1.1                          A bill for an act 
  1.2             relating to education; modifying special education 
  1.3             provisions; appropriating money; amending Minnesota 
  1.4             Statutes 2000, sections 120A.22, subdivision 7; 
  1.5             122A.31, subdivision 2; 125A.023, subdivision 4, and 
  1.6             by adding a subdivision; 125A.027, by adding a 
  1.7             subdivision; 125A.07; 125A.09, subdivision 11; 
  1.8             125A.11, subdivision 3; 125A.27, subdivision 15; 
  1.9             125A.515; and 125A.76, subdivisions 1 and 2. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 120A.22, 
  1.12  subdivision 7, is amended to read: 
  1.13     Subd. 7.  [EDUCATION RECORDS.] (a) A district from which a 
  1.14  student is transferring must transmit the student's educational 
  1.15  records, within ten business days of a request, to the district 
  1.16  in which the student is enrolling.  Districts must make 
  1.17  reasonable efforts to determine the district in which a 
  1.18  transferring student is next enrolling in order to comply with 
  1.19  this subdivision. 
  1.20     (b) A school district that transmits a student's 
  1.21  educational records to another school district or other 
  1.22  educational entity to which the student is transferring must 
  1.23  include in the transmitted records information about 
  1.24  disciplinary action taken as a result of any incident in which 
  1.25  the student possessed or used a dangerous weapon.  
  1.26     (c) School districts must establish and implement 
  1.27  procedures for the accurate and timely transfer of educational 
  2.1   records, including individual education plans and special 
  2.2   education evaluation reports, to others having an educational 
  2.3   interest in the child within the ten-day limit imposed by 
  2.4   statute.  These procedures must be in place and operational 
  2.5   year-round. 
  2.6      Sec. 2.  Minnesota Statutes 2000, section 122A.31, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In 
  2.9   addition to any other requirements that a school district 
  2.10  establishes, any person employed to provide oral transliterating 
  2.11  or cued speech transliterating services on a full-time or 
  2.12  part-time basis for a school district after July 1, 2000, must 
  2.13  hold a current applicable transliterator certificate awarded by 
  2.14  the national certifying association or comparable state 
  2.15  certification from the commissioner of children, families, and 
  2.16  learning. 
  2.17     (b) To provide oral or cued speech transliterator services 
  2.18  on a full-time or part-time basis, a person employed in a school 
  2.19  district must comply with paragraph (a).  The commissioner shall 
  2.20  grant a nonrenewable, two-year certificate to a school district 
  2.21  on behalf of a person who has not yet attained a current 
  2.22  applicable transliterator certificate pursuant to paragraph 
  2.23  (a).  A person for whom a nonrenewable, two-year certificate is 
  2.24  issued must work under the direction of a licensed teacher who 
  2.25  is skilled in language development of individuals who are deaf 
  2.26  or hard-of-hearing.  A person for whom a nonrenewable, two-year 
  2.27  certificate is issued must also enroll in state-approved 
  2.28  training and demonstrate progress towards the certification 
  2.29  required under paragraph (a) sufficient for the person to be 
  2.30  certified at the end of the two-year period. 
  2.31     Sec. 3.  Minnesota Statutes 2000, section 125A.023, 
  2.32  subdivision 4, is amended to read: 
  2.33     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
  2.34  shall convene an 18-member a 19-member interagency committee to 
  2.35  develop and implement a coordinated, multidisciplinary, 
  2.36  interagency intervention service system for children ages three 
  3.1   to 21 with disabilities.  The commissioners of commerce, 
  3.2   children, families, and learning, health, human rights, human 
  3.3   services, economic security, and corrections shall each appoint 
  3.4   two committee members from their departments; the association of 
  3.5   Minnesota counties shall appoint two county representatives, one 
  3.6   of whom must be an elected official, as committee members; and 
  3.7   the Minnesota school boards association, the Minnesota 
  3.8   administrators of special education, and the school nurse 
  3.9   association of Minnesota shall each appoint one committee 
  3.10  member.  The committee shall select a chair from among its 
  3.11  members. 
