1.1                          A bill for an act 
  1.2             relating to education; providing for prekindergarten 
  1.3             through grade 12 education and early childhood and 
  1.4             family education including general education, special 
  1.5             programs, academic excellence, facilities, nutrition, 
  1.6             and accounting, other programs, libraries, early 
  1.7             childhood programs, prevention, self-sufficiency and 
  1.8             lifelong learning, state agencies, deficiencies, 
  1.9             technical and conforming amendments, and academic 
  1.10            standards; providing for higher education including 
  1.11            extending sunset of education telecommunications 
  1.12            council, requiring eligible institutions to provide 
  1.13            certain data to the Higher Education Services Office, 
  1.14            making changes relating to child care grants and the 
  1.15            Minnesota College Savings Plan, modifying certain 
  1.16            education benefits of public safety officers, making 
  1.17            changes to tuition reciprocity, and authorizing 
  1.18            planning for applied doctoral degrees; repealing 
  1.19            obsolete rules; providing for rulemaking; reducing 
  1.20            appropriations; appropriating money; amending 
  1.21            Minnesota Statutes 2002, sections 13.321, subdivision 
  1.22            1, by adding subdivisions; 119A.46, subdivisions 2, 3, 
  1.23            8; 120A.05, by adding a subdivision; 120B.23, as 
  1.24            amended; 120B.35, by adding a subdivision; 121A.22, 
  1.25            subdivision 2; 121A.34, by adding subdivisions; 
  1.26            121A.45, subdivision 3; 121A.48; 121A.75, by adding a 
  1.27            subdivision; 122A.06, subdivision 4; 122A.12, by 
  1.28            adding a subdivision; 122A.16; 122A.18, subdivision 
  1.29            2a, by adding a subdivision; 122A.20, subdivision 2; 
  1.30            123A.05, subdivision 2; 123A.442, subdivision 2; 
  1.31            123A.443, subdivision 4; 123A.55; 123B.09, subdivision 
  1.32            8; 123B.143, subdivision 1; 123B.195; 123B.36, 
  1.33            subdivision 1; 123B.49, subdivision 4; 123B.53, 
  1.34            subdivision 6; 123B.58, subdivision 2; 123B.71, 
  1.35            subdivision 9; 123B.75, by adding a subdivision; 
  1.36            123B.76, by adding a subdivision; 123B.82; 123B.92, 
  1.37            subdivision 5; 124D.15, subdivisions 1, 3, 5, 8, 10, 
  1.38            12, by adding a subdivision; 124D.16, subdivision 2; 
  1.39            124D.19, subdivision 11; 124D.20, by adding a 
  1.40            subdivision; 124D.59, as amended; 124D.61; 124D.68, 
  1.41            subdivisions 3, 9; 124D.69, subdivision 1; 125A.023, 
  1.42            subdivision 3; 125A.03; 125A.07; 125A.22; 125A.46; 
  1.43            125A.51; 125A.79, subdivisions 5, 7, by adding 
  1.44            subdivisions; 125B.15; 126C.10, subdivision 2; 
  1.45            126C.15, subdivision 2, by adding a subdivision; 
  1.46            126C.21, subdivision 4; 126C.48, subdivision 8; 
  2.1             127A.42, subdivisions 4, 6; 127A.45, subdivision 11; 
  2.2             127A.47, subdivision 3; 134.31, by adding a 
  2.3             subdivision; 134.50; 136A.08, by adding a subdivision; 
  2.4             136A.121, subdivision 2, by adding a subdivision; 
  2.5             136G.11, by adding a subdivision; 169.451; 171.04, 
  2.6             subdivision 1; 171.05, subdivisions 2, 2b, 3; 171.19; 
  2.7             260A.01; 260A.03; 260C.163, subdivision 11; 299A.45, 
  2.8             subdivision 4; 631.40, subdivision 4; Minnesota 
  2.9             Statutes 2003 Supplement, sections 13.46, subdivision 
  2.10            2; 16A.152, subdivision 2; 119A.46, subdivision 1; 
  2.11            120B.021, subdivisions 1, 3, by adding a subdivision; 
  2.12            120B.022, subdivision 1; 120B.024; 120B.36; 121A.64; 
  2.13            122A.09, subdivision 4; 123B.54; 123B.77, subdivision 
  2.14            4; 123B.92, subdivision 1; 124D.095, subdivisions 4, 
  2.15            7, 8; 124D.10, subdivisions 3, 4, 8; 124D.11, 
  2.16            subdivisions 1, 2, 9; 124D.20, subdivision 11; 
  2.17            124D.385, subdivision 2; 124D.42, subdivision 6; 
  2.18            124D.454, subdivision 2; 124D.531, subdivisions 1, 4; 
  2.19            124D.86, subdivisions 3, 4; 125A.023, subdivision 4; 
  2.20            125A.091, subdivision 5; 125A.75, subdivision 8; 
  2.21            125A.79, subdivision 1; 125B.21, subdivision 1; 
  2.22            126C.10, subdivisions 3, 31; 126C.15, subdivision 1; 
  2.23            126C.17, subdivision 9; 126C.40, subdivision 1; 
  2.24            126C.43, subdivisions 2, 3; 126C.44; 126C.457; 
  2.25            126C.63, subdivision 8; 127A.41, subdivision 9; 
  2.26            127A.42, subdivision 2; 127A.47, subdivisions 7, 8; 
  2.27            128C.05, subdivision 1a; 136A.121, subdivision 9; 
  2.28            136A.125, subdivision 2; 136G.11, subdivisions 1, 3; 
  2.29            136G.13, subdivision 1; 275.065, subdivision 1; 
  2.30            475.61, subdivision 4; 626.556, subdivision 2; Laws 
  2.31            2003, chapter 130, section 12; Laws 2003, First 
  2.32            Special Session chapter 9, article 1, section 53, 
  2.33            subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 
  2.34            Special Session chapter 9, article 2, section 55, 
  2.35            subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16, 17, 19, 21, 
  2.36            as amended; Laws 2003, First Special Session chapter 
  2.37            9, article 3, section 19; Laws 2003, First Special 
  2.38            Session chapter 9, article 3, section 20, subdivisions 
  2.39            4, 5, 6, 7, 8, 9; Laws 2003, First Special Session 
  2.40            chapter 9, article 4, section 29; Laws 2003, First 
  2.41            Special Session chapter 9, article 4, section 31, 
  2.42            subdivisions 2, 3; Laws 2003, First Special Session 
  2.43            chapter 9, article 5, section 35, subdivisions 2, 3; 
  2.44            Laws 2003, First Special Session chapter 9, article 6, 
  2.45            section 4; Laws 2003, First Special Session chapter 9, 
  2.46            article 7, section 11, subdivisions 2, 3; Laws 2003, 
  2.47            First Special Session chapter 9, article 8, section 7, 
  2.48            subdivisions 2, 5; Laws 2003, First Special Session 
  2.49            chapter 9, article 9, section 9, subdivisions 2, 5; 
  2.50            Laws 2003, First Special Session chapter 9, article 
  2.51            10, section 10, subdivision 2; Laws 2003, First 
  2.52            Special Session chapter 9, article 10, section 11; 
  2.53            Laws 2003, First Special Session chapter 9, article 
  2.54            10, section 12; proposing coding for new law in 
  2.55            Minnesota Statutes, chapters 120A; 120B; 121A; 122A; 
  2.56            123B; 125B; 127A; 135A; 171; repealing Minnesota 
  2.57            Statutes 2002, sections 124D.15, subdivisions 2, 4, 6, 
  2.58            11, 13; 124D.16, subdivisions 1, 4; 124D.41; 124D.42, 
  2.59            subdivisions 1, 2, 4, 5, 7; 124D.43; 124D.91; 124D.92; 
  2.60            126C.23; 134.47, subdivision 3; Minnesota Statutes 
  2.61            2003 Supplement, sections 124D.15, subdivision 7; 
  2.62            124D.42, subdivision 3; 124D.86, subdivision 5; 
  2.63            136G.11, subdivision 2; Minnesota Rules, parts 
  2.64            4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 
  2.65            4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 
  2.66            4830.8130; 4830.8140; 4830.8150. 
  2.67  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.68                             ARTICLE 1 
  3.1                          GENERAL EDUCATION 
  3.2      Section 1.  Minnesota Statutes 2002, section 120A.05, is 
  3.3   amended by adding a subdivision to read: 
  3.4      Subd. 18.  [KINDERGARTEN.] "Kindergarten" means a program 
  3.5   designed for pupils five years of age on September 1 of the 
  3.6   calendar year in which the school year commences that prepares 
  3.7   pupils to enter first grade the following school year.  A 
  3.8   program designed for pupils younger than five years of age on 
  3.9   September 1 of the calendar year in which the school year 
  3.10  commences that prepares pupils to enter kindergarten the 
  3.11  following school year is a prekindergarten program. 
  3.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.13  following final enactment. 
  3.14     Sec. 2.  [120B.124] [BASIC SKILLS INTERVENTION.] 
  3.15     Districts and charter schools must provide or contract for 
  3.16  summer school classes for all district and charter school 
  3.17  students in grades 9 through 12 who have not received a passing 
  3.18  score on a basic skills test taken by the student as required 
  3.19  for high school graduation under sections 120B.02 and 120B.30.  
  3.20  These courses must provide additional instruction in the subject 
  3.21  areas where students demonstrate a lack of comprehension of 
  3.22  specific subject matter on the basic skills tests. 
  3.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.24  following final enactment and applies to summer sessions 
  3.25  starting after June 1, 2004.  
  3.26     Sec. 3.  Minnesota Statutes 2002, section 121A.34, is 
  3.27  amended by adding a subdivision to read: 
  3.28     Subd. 5.  [BELTS AND OTHER ACCESSORIES.] Notwithstanding 
  3.29  any rule of the commissioner of public safety, vests, sashes, 
  3.30  ponchos, and Sam Browne belts worn by school safety patrol 
  3.31  members may be fluorescent yellow, fluorescent yellow-green, or 
  3.32  blaze orange. 
  3.33     Sec. 4.  Minnesota Statutes 2002, section 121A.34, is 
  3.34  amended by adding a subdivision to read: 
  3.35     Subd. 6.  [SCHOOL SAFETY PATROL FLAGS.] Notwithstanding any 
  3.36  rule of the commissioner of public safety, school safety patrol 
  4.1   flags may be (1) blaze orange with a yellow octagon bearing the 
  4.2   word "Stop" in black letters, or (2) fluorescent yellow or 
  4.3   fluorescent yellow-green with an octagon of sharply contrasting 
  4.4   color bearing the word "Stop" in black letters. 
