reinstatement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 32.

Minnesota Statutes 2004, section 122A.413, is
amended to read:


122A.413 EDUCATIONAL IMPROVEMENT PLAN.

Subdivision 1.

Qualifying plan.

A district may develop
an educational improvement plan for the purpose of qualifying
for deleted text begin alternative teacher compensation aid deleted text end new text begin the professional
compensation initiative
new text end under deleted text begin sections 122A.414 and
122A.415
deleted text end new text begin section 122A.4142new text end . The plan must include measures for
improving school district, school site, teacher, and individual
student performance.

Subd. 2.

Plan components.

The educational improvement
plan must be approved by the school board and have at least
these elements:

(1) assessment and evaluation tools to measure student
performance and progress;

(2) performance goals and benchmarks for improvement;

(3) measures of student attendance and completion rates;

(4) a rigorous professional development systemnew text begin , consistent
with section 122A.60,
new text end that is aligned with educational
improvement, designed to achieve teaching quality improvement,
and consistent with clearly defined research-based standards;

(5) measures of student, family, and community involvement
and satisfaction;

(6) a data system about students and their academic
progress that provides parents and the public with
understandable information; deleted text begin and
deleted text end

(7) a teacher induction and mentoring program for
probationary teachers that provides continuous learning and
sustained teacher supportdeleted text begin . The process for developing the plan
must involve district teachers
deleted text end new text begin ; and
new text end

new text begin (8) substantial teacher participation in developing the
plan, including teachers selected by the exclusive
representative of the teachers
new text end .

Subd. 3.

School site accountability.

A district that
develops a plan under subdivisions 1 and 2 must ensure that each
school site develops a board-approved educational improvement
plan that is aligned with the district educational improvement
plan under subdivision 2 new text begin and developed with teacher
participation consistent with subdivision 2, clause (8)
new text end . While
a site plan must be consistent with the district educational
improvement plan, it may establish performance goals and
benchmarks that meet or exceed those of the district. deleted text begin The
process for developing the plan must involve site teachers.
deleted text end

Sec. 33.

new text begin [122A.4142] PROFESSIONAL COMPENSATION
INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Professional compensation agreement. new text end

new text begin A
school district and the exclusive representative of the teachers
may adopt, by agreement, professional compensation under
subdivision 2 to provide incentives to attract and retain
high-quality teachers and instructional staff, encourage
high-quality teachers to accept difficult assignments, encourage
teachers to improve their knowledge and skills, and support
teachers' roles in improving students' educational achievement.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible to participate
in the professional compensation initiative in fiscal year 2006,
a school district must comply with the conditions stated in
paragraph (b) or with the following conditions:
new text end

new text begin (1) submit to the department a letter of intent executed by
the school district and the exclusive representative of the
teachers to complete planning for and satisfy the conditions for
participation in fiscal year 2007 and later;
new text end

new text begin (2) reserve at least two percent of basic revenue for staff
development purposes consistent with sections 122A.60 and
122A.61, subdivision 1; and
new text end

new text begin (3) commit to spending at least the additional one percent
of basic revenue available through participation in the
professional compensation initiative for staff development
supporting the development of a district educational improvement
plan and site-based educational improvement plan under section
122A.413 and for developing the professional compensation
agreement under this section.
new text end

new text begin (b) To be eligible to participate in the professional
compensation initiative in fiscal year 2007 and later, a school
district must submit to the department:
new text end

new text begin (1) a districtwide or site-based educational improvement
plan as described in section 122A.413; and
new text end

new text begin (2) an executed collective bargaining agreement that
contains at least the following elements:
new text end

new text begin (i) a description of the conditions or actions necessary
for career advancement and additional compensation;
new text end

new text begin (ii) compensation provisions that base at least 60 percent
of any increase in compensation on performance and not on years
of service or the attainment of additional education or
training;
new text end

new text begin (iii) career advancement options for teachers retaining
primary roles in student instruction, including staff
development activities, and for other members of the bargaining
unit;
new text end

new text begin (iv) incentives for teachers' continuous improvement in
content knowledge, pedagogy, and use of best practices;
new text end

new text begin (v) an objective evaluation program, including classroom or
performance observation, that is aligned with the district's or
site's educational improvement plan, and is a component of
determining performance;
new text end

new text begin (vi) provisions preventing any teacher's compensation from
being reduced as a result of implementing professional
compensation for teachers;
new text end

new text begin (vii) provisions enabling any teacher in the district, if
professional compensation for teachers is applied districtwide,
or at a site, if professional compensation for teachers applies
only to a site, to participate in professional compensation for
teachers without limitations by quota or other restrictions;
new text end

new text begin (viii) provisions encouraging collaboration among teachers
rather than competition; and
new text end

new text begin (ix) provisions for participation by all teachers in a
district, all teachers at a site, or at least 25 percent of the
teachers in a district.
new text end

new text begin (c) An agreement may contain different compensation
provisions for separate classifications of employees.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner approval. new text end

new text begin (a) Before concluding a
collective bargaining agreement, a district may submit a
proposed agreement and educational improvement plan for review,
comment, and preliminary approval by the commissioner. If the
plan and agreement are executed in the same form as
preliminarily approved by the commissioner, the plan and
agreement must be approved without further review.
new text end

new text begin (b) The application to the commissioner must contain a
formally adopted collective bargaining agreement, memorandum of
understanding, or other binding agreement that implements the
professional compensation initiative consistent with this
section.
new text end

new text begin (c) The commissioner's approval must be based on the
requirements established in subdivision 2. If the commissioner
does not approve an application, the notice to the school
district must provide details regarding the commissioner's
reason for rejecting the application.
new text end

new text begin Subd. 4. new text end

new text begin Professional compensation revenue. new text end

new text begin (a)
Professional compensation revenue for a school district that
qualifies for participation under subdivision 2, paragraph (a),
equals one percent of basic revenue, under section 126C.10,
subdivision 2.
new text end

new text begin (b) For participation in fiscal year 2007 and later, the
school district's application must be approved by the
commissioner under subdivision 3.
new text end

new text begin (c) Professional compensation revenue for a qualifying
school district, site, or portion of a district or school site
that qualifies for participation under subdivision 2, paragraph
(b), is as follows:
new text end

new text begin (1) for a school district in which the school board and the
exclusive representative of the teachers agree to place all
teachers in the district in the professional compensation for
teachers initiative, revenue equals one percent of the
district's basic revenue for the fiscal year; or if a site only
is participating, the portion of one percent attributable to the
site's number of pupils enrolled on October 1 of the previous
fiscal year; or
new text end

new text begin (2) for a district in which the school board and the
exclusive representative of the teachers agree that at least 25
percent of the district's licensed teachers will participate in
the professional compensation initiative revenue equals one
percent of basic revenue for the fiscal year multiplied by the
percentage of participating teachers.
new text end

new text begin Subd. 5. new text end

new text begin Percentage of teachers. new text end

new text begin For purposes of
subdivision 4, the percentage of teachers participating in the
professional compensation initiative equals the ratio of the
number of licensed teachers who are working at least 60 percent
of a full-time teacher's hours and agree to participate in the
initiative to the total number of licensed teachers who are
working at least 60 percent of a full-time teacher's hours.
new text end

new text begin Subd. 6. new text end

new text begin Revenue timing. new text end

new text begin Districts or sites with
approved applications must receive professional compensation
revenue for each school year that the district or site
participates in the initiative and is in compliance with the
conditions for participation.
new text end

new text begin Subd. 7. new text end

new text begin Basic revenue. new text end

new text begin A school district that qualifies
for participation in the professional compensation initiative
under subdivision 2, paragraph (b), may use the two percent of
basic revenue that would otherwise be reserved under section
122A.61 for compliance with the professional compensation
agreement under this section. If fewer than all of the licensed
teachers in the district participate in the initiative, the
amount of the two percent that may be used for the initiative
equals the two percent multiplied by the percentage of licensed
teachers participating in the initiative.
new text end

new text begin Subd. 8.new text end

new text begin Participation.new text end

new text begin If a district and bargaining
unit do not participate in the professional compensation
initiatives in fiscal year 2006, they may elect to participate
in subsequent years. The requirements for participation in the
first year are the requirements described for fiscal year 2006.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

new text begin [122A.4143] CLOSED CONTRACT.
new text end

new text begin A district and the exclusive representative of the teachers
may agree jointly to reopen a collective bargaining agreement
for the sole purpose of entering into a professional
compensation system consistent with section 122A.4142 and an
educational improvement plan under section 122A.413.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

new text begin [122A.4144] PROFESSIONAL COMPENSATION PILOT SITE
AID.
new text end

new text begin Subdivision 1. new text end

new text begin Aid amount. new text end

new text begin (a) A school district that
received revenue under Minnesota Statutes 2004, section
122A.415, or meets the eligibility conditions of section
122A.4142, subdivision 1, paragraph (b), and submits an
application approved by the commissioner is eligible for
professional compensation pilot site aid. The commissioner must
consider only applications submitted jointly by a school
district and the exclusive representative of the teachers for
participation in the program. The application must contain a
formally adopted collective bargaining agreement, memorandum of
understanding, or other binding agreement that implements a
professional compensation pay system consistent with the
eligibility conditions of section 122A.4142, subdivision 2,
paragraph (b), and includes all teachers in a district, all
teachers at a school site, or at least 25 percent of the
teachers in a district. The commissioner, in approving
applications, may give preference to applications involving
entire districts or sites or to applications that align measures
of teacher performance with student academic achievement and
progress under section 122A.4142.
new text end

new text begin (b) Professional compensation aid for a qualifying school
district, site, or portion of a district or school site is as
follows:
new text end

new text begin (1) for a school district in which the school board and the
exclusive representative of the teachers agree to place all
teachers in the district or at the site on the alternative
compensation schedule, alternative compensation aid equals $150
times the district's or the site's number of pupils enrolled on
October 1 of the previous fiscal year; or
new text end

new text begin (2) for a district in which the school board and the
exclusive representative of the teachers agree that at least 25
percent of the district's licensed teachers will be paid on the
alternative compensation schedule, alternative compensation aid
equals $150 times the percentage of participating teachers times
the district's number of pupils enrolled as of October 1 of the
previous fiscal year.
new text end

new text begin Subd. 2. new text end

new text begin Percentage of teachers. new text end

new text begin For purposes of this
section, the percentage of teachers participating in the teacher
professional pay system equals the ratio of the number of
licensed teachers who are working at least 60 percent of a
full-time teacher's hours and agree to participate in the
teacher professional pay system to the total number of licensed
teachers who are working at least 60 percent of a full-time
teacher's hours.
new text end

new text begin Subd. 3.new text end

new text begin Aid timing.new text end

new text begin (a) Districts or sites with
approved applications must receive alternative compensation aid
for each school year that the district or site participates in
the program as described in this subdivision. Districts or
sites with applications received by the commissioner before June
1 of the first year of a two-year contract shall receive
alternative compensation aid for both years of the contract.
Districts or sites with applications received by the
commissioner after June 1 of the first year of a two-year
contract shall receive alternative compensation aid only for the
second year of the contract. A qualifying district or site that
received alternative compensation aid for the previous fiscal
year must receive at least an amount equal to the lesser of the
amount it received for the previous fiscal year or its
proportionate share of the previous year's appropriation if the
district or site submits a timely application and the
commissioner determines that the district or site continues to
implement an alternative teacher professional pay system,
consistent with its application under this section. The
commissioner must approve initial applications for school
districts qualifying under subdivision 1, paragraph (b), clause
(1), by January 15 of each year. If any money remains, the
commissioner must approve aid amounts for school districts
qualifying under subdivision 1, paragraph (b), clause (2), by
February 15 of each year.
new text end

new text begin (b) The commissioner shall select applicants that qualify
for this program, notify school districts and school sites about
the program, develop and disseminate application materials, and
carry out other activities needed to implement this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2004, section 122A.60,
subdivision 1, is amended to read:


Subdivision 1.

Staff development committee.

A school
board must use the revenue authorized in section 122A.61 for
in-service education for programs under section 120B.22,
subdivision 2, or for staff development plans under this
section. The board must establish an advisory staff development
committee to develop the plan, assist site professional
development teams in developing a site plan consistent with the
goals of the plan, and evaluate staff development efforts at the
site level. A majority of the advisory committee and the site
professional development team must be teachers representing
various grade levels, subject areas, and special education. The
advisory committee must also include nonteaching staff, parents,
and administrators. deleted text begin Districts must report staff development
results and expenditures to the commissioner in the form and
manner determined by the commissioner. The expenditure report
must include expenditures by the board for district level
activities and expenditures made by the staff. The report must
provide a breakdown of expenditures for (1) curriculum
development and programs, (2) in-service education, workshops,
and conferences, and (3) the cost of teachers or substitute
teachers for staff development purposes. Within each of these
categories, the report must also indicate whether the
expenditures were incurred at the district level or the school
site level, and whether the school site expenditures were made
possible by the grants to school sites that demonstrate
exemplary use of allocated staff development revenue. These
expenditures are to be reported using the UFARS system. The
commissioner shall report the staff development expenditure data
to the education committees of the legislature by February 15
each year.
deleted text end

Sec. 37.

Minnesota Statutes 2004, section 122A.60, is
amended by adding a subdivision to read:


new text begin Subd. 1a. new text end

new text begin Effective staff development activities. new text end

new text begin Staff
development activities must:
new text end

new text begin (1) focus on the school classroom and research-based
strategies that improve student learning;
new text end

new text begin (2) provide opportunities for teachers to practice and
improve their skills over time;
new text end

new text begin (3) provide opportunities for teachers to use data to
increase student achievement as part of their daily work;
new text end

new text begin (4) enhance teacher content knowledge and instructional
skills;
new text end

new text begin (5) align with state and local academic standards; and
new text end

new text begin (6) provide opportunities to build professional
relationships, foster collaboration among principals and staff
who provide instruction, and provide opportunities for
teacher-to-teacher mentoring.
new text end

new text begin Staff development activities may include curriculum development
and curriculum training programs, and activities that provide
teachers and other members of site-based teams training to
enhance team performance. In addition, the school district may
implement other staff development activities as required by law
and those associated with professional teacher compensation
models. Release time provided for teachers to supervise
students on field trips and school activities, or independent
tasks not associated with enhancing the teacher's knowledge and
skills, such as preparing report cards, calculating grades, or
organizing classroom materials, may not be counted as staff
development time that is financed with staff development
reserved revenue under section 122A.61.
new text end

Sec. 38.

Minnesota Statutes 2004, section 122A.60, is
amended by adding a subdivision to read:


new text begin Subd. 4. new text end

new text begin Staff development report. new text end

new text begin (a) By October 15 of
each year, the district and site staff development committees
shall write and submit a report of staff development activities
and expenditures for the previous year, in the form and manner
determined by the commissioner. The report must include
assessment and evaluation data indicating progress toward
district and site staff development goals based on teaching and
learning outcomes, including the percentage of teachers and
other staff involved in instruction participating in effective
staff development activities under subdivision 3.
new text end

new text begin (b) The report must provide a breakdown of expenditures for:
new text end

new text begin (1) curriculum development and curriculum training
programs; and
new text end

new text begin (2) staff development training models, workshops, and
conferences, and the cost of releasing teachers or providing
substitute teachers for staff development purposes.
new text end

new text begin The report must also include whether the expenditures were
incurred at the district level or the school site level, and
whether the school site expenditures were made possible by
grants to school sites that demonstrate exemplary use of
allocated staff development revenue. These expenditures must be
reported using the uniform financial and accounting and
reporting standards.
new text end

new text begin (c) The commissioner shall report the staff development
progress and expenditure data to the house of representatives
and senate committees having jurisdiction over education by
February 15 each year.
new text end

Sec. 39.

Minnesota Statutes 2004, section 122A.61,
subdivision 1, is amended to read:


Subdivision 1.

Staff development revenue.

A district is
required to reserve an amount equal to at least two percent of
the basic revenue under section 126C.10, subdivision 2, for
in-service education for programs under section 120B.22,
subdivision 2, for staff development plans, including plans for
challenging instructional activities and experiences under
section 122A.60, and for curriculum development and programs,
other in-service education, teachers' workshops, teacher
conferences, the cost of substitute teachers staff development
purposes, preservice and in-service education for special
education professionals and paraprofessionals, and other related
costs for staff development efforts. deleted text begin A district may annually
waive the requirement to reserve their basic revenue under this
section if a majority vote of the licensed teachers in the
district and a majority vote of the school board agree to a
resolution to waive the requirement.
deleted text end A district in statutory
operating debt is exempt from reserving basic revenue according
to this section. Districts may expend an additional amount of
unreserved revenue for staff development based on their needs.
With the exception of amounts reserved for staff development
from revenues allocated directly to school sites, the board must
initially allocate 50 percent of the reserved revenue to each
school site in the district on a per teacher basis, which must
be retained by the school site until used. The board may retain
25 percent to be used for district wide staff development
efforts. The remaining 25 percent of the revenue must be used
to make grants to school sites for best practices methods. A
grant may be used for any purpose authorized under section
120B.22, subdivision 2, 122A.60, or for the costs of curriculum
development and programs, other in-service education, teachers'
workshops, teacher conferences, substitute teachers for staff
development purposes, and other staff development efforts, and
determined by the site professional development team. The site
professional development team must demonstrate to the school
board the extent to which staff at the site have met the
outcomes of the program. The board may withhold a portion of
initial allocation of revenue if the staff development outcomes
are not being met. new text begin A school district that participates in the
professional compensation initiative may, but is not required
to, reserve revenue under this section, except to the extent the
school district agrees to reserve or use revenue as a condition
of participation in the initiative.
new text end

Sec. 40.

new text begin [122A.628] SCHOOLS MENTORING SCHOOLS REGIONAL
SITES.
new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The commissioner of education
shall select up to four school districts, or partnerships of
school districts, for the purpose of assisting other school
districts in the region with the development of thorough and
effective teacher mentoring programs. The commissioner shall
use geographic balance and proven teacher induction programs as
criteria when selecting the sites. One site must include the
Brainerd teacher support system, which has been cited by the
Minnesota Board of Teaching as a model program and was one of
only six programs in the nation to be recognized for the 2004
NEA-Saturn/UAW partnership award. The sites shall be known as
schools mentoring schools regional sites.
new text end

new text begin The sites shall provide high quality mentoring assistance
programs and services to other nearby school districts for the
development of effective systems of support for new teachers.
The sites shall offer coaching/mentor training, in-class
observation training, and train-the-teacher opportunities for
teams of participating teachers. The sites shall use their
recognized experience and methods to equip schools to work with
their own new and beginning teachers. The commissioner shall
review and report annually to the legislature on the operation
of each training center.
new text end

new text begin Subd. 2. new text end

new text begin Revenue. new text end

new text begin A school district that is selected to
participate in the schools mentoring schools program under this
section may utilize its professional compensation revenue under
section 122A.4142, subdivision 4, to pay regional training sites
for staff development and training services.
new text end

Sec. 41.

new text begin [122A.74] PRINCIPALS' LEADERSHIP INSTITUTE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of
education may contract with the regents of the University of
Minnesota to establish a Principals' Leadership Institute to
provide professional development to school principals by:
new text end

new text begin (1) creating a network of leaders in the educational and
business communities to communicate current and future trends in
leadership techniques;
new text end

new text begin (2) helping to create a vision for the school that is
aligned with the community and district priorities; and
new text end

new text begin (3) developing strategies to retain highly qualified
teachers.
new text end

new text begin (b) The University of Minnesota must cooperate with
participating members of the business community to provide
funding and content for the institute.
new text end

new text begin (c) Participants must agree to attend the Principals'
Leadership Institute for four weeks during the academic summer.
new text end

new text begin (d) The Principals' Leadership Institute must incorporate
program elements offered by leadership programs at the
University of Minnesota and program elements used by the
participating members of the business community to enhance
leadership within their businesses.
new text end

new text begin Subd. 2. new text end

new text begin Method of selection and requirements. new text end

new text begin (a) The
board of each school district in the state may select a
principal, upon the recommendation of the district's
superintendent and based on the principal's leadership
potential, to attend the institute.
new text end

new text begin (b) The school board shall forward its list of recommended
participants to the commissioner of education by February 1 each
year. In addition, a principal may submit an application
directly to the commissioner by February 1. The commissioner of
education shall notify the school board, the principal
candidates, and the University of Minnesota of the principals
selected to participate in the Principals' Leadership Institute
each year.
new text end

Sec. 42.

Minnesota Statutes 2004, section 123B.02, is
amended by adding a subdivision to read:


new text begin Subd. 14a. new text end

new text begin Employee recognition. new text end

new text begin A school board may
establish and operate an employee recognition program for
district employees, including teachers, and may expend funds as
necessary to achieve the objectives of the program. The
employee recognition program shall not include monetary awards.
new text end

Sec. 43.

