1.1                          A bill for an act 
  1.2             relating to education; modifying student disciplinary 
  1.3             provisions relating to children with disabilities; 
  1.4             modifying special education provisions; providing for 
  1.5             rulemaking; amending Minnesota Statutes 1998, sections 
  1.6             121A.41, subdivision 10; 121A.43; 125A.023; 125A.027; 
  1.7             125A.03; 125A.09, subdivision 6; 125A.10; 125A.18; 
  1.8             125A.24; and 125A.75, subdivision 8; repealing Laws 
  1.9             1998, chapter 398, article 2, section 53; Minnesota 
  1.10            Rules, part 3525.2470. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 121A.41, 
  1.13  subdivision 10, is amended to read: 
  1.14     Subd. 10.  [SUSPENSION.] (a) "Suspension" means an action 
  1.15  by the school administration, under rules promulgated by the 
  1.16  school board, prohibiting a pupil from attending school for a 
  1.17  period of no more than ten school days.  If a suspension is 
  1.18  longer than five days, the suspending administrator must provide 
  1.19  the superintendent with a reason for the longer suspension.  
  1.20  This definition does not apply to dismissal from school for one 
  1.21  school day or less, except as provided in federal law for a 
  1.22  student with a disability.  Each suspension action may include a 
  1.23  readmission plan.  The readmission plan shall include, where 
  1.24  appropriate, a provision for implementing alternative 
  1.25  educational services upon readmission and may not be used to 
  1.26  extend the current suspension.  The school administration may 
  1.27  not impose consecutive suspensions against the same pupil for 
  1.28  the same course of conduct, or incident of misconduct, except 
  2.1   where the pupil will create an immediate and substantial danger 
  2.2   to self or to surrounding persons or property, or where the 
  2.3   district is in the process of initiating an expulsion, in which 
  2.4   case the school administration may extend the suspension to a 
  2.5   total of 15 days.  In the case of a pupil student with a 
  2.6   disability, school districts must comply with applicable federal 
  2.7   law the student's individual education plan team must meet 
  2.8   immediately but not more than ten school days after the date on 
  2.9   which the decision to remove the student from the student's 
  2.10  current education placement is made.  The individual education 
  2.11  plan team shall at that meeting: 
  2.12     (1) conduct a review of the relationship between the 
  2.13  child's disability and the behavior subject to disciplinary 
  2.14  action; and 
  2.15     (2) determine the appropriateness of the child's education 
  2.16  plan. 
  2.17     (b) The requirements of the individual education plan team 
  2.18  meeting apply when: 
  2.19     (1) the parent requests a meeting; 
  2.20     (2) the student is removed from the student's current 
  2.21  placement for five or more consecutive days; or 
  2.22     (3) the student's total days of removal from the student's 
  2.23  placement during the school year exceed ten cumulative days in a 
  2.24  school year.  
  2.25  The school administration shall implement alternative 
  2.26  educational services when the suspension exceeds five days.  A 
  2.27  separate administrative conference is required for each period 
  2.28  of suspension. 
  2.29     Sec. 2.  Minnesota Statutes 1998, section 121A.43, is 
  2.30  amended to read: 
  2.31     121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
  2.32  DISABILITY.] 
  2.33     When a pupil who has an individual education plan is 
  2.34  excluded or expelled under sections 121A.40 to 121A.56 for 
  2.35  misbehavior that is not a manifestation of the pupil's 
  2.36  disability, the district shall continue to provide special 
  3.1   education and related services after a period of suspension, if 
  3.2   suspension is imposed.  The district shall initiate a review of 
  3.3   the student's individual education plan within five school days 
  3.4   of and conduct a review of the relationship between the child's 
  3.5   disability and the behavior subject to disciplinary action and 
  3.6   determine the appropriateness of the child's education plan 
  3.7   before commencing an expulsion, or exclusion, or a suspension.  
  3.8      Sec. 3.  Minnesota Statutes 1998, section 125A.023, is 
  3.9   amended to read: 
  3.10     125A.023 [COORDINATED INTERAGENCY SERVICES.] 
  3.11     Subdivision 1.  [CITATION.] This section and section 
  3.12  125A.027 shall be cited as the "Interagency Services for 
  3.13  Children with Disabilities Act." 
  3.14     Subd. 2.  [PURPOSE.] It is the policy of the state to 
  3.15  develop and implement a coordinated, multidisciplinary, 
  3.16  interagency intervention service system for children ages three 
  3.17  to 22 21 with disabilities. 