  4.5      Sec. 5.  Minnesota Statutes 2002, section 123B.76, is 
  4.6   amended by adding a subdivision to read: 
  4.7      Subd. 3.  [EXPENDITURES BY BUILDING.] (a) For the purposes 
  4.8   of this section, "building" means education site as defined in 
  4.9   section 123B.04, subdivision 1.  
  4.10     (b) Each district shall maintain separate accounts to 
  4.11  identify general fund expenditures, excluding capital 
  4.12  expenditures and pupil transportation, for each building.  All 
  4.13  expenditures for regular instruction, secondary vocational 
  4.14  instruction, and school administration must be reported to the 
  4.15  department separately for each building.  All expenditures for 
  4.16  special education instruction, instructional support services, 
  4.17  and pupil support services provided within a specific building 
  4.18  must be reported to the department separately for each 
  4.19  building.  Salary expenditures reported by building must reflect 
  4.20  actual salaries for staff at the building and must not be based 
  4.21  on districtwide averages.  All other general fund expenditures 
  4.22  may be reported on a districtwide basis. 
  4.23     (c) The department must annually report information showing 
  4.24  school district general fund expenditures per pupil by program 
  4.25  category for each building and estimated school district general 
  4.26  fund revenue generated by pupils attending each building on its 
  4.27  Web site.  For purposes of this report: 
  4.28     (1) expenditures not required to be reported by building 
  4.29  shall be allocated among buildings on a uniform per pupil basis; 
  4.30     (2) basic skills revenue shall be allocated according to 
  4.31  section 126C.10, subdivision 4; 
  4.32     (3) secondary sparsity revenue and elementary sparsity 
  4.33  revenue shall be allocated according to section 126C.10, 
  4.34  subdivisions 7 and 8; 
  4.35     (4) other general education revenue shall be allocated on a 
  4.36  uniform per pupil unit basis; 
  5.1      (5) first grade preparedness aid shall be allocated 
  5.2   according to section 124D.081; 
  5.3      (6) state and federal special education aid and Title I aid 
  5.4   shall be allocated in proportion to district expenditures for 
  5.5   these programs by building; and 
  5.6      (7) other general fund revenues shall be allocated on a 
  5.7   uniform per pupil basis, except that the department may allocate 
  5.8   other revenues attributable to specific buildings directly to 
  5.9   those buildings. 
  5.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  5.11  following final enactment and applies to reports for fiscal year 
  5.12  2004 and later. 
  5.13     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  5.14  123B.77, subdivision 4, is amended to read: 
  5.15     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
  5.16  the board of each district must approve and adopt its revenue 
  5.17  and expenditure budgets for the next school year.  The budget 
  5.18  document so adopted must be considered an 
  5.19  expenditure-authorizing or appropriations document.  No funds 
  5.20  shall be expended by any board or district for any purpose in 
  5.21  any school year prior to the adoption of the budget document 
  5.22  which authorizes that expenditure, or prior to an amendment to 
  5.23  the budget document by the board to authorize the expenditure.  
  5.24  Expenditures of funds in violation of this subdivision shall be 
  5.25  considered unlawful expenditures.  Prior to the appropriation of 
  5.26  revenue for the next school year in the initial budget, the 
  5.27  board shall calculate the general education revenue, basic 
  5.28  skills revenue, and referendum revenue for that year that it 
  5.29  estimates will be generated by the pupils in attendance at each 
  5.30  site, and shall inform the principal or other responsible 
  5.31  administrative authority of each site of that estimate and 
  5.32  report this information to the amount of general education and 
  5.33  referendum revenue that the Department of Education estimates 
  5.34  will be generated by the pupils in attendance at each site.  For 
  5.35  purposes of this subdivision, a district may adjust the 
  5.36  department's estimates for school building openings, school 
  6.1   building closings, changes in attendance area boundaries, or 
  6.2   other changes in programs or student demographics not reflected 
  6.3   in the department's calculations.  A district must report to the 
  6.4   department any adjustments it makes according to this 
  6.5   subdivision in the department's estimates of compensatory 
  6.6   revenue generated by the pupils in attendance at each site, and 
  6.7   the department must use the adjusted compensatory revenue 
  6.8   estimates in preparing the report required under section 
  6.9   123B.76, subdivision 3, paragraph (c). 
  6.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.11  following final enactment and applies to reports for fiscal year 
  6.12  2005 and later. 
  6.13     Sec. 7.  Minnesota Statutes 2002, section 123B.82, is 
  6.14  amended to read: 
  6.15     123B.82 [REORGANIZATION OPERATING DEBT.] 
  6.16     The "reorganization operating debt" of a school district 
  6.17  means the net negative undesignated fund balance in all school 
  6.18  district funds, other than capital expenditure, building 
  6.19  construction, debt redemption, and trust and agency, calculated 
  6.20  in accordance with the uniform financial accounting and 
  6.21  reporting standards for Minnesota school districts as of: 
  6.22     (1) June 30 of the fiscal year before the first year that a 
  6.23  district receives revenue according to section 123A.39, 
  6.24  subdivision 3; or 
  6.25     (2) June 30 of the fiscal year before the effective date of 
  6.26  reorganization according to section 123A.46 or 123A.48. 
  6.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.28  following final enactment.  
  6.29     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  6.30  123B.92, subdivision 1, is amended to read: 
  6.31     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  6.32  and section 125A.76, the terms defined in this subdivision have 
  6.33  the meanings given to them. 
  6.34     (a) "Actual expenditure per pupil transported in the 
  6.35  regular and excess transportation categories" means the quotient 
  6.36  obtained by dividing: 
  7.1      (1) the sum of: 
  7.2      (i) all expenditures for transportation in the regular 
  7.3   category, as defined in paragraph (b), clause (1), and the 
  7.4   excess category, as defined in paragraph (b), clause (2), plus 
  7.5      (ii) an amount equal to one year's depreciation on the 
  7.6   district's school bus fleet and mobile units computed on a 
  7.7   straight line basis at the rate of 15 percent per year for 
  7.8   districts operating a program under section 124D.128 for grades 
  7.9   1 to 12 for all students in the district and 12-1/2 percent per 
  7.10  year for other districts of the cost of the fleet, plus 
  7.11     (iii) an amount equal to one year's depreciation on the 
  7.12  district's type three school buses, as defined in section 
  7.13  169.01, subdivision 6, clause (5), which must be used a majority 
  7.14  of the time for pupil transportation purposes, computed on a 
  7.15  straight line basis at the rate of 20 percent per year of the 
  7.16  cost of the type three school buses by: 
  7.17     (2) the number of pupils eligible for transportation in the 
  7.18  regular category, as defined in paragraph (b), clause (1), and 
  7.19  the excess category, as defined in paragraph (b), clause (2).  
  7.20     (b) "Transportation category" means a category of 
  7.21  transportation service provided to pupils as follows:  
  7.22     (1) Regular transportation is:  
  7.23     (i) transportation to and from school during the regular 
  7.24  school year for resident elementary pupils residing one mile or 
  7.25  more from the public or nonpublic school they attend, and 
  7.26  resident secondary pupils residing two miles or more from the 
  7.27  public or nonpublic school they attend, excluding desegregation 
  7.28  transportation and noon kindergarten transportation; but with 
  7.29  respect to transportation of pupils to and from nonpublic 
  7.30  schools, only to the extent permitted by sections 123B.84 to 
  7.31  123B.87; 
  7.32     (ii) transportation of resident pupils to and from language 
  7.33  immersion programs; 
  7.34     (iii) transportation of a pupil who is a custodial parent 
  7.35  and that pupil's child between the pupil's home and the child 
  7.36  care provider and between the provider and the school, if the 
  8.1   home and provider are within the attendance area of the school; 
  8.2      (iv) transportation to and from or board and lodging in 
  8.3   another district, of resident pupils of a district without a 
  8.4   secondary school; and 
  8.5      (v) transportation to and from school during the regular 
  8.6   school year required under subdivision 3 for nonresident 
  8.7   elementary pupils when the distance from the attendance area 
  8.8   border to the public school is one mile or more, and for 
  8.9   nonresident secondary pupils when the distance from the 
  8.10  attendance area border to the public school is two miles or 
  8.11  more, excluding desegregation transportation and noon 
  8.12  kindergarten transportation. 
  8.13     For the purposes of this paragraph, a district may 
  8.14  designate a licensed day care facility, respite care facility, 
  8.15  the residence of a relative, or the residence of a person chosen 
  8.16  by the pupil's parent or guardian as the home of a pupil for 
  8.17  part or all of the day, if requested by the pupil's parent or 
  8.18  guardian, and if that facility or residence is within the 
  8.19  attendance area of the school the pupil attends. 
  8.20     (2) Excess transportation is: 
  8.21     (i) transportation to and from school during the regular 
  8.22  school year for resident secondary pupils residing at least one 
  8.23  mile but less than two miles from the public or nonpublic school 
  8.24  they attend, and transportation to and from school for resident 
  8.25  pupils residing less than one mile from school who are 
  8.26  transported because of extraordinary traffic, drug, or crime 
  8.27  hazards; and 
  8.28     (ii) transportation to and from school during the regular 
  8.29  school year required under subdivision 3 for nonresident 
  8.30  secondary pupils when the distance from the attendance area 
  8.31  border to the school is at least one mile but less than two 
  8.32  miles from the public school they attend, and for nonresident 
  8.33  pupils when the distance from the attendance area border to the 
  8.34  school is less than one mile from the school and who are 
  8.35  transported because of extraordinary traffic, drug, or crime 
  8.36  hazards. 
  9.1      (3) Desegregation transportation is transportation within 
  9.2   and outside of the district during the regular school year of 
  9.3   pupils to and from schools located outside their normal 
  9.4   attendance areas under a plan for desegregation mandated by the 
  9.5   commissioner or under court order.  