Minnesota Statutes 2004, section 123B.02, is
amended by adding a subdivision to read:


new text begin Subd. 22.new text end

new text begin Rewards.new text end

new text begin A school board may offer a reward to
persons who provide accurate and reliable information that leads
to the apprehension and arrest of a person who has committed a
crime against school district property, students, employees or
volunteers, or school board members.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2004, section 123B.04,
subdivision 1, is amended to read:


Subdivision 1.

Definition.

"Education site" means a
separate facility. A program within a facility new text begin or within a
district
new text end is an education site if the school board recognizes it
as a site.

Sec. 45.

Minnesota Statutes 2004, section 123B.04,
subdivision 2, is amended to read:


Subd. 2.

Agreement.

(a) deleted text begin Either the school board or the
school site decision-making team may request that the school
board enter into an agreement with a school site decision-making
team concerning
deleted text end new text begin Upon the request of 60 percent of the licensed
employees of a site or a school site decision-making team, the
school board shall enter into discussions to reach an agreement
concerning
new text end the governance, management, or control of the
school. A school site decision-making team may include the
school principal, teachers in the school or their designee,
other employees in the school, parents of pupils in the school,
representatives of pupils in the school, or other members in the
community. new text begin For purposes of formation of a new site, a school
site decision-making team may be a team of teachers that is
recognized by the board as a site.
new text end The school site
decision-making team shall include the school principal or other
person having general control and supervision of the school.
The site decision-making team must reflect the diversity of the
education site. deleted text begin No more than deleted text end new text begin At least new text end one-half of the members
shall be employees of the district, unless an employee is the
parent of a student enrolled in the school site, in which case
the employee may elect to serve as a parent member of the site
team.

(b) School site decision-making agreements must delegate
powers, duties, and broad management responsibilities to site
teams and involve staff members, students as appropriate, and
parents in decision making.

(c) An agreement shall include a statement of powers,
duties, responsibilities, and authority to be delegated to and
within the site.

(d) An agreement may include:

(1) an achievement contract according to subdivision 4;

(2) a mechanism to allow principals, new text begin a site leadership
team,
new text end or other persons having general control and supervision of
the school, to make decisions regarding how financial and
personnel resources are best allocated at the site and from whom
goods or services are purchased;

(3) a mechanism to implement parental involvement programs
under section 124D.895 and to provide for effective parental
communication and feedback on this involvement at the site
level;

(4) a provision that would allow the team to determine who
is hired into licensed and nonlicensed positions;

(5) a provision that would allow teachers to choose the
principal or other person having general control;

(6) an amount of revenue allocated to the site under
subdivision 3; and

(7) any other powers and duties determined appropriate by
the board.

The school board of the district remains the legal employer
under clauses (4) and (5).

(e) Any powers or duties not delegated to the school site
management team in the school site management agreement shall
remain with the school board.

(f) Approved agreements shall be filed with the
commissioner. If a school board denies a request new text begin or the school
site and school board fail to reach an agreement
new text end to enter into a
school site management agreement, deleted text begin it deleted text end new text begin the school board new text end shall
provide a copy of the request and the reasons for its denial to
the commissioner.

Sec. 46.

Minnesota Statutes 2004, section 123B.88, is
amended by adding a subdivision to read:


new text begin Subd. 3a.new text end

new text begin Pupil transportation safety committee.new text end

new text begin (a) A
school board may establish a pupil transportation safety
committee. The chair of the pupil transportation safety
committee is the district's school transportation safety
director. The school board shall appoint the other members of
the pupil transportation safety committee. Membership may
include parents, school bus drivers, representatives of school
bus companies, local law enforcement officials, other school
district staff, and representatives from other units of local
government.
new text end

new text begin (b) The duties of the pupil transportation safety committee
include: (1) reviewing and recommending changes to the
district's pupil transportation safety policy required under
subdivision 1; and (2) developing a comprehensive plan for the
safe transportation of students who face hazardous
transportation conditions. The comprehensive hazardous
transportation plan shall consider safety factors including the
types of roads that students must cross, the speed of traffic on
those roads, the age of the students, and any other factors as
determined by the committee.
new text end

new text begin (c) The pupil transportation safety committee must hold at
least one public meeting before adopting its comprehensive plan
for transporting students who face hazardous transportation
conditions.
new text end

new text begin (d) Any recommended changes to the district's pupil
transportation safety policy and the comprehensive plan for
hazardous transportation must be submitted to the school board.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2004, section 124D.081, is
amended to read:


124D.081 deleted text begin FIRST-GRADE PREPAREDNESS deleted text end new text begin ALL-DAY KINDERGARTEN
new text end PROGRAM.

Subdivision 1.

Purpose.

The purposes of the deleted text begin first-grade
preparedness
deleted text end new text begin all-day kindergarten new text end program are to ensure that
every child has the opportunity before first grade to develop
the skills and abilities necessary to read and succeed in school
and to reduce the underlying causes that create a need for
compensatory revenue.

Subd. 2.

Qualifying district.

A school district may
receive deleted text begin first-grade preparedness deleted text end new text begin all-day kindergarten new text end revenue
for qualifying school sites if, consistent with subdivision 5,
the school board approves a resolution requiring the district to
provide services to all children located in a qualifying school
site attendance area.

Subd. 3.

Qualifying school site.

(a) The commissioner
shall rank all school sites with kindergarten programs that do
not exclusively serve students under sections 125A.03 to
125A.24, and 125A.65. The ranking must be from highest to
lowest based on the site's free and reduced lunch count as a
percent of the fall enrollment using the preceding October 1
enrollment data. Once a school site is calculated to be
eligible, it remains eligible for the duration of the pilot
programdeleted text begin , unless the site's ranking falls below the state average
for elementary schools
deleted text end . For each school site, the percentage
used to calculate the ranking must be the greater of (1) the
percent of the fall kindergarten enrollment receiving free and
reduced lunch, or (2) the percent of the total fall enrollment
receiving free and reduced lunch. The list of ranked sites must
be separated into the following geographic areas: Minneapolis
district, St. Paul district, suburban Twin Cities districts in
the seven-county metropolitan area, and school districts in
greater Minnesota.

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

Subd. 4.

Program.

A qualifying school site must develop
its deleted text begin first-grade preparedness deleted text end new text begin all-day kindergarten new text end program in
collaboration with other providers of school readiness and child
development services. A school site must offer a full-day
kindergarten program to participating children who are five
years of age or older for the full school day every day, a
program for participating children who are four years old, or a
combination of both. The program may offer as an option to
families home visits and other practices as appropriate, and may
provide such services with the consent of the parent or
guardian. Program providers must ensure that the program
supplements existing school readiness and child development
programs and complements the services provided with compensatory
revenue. Where possible, individuals receiving assistance under
a family assistance plan can meet the work activity requirement
of the plan by participating in deleted text begin a first-grade preparedness deleted text end new text begin an
all-day kindergarten
new text end program as a volunteer.

Subd. 5.

Extended day requirements.

The board of a
qualifying school district must develop and approve a plan to
provide extended day services to serve as many children as
possible. To accept children whose families participate in
child care assistance programs under section 119B.03 or 119B.05,
and to meet the requirements of section 245A.03, subdivision 2,
the board must formally approve the deleted text begin first-grade preparedness
deleted text end new text begin all-day kindergarten new text end program. All revenue received under
subdivision 6 must be allocated to the qualifying school sites
within the district.

Subd. 6.

deleted text begin preparedness deleted text end revenue.

(a) A qualifying school
district is eligible for deleted text begin first-grade preparedness deleted text end new text begin all-day
kindergarten
new text end revenue equal to the basic formula allowance for
that year times the number of children five years of age or
older enrolled in a kindergarten program at the site on October
1 of the previous year times .53.

(b) This revenue must supplement and not replace
compensatory revenue that the district uses for the same or
similar purposes under chapters 120B, 123A, 123B, 124D, 126C,
and 127A.

(c) A pupil enrolled in the deleted text begin first grade preparedness
deleted text end new text begin all-day kindergarten new text end program at a qualifying school site is
eligible for transportation under section 123B.88, subdivision 1.

(d) deleted text begin First grade preparedness deleted text end new text begin All-day kindergarten new text end revenue
paid to a charter school for which a school district is
providing transportation according to section 124D.10,
subdivision 16, shall be decreased by an amount equal to the
product of the formula allowance according to section 126C.10,
subdivision 2, times .0485 times the pupil units calculated
according to paragraph (a). This amount shall be paid to the
school district for transportation costs.

Subd. 9.

Reserve account.

deleted text begin First grade preparedness
deleted text end new text begin All-day kindergarten new text end revenue must be placed in a reserve account
within the general fund and may only be used for deleted text begin first grade
preparedness
deleted text end new text begin all-day kindergarten new text end programs at qualifying school
sites.

Sec. 48.

Minnesota Statutes 2004, section 124D.09,
subdivision 12, is amended to read:


Subd. 12.

Credits.

A pupil may enroll in a course under
this section for either secondary credit or postsecondary
credit. At the time a pupil enrolls in a course, the pupil
shall designate whether the course is for secondary or
postsecondary credit. A pupil taking several courses may
designate some for secondary credit and some for postsecondary
credit. A pupil must not audit a course under this section.

A district shall grant academic credit to a pupil enrolled
in a course for secondary credit if the pupil successfully
completes the course. Seven quarter or four semester college
credits equal at least one full year of high school credit.
Fewer college credits may be prorated. A district must also
grant academic credit to a pupil enrolled in a course for
postsecondary credit if secondary credit is requested by a
pupil. If no comparable course is offered by the district, the
district must, as soon as possible, notify the commissioner, who
shall determine the number of credits that shall be granted to a
pupil who successfully completes a course. If a comparable
course is offered by the district, the school board shall grant
a comparable number of credits to the pupil. If there is a
dispute between the district and the pupil regarding the number
of credits granted for a particular course, the pupil may appeal
the board's decision to the commissioner. The commissioner's
decision regarding the number of credits shall be final.

The secondary credits granted to a pupil must be counted
toward the graduation requirements and subject area requirements
of the district. Evidence of successful completion of each
course and secondary credits granted must be included in the
pupil's secondary school record. A pupil shall provide the
school with a copy of the pupil's grade in each course taken for
secondary credit under this section. Upon the request of a
pupil, the pupil's secondary school record must also include
evidence of successful completion and credits granted for a
course taken for postsecondary credit. In either case, the
record must indicate that the credits were earned at a
postsecondary institution.

If a pupil enrolls in a postsecondary institution after
leaving secondary school, the postsecondary institution must
award postsecondary credit for any course successfully completed
for secondary credit at that institution. Other postsecondary
institutions may award, after a pupil leaves secondary school,
postsecondary credit for any courses successfully completed
under this section. An institution may not charge a pupil for
the award of credit.

new text begin The Board of Trustees of the Minnesota State Colleges and
Universities and the Board of Regents of the University of
Minnesota must, and private nonprofit and proprietary
postsecondary institutions, should award postsecondary credit
for any successfully completed courses in a program certified by
the National Alliance of Concurrent Enrollment Partnerships
offered according to an agreement under subdivision 10.
new text end

Sec. 49.

Minnesota Statutes 2004, section 124D.11,
subdivision 6, is amended to read:


Subd. 6.

Other aid, grants, revenue.

(a) A charter
school is eligible to receive other aids, grants, and revenue
according to chapters 120A to 129C, as though it were a district.

(b) Notwithstanding paragraph (a), a charter school may not
receive aid, a grant, or revenue if a levy is required to obtain
the money, new text begin or if the aid, grant, or revenue is a replacement of
levy revenue,
new text end except as otherwise provided in this section.

(c) Federal aid received by the state must be paid to the
school, if it qualifies for the aid as though it were a school
district.

(d) A charter school may receive money from any source for
capital facilities needs. In the year-end report to the
commissioner of education, the charter school shall report the
total amount of funds received from grants and other outside
sources.

Sec. 50.

Minnesota Statutes 2004, section 124D.66,
subdivision 3, is amended to read:


Subd. 3.

Eligible services.

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

(b) Instruction may be provided at one or more grade levels
from kindergarten to grade 8 and for students in grades 9
through 12 who new text begin were enrolled in grade 8 before the 2005-2006
school year and
new text end have failed the basic skills testsnew text begin , or were
enrolled in grade 8 in the 2005-2006 school year and later and
who have failed the Minnesota Comprehensive Assessments
(MCA-IIs) in reading, mathematics, or writing as required for
high school graduation under section 120B.02
new text end . If an assessment
of pupils' needs within a district demonstrates that the
eligible pupils in grades kindergarten to grade 8 are being
appropriately served, a district may serve eligible pupils in
grades 9 to 12.

(c) Instruction must be provided under the supervision of
the eligible pupil's regular classroom teacher. Instruction may
be provided by the eligible pupil's classroom teacher, by
another teacher, by a team of teachers, or by an education
assistant or aide. A special education teacher may provide
instruction, but instruction that is provided under this section
is not eligible for aid under section 125A.76.

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

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

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

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

Sec. 51.

Minnesota Statutes 2004, section 124D.74,
subdivision 1, is amended to read:


Subdivision 1.

Program described.

American Indian
education programs are programs in public elementary and
secondary schools, nonsectarian nonpublic, community,
tribal, new text begin charter,new text end or alternative schools enrolling American
Indian children designed to:

(1) support postsecondary preparation for pupils;

(2) support the academic achievement of American Indian
students with identified focus to improve reading and mathematic
skills;

(3) make the curriculum more relevant to the needs,
interests, and cultural heritage of American Indian pupils;

(4) provide positive reinforcement of the self-image of
American Indian pupils;

(5) develop intercultural awareness among pupils, parents,
and staff; and

(6) supplement, not supplant, state and federal educational
and cocurricular programs.

Program components may include: development of support
components for students in the areas of academic achievement,
retention, and attendance; development of support components for
staff, including in-service training and technical assistance in
methods of teaching American Indian pupils; research projects,
including experimentation with and evaluation of methods of
relating to American Indian pupils; provision of personal and
vocational counseling to American Indian pupils; modification of
curriculum, instructional methods, and administrative procedures
to meet the needs of American Indian pupils; and supplemental
instruction in American Indian language, literature, history,
and culture. Districts offering programs may make contracts for
the provision of program components by establishing cooperative
liaisons with tribal programs and American Indian social service
agencies. These programs may also be provided as components of
early childhood and family education programs.

Sec. 52.

Minnesota Statutes 2004, section 124D.81,
subdivision 1, is amended to read:


Subdivision 1.

Grants; procedures.

Each fiscal year the
commissioner of education must make grants to no fewer than six
American Indian education programs. At least three programs
must be in urban areas and at least three must be on or near
reservations. The board of a local district, a participating
school or a group of boards may develop a proposal for grants in
support of American Indian education programs. Proposals may
provide for contracts for the provision of program components by
nonsectarian nonpublic, community, tribal, new text begin charter,new text end or
alternative schools. The commissioner shall prescribe the form
and manner of application for grants, and no grant shall be made
for a proposal not complying with the requirements of sections
124D.71 to 124D.82. deleted text begin The commissioner must submit all proposals
to the state Advisory Committee on American Indian Education
Programs for its recommendations concerning approval,
modification, or disapproval and the amounts of grants to
approved programs.
deleted text end

Sec. 53.

Minnesota Statutes 2004, section 124D.84,
subdivision 1, is amended to read:


Subdivision 1.

Awards.

The commissionerdeleted text begin , with the advice
and counsel of the Minnesota Indian Education Committee,
deleted text end may
award scholarships to any Minnesota resident student who is of
one-fourth or more Indian ancestry, who has applied for other
existing state and federal scholarship and grant programs, and
who, in the opinion of the commissioner, has the capabilities to
benefit from further education. Scholarships must be for
accredited degree programs in accredited Minnesota colleges or
universities or for courses in accredited Minnesota business,
technical, or vocational schools. Scholarships may also be
given to students attending Minnesota colleges that are in
candidacy status for obtaining full accreditation, and are
eligible for and receiving federal financial aid programs.
Students are also eligible for scholarships when enrolled as
students in Minnesota higher education institutions that have
joint programs with other accredited higher education
institutions. Scholarships shall be used to defray the total
cost of education including tuition, incidental fees, books,
supplies, transportation, other related school costs and the
cost of board and room and shall be paid directly to the college
or school concerned where the student receives federal financial
aid. The total cost of education includes all tuition and fees
for each student enrolling in a public institution and the
portion of tuition and fees for each student enrolling in a
private institution that does not exceed the tuition and fees at
a comparable public institution. Each student shall be awarded
a scholarship based on the total cost of the student's education
and a federal standardized need analysis. Applicants are
encouraged to apply for all other sources of financial aid. deleted text begin The
amount and type of each scholarship shall be determined through
the advice and counsel of the Minnesota Indian education
committee.
deleted text end

When an Indian student satisfactorily completes the work
required by a certain college or school in a school year the
student is eligible for additional scholarships, if additional
training is necessary to reach the student's educational and
vocational objective. Scholarships may not be given to any
Indian student for more than five years of study deleted text begin without special
recommendation of the Minnesota Indian Education Committee
deleted text end .

Sec. 54.

new text begin [127A.095] IMPLEMENTATION OF NO CHILD LEFT
BEHIND ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Continued implementation. new text end

new text begin The Department
of Education shall continue to implement the federal No Child
Left Behind Act, Public Law 107-110, without interruption.
new text end

new text begin Subd. 2. new text end

new text begin No child left behind review. new text end

new text begin (a) The
legislature states its intention to require the Department of
Education to conduct a comprehensive review of the consolidated
state plan submitted by the state to the federal Department of
Education on implementing the No Child Left Behind Act. The
Minnesota Department of Education shall review and seek waivers
under paragraph (b). If the Department of Education is unable
to obtain waivers under paragraph (b), it should make a
recommendation in its report under paragraph (b) about whether
the state should opt out of the No Child Left Behind Act.
new text end

new text begin (b) The commissioner shall report to the house of
representatives and senate committees having jurisdiction over
kindergarten through grade 12 education policy and finance by
April 1, 2006, whether the department has:
new text end

new text begin (1) received approval from the federal Department of
Education to allow the state to develop a plan using multiple
measures including value-added measurement of student
achievement in addition to relying on standardized test results
to evaluate school and student performance for the purpose of
determining adequate yearly progress;
new text end

new text begin (2) received approval from the federal Department of
Education to allow the state to average three years of data for
the purposes of identifying a school for improvement;
new text end

new text begin (3) developed a plan and model legislation to ensure that
if an adequate yearly progress determination was made in error,
that the error will not adversely affect the school's or school
district's sanction status in subsequent years. The department
must have a policy in place to correct errors to accountability
reports;
new text end

new text begin (4) reported the additional costs for state fiscal years
2006 to 2009 that the No Child Left Behind Act imposes on the
state, the state's school districts, and charter schools that
are in excess of costs associated with the Improving America's
Schools Act of 1994, Public Law 103-382;
new text end

new text begin (5) received approval from the federal Department of
Education to allow the state to use No Child Left Behind Act
money to provide supplemental education services only in the
academic subject area that causes a school to miss adequate
yearly progress;
new text end

new text begin (6) received approval from the federal Department of
Education to exclude from sanctions schools that have not made
adequate yearly progress solely due to a subgroup of students
with disabilities not testing at a proficient level;
new text end

new text begin (7) received approval from the federal Department of
Education to exclude from sanctions a school that is classified
as not having made adequate yearly progress solely due to
different subgroups testing below proficient levels for at least
two consecutive years;
new text end

new text begin (8) received approval from the federal Department of
Education to identify a school as not making adequate yearly
progress only after missing the adequate yearly progress targets
in the same subject and subgroup for two consecutive years;
new text end

new text begin (9) received approval from the federal Department of
Education to identify a district as in need of improvement only
after missing the adequate yearly progress target in the same
subject across multiple grade spans for two consecutive years;
new text end

new text begin (10) received approval from the federal Department of
Education to limit the score of a student within multiple
subgroups to the one subgroup that is the smallest subgroup in
which that student is a part of when calculating adequate yearly
progress;
new text end

new text begin (11) implemented a uniform financial reporting system for
school districts to report costs related to implementing No
Child Left Behind Act requirements, including the costs of
complying with sanctions;
new text end

new text begin (12) received approval from the federal Department of
Education to determine the percentage of the special education
students that would be best educated based on out-of-level
standards and tested accordingly based on an individual
education plan; and
new text end

new text begin (13) received approval from the federal Department of
Education to determine when to hold schools accountable for
including a student with limited English proficiency in adequate
yearly progress calculations.
new text end

new text begin Subd. 3.new text end

new text begin Department of finance certification.new text end

new text begin If the
commissioner of education has not received approval from the
federal Department of Education regarding the conditions in
subdivision 2, paragraph (b), the commissioner of finance shall
certify and report to the legislature beginning January 1, 2007,
and each year thereafter, the amount of federal revenue, if any,
that may be withheld by the federal government as a result of a
potential state decision to discontinue implementation of the No
Child Left Behind Act. The report shall also specify the
intended purpose of the federal revenue and the amount of
revenue that may be withheld from the state, each school
district, and each charter school in each fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 55.

new text begin [129C.105] BOARD MEETINGS BY TELEPHONE OR OTHER
ELECTRONIC MEANS.
new text end

new text begin (a) Notwithstanding section 13D.01 and if complying with
section 13D.02 is impractical, the Board of the Perpich Center
for Arts Education may conduct a meeting of its members by
telephone or other electronic means when:
new text end

new text begin (1) all members of the board participating in the meeting,
wherever the members' physical locations, can hear one another
and all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting
location of the board can hear all discussion and testimony and
all votes of members of the board;
new text end

new text begin (3) at least one member of the board is physically present
at the regular meeting location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's
vote on each issue can be identified and recorded.
new text end

new text begin (b) Each member of the board participating in a meeting by
telephone or other electronic means is considered present at the
meeting for purposes of determining a quorum and participating
in all proceedings.
new text end

new text begin (c) If telephone or other electronic means is used to
conduct a meeting, the board, to the extent practical, shall
allow a person to monitor the meeting electronically from a
remote location. The board may require the person making such a
connection to pay for documented marginal costs that the board
incurs as a result of the additional connection.
new text end

new text begin (d) If telephone or other electronic means is used to
conduct a regular, special, or emergency meeting, the board
shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other
electronic means, and of the provisions of paragraph (c). The
timing and method of providing notice is governed by section
13D.04.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 56.