  3.18     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
  3.19  section 125A.027, the following terms have the meanings given 
  3.20  them: 
  3.21     (a) "Health plan" means: 
  3.22     (1) a health plan under section 62Q.01, subdivision 3; 
  3.23     (2) a county-based purchasing plan under section 256B.692; 
  3.24     (3) a self-insured health plan established by a local 
  3.25  government under section 471.617; or 
  3.26     (4) self-insured health coverage provided by the state to 
  3.27  its employees or retirees. 
  3.28     (b) For purposes of this section, "health plan company" 
  3.29  means an entity that issues a health plan as defined in 
  3.30  paragraph (a). 
  3.31     (c) "Individual interagency intervention plan" means a 
  3.32  standardized written plan describing those programs or services 
  3.33  and the accompanying funding sources available to eligible 
  3.34  children with disabilities. 
  3.35     (d) "Interagency intervention service system" means a 
  3.36  system that coordinates services and programs required in state 
  4.1   and federal law to meet the needs of eligible children with 
  4.2   disabilities ages three to 22 21, including: 
  4.3      (1) services provided under the following programs or 
  4.4   initiatives administered by state or local agencies: 
  4.5      (i) the maternal and child health program under title V of 
  4.6   the Social Security Act, United States Code, title 42, sections 
  4.7   701 to 709; 
  4.8      (ii) the Individuals with Disabilities Education Act under 
  4.9   United States Code, title 20, chapter 33, subchapter II, 
  4.10  sections 1411 to 1420; 
  4.11     (iii) medical assistance under the Social Security Act, 
  4.12  United States Code, title 42, chapter 7, subchapter XIX, section 
  4.13  1396, et seq.; 
  4.14     (iv) the Developmental Disabilities Assistance and Bill of 
  4.15  Rights Act, United States Code, title 42, chapter 75, subchapter 
  4.16  II, sections 6021 to 6030, Part B; 
  4.17     (v) the Head Start Act, United States Code, title 42, 
  4.18  chapter 105, subchapter II, sections 9831 to 9852; 
  4.19     (vi) rehabilitation services provided under chapter 268A; 
  4.20     (vii) Juvenile Court Act services provided under sections 
  4.21  260.011 to 260.301; 
  4.22     (viii) the children's mental health collaboratives under 
  4.23  section 245.493; 
  4.24     (ix) the family service collaboratives under section 
  4.25  124D.23; 
  4.26     (x) the family community support plan under section 
  4.27  245.4881, subdivision 4; 
  4.28     (xi) the MinnesotaCare program under chapter 256L; 
  4.29     (xii) the community health services grants under chapter 
  4.30  145; 
  4.31     (xiii) the Community Social Services Act funding under the 
  4.32  Social Security Act, United States Code, title 42, sections 1397 
  4.33  to 1397f; and 
  4.34     (xiv) the community interagency transition committees under 
  4.35  section 125A.22; 
  4.36     (2) services provided under a health plan in conformity 
  5.1   with an individual family service plan or an individual 
  5.2   education plan; and 
  5.3      (3) additional appropriate services that local agencies and 
  5.4   counties provide on an individual need basis upon determining 
  5.5   eligibility and receiving a request from the interagency early 
  5.6   intervention committee and the child's parent. 
  5.7      (e) "Children with disabilities" has the meaning given in 
  5.8   section 125A.02. 
  5.9      (f) A "standardized written plan" means those individual 
  5.10  services or programs available through the interagency 
  5.11  intervention service system to an eligible child other than the 
  5.12  services or programs described in the child's individual 
  5.13  education plan or the child's individual family service plan. 
  5.14     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
  5.15  shall convene an 18-member interagency committee to develop and 
  5.16  implement a coordinated, multidisciplinary, interagency 
  5.17  intervention service system for children ages three to 22 21 
  5.18  with disabilities.  The commissioners of commerce, children, 
  5.19  families, and learning, health, human rights, human services, 
  5.20  economic security, and corrections shall each appoint two 
  5.21  committee members from their departments; the association of 
  5.22  Minnesota counties shall appoint two county representatives, one 
  5.23  of whom must be an elected official, as committee members; and 
  5.24  the Minnesota school boards association and the school nurse 
  5.25  association of Minnesota shall each appoint one committee 
  5.26  member.  The committee shall select a chair from among its 
  5.27  members. 