  9.6      (4) "Transportation services for pupils with disabilities" 
  9.7   is: 
  9.8      (i) transportation of pupils with disabilities who cannot 
  9.9   be transported on a regular school bus between home or a respite 
  9.10  care facility and school; 
  9.11     (ii) necessary transportation of pupils with disabilities 
  9.12  from home or from school to other buildings, including centers 
  9.13  such as developmental achievement centers, hospitals, and 
  9.14  treatment centers where special instruction or services required 
  9.15  by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 
  9.16  are provided, within or outside the district where services are 
  9.17  provided; 
  9.18     (iii) necessary transportation for resident pupils with 
  9.19  disabilities required by sections 125A.12, and 125A.26 to 
  9.20  125A.48; 
  9.21     (iv) board and lodging for pupils with disabilities in a 
  9.22  district maintaining special classes; 
  9.23     (v) transportation from one educational facility to another 
  9.24  within the district for resident pupils enrolled on a 
  9.25  shared-time basis in educational programs, and necessary 
  9.26  transportation required by sections 125A.18, and 125A.26 to 
  9.27  125A.48, for resident pupils with disabilities who are provided 
  9.28  special instruction and services on a shared-time basis; 
  9.29     (vi) transportation for resident pupils with disabilities 
  9.30  to and from board and lodging facilities when the pupil is 
  9.31  boarded and lodged for educational purposes; and 
  9.32     (vii) services described in clauses (i) to (vi), when 
  9.33  provided for pupils with disabilities in conjunction with a 
  9.34  summer instructional program that relates to the pupil's 
  9.35  individual education plan or in conjunction with a learning year 
  9.36  program established under section 124D.128; 
 10.1      (viii) for purposes of computing special education base 
 10.2   revenue under section 125A.76, subdivision 2, the additional 
 10.3   cost of transporting a homeless student from a temporary 
 10.4   nonshelter home in another district to the school of origin, or 
 10.5   a formerly homeless student from a permanent home in another 
 10.6   district to the school of origin but only through the end of the 
 10.7   academic year, must be included in the disabled transportation 
 10.8   category; and 
 10.9      (ix) for purposes of computing special education base 
 10.10  revenue under section 125A.76, subdivision 2, depreciation on 
 10.11  district-owned buses purchased after July 1, 2004, and used 
 10.12  primarily for transportation of pupils with disabilities, 
 10.13  calculated according to paragraph (a), clause (1), items (ii) 
 10.14  and (iii), must be included in the disabled transportation 
 10.15  category.  Depreciation costs included in the disabled 
 10.16  transportation category must be excluded in calculating the 
 10.17  actual expenditure per pupil transported in the regular and 
 10.18  excess transportation categories according to paragraph (a). 
 10.19     (5) "Nonpublic nonregular transportation" is: 
 10.20     (i) transportation from one educational facility to another 
 10.21  within the district for resident pupils enrolled on a 
 10.22  shared-time basis in educational programs, excluding 
 10.23  transportation for nonpublic pupils with disabilities under 
 10.24  clause (4); 
 10.25     (ii) transportation within district boundaries between a 
 10.26  nonpublic school and a public school or a neutral site for 
 10.27  nonpublic school pupils who are provided pupil support services 
 10.28  pursuant to section 123B.44; and 
 10.29     (iii) late transportation home from school or between 
 10.30  schools within a district for nonpublic school pupils involved 
 10.31  in after-school activities. 
 10.32     (c) "Mobile unit" means a vehicle or trailer designed to 
 10.33  provide facilities for educational programs and services, 
 10.34  including diagnostic testing, guidance and counseling services, 
 10.35  and health services.  A mobile unit located off nonpublic school 
 10.36  premises is a neutral site as defined in section 123B.41, 
 11.1   subdivision 13. 
 11.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
 11.3   and applies for revenue for fiscal year 2005. 
 11.4      Sec. 9.  Minnesota Statutes 2002, section 123B.92, 
 11.5   subdivision 5, is amended to read: 
 11.6      Subd. 5.  [DISTRICT REPORTS.] (a) Each district must report 
 11.7   data to the department as required by the department to account 
 11.8   for transportation expenditures. 
 11.9      (b) Salaries and fringe benefits of district employees 
 11.10  whose primary duties are other than transportation, including 
 11.11  central office administrators and staff, building administrators 
 11.12  and staff, teachers, social workers, school nurses, and 
 11.13  instructional aides, must not be included in a district's 
 11.14  transportation expenditures, except that a district may include 
 11.15  salaries and benefits according to paragraph (c) for (1) an 
 11.16  employee designated as the district transportation director, (2) 
 11.17  an employee providing direct support to the transportation 
 11.18  director, or (3) an employee providing direct transportation 
 11.19  services such as a bus driver or bus aide. 
 11.20     (c) Salaries and fringe benefits of other district 
 11.21  employees who work part-time in transportation and part-time in 
 11.22  other areas must not be included in a district's transportation 
 11.23  expenditures unless the district maintains documentation of the 
 11.24  employee's time spent on pupil transportation matters in the 
 11.25  form and manner prescribed by the department. 
 11.26     (d) Pupil transportation expenditures, excluding 
 11.27  expenditures for capital outlay, leased buses, student board and 
 11.28  lodging, crossing guards, and aides on buses, must be allocated 
 11.29  among transportation categories based on a cost per mile, cost 
 11.30  per student, cost per hour, or cost per route, regardless of 
 11.31  whether the transportation services are provided on 
 11.32  district-owned or contractor-owned school buses.  Expenditures 
 11.33  for school bus driver salaries and fringe benefits may either be 
 11.34  directly charged to the appropriate transportation category or 
 11.35  may be allocated among transportation categories on a cost per 
 11.36  mile or cost per student basis.  Expenditures by private 
 12.1   contractors or individuals who provide transportation 
 12.2   exclusively in one transportation category must be charged 
 12.3   directly to the appropriate transportation category.  
 12.4   Transportation services provided by contractor-owned school bus 
 12.5   companies incorporated under different names but owned by the 
 12.6   same individual or group of individuals must be treated as the 
 12.7   same company for cost allocation purposes. 
 12.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 12.9   fiscal year 2005.  
 12.10     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 12.11  124D.454, subdivision 2, is amended to read: 
 12.12     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 12.13  the definitions in this subdivision apply. 
 12.14     (a) "Base year" means the second fiscal year preceding the 
 12.15  fiscal year for which aid will be paid. 
 12.16     (b) "Basic revenue" has the meaning given it in section 
 12.17  126C.10, subdivision 2.  For the purposes of computing basic 
 12.18  revenue pursuant to this section, each child with a disability 
 12.19  shall be counted as prescribed in section 126C.05, subdivision 1.
 12.20     (c) "Average daily membership" has the meaning given it in 
 12.21  section 126C.05. 
 12.22     (d) "Program growth factor" means 1.00 for fiscal year 1998 
 12.23  and later. 
 12.24     (e) "Aid percentage factor" means 100 percent for fiscal 
 12.25  year 2000 and later. 
 12.26     (f) "Essential personnel" means a licensed teacher, 
 12.27  licensed support services staff person, paraprofessional 
 12.28  providing direct services to students, or licensed personnel 
 12.29  under subdivision 12, paragraph (c).  This definition is not 
 12.30  intended to change or modify the definition of essential 
 12.31  employee in chapter 179A. 
 12.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 12.33  following final enactment.  
 12.34     Sec. 11.  Minnesota Statutes 2002, section 125A.51, is 
 12.35  amended to read: 
 12.36     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 13.1   EDUCATION AND TRANSPORTATION.] 
 13.2      The responsibility for providing instruction and 
 13.3   transportation for a pupil without a disability who has a 
 13.4   short-term or temporary physical or emotional illness or 
 13.5   disability, as determined by the standards of the commissioner, 
 13.6   and who is temporarily placed for care and treatment for that 
 13.7   illness or disability, must be determined as provided in this 
 13.8   section.  
 13.9      (a) The school district of residence of the pupil is the 
 13.10  district in which the pupil's parent or guardian resides. 
 13.11     (b) When parental rights have been terminated by court 
 13.12  order, the legal residence of a child placed in a residential or 
 13.13  foster facility for care and treatment is the district in which 
 13.14  the child resides. 
 13.15     (c) Before the placement of a pupil for care and treatment, 
 13.16  the district of residence must be notified and provided an 
 13.17  opportunity to participate in the placement decision.  When an 
 13.18  immediate emergency placement is necessary and time does not 
 13.19  permit resident district participation in the placement 
 13.20  decision, the district in which the pupil is temporarily placed, 
 13.21  if different from the district of residence, must notify the 
 13.22  district of residence of the emergency placement within 15 days 
 13.23  of the placement.  
 13.24     (d) When a pupil without a disability is temporarily placed 
 13.25  for care and treatment in a day program and the pupil continues 
 13.26  to live within the district of residence during the care and 
 13.27  treatment, the district of residence must provide instruction 
 13.28  and necessary transportation to and from the treatment facility 
 13.29  for the pupil.  Transportation shall only be provided by the 
 13.30  district during regular operating hours of the district.  The 
 13.31  district may provide the instruction at a school within the 
 13.32  district of residence, at the pupil's residence, or in the case 
 13.33  of a placement outside of the resident district, in the district 
 13.34  in which the day treatment program is located by paying tuition 
 13.35  to that district.  The district of placement may contract with a 
 13.36  facility to provide instruction by teachers licensed by the 
 14.1   state Board of Teaching.  
 14.2      (e) When a pupil without a disability is temporarily placed 
 14.3   in a residential program for care and treatment, the district in 
 14.4   which the pupil is placed must provide instruction for the pupil 
 14.5   and necessary transportation while the pupil is receiving 
 14.6   instruction, and in the case of a placement outside of the 
 14.7   district of residence, the nonresident district must bill the 
 14.8   district of residence for the actual cost of providing the 
 14.9   instruction for the regular school year and for summer school, 
 14.10  excluding transportation costs, unless the pupil is homeless and 
 14.11  placed in a public or private facility as defined in section 
 14.12  125A.515.  Then the district that enrolls the pupil under 
 14.13  section 127A.47, subdivision 2, shall provide the 
 14.14  transportation, unless the district that enrolls the pupil and 
 14.15  the district in which the pupil is temporarily placed agree that 
 14.16  the district in which the pupil is temporarily placed shall 
 14.17  provide transportation.  When a pupil without a disability is 
 14.18  temporarily placed in a residential program outside the district 
 14.19  of residence, the administrator of the court placing the pupil 
 14.20  must send timely written notice of the placement to the district 
 14.21  of residence.  The district of placement may contract with a 
 14.22  residential facility to provide instruction by teachers licensed 
 14.23  by the state Board of Teaching. For purposes of this section, 
 14.24  the state correctional facilities operated on a fee-for-service 
 14.25  basis are considered to be residential programs for care and 
 14.26  treatment. 
 14.27     (f) The district of residence must include the pupil in its 
 14.28  residence count of pupil units and pay tuition as provided in 
 14.29  section 123A.488 to the district providing the instruction.  