Minnesota Statutes 2004, section 179A.03,
subdivision 14, is amended to read:


Subd. 14.

Public employee or employee.

"Public employee"
or "employee" means any person appointed or employed by a public
employer except:

(a) elected public officials;

(b) election officers;

(c) commissioned or enlisted personnel of the Minnesota
National Guard;

(d) emergency employees who are employed for emergency work
caused by natural disaster;

(e) part-time employees whose service does not exceed the
lesser of 14 hours per week or 35 percent of the normal work
week in the employee's appropriate unit;

(f) employees whose positions are basically temporary or
seasonal in character and: (1) are not for more than 67 working
days in any calendar year; or (2) are not for more than 100
working days in any calendar year and the employees are under
the age of 22, are full-time students enrolled in a nonprofit or
public educational institution prior to being hired by the
employer, and have indicated, either in an application for
employment or by being enrolled at an educational institution
for the next academic year or term, an intention to continue as
students during or after their temporary employment;

(g) employees providing services for not more than two
consecutive quarters to the Board of Trustees of the Minnesota
State Colleges and Universities under the terms of a
professional or technical services contract as defined in
section 16C.08, subdivision 1;

(h) employees of charitable hospitals as defined by section
179.35, subdivision 3;

(i) full-time undergraduate students employed by the school
which they attend under a work-study program or in connection
with the receipt of financial aid, irrespective of number of
hours of service per week;

(j) an individual who is employed for less than 300 hours
in a fiscal year as an instructor in an adult vocational
education program;

(k) an individual hired by the Board of Trustees of the
Minnesota State Colleges and Universities to teach one course
for three or fewer credits for one semester in a year;

(l) with respect to court employees:

(1) personal secretaries to judges;

(2) law clerks;

(3) managerial employees;

(4) confidential employees; and

(5) supervisory employees.

The following individuals are public employees regardless
of the exclusions of clauses (e) and (f):

(i) an employee hired by a school district or the Board of
Trustees of the Minnesota State Colleges and Universities except
at the university established in section 136F.13 or for
community services or community education instruction offered on
a noncredit basis: (A) to replace an absent teacher or faculty
member who is a public employee, where the replacement employee
is employed more than 30 working days as a replacement for that
teacher or faculty member; or (B) to take a teaching position
created due to increased enrollment, curriculum expansion,
courses which are a part of the curriculum whether offered
annually or not, or other appropriate reasons; deleted text begin and
deleted text end

(ii) an employee hired for a position under clause (f)(1)
if that same position has already been filled under clause
(f)(1) in the same calendar year and the cumulative number of
days worked in that same position by all employees exceeds 67
calendar days in that year. For the purpose of this paragraph,
"same position" includes a substantially equivalent position if
it is not the same position solely due to a change in the
classification or title of the positionnew text begin ; and
new text end

new text begin (iii) an early childhood family education teacher employed
by a school district
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 57.

Minnesota Statutes 2004, section 260C.201,
subdivision 1, is amended to read:


Subdivision 1.

Dispositions.

(a) If the court finds that
the child is in need of protection or services or neglected and
in foster care, it shall enter an order making any of the
following dispositions of the case:

(1) place the child under the protective supervision of the
responsible social services agency or child-placing agency in
the home of a parent of the child under conditions prescribed by
the court directed to the correction of the child's need for
protection or services:

(i) the court may order the child into the home of a parent
who does not otherwise have legal custody of the child, however,
an order under this section does not confer legal custody on
that parent;

(ii) if the court orders the child into the home of a
father who is not adjudicated, he must cooperate with paternity
establishment proceedings regarding the child in the appropriate
jurisdiction as one of the conditions prescribed by the court
for the child to continue in his home;

(iii) the court may order the child into the home of a
noncustodial parent with conditions and may also order both the
noncustodial and the custodial parent to comply with the
requirements of a case plan under subdivision 2; or

(2) transfer legal custody to one of the following:

(i) a child-placing agency; or

(ii) the responsible social services agency. In placing a
child whose custody has been transferred under this paragraph,
the agencies shall make an individualized determination of how
the placement is in the child's best interests using the
consideration for relatives and the best interest factors in
section 260C.212, subdivision 2, paragraph (b); or

(3) if the child has been adjudicated as a child in need of
protection or services because the child is in need of special
services or care to treat or ameliorate a physical or mental
disability, the court may order the child's parent, guardian, or
custodian to provide it. The court may order the child's health
plan company to provide mental health services to the child.
Section 62Q.535 applies to an order for mental health services
directed to the child's health plan company. If the health
plan, parent, guardian, or custodian fails or is unable to
provide this treatment or care, the court may order it
provided. Absent specific written findings by the court that
the child's disability is the result of abuse or neglect by the
child's parent or guardian, the court shall not transfer legal
custody of the child for the purpose of obtaining special
treatment or care solely because the parent is unable to provide
the treatment or care. If the court's order for mental health
treatment is based on a diagnosis made by a treatment
professional, the court may order that the diagnosing
professional not provide the treatment to the child if it finds
that such an order is in the child's best interests; or

(4) if the court believes that the child has sufficient
maturity and judgment and that it is in the best interests of
the child, the court may order a child 16 years old or older to
be allowed to live independently, either alone or with others as
approved by the court under supervision the court considers
appropriate, if the county board, after consultation with the
court, has specifically authorized this dispositional
alternative for a child.

(b) If the child was adjudicated in need of protection or
services because the child is a runaway or habitual truant, the
court may order any of the following dispositions in addition to
or as alternatives to the dispositions authorized under
paragraph (a):

(1) counsel the child or the child's parents, guardian, or
custodian;

(2) place the child under the supervision of a probation
officer or other suitable person in the child's own home under
conditions prescribed by the court, including reasonable rules
for the child's conduct and the conduct of the parents,
guardian, or custodian, designed for the physical, mental, and
moral well-being and behavior of the child; or with the consent
of the commissioner of corrections, place the child in a group
foster care facility which is under the commissioner's
management and supervision;

(3) subject to the court's supervision, transfer legal
custody of the child to one of the following:

(i) a reputable person of good moral character. No person
may receive custody of two or more unrelated children unless
licensed to operate a residential program under sections 245A.01
to 245A.16; or

(ii) a county probation officer for placement in a group
foster home established under the direction of the juvenile
court and licensed pursuant to section 241.021;

(4) require the child to pay a fine of up to $100. The
court shall order payment of the fine in a manner that will not
impose undue financial hardship upon the child;

(5) require the child to participate in a community service
project;

(6) order the child to undergo a chemical dependency
evaluation and, if warranted by the evaluation, order
participation by the child in a drug awareness program or an
inpatient or outpatient chemical dependency treatment program;

(7) if the court believes that it is in the best interests
of the child deleted text begin and deleted text end new text begin or new text end of public safety that the child's driver's
license or instruction permit be canceled, the court may order
the commissioner of public safety to cancel the child's license
or permit for any period up to the child's 18th birthday. If
the child does not have a driver's license or permit, the court
may order a denial of driving privileges for any period up to
the child's 18th birthday. The court shall forward an order
issued under this clause to the commissioner, who shall cancel
the license or permit or deny driving privileges without a
hearing for the period specified by the court. At any time
before the expiration of the period of cancellation or denial,
the court may, for good cause, order the commissioner of public
safety to allow the child to apply for a license or permit, and
the commissioner shall so authorize;

(8) order that the child's parent or legal guardian deliver
the child to school at the beginning of each school day for a
period of time specified by the court; or

(9) require the child to perform any other activities or
participate in any other treatment programs deemed appropriate
by the court.

To the extent practicable, the court shall enter a
disposition order the same day it makes a finding that a child
is in need of protection or services or neglected and in foster
care, but in no event more than 15 days after the finding unless
the court finds that the best interests of the child will be
served by granting a delay. If the child was under eight years
of age at the time the petition was filed, the disposition order
must be entered within ten days of the finding and the court may
not grant a delay unless good cause is shown and the court finds
the best interests of the child will be served by the delay.

(c) If a child who is 14 years of age or older is
adjudicated in need of protection or services because the child
is a habitual truant and truancy procedures involving the child
were previously dealt with by a school attendance review board
or county attorney mediation program under section 260A.06 or
260A.07, the court shall order a cancellation or denial of
driving privileges under paragraph (b), clause (7), for any
period up to the child's 18th birthday.

(d) In the case of a child adjudicated in need of
protection or services because the child has committed domestic
abuse and been ordered excluded from the child's parent's home,
the court shall dismiss jurisdiction if the court, at any time,
finds the parent is able or willing to provide an alternative
safe living arrangement for the child, as defined in Laws 1997,
chapter 239, article 10, section 2.

(e) When a parent has complied with a case plan ordered
under subdivision 6 and the child is in the care of the parent,
the court may order the responsible social services agency to
monitor the parent's continued ability to maintain the child
safely in the home under such terms and conditions as the court
determines appropriate under the circumstances.

Sec. 58. 2005 S.F. No. 1879, article 3, section 3,
subdivision 24, if enacted, is amended to read:

Subd. 24.

Best practices seminars.

For best practices
seminars and other professional development capacity building
activities that assure proficiency in teaching and
implementation of graduation rule standards:

$1,000,000 ..... 2006

$1,000,000 ..... 2007

new text begin $400,000 each year is for a grant to the Minnesota
Humanities Commission.
new text end

new text begin $150,000 each year is for a grant to the Minnesota
Historical Society.
new text end

new text begin $250,000 each year is for a grant to Special School
District No. 6, South St. Paul, for the IB program expansion to
the elementary and middle school years.
new text end

new text begin $200,000 each year is for a grant to A Chance to Grow/New
Visions for the Minnesota Learning Resource Center's
comprehensive training program for education professionals
charged with helping children acquire basic reading and
mathematic skills.
new text end

Sec. 59. 2005 S.F. No. 1879, article 3, section 3,
subdivision 25, if enacted, is amended to read:

Subd. 25.

deleted text begin alternative teacher deleted text end new text begin professional new text end compensation
new text begin for teachersnew text end .

For deleted text begin alternative teacher deleted text end new text begin professional new text end compensation
new text begin for teachers aid new text end established under Minnesota Statutes, deleted text begin sections
122A.413 to 122A.415
deleted text end new text begin section 122A.4142new text end :

$ deleted text begin 3,700,000 deleted text end new text begin 8,700,000new text end ..... 2006

$ deleted text begin 3,700,000 deleted text end new text begin 8,700,000new text end ..... 2007

If the appropriations under this subdivision are
insufficient to fund all program participants, a participant may
receive less than the maximum per pupil amount available under
Minnesota Statutes, section deleted text begin 122A.415 deleted text end new text begin 122A.4142new text end , subdivision deleted text begin 1
deleted text end new text begin 4new text end . A qualifying district or site receiving deleted text begin alternative teacher
deleted text end new text begin professional new text end compensation new text begin for teacher new text end funding under this
subdivision may use the funding it receives to leverage
additional funds from a national program for enhancing teacher
professionalism. new text begin Grantees who received revenue in fiscal year
2005 under Minnesota Statutes 2004, sections 122A.413 to
122A.415 shall receive revenue in fiscal years 2006 and 2007
under Minnesota Statutes, section 122A.4142.
new text end

Sec. 60. 2005 S.F. No. 1879, article 3, section 3,
subdivision 26, if enacted, is amended to read:

Subd. 26.

deleted text begin youthworks deleted text end new text begin youth works new text end program.

For funding
deleted text begin youthworks deleted text end new text begin youth works new text end programs under Minnesota Statutes,
sections 124D.37 to 124D.45:

$ 900,000 ..... 2006

$ 900,000 ..... 2007

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

Sec. 61. 2005 S.F. No. 1879, article 3, section 3,
subdivision 27, if enacted, is amended to read:

Subd. 27.

Student organizations.

For student
organizations:

deleted text begin $625,000 deleted text end new text begin $725,000new text end ..... 2006

deleted text begin $625,000 deleted text end new text begin $725,000new text end ..... 2007

new text begin (a) $40,000 each year is for student organizations serving
health occupations.
new text end

new text begin (b) $37,500 each year is for student organizations serving
service occupations.
new text end

new text begin (c) $88,000 each year is for student organizations serving
trade and industry occupations.
new text end

new text begin (d) $84,000 each year is for student organizations serving
business occupations.
new text end

new text begin (e) $130,500 each year is for student organizations serving
agriculture occupations.
new text end

new text begin (f) $125,000 each year is for student organizations serving
family and consumer science occupations.
new text end

new text begin (g) $95,000 each year is for student organizations serving
marketing occupations.
new text end

Sec. 62. 2005 S.F. No. 1879, article 3, section 3,
subdivision 29, if enacted, is amended to read:

Subd. 29.

Collaborative urban educator.

For the
collaborative urban educator program:

$ deleted text begin 528,000 deleted text end new text begin 550,000new text end ..... 2006

$ deleted text begin 528,000 deleted text end new text begin 550,000new text end ..... 2007

Sec. 63. 2005 S.F. No. 1879, article 3, section 3,
subdivision 31, if enacted, is amended to read:

Subd. 31.

deleted text begin first grade preparedness deleted text end new text begin all-day kindergartennew text end .

For deleted text begin first grade preparedness grants deleted text end new text begin all-day kindergarten new text end under
Minnesota Statutes, section 124D.081:

$7,250,000 ..... 2006

$7,250,000 ..... 2007

Sec. 64. new text begin COLLEGE PREPARATION STANDARDS.
new text end

new text begin (a) The Higher Education Advisory Council must convene a
working group to develop standards describing the skills and
knowledge a high school graduate must have at entry into
postsecondary education in order to successfully graduate from
college. The standards must, to the extent possible, be
applicable for all postsecondary education but may describe
differences in the skills and knowledge necessary for success in
different higher education institutions and programs. The
standards need not be comprehensive but must, at a minimum, be
the essential skills and knowledge that will enable a student to
succeed in college. The Higher Education Services Office must
provide staff for the working group.
new text end

new text begin (b) The Higher Education Advisory Council must submit the
standards to the commissioner of education no later than January
15, 2006. No later than March 15, 2006, the commissioner of
education must report, to the chairs of the legislative
committees with jurisdiction over kindergarten through grade 12
education policy and finance and higher education policy and
finance, its recommendations regarding the changes, if any, that
must be made in Minnesota's academic standards in order to
ensure that Minnesota high school graduates meet the college
readiness standards established by the Higher Education Advisory
Council.
new text end

new text begin (c) The Higher Education Advisory Council must invite the
University of Minnesota, Minnesota State Colleges and
Universities, representatives of private colleges, and other
private postsecondary institutions, to participate in the
working group and may invite other individuals or entities to
participate. The Higher Education Advisory Council and its
working group may collaborate with the Minnesota P-16 Education
Partnership in developing the college readiness standards.
new text end

Sec. 65. new text begin MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.
new text end

new text begin The commissioner of education shall adopt rules on or
before January 1, 2005, to implement the Minnesota Comprehensive
Assessments Second Edition (MCA-IIs) in reading, mathematics,
and writing. For purposes of state and local high school
graduation requirements, the rules must include criteria
enabling school districts to:
new text end

new text begin (1) appropriately accommodate a student who fails but seeks
to pass the Minnesota Comprehensive Assessments Second Edition;
and
new text end

new text begin (2) exempt a disabled student, consistent with the
student's individualized education plan, or an English language
learner from the Minnesota Comprehensive Assessments Second
Edition or administer an alternative assessment either to a
disabled student, consistent with the student's individualized
education plan, or to an English language learner.
new text end

Sec. 66. new text begin ADAPTIVE COMPUTER-BASED ASSESSMENT.
new text end

new text begin The commissioner of education shall include the cost of
developing an adaptive computer-based assessment within the
budget for statewide testing, including the Minnesota
comprehensive assessments and value-added testing. If an
additional appropriation is necessary to develop the
computer-based assessment, the commissioner shall request that
the legislature include the required appropriation in a
subsequent budget.
new text end

Sec. 67. new text begin HEALTH AND PHYSICAL EDUCATION MODEL BENCHMARKS.
new text end

new text begin By July 1, 2006, the commissioner of education must
transmit to school districts model kindergarten through grade 12
health and physical education benchmarks developed by the
department's health and physical education quality teaching
network.
new text end

Sec. 68. new text begin RULES FOR SUPPLEMENTAL SERVICE PROVIDERS.
new text end

new text begin The commissioner of education must amend Minnesota Rules,
part 3512.5400, relating to supplemental service providers to
include outcome standards. The commissioner must include in the
amended rules criteria to remove an education service provider
from the listing of approved service providers if they fail to
meet the outcome standards.
new text end

Sec. 69. new text begin MODEL POLICY; INTIMIDATION AND BULLYING.
new text end

new text begin The commissioner of education shall work with the Minnesota
School Boards Association to develop a model policy that
prohibits intimidating and bullying as required in Minnesota
Statutes, section 121A.0695, subdivision 2.
new text end

Sec. 70. new text begin SCHOOL FINANCE STUDY.
new text end

new text begin (a) The commissioner of education must contract with an
independent contractor that has extensive experience working
with various states on education finance systems to continue and
complete the work done by the governor's education funding task
force included in the June 2004 report, Investing in Our
Future. The commissioner must contract with a firm other than
the consulting firm performing services for and submitting a
report on behalf of the governor's education funding task force.
new text end

new text begin (b) The contractor must:
new text end

new text begin (1) conduct an in-depth analysis of the governor's
education funding task force report, Investing in Our Future,
dated June 2004, focusing on the data produced by the
professional judgment panel study included in the report;
new text end

new text begin (2) convene a meeting in Minnesota to help gather any
necessary additional data that is not contained in the
governor's task force report or to further validate some of the
report's existing data;
new text end

new text begin (3) determine the dollar value of an instructional services
allocation, including cost estimates for each school district
adjusting the allocation for individual student and school
district characteristics; and
new text end

new text begin (4) conduct outreach and support to explain its findings to
appropriate officials in Minnesota.
new text end

new text begin (c) In addition to the requirements in paragraph (b), the
contractor must analyze data from Minnesota school districts
that have proven to be successful in educating students to meet
the state's academic standards. The contractor must use a
statistical analysis to help explain differences in spending
across school districts while controlling for student
performance.
new text end

new text begin (d) The commissioner must report on the findings on the
contract to the legislative committees having jurisdiction over
kindergarten through grade 12 finance before December 15, 2005.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 71. new text begin EVALUATING THE EDUCATIONAL IMPACT OF FEDERAL AND
STATE TESTS ON KINDERGARTEN THROUGH GRADE 12 STUDENTS.
new text end

new text begin (a) The Office of Educational Accountability under
Minnesota Statutes, section 120B.31, subdivision 3, must
evaluate the educational impact of the federal No Child Left
Behind Act and other state and federal laws requiring school
districts to administer tests to kindergarten through grade 12
students. The evaluation at least must include:
new text end

new text begin (1) potential educational costs to kindergarten through
grade 12 public school students through the 2013-2014 school
year of complying with testing requirements;
new text end

new text begin (2) educational factors that may increase or decrease the
educational costs identified under clause (1);
new text end

new text begin (3) the impact of testing requirements on the statewide
accountability system, teacher training and employment, and
curriculum development; and
new text end

new text begin (4) the relationship between the testing requirements,
postsecondary entrance requirements, and the expectations of the
business community regarding the educational preparation of new
high school graduates seeking employment.
new text end

new text begin The Office of Educational Accountability, at its
discretion, may include additional areas for evaluation.
new text end

new text begin (b) In preparing this evaluation, the Office of Educational
Accountability must select a sample of school districts to
explore in depth the areas listed in paragraph (a). The school
districts must be of varying sizes and geographical locations,
and must include some districts with schools designated by the
state Department of Education as "needing improvement" under the
No Child Left Behind Act. The Office of Educational
Accountability must contact school officials, employees of
postsecondary institutions, and representatives of business
communities from throughout the state to collect information and
perceptions related to the evaluation. State and local entities
must cooperate with and assist the Office of Educational
Accountability with this evaluation at the request of the Office
of Educational Accountability.
new text end

new text begin (c) The Office of Educational Accountability must submit
the evaluation in writing to the chairs of the house of
representatives and senate committees having jurisdiction over
kindergarten through grade 12 education policy and finance by
February 15, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 72. new text begin LICENSED STUDENT SUPPORT SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Access to services. new text end

new text begin School districts and
the Department of Education shall work to provide for students'
educational achievement, to provide for student safety, and to
enhance student physical, emotional, and social well-being by
providing access to licensed student support services, such as
licensed school nurses, licensed school counselors, licensed
school social workers, licensed alcohol and drug abuse
counselors, and licensed school psychologists.
new text end

new text begin Subd. 2. new text end

new text begin Funding. new text end

new text begin School districts and the Department of
Education shall explore opportunities for obtaining additional
funds to improve students' access to needed licensed student
support services including, at least, medical assistance
reimbursements, local collaborative time study funds, federal
funds, public health funds, and specifically designated funds.
new text end

new text begin Subd. 3. new text end

new text begin Improving access. new text end

new text begin School districts and the
Department of Education must consider nationally recommended
licensed staff-to-student ratios, work loads, and best practices
when working to improve student access to needed licensed
student support services.
new text end