  5.28     (b) The committee shall: 
  5.29     (1) identify and assist in removing state and federal 
  5.30  barriers to local coordination of services provided to children 
  5.31  with disabilities; 
  5.32     (2) identify adequate, equitable, and flexible funding 
  5.33  sources to streamline these services; 
  5.34     (3) develop guidelines for implementing policies that 
  5.35  ensure a comprehensive and coordinated system of all state and 
  5.36  local agency services, including multidisciplinary assessment 
  6.1   practices for children with disabilities ages three to 22 21; 
  6.2      (4) develop, consistent with federal law, a standardized 
  6.3   written plan for providing services to a child with 
  6.4   disabilities; 
  6.5      (5) identify how current systems for dispute resolution can 
  6.6   be coordinated and develop guidelines for that coordination; 
  6.7      (6) develop an evaluation process to measure the success of 
  6.8   state and local interagency efforts in improving the quality and 
  6.9   coordination of services to children with disabilities ages 
  6.10  three to 22 21; 
  6.11     (7) develop guidelines to assist the governing boards of 
  6.12  the interagency early intervention committees in carrying out 
  6.13  the duties assigned in section 125A.027, subdivision 1, 
  6.14  paragraph (b); and 
  6.15     (8) carry out other duties necessary to develop and 
  6.16  implement within communities a coordinated, multidisciplinary, 
  6.17  interagency intervention service system for children with 
  6.18  disabilities. 
  6.19     (c) The committee shall consult on an ongoing basis with 
  6.20  the state education advisory committee for special education and 
  6.21  the governor's interagency coordinating council in carrying out 
  6.22  its duties under this section, including assisting the governing 
  6.23  boards of the interagency early intervention committees. 
  6.24     Subd. 5.  [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 
  6.25  commissioner of children, families, and learning, based on 
  6.26  recommendations from the state interagency committee, shall 
  6.27  issue a request for proposals by January 1, 1999, for grants to 
  6.28  the governing boards of interagency intervention committees 
  6.29  under section 125A.027 or a combination of one or more counties 
  6.30  and school districts to establish five voluntary interagency 
  6.31  intervention demonstration projects.  One grant shall be used to 
  6.32  implement a coordinated service system for all eligible children 
  6.33  with disabilities up to age five who received services under 
  6.34  sections 125A.26 to 125A.48.  One grant shall be used to 
  6.35  implement a coordinated service system for a population of 
  6.36  minority children with disabilities from ages 12 to 22 21, who 
  7.1   may have behavioral problems and are in need of transitional 
  7.2   services.  Each project must be operational by July 1, 1999.  
  7.3   The governing boards of the interagency early intervention 
  7.4   committees and the counties and school districts receiving 
  7.5   project grants must develop efficient ways to coordinate 
  7.6   services and funding for children with disabilities ages three 
  7.7   to 22 21, consistent with the requirements of this section and 
  7.8   section 125A.027 and the guidelines developed by the state 
  7.9   interagency committee under this section. 
  7.10     (b) The state interagency committee shall evaluate the 
  7.11  demonstration projects and provide the evaluation results to 
  7.12  interagency early intervention committees. 
  7.13     Subd. 6.  [THIRD-PARTY LIABILITY.] Nothing in this section 
  7.14  and section 125A.027 relieves a health plan company, third party 
  7.15  administrator or other third-party payer of an obligation to pay 
  7.16  for, or changes the validity of an obligation to pay for, 
  7.17  services provided to children with disabilities ages three to 22 
  7.18  21 and their families. 
  7.19     Subd. 7.  [AGENCY OBLIGATION.] Nothing in this section and 
  7.20  section 125A.027 removes the obligation of the state, counties, 
  7.21  local school districts, a regional agency, or a local agency or 
  7.22  organization to comply with any federal or state law that 
  7.23  mandates responsibility for finding, assessing, delivering, 
  7.24  assuring, or paying for education or related services for 
  7.25  children with disabilities and their families. 
  7.26     Sec. 4.  Minnesota Statutes 1998, section 125A.027, is 
  7.27  amended to read: 
  7.28     125A.027 [INTERAGENCY EARLY INTERVENTION COMMITTEE 
  7.29  RESPONSIBILITIES.] 
  7.30     Subdivision 1.  [ADDITIONAL DUTIES.] (a) The governing 
  7.31  boards of the interagency early intervention committees are 
  7.32  responsible for developing and implementing interagency policies 
  7.33  and procedures to coordinate services at the local level for 
  7.34  children with disabilities ages three to 22 21 under guidelines 
  7.35  established by the state interagency committee under section 
  7.36  125A.023, subdivision 4.  Consistent with the requirements in 
  8.1   this section and section 125A.023, the governing boards of the 
  8.2   interagency early intervention committees shall organize as a 
  8.3   joint powers board under section 471.59 or enter into an 
  8.4   interagency agreement that establishes a governance structure. 