 14.30  Transportation costs must be paid by the district providing the 
 14.31  transportation and the state must pay transportation aid to that 
 14.32  district.  For purposes of computing state transportation aid, 
 14.33  pupils governed by this subdivision must be included in the 
 14.34  disabled transportation category.  
 14.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 14.36  following final enactment.  
 15.1      Sec. 12.  Minnesota Statutes 2002, section 126C.10, 
 15.2   subdivision 2, is amended to read: 
 15.3      Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 15.4   district equals the formula allowance times the adjusted 
 15.5   marginal cost pupil units for the school year.  The formula 
 15.6   allowance for fiscal year 2001 is $3,964.  The formula allowance 
 15.7   for fiscal year 2002 is $4,068.  The formula allowance for 
 15.8   fiscal year 2003 and subsequent years fiscal year 2004 is $4,601.
 15.9   The formula allowance for fiscal year 2005 and later is $4,630. 
 15.10     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 15.11  126C.10, subdivision 3, is amended to read: 
 15.12     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] (a) The 
 15.13  compensatory education revenue for each building in the district 
 15.14  equals the formula allowance minus $415 times the compensation 
 15.15  revenue pupil units computed according to section 126C.05, 
 15.16  subdivision 3.  Revenue shall be paid to the district and must 
 15.17  be allocated according to section 126C.15, subdivision 2. 
 15.18     (b) When the district contracting with an alternative 
 15.19  program under section 124D.69 changes prior to the start of a 
 15.20  school year, the compensatory revenue generated by pupils 
 15.21  attending the program shall be paid to the district contracting 
 15.22  with the alternative program for the current school year, and 
 15.23  shall not be paid to the district contracting with the 
 15.24  alternative program for the prior school year. 
 15.25     (c) When the fiscal agent district for an area learning 
 15.26  center changes prior to the start of a school year, the 
 15.27  compensatory revenue shall be paid to the fiscal agent district 
 15.28  for the current school year, and shall not be paid to the fiscal 
 15.29  agent district for the prior school year.  
 15.30     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 15.31  fiscal year 2005.  
 15.32     Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 15.33  126C.10, subdivision 31, is amended to read: 
 15.34     Subd. 31.  [TRANSITION REVENUE.] (a) A district's 
 15.35  transition allowance for fiscal years 2004 through 2008 equals 
 15.36  the greater of zero or the product of the ratio of the number of 
 16.1   adjusted marginal cost pupil units the district would have 
 16.2   counted for fiscal year 2004 under Minnesota Statutes 2002 to 
 16.3   the district's adjusted marginal cost pupil units for fiscal 
 16.4   year 2004, times the difference between:  (1) the lesser of the 
 16.5   district's general education revenue per adjusted marginal cost 
 16.6   pupil unit for fiscal year 2003 or the amount of general 
 16.7   education revenue the district would have received per adjusted 
 16.8   marginal cost pupil unit for fiscal year 2004 according to 
 16.9   Minnesota Statutes 2002, and (2) the district's general 
 16.10  education revenue for fiscal year 2004 excluding transition 
 16.11  revenue divided by the number of adjusted marginal cost pupil 
 16.12  units the district would have counted for fiscal year 2004 under 
 16.13  Minnesota Statutes 2002.  A district's transition allowance for 
 16.14  fiscal year 2009 and later is zero. 
 16.15     (b) A district's transition revenue for fiscal year 2004 
 16.16  and later equals the product of the district's transition 
 16.17  allowance times the district's adjusted marginal cost pupil 
 16.18  units. 
 16.19     (c) A district's transition revenue for fiscal year 2005 
 16.20  equals the sum of: 
 16.21     (1) the product of the district's transition allowance 
 16.22  times the district's adjusted marginal cost pupil units, plus 
 16.23     (2) the amount of referendum revenue under section 126C.17 
 16.24  and general education revenue, excluding transition revenue, for 
 16.25  fiscal year 2004 attributable to pupils four or five years of 
 16.26  age on September 1, 2003, enrolled in a prekindergarten program 
 16.27  implemented by the district before July 1, 2003, and reported as 
 16.28  kindergarten pupils under section 126C.05, subdivision 1, for 
 16.29  fiscal year 2004. 
 16.30     (d) A district's transition revenue for fiscal year 2006 
 16.31  and later equals the sum of: 
 16.32     (1) the product of the district's transition allowance 
 16.33  times the district's adjusted marginal cost pupil units, plus 
 16.34     (2) the amount of referendum revenue under section 126C.17 
 16.35  and general education revenue, excluding transition revenue, for 
 16.36  fiscal year 2004 attributable to pupils four or five years of 
 17.1   age on September 1, 2003, enrolled in a prekindergarten program 
 17.2   implemented by the district before July 1, 2003, and reported as 
 17.3   kindergarten pupils under section 126C.05, subdivision 1, for 
 17.4   fiscal year 2004, plus 
 17.5      (3) the amount of compensatory education revenue under 
 17.6   subdivision 3 for fiscal year 2005 attributable to pupils four 
 17.7   years of age on September 1, 2003, enrolled in a prekindergarten 
 17.8   program implemented by the district before July 1, 2003, and 
 17.9   reported as kindergarten pupils under section 126C.05, 
 17.10  subdivision 1, for fiscal year 2004. 
 17.11     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 17.12  fiscal year 2005. 
 17.13     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 17.14  126C.15, subdivision 1, is amended to read: 
 17.15     Subdivision 1.  [USE OF THE REVENUE.] Except for revenue 
 17.16  allocated for prekindergarten programs under subdivision 2, 
 17.17  paragraph (c), the basic skills revenue under section 126C.10, 
 17.18  subdivision 4, must be reserved and used to meet the educational 
 17.19  needs of pupils who enroll under-prepared to learn and whose 
 17.20  progress toward meeting state or local content or performance 
 17.21  standards is below the level that is appropriate for learners of 
 17.22  their age.  Any of the following may be provided to meet these 
 17.23  learners' needs: 
 17.24     (1) direct instructional services under the assurance of 
 17.25  mastery program according to section 124D.66; 
 17.26     (2) remedial instruction in reading, language arts, 
 17.27  mathematics, other content areas, or study skills to improve the 
 17.28  achievement level of these learners; 
 17.29     (3) additional teachers and teacher aides to provide more 
 17.30  individualized instruction to these learners through individual 
 17.31  tutoring, lower instructor-to-learner ratios, or team teaching; 
 17.32     (4) a longer school day or week during the regular school 
 17.33  year or through a summer program that may be offered directly by 
 17.34  the site or under a performance-based contract with a 
 17.35  community-based organization; 
 17.36     (5) comprehensive and ongoing staff development consistent 
 18.1   with district and site plans according to section 122A.60, for 
 18.2   teachers, teacher aides, principals, and other personnel to 
 18.3   improve their ability to identify the needs of these learners 
 18.4   and provide appropriate remediation, intervention, 
 18.5   accommodations, or modifications; 
 18.6      (6) instructional materials and technology appropriate for 
 18.7   meeting the individual needs of these learners; 
 18.8      (7) programs to reduce truancy, encourage completion of 
 18.9   high school, enhance self-concept, provide health services, 
 18.10  provide nutrition services, provide a safe and secure learning 
 18.11  environment, provide coordination for pupils receiving services 
 18.12  from other governmental agencies, provide psychological services 
 18.13  to determine the level of social, emotional, cognitive, and 
 18.14  intellectual development, and provide counseling services, 
 18.15  guidance services, and social work services; 
 18.16     (8) bilingual programs, bicultural programs, and programs 
 18.17  for learners of limited English proficiency; 
 18.18     (9) all day kindergarten; 
 18.19     (10) extended school day and extended school year programs; 
 18.20  and 
 18.21     (11) substantial parent involvement in developing and 
 18.22  implementing remedial education or intervention plans for a 
 18.23  learner, including learning contracts between the school, the 
 18.24  learner, and the parent that establish achievement goals and 
 18.25  responsibilities of the learner and the learner's parent or 
 18.26  guardian. 
 18.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
 18.28  for revenue for fiscal year 2005. 
 18.29     Sec. 16.  Minnesota Statutes 2002, section 126C.15, 
 18.30  subdivision 2, is amended to read: 
 18.31     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 18.32  allocate its compensatory revenue to each school building in the 
 18.33  district where the children who have generated the revenue are 
 18.34  served. 
 18.35     (b) Notwithstanding paragraph (a), a district may allocate 
 18.36  up to five percent of the amount of compensatory revenue that 
 19.1   the district received during the previous fiscal year receives 
 19.2   to school sites according to a plan adopted by the school board. 
 19.3      (c) Notwithstanding paragraph (a), a district may allocate 
 19.4   up to ten percent of the amount of compensatory revenue the 
 19.5   district receives to support prekindergarten programs under 
 19.6   subdivision 2a. 
 19.7      (d) For the purposes of this section and section 126C.05, 
 19.8   subdivision 3, "building" means education site as defined in 
 19.9   section 123B.04, subdivision 1. 
 19.10     (d) (e) If the pupil is served at a site other than one 
 19.11  owned and operated by the district, the revenue shall be paid to 
 19.12  the district and used for services for pupils who generate the 
 19.13  revenue.  
 19.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004, 
 19.15  for revenue for fiscal year 2005. 
 19.16     Sec. 17.  Minnesota Statutes 2002, section 126C.15, is 
 19.17  amended by adding a subdivision to read: 
 19.18     Subd. 2a.  [PREKINDERGARTEN PROGRAMS.] Revenue allocated 
 19.19  under subdivision 2, paragraph (c), must be reserved and used 
 19.20  for programs and activities that prepare children ages 3-1/2 to 
 19.21  kindergarten entrance for kindergarten.  Programs may serve 
 19.22  resident and nonresident children.  Districts may contract with 
 19.23  private preschools and other providers of prekindergarten 
 19.24  programs. 
 19.25     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 19.26  fiscal year 2005.  
 19.27     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 19.28  126C.17, subdivision 9, is amended to read: 
 19.29     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 19.30  by section 126C.10, subdivision 1, may be increased in the 
 19.31  amount approved by the voters of the district at a referendum 
 19.32  called for the purpose.  The referendum may be called by the 
 19.33  board or shall be called by the board upon written petition of 
 19.34  qualified voters of the district.  The referendum must be 
 19.35  conducted one or two calendar years before the increased levy 
 19.36  authority, if approved, first becomes payable.  Only one 
 20.1   election to approve an increase may be held in a calendar year.  