Sec. 73. new text begin BOARD OF TEACHING REPORT.
new text end

new text begin By January 16, 2006, the Board of Teaching, in consultation
with the Department of Education and other education
stakeholders, must prepare and submit to the house of
representatives and senate committees having jurisdiction over
kindergarten through grade 12 education policy and finance
proposed licensure requirements for teachers of
interdisciplinary curriculum to facilitate learning in
state-approved innovative schools and programs.
new text end

Sec. 74. new text begin PROFESSIONAL COMPENSATION FOR TEACHERS TASK
FORCE.
new text end

new text begin The commissioner of education must convene a task force on
professional compensation models for teachers. The commissioner
shall report the task force findings to the legislative
committees having jurisdiction over kindergarten through grade
12 education funding and policy issues by December 16, 2006.
The task force must recommend a professional compensation model
designed to improve teacher performance and student
achievement. The task force must recommend a method to
transition from the current pilot alternative compensation sites
to a statewide program, including recommendations for funding a
statewide program.
new text end

Sec. 75. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Improved school finance system contract. new text end

new text begin For a
contract to follow up on the work of the governor's education
funding task force:
new text end

new text begin $ 175,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin Subd. 3. new text end

new text begin Staff development state match. new text end

new text begin For the state
match for staff development under Minnesota Statutes, section
122A.61:
new text end

new text begin $45,939,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $47,883,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Special School District No. 6, South St. Paul, may use its
state match to implement its elementary and middle school
international baccalaureate program expansion.
new text end

new text begin Subd. 4. new text end

new text begin Professional compensation for teachers task
force.
new text end

new text begin For the professional compensation for teachers task
force:
new text end

new text begin $ 200,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 200,000 new text end new text begin ..... new text end new text begin 2007
new text end

Sec. 76. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 121A.23; 122A.414; and
122A.415, are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2004, section 121A.66,
subdivision 5, is amended to read:


Subd. 5.

Emergency.

"Emergency" means a situation in
which immediate intervention is necessary to protect a pupil or
other individual from physical injury or to prevent new text begin serious
new text end property damage.

Sec. 2.

Minnesota Statutes 2004, section 121A.66, is
amended by adding a subdivision to read:


new text begin Subd. 6. new text end

new text begin Positive behavioral interventions and
supports.
new text end

new text begin "Positive behavioral interventions and supports"
means those strategies used to improve the school environment
and teach pupils skills likely to increase pupil ability to
exhibit appropriate behaviors.
new text end

Sec. 3.

Minnesota Statutes 2004, section 121A.66, is
amended by adding a subdivision to read:


new text begin Subd. 7. new text end

new text begin Time-out. new text end

new text begin "Time-out" means:
new text end

new text begin (1) a contingent observation, which is not a regulated
intervention, and involves instructing the pupil to leave the
school activity during the school day and not participate for a
period of time, but to observe the activity and listen to the
discussion from a time-out area within the same setting;
new text end

new text begin (2) an exclusionary time-out, which is not a regulated
intervention, and involves instructing the pupil to leave the
school activity during the school day and not participate in or
observe the classroom activity, but to go to another area from
which the pupil may leave; or
new text end

new text begin (3) a locked time-out, which is a regulated intervention,
and involves involuntarily removing the pupil from the school
activity during the school day and placing the pupil in a
specially designed and continuously supervised isolation room
that the pupil is prevented from leaving.
new text end

Sec. 4.

Minnesota Statutes 2004, section 121A.67, is
amended to read:


121A.67 AVERSIVE AND DEPRIVATION PROCEDURES.

new text begin Subdivision 1. new text end

new text begin Rules. new text end

The commissionernew text begin , after
consultation with interested parent organizations and advocacy
groups, the Minnesota Administrators for Special Education, the
Minnesota Association of School Administrators, Education
Minnesota, the Minnesota School Boards Association, the
Minnesota Police Officers Association, a representative of a
bargaining unit that represents paraprofessionals, the
Elementary School Principals Association, and the Secondary
School Principals Association,
new text end must deleted text begin adopt deleted text end new text begin amend new text end rules governing
the use of aversive and deprivation procedures by school
district employees or persons under contract with a school
district. The rules must:

(1) promote the use of positive deleted text begin approaches deleted text end new text begin behavioral
interventions and supports
new text end and must not encourage or require the
use of aversive or deprivation procedures;

(2) require that planned application of aversive and
deprivation procedures new text begin only new text end be deleted text begin a part of an deleted text end new text begin instituted after
completing a functional behavior assessment and developing a
behavior intervention plan that is included in or maintained
with the
new text end individual education plan;

(3) require deleted text begin parents or guardians to be notified after the
use of
deleted text end new text begin educational personnel to notify a parent or guardian of a
pupil with an individual education plan on the same day
new text end aversive
or deprivation procedures new text begin are used new text end in an emergency new text begin or in writing
within two school days if district personnel are unable to
provide same-day notice
new text end ;

(4) establish health and safety standards for the use of
new text begin locked new text end time-out procedures that require a safe environment,
continuous monitoring of the child, ventilation, deleted text begin and deleted text end adequate
spacenew text begin , a locking mechanism that disengages automatically when
not continuously engaged by school personnel, and full
compliance with state and local fire and building codes,
including state rules on time-out rooms
new text end ; deleted text begin and
deleted text end

(5) contain a list of prohibited proceduresnew text begin ;
new text end

new text begin (6) consolidate and clarify provisions related to behavior
intervention plans;
new text end

new text begin (7) require school districts to register with the
commissioner any room used for locked time-out, which the
commissioner must monitor by making announced and unannounced
on-site visits;
new text end

new text begin (8) place a student in locked time-out only if the
intervention is:
new text end

new text begin (i) part of the comprehensive behavior intervention plan
that is included in or maintained with the student's individual
education plan, and the plan uses positive behavioral
interventions and supports, and data support its continued use;
or
new text end

new text begin (ii) used in an emergency for the duration of the emergency
only; and
new text end

new text begin (9) require a providing school district or cooperative to
establish an oversight committee composed of at least one member
with training in behavioral analysis and other appropriate
education personnel to annually review aggregate data regarding
the use of aversive and deprivation procedures
new text end .

new text begin Subd. 2.new text end

new text begin Removal by peace officer.new text end

new text begin If a pupil who has an
individual education plan is restrained or removed from a
classroom, school building, or school grounds by a peace officer
at the request of a school administrator or a school staff
person during the school day twice in a 30-day period, the
pupil's individual education program team must meet to determine
if the pupil's individual education plan is adequate or if
additional evaluation is needed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 1 of this section is
effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2004, section 122A.15, is
amended by adding a subdivision to read:


new text begin Subd. 3.new text end

new text begin Student support services advisory committee;
district plan.
new text end

new text begin (a) A student support services advisory
committee composed of ten members selected by the commissioner
is established under section 15.059. The commissioner must
select one committee member from each of the following
organizations:
new text end

new text begin (1) the Minnesota Department of Education;
new text end

new text begin (2) the Minnesota School Boards Association;
new text end

new text begin (3) the Minnesota Association of School Administrators;
new text end

new text begin (4) the Minnesota School Social Work Association;
new text end

new text begin (5) the School Nurse Organization of Minnesota;
new text end

new text begin (6) the Minnesota School Psychologists Association;
new text end

new text begin (7) the Minnesota School Counselors Association;
new text end

new text begin (8) the Minnesota Association of Resources for Recovery and
Chemical Health;
new text end

new text begin (9) the Minnesota Administrators for Special Education; and
new text end

new text begin (10) the Minnesota Parent Teachers Association.
new text end

new text begin (b) The committee must:
new text end

new text begin (1) establish a method for identifying student needs that
are barriers to learning;
new text end

new text begin (2) identify alternatives for integrating student support
services into public schools;
new text end

new text begin (3) recommend support staff to student ratios and best
practices for providing student support services premised on
evidence-based practice;
new text end

new text begin (4) identify the substance and extent of the work that
student support services staff are trained and licensed to
provide and the characteristics of the student populations they
serve;
new text end

new text begin (5) recommend how school districts can most appropriately
integrate student support services into the education program;
and
new text end

new text begin (6) recommend public and nonpublic revenue sources that
school districts can use to fund student support services
including, among other sources, medical assistance
reimbursements, private health insurance, local collaborative
time study funds, federal funds, public health funds, and
specifically designated funds such as school safety levies and
district general funds, among other funds.
new text end

new text begin (c) The committee must consider the oral and written
testimony of school district personnel and parents and students
in complying with paragraph (b). The committee must submit
periodic recommendations about student support services to the
commissioner and to the committees of the legislature having
jurisdiction over birth to age 21 education policy and budget
issues. The commissioner must consider the committee's
recommendations in deciding whether to develop and maintain a
model district plan for student support services. If the
commissioner develops and maintains a model plan, the
commissioner also must decide whether to transmit the plan to
school districts, whether to require the districts to adopt and
maintain a district plan for providing student support services
that meets the criteria recommended by the advisory committee,
and whether to require the districts to submit the plan for
biennial review.
new text end

new text begin (d) Notwithstanding section 15.059, subdivision 5, the
committee expires on June 30, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to the 2006-2007 school
year and later.
new text end

Sec. 6.

Minnesota Statutes 2004, section 123B.92,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For purposes of this section
and section 125A.76, the terms defined in this subdivision have
the meanings given to them.

(a) "Actual expenditure per pupil transported in the
regular and excess transportation categories" means the quotient
obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular
category, as defined in paragraph (b), clause (1), and the
excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the
district's school bus fleet and mobile units computed on a
straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades
1 to 12 for all students in the district and 12-1/2 percent per
year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the
district's type three school buses, as defined in section
169.01, subdivision 6, clause (5), which must be used a majority
of the time for pupil transportation purposes, computed on a
straight line basis at the rate of 20 percent per year of the
cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the
regular category, as defined in paragraph (b), clause (1), and
the excess category, as defined in paragraph (b), clause (2).

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

(1) Regular transportation is:

(i) transportation to and from school during the regular
school year for resident elementary pupils residing one mile or
more from the public or nonpublic school they attend, and
resident secondary pupils residing two miles or more from the
public or nonpublic school they attend, excluding desegregation
transportation and noon kindergarten transportation; but with
respect to transportation of pupils to and from nonpublic
schools, only to the extent permitted by sections 123B.84 to
123B.87;

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

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

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

(v) transportation to and from school during the regular
school year required under subdivision 3 for nonresident
elementary pupils when the distance from the attendance area
border to the public school is one mile or more, and for
nonresident secondary pupils when the distance from the
attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon
kindergarten transportation.

For the purposes of this paragraph, a district may
designate a licensed day care facility, respite care facility,
the residence of a relative, or the residence of a person chosen
by the pupil's parent or guardian as the home of a pupil for
part or all of the day, if requested by the pupil's parent or
guardian, and if that facility or residence is within the
attendance area of the school the pupil attends.

(2) Excess transportation is:

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

(ii) transportation to and from school during the regular
school year required under subdivision 3 for nonresident
secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two
miles from the public school they attend, and for nonresident
pupils when the distance from the attendance area border to the
school is less than one mile from the school and who are
transported because of extraordinary traffic, drug, or crime
hazards.

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

(4) "Transportation services for pupils with disabilities"
is:

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

(ii) necessary transportation of pupils with disabilities
from home or from school to other buildings, including centers
such as developmental achievement centers, hospitals, and
treatment centers where special instruction or services required
by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65
are provided, within or outside the district where services are
provided;

(iii) necessary transportation for resident pupils with
disabilities required by sections 125A.12, and 125A.26 to
125A.48;

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

(v) transportation from one educational facility to another
within the district for resident pupils enrolled on a
shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to
125A.48, for resident pupils with disabilities who are provided
special instruction and services on a shared-time basis new text begin or if
resident pupils are not transported, the costs of necessary
travel between public and private schools or neutral
instructional sites by essential personnel employed by the
district's program for children with a disability
new text end ;

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

(vii) services described in clauses (i) to (vi), when
provided for pupils with disabilities in conjunction with a
summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year
program established under section 124D.128.

new text begin For purposes of computing special education base revenue
under section 125A.76, subdivision 2, the cost of providing
transportation for children with disabilities includes (A) the
additional cost of transporting a homeless student from a
temporary nonshelter home in another district to the school of
origin, or a formerly homeless student from a permanent home in
another district to the school of origin but only through the
end of the academic year; and (B) depreciation on district-owned
school buses purchased after July 1, 2005, and used primarily
for transportation of pupils with disabilities, calculated
according to paragraph (a), clauses (ii) and (iii).
Depreciation costs included in the disabled transportation
category must be excluded in calculating the actual expenditure
per pupil transported in the regular and excess transportation
categories according to paragraph (a).
new text end

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another
within the district for resident pupils enrolled on a
shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under
clause (4);

(ii) transportation within district boundaries between a
nonpublic school and a public school or a neutral site for
nonpublic school pupils who are provided pupil support services
pursuant to section 123B.44; and

(iii) late transportation home from school or between
schools within a district for nonpublic school pupils involved
in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to
provide facilities for educational programs and services,
including diagnostic testing, guidance and counseling services,
and health services. A mobile unit located off nonpublic school
premises is a neutral site as defined in section 123B.41,
subdivision 13.

Sec. 7.

Minnesota Statutes 2004, section 124D.11,
subdivision 5, is amended to read:


Subd. 5.

Special education aid.

new text begin (a) new text end Except as provided
in subdivision 2, special education aid must be paid to a
charter school according to section 125A.76, as though it were a
school district.

new text begin (b) For fiscal year 2006,new text end the charter school may charge
tuition to the district of residence as new text begin follows:
new text end

new text begin (1) if the charter school does not receive general
education revenue on behalf of the student according to
subdivision 1, tuition shall be charged as
new text end provided in section
125A.11deleted text begin .deleted text end new text begin ; or
new text end

new text begin (2) if the charter school receives general education
revenue on behalf of the student according to subdivision 1,
tuition shall be charged as provided in section 127A.47,
subdivision 7, paragraph (d).
new text end

new text begin (c) For fiscal year 2007 and later, the special education
aid paid to the charter school shall be adjusted as follows:
new text end

new text begin (1) if the charter school does not receive general
education revenue on behalf of the student according to
subdivision 1, the aid shall be adjusted as provided in section
125A.11; or
new text end

new text begin (2) if the charter school receives general education
revenue on behalf of the student according to subdivision 1, the
aid shall be adjusted as provided in section 127A.47,
subdivision 7, paragraph (d).
new text end

new text begin (d) Notwithstanding paragraphs (b) and (c), sections
125A.11 and 127A.47, subdivision 7, paragraph (d), for charter
schools where fewer than 30 percent of enrolled students receive
special education and related services, the tuition calculations
or aid adjustments must be based on the lesser of the charter
school's or the resident district's actual special education
cost per service hour for the student's primary disability area,
or grouping of disability areas used by the school for tuition
billing. For fiscal year 2006, the charter school may submit a
tuition bill in an amount equal to 70 percent of its remaining
unreimbursed special education costs to the commissioner. For
fiscal year 2007 and later, the commissioner must calculate the
remaining unreimbursed special education costs. The
commissioner must reimburse the charter school in an amount
equal to 70 percent of the school's remaining unreimbursed
special education costs from the charter school special
education reimbursement account according to section 125A.795.
new text end

Sec. 8.

new text begin [124D.4531] CAREER AND TECHNICAL LEVY.
new text end

new text begin Subdivision 1. new text end

new text begin Career and technical levy. new text end

new text begin (a) A district
with a career and technical program approved under this section
for the fiscal year in which the levy is certified may levy an
amount equal to the lesser of:
new text end

new text begin (1) $80 times the district's average daily membership in
grades 10 through 12 for the fiscal year in which the levy is
certified; or
new text end

new text begin (2) 25 percent of approved expenditures in the fiscal year
in which the levy is certified for the following:
new text end

new text begin (i) salaries paid to essential, licensed personnel
providing direct instructional services to students in that
fiscal year for services rendered in the district's approved
career and technical education programs;
new text end

new text begin (ii) contracted services provided by a public or private
agency other than a Minnesota school district or cooperative
center under subdivision 7;
new text end

new text begin (iii) necessary travel between instructional sites by
licensed career and technical education personnel;
new text end

new text begin (iv) necessary travel by licensed career and technical
education personnel for vocational student organization
activities held within the state for instructional purposes;
new text end

new text begin (v) curriculum development activities that are part of a
five-year plan for improvement based on program assessment;
new text end

new text begin (vi) necessary travel by licensed career and technical
education personnel for noncollegiate credit-bearing
professional development; and
new text end

new text begin (vii) specialized vocational instructional supplies.
new text end

new text begin (b) Up to ten percent of a district's career and technical
levy may be spent on equipment purchases. Districts using the
career and technical levy for equipment purchases must report to
the department on the improved learning opportunities for
students that result from the investment in equipment.
new text end

new text begin (c) The district must recognize the full amount of this
levy as revenue for the fiscal year in which it is certified.
new text end

new text begin Subd. 2. new text end

new text begin Allocation from cooperative centers and
intermediate districts.
new text end

new text begin For purposes of this section, a
cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education
programs among participating districts.
new text end

new text begin Subd. 3. new text end

new text begin Levy guarantee. new text end

new text begin Notwithstanding subdivision 1,
the career and technical education levy for a district is not
less than the lesser of:
new text end

new text begin (1) the district's career and technical education levy
authority for the previous fiscal year; or
new text end

new text begin (2) 100 percent of the approved expenditures for career and
technical programs included in subdivision 1, paragraph (b), for
the fiscal year in which the levy is certified.
new text end

new text begin Subd. 4.new text end

new text begin District reports.new text end

new text begin Each district or cooperative
center must report data to the department for all career and
technical education programs as required by the department to
implement the career and technical levy formula.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2009.
new text end

Sec. 9.

Minnesota Statutes 2004, section 124D.59,
subdivision 2, is amended to read:


Subd. 2.

Pupil of limited english proficiency.

(a)
"Pupil of limited English proficiency" means a pupil in
kindergarten through grade 12 who meets the following
requirements:

(1) the pupil, as declared by a parent or guardian first
learned a language other than English, comes from a home where
the language usually spoken is other than English, or usually
speaks a language other than English; and

(2) the pupil is determined by developmentally appropriate
measures, which might include observations, teacher judgment,
parent recommendations, or developmentally appropriate
assessment instruments, to lack the necessary English skills to
participate fully in classes taught in English.

(b) Notwithstanding paragraph (a), a pupil in grades 4
through 12 who was enrolled in a Minnesota public school on the
dates during the previous school year when a commissioner
provided assessment that measures the pupil's emerging academic
English was administered, shall not be counted as a pupil of
limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17,
and shall not generate state limited English proficiency aid
under section 124D.65, subdivision 5, unless the pupil scored
below the state cutoff score on an assessment measuring emerging
academic English provided by the commissioner during the
previous school year.