  8.5      (b) The governing board of each interagency early 
  8.6   intervention committee as defined in section 125A.30, paragraph 
  8.7   (a), which may include a juvenile justice professional, shall: 
  8.8      (1) identify and assist in removing state and federal 
  8.9   barriers to local coordination of services provided to children 
  8.10  with disabilities; 
  8.11     (2) identify adequate, equitable, and flexible use of 
  8.12  funding by local agencies for these services; 
  8.13     (3) implement policies that ensure a comprehensive and 
  8.14  coordinated system of all state and local agency services, 
  8.15  including multidisciplinary assessment practices, for children 
  8.16  with disabilities ages three to 22 21; 
  8.17     (4) use a standardized written plan for providing services 
  8.18  to a child with disabilities developed under section 125A.023; 
  8.19     (5) access the coordinated dispute resolution system and 
  8.20  incorporate the guidelines for coordinating services at the 
  8.21  local level, consistent with section 125A.023; 
  8.22     (6) use the evaluation process to measure the success of 
  8.23  the local interagency effort in improving the quality and 
  8.24  coordination of services to children with disabilities ages 
  8.25  three to 22 21 consistent with section 125A.023; 
  8.26     (7) develop a transitional plan for children moving from 
  8.27  the interagency early childhood intervention system under 
  8.28  sections 125A.259 to 125A.48 into the interagency intervention 
  8.29  service system under this section; 
  8.30     (8) coordinate services and facilitate payment for services 
  8.31  from public and private institutions, agencies, and health plan 
  8.32  companies; and 
  8.33     (9) share needed information consistent with state and 
  8.34  federal data practices requirements. 
  8.35     Subd. 2.  [APPROPRIATE AND NECESSARY SERVICES.] (a) 
  8.36  Parents, physicians, other health care professionals including 
  9.1   school nurses, and education and human services providers 
  9.2   jointly must determine appropriate and necessary services for 
  9.3   eligible children with disabilities ages three to 22 21.  The 
  9.4   services provided to the child under this section must conform 
  9.5   with the child's standardized written plan.  The governing board 
  9.6   of an interagency early intervention committee must provide 
  9.7   those services contained in a child's individual education plan 
  9.8   and those services for which a legal obligation exists. 
  9.9      (b) Nothing in this section or section 125A.023 increases 
  9.10  or decreases the obligation of the state, county, regional 
  9.11  agency, local school district, or local agency or organization 
  9.12  to pay for education, health care, or social services.  
  9.13     (c) A health plan may not exclude any medically necessary 
  9.14  covered service solely because the service is or could be 
  9.15  identified in a child's individual family service plan, 
  9.16  individual education plan, a plan established under section 504 
  9.17  of the federal Rehabilitation Act of 1973, or a student's 
  9.18  individual health plan.  This paragraph reaffirms the obligation 
  9.19  of a health plan company to provide or pay for certain medically 
  9.20  necessary covered services, and encourages a health plan company 
  9.21  to coordinate this care with any other providers of similar 
  9.22  services.  Also, a health plan company may not exclude from a 
  9.23  health plan any medically necessary covered service such as an 
  9.24  assessment or physical examination solely because the resulting 
  9.25  information may be used for an individual education plan or a 
  9.26  standardized written plan. 
  9.27     Subd. 3.  [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 
  9.28  governing boards of interagency early intervention committees 
  9.29  statewide must implement a coordinated service system for 
  9.30  children up to age five with disabilities consistent with the 
  9.31  requirements of this section and section 125A.023 and the 
  9.32  evaluation results from the demonstration projects under section 
  9.33  125A.023, subdivision 5.  Children with disabilities up to the 
  9.34  age of 22 21 shall be eligible for coordinated services and 
  9.35  their eligibility to receive such services under this section 
  9.36  shall be phased in over a four-year period as follows: 
 10.1      (1) July 1, 2001, children up to age nine become eligible; 
 10.2      (2) July 1, 2002, children up to age 14 become eligible; 
 10.3   and 
 10.4      (3) July 1, 2003, children up to age 22 21 become eligible. 