 20.2   Unless the referendum is conducted by mail under paragraph (g), 
 20.3   the referendum must be held on the first Tuesday after the first 
 20.4   Monday in November.  The ballot must state the maximum amount of 
 20.5   the increased revenue per resident marginal cost pupil unit, the 
 20.6   estimated referendum tax rate as a percentage of referendum 
 20.7   market value in the first year it is to be levied, and that the 
 20.8   revenue must be used to finance school operations.  The ballot 
 20.9   may state a schedule, determined by the board, of increased 
 20.10  revenue per resident marginal cost pupil unit that differs from 
 20.11  year to year over the number of years for which the increased 
 20.12  revenue is authorized.  If the ballot contains a schedule 
 20.13  showing different amounts, it must also indicate the estimated 
 20.14  referendum tax rate as a percent of referendum market value for 
 20.15  the amount specified for the first year and for the maximum 
 20.16  amount specified in the schedule.  The ballot may state that 
 20.17  existing referendum levy authority is expiring.  In this case, 
 20.18  the ballot may also compare the proposed levy authority to the 
 20.19  existing expiring levy authority, and express the proposed 
 20.20  increase as the amount, if any, over the expiring referendum 
 20.21  levy authority.  The ballot must designate the specific number 
 20.22  of years, not to exceed ten, for which the referendum 
 20.23  authorization applies.  The ballot, including a ballot on the 
 20.24  question to revoke or reduce the increased revenue amount under 
 20.25  paragraph (c), must abbreviate the term "per resident marginal 
 20.26  cost pupil unit" as "per pupil."  The notice required under 
 20.27  section 275.60 may be modified to read, in cases of renewing 
 20.28  existing levies: 
 20.29     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 20.30     FOR A PROPERTY TAX INCREASE." 
 20.31     The ballot may contain a textual portion with the 
 20.32  information required in this subdivision and a question stating 
 20.33  substantially the following:  
 20.34     "Shall the increase in the revenue proposed by (petition 
 20.35  to) the board of ........., School District No. .., be approved?"
 20.36     If approved, an amount equal to the approved revenue per 
 21.1   resident marginal cost pupil unit times the resident marginal 
 21.2   cost pupil units for the school year beginning in the year after 
 21.3   the levy is certified shall be authorized for certification for 
 21.4   the number of years approved, if applicable, or until revoked or 
 21.5   reduced by the voters of the district at a subsequent referendum.
 21.6      (b) The board must prepare and deliver by first class mail 
 21.7   at least 15 days but no more than 30 days before the day of the 
 21.8   referendum to each taxpayer a notice of the referendum and the 
 21.9   proposed revenue increase.  The board need not mail more than 
 21.10  one notice to any taxpayer.  For the purpose of giving mailed 
 21.11  notice under this subdivision, owners must be those shown to be 
 21.12  owners on the records of the county auditor or, in any county 
 21.13  where tax statements are mailed by the county treasurer, on the 
 21.14  records of the county treasurer.  Every property owner whose 
 21.15  name does not appear on the records of the county auditor or the 
 21.16  county treasurer is deemed to have waived this mailed notice 
 21.17  unless the owner has requested in writing that the county 
 21.18  auditor or county treasurer, as the case may be, include the 
 21.19  name on the records for this purpose.  The notice must project 
 21.20  the anticipated amount of tax increase in annual dollars and 
 21.21  annual percentage for typical residential homesteads, 
 21.22  agricultural homesteads, apartments, and commercial-industrial 
 21.23  property within the school district. 
 21.24     The notice for a referendum may state that an existing 
 21.25  referendum levy is expiring and project the anticipated amount 
 21.26  of increase over the existing referendum levy in the first year, 
 21.27  if any, in annual dollars and annual percentage for typical 
 21.28  residential homesteads, agricultural homesteads, apartments, and 
 21.29  commercial-industrial property within the district. 
 21.30     The notice must include the following statement:  "Passage 
 21.31  of this referendum will result in an increase in your property 
 21.32  taxes."  However, in cases of renewing existing levies, the 
 21.33  notice may include the following statement:  "Passage of this 
 21.34  referendum may result in an increase in your property taxes." 
 21.35     (c) A referendum on the question of revoking or reducing 
 21.36  the increased revenue amount authorized pursuant to paragraph 
 22.1   (a) may be called by the board and shall be called by the board 
 22.2   upon the written petition of qualified voters of the district.  
 22.3   A referendum to revoke or reduce the revenue amount must state 
 22.4   the amount per resident marginal cost pupil unit by which the 
 22.5   authority is to be reduced.  Revenue authority approved by the 
 22.6   voters of the district pursuant to paragraph (a) must be 
 22.7   available to the school district at least once before it is 
 22.8   subject to a referendum on its revocation or reduction for 
 22.9   subsequent years.  Only one revocation or reduction referendum 
 22.10  may be held to revoke or reduce referendum revenue for any 
 22.11  specific year and for years thereafter. 
 22.12     (d) A petition authorized by paragraph (a) or (c) is 
 22.13  effective if signed by a number of qualified voters in excess of 
 22.14  15 percent of the registered voters of the district on the day 
 22.15  the petition is filed with the board.  A referendum invoked by 
 22.16  petition must be held on the date specified in paragraph (a). 
 22.17     (e) The approval of 50 percent plus one of those voting on 
 22.18  the question is required to pass a referendum authorized by this 
 22.19  subdivision. 
 22.20     (f) At least 15 days before the day of the referendum, the 
 22.21  district must submit a copy of the notice required under 
 22.22  paragraph (b) to the commissioner and to the county auditor of 
 22.23  each county in which the district is located.  Within 15 days 
 22.24  after the results of the referendum have been certified by the 
 22.25  board, or in the case of a recount, the certification of the 
 22.26  results of the recount by the canvassing board, the district 
 22.27  must notify the commissioner of the results of the referendum. 
 22.28     <b>[EFFECTIVE DATE.]</b> This section is effective for referenda 
 22.29  conducted on or after July 1, 2004.  
 22.30     Sec. 19.  Minnesota Statutes 2003 Supplement, section 
 22.31  126C.43, subdivision 2, is amended to read: 
 22.32     Subd. 2.  [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 
 22.33  FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 
 22.34  levy 90 percent of the amount exceeding $10 times the district's 
 22.35  adjusted marginal cost pupil units for the fiscal year ending in 
 22.36  the year before the year the levy is certified necessary (i) to 
 23.1   pay the district's obligations under section 268.052, 
 23.2   subdivision 1, and (ii) to pay for job placement services 
 23.3   offered to employees who may become eligible for benefits 
 23.4   pursuant to section 268.085 for the fiscal year the levy is 
 23.5   certified. 
 23.6      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 23.7   payable in 2005.  
 23.8      Sec. 20.  Minnesota Statutes 2003 Supplement, section 
 23.9   126C.43, subdivision 3, is amended to read: 
 23.10     Subd. 3.  [TAX LEVY FOR JUDGMENT.] A district may levy 90 
 23.11  percent of the amount exceeding $10 times the district's 
 23.12  adjusted marginal cost pupil units for the fiscal year ending in 
 23.13  the year before the year the levy is certified necessary to pay 
 23.14  judgments against the district under section 123B.25 that became 
 23.15  final after the date the district certified its proposed levy in 
 23.16  the previous year.  With the approval of the commissioner, a 
 23.17  district may spread this levy over a period not to exceed three 
 23.18  years.  Upon approval through the adoption of a resolution by 
 23.19  each of an intermediate district's member school district 
 23.20  boards, a member school district may include its proportionate 
 23.21  share of the costs of a judgment against an intermediate school 
 23.22  district that became final under section 123B.25 after the date 
 23.23  that the earliest member school district certified its proposed 
 23.24  levy in the previous year.  With the approval of the 
 23.25  commissioner, an intermediate school district member school 
 23.26  district may spread this levy over a period not to exceed three 
 23.27  years. 
 23.28     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 23.29  payable in 2005.  
 23.30     Sec. 21.  Minnesota Statutes 2003 Supplement, section 
 23.31  126C.44, is amended to read: 
 23.32     126C.44 [SAFE SCHOOLS LEVY.] 
 23.33     (a) Each district may make a levy on all taxable property 
 23.34  located within the district for the purposes specified in this 
 23.35  section.  The maximum amount which may be levied for all costs 
 23.36  under this section shall be equal to $27 $30 multiplied by the 
 24.1   district's adjusted marginal cost pupil units for the school 
 24.2   year.  A school district that is a member of an intermediate 
 24.3   school district may include in its authority under this section 
 24.4   an additional amount equal to $2 times the district's adjusted 
 24.5   marginal cost pupil units for the school year for safe schools 
 24.6   costs of the intermediate school districts. 
 24.7      (b) The proceeds of the levy must be used for directly 
 24.8   funding the following purposes or for reimbursing the cities and 
 24.9   counties who contract with the district for the following 
 24.10  purposes:  (1) to pay the costs incurred for the salaries, 
 24.11  benefits, and transportation costs of peace officers and 
 24.12  sheriffs for liaison in services in the district's schools; (2) 
 24.13  to pay the costs for a drug abuse prevention program as defined 
 24.14  in section 609.101, subdivision 3, paragraph (e), in the 
 24.15  elementary schools; (3) to pay the costs for a gang resistance 
 24.16  education training curriculum in the district's schools; (4) to 
 24.17  pay the costs for security in the district's schools and on 
 24.18  school property; or (5) to pay the costs for other crime 
 24.19  prevention, drug abuse, student and staff safety, and violence 
 24.20  prevention measures taken by the school district.  The district 
 24.21  must initially attempt to contract for services to be provided 
 24.22  by peace officers or sheriffs with the police department of each 
 24.23  city or the sheriff's department of the county within the 
 24.24  district containing the school receiving the services.  If a 
 24.25  local police department or a county sheriff's department does 
 24.26  not wish to provide the necessary services, the district may 
 24.27  contract for these services with any other police or sheriff's 
 24.28  department located entirely or partially within the school 
 24.29  district's boundaries.  The levy authorized under this section 
 24.30  is not included in determining the school district's levy 
 24.31  limitations. 
 24.32     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 24.33  payable in 2005. 