(c) Notwithstanding paragraphs (a) and (b), a pupil in
kindergarten through grade 12 shall not be counted as a pupil of
limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17,
and shall not generate state limited English proficiency aid
under section 124D.65, subdivision 5, if:

(1) the pupil is not enrolled during the current fiscal
year in an educational program for pupils of limited English
proficiency in accordance with sections 124D.58 to 124D.64; or

(2) the pupil has generated deleted text begin five deleted text end new text begin seven new text end or more years of
average daily membership in Minnesota public schools since July
1, 1996.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal years 2006 and 2007 if the basic formula allowance under
Minnesota Statutes, section 126C.10, subdivision 2, does not
grow by at least three and one-half percent each year, excluding
roll-ins.
new text end

Sec. 10.

Minnesota Statutes 2004, section 125A.11,
subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for revenue for fiscal year 2006.
new text end

Sec. 11.

Minnesota Statutes 2004, section 125A.24, is
amended to read:


125A.24 PARENT ADVISORY COUNCILS.

In order to increase the involvement of parents of children
with disabilities in district policy making and decision making,
school districts must have a special education advisory council
that is incorporated into the district's special education
system plan.

(1) This advisory council may be established either for
individual districts or in cooperation with other districts who
are members of the same special education cooperative.

(2) A district may set up this council as a subgroup of an
existing board, council, or committee.

(3) At least half of the designated council members must be
parents of students with a disability. new text begin The council must include
at least one member who is a parent of a nonpublic school
student with a disability or an employee of a nonpublic school
if a nonpublic school is located in the district. Each local
council must meet no less than once each year.
new text end The number of
members, frequency of meetings, and operational procedures are
to be locally determined.

Sec. 12.

Minnesota Statutes 2004, section 125A.28, is
amended to read:


125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not
more than 25 members is established, in compliance with Public
Law 102-119, section 682. The members must be appointed by the
governor. Council members must elect the council chair. The
representative of the commissioner may not serve as the chair.
The council must be composed of at least five parents, including
persons of color, of children with disabilities under age 12,
including at least three parents of a child with a disability
under age seven, five representatives of public or private
providers of services for children with disabilities under age
five, including a special education director, county social
service director, local Head Start director, and a community
health services or public health nursing administrator, one
member of the senate, one member of the house of
representatives, one representative of teacher preparation
programs in early childhood-special education or other
preparation programs in early childhood intervention, at least
one representative of advocacy organizations for children with
disabilities under age five, one physician who cares for young
children with special health care needs, one representative each
from the commissioners of commerce, education, health, human
services, a representative from the state agency responsible for
child care, and a representative from Indian health services or
a tribal council. Section 15.059, subdivisions 2 to 5, apply to
the council. The council must meet at least quarterly.

The council must address methods of implementing the state
policy of developing and implementing comprehensive,
coordinated, multidisciplinary interagency programs of early
intervention services for children with disabilities and their
families.

The duties of the council include recommending policies to
ensure a comprehensive and coordinated system of all state and
local agency services for children under age five with
disabilities and their families. The policies must address how
to incorporate each agency's services into a unified state and
local system of multidisciplinary assessment practices,
individual intervention plans, comprehensive systems to find
children in need of services, methods to improve public
awareness, and assistance in determining the role of interagency
early intervention committees.

deleted text begin By September 1 deleted text end new text begin On the date that Minnesota Part C Annual
Performance Report is submitted to the federal Office of Special
Education
new text end , the council must recommend to the governor and the
commissioners of education, health, human services, commerce,
and employment and economic development policies for a
comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the State
Interagency Coordinating Council expires on June 30, deleted text begin 2005 deleted text end new text begin 2009new text end .

Sec. 13.

Minnesota Statutes 2004, section 125A.51, is
amended to read:


125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
EDUCATION AND TRANSPORTATION.

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

(a) The school district of residence of the pupil is the
district in which the pupil's parent or guardian resides.

(b) When parental rights have been terminated by court
order, the legal residence of a child placed in a residential or
foster facility for care and treatment is the district in which
the child resides.

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

(d) When a pupil without a disability is temporarily placed
for care and treatment in a day program and the pupil continues
to live within the district of residence during the care and
treatment, the district of residence must provide instruction
and necessary transportation to and from the treatment facility
for the pupil. Transportation shall only be provided by the
district during regular operating hours of the district. The
district may provide the instruction at a school within the
district of residence, at the pupil's residence, or in the case
of a placement outside of the resident district, in the district
in which the day treatment program is located by paying tuition
to that district. The district of placement may contract with a
facility to provide instruction by teachers licensed by the
state Board of Teaching.

(e) When a pupil without a disability is temporarily placed
in a residential program for care and treatment, the district in
which the pupil is placed must provide instruction for the pupil
and necessary transportation while the pupil is receiving
instruction, and in the case of a placement outside of the
district of residence, the nonresident district must bill the
district of residence for the actual cost of providing the
instruction for the regular school year and for summer school,
excluding transportation costs.

new text begin (f) Notwithstanding paragraph (e), if the pupil is homeless
and placed in a public or private homeless shelter, then the
district that enrolls the pupil under section 127A.47,
subdivision 2, shall provide the transportation, unless the
district that enrolls the pupil and the district in which the
pupil is temporarily placed agree that the district in which the
pupil is temporarily placed shall provide transportation.
new text end When
a pupil without a disability is temporarily placed in a
residential program outside the district of residence, the
administrator of the court placing the pupil must send timely
written notice of the placement to the district of residence.
The district of placement may contract with a residential
facility to provide instruction by teachers licensed by the
state Board of Teaching. For purposes of this section, the state
correctional facilities operated on a fee-for-service basis are
considered to be residential programs for care and treatment.

deleted text begin (f) deleted text end new text begin (g) new text end The district of residence must include the pupil in
its residence count of pupil units and pay tuition as provided
in section 123A.488 to the district providing the instruction.
Transportation costs must be paid by the district providing the
transportation and the state must pay transportation aid to that
district. For purposes of computing state transportation aid,
pupils governed by this subdivision must be included in the
disabled transportation category new text begin if the pupils cannot be
transported on a regular school bus route without special
accommodations
new text end .

Sec. 14.

Minnesota Statutes 2004, section 125A.76,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

(a) "Base year" for fiscal year 1998 and later fiscal years
means the second fiscal year preceding the fiscal year for which
aid will be paid.

(b) "Basic revenue" has the meaning given it in section
126C.10, subdivision 2. For the purposes of computing basic
revenue pursuant to this section, each child with a disability
shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural
liaisons, related services, and support services staff providing
direct services to students. Essential personnel may also
include special education paraprofessionals or clericals
providing support to teachers and students by preparing
paperwork and making arrangements related to special education
compliance requirements, including parent meetings and
individual education plans.

(d) "Average daily membership" has the meaning given it in
section 126C.05.

(e) "Program growth factor" means 1.046 for fiscal year
2003deleted text begin , and deleted text end new text begin ;new text end 1.0 for fiscal deleted text begin year deleted text end new text begin years new text end 2004new text begin , 2005, and 2006;
1.042 for fiscal year 2007; and 1.046 for fiscal year 2008
new text end and
later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2004, section 125A.76,
subdivision 3, is amended to read:


Subd. 3.

Adjusted special education base revenue.

For
fiscal year deleted text begin 1997 deleted text end new text begin 2006 new text end and later, a district's adjusted special
education base revenue equals the district's special education
base revenue times the ratio of the district's deleted text begin average daily
membership
deleted text end new text begin unduplicated count of students with an individual
education plan
new text end for the current school year to the district's
deleted text begin average daily membership deleted text end new text begin unduplicated count of students with an
individual education plan
new text end for the base year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2004, section 125A.76,
subdivision 4, is amended to read:


Subd. 4.

State total special education aid.

The state
total special education aid for fiscal year 2004 equals
$530,642,000. The state total special education aid for fiscal
year 2005 equals $529,164,000. new text begin The state total special
education aid for fiscal year 2006 equals $528,846,000.
new text end The
state total special education aid for later fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2004, section 125A.79,
subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

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

(1) expenditures for teachers' salaries, contracted
services, supplies, equipment, and transportation services
eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections
125A.03 to 125A.24 and 125A.65 for services eligible for revenue
under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services,
supplies, and equipment under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76,
subdivision 2.

(b) deleted text begin "General revenue" means for fiscal year 1996, the sum
of the general education revenue according to section 126C.10,
subdivision 1, as adjusted according to section 127A.47,
subdivision 7, plus the total referendum revenue according to
section 126C.17, subdivision 4. For fiscal years 1997 and
later,
deleted text end "General revenue" means the sum of the general education
revenue according to section 126C.10, subdivision 1, as adjusted
according to section 127A.47, subdivisions 7 and 8, plus the
total referendum revenue minus transportation sparsity revenue
minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in
section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year
2003deleted text begin , and deleted text end new text begin ;new text end 1.0 for fiscal deleted text begin year deleted text end new text begin years new text end 2004 new text begin and 2005;new text end and new text begin 1.02
for fiscal year 2006 and
new text end later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2004, section 125A.79,
subdivision 6, is amended to read:


Subd. 6.

State total special education excess cost aid.

The state total special education excess cost aid for fiscal
year 2004 equals $92,067,000. The state total special education
aid for fiscal year 2005 equals $91,811,000. new text begin The state total
special education excess cost aid for fiscal year 2006 equals
$91,784,000.
new text end The state total special education excess cost aid
for fiscal year deleted text begin 2006 deleted text end new text begin 2007 new text end and later fiscal years equals:

(1) the state total special education excess cost aid for
the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal yearnew text begin ;
new text end

new text begin (4) all less the amount transferred into the charter school
special education reimbursement account under section 125A.795
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

new text begin [125A.795] CHARTER SCHOOL SPECIAL EDUCATION
REIMBURSEMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin The charter school
special education reimbursement account is created in the state
general fund.
new text end

new text begin Subd. 2. new text end

new text begin Revenue. new text end

new text begin The estimated amount necessary to pay
for the state share of net unreimbursed special education costs
of charter school pupils with a disability is transferred from
the appropriation for special education excess cost aid to the
charter school special education reimbursement account.
new text end

new text begin Subd. 3.new text end

new text begin Review.new text end

new text begin The commissioner of education must
examine the tuition bills from charter schools and may adjust
the bills in the same manner as authorized under section 125A.80.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for revenue for fiscal year 2006.
new text end

Sec. 20.

Minnesota Statutes 2004, section 126C.40,
subdivision 1, is amended to read:


Subdivision 1.

To lease building or land.

(a) When an
independent or a special school district or a group of
independent or special school districts finds it economically
advantageous to rent or lease a building or land for any
instructional purposes or for school storage or furniture
repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is
insufficient for this purpose, it may apply to the commissioner
for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under
this subdivision must contain financial justification for the
proposed levy, the terms and conditions of the proposed lease,
and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under
this subdivision must include: the reasonableness of the price,
the appropriateness of the space to the proposed activity, the
feasibility of transporting pupils to the leased building or
land, conformity of the lease to the laws and rules of the state
of Minnesota, and the appropriateness of the proposed lease to
the space needs and the financial condition of the district.
The commissioner must not authorize a levy under this
subdivision in an amount greater than 90 percent of the cost to
the district of renting or leasing a building or land for
approved purposes. The proceeds of this levy must not be used
for custodial or other maintenance services. A district may not
levy under this subdivision for the purpose of leasing or
renting a district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district
may not levy under this subdivision for the purpose of leasing:
(1) a newly constructed building used primarily for regular
kindergarten, elementary, or secondary instruction; or (2) a
newly constructed building addition or additions used primarily
for regular kindergarten, elementary, or secondary instruction
that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy
under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself only if the amount is
needed by the district to make payments required by a lease
purchase agreement, installment purchase agreement, or other
deferred payments agreement authorized by law, and the levy
meets the requirements of paragraph (c). A levy authorized for
a district by the commissioner under this paragraph may be in
the amount needed by the district to make payments required by a
lease purchase agreement, installment purchase agreement, or
other deferred payments agreement authorized by law, provided
that any agreement include a provision giving the school
districts the right to terminate the agreement annually without
penalty.

(e) The total levy under this subdivision for a district
for any year must not exceed $90 times the resident pupil units
for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been
submitted to the Department of Education after April 1, 1998,
the term "instructional purpose" as used in this subdivision
excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school
district to exceed the limit in paragraph (e) if the school
district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed
the limit in paragraph (e) for not more than five years if the
district meets the following criteria:

(1) the school district has been experiencing pupil
enrollment growth in the preceding five years;

(2) the purpose of the increased levy is in the long-term
public interest;

(3) the purpose of the increased levy promotes colocation
of government services; and

(4) the purpose of the increased levy is in the long-term
interest of the district by avoiding over construction of school
facilities.

(h) A school district that is a member of an intermediate
school district may include in its authority under this section
90 percent of the costs associated with leases of administrative
and classroom space for intermediate school district programs.
This authority must not exceed $22.50 times the adjusted
marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under
this section.

(i) In addition to the allowable capital levies in
paragraph (a), a district that is a member of the "Technology
and Information Education Systems" data processing joint board,
that finds it economically advantageous to enter into a lease
purchase agreement for a building for a group of school
districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to
the district within the total levy limit in paragraph (e).

new text begin (j) A school district that is a member of the Wright
Technical Center may include in its authority under this section
90 percent of the costs associated with leases of administrative
and classroom space at the Wright Technical Center. This
authority must not exceed $22.50 times the adjusted marginal
cost pupil units of the member districts. This authority may be
in addition to any other authority authorized under this section.
new text end

Sec. 21.

Minnesota Statutes 2004, section 126C.457, is
amended to read:


126C.457 CAREER AND TECHNICAL LEVY.

new text begin For taxes payable in 2006, 2007, and 2008,new text end a school
district may levy an amount equal to the greater of (1) $10,000,
or (2) the district's fiscal year 2001 entitlement for career
and technical aid under Minnesota Statutes 2000, section
124D.453. The district must recognize the full amount of this
levy as revenue for the fiscal year in which it is certified.
Revenue received under this section must be reserved and used
only for career and technical programs.

Sec. 22.

new text begin [127A.21] STATE COORDINATOR FOR WORLD
LANGUAGES.
new text end

new text begin (a) The commissioner of education shall designate a
full-time state coordinator for world languages education within
the Department of Education by July 1, 2005. The commissioner
shall seek input from the Quality Teaching Network before
designating or hiring the coordinator who must have classroom
experience teaching world languages. The coordinator, at a
minimum, shall:
new text end

new text begin (1) survey school districts in the state to:
new text end

new text begin (i) identify the types of existing world language programs
and exemplary model extended world languages programs; and
new text end

new text begin (ii) in consultation with Minnesota postsecondary
institutions, identify and address staff development needs of
current world language teachers and preservice teachers;
new text end

new text begin (2) identify successful extended world language programs
from other states;
new text end

new text begin (3) establish guidelines for a variety of model extended
world languages programs;
new text end

new text begin (4) research and recommend the funding necessary to
implement various models of extended world languages programs in
different languages; and
new text end

new text begin (5) support and monitor, using the most recent information
available, current world languages programs.
new text end

new text begin (b) For the purposes of this section, "extended world
languages program" means a world languages program:
new text end

new text begin (1) with a sequence of consecutive years in any of
kindergarten through grade 12, including, for example, sequences
of kindergarten through grade 12, grades 5 through 12, and
grades 7 through 12; and
new text end

new text begin (2) based on professionally recognized proficiency
guidelines, and which incorporates current best practices for
world language programs.
new text end

Sec. 23.

Minnesota Statutes 2004, section 127A.47,
subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

The general
education aid new text begin and special education aid new text end for districts must be
adjusted for each pupil attending a nonresident district under
sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and
124D.68. The adjustments must be made according to this
subdivision.

(a) General education aid paid to a resident district must
be reduced by an amount equal to the referendum equalization aid
attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a
pupil in programs listed in this subdivision must be increased
by an amount equal to the referendum equalization aid
attributable to the pupil in the nonresident district.

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

(d) new text begin For fiscal year 2006,new text end the district of residence must
pay tuition to a district or an area learning center, operated
according to paragraph deleted text begin (e) deleted text end new text begin (f)new text end , providing special instruction
and services to a pupil with a disability, as defined in section
125A.02, or a pupil, as defined in section 125A.51, who is
enrolled in a program listed in this subdivision. The tuition
must be equal to (1) the actual cost of providing special
instruction and services to the pupil, including a proportionate
amount for deleted text begin debt service and for capital expenditure facilities
and equipment, and debt service but not including any amount for
deleted text end new text begin special new text end transportation new text begin and unreimbursed building lease and debt
service costs for facilities used primarily for special
education
new text end , minus (2) new text begin if the pupil receives special instruction
and services outside the regular classroom for more than 60
percent of the school day,
new text end the amount of general education
revenue and new text begin referendum aid attributable to that pupil for the
portion of time the pupil receives special instruction and
services outside of the regular classroom, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, minus (3)
new text end special
education aid deleted text begin but not including any amount for transportation,
deleted text end attributable to that pupil, that is received by the district
providing special instruction and services. new text begin For purposes of
this paragraph, general education revenue and referendum aid
attributable to a pupil must be calculated using the serving
district's average general education revenue and referendum aid
per adjusted pupil unit.
new text end

(e) new text begin For fiscal year 2007 and later, special education aid
paid to a resident district must be reduced by an amount equal
to (1) the actual cost of providing special instruction and
services, including special transportation and unreimbursed
building lease and debt service costs for facilities used
primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section
125A.51, who is enrolled in a program listed in this
subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60
percent of the school day, the amount of general education
revenue and referendum aid attributable to that pupil for the
portion of time the pupil receives special instruction and
services outside of the regular classroom, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, minus (3) special
education aid attributable to that pupil, that is received by
the district providing special instruction and services. For
purposes of this paragraph, general education revenue and
referendum aid attributable to a pupil must be calculated using
the serving district's average general education revenue and
referendum aid per adjusted pupil unit. Special education aid
paid to the district providing special instruction and services
for the pupil, or to the fiscal agent district for a
cooperative, must be increased by the amount of the reduction in
the aid paid to the resident district. If the resident
district's special education aid is insufficient to make the
full adjustment, the remaining adjustment shall be made to other
state aids due to the district.
new text end

new text begin (f) new text end An area learning center operated by a service
cooperative, intermediate district, education district, or a
joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for
pupils rather than to have the general education revenue paid to
a fiscal agent school district. Except as provided in paragraph
(d) new text begin or (e)new text end , the district of residence must pay tuition equal to
at least 90 percent of the district average general education
revenue per pupil unit minus an amount equal to the product of
the formula allowance according to section 126C.10, subdivision
2, times .0485 new text begin for fiscal year 2006, and .0458 for fiscal year
2007 and later fiscal years
new text end , calculated without basic skills
revenue and transportation sparsity revenue, times the number of
pupil units for pupils attending the area learning center, plus
the amount of compensatory revenue generated by pupils attending
the area learning center.

Sec. 24.

Minnesota Statutes 2004, section 134.31, is
amended by adding a subdivision to read:


new text begin Subd. 6. new text end

new text begin Advisory committee. new text end

new text begin The commissioner shall
appoint an advisory committee of five members to advise the
staff of the Minnesota Library for the Blind and Physically
Handicapped on long-range plans and library services. Members
shall be people who use the library. Section 15.059 governs
this committee except that the committee shall not expire.
new text end

Sec. 25. 2005 Senate File No. 1879, article 3, section 3,
subdivision 32, if enacted, is amended to read:

Subd. 32.

Special education; regular.

For special
education aid under Minnesota Statutes, section 125A.75:

$528,846,000 ..... 2006

$ deleted text begin 527,446,000 deleted text end new text begin 546,111,000new text end ..... 2007

The 2006 appropriation includes $83,078,000 for 2005 and
$445,768,000 for 2006.

The 2007 appropriation includes $83,019,000 for 2006 and
$ deleted text begin 444,427,000 deleted text end new text begin 463,092,000 new text end for 2007.

Sec. 26. 2005 Senate File No. 1879, article 3, section 3,
subdivision 35, if enacted, is amended to read:

Subd. 35.

Special education; excess costs.

For excess
cost aid under Minnesota Statutes, section 125A.79, subdivision
7:

$91,784,000 ..... 2006

$ deleted text begin 91,595,000 deleted text end new text begin 93,430,000new text end ..... 2007

The 2006 appropriation includes $37,455,000 for 2005 and
$54,329,000 for 2006.

The 2007 appropriation includes $ deleted text begin 37,417,000 deleted text end new text begin 39,252,000 new text end for
2006 and $54,178,000 for 2007.

Sec. 27. 2005 Senate File No. 1879, article 3, section 3,
subdivision 36, if enacted, is amended to read:

Subd. 36.

Litigation costs for special education.

