1.1                          A bill for an act 
  1.2             relating to education; increasing state support for 
  1.3             special education funding; creating a state revenue 
  1.4             source for court-placed unreimbursed tuition; 
  1.5             requiring special education reciprocity agreements; 
  1.6             appropriating money; amending Minnesota Statutes 1998, 
  1.7             sections 125A.76, subdivisions 1, 2, 4, and 6; 
  1.8             125A.79, subdivisions 1, 2, 3, and by adding a 
  1.9             subdivision; and 126C.10, subdivision 4; proposing 
  1.10            coding for new law in Minnesota Statutes, chapter 
  1.11            125A; repealing Minnesota Statutes 1998, section 
  1.12            125A.77. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [125A.155] [PLACEMENT IN ANOTHER STATE.] 
  1.15     Subdivision 1.  [SPECIAL EDUCATION RECIPROCITY; 
  1.16  COMMISSIONER DUTIES.] The commissioner of children, families, 
  1.17  and learning must develop a special education reciprocity 
  1.18  agreement form.  The reciprocity form must specify the 
  1.19  procedures used to calculate special education tuition charges 
  1.20  for both Minnesota students that are served in other states and 
  1.21  for out-of-state students who are served in Minnesota.  The 
  1.22  commissioner shall attempt to enter into reciprocity agreements 
  1.23  with any state that sends students to Minnesota and any state 
  1.24  that provides services to Minnesota students. 
  1.25     Subd. 2.  [SERVICES TO OUT-OF-STATE STUDENTS.] 
  1.26  Notwithstanding any law to the contrary, a Minnesota school 
  1.27  district is not required to provide special education services 
  1.28  to a student from another state unless that state has entered 
  1.29  into a special education reciprocity agreement with the state of 
  2.1   Minnesota. 
  2.2      Subd. 3.  [TUITION BILLS FROM OTHER STATES.] 
  2.3   Notwithstanding any law to the contrary, except for a student 
  2.4   that has been placed by a Minnesota school district, a Minnesota 
  2.5   school district is not required to pay any tuition bill for a 
  2.6   student who is a resident of Minnesota and who receives special 
  2.7   education services in another state unless that state has 
  2.8   entered into a reciprocity agreement with the state of Minnesota.
  2.9      Sec. 2.  Minnesota Statutes 1998, section 125A.76, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  2.12  section and section 125A.77, the definitions in this subdivision 
  2.13  apply. 
  2.14     (a) "Base year" for fiscal year 1998 and later fiscal years 
  2.15  means the second fiscal year preceding the fiscal year for which 
  2.16  aid will be paid. 
  2.17     (b) "Basic revenue" has the meaning given it in section 
  2.18  126C.10, subdivision 2.  For the purposes of computing basic 
  2.19  revenue pursuant to this section, each child with a disability 
  2.20  shall be counted as prescribed in section 126C.05, subdivision 1.
  2.21     (c) "Essential personnel" means teachers, related services, 
  2.22  and support services staff providing direct services to students.
  2.23     (d) "Average daily membership" has the meaning given it in 
  2.24  section 126C.05. 
  2.25     (e) "Program growth factor" means 1.00 1.05 for fiscal year 
  2.26  2000 2001 and later. 
  2.27     (f) "Aid percentage factor" means 60 percent for fiscal 
  2.28  year 1996, 70 percent for fiscal year 1997, 80 percent for 
  2.29  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
  2.30  percent for fiscal years 2000 and later. 
  2.31     (g) "Levy percentage factor" means 100 minus the aid 
  2.32  percentage factor for that year. "Special education funding 
  2.33  percent" means 75 percent in fiscal year 2000, 85 percent in 
  2.34  fiscal year 2001, 95 percent in fiscal year 2002, and 100 
  2.35  percent in fiscal year 2003 and later. 