  3.12     (b) The committee shall: 
  3.13     (1) identify and assist in removing state and federal 
  3.14  barriers to local coordination of services provided to children 
  3.15  with disabilities; 
  3.16     (2) identify adequate, equitable, and flexible funding 
  3.17  sources to streamline these services; 
  3.18     (3) develop guidelines for implementing policies that 
  3.19  ensure a comprehensive and coordinated system of all state and 
  3.20  local agency services, including multidisciplinary assessment 
  3.21  practices for children with disabilities ages three to 21; 
  3.22     (4) develop, consistent with federal law, a standardized 
  3.23  written plan for providing services to a child with 
  3.24  disabilities; 
  3.25     (5) identify how current systems for dispute resolution can 
  3.26  be coordinated and develop guidelines for that coordination; 
  3.27     (6) develop an evaluation process to measure the success of 
  3.28  state and local interagency efforts in improving the quality and 
  3.29  coordination of services to children with disabilities ages 
  3.30  three to 21; 
  3.31     (7) develop guidelines to assist the governing boards of 
  3.32  the interagency early intervention committees in carrying out 
  3.33  the duties assigned in section 125A.027, subdivision 1, 
  3.34  paragraph (b); and 
  3.35     (8) carry out other duties necessary to develop and 
  3.36  implement within communities a coordinated, multidisciplinary, 
  4.1   interagency intervention service system for children with 
  4.2   disabilities. 
  4.3      (c) The committee shall consult on an ongoing basis with 
  4.4   the state education advisory committee for special education and 
  4.5   the governor's interagency coordinating council in carrying out 
  4.6   its duties under this section, including assisting the governing 
  4.7   boards of the interagency early intervention committees. 
  4.8      Sec. 4.  Minnesota Statutes 2000, section 125A.023, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 8.  [COORDINATION OF SERVICES.] By July 1, 2002, the 
  4.11  department of children, families, and learning shall, in 
  4.12  conjunction with the department of human services, develop a 
  4.13  plan to identify possible revenue options from medical 
  4.14  assistance funds, including targeted case management, and other 
  4.15  appropriate federal funds and develop a recommended procedure 
  4.16  for use at the local level for the purpose of coordination of 
  4.17  services needed to implement the individual interagency 
  4.18  intervention plan required in subdivision 4, paragraph (b), 
  4.19  clause (4). 
  4.20     Sec. 5.  Minnesota Statutes 2000, section 125A.027, is 
  4.21  amended by adding a subdivision to read: 
  4.22     Subd. 4.  [RESPONSIBILITIES OF SCHOOL AND COUNTY 
  4.23  BOARDS.] (a) It is the joint responsibility of school and county 
  4.24  boards to coordinate, provide, and pay for appropriate services, 
  4.25  and to facilitate payment for services from public and private 
  4.26  sources.  Appropriate service for children eligible under 
  4.27  section 125A.02 and receiving service from two or more public 
  4.28  agencies of which one is the public school must be determined in 
  4.29  consultation with parents, physicians, and other education, 
  4.30  medical health, and human services providers.  The services 
  4.31  provided must be in conformity with an Individual Interagency 
  4.32  Intervention Plan (IIIP) for each eligible child ages 3 to 21. 
  4.33     (b) Appropriate services include those services listed on a 
  4.34  child's IIIP.  These services are those that are required to be 
  4.35  documented on a plan under federal and state law or rule. 
  4.36     (c) School and county boards shall coordinate interagency 
  5.1   services.  Service responsibilities for eligible children, ages 
  5.2   3 to 21, shall be established in interagency agreements or joint 
  5.3   powers board agreements.  In addition, interagency agreements or 
  5.4   joint powers board agreements shall be developed to establish 
  5.5   agency responsibility that assures that coordinated interagency 
  5.6   services are coordinated, provided, and paid for, and that 
  5.7   payment is facilitated from public and private sources.  School 
  5.8   boards must provide, pay for, and facilitate payment for special 
  5.9   education services as required under sections 125A.05 and 
  5.10  125A.06.  County boards must provide, pay for, and facilitate 
  5.11  payment for those programs over which they have service and 
  5.12  fiscal responsibility as referenced in section 125A.023, 
  5.13  subdivision 3, paragraph (d), clause (1). 