 24.34     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
 24.35  127A.42, subdivision 2, is amended to read: 
 24.36     Subd. 2.  [VIOLATIONS OF LAW.] (a) The commissioner may 
 25.1   reduce or withhold the district's state aid for any school year 
 25.2   whenever the board of the district authorizes or permits 
 25.3   violations of law within the district by: 
 25.4      (1) employing a teacher who does not hold a valid teaching 
 25.5   license or permit in a public school; 
 25.6      (2) noncompliance with a mandatory rule of general 
 25.7   application promulgated by the commissioner in accordance with 
 25.8   statute, unless special circumstances make enforcement 
 25.9   inequitable, impose an extraordinary hardship on the district, 
 25.10  or the rule is contrary to the district's best interests; 
 25.11     (3) the district's continued performance of a contract made 
 25.12  for the rental of rooms or buildings for school purposes or for 
 25.13  the rental of any facility owned or operated by or under the 
 25.14  direction of any private organization, if the contract has been 
 25.15  disapproved, the time for review of the determination of 
 25.16  disapproval has expired, and no proceeding for review is 
 25.17  pending; 
 25.18     (4) any practice which is a violation of sections 1 and 2 
 25.19  of article 13 of the Constitution of the state of Minnesota; 
 25.20     (5) failure to reasonably provide for a resident pupil's 
 25.21  school attendance under Minnesota Statutes; 
 25.22     (6) noncompliance with state laws prohibiting 
 25.23  discrimination because of race, color, creed, religion, national 
 25.24  origin, sex, age, marital status, status with regard to public 
 25.25  assistance or disability, as defined in sections 363A.08 to 
 25.26  363A.19 and 363A.28, subdivision 10; or 
 25.27     (7) using funds contrary to the statutory purpose of the 
 25.28  funds. 
 25.29     (b) If a district does not submit audited financial data or 
 25.30  an audited financial statement according to section 123B.77, 
 25.31  subdivision 3, the commissioner may withhold the district's 
 25.32  state aid for the school year until the audited financial data 
 25.33  or an audited financial statement have been submitted to the 
 25.34  commissioner. 
 25.35     (c) The reduction or withholding must be made in the amount 
 25.36  and upon the procedure provided in this section.  
 26.1      (d) For the purposes of this section, "reduce" means a 
 26.2   permanent reduction in a district or charter school's state aid 
 26.3   for a fiscal year, and "withhold" means a temporary withholding 
 26.4   of a portion of a district or charter school's state-aid 
 26.5   payments during the period in which a violation exists.  Aids 
 26.6   withheld from a district or charter school must be paid to the 
 26.7   district or charter school within 30 days of the date the 
 26.8   violation of law has been corrected.  
 26.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 26.10  following final enactment and applies to audited financial data 
 26.11  and audited financial statements for fiscal year 2004 and later. 
 26.12     Sec. 23.  Minnesota Statutes 2002, section 127A.42, 
 26.13  subdivision 4, is amended to read: 
 26.14     Subd. 4.  [NOTICE TO BOARD.] (a) When it appears that a 
 26.15  violation is occurring in a district, the commissioner shall 
 26.16  notify the board of that district in writing.  The notice must 
 26.17  specify the violations, set a reasonable time within which the 
 26.18  district must correct the specified violations, describe the 
 26.19  correction required, and advise that if the correction is not 
 26.20  made within the time allowed, special state aids to the district 
 26.21  will be reduced or withheld.  The time allowed for correction 
 26.22  may be extended by the commissioner if there is reasonable 
 26.23  ground therefor.  
 26.24     (b) The timeline for submission of audited financial data 
 26.25  or an audited financial statement must allow the district or 
 26.26  charter school at least two months beyond the statutory due date 
 26.27  according to section 123B.77, subdivision 3, before any 
 26.28  withholding of aid will occur.  
 26.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 26.30     Sec. 24.  Minnesota Statutes 2002, section 127A.42, 
 26.31  subdivision 6, is amended to read: 
 26.32     Subd. 6.  [VIOLATION; AID REDUCTION OR WITHHOLDING.] (a) 
 26.33  The commissioner shall not reduce or withhold state aids payable 
 26.34  to the district if the violation specified is corrected within 
 26.35  the time permitted, or if the audited financial data or an 
 26.36  audited financial statement is submitted according to section 
 27.1   123B.77, subdivision 3, or if the commissioner on being notified 
 27.2   of the district board's decision to dispute decides the 
 27.3   violation does not exist, or if the commissioner decides after 
 27.4   hearing no violation specified in the commissioner's notice 
 27.5   existed at the time of the notice, or that the violations were 
 27.6   corrected within the time permitted.  Otherwise state aids 
 27.7   payable to the district for the year in which the violation 
 27.8   occurred may be reduced or withheld as follows:  The total 
 27.9   amount of state aids to which the district may be entitled shall 
 27.10  be reduced or withheld in the proportion that the period during 
 27.11  which a specified violation continued, computed from the last 
 27.12  day of the time permitted for correction, bears to the total 
 27.13  number of days school is held in the district during the year in 
 27.14  which a violation exists, multiplied by up to 60 percent of the 
 27.15  basic revenue, as defined in section 126C.10, subdivision 2, of 
 27.16  the district for that year. 
 27.17     (b) Notwithstanding paragraph (a), the commissioner must 
 27.18  not withhold more than one percent of a district's basic revenue 
 27.19  for failure to submit audited financial data or an audited 
 27.20  financial statement according to section 123B.77, subdivision 3. 
 27.21     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 27.22     Sec. 25.  Minnesota Statutes 2002, section 127A.47, 
 27.23  subdivision 3, is amended to read: 
 27.24     Subd. 3.  [REVENUE FOR CHILDREN OF DIVORCED OR LEGALLY 
 27.25  SEPARATED PARENTS OR PARENTS RESIDING SEPARATELY.] (a) In those 
 27.26  instances when the divorced or legally separated parents or 
 27.27  parents residing separately share joint physical custody of the 
 27.28  child and the divorced or legally separated parents or parents 
 27.29  residing separately reside in different school districts, for 
 27.30  all school purposes, unless otherwise specifically provided by 
 27.31  law, the child must be considered a resident of the school 
 27.32  district, as indicated by the child's parents.  
 27.33     (b) When the child of divorced or legally separated parents 
 27.34  or parents residing separately under paragraph (a) resides with 
 27.35  each parent on alternate weeks, the parents shall be responsible 
 27.36  for the transportation of the child to the border of the 
 28.1   resident school district during those weeks when the child 
 28.2   resides in the nonresident school district. 
 28.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 28.4      Sec. 26.  [127A.52] [CROSS-SUBSIDY REPORTS.] 
 28.5      (a) By January 31 each year, the commissioner must estimate 
 28.6   how much each district cross-subsidized the cost of special 
 28.7   education with general education revenue during the fiscal year 
 28.8   ending on June 30 of the previous year. 
 28.9      (b) By January 31 each year, the commissioner must estimate 
 28.10  how much each district cross-subsidized the cost of basic skills 
 28.11  programs according to section 126C.15, subdivision 1, with 
 28.12  revenue other than basic skills revenue according to section 
 28.13  126C.10, subdivision 4, during the fiscal year ending on June 30 
 28.14  of the previous year. 
 28.15     (c) The commissioner must make the cross-subsidy estimates 
 28.16  available to all districts and the public by posting the 
 28.17  cross-subsidy reports on the department's Web site.  
 28.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 28.19     Sec. 27.  Minnesota Statutes 2002, section 169.451, is 
 28.20  amended to read: 
 28.21     169.451 [INSPECTING SCHOOL AND HEAD START BUSES; RULES; 
 28.22  MISDEMEANOR.] 
 28.23     Subdivision 1.  [ANNUAL REQUIREMENT.] The Minnesota State 
 28.24  Patrol shall inspect Every school bus and every Head Start 
 28.25  bus must be inspected annually to ascertain whether its 
 28.26  construction, design, equipment, and color comply with all 
 28.27  provisions of law. 
 28.28     Subd. 1a.  [INSPECTOR CERTIFICATION; SUSPENSION AND 
 28.29  REVOCATION; HEARING.] (a) An inspection required by this section 
 28.30  may be performed only by: 
 28.31     (1) an employee of the Department of Public Safety or 
 28.32  Transportation who has been certified by the commissioner after 
 28.33  having received training provided by the State Patrol; or 
 28.34     (2) another person who has been certified by the 
 28.35  commissioner after having received training provided by the 
 28.36  State Patrol or other training approved by the commissioner. 
 29.1      (b) A person who is not an employee of the Department of 
 29.2   Public Safety or Transportation may be certified by the 
 29.3   commissioner if the person is:  
 29.4      (1) an owner, or employee of the owner, of one or more 
 29.5   school buses, Head Start buses, or both; 
 29.6      (2) a dealer licensed under section 168.27 and engaged in 
 29.7   the business of buying and selling school buses, Head Start 
 29.8   buses, or both, or an employee of the dealer; or 
 29.9      (3) engaged in the business of repairing and servicing 
 29.10  school buses, Head Start buses, or both.  
 29.11     (c) Certification of persons described in paragraph (b) is 
 29.12  effective for two years from the date of certification.  The 
 29.13  commissioner may require biennial retraining of persons holding 
 29.14  a certificate under paragraph (b) as a condition of renewal of 
 29.15  the certificate.  The commissioner may charge a fee of not more 
 29.16  than $10 for each certificate issued and renewed.  A certified 
 29.17  person described in paragraph (b) may charge a reasonable fee 
 29.18  for each inspection of a vehicle not owned by the person or the 
 29.19  person's employer. 
 29.20     (d) The commissioner may classify types of vehicles for 
 29.21  inspection purposes and may issue separate classes of inspector 
 29.22  certificates for each class.  The commissioner shall issue 
 29.23  separate categories of inspector certificates based on the 
 29.24  following classifications: 
 29.25     (1) a class of certificate that authorizes the certificate 
 29.26  holder to inspect school buses, Head Start buses, or both, 
 29.27  without regard to ownership or lease; and 
 29.28     (2) a class of certificate that authorizes the certificate 
 29.29  holder to inspect only school buses, Head Start buses, or both, 
 29.30  that the certificate holder owns or leases. 
 29.31  The commissioner shall issue a certificate described in clause 
 29.32  (1) only to a person described in paragraph (b), clause (2) or 
 29.33  (3). 
 29.34     (e) The commissioner, after notice and an opportunity for a 
 29.35  hearing, may suspend a certificate issued under paragraph (b) 
 29.36  for failure to meet annual certification requirements prescribed 
 30.1   by the commissioner or failure to inspect school buses, Head 
 30.2   Start buses, or both, in accordance with inspection procedures 
 30.3   established by the State Patrol.  The commissioner shall revoke 
 30.4   a certificate issued under paragraph (b) if the commissioner 
 30.5   determines after notice and an opportunity for a hearing that 
 30.6   the certified person issued an inspection decal for a school bus 
 30.7   or Head Start bus when the person knew or reasonably should have 
 30.8   known that the vehicle was in such a state of repair that it 
 30.9   would have been declared out of service if inspected by an 
 30.10  employee of the State Patrol.  Suspension and revocation of 
 30.11  certificates under this subdivision are not subject to sections 
 30.12  14.57 to 14.69. 