For
paying the costs a district incurs under Minnesota Statutes,
section 125A.75, subdivision 8:

$ deleted text begin 17,000 deleted text end new text begin 0new text end ..... 2006

$ deleted text begin 17,000 deleted text end new text begin 0new text end ..... 2007

Sec. 28. new text begin EMINENCE CREDENTIALING.
new text end

new text begin Subdivision 1. new text end

new text begin Goal. new text end

new text begin It is the goal of the state to
support the teaching and revitalization of the Dakota and
Anishinaabe languages. The Native Language Eminence
Credentialing Task Force is created to achieve this goal.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The Native Language Eminence
Credentialing Task Force consists of the following members:
new text end

new text begin (1) four members representing public schools with large
Native American populations appointed by the commissioner of
education;
new text end

new text begin (2) one member appointed by each federally recognized
Indian tribe in the state;
new text end

new text begin (3) one member appointed by each institution of higher
education that trains credentialed Dakota and Anishinaabe
language teachers;
new text end

new text begin (4) one member representing the Minnesota Historical
Society;
new text end

new text begin (5) the chair of the state Indian Affairs Council; and
new text end

new text begin (6) three native speakers of the Anishinaabe language and
three native speakers of the Dakota language, all appointed by
the Dakota Ojibwe Language Revitalization Alliance.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin (a) The Native Language
Eminence Credentialing Task Force is governed by Minnesota
Statutes, section 15.059.
new text end

new text begin (b) The task force shall elect a chair from its
membership. The commissioner of education shall provide staff
and administrative support for the task force.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The task force shall review and
recommend changes to the eminence credentials for teachers of
the Dakota and Anishinaabe languages in order to increase the
number of fluent "first speakers" who can teach the language and
the number of teachers of the Dakota and Anishinaabe languages
by considering and addressing the following:
new text end

new text begin (1) whether a rating system should be developed that
includes separate ratings for fluency of the spoken language,
writing and reading skills in language, and specifying which
dialect of the Anishinaabe and Dakota languages is being spoken;
new text end

new text begin (2) whether a strategy for determining the level of fluency
should be developed;
new text end

new text begin (3) consistency of evaluation of language fluency;
new text end

new text begin (4) identifying issues between tribal authority and state
law around strategies of language revitalization; and
new text end

new text begin (5) a strategy to provide affordable and accessible
language and culture credentials throughout Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The task force shall submit a report to
the legislature by January 15, 2006, to fulfill the duties of
the task force.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The task force expires upon
submission of the report on January 15, 2006.
new text end

Sec. 29. new text begin TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO
NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose; establishment. new text end

new text begin With the
congressional reauthorization of the federal Individuals with
Disabilities Education Act, a task force on the delivery of
special education services to nonpublic school students by
public school districts shall be established to compare and
evaluate how the individual needs of each child are being met,
if services are provided in the least restrictive environment,
and whether best practices and program efficiencies are being
used in the specific areas of transportation, location of
services, and shared time aid.
new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin The governor shall appoint the members
of the task force from each of the following:
new text end

new text begin (1) two members from the Department of Education, one
representing special education programs and policy and one
representing district finances;
new text end

new text begin (2) two special education teachers with one member from a
public school and one member from a nonpublic school;
new text end

new text begin (3) two special education administrators with one member
from a public school and one member from a nonpublic school;
new text end

new text begin (4) two members with one from each of two special education
advocacy organizations;
new text end

new text begin (5) two parents of children receiving special education
services with one member from a public school and one member
from a nonpublic school;
new text end

new text begin (6) two elementary school principals with one member from a
public school and one member from a nonpublic school;
new text end

new text begin (7) two superintendents with one member from a public
school district and one member from a nonpublic school district;
new text end

new text begin (8) two school business officials with one from a public
school and one from a nonpublic school; and
new text end

new text begin (9) two school board officials with one from a public
school and one from a nonpublic school.
new text end

new text begin The task force may select additional members to work on the
task force. The commissioner of education shall provide
necessary materials and assistance.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The task force shall submit a report by
January 15, 2006, to the house of representatives and senate
committees having jurisdiction over education on the delivery of
special education services to nonpublic school students by
public school districts, to compare and evaluate how the
individual needs of each child are being met in the least
restrictive environment, and whether best practices and program
efficiencies are being used.
new text end

new text begin Subd. 4.new text end

new text begin Expiration.new text end

new text begin This section expires January 31,
2006.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Nonpublic student special education task force.
new text end

new text begin For funding of a task force on delivery of special education to
nonpublic school students by public school districts:
new text end

new text begin $50,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin Subd. 3. new text end

new text begin Native language eminence credentialing task
force.
new text end

new text begin For funding of a task force to support the teaching and
revitalization of the Dakota and Anishinaabe languages:
new text end

new text begin $102,000 new text end new text begin ..... new text end new text begin 2006
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 125A.75, subdivision 8, is
repealed.
new text end

ARTICLE 4

TECHNOLOGY, FACILITIES, AND ACCOUNTING

Section 1.

Minnesota Statutes 2004, section 123B.42, is
amended by adding a subdivision to read:


new text begin Subd. 1a. new text end

new text begin Curriculum; electronic components. new text end

new text begin A school
district that provides curriculum to resident students that has
both physical and electronic components must make the electronic
component accessible to a resident student in a home school in
compliance with sections 120A.22 and 120A.24 at the request of
the student or the student's parent or guardian, provided that
the district does not incur more than an incidental cost as a
result of providing access electronically.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.492, is
amended to read:


123B.492 SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.

Notwithstanding Minnesota Rules, part 4717.3750, any pool
built before January 1, 1987, that was used for a one-meter
board high school diving program during the 2000-2001 school
year may be used for supervised competitive one-meter board high
school diving. Schools and school districts are strongly
encouraged to use a pool for supervised competitive high school
diving that meets the requirements of Minnesota Rules, part
4717.3750. A school or district using a pool for
supervised deleted text begin training practice for deleted text end competitive high school
diving new text begin for either training practice or competition new text end that does not
meet the requirements of Minnesota Rules, part 4717.3750, must
provide appropriate notice to parents and participants as to the
type of variance from Minnesota Rules and risk it may present.

Sec. 3.

Minnesota Statutes 2004, section 123B.54, as
amended by 2005 S. F. No. 1879, article 3, section 1, if
enacted, is amended to read:


123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $22,942,000 deleted text end new text begin $22,282,000 new text end in fiscal year 2008 and
deleted text begin $21,942,000 deleted text end new text begin $21,182,000 new text end in fiscal year 2009 and later are
appropriated from the general fund to the commissioner of
education for payment of debt service equalization aid under
section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by
the amount of any money specifically appropriated for the same
purpose in any year from any state fund.

Sec. 4.

new text begin [123B.715] ACOUSTICAL PERFORMANCE CRITERIA.
new text end

new text begin School districts are encouraged to consider the American
National Standards Institute acoustical performance criteria
design requirements and guidelines for schools of the maximum
background noise level and reverberation times when designing a
new building or remodeling an existing building.
new text end

Sec. 5.

Minnesota Statutes 2004, section 124D.095,
subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of this section, the
following terms have the meanings given them.

(a) "Online learning" is an interactive course or program
that delivers instruction new text begin from a teacher new text end to a student by
computer; is combined with other traditional delivery methods
that include frequent student assessment and may include actual
teacher contact time; and meets or exceeds state academic
standards.

(b) "Online learning provider" is a school district, new text begin an
intermediate school district,
new text end an organization of two or more
school districts operating under a joint powers agreement, or a
charter school located in Minnesota that provides online
learning to students.

(c) "Student" is a Minnesota resident enrolled in a school
under section 120A.22, subdivision 4, in kindergarten through
grade 12.

(d) "Online learning student" is a student enrolled in an
online learning course or program delivered by an online
provider under paragraph (b).

(e) "Enrolling district" means the school district or
charter school in which a student is enrolled under section
120A.22, subdivision 4, for purposes of compulsory attendance.

Sec. 6.

Minnesota Statutes 2004, section 124D.095,
subdivision 4, is amended to read:


Subd. 4.

Online learning parameters.

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

(b) An online learning student may:

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

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

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

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

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

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

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

Sec. 7.

Minnesota Statutes 2004, section 124D.095,
subdivision 8, is amended to read:


Subd. 8.

Financial arrangements.

(a) For a student
enrolled in an online learning course, the department must
calculate average daily membership and make payments according
to this subdivision.

(b) The initial online learning average daily membership
equals 1/12 for each semester course or a proportionate amount
for courses of different lengths. The adjusted online learning
average daily membership equals the initial online learning
average daily membership times .88.

(c) No online learning average daily membership shall be
generated if: (1) the student does not complete the online
learning course, or (2) the student is enrolled in online
learning provided by the enrolling district and the student was
new text begin either new text end enrolled in a Minnesota public school for the school year
before the school year in which the student first enrolled in
online learningnew text begin , or the student is enrolled in an instructional
program in which at least 40 percent of the total instructional
time takes place in the school's facilities. For students
enrolled in online learning according to clause (2), the
department shall calculate average daily membership according to
section 126C.05, subdivision 8
new text end .

(d) Online learning average daily membership under this
subdivision for a student currently enrolled in a Minnesota
public school and who was enrolled in a Minnesota public school
for the school year before the school year in which the student
first enrolled in online learning shall be used only for
computing average daily membership according to section 126C.05,
subdivision 19, paragraph (a), clause deleted text begin (ii) deleted text end new text begin (2)new text end , and for
computing online learning aid according to section deleted text begin 126C.24
deleted text end new text begin 124D.096new text end .

(e) Online learning average daily membership under this
subdivision for students not included in paragraph (c) or (d)
shall be used only for computing average daily membership
according to section 126C.05, subdivision 19, paragraph (a),
clause deleted text begin (ii) deleted text end new text begin (2)new text end , and for computing payments under paragraphs (f)
and (g).

(f) Subject to the limitations in this subdivision, the
department must pay an online learning provider an amount equal
to the product of the adjusted online learning average daily
membership for students under paragraph (e) times the student
grade level weighting under section 126C.05, subdivision 1,
times the formula allowance.

(g) The department must pay each online learning provider
100 percent of the amount in paragraph (f) within 45 days of
receiving final enrollment and course completion information
each quarter or semester.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2004, section 124D.095, is
amended by adding a subdivision to read:


new text begin Subd. 10. new text end

new text begin Online learning advisory council. new text end

new text begin (a) An
online learning advisory council is established under section
15.059, except that the term for each council member shall be
three years. The advisory council is composed of 12 members
from throughout the state who have demonstrated experience with
or interest in online learning. The members of the council
shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters
related to online learning and provide input to the department
in matters related, but not restricted, to:
new text end

new text begin (1) quality assurance;
new text end

new text begin (2) teacher qualifications;
new text end

new text begin (3) program approval;
new text end

new text begin (4) special education;
new text end

new text begin (5) attendance;
new text end

new text begin (6) program design and requirements; and
new text end

new text begin (7) fair and equal access to programs.
new text end

new text begin (b) The online learning advisory council under this
subdivision expires June 30, 2008.
new text end

Sec. 9.

new text begin [125B.26] TELECOMMUNICATIONS/INTERNET ACCESS
EQUITY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Costs to be submitted. new text end

new text begin (a) A district or
charter school shall submit its actual
telecommunications/Internet access costs for the previous fiscal
year, adjusted for any e-rate revenue received, to the
department by August 15 of each year as prescribed by the
commissioner. Costs eligible for reimbursement under this
program are limited to the following:
new text end

new text begin (1) ongoing or recurring telecommunications/Internet access
costs associated with Internet access, data lines, and video
links providing:
new text end

new text begin (i) the equivalent of one data line, video link, or
integrated data/video link that relies on a transport medium
that operates at a minimum speed of 1.544 megabytes per second
(T1) for each elementary school, middle school, or high school
under section 120A.05, subdivisions 9, 11, and 13, including the
recurring telecommunications line lease costs and ongoing
Internet access service fees; or
new text end

new text begin (ii) the equivalent of one data line or video circuit, or
integrated data/video link that relies on a transport medium
that operates at a minimum speed of 1.544 megabytes per second
(T1) for each district, including recurring telecommunications
line lease costs and ongoing Internet access service fees;
new text end

new text begin (2) recurring costs of contractual or vendor-provided
maintenance on the school district's wide area network to the
point of presence at the school building up to the router,
codec, or other service delivery equipment located at the point
of presence termination at the school or school district;
new text end

new text begin (3) recurring costs of cooperative, shared arrangements for
regional delivery of telecommunications/Internet access between
school districts, postsecondary institutions, and public
libraries including network gateways, peering points, regional
network infrastructure, Internet2 access, and network support,
maintenance, and coordination; and
new text end

new text begin (4) service provider installation fees for installation of
new telecommunications lines or increased bandwidth.
new text end

new text begin (b) Costs not eligible for reimbursement under this program
include:
new text end

new text begin (1) recurring costs of school district staff providing
network infrastructure support;
new text end

new text begin (2) recurring costs associated with voice and standard
telephone service;
new text end

new text begin (3) costs associated with purchase of network hardware,
telephones, computers, or other peripheral equipment needed to
deliver telecommunications access to the school or school
district;
new text end

new text begin (4) costs associated with laying fiber for
telecommunications access;
new text end

new text begin (5) costs associated with wiring school or school district
buildings;
new text end

new text begin (6) costs associated with purchase, installation, or
purchase and installation of Internet filtering; and
new text end

new text begin (7) costs associated with digital content, including online
learning or distance learning programming, and information
databases.
new text end

new text begin Subd. 2. new text end

new text begin E-rates. new text end

new text begin To be eligible for aid under this
section, a district or charter school is required to file an
e-rate application either separately or through its
telecommunications access cluster and have a current technology
plan on file with the department. Discounts received on
telecommunications expenditures shall be reflected in the costs
submitted to the department for aid under this section.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement criteria. new text end

new text begin The commissioner shall
develop criteria for approving costs submitted by organized
school districts and charter schools under subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin District aid. new text end

new text begin For fiscal year 2006 and later, a
district or charter school's Internet access equity aid equals
the district or charter school's approved cost for the previous
fiscal year according to subdivision 1 exceeding $15 times the
district's adjusted marginal cost pupil units for the previous
fiscal year or no reduction if the district is part of an
organized telecommunications access cluster. Equity aid must be
distributed to the telecommunications access cluster for
districts that are members of the cluster or to individual
districts and charter schools not part of a telecommunications
access cluster.
new text end

new text begin Subd. 5. new text end

new text begin Telecommunications/internet access services for
nonpublic schools.
new text end

new text begin (a) Districts shall provide each year upon
formal request by or on behalf of a nonpublic school, not
including home schools, located in that district or area,
ongoing or recurring telecommunications access services to the
nonpublic school either through existing district providers or
through separate providers.
new text end

new text begin (b) The amount of district aid for telecommunications
access services for each nonpublic school under this subdivision
equals the lesser of:
new text end

new text begin (1) 90 percent of the nonpublic school's approved cost for
the previous fiscal year according to subdivision 1 exceeding
$10 for fiscal year 2006 and later times the number of weighted
pupils enrolled at the nonpublic school as of October 1 of the
previous school year; or
new text end

new text begin (2) the product of the district's aid per pupil unit
according to subdivision 4 times the number of weighted pupils
enrolled at the nonpublic school as of October 1 of the previous
school year.
new text end

new text begin (c) For purposes of this subdivision, nonpublic school
pupils shall be weighted by grade level using the weighting
factors defined in section 126C.05, subdivision 1.
new text end

new text begin (d) Each year, a district providing services under
paragraph (a) may claim up to five percent of the aid determined
in paragraph (b) for costs of administering this subdivision.
No district may expend an amount for these telecommunications
access services which exceeds the amount allocated under this
subdivision. The nonpublic school is responsible for the
Internet access costs not covered by this section.
new text end

new text begin (e) At the request of a nonpublic school, districts may
allocate the amount determined in paragraph (b) directly to the
nonpublic school to pay for or offset the nonpublic school's
costs for telecommunications access services; however, the
amount allocated directly to the nonpublic school may not exceed
the actual amount of the school's ongoing or recurring
telecommunications access costs.
new text end

new text begin Subd. 6.new text end

new text begin Severability.new text end

new text begin If any portion of this section is
found by a court to be unconstitutional, the remaining portions
of the section shall remain in effect.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2004, section 126C.17,
subdivision 11, is amended to read:


Subd. 11.

Referendum date.

(a) Except for a referendum
held under paragraph (b) new text begin or (d)new text end , any referendum under this
section held on a day other than the first Tuesday after the
first Monday in November must be conducted by mail in accordance
with section 204B.46. Notwithstanding subdivision 9, paragraph
(b), to the contrary, in the case of a referendum conducted by
mail under this paragraph, the notice required by subdivision 9,
paragraph (b), must be prepared and delivered by first-class
mail at least 20 days before the referendum.

(b) In addition to the referenda allowed in subdivision 9,
clause (a), the commissioner may grant authority to a district
to hold a referendum on a different day if the district is in
statutory operating debt and has an approved plan or has
received an extension from the department to file a plan to
eliminate the statutory operating debt.

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

new text begin (d) In addition to the referenda allowed in subdivision 9,
paragraph (a), a district may hold a referendum on the same day
as a district election for a facility under chapter 475 if the
referendum is directly related to the operating costs of the
proposed facility except for licensed personnel costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for referenda
held on or after July 1, 2005.
new text end

Sec. 11.

Minnesota Statutes 2004, section 126C.63,
subdivision 5, is amended to read:


Subd. 5.

Levy.

"Levy" means a district's net debt
service levy after the reduction of debt service equalization
aid under section 123B.53, subdivision 6. For taxes payable in
2003 and later, each district's maximum effort debt service levy
for purposes of subdivision 8, must be reduced by an equal
number of percentage points if the commissioner of finance
determines that the levy reduction will not result in a payment
from the general fund in the state treasury according to section
16A.641, as would be required under section 126C.72, subdivision
3. A district's levy that is adjusted under this section must
not be reduced below deleted text begin 30.1 deleted text end new text begin 25 new text end percent of the district's adjusted
net tax capacity.

Sec. 12.

Minnesota Statutes 2004, section 126C.63,
subdivision 8, is amended to read:


Subd. 8.

Maximum effort debt service levy.

(a) "Maximum
effort debt service levy" means the lesser of:

(1) a levy in whichever of the following amounts is
applicable:

(i) in any district receiving a debt service loan for a
debt service levy payable in 2002 and thereafter, or granted a
capital loan after January 1, 2002, a levy in total dollar
amount computed at a rate of deleted text begin 40 deleted text end new text begin 32 new text end percent of adjusted net tax
capacity for taxes payable in 2002 and thereafter;

(ii) in any district receiving a debt service loan for a
debt service levy payable in 2001 or earlier, or granted a
capital loan before January 2, deleted text begin 2001 deleted text end new text begin 2002new text end , a levy in a total
dollar amount computed at a rate of deleted text begin 32 deleted text end new text begin 28 new text end percent of adjusted
net tax capacity for taxes payable in 2002 and thereafter; or

(2) a levy in any district for which a capital loan was
approved prior to August 1, 1981, a levy in a total dollar
amount equal to the sum of the amount of the required debt
service levy and an amount which when levied annually will in
the opinion of the commissioner be sufficient to retire the
remaining interest and principal on any outstanding loans from
the state within 30 years of the original date when the capital
loan was granted.

(b) The board in any district affected by the provisions of
paragraph (a), clause (2), may elect instead to determine the
amount of its levy according to the provisions of paragraph (a),
clause (1). If a district's capital loan is not paid within 30
years because it elects to determine the amount of its levy
according to the provisions of paragraph (a), clause (2), the
liability of the district for the amount of the difference
between the amount it levied under paragraph (a), clause (2),
and the amount it would have levied under paragraph (a), clause
(1), and for interest on the amount of that difference, must not
be satisfied and discharged pursuant to Minnesota Statutes 1988,
or an earlier edition of Minnesota Statutes if applicable,
section 124.43, subdivision 4.

Sec. 13.

Minnesota Statutes 2004, section 128C.12,
subdivision 1, is amended to read:


Subdivision 1.

Dues and events revenue.

new text begin (a) new text end The state
auditor annually must examine the accounts of, and audit all
money paid to, the State High School League by its members. The
audit must include financial and compliance issues. The deleted text begin state
auditor
deleted text end new text begin audit new text end must also deleted text begin audit deleted text end new text begin include new text end all money derived from any
event sponsored by the league. deleted text begin League audits must include
audits of administrative regions of the league. The league and
its administrative regions may not contract with private
auditors. The scope of the state auditor's examinations of the
league must be agreed upon by the board and the state auditor,
provided that all requirements of this section must be met.
deleted text end

new text begin (b) The administrative regions of the league may contract
with the state auditor or with a private certified public
accountant for the audit required by this section. If the audit
is performed by a private certified public accountant, the state
auditor may require additional information from the private
certified public accountant as the state auditor deems in the
public interest. The state auditor may accept the audit or make
additional examinations as the state auditor deems to be in the
public interest.
new text end

Sec. 14.

Minnesota Statutes 2004, section 128C.12,
subdivision 3, is amended to read:


Subd. 3.

Copies.