 10.5      Sec. 5.  Minnesota Statutes 1998, section 125A.03, is 
 10.6   amended to read: 
 10.7      125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 10.8   DISABILITY.] 
 10.9      (a) As defined in paragraph (b), to the extent required in 
 10.10  federal law as of July 1, 1999, every district must provide 
 10.11  special instruction and services, either within the district or 
 10.12  in another district, for children with a disability who are 
 10.13  residents of the district and who are disabled as set forth in 
 10.14  section 125A.02. 
 10.15     (b) Notwithstanding any age limits in laws to the contrary, 
 10.16  special instruction and services must be provided from birth 
 10.17  until September July 1 after the child with a disability becomes 
 10.18  22 21 years old but shall not extend beyond secondary school or 
 10.19  its equivalent, except as provided in section 124D.68, 
 10.20  subdivision 2.  Local health, education, and social service 
 10.21  agencies must refer children under age five who are known to 
 10.22  need or suspected of needing special instruction and services to 
 10.23  the school district.  Districts with less than the minimum 
 10.24  number of eligible children with a disability as determined by 
 10.25  the state board must cooperate with other districts to maintain 
 10.26  a full range of programs for education and services for children 
 10.27  with a disability.  This section does not alter the compulsory 
 10.28  attendance requirements of section 120A.22. 
 10.29     Sec. 6.  Minnesota Statutes 1998, section 125A.09, 
 10.30  subdivision 6, is amended to read: 
 10.31     Subd. 6.  [IMPARTIAL DUE PROCESS HEARING.] Parents, 
 10.32  guardians, and the district must have an opportunity to obtain 
 10.33  an impartial due process hearing initiated and conducted by and 
 10.34  in the district responsible for assuring that an appropriate 
 10.35  program is provided in accordance with state board rules, if the 
 10.36  parent or guardian continues to object to:  
 11.1      (1) a proposed formal educational assessment or proposed 
 11.2   denial of a formal educational assessment of their child; 
 11.3      (2) the proposed placement of their child in, or transfer 
 11.4   of their child to a special education program; 
 11.5      (3) the proposed denial of placement of their child in a 
 11.6   special education program or the transfer of their child from a 
 11.7   special education program; 
 11.8      (4) the proposed provision or addition of special education 
 11.9   services for their child; or 
 11.10     (5) the proposed denial or removal of special education 
 11.11  services for their child.  
 11.12     A hearing officer may limit an impartial due process 
 11.13  hearing to an amount of time sufficient for each party to 
 11.14  present its case.  The party requesting the hearing shall plead 
 11.15  with specificity as to what issues are in dispute and all issues 
 11.16  not pleaded with specificity are deemed waived.  Parties must 
 11.17  limit evidence to the issues specifically pleaded.  A hearing 
 11.18  officer, at the officer's discretion, may exclude cumulative 
 11.19  evidence or may encourage parties to present only essential 
 11.20  witnesses. 
 11.21     Within five business days after the request for a hearing, 
 11.22  or as directed by the hearing officer, the objecting party must 
 11.23  provide the other party with a brief written statement of 
 11.24  particulars of the objection, the reasons for the objection, and 
 11.25  the specific remedies sought.  The other party shall provide the 
 11.26  objecting party with a written response to the statement of 
 11.27  objections within five business days of receipt of the statement.
 11.28     The hearing must take place before an impartial hearing 
 11.29  officer mutually agreed to by the school board and the parent or 
 11.30  guardian.  Within four three business days of the receipt of the 
 11.31  request for the hearing, if the parties have not agreed on the 
 11.32  hearing officer, the board must request the commissioner to 
 11.33  appoint a hearing officer from a list maintained for that 
 11.34  purpose.  If the parties have not agreed upon a hearing officer, 
 11.35  and the board has not requested that a hearing officer be 
 11.36  appointed by the commissioner within four business days after 
 12.1   the receipt of the request, the commissioner shall appoint a 
 12.2   hearing officer upon the request of either party.  A retired 
 12.3   judge, retired court referee, or retired federal magistrate 
 12.4   judge who is otherwise qualified under this section and wishes 
 12.5   to be a hearing officer may be put on the list.  The board must 
 12.6   include with the request the name of the person requesting the 
 12.7   hearing, the name of the student, the attorneys involved, if 
 12.8   any, and the date the hearing request was received.  The hearing 
 12.9   officer must not be a board member or employee of the district 
 12.10  where the child resides or of the child's district of residence, 
 12.11  an employee of any other public agency involved in the education 
 12.12  or care of the child, or any person with a personal or 
 12.13  professional interest that would conflict with the person's 
 12.14  objectivity at the hearing.  A person who otherwise qualifies as 
 12.15  a hearing officer is not an employee of the district solely 
 12.16  because the person is paid by the district to serve as a hearing 
 12.17  officer.  Any party to a hearing, except an expedited hearing 
 12.18  under federal law, may make and serve upon the opposing party 
 12.19  and the commissioner a notice to remove a hearing officer 
 12.20  appointed by the commissioner.  The notice shall be served and 
 12.21  filed within two business days after the party receives notice 
 12.22  of the appointment of the hearing officer by the commissioner. 