 30.13     Subd. 1b.  [INSPECTION REPORT.] (a) A person performing an 
 30.14  inspection under this section shall issue an inspection report 
 30.15  to the owner of the school bus or Head Start bus inspected.  The 
 30.16  report must include: 
 30.17     (1) the full name of the person performing the inspection 
 30.18  and the person's inspector certification number; 
 30.19     (2) the name of the owner of the vehicle; 
 30.20     (3) the vehicle identification number and, if applicable, 
 30.21  the license plate number of the vehicle; 
 30.22     (4) the date and location of the inspection; 
 30.23     (5) the vehicle components inspected and a description of 
 30.24  the findings of the inspection; and 
 30.25     (6) the inspector's certification that the inspection was 
 30.26  complete, accurate, and in compliance with the requirements of 
 30.27  this section. 
 30.28     (b) The owner must retain a copy of the inspection report 
 30.29  for at least 14 months at a location in the state where the 
 30.30  vehicle is domiciled or maintained.  The inspector must maintain 
 30.31  a copy of the inspection report for a period of 14 months 
 30.32  following the inspection in a location in the state where the 
 30.33  inspector conducts business.  During this period the report must 
 30.34  be available for inspection by an authorized federal, state, or 
 30.35  local official. 
 30.36     (c) The commissioner shall prescribe the form of the 
 31.1   inspection report and revise it as necessary to comply with 
 31.2   state and federal law and regulations.  The adoption of the 
 31.3   report form is not subject to the Administrative Procedure Act. 
 31.4      Subd. 2.  [INSPECTION CERTIFICATE.] No person shall drive, 
 31.5   or no owner shall knowingly permit or cause to be driven, any 
 31.6   school bus or Head Start bus unless there is displayed thereon a 
 31.7   certificate issued by the commissioner of public safety stating 
 31.8   that on a certain date, which shall be within 13 months of the 
 31.9   date of operation, a member of the Minnesota State Patrol 
 31.10  inspected the bus was inspected under subdivision 1a and found 
 31.11  that on the date of inspection the bus complied with the 
 31.12  applicable provisions of state law relating to construction, 
 31.13  design, equipment, and color. 
 31.14     Subd. 3.  [RULES OF COMMISSIONER.] (a) The commissioner of 
 31.15  public safety shall provide by rule for the issuance and display 
 31.16  of distinctive inspection certificates. 
 31.17     (b) The commissioner of public safety shall provide by rule 
 31.18  a point system for evaluating the effect on safety operation of 
 31.19  any variance from law detected during inspections conducted 
 31.20  pursuant to subdivision subdivisions 1, 1a, and 1b. 
 31.21     Subd. 4.  [VIOLATION; PENALTY.] The State Patrol shall 
 31.22  enforce subdivision 2.  A violation of subdivision 2 is a 
 31.23  misdemeanor. 
 31.24     Subd. 5.  [RANDOM SPOT INSPECTION.] In addition to the 
 31.25  annual inspection, The Minnesota State Patrol has authority to 
 31.26  conduct random, unannounced spot inspections of any school bus 
 31.27  or Head Start bus being operated within the state to ascertain 
 31.28  whether it is in compliance with provisions of law, including 
 31.29  the Minnesota school bus equipment standards in sections 
 31.30  169.4501 to 169.4504, subject to the procedures approved by the 
 31.31  commissioner. 
 31.32     Sec. 28.  Minnesota Statutes 2003 Supplement, section 
 31.33  275.065, subdivision 1, is amended to read: 
 31.34     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 31.35  law or charter to the contrary, on or before September 15, each 
 31.36  taxing authority, other than a school district, shall adopt a 
 32.1   proposed budget and shall certify to the county auditor the 
 32.2   proposed or, in the case of a town, the final property tax levy 
 32.3   for taxes payable in the following year. 
 32.4      (b) On or before September 30, each school district shall 
 32.5   certify to the county auditor the proposed property tax levy for 
 32.6   taxes payable in the following year.  The school district shall 
 32.7   certify the proposed levy as: 
 32.8      (1) the state determined school levy amount as prescribed 
 32.9   under section 126C.13, subdivision 2; a specific dollar amount 
 32.10  by school district fund, broken down between voter-approved and 
 32.11  non-voter-approved levies and between referendum market value 
 32.12  and tax capacity levies; or 
 32.13     (2) voter approved referendum and debt levies; and 
 32.14     (3) the sum of the remaining school levies, or the maximum 
 32.15  levy limitation certified by the commissioner of education 
 32.16  according to section 126C.48, subdivision 1, less the amounts 
 32.17  levied under clauses (1) and (2). 
 32.18     (c) If the board of estimate and taxation or any similar 
 32.19  board that establishes maximum tax levies for taxing 
 32.20  jurisdictions within a first class city certifies the maximum 
 32.21  property tax levies for funds under its jurisdiction by charter 
 32.22  to the county auditor by September 15, the city shall be deemed 
 32.23  to have certified its levies for those taxing jurisdictions. 
 32.24     (d) For purposes of this section, "taxing authority" 
 32.25  includes all home rule and statutory cities, towns, counties, 
 32.26  school districts, and special taxing districts as defined in 
 32.27  section 275.066.  Intermediate school districts that levy a tax 
 32.28  under chapter 124 or 136D, joint powers boards established under 
 32.29  sections 123A.44 to 123A.446, and Common School Districts No. 
 32.30  323, Franconia, and No. 815, Prinsburg, are also special taxing 
 32.31  districts for purposes of this section.  
 32.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 32.33     Sec. 29.  Laws 2003, First Special Session chapter 9, 
 32.34  article 1, section 53, subdivision 2, is amended to read: 
 32.35     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 32.36  aid under Minnesota Statutes, section 126C.13, subdivision 4: 
 33.1        $4,764,384,000 $4,726,466,000     .....     2004
 33.2        $5,090,303,000 $5,039,797,000
 33.3        .....     2005
 33.4      The 2004 appropriation includes $857,432,000 $860,552,000 
 33.5   for 2003 and $3,906,952,000 $3,865,914,000 for 2004. 
 33.6      The 2005 appropriation includes 
 33.7   $1,009,856,000 $1,009,822,000 for 2004 
 33.8   and $4,080,447,000 $4,029,975,000 for 2005.  
 33.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.10  following final enactment. 
 33.11     Sec. 30.  [KINDERGARTEN REPORTING.] 
 33.12     Notwithstanding Minnesota Statutes, sections 120A.05, 
 33.13  subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 
 33.14  1, pupils four or five years of age on September 1 of the 
 33.15  calendar year in which the school year commences and enrolled in 
 33.16  a prekindergarten program implemented by the district before 
 33.17  July 1, 2003, may be reported as kindergarten pupils under 
 33.18  Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 
 33.19  years 2004 and earlier. 
 33.20     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 33.21  following final enactment and applies to fiscal years 2004 and 
 33.22  earlier. 
 33.23     Sec. 31.  [TRIAL TRANSPORTATION FEE; EDEN PRAIRIE SCHOOL 
 33.24  DISTRICT.] 
 33.25     (a) Notwithstanding Minnesota Statutes, section 123B.37, 
 33.26  subdivision 1, clause (10), for fiscal years 2005, 2006, and 
 33.27  2007 only, the school board of Independent School District No. 
 33.28  272, Eden Prairie, may require payment of fees for 
 33.29  transportation to and from school of any pupil transported, and 
 33.30  for all other transportation services not required by law, 
 33.31  subject to paragraphs (b) and (c). 
 33.32     (b) If the board charges fees for transportation of pupils 
 33.33  under this section, it must establish guidelines to ensure that 
 33.34  no pupil is denied transportation solely because of inability to 
 33.35  pay.  Any transportation fees required must be applied equally 
 33.36  to public and nonpublic students transported within the district 
 34.1   and expended only for transportation services.  The board may 
 34.2   require fees for students transported to charter schools or to 
 34.3   alternative attendance programs. 
 34.4      (c) The school board's total transportation fees for any 
 34.5   school year under this section may exceed the prior year's total 
 34.6   transportation fees only for payment of increased costs in 
 34.7   student transportation services or for expanding student 
 34.8   transportation services. 
 34.9      (d) This section expires June 30, 2007. 
 34.10     Sec. 32.  [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 
 34.11  PILOT PROGRAM.] 
 34.12     Subdivision 1.  [PILOT PROGRAM CREATED.] Notwithstanding 
 34.13  Minnesota Statutes, section 126C.15, a three-year pilot program 
 34.14  is created to allow Independent School District No. 11, Anoka, 
 34.15  to allocate compensatory revenue received under Minnesota 
 34.16  Statutes, section 126C.10, subdivision 3, among its school 
 34.17  buildings according to each building's test scores and other 
 34.18  adequate yearly progress indicators for fiscal years 2005, 2006, 
 34.19  and 2007. 
 34.20     Subd. 2.  [NOTIFICATION PROCEDURE.] In order to allocate 
 34.21  compensatory revenue to its school sites based on student 
 34.22  performance, Independent School District No. 11, Anoka, must 
 34.23  submit its plan to the commissioner of education by June 1, 
 34.24  2004.  The plan must include a written resolution approved by 
 34.25  the school board that:  (1) identifies the test results and 
 34.26  other indicators that will be used to assess student 
 34.27  performance; (2) describes the method for distribution of 
 34.28  compensatory revenue to the school sites; and (3) summarizes the 
 34.29  evaluation procedure the district will use to determine if the 
 34.30  redistribution of compensatory revenue improves overall student 
 34.31  performance and other adequate yearly progress indicators. 
 34.32     Subd. 3.  [REPORT.] Independent School District No. 11, 
 34.33  Anoka, must submit a report by February 15 of each year, to the 
 34.34  education committees of the legislature and the commissioner of 
 34.35  education evaluating the effectiveness of the pilot program. 
 34.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.1   following final enactment.  
 35.2      Sec. 33.  [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 
 35.3      For taxes payable in 2005 through 2009, a school district 
 35.4   may levy an amount, not to exceed in the aggregate, $30,000 
 35.5   times the number of Carpenter school buses in its fleet that 
 35.6   have been determined to have potentially defective welds and are 
 35.7   subject to limitations imposed by the Minnesota Department of 
 35.8   Public Safety. 
 35.9      <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 35.10  payable in 2005.  