  2.36     Sec. 3.  Minnesota Statutes 1998, section 125A.76, 
  3.1   subdivision 2, is amended to read: 
  3.2      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
  3.3   education base revenue equals the sum of the following amounts 
  3.4   computed using base year data: 
  3.5      (1) 68 the special education funding percent of times the 
  3.6   salary and benefits of each essential person employed in the 
  3.7   district's program for children with a disability during the 
  3.8   fiscal year, whether the person is employed by one or more 
  3.9   districts or a Minnesota correctional facility operating on a 
  3.10  fee-for-service basis; 
  3.11     (2) for the Minnesota state academy for the deaf or the 
  3.12  Minnesota state academy for the blind, 68 the special education 
  3.13  funding percent of times the salary and benefits of each 
  3.14  instructional aide assigned to a child attending the academy, if 
  3.15  that aide is required by the child's individual education plan; 
  3.16     (3) for special instruction and services provided to any 
  3.17  pupil by contracting with public, private, or voluntary agencies 
  3.18  other than school districts, in place of special instruction and 
  3.19  services provided by the district, 52 percent of the difference 
  3.20  between the amount of the contract and the basic revenue of the 
  3.21  district for that pupil for the fraction of the school day the 
  3.22  pupil receives services under the contract; 
  3.23     (4) for special instruction and services provided to any 
  3.24  pupil by contracting for services with public, private, or 
  3.25  voluntary agencies other than school districts, that are 
  3.26  supplementary to a full educational program provided by the 
  3.27  school district, 52 percent of the amount of the contract for 
  3.28  that pupil; 
  3.29     (5) for supplies and equipment purchased or rented for use 
  3.30  in the instruction of children with a disability an amount equal 
  3.31  to 47 percent of the sum actually expended by the district, or a 
  3.32  Minnesota correctional facility operating on a fee-for-service 
  3.33  basis, but not to exceed an average of $47 in any one school 
  3.34  year for each child with a disability receiving instruction; 
  3.35     (6) for fiscal years 1997 and later, special education base 
  3.36  revenue shall include amounts under clauses (1) to (5) for 
  4.1   special education summer programs provided during the base year 
  4.2   for that fiscal year; and 
  4.3      (7) for fiscal years 1999 and later, the cost of providing 
  4.4   transportation services for children with disabilities under 
  4.5   section 123B.92, subdivision 1, paragraph (b), clause (4).  
  4.6      (b) If requested by a school district operating a special 
  4.7   education program during the base year for less than the full 
  4.8   fiscal year, or a school district in which is located a 
  4.9   Minnesota correctional facility operating on a fee-for-service 
  4.10  basis for less than the full fiscal year, the commissioner may 
  4.11  adjust the base revenue to reflect the expenditures that would 
  4.12  have occurred during the base year had the program been operated 
  4.13  for the full fiscal year. 
  4.14     (c) Notwithstanding paragraphs (a) and (b), the portion of 
  4.15  a school district's base revenue attributable to a Minnesota 
  4.16  correctional facility operating on a fee-for-service basis 
  4.17  during the facility's first year of operating on a 
  4.18  fee-for-service basis shall be computed using current year data. 
  4.19     Sec. 4.  Minnesota Statutes 1998, section 125A.76, 
  4.20  subdivision 4, is amended to read: 
  4.21     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
  4.22  state total special education revenue for fiscal year 1998 
  4.23  equals $358,542,000.  The state total special education revenue 
  4.24  for fiscal year 1999 equals $435,322,000.  The state total 
  4.25  special education revenue for fiscal year 2000 equals 
  4.26  $624,000,000.  The state total special education revenue for 
  4.27  later fiscal years equals:  
  4.28     (1) the state total special education revenue for the 
  4.29  preceding fiscal year; times 
  4.30     (2) the program growth factor; times 
  4.31     (3) the ratio of the state total average daily membership 
  4.32  for the current fiscal year to the state total average daily 
  4.33  membership for the preceding fiscal year. 
  4.34     Sec. 5.  Minnesota Statutes 1998, section 125A.76, 
  4.35  subdivision 6, is amended to read: 
  4.36     Subd. 6.  [SPECIAL EDUCATION AID.] A district's special 
  5.1   education aid For fiscal year 1996 2000 and later equals the, 
  5.2   a district's special education revenue times the aid percentage 
  5.3   factor for that year is provided entirely through state aid. 