 12.23     No such notice may be filed by a party against a hearing 
 12.24  officer who has presided at a motion or any other proceeding of 
 12.25  which the party had notice.  A hearing officer who has presided 
 12.26  at a motion or other proceeding may not be removed except upon 
 12.27  an affirmative showing of prejudice on the part of the hearing 
 12.28  officer.  
 12.29     After the party has once disqualified a hearing officer as 
 12.30  a matter of right, that party may disqualify the substitute 
 12.31  hearing officer only by making an affirmative showing of 
 12.32  prejudice or bias to the commissioner, or to the chief 
 12.33  administrative law judge if the hearing officer is an 
 12.34  administrative law judge. 
 12.35     Upon the filing of a notice to remove or if a party makes 
 12.36  an affirmative showing of prejudice against a substitute hearing 
 13.1   officer, the commissioner shall assign any other hearing officer 
 13.2   to hear the matter. 
 13.3      If the hearing officer requests an independent educational 
 13.4   assessment of a child, the cost of the assessment must be at 
 13.5   district expense.  The proceedings must be recorded and 
 13.6   preserved, at the expense of the school district, pending 
 13.7   ultimate disposition of the action. 
 13.8      Sec. 7.  Minnesota Statutes 1998, section 125A.10, is 
 13.9   amended to read: 
 13.10     125A.10 [COORDINATING INTERAGENCY SERVICES.] 
 13.11     If at the time of initial referral for an educational 
 13.12  assessment, or a reassessment, the district determines that a 
 13.13  child with disabilities who is age 3 through 21 may be eligible 
 13.14  for interagency services, the district may request that the 
 13.15  county of residence provide a representative to the initial 
 13.16  assessment or reassessment team meeting or the first individual 
 13.17  education plan team meeting following the assessment or 
 13.18  reassessment.  The district may request to have a county 
 13.19  representative attend other individual education plan team 
 13.20  meetings when it is necessary to facilitate coordination between 
 13.21  district and county provided services.  Upon request from a 
 13.22  district, the resident county shall provide a representative to 
 13.23  assist the individual education plan team in determining the 
 13.24  child's eligibility for existing health, mental health, or other 
 13.25  support services administered or provided by the county.  The 
 13.26  individual education plan team and the county representative 
 13.27  must develop an interagency plan of care for an eligible child 
 13.28  and the child's family to coordinate services required under the 
 13.29  child's individual education plan with county services.  The 
 13.30  interagency plan of care must include appropriate family 
 13.31  information with the consent of the family, a description of how 
 13.32  services will be coordinated between the district and county, a 
 13.33  description of service coordinator responsibilities and 
 13.34  services, and a description of activities for obtaining 
 13.35  third-party payment for eligible services, including medical 
 13.36  assistance payments.  Any state, county, or city government 
 14.1   agency responsible for providing services or resources to 
 14.2   students with disabilities under this section is subject to the 
 14.3   same dispute resolution systems as local school districts, and 
 14.4   all such agencies must comply with corrective action 
 14.5   requirements that ensue from these systems. 
 14.6      Sec. 8.  Minnesota Statutes 1998, section 125A.18, is 
 14.7   amended to read: 
 14.8      125A.18 [SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.] 