 35.11     Sec. 34.  [REPEALER.] 
 35.12     Minnesota Statutes 2002, section 126C.23, is repealed. 
 35.13                             ARTICLE 2 
 35.14                        ACADEMIC EXCELLENCE
 35.15     Section 1.  Minnesota Statutes 2002, section 13.321, 
 35.16  subdivision 1, is amended to read: 
 35.17     Subdivision 1.  [SCOPE.] The sections referred to in 
 35.18  subdivisions 2 to 9 12 are codified outside this chapter.  Those 
 35.19  sections classify prekindergarten to grade 12 educational data 
 35.20  as other than public, place restrictions on access to government 
 35.21  data, or involve data sharing. 
 35.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.23  following final enactment. 
 35.24     Sec. 2.  Minnesota Statutes 2002, section 13.321, is 
 35.25  amended by adding a subdivision to read: 
 35.26     Subd. 10.  [TEACHER DATA FROM VALUE-ADDED ASSESSMENT 
 35.27  MODEL.] Data on individual teachers generated from a value-added 
 35.28  assessment model are governed under section 120B.362. 
 35.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 35.30  following final enactment. 
 35.31     Sec. 3.  Minnesota Statutes 2002, section 13.321, is 
 35.32  amended by adding a subdivision to read: 
 35.33     Subd. 11.  [SCHOOL ACCOUNTABILITY.] Data involving school 
 35.34  performance report cards and data involving adequate yearly 
 35.35  progress determinations are governed by section 120B.36. 
 35.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 36.1   following final enactment. 
 36.2      Sec. 4.  Minnesota Statutes 2002, section 13.321, is 
 36.3   amended by adding a subdivision to read: 
 36.4      Subd. 12.  [STUDENT TRUANCY AND DRIVING.] Data on student 
 36.5   attendance and driving are governed under section 171.056. 
 36.6      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 36.7   2004. 
 36.8      Sec. 5.  [120A.23] [STUDENTS MUST ATTEND SCHOOL TO OBTAIN, 
 36.9   KEEP A DRIVER'S LICENSE OR PERMIT.] 
 36.10     (a) A board, by majority vote, may waive the requirement 
 36.11  under section 171.056 that its students must attend school to 
 36.12  obtain or keep their driver's licenses or permits.  The board 
 36.13  must formally waive the requirement by September 30 of the first 
 36.14  school year in which the waiver applies.  If a board wants to 
 36.15  rescind its waiver and require students to comply with section 
 36.16  171.056 in a subsequent school year, the board must vote to 
 36.17  rescind the waiver by September 30 of the first school year in 
 36.18  which the waiver no longer applies. 
 36.19     (b) For the purposes of this section, "board" means a 
 36.20  district school board, a board of a state-approved alternative 
 36.21  program, or a charter school board of directors. 
 36.22     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 36.23  120B.021, subdivision 1, is amended to read: 
 36.24     Subdivision 1.  [REQUIRED ACADEMIC STANDARDS.] The 
 36.25  following subject areas are required for statewide 
 36.26  accountability: 
 36.27     (1) language arts; 
 36.28     (2) mathematics; 
 36.29     (3) science; 
 36.30     (4) social studies, including history, geography, 
 36.31  economics, and government and citizenship; and 
 36.32     (5) health and physical education, for which locally 
 36.33  developed academic standards apply; and 
 36.34     (6) the arts, for which statewide or locally developed 
 36.35  academic standards apply, as determined by the school district.  
 36.36  Public elementary and middle schools must offer at least three 
 37.1   and require at least two of the following four arts areas:  
 37.2   dance; music; theater; and visual arts.  Public high schools 
 37.3   must offer at least three and require at least one of the 
 37.4   following five arts areas:  media arts; dance; music; theater; 
 37.5   and visual arts.  
 37.6      The commissioner must submit proposed standards in science 
 37.7   and social studies to the legislature by February 1, 2004.  
 37.8   For purposes of applicable federal law, the academic standards 
 37.9   for language arts, mathematics, and science apply to all public 
 37.10  school students, except the very few students with extreme 
 37.11  cognitive or physical impairments for whom an individualized 
 37.12  education plan team has determined that the required academic 
 37.13  standards are inappropriate.  An individualized education plan 
 37.14  team that makes this determination must establish alternative 
 37.15  standards. 
 37.16     A school district, no later than the 2007-2008 school year, 
 37.17  must adopt graduation requirements that meet or exceed state 
 37.18  graduation requirements established in law or rule.  A school 
 37.19  district that incorporates these state graduation requirements 
 37.20  before the 2007-2008 school year must provide students who enter 
 37.21  the 9th grade in or before the 2003-2004 school year the 
 37.22  opportunity to earn a diploma based on existing locally 
 37.23  established graduation requirements in effect when the students 
 37.24  entered the 9th grade.  District efforts to develop, implement, 
 37.25  or improve instruction or curriculum as a result of the 
 37.26  provisions of this section must be consistent with sections 
 37.27  120B.10, 120B.11, and 120B.20.  
 37.28     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 37.29  2005-2006 school year and later.  
 37.30     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
 37.31  120B.022, subdivision 1, is amended to read: 
 37.32     Subdivision 1.  [ELECTIVE STANDARDS.] A district must 
 37.33  establish its own standards in the following subject areas: 
 37.34     (1) health and physical education; 
 37.35     (2) vocational and technical education; and 
 37.36     (3) (2) world languages. 
 38.1      A school district must offer courses in all elective 
 38.2   subject areas. 
 38.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 38.4   following final enactment. 
 38.5      Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 38.6   120B.024, is amended to read: 
 38.7      120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 
 38.8      Subdivision 1.  [REQUIRED NUMBER OF COURSE CREDITS.] 
 38.9   Students beginning 9th grade in the 2004-2005 school year and 
 38.10  later must successfully complete the following high school level 
 38.11  course credits for graduation: 
 38.12     (1) four credits of language arts; 
 38.13     (2) three credits of mathematics, encompassing at least 
 38.14  algebra, geometry, statistics, and probability sufficient to 
 38.15  satisfy the grades 9, 10, and 11 academic standard standards; 
 38.16     (3) three credits of science, including at least one credit 
 38.17  in biology; 
 38.18     (4) three and one-half credits of social studies, including 
 38.19  encompassing at least one credit of United States history, one 
 38.20  credit of geography, 0.5 credits of government and citizenship, 
 38.21  0.5 credits of world history, and 0.5 credits of economics or 
 38.22  three credits of social studies encompassing at least United 
 38.23  States history, geography, government and citizenship, and world 
 38.24  history, and one-half credit of economics taught in a school's 
 38.25  social studies or business department; and 
 38.26     (5) one credit in the arts; and 
 38.27     (6) a minimum of eight seven elective course credits, 
 38.28  including at least one credit in the arts. 
 38.29     A course credit is equivalent to a student's successful 
 38.30  completion of student successfully completing an academic year 
 38.31  of study or a student's mastery of student mastering the 
 38.32  applicable subject matter, as determined by the local school 
 38.33  district. 
 38.34     Subd. 2.  [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 
 38.35  receiving a student's application approved by the student's 
 38.36  parent or guardian, and with the recommendation of the student's 
 39.1   teacher, a school district, area learning center, or charter 
 39.2   school must declare that a student has completed a content 
 39.3   standard if the local school board, the school board of the 
 39.4   school district in which the area learning center is located, or 
 39.5   charter school board of directors determines that: 
 39.6      (1) the student is participating in a course of study 
 39.7   including an advanced placement or international baccalaureate 
 39.8   course or a learning opportunity outside the curriculum of the 
 39.9   district, area learning center, or charter school that is 
 39.10  equally or more rigorous than the academic standard required by 
 39.11  the district, area learning center, charter school, or the state 
 39.12  required academic standards; and 
 39.13     (2) completing the grade-level benchmarks of the required 
 39.14  academic standards to be waived would preclude the student from 
 39.15  participating in the rigorous course of study or learning 
 39.16  opportunity. 
 39.17     (b) A student who satisfactorily completes a postsecondary 
 39.18  enrollment options course or program under section 124D.09, that 
 39.19  has been approved under paragraph (c), is not required to 
 39.20  complete other requirements of the required academic standards 
 39.21  corresponding to that specific rigorous course of study. 
 39.22     (c) By August 15, 2004, and each year thereafter, the Board 
 39.23  of Regents of the University of Minnesota, the Board of Trustees 
 39.24  of the Minnesota State Colleges and Universities, and the 
 39.25  governing boards of Minnesota private colleges shall determine 
 39.26  the courses offered at each postsecondary institution under the 
 39.27  postsecondary enrollment options program that meet the 
 39.28  requirements of paragraph (a) and shall notify the commissioner 
 39.29  of those courses offered that meet the requirements.  The 
 39.30  commissioner shall make available a listing of the postsecondary 
 39.31  enrollment options courses offered at postsecondary institutions 
 39.32  meeting the requirements of this section. 
 39.33     (d) Notwithstanding paragraph (a) or (b), a student who 
 39.34  entered ninth grade in the 2003-2004 school year or an earlier 
 39.35  school year and satisfactorily completes an advanced placement 
 39.36  or international baccalaureate course, or a postsecondary 
 40.1   enrollment options course under section 124D.09, satisfies the 
 40.2   requirements of the required academic standards corresponding to 
 40.3   that specific rigorous course of study. 
 40.4      Sec. 9.  [120B.122] [READING RECORD.] 
 40.5      A school must include a reading record in the permanent 
 40.6   academic record of each kindergarten through grade 3 student.  
 40.7   The reading record must include a detailed screening that 
 40.8   identifies at least the reading strengths and weaknesses of the 
 40.9   student and progress in phonological awareness and other early 
 40.10  reading indicators.  A school must record a student's reading 
 40.11  progress in the student's permanent academic record each year.  
 40.12  The reading record must also be included in the student's 
 40.13  permanent academic record that follows the student if the 
 40.14  student transfers to a new school or district.  The 
 40.15  commissioner, with input from school districts, must develop a 
 40.16  sample form and content of the reading record. 
 40.17     Sec. 10.  [120B.123] [STUDENT ACADEMIC PROGRESS.] 
 40.18     Subdivision 1.  [STUDENT RETENTION.] (a) A public school or 
 40.19  charter school enrolling students in any grade kindergarten