  5.4      Sec. 6.  Minnesota Statutes 1998, section 125A.79, 
  5.5   subdivision 1, is amended to read: 
  5.6      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  5.7   section, the definitions in this subdivision apply. 
  5.8      (a) "Unreimbursed special education cost" means the sum of 
  5.9   the following: 
  5.10     (1) expenditures for teachers' salaries, contracted 
  5.11  services, supplies, equipment, and transportation services 
  5.12  eligible for revenue under section 125A.76; plus 
  5.13     (2) expenditures for tuition bills received under sections 
  5.14  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
  5.15  under sections 125A.76, subdivision 2, and 124.3202, subdivision 
  5.16  1; minus 
  5.17     (3) revenue for teachers' salaries, contracted services, 
  5.18  supplies, and equipment under sections 124.3202 and 124A.76; 
  5.19  minus 
  5.20     (4) tuition receipts under sections 125A.03 to 125A.24 and 
  5.21  125A.65 for services eligible for revenue under sections 
  5.22  124.3202, subdivision 1, and 124A.76, subdivision 2. 
  5.23     (b) "General revenue" means for fiscal year 1996, the sum 
  5.24  of the general education revenue according to section 126C.10, 
  5.25  subdivision 1, as adjusted according to section 127A.47, 
  5.26  subdivision 7, plus the total referendum revenue according to 
  5.27  section 126C.17, subdivision 4.  For fiscal years 1997 and 
  5.28  later, "general revenue" means the sum of the general education 
  5.29  revenue according to section 126C.10, subdivision 1, as adjusted 
  5.30  according to section 127A.47, subdivision 7, plus the total 
  5.31  referendum revenue minus transportation sparsity revenue minus 
  5.32  total operating capital revenue. 
  5.33     (c) "Excess cost funding percent" means 75 percent in 
  5.34  fiscal year 2000, 85 percent in fiscal year 2001, 95 percent in 
  5.35  fiscal year 2002, and 100 percent in fiscal year 2003 and later. 
  5.36     Sec. 7.  Minnesota Statutes 1998, section 125A.79, 
  6.1   subdivision 2, is amended to read: 
  6.2      Subd. 2.  [EXCESS COST REVENUE.] For 1997 and later fiscal 
  6.3   years, a district's special education excess cost revenue equals 
  6.4   the greatest of: 
  6.5      (a) 70 percent of excess cost funding percent times the 
  6.6   difference between (1) the district's unreimbursed special 
  6.7   education cost and (2) 5.7 percent for fiscal year 1997 and 
  6.8   later years of the district's general revenue; 
  6.9      (b) 70 percent of excess cost funding percent times the 
  6.10  difference between (1) the increase in the district's 
  6.11  unreimbursed special education cost between the base year as 
  6.12  defined in section 125A.76, subdivision 1, and the current year 
  6.13  and (2) 1.6 percent of the district's general revenue; or 
  6.14     (c) zero. 
  6.15     Sec. 8.  Minnesota Statutes 1998, section 125A.79, 
  6.16  subdivision 3, is amended to read: 
  6.17     Subd. 3.  [EXCESS COST AID.] For 1996 2000 and later fiscal 
  6.18  years, a district's special education excess cost revenue is 
  6.19  provided entirely through state aid equals the district's 
  6.20  special education excess cost revenue times the aid percentage 
  6.21  factor for that year. 
  6.22     Sec. 9.  Minnesota Statutes 1998, section 125A.79, is 
  6.23  amended by adding a subdivision to read: 
  6.24     Subd. 5.  [TUITION REVENUE.] Notwithstanding sections 
  6.25  125A.03 to 125A.24 and 125A.65, for children who receive 
  6.26  services under section 125A.76, subdivisions 1 and 2, and are 
  6.27  placed in a serving school district by court action or other 
  6.28  action taken by a party other than the resident school district, 
  6.29  the serving school district shall submit unreimbursed tuition 
  6.30  bills for eligible services to the department of children, 
  6.31  families, and learning instead of the resident school district. 