  5.14     Sec. 6.  Minnesota Statutes 2000, section 125A.07, is 
  5.15  amended to read: 
  5.16     125A.07 [RULES OF COMMISSIONER.] 
  5.17     (a) As defined in this paragraph, the commissioner must 
  5.18  adopt rules relative to qualifications of essential personnel,; 
  5.19  courses of study,; methods of instruction,; pupil 
  5.20  eligibility,; workloads to include the intensity of student 
  5.21  needs, the instructional minutes available, and IEP management; 
  5.22  size of classes,; rooms,; equipment,; supervision,; 
  5.23  parent consultation,; and other necessary rules for instruction 
  5.24  of children with a disability.  These rules must provide 
  5.25  standards and procedures appropriate for the implementation of 
  5.26  and within the limitations of sections 125A.08 and 125A.09.  
  5.27  These rules must also provide standards for the discipline, 
  5.28  control, management, and protection of children with a 
  5.29  disability.  The commissioner must not adopt rules for pupils 
  5.30  served primarily in the regular classroom establishing either 
  5.31  case loads or the maximum number of pupils that may be assigned 
  5.32  to special education teachers.  The commissioner, in 
  5.33  consultation with the departments of health and human services, 
  5.34  must adopt permanent rules for instruction and services for 
  5.35  children under age five and their families.  These rules are 
  5.36  binding on state and local education, health, and human services 
  6.1   agencies.  The commissioner must adopt rules to determine 
  6.2   eligibility for special education services.  The rules must 
  6.3   include procedures and standards by which to grant variances for 
  6.4   experimental eligibility criteria.  The commissioner must, 
  6.5   according to section 14.05, subdivision 4, notify a district 
  6.6   applying for a variance from the rules within 45 calendar days 
  6.7   of receiving the request whether the request for the variance 
  6.8   has been granted or denied.  If a request is denied, the 
  6.9   commissioner must specify the program standards used to evaluate 
  6.10  the request and the reasons for denying the request.  
  6.11     (b) As provided in this paragraph, the state's regulatory 
  6.12  scheme should support schools by assuring that all state special 
  6.13  education rules adopted by the commissioner result in one or 
  6.14  more of the following outcomes: 
  6.15     (1) increased time available to teachers and, where 
  6.16  appropriate, to support staff including school nurses for 
  6.17  educating students through direct and indirect instruction; 
  6.18     (2) consistent and uniform access to effective education 
  6.19  programs for students with disabilities throughout the state; 
  6.20     (3) reduced inequalities and conflict, appropriate due 
  6.21  process hearing procedures and reduced court actions related to 
  6.22  the delivery of special education instruction and services for 
  6.23  students with disabilities; 
  6.24     (4) clear expectations for service providers and for 
  6.25  students with disabilities; 
  6.26     (5) increased accountability for all individuals and 
  6.27  agencies that provide instruction and other services to students 
  6.28  with disabilities; 
  6.29     (6) greater focus for the state and local resources 
  6.30  dedicated to educating students with disabilities; and 
  6.31     (7) clearer standards for evaluating the effectiveness of 
  6.32  education and support services for students with disabilities. 
  6.33     Sec. 7.  Minnesota Statutes 2000, section 125A.09, 
  6.34  subdivision 11, is amended to read: 
  6.35     Subd. 11.  [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 
  6.36  commissioner must select an individual who has the 
  7.1   qualifications enumerated in this subdivision to serve as the 
  7.2   hearing review officer: 
  7.3      (1) the individual must be knowledgeable and impartial; 
  7.4      (2) the individual must not have a personal interest in or 
  7.5   specific involvement with the student who is a party to the 
  7.6   hearing; 
  7.7      (3) the individual must not have been employed as an 
  7.8   administrator by the district that is a party to the hearing; 
  7.9      (4) the individual must not have been involved in the 
  7.10  selection of the administrators of the district that is a party 
  7.11  to the hearing; 
  7.12     (5) the individual must not have a personal, economic, or 
  7.13  professional interest in the outcome of the hearing other than 
  7.14  the proper administration of the federal and state laws, rules, 
  7.15  and policies; 
  7.16     (6) the individual must not have substantial involvement in 
  7.17  the development of a state or local policy or procedures that 
  7.18  are challenged in the appeal; 
  7.19     (7) the individual is not a current employee or board 
  7.20  member of a Minnesota public school district, education 
  7.21  district, intermediate unit or regional education agency or the 
  7.22  department; and 
  7.23     (8) (7) the individual is not a current employee or board 
  7.24  member of a disability advocacy organization or group. 