 14.9      No resident of a district who is eligible for special 
 14.10  instruction and services under this section may be denied 
 14.11  instruction and service on a shared time basis consistent with 
 14.12  section 126C.19, subdivision 4, because of attending a nonpublic 
 14.13  school defined in section 123B.41, subdivision 9.  If a resident 
 14.14  pupil with a disability attends a nonpublic school located 
 14.15  within the district of residence, the district must provide 
 14.16  necessary transportation for that pupil within the district 
 14.17  between the nonpublic school and the educational facility where 
 14.18  special instruction and services are provided on a shared time 
 14.19  basis.  If a resident pupil with a disability attends a 
 14.20  nonpublic school located in another district and if no agreement 
 14.21  exists under section 126C.19, subdivision 1 or 2, for providing 
 14.22  special instruction and services on a shared time basis to that 
 14.23  pupil by the district of attendance and where the special 
 14.24  instruction and services are provided within the district of 
 14.25  residence, the district of residence must provide necessary 
 14.26  transportation for that pupil between the boundary of the 
 14.27  district of residence and the educational facility.  The 
 14.28  district of residence may provide necessary transportation for 
 14.29  that pupil between its boundary and the nonpublic school 
 14.30  attended, but the nonpublic school must pay the cost of 
 14.31  transportation provided outside the district boundary.  
 14.32     Parties serving students on a shared time basis have access 
 14.33  to due process hearing system described under United States 
 14.34  Code, title 20, and the complaint system under Code of Federal 
 14.35  Regulations, title 34, section 300.660-662.  In the event it is 
 14.36  determined under these systems that the nonpublic school or 
 15.1   staff impeded the public school district's provision of a free 
 15.2   appropriate education, the commissioner may withhold public 
 15.3   funds available to the nonpublic school proportionally 
 15.4   applicable to that student under section 123B.42. 
 15.5      Sec. 9.  Minnesota Statutes 1998, section 125A.24, is 
 15.6   amended to read: 
 15.7      125A.24 [PARENT ADVISORY COMMITTEES COUNCILS.] 
 15.8      Provisions of Minnesota Rules, part 3525.1100, regarding 
 15.9   parent advisory committees apply to local boards or cooperative 
 15.10  boards carrying out the provisions of this section.  In order to 
 15.11  increase the involvement of parents of children with 
 15.12  disabilities in district policy-making and decision-making, 
 15.13  school districts must have a special education advisory council 
 15.14  that is incorporated into the district's special education 
 15.15  system plan. 
 15.16     (1) This advisory council may be established either for 
 15.17  individual districts or in cooperation with other districts who 
 15.18  are members of the same special education cooperative. 
 15.19     (2) A district may set up this council as a subgroup of an 
 15.20  existing board, council, or committee. 
 15.21     (3) At least half of the designated council members must be 
 15.22  parents of students with a disability.  The number of members, 
 15.23  frequency of meetings, and operational procedures are to be 
 15.24  locally determined. 
 15.25     Sec. 10.  Minnesota Statutes 1998, section 125A.75, 
 15.26  subdivision 8, is amended to read: 
 15.27     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 15.28  year 1999 and thereafter, the commissioner of children, 
 15.29  families, and learning, or the commissioner's designee, shall 
 15.30  use state funds to pay school districts for the administrative 
 15.31  costs of a due process hearing incurred under section 125A.09, 
 15.32  subdivisions 6, 10, and 11, including hearing officer fees, 
 15.33  court reporter fees, mileage costs, transcript 
 15.34  costs, interpreter and transliterator fees, independent 
 15.35  evaluations ordered by the hearing officer, and rental of 
 15.36  hearing rooms, but not including district attorney fees.  To 
 16.1   receive state aid under this paragraph, a school district shall 
 16.2   submit to the commissioner at the end of the school year an 
 16.3   itemized list of unreimbursed actual costs for fees and other 
 16.4   expenses under this paragraph.  State funds used for aid to 
 16.5   school districts under this paragraph shall be based on the 
 16.6   unreimbursed actual costs and fees submitted by a district from 
 16.7   previous school years. 
 16.8      (b) For fiscal year 1999 and thereafter, a school district, 
 16.9   to the extent to which it prevails under United States Code, 
 16.10  title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
 16.11  Rules of Civil Procedure, shall receive state aid equal to 50 
 16.12  percent of the total actual cost of attorney fees incurred after 
 16.13  a request for a due process hearing under section 125A.09, 
 16.14  subdivisions 6, 9, and 11, is served upon the parties.  A 
 16.15  district is eligible for reimbursement for attorney fees under 
 16.16  this paragraph only if: 
 16.17     (1) a court of competent jurisdiction determines that the 
 16.18  parent is not the prevailing party under United States Code, 
 16.19  title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
 16.20  that the parent is not the prevailing party; 
 16.21     (2) the district has made a good faith effort to resolve 
 16.22  the dispute through mediation, but the obligation to mediate 
 16.23  does not compel the district to agree to a proposal or make a 
 16.24  concession; and 
 16.25     (3) the district made an offer of settlement under Rule 68 
 16.26  of the Federal Rules of Civil Procedure.  