The deleted text begin state auditor deleted text end new text begin board new text end must file
copies of the deleted text begin financial and compliance deleted text end audit report with the
commissioner of education and the director of the Legislative
Reference Library.

Sec. 15.

Minnesota Statutes 2004, section 128D.11,
subdivision 9, is amended to read:


Subd. 9.

Net debt defined.

The net debt of the school
district for the purposes of this limitation is the amount of
bonds less the amount of all money and the face value of all
securities then held as a sinking fund for the payment of such
bonds, and shall not include school aid and tax anticipation
certificates of indebtedness not in default new text begin or bonds issued to
pay pension fund liabilities under section 475.52, subdivision 6
new text end .

Sec. 16.

Minnesota Statutes 2004, section 475.61,
subdivision 4, is amended to read:


Subd. 4.

Surplus funds.

(a) All such taxes shall be
collected and remitted to the municipality by the county
treasurer as other taxes are collected and remitted, and shall
be used only for payment of the obligations on account of which
levied or to repay advances from other funds used for such
payments, except that any surplus remaining in the debt service
fund when the obligations and interest thereon are paid may be
appropriated to any other general purpose by the municipality.
However, new text begin for obligations authorized before July 1, 2005,new text end the
amount of any surplus remaining in the debt service fund of a
school district when the obligations and interest thereon are
paid shall be used to reduce the general fund deleted text begin levy deleted text end new text begin levies
new text end authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C
and the state aids authorized pursuant to chapters 122A, 123A,
123B, 124D, 125A, 126C, and 127A. new text begin For obligations authorized on
July 1, 2005, or thereafter, the amount of any surplus remaining
in the debt service fund of a school district when the
obligations and interest thereon are paid in full may be
appropriated to any other general purpose by the school district
without any reduction in state aid or levies or may be used to
reduce the general fund levies authorized under chapters 122A,
123A, 123B, 124D, and 126C, and the state aids authorized under
chapters 122A, 123A, 123B, 124D, 125A, 126C, and 127A.
new text end

(b) If the district qualified for second tier debt service
equalization aid in the last year that it qualified for debt
service equalization aid, the reduction to state aids equals the
lesser of (1) the amount of the surplus times the ratio of the
district's second tier debt service equalization aid to the
district's second tier debt service equalization revenue for the
last year that the district qualified for debt service
equalization aid; or (2) the district's cumulative amount of
debt service equalization aid.

(c) If the district did not qualify for second tier debt
service equalization aid in the last year that it qualified for
debt service equalization aid, the reduction to state aids
equals the lesser of (1) the amount of the surplus times the
ratio of the district's debt service equalization aid to the
district's debt service equalization revenue for the last year
that the district qualified for debt service equalization aid;
or (2) the district's cumulative amount of debt service
equalization aid.

(d) The reduction to the general fund deleted text begin levy deleted text end new text begin levies new text end equals
the total amount of the surplus minus the reduction to state
aids.

Sec. 17.

Laws 1996, chapter 412, article 5, section 24, is
amended to read:


Sec. 24. new text begin BONDS PAID FROM TACONITE PRODUCTION TAX
REVENUES.
new text end

Subdivision 1.

Refunding bonds.

The appropriation of
funds from the distribution of taconite production tax revenues
to the taconite environmental protection tax fund and the
northeast Minnesota economic protection fund made by Laws 1988,
chapter 718, article 7, sections 62 and 63, Laws 1989, chapter
329, article 5, section 20, Laws 1990, chapter 604, article 8,
section 13, Laws 1992, chapter 499, article 5, section 29, deleted text begin and
by sections 18 to 20
deleted text end new text begin Laws 1996, chapter 412, article 5, sections
20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to
26
new text end , shall continue to apply to bonds issued under Minnesota
Statutes, chapter 475, to refund bonds originally issued
pursuant to those chapters.

Subd. 2.

Local payments.

School districts that are
required in Laws 1988, chapter 718, article 7, sections 62 and
63, Laws 1989, chapter 329, article 5, section 20, Laws 1990,
chapter 604, article 8, section 13, Laws 1992, chapter 499,
article 5, section 29, deleted text begin and by sections 18 to 20 deleted text end new text begin Laws 1996,
chapter 412, article 5, sections 20 to 22, and Laws 2000,
chapter 489, article 5, sections 24 to 26
new text end , to impose levies to
pay debt service on the bonds issued under those provisions to
the extent the principal and interest on the bonds is not paid
by distributions from the taconite environmental protection fund
and the northeast Minnesota economic protection trust, may pay
their portion of the principal and interest from any funds
available to them. To the extent a school district uses funds
other than the proceeds of a property tax levy to pay its share
of the principal and interest on the bonds, the requirement to
impose a property tax to pay the local share does not apply to
the school district.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Laws 2003, First Special Session chapter 9,
article 4, section 29, as amended by Laws 2003, First Special
Session chapter 23, section 18, is amended to read:


Sec. 29new text begin GARAGE LEASE LEVY; SARTELL.
new text end

For taxes payable in 2004, 2005, deleted text begin and deleted text end 2006, new text begin and 2007,
new text end independent school district No. deleted text begin 740 deleted text end new text begin 748new text end , Sartell, may levy up to
$107,000 each year new text begin and for taxes payable in 2008 may levy up to
$67,000
new text end for the purpose of leasing a school bus storage
facility. The department of education shall include this levy
in the calculation of eligible building lease levy under
Minnesota Statutes, section 126C.40, subdivision 1. This levy
shall not allow the district to exceed the $90 per resident
pupil unit cap in that section. The district is eligible to
make this levy only if it sells its current school bus storage
site to the city of Sartell and the district may not use this
levy as part of a lease purchase agreement to replace its
current school bus storage facility.

Sec. 19. 2005 S.F. No. 1879, article 3, section 3,
subdivision 41, if enacted, is amended to read:

Subd. 41.

Debt service equalization.

For debt service
aid according to Minnesota Statutes, section 123B.53,
subdivision 6:

$25,654,000 ..... 2006

$ deleted text begin 24,611,000 deleted text end new text begin 24,519,000new text end ..... 2007

The 2006 appropriation includes $4,654,000 for 2005 and
$21,000,000 for 2006.

The 2007 appropriation includes $3,911,000 for 2006 and
$ deleted text begin 20,700,000 deleted text end new text begin 20,608,000 new text end for 2007.

Sec. 20. new text begin HEALTH AND SAFETY REVENUE; GRAND RAPIDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57,
subdivision 6, Independent School District No. 318, Grand
Rapids, may use health and safety revenue to construct
appurtenances used exclusively to house and maintain mechanical
air handling systems that maintain the air quality necessary for
a healthy environment.
new text end

Sec. 21. new text begin HEALTH AND SAFETY REVENUE; NEW ULM.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57,
subdivision 6, Independent School District No. 88, New Ulm, may
use health and safety revenue to construct appurtenances used
exclusively to house and maintain mechanical air handling
systems that maintain the air quality necessary for a healthy
environment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from January 1, 2004.
new text end

Sec. 22. new text begin DISABLED ACCESS LEVY AUTHORITY; EAST GRAND
FORKS.
new text end

new text begin Notwithstanding the time limits established in Minnesota
Statutes, section 123B.58, subdivision 3, Independent School
District No. 595, East Grand Forks, may levy its remaining
disabled access levy authority over five or fewer years.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23. new text begin LEASE LEVY; ADMINISTRATIVE SPACE, WACONIA.
new text end

new text begin Independent School District No. 110, Waconia, may lease
administrative space under Minnesota Statutes, section 126C.40,
subdivision 1, if the district can demonstrate to the
commissioner's satisfaction that the administrative space is
less expensive than instructional space that the district would
otherwise lease. The commissioner must deny this levy authority
unless the district passes a resolution stating its intent to
lease instructional space under Minnesota Statutes, section
126C.40, subdivision 1, if the commissioner does not grant
authority under this section. The resolution must also certify
that a lease of administrative space under this section is less
expensive than the district's proposed instructional lease.
Levy authority under this section shall not exceed the total
levy authority under Minnesota Statutes, section 126C.40,
subdivision 1, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
taxes payable in 2006 through 2011.
new text end

Sec. 24. new text begin TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 123B.61,
the commissioner of education, when making offsetting levy
adjustments between levy categories to ensure that each levy
category is positive for Independent School District No. 599,
Fertile-Beltrami, shall make such adjustments first between levy
categories that are imposed on identical tax bases before making
such adjustments between levy categories that are imposed on
different tax bases. The commissioner may make offsetting levy
adjustments between the general fund and the debt service fund,
if necessary.
new text end

new text begin (b) The commissioner of education must make the offsetting
levy adjustments according to the process in paragraph (a) until
Independent School District No. 599, Fertile-Beltrami's current
referendum authority, under Minnesota Statutes, section 126C.17,
expires.
new text end

Sec. 25. new text begin RESIDENTIAL PROGRAM FACILITIES; WORTHINGTON.
new text end

new text begin Subject to Minnesota Statutes, section 16A.695, Independent
School District No. 518, Worthington, may use the facilities
provided under Laws 1994, chapter 643, section 14, subdivision
8, as amended by Laws 1995, chapter 76, to provide adult foster
care or child foster care services licensed by the commissioner
of human services or for other special education purposes.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Butterfield. new text end

new text begin Notwithstanding Minnesota
Statutes, section 123B.79 or 123B.80, for calendar years 2005
through 2007, on June 30 of each year, Independent School
District No. 836, Butterfield, may permanently transfer up to
$50,000 from its reserved operating capital account in its
general fund to its undesignated general fund balance and
$60,000 from its reserved bus purchase account in its general
fund to its undesignated general fund balance. The total amount
transferred for the three-year period must not total more than
$50,000 from the reserved operating capital account and $60,000
from the reserved bus purchase account.
new text end

new text begin Subd. 2. new text end

new text begin Chokio-alberta. new text end

new text begin Notwithstanding Minnesota
Statutes, section 123B.79 or 123B.80, on June 30, 2005,
Independent School District No. 771, Chokio-Alberta, may
permanently transfer up to $150,000 from its reserved operating
capital account and up to $50,000 from its reserved account for
disabled accessibility to the undesignated general fund balance.
new text end

new text begin Subd. 3. new text end

new text begin Clinton-graceville-beardsley. new text end

new text begin Notwithstanding
Minnesota Statutes, sections 123B.79, 123B.80, and 475.64,
subdivision 4, on June 30, 2005, Independent School District No.
2888, Clinton-Graceville-Beardsley may permanently transfer up
to $244,000 from its reserved for disabled accessibility account
to its unrestricted general fund account without making a levy
reduction.
new text end

new text begin Subd. 4. new text end

new text begin Hastings. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123A.27, on June 30, 2005, Independent School District
No. 200, Hastings, may permanently transfer up to $300,000 from
its reserved account for instructional services from entities
formed for cooperative services for special education and
secondary vocational programs in its general fund to its
unrestricted general fund account.
new text end

new text begin Subd. 5. new text end

new text begin Lake crystal-wellcome memorial. new text end

new text begin Notwithstanding
Minnesota Statutes, section 123B.79 or 123B.80, on June 30,
2005, upon approval of the commissioner of education,
Independent School District No. 2071, Lake Crystal-Wellcome
Memorial, may permanently transfer up to $133,000 from its
reserved account for handicapped access to its undesignated
general fund balance.
new text end

new text begin Subd. 6.new text end [M.A.C.C.R.A.Y.] new text begin Notwithstanding Minnesota
Statutes, section 123B.79 or 123B.80, upon approval of the
commissioner of education, on June 30, 2005, Independent School
District No. 2180, M.A.C.C.R.A.Y., may permanently transfer up
to $230,000 from its reserved account for handicapped access to
its undesignated general fund balance.
new text end

new text begin Subd. 7. new text end

new text begin Mcleod west. new text end

new text begin Notwithstanding Minnesota
Statutes, section 123B.79 or 123B.80, on or before June 30,
2007, Independent School District No. 2887, McLeod West, may
permanently transfer up to $200,000 from its reserved operating
capital account in its general fund to the undesignated fund
balance.
new text end

new text begin Subd. 8. new text end

new text begin Russell. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2005, Independent School
District No. 418, Russell, may transfer up to $50,000 from its
reserved capital accounts in its general fund to its
undesignated fund balance.
new text end

new text begin Subd. 9. new text end

new text begin Ruthton. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2005, Independent School
District No. 584, Ruthton, may permanently transfer up to
$140,000 from its reserved for operating capital account to the
undesignated general fund balance.
new text end

new text begin Subd. 10. new text end

new text begin Windom. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 123B.79 and 123B.80, on June 30, 2005, Independent
School District No. 177, Windom, may permanently transfer up to
$270,000 from its reserved for operating capital account to the
undesignated balance in its general fund.
new text end

new text begin Subd. 11.new text end

new text begin Win-e-mac.new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2005, Independent School
District No. 2609, Win-E-Mac, may permanently transfer up to
$87,000 from its reserved account for disabled accessibility to
its reserved operating capital account in its general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin STUDY OF AVERAGE SCHOOL CONSTRUCTION COSTS.
new text end

new text begin The commissioner shall submit a report by January 15, 2006,
to the house of representatives and senate committees having
jurisdiction over education finance on the costs of construction
of new school facilities as defined in Minnesota Statutes,
section 120A.05, including elementary school, middle school,
secondary school, or prekindergarten through grade 12
facilities. The commissioner shall review the ranges in costs
per square foot of new school construction that received a
positive review and comment during the period July 1, 2002, to
June 30, 2005, and shall evaluate the specific reasons for those
ranges in costs.
new text end

Sec. 28. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity
in telecommunications access:
new text end

new text begin $5,000,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $5,000,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin If the appropriation amount is insufficient, the
commissioner shall reduce the reimbursement rate in Minnesota
Statutes, section 125B.26, subdivisions 4 and 5, and the revenue
for the fiscal years 2006 and 2007 shall be prorated. The base
for this program in fiscal year 2008 and later is $10,000,000.
Any balance in the first year does not cancel but is available
in the second year.
new text end

new text begin Subd. 3. new text end

new text begin Emergency aid, red lake. new text end

new text begin For Independent School
District No. 38, Red Lake, for onetime emergency aid to repair
infrastructure damage to the Red Lake High School as a result of
the March 21, 2005, school shooting:
new text end

new text begin $ 100,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin The school district must submit proposed expenditures for
these funds for review and comment approval under Minnesota
Statutes, section 123B.71, before the commissioner releases the
funds to the district.
new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 128C.12, subdivision 4, is
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 5

NUTRITION

Section 1.

Minnesota Statutes 2004, section 124D.111,
subdivision 1, is amended to read:


Subdivision 1.

School lunch aid computation.

Each school
year, the state must pay districts participating in the national
school lunch program the amount of deleted text begin eight deleted text end new text begin ten new text end cents for each full
paid, reduced, and free student lunch served to students in the
district.

Sec. 2.

Minnesota Statutes 2004, section 124D.118,
subdivision 4, is amended to read:


Subd. 4.

Reimbursement.

In accordance with program
guidelines, the commissioner shall reimburse each participating
public or nonpublic school deleted text begin nine deleted text end new text begin 14 new text end cents for each half-pint of
milk that is served to kindergarten students and is not part of
a school lunch or breakfast reimbursed under section 124D.111 or
124D.1158.

Sec. 3. 2005 S.F. No. 1879, article 3, section 3,
subdivision 43, if enacted, is amended to read:

Subd. 43.

School lunch.

For school lunch aid according
to Minnesota Statutes, section 124D.111, and Code of Federal
Regulations, title 7, section 210.17:

$ deleted text begin 7,748,000 deleted text end new text begin 9,585,000new text end ..... 2006

$ deleted text begin 7,826,000 deleted text end new text begin 9,781,000new text end ..... 2007

Sec. 4. 2005 S.F. No. 1879, article 3, section 3,
subdivision 44, if enacted, is amended to read:

Subd. 44.

Traditional school breakfastnew text begin ; milk for
kindergarteners
new text end .

For traditional school breakfast aid under
Minnesota Statutes, section 124D.1158new text begin and milk for
kindergarteners under Minnesota Statutes, section 124D.118
new text end :

$ deleted text begin 4,634,000 deleted text end new text begin 4,878,000new text end ..... 2006

$ deleted text begin 4,723,000 deleted text end new text begin 4,968,000new text end ..... 2007

Sec. 5. new text begin MILK CONSUMPTION PILOT PROGRAM.
new text end

new text begin Independent School District No. 11, Anoka-Hennepin, and
Independent School District No. 709, Duluth, are each eligible
to receive $25,000 in fiscal year 2006 to establish a pilot
program to enhance milk consumption in the schools. The funds
must be used by the districts to enhance the attractiveness of
consuming milk to students in both the school lunch and a la
carte programs, including, at a minimum, improving
refrigeration, purchasing products or packaging not previously
available, and upgrading quality of products previously
supplied. The pilot program must be implemented during the
2005-2006 school year. Each district must develop a plan to
implement the pilot program. The plan must be developed by
district food service personnel, the dairy which is contracted
to provide milk to the districts' schools, and representatives
of the Midwest Dairy Association and the Midwest Dairy Council.
The plan must be submitted to the Department of Education by
August 15, 2005. Additional funds for the program may be sought
from interested individuals and organizations. Each eligible
school district must report to the house of representatives and
senate committees having jurisdiction over kindergarten through
grade 12 education funding and agriculture funding by October
15, 2006. The report should include statistics on the prior
year's consumption in the district, the various methods chosen
to enhance consumption, and the results of those methods.
new text end

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Milk consumption pilot program. new text end

new text begin For milk
consumption pilot program grants:
new text end

new text begin $ 50,000 new text end new text begin ..... new text end new text begin 2006
new text end

ARTICLE 6

STATE AGENCIES

Section 1. 2005 S.F. No. 1879, article 3, section 3,
subdivision 50, if enacted, is amended to read:

Subd. 50.

Department.

(a) For the Department of
Education:

$ deleted text begin 21,772,000 deleted text end new text begin 21,411,000new text end ..... 2006

$ deleted text begin 21,772,000 deleted text end new text begin 22,646,000new text end ..... 2007

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

(b) $260,000 each year is for the Minnesota Children's
Museum.

(c) $41,000 each year is for the Minnesota Academy of
Science.

(d) $621,000 each year is for the Board of Teaching.

(e) $165,000 each year is for the Board of School
Administrators.