  7.25     Sec. 8.  Minnesota Statutes 2000, section 125A.11, 
  7.26  subdivision 3, is amended to read: 
  7.27     Subd. 3.  [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL 
  7.28  INSTRUCTION AND SERVICES.] For the purposes of this section, any 
  7.29  school district may enter into an agreement, upon mutually 
  7.30  agreed upon terms and conditions, to provide special instruction 
  7.31  and services for children with a disability.  In that event, one 
  7.32  of the participating units may employ and contract with 
  7.33  necessary qualified personnel to offer services in the several 
  7.34  districts.  Each participating unit must reimburse the employing 
  7.35  unit a proportionate amount of the actual cost of providing the 
  7.36  special instruction and services, less the amount of state 
  8.1   special education aid, which shall be claimed in full by the 
  8.2   employing district.  
  8.3      Sec. 9.  Minnesota Statutes 2000, section 125A.27, 
  8.4   subdivision 15, is amended to read: 
  8.5      Subd. 15.  [PART H C STATE PLAN.] "Part H C state plan" 
  8.6   means the annual state plan application approved by the federal 
  8.7   government under the Individuals with Disabilities Education 
  8.8   Act, United States Code, title 20, section 1471 et seq. (Part H 
  8.9   C, Public Law Number 102-119 105-117). 
  8.10     Sec. 10.  Minnesota Statutes 2000, section 125A.515, is 
  8.11  amended to read: 
  8.12     125A.515 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
  8.13  APPROVAL OF EDUCATION PROGRAM.] 
  8.14     The commissioner shall approve education programs in care 
  8.15  and treatment facilities for placement of children without 
  8.16  disabilities, including detention centers, before being licensed 
  8.17  by the department of human services or the department of 
  8.18  corrections.  For the purposes of this section, care and 
  8.19  treatment facilities includes adult facilities that admit 
  8.20  children and provide an education program specifically designed 
  8.21  for children who are residents of the facility including 
  8.22  chemical dependency and other substance abuse programs, shelter 
  8.23  care facilities, hospitals, correctional facilities, mental 
  8.24  health programs, and detention facilities. 
  8.25     Sec. 11.  Minnesota Statutes 2000, section 125A.76, 
  8.26  subdivision 1, is amended to read: 
  8.27     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  8.28  section, the definitions in this subdivision apply. 
  8.29     (a) "Base year" for fiscal year 1998 and later fiscal years 
  8.30  means the second fiscal year preceding the fiscal year for which 
  8.31  aid will be paid. 
  8.32     (b) "Basic revenue" has the meaning given it in section 
  8.33  126C.10, subdivision 2.  For the purposes of computing basic 
  8.34  revenue pursuant to this section, each child with a disability 
  8.35  shall be counted as prescribed in section 126C.05, subdivision 1.
  8.36     (c) "Essential personnel" means teachers, cultural 
  9.1   liaisons, related services, and support services staff providing 
  9.2   direct services to students.  Essential personnel may also 
  9.3   include special education paraprofessionals or clericals 
  9.4   providing support to teachers and students by preparing 
  9.5   paperwork and making arrangements related to special education 
  9.6   compliance requirements, including parent meetings and 
  9.7   individual education plans. 
  9.8      (d) "Average daily membership" has the meaning given it in 
  9.9   section 126C.05. 
  9.10     (e) "Program growth factor" means 1.08 for fiscal year 
  9.11  2002, and 1.046 for fiscal year 2003 and later. 