  6.32     Sec. 10.  Minnesota Statutes 1998, section 126C.10, 
  6.33  subdivision 4, is amended to read: 
  6.34     Subd. 4.  [BASIC SKILLS REVENUE.] For fiscal year 1999 2000 
  6.35  and thereafter, a school district's basic skills revenue equals 
  6.36  the sum of: 
  7.1      (1) compensatory revenue under subdivision 3; plus 
  7.2      (2) limited English proficiency revenue according to 
  7.3   section 124D.65, subdivision 5; plus 
  7.4      (3) $190 times the limited English proficiency pupil units 
  7.5   according to section 126C.05, subdivision 17; plus 
  7.6      (4) the lesser of:  (i) $22.50 times the number of adjusted 
  7.7   pupil units in kindergarten to grade 8; or (ii) the amount of 
  7.8   district money provided to match basic skills revenue for the 
  7.9   purposes described in section 126C.15; plus 
  7.10     (5) $20 times the district's resident pupil units for 
  7.11  behavior management programs according to section 11. 
  7.12     Sec. 11.  [BEHAVIOR MANAGEMENT PROGRAMS.] 
  7.13     Subdivision 1.  [POLICY AND PURPOSE.] The purpose of the 
  7.14  behavior management program is to increase student achievement 
  7.15  by providing classroom teachers with the tools necessary to 
  7.16  decrease inappropriate student behavior, reduce the disruption 
  7.17  in the classroom environment, reduce the need for referrals to 
  7.18  special education programs, and reduce the number of students 
  7.19  who are suspended or expelled. 
  7.20     Subd. 2.  [PROGRAM ESTABLISHED.] A school district may 
  7.21  establish a behavior management program.  The program must be 
  7.22  designed to recognize best practices to manage disruptive 
  7.23  student behavior.  The program must include classroom 
  7.24  interventions, parent involvement, community involvement, and 
  7.25  peer mediation. 
  7.26     Subd. 3.  [PROGRAM PARTICIPANTS.] To the extent possible, a 
  7.27  school district's behavior management program must be developed 
  7.28  collaboratively with city and county officials, community 
  7.29  organizations, and family service collaboratives. 
  7.30     Subd. 4.  [REPORTING.] At the end of each biennium, a 
  7.31  school district must report to the commissioner of children, 
  7.32  families, and learning on the effectiveness of the behavior 
  7.33  management program.  The report must include a description of 
  7.34  the number of students served by the program, the number of 
  7.35  students that are participating in programs for emotionally and 
  7.36  behaviorally disabled children, and the decrease in the number 
  8.1   of children served in emotional and behavior disabled programs 
  8.2   for those students who have been continuously enrolled in the 
  8.3   district for the three preceding years. 
  8.4      Sec. 12.  [APPROPRIATIONS.] 
  8.5      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  8.6   LEARNING.] The sums indicated in this section are appropriated 
  8.7   from the general fund to the commissioner of children, families, 
  8.8   and learning for the fiscal years designated. 
  8.9      Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
  8.10  aid under section 125A.76: 
  8.11       $.,...,...     .....     2000 
  8.12       $.,...,...     .....     2001 
  8.13     Subd. 3.  [SPECIAL EDUCATION EXCESS COST AID.] For special 
  8.14  education excess cost aid under section 125A.79: 
  8.15       $.,...,...     .....     2000 
  8.16       $.,...,...     .....     2001 
  8.17     Subd. 4.  [SPECIAL EDUCATION COURT-PLACED TUITION AID.] For 
  8.18  special education court-placed tuition aid under section 
  8.19  125A.79, subdivision 5: 
  8.20       $.,...,...     .....     2000 
  8.21       $.,...,...     .....     2001 
  8.22     Sec. 13.  [REPEALER.] 
  8.23     Minnesota Statutes 1998, section 125A.77, is repealed July 
  8.24  1, 1999, for revenue for fiscal years 2000 and later. 
  8.25     Sec. 14.  [EFFECTIVE DATE.] 
  8.26     Section 1 is effective July 1, 1999.  Sections 2 to 13 are 
  8.27  effective for revenue for fiscal years 2000 and later.