 16.27     To receive aid, a school district that meets the criteria 
 16.28  of this paragraph shall submit to the commissioner at the end of 
 16.29  the school year an itemized list of unreimbursed actual attorney 
 16.30  fees associated with a due process hearing under section 
 16.31  125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph 
 16.32  for each school district is based on unreimbursed actual 
 16.33  attorney fees submitted by the district from previous school 
 16.34  years. 
 16.35     (c) For fiscal year 1999 and thereafter, a school district 
 16.36  is eligible to receive state aid for 50 percent of the total 
 17.1   actual cost of attorney fees it incurs in appealing to a court 
 17.2   of competent jurisdiction the findings, conclusions, and order 
 17.3   of a due process hearing under section 125A.09, subdivisions 6, 
 17.4   9, and 11.  The district is eligible for reimbursement under 
 17.5   this paragraph only if the commissioner authorizes the 
 17.6   reimbursement after evaluating the merits of the case.  In a 
 17.7   case where the commissioner is a named party in the litigation, 
 17.8   the commissioner of the bureau of mediation services shall make 
 17.9   the determination regarding reimbursement.  The commissioner's 
 17.10  decision is final. 
 17.11     (d) The commissioner shall provide districts with a form on 
 17.12  which to annually report litigation costs under this section and 
 17.13  shall base aid estimates on those reports.  
 17.14     Sec. 11.  [SPECIAL EDUCATION RULES.] 
 17.15     The commissioner shall adopt rules to update Minnesota 
 17.16  Rules, chapter 3525, for special education.  Provisions of this 
 17.17  chapter that exceed federal requirements are deemed valid for 
 17.18  the purposes of providing special instruction and services to 
 17.19  children with a disability.  In addition to technical changes, 
 17.20  corrections, clarifications, and similarly needed revisions, 
 17.21  specific rules shall be modified or repealed as indicated below: 
 17.22     (1) to Minnesota Rules, part 3525.0200, add definition of 
 17.23  caseload; 
 17.24     (2) revise Minnesota Rules, part 3525.0550, to update role 
 17.25  of IEP manager; 
 17.26     (3) repeal Minnesota Rules, part 3525.1100, subpart 2, item 
 17.27  D, on parent advisory council as duplicative; 
 17.28     (4) to Minnesota Rules, part 3525.1329, amend eligibility 
 17.29  criteria for emotional or behavior disorders so that the 
 17.30  standards reflect severe emotional disorder and professional 
 17.31  standards; 
 17.32     (5) amend Minnesota Rules, part 3525.2325, to revise 
 17.33  outdated standards for students placed for care and treatment to 
 17.34  be compatible with related legislation; 
 17.35     (6) repeal Minnesota Rules, part 3525.2550, on conduct 
 17.36  before assessment except for subpart 2, item C; 
 18.1      (7) add a rule to make the responsibilities of the IEP team 
 18.2   for assessment, IEP development, and placement decisions 
 18.3   consistent with federal requirements; 
 18.4      (8) repeal Minnesota Rules, part 3525.2750, on educational 
 18.5   assessment as duplicative; 
 18.6      (9) repeal Minnesota Rules, part 3525.2900, on IEP 
 18.7   development and content except for subparts 4 and 5 on regulated 
 18.8   interventions; and 
 18.9      (10) repeal Minnesota Rules, part 3525.3300, except item B, 
 18.10  on contents of notice as duplicative.  
 18.11     Sec. 12.  [REPEALER.] 
 18.12     Laws 1998, chapter 398, article 2, section 53, is repealed. 
 18.13  Minnesota Rules, part 3525.2470, is repealed. 
 18.14     Sec. 13.  [EFFECTIVE DATE.] 
 18.15     Sections 1, 2, and 5 to 12 are effective July 1, 1999, 
 18.16  except that the requirement under section 5 to provide special 
 18.17  instruction and services until a child with a disability becomes 
 18.18  21 years old, instead of 22 years old, is effective July 1, 
 18.19  2002.  Sections 3 and 4 are effective July 1, 2002.