(f) deleted text begin $29,000 each year is for Minnesota's Washington, D.C.,
office
deleted text end new text begin None of the amounts appropriated under this subdivision
may be used for Minnesota's Washington, D.C., office
new text end .

new text begin (g) None of the amounts appropriated under this subdivision
or any federal funds may be used for the communications function
within the Office of Finance and Administration. The Department
of Education shall not relocate or rename this function to avoid
making this reduction.
new text end

new text begin (h) $128,000 each year is for the funding of a world
languages coordinator in the Department of Education.
new text end

new text begin (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year
2007 is for the development and distribution to school districts
of materials addressing the dangers of methamphetamine.
new text end

new text begin (j) $300,000 in fiscal year 2006 and $1,600,000 in fiscal
year 2007 and later are for value-added index assessment model.
new text end

new text begin (k) The base in fiscal year 2008 and later for the
Department of Education shall be $22,804,000.
new text end

Sec. 2. 2005 S.F. No. 1879, article 3, section 4, if
enacted, is amended to read:

Sec. 3. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

The sums indicated in this section are appropriated from
the general fund to the Minnesota State Academies for the Deaf
and the Blind for the fiscal years designated:

$ deleted text begin 10,466,000 deleted text end new text begin 10,878,000new text end ..... 2006

$ deleted text begin 10,466,000 deleted text end new text begin 10,953,000new text end ..... 2007

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

Sec. 4. 2005 S.F. No. 1879, article 3, section 5, if
enacted, is amended to read:

Sec. 5. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS
EDUCATION.
new text end

The sums indicated in this section are appropriated from
the general fund to the Perpich Center for Arts Education for
the fiscal years designated:

$ deleted text begin 6,423,000 deleted text end new text begin 6,424,000new text end ..... 2006

$ deleted text begin 6,423,000 deleted text end new text begin 6,422,000new text end ..... 2007

Any balance in the first year does not cancel but is
available in the second year. new text begin The base appropriation for fiscal
year 2008 and later is $6,672,000.
new text end

Sec. 6. new text begin USE OF FEDERAL FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Federal grants and aids. new text end

new text begin The expenditures
of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and
shall be spent as indicated.
new text end

new text begin Subd. 2. new text end

new text begin Exceptions. new text end

new text begin (a) Notwithstanding subdivision 1,
the following grants and aids are appropriated as indicated in
this section.
new text end

new text begin (b) Ninety-five percent of the improving teacher quality
state grant is appropriated for the professional compensation
initiative under Minnesota Statutes, section 122A.4142.
new text end

new text begin (c) $200,000 of the twenty-first century community learning
centers funds is appropriated to the summit academy for the
quantum opportunities program.
new text end

new text begin (d) $500,000 of the improving teacher quality state grant
is appropriated for the principals' leadership institute under
Minnesota Statutes, section 122A.74. This appropriation is not
available until the commissioner of education has determined
that an equal amount has been committed for the operation of the
institute from nonstate sources and the programmatic elements
are sufficiently reflective of the goals the state has
established for principals.
new text end

ARTICLE 7

SCHOOL EMPLOYEE HEALTH INSURANCE

Section 1.

new text begin [62A.662] SCHOOL EMPLOYEE INSURANCE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "eligible employee" means a person who is insurance
eligible under a collective bargaining agreement or under the
personnel policy of an eligible employer; and
new text end

new text begin (2) "eligible employer" means a school district as defined
in section 120A.05; a service cooperative as defined in section
123A.21; an intermediate district as defined in section 136D.01;
a cooperative center for vocational education as defined in
section 123A.22; a regional management information center as
defined in section 123A.23; an education unit organized under
section 471.59; or a charter school organized under section
124D.10.
new text end

new text begin Subd. 2. new text end

new text begin Creation of board. new text end

new text begin (a) The Minnesota School
Employee Insurance Board is created as a public corporation
subject to the provisions of chapter 317A, except as otherwise
provided in this section. As provided in section 15.082, the
state is not liable for obligations of this public corporation.
new text end

new text begin (b) The board shall create and administer the Minnesota
School Employee Insurance Pool as described in this section.
new text end

new text begin (c) Insurance plans and offerings must be effective July 1,
2009.
new text end

new text begin (d) If the board does not offer coverage by December 15,
2010, the board expires and this section expires on that date.
new text end

new text begin Subd. 3. new text end

new text begin Board of directors. new text end

new text begin (a) The School Employee
Insurance Board consists of:
new text end

new text begin (1) seven members representing exclusive representatives of
eligible employees, appointed by exclusive representatives, as
provided in paragraph (b); and
new text end

new text begin (2) seven members representing eligible employers,
appointed by the Minnesota School Boards Association.
new text end

new text begin (b) The seven members of the board who represent statewide
affiliates of exclusive representatives of eligible employees
are appointed as follows: four members appointed by Education
Minnesota and one member each appointed by the Service Employees
International Union, the Minnesota School Employees Association,
and American Federation of State, County, and Municipal
Employees.
new text end

new text begin (c) Appointing authorities must make their initial
appointments no later than August 1, 2005, by filing a notice of
the appointment with the commissioner of commerce. Notices of
subsequent appointments must be filed with the board. An entity
entitled to appoint a board member may replace the board member
at any time.
new text end

new text begin (d) Board members are eligible for compensation and expense
reimbursement under section 15.0575, subdivision 3.
new text end

new text begin (e) The board must arrange for one or more methods of
dispute resolution so as to minimize the possibility of
deadlocks.
new text end

new text begin (f) The board shall establish governance requirements,
including staggered terms, term limits, quorum, a plan of
operation, and audit provisions.
new text end

new text begin Subd. 4. new text end

new text begin Design and nature of plan. new text end

new text begin (a) Health coverage
offered through the Minnesota School Employee Insurance Pool
shall be made available by the board to all eligible employees
of eligible employers, as defined in subdivision 1.
new text end

new text begin (b) If an eligible employer provides health coverage or
money to purchase health coverage to eligible employees, the
coverage must be provided or purchased only through the health
plans offered by the board.
new text end

new text begin (c) Nothing in this section affects the right of each
eligible employer to determine, through collective bargaining
under the public employer labor relations act:
new text end

new text begin (1) the employer's eligibility requirements regarding the
terms and conditions under which employees, dependents,
retirees, and other persons are eligible for health coverage
from the employer;
new text end

new text begin (2) how much of the premium charged for the insurance will
be paid by the employer and how much will be paid by the
eligible person; and
new text end

new text begin (3) which health plan or plans offered by the board will be
made available by the eligible employer.
new text end

new text begin (d) The board must initially offer at least six health
plans. One plan must provide coverage without a deductible and
without other enrollee cost-sharing other than reasonable
co-payments for nonpreventive care. One plan must be a high
deductible health plan that qualifies under federal law for use
with a health savings account. The other four plans must have
levels of enrollee cost-sharing that are between the two plans
just described. The board may establish more than one tier of
premium rates for any specific plan. Plans and premium rates
may vary across geographic regions established by the board.
The health plans must comply with chapters 62A, 62J, 62M, and
62Q, and must provide the optimal combination of coverage, cost,
choice, and stability in the judgment of the board. All health
plans offered must be approved by the commissioner of commerce.
The board shall investigate the feasibility of offering coverage
through more than one health plan company or other network of
health care providers.
new text end

new text begin (e) The board must include claims reserves, stabilization
reserves, reinsurance, and other features that, in the judgment
of the board, will result in long-term stability and solvency of
the health plans offered.
new text end

new text begin (f) The board may determine whether the health plans should
be fully insured through a health carrier licensed in this
state, self-insured, or a combination of those two alternatives.
new text end

new text begin (g) The health plans must include disease management and
consumer education, including wellness programs and measures
encouraging the wise use of health coverage, to the extent
determined to be appropriate by the board.
new text end

new text begin (h) Upon request of the board, health plans that are
providing or have provided coverage to employees of eligible
employers within two years prior to the effective date of this
section, shall provide to the board at no charge nonidentifiable
aggregate claims data for that coverage. The information must
include data relating to employee group benefit sets,
demographics, and claims experience. Notwithstanding section
13.203, Minnesota service cooperatives must also comply with
this paragraph.
new text end

new text begin (i) Effective July 1, 2007, no contract entered into
between an eligible employer and an eligible employee or the
exclusive representative of an eligible employee shall contain
provisions that establish cash payment in lieu of health
insurance to an eligible employee if the employee is not
receiving such payment on or before June 30, 2007. Nothing in
this section shall prevent any eligible employee who otherwise
qualifies for payment of cash in lieu of insurance on June 30,
2007, to continue to receive this payment.
new text end

new text begin (j) All premiums paid for health coverage provided by the
board must be used by the board solely for the cost of the
operation of the board and the benefit of eligible employees and
eligible employers in connection with the health coverage
offered by the board.
new text end

new text begin Subd. 5. new text end

new text begin Mcha membership and assessments. new text end

new text begin The board is a
contributing member of the Minnesota Comprehensive Health
Association and must pay assessments made by the association on
its premium revenues, as provided in section 62E.11, subdivision
5, paragraph (b).
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin The board shall report to the
legislature by January 15, 2009, on a final design for the pool
that complies with subdivision 4 and on governance requirements
for the board, including staggered terms, term limits, quorum,
and a plan of operation and audit provisions. The report must
include any legislative changes necessary to ensure conformance
with chapters 62A, 62J, 62M, and 62Q.
new text end

new text begin Subd. 7. new text end

new text begin Periodic evaluation. new text end

new text begin (a) Beginning January 15,
2010, and for the next two years, the board must submit an
annual report to the commissioner of commerce and the
legislature, in compliance with sections 3.195 and 3.197,
summarizing and evaluating the performance of the pool during
the previous year of operation.
new text end

new text begin (b) Beginning in 2013 and in each odd-numbered year
thereafter, the board must submit to the legislature a biennial
report summarizing and evaluating the performance of the pool
during the preceding two fiscal years.
new text end

Sec. 2.

Minnesota Statutes 2004, section 62E.02,
subdivision 23, is amended to read:


Subd. 23.

Contributing member.

"Contributing member"
means those companies regulated under chapter 62A and offering,
selling, issuing, or renewing policies or contracts of accident
and health insurance; health maintenance organizations regulated
under chapter 62D; nonprofit health service plan corporations
regulated under chapter 62C; community integrated service
networks regulated under chapter 62N; fraternal benefit
societies regulated under chapter 64B; the Minnesota employees
insurance program established in section 43A.317, effective July
1, 1993; deleted text begin and deleted text end joint self-insurance plans regulated under chapter
62Hnew text begin ; and the Minnesota School Employee Insurance Board created
under section 62A.662
new text end . For the purposes of determining
liability of contributing members pursuant to section 62E.11
payments received from or on behalf of Minnesota residents for
coverage by a health maintenance organization deleted text begin or deleted text end new text begin , a new text end community
integrated service networknew text begin , or the Minnesota School Employee
Insurance Board
new text end shall be considered to be accident and health
insurance premiums.

Sec. 3.

Minnesota Statutes 2004, section 62E.10,
subdivision 1, is amended to read:


Subdivision 1.

Creation; tax exemption.

There is
established a Comprehensive Health Association to promote the
public health and welfare of the state of Minnesota with
membership consisting of all insurers; self-insurers;
fraternals; joint self-insurance plans regulated under chapter
62H; the Minnesota employees insurance program established in
section 43A.317, effective July 1, 1993; new text begin the Minnesota School
Employee Insurance Board created under section 62A.662;
new text end health
maintenance organizations; and community integrated service
networks licensed or authorized to do business in this state.
The Comprehensive Health Association is exempt from the taxes
imposed under chapter 297I and any other laws of this state and
all property owned by the association is exempt from taxation.

Sec. 4.

Minnesota Statutes 2004, section 62E.11,
subdivision 5, is amended to read:


Subd. 5.

Allocation of losses.

new text begin (a) new text end Each contributing
member of the association shall share the losses due to claims
expenses of the comprehensive health insurance plan for plans
issued or approved for issuance by the association, and shall
share in the operating and administrative expenses incurred or
estimated to be incurred by the association incident to the
conduct of its affairs. Claims expenses of the state plan which
exceed the premium payments allocated to the payment of benefits
shall be the liability of the contributing members.
Contributing members shall share in the claims expense of the
state plan and operating and administrative expenses of the
association in an amount equal to the ratio of the contributing
member's total accident and health insurance premium, received
from or on behalf of Minnesota residents as divided by the total
accident and health insurance premium, received by all
contributing members from or on behalf of Minnesota residents,
as determined by the commissioner. Payments made by the state
to a contributing member for medical assistance, MinnesotaCare,
or general assistance medical care services according to
chapters 256, 256B, and 256D shall be excluded when determining
a contributing member's total premium.

new text begin (b) In making the allocation of losses provided in
paragraph (a), the association's assessment against the
Minnesota School Employee Insurance Board must equal the product
of (1) the percentage of premiums assessed against other
association members; (2) .3885; and (3) premiums received by the
Minnesota School Employee Insurance Board. For purposes of this
calculation, premiums of the board used must be net of rate
credits and retroactive rate refunds on the same basis as the
premiums of other association members.
new text end

Sec. 5.

Minnesota Statutes 2004, section 297I.05,
subdivision 5, is amended to read:


Subd. 5.

Health maintenance organizations, nonprofit
health service plan corporations, deleted text begin and deleted text end community integrated
service networksnew text begin , and the minnesota school employee insurance
board
new text end .

(a) Health maintenance organizations, community
integrated service networks, and nonprofit health care service
plan corporations are exempt from the tax imposed under this
section for premiums received in calendar years 2001 to 2003.

(b) For calendar years after 2003, a tax is imposed on
health maintenance organizations, community integrated service
networks, and nonprofit health care service plan corporations.
The rate of tax is equal to one percent of gross premiums less
return premiums received in the calendar year.

(c) new text begin A tax is imposed on the Minnesota School Employee
Insurance Board under section 62A.662. The rate of tax is equal
to .36 percent of gross premiums less return premiums received
in the calendar year.
new text end

new text begin (d) new text end In approving the premium rates as required in sections
62L.08, subdivision 8, and 62A.65, subdivision 3, the
commissioners of health and commerce shall ensure that any
exemption from tax as described in paragraph (a) is reflected in
the premium rate.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall deposit all revenues,
including penalties and interest, collected under this chapter
from health maintenance organizations, community integrated
service networks, deleted text begin and deleted text end nonprofit health service plan
corporationsnew text begin , and the Minnesota School Employee Insurance Board
new text end in the health care access fund. Refunds of overpayments of tax
imposed by this subdivision must be paid from the health care
access fund. There is annually appropriated from the health
care access fund to the commissioner the amount necessary to
make any refunds of the tax imposed under this subdivision.

Sec. 6. new text begin PROGRESS DEPENDENT UPON FUNDING.
new text end

new text begin The board shall carry out its obligations to the extent
permitted by financial and other resources available to the
board for that purpose. The board may seek and accept gifts and
grants.
new text end

Sec. 7. new text begin APPROPRIATION; LOAN.
new text end

new text begin The base appropriation for this program in fiscal year 2008
is $3,000,000 to the commissioner of commerce as a loan for
start-up costs to the Minnesota School Employee Insurance
Board. The Minnesota School Employee Insurance Board must repay
the loan to the general fund in ten equal installments paid at
the end of each fiscal year, beginning with the 2010 fiscal year.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective for fiscal year 2008 and later.
new text end

ARTICLE 8

TECHNICAL AND CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2004, section 120B.31,
subdivision 4, is amended to read:


Subd. 4.

Statistical adjustments.

In developing policies
and assessment processes to hold schools and districts
accountable for high levels of academic standardsdeleted text begin , including the
profile of learning
deleted text end new text begin under section 120B.021new text end , the commissioner
shall aggregate student data over time to report student
performance levels measured at the school district, regional, or
statewide level. When collecting and reporting the data, the
commissioner shall: (1) acknowledge the impact of significant
demographic factors such as residential instability, the number
of single parent families, parents' level of education, and
parents' income level on school outcomes; and (2) organize and
report the data so that state and local policy makers can
understand the educational implications of changes in districts'
demographic profiles over time. Any report the commissioner
disseminates containing summary data on student performance must
integrate student performance and the demographic factors that
strongly correlate with that performance.

Sec. 2.

Minnesota Statutes 2004, section 121A.41,
subdivision 10, is amended to read:


Subd. 10.

Suspension.

"Suspension" means an action by
the school administration, under rules promulgated by the school
board, prohibiting a pupil from attending school for a period of
no more than ten school days. If a suspension is longer than
five days, the suspending administrator must provide the
superintendent with a reason for the longer suspension. This
definition does not apply to dismissal from school for one
school day or less, except as provided in federal law for a
student with a disability. Each suspension action may include a
readmission plan. The readmission plan shall include, where
appropriate, a provision for implementing alternative
educational services upon readmission and may not be used to
extend the current suspension. Consistent with section
deleted text begin 125A.09 deleted text end new text begin 125A.091new text end , subdivision deleted text begin 3 deleted text end new text begin 5new text end , the readmission plan must not
obligate a parent to provide a sympathomimetic medication for
the parent's child as a condition of readmission. The school
administration may not impose consecutive suspensions against
the same pupil for the same course of conduct, or incident of
misconduct, except where the pupil will create an immediate and
substantial danger to self or to surrounding persons or
property, or where the district is in the process of initiating
an expulsion, in which case the school administration may extend
the suspension to a total of 15 days. In the case of a student
with a disability, the student's individual education plan team
must meet immediately but not more than ten school days after
the date on which the decision to remove the student from the
student's current education placement is made. The individual
education plan team and other qualified personnel shall at that
meeting: conduct a review of the relationship between the
child's disability and the behavior subject to disciplinary
action; and determine the appropriateness of the child's
education plan.

The requirements of the individual education plan team
meeting apply when:

(1) the parent requests a meeting;

(2) the student is removed from the student's current
placement for five or more consecutive days; or

(3) the student's total days of removal from the student's
placement during the school year exceed ten cumulative days in a
school year. The school administration shall implement
alternative educational services when the suspension exceeds
five days. A separate administrative conference is required for
each period of suspension.

Sec. 3.

Minnesota Statutes 2004, section 124D.10,
subdivision 8, is amended to read:


Subd. 8.

State and local requirements.

(a) A charter
school shall meet all applicable state and local health and
safety requirements.

(b) A school sponsored by a school board may be located in
any district, unless the school board of the district of the
proposed location disapproves by written resolution.

(c) A charter school must be nonsectarian in its programs,
admission policies, employment practices, and all other
operations. A sponsor may not authorize a charter school or
program that is affiliated with a nonpublic sectarian school or
a religious institution.

(d) Charter schools must not be used as a method of
providing education or generating revenue for students who are
being home-schooled.

(e) The primary focus of a charter school must be to
provide a comprehensive program of instruction for at least one
grade or age group from five through 18 years of age.
Instruction may be provided to people younger than five years
and older than 18 years of age.

(f) A charter school may not charge tuition.

(g) A charter school is subject to and must comply with
chapter 363A and section 121A.04.

(h) A charter school is subject to and must comply with the
Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the
Minnesota Public School Fee Law, sections 123B.34 to 123B.39.

(i) A charter school is subject to the same financial
audits, audit procedures, and audit requirements as a district.
Audits must be conducted in compliance with generally accepted
governmental auditing standards, the Federal Single Audit Act,
if applicable, and section 6.65. A charter school is subject to
and must comply with sections 15.054; 118A.01; 118A.02; 118A.03;
118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38;
471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3,
4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must
comply with the requirements of sections 123B.75 to 123B.83,
except to the extent deviations are necessary because of the
program at the school. Deviations must be approved by the
commissioner. The Department of Education, state auditor, or
legislative auditor may conduct financial, program, or
compliance audits. A charter school determined to be in
statutory operating debt under sections 123B.81 to 123B.83 must
submit a plan under section 123B.81, subdivision 4.

(j) A charter school is a district for the purposes of tort
liability under chapter 466.

(k) A charter school must comply with sections 13.32;
120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3
and 5.

(l) A charter school is subject to the Pledge of Allegiance
requirement under section 121A.11, subdivision 3.

new text begin (m) Charter school board of director open meeting
requirements are governed according to subdivision 4.
new text end

Sec. 4.

Minnesota Statutes 2004, section 124D.40, is
amended to read:


124D.40 YOUTH WORKS GRANTS.

Subdivision 1.

Application.

An eligible organization
interested in receiving a grant under sections 124D.39 to
124D.44 may prepare and submit new text begin an application new text end to the commission
deleted text begin an application that complies with section 124D.41deleted text end .

Subd. 2.

Grant authority.

The commission must use any
state appropriation and any available federal funds, including
any grant received under federal law, to award grants to
establish programs for youth works deleted text begin meeting the requirements of
section 124D.41
deleted text end . At least one grant each must be available for
a metropolitan proposal, a rural proposal, and a statewide
proposal. If a portion of the suburban metropolitan area is not
included in the metropolitan grant proposal, the statewide grant
proposal must incorporate at least one suburban metropolitan
area. In awarding grants, the commission may select at least
one residential proposal and one nonresidential proposaldeleted text begin ,
provided the proposals meet or exceed the criteria in section
124D.41
deleted text end .

Sec. 5.

Minnesota Statutes 2004, section 127A.41,
subdivision 8, is amended to read:


Subd. 8.

Appropriation transfers.

(a) If a direct
appropriation from the general fund to the department for any
education aid or grant authorized in this chapter and chapters
122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding
appropriations under sections 124D.135, 124D.16, 124D.20,
deleted text begin 124D.21,deleted text end 124D.22, 124D.52, 124D.531, deleted text begin 124D.54,deleted text end 124D.55, and
124D.56, exceeds the amount required, the commissioner may
transfer the excess to any education aid or grant appropriation
that is insufficient. However, section 126C.20 applies to a
deficiency in the direct appropriation for general education
aid. Excess appropriations must be allocated proportionately
among aids or grants that have insufficient appropriations. The
commissioner of finance shall make the necessary transfers among
appropriations according to the determinations of the
commissioner. If the amount of the direct appropriation for the
aid or grant plus the amount transferred according to this
subdivision is insufficient, the commissioner shall prorate the
available amount among eligible districts. The state is not
obligated for any additional amounts.

(b) Transfers for aids paid under section 127A.45,
subdivisions 12, paragraph (a), 12a, paragraph (a), and 13,
shall be made during the fiscal year after the fiscal year of
the entitlement. Transfers for aids paid under section 127A.45,
subdivisions 11, 12, paragraph (b), and 12a, paragraph (b),
shall be made during the fiscal year of the appropriation.

Sec. 6.

Minnesota Statutes 2004, section 127A.45,
subdivision 12, is amended to read:


Subd. 12.

Payment percentage for certain aids.

(a) One
hundred percent of the aid for the current fiscal year must be
paid for the following aids: reimbursement for enrollment
options transportation, according to sections 124D.03,
subdivision 8, 124D.09, subdivision 22, and 124D.10; school
lunch aid, according to section 124D.111; hearing impaired
support services aid, according to section 124D.57; and Indian
postsecondary preparation grants according to section
deleted text begin 124D.80 deleted text end new text begin 124D.81new text end .

(b) One hundred percent of the aid for the current fiscal
year, based on enrollment in the previous year, must be paid for
the first grade preparedness program according to section
124D.081.

ARTICLE 9

EFFECTIVE DATE

Section 1. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective retroactively from July 1, 2005,
unless otherwise indicated.
new text end