  9.12     Sec. 12.  Minnesota Statutes 2000, section 125A.76, 
  9.13  subdivision 2, is amended to read: 
  9.14     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
  9.15  education base revenue equals the sum of the following amounts 
  9.16  computed using base year data: 
  9.17     (1) 68 percent of the salary of each essential person 
  9.18  employed in the district's program for children with a 
  9.19  disability during the fiscal year, not including the share of 
  9.20  salaries for personnel providing health-related services counted 
  9.21  in clause (8), whether the person is employed by one or more 
  9.22  districts or a Minnesota correctional facility operating on a 
  9.23  fee-for-service basis; 
  9.24     (2) for the Minnesota state academy for the deaf or the 
  9.25  Minnesota state academy for the blind, 68 percent of the salary 
  9.26  of each instructional aide assigned to a child attending the 
  9.27  academy, if that aide is required by the child's individual 
  9.28  education plan; 
  9.29     (3) for special instruction and services provided to any 
  9.30  pupil by contracting with public, private, or voluntary agencies 
  9.31  other than school districts, in place of special instruction and 
  9.32  services provided by the district, 52 percent of the difference 
  9.33  between the amount of the contract and the amount of the basic 
  9.34  revenue of the district for that pupil, as defined in section 
  9.35  126C.10, subdivision 2, special education aid, and any other aid 
  9.36  earned on behalf of the child for the fraction of the school day 
 10.1   the pupil receives services under the contract; 
 10.2      (4) for special instruction and services provided to any 
 10.3   pupil by contracting for services with public, private, or 
 10.4   voluntary agencies other than school districts, that are 
 10.5   supplementary to a full educational program provided by the 
 10.6   school district, 52 percent of the amount of the contract for 
 10.7   that pupil; 
 10.8      (5) for supplies and equipment purchased or rented for use 
 10.9   in the instruction of children with a disability, not including 
 10.10  the portion of the expenses for supplies and equipment used to 
 10.11  provide health-related services counted in clause (8), an amount 
 10.12  equal to 47 percent of the sum actually expended by the 
 10.13  district, or a Minnesota correctional facility operating on a 
 10.14  fee-for-service basis, but not to exceed an average of $47 in 
 10.15  any one school year for each child with a disability receiving 
 10.16  instruction; 
 10.17     (6) for fiscal years 1997 and later, special education base 
 10.18  revenue shall include amounts under clauses (1) to (5) for 
 10.19  special education summer programs provided during the base year 
 10.20  for that fiscal year; and 
 10.21     (7) for fiscal years 1999 and later, the cost of providing 
 10.22  transportation services for children with disabilities under 
 10.23  section 123B.92, subdivision 1, paragraph (b), clause (4). 
 10.24     The department shall establish procedures through the 
 10.25  uniform financial accounting and reporting system to identify 
 10.26  and track all revenues generated from third-party billings as 
 10.27  special education revenue at the school district level; include 
 10.28  revenue generated from third-party billings as special education 
 10.29  revenue in the annual cross-subsidy report; and exclude 
 10.30  third-party revenue from calculation of excess cost aid to the 
 10.31  districts. 
 10.32     (b) If requested by a school district operating a special 
 10.33  education program during the base year for less than the full 
 10.34  fiscal year, or a school district in which is located a 
 10.35  Minnesota correctional facility operating on a fee-for-service 
 10.36  basis for less than the full fiscal year, the commissioner may 
 11.1   adjust the base revenue to reflect the expenditures that would 
 11.2   have occurred during the base year had the program been operated 
 11.3   for the full fiscal year. 
 11.4      (c) Notwithstanding paragraphs (a) and (b), the portion of 
 11.5   a school district's base revenue attributable to a Minnesota 
 11.6   correctional facility operating on a fee-for-service basis 
 11.7   during the facility's first year of operating on a 
 11.8   fee-for-service basis shall be computed using current year data. 
 11.9      Sec. 13.  [APPROPRIATIONS.] 
 11.10     $500,000 in fiscal year 2002 and $500,000 in fiscal year 
 11.11  2003 are appropriated from the general fund to the commissioner 
 11.12  of children, families, and learning for ongoing development, 
 11.13  administration, and interagency training costs associated with a 
 11.14  statewide, Web-based, application for the individual interagency 
 11.15  intervention plan required in Minnesota Statutes, section 
 11.16  125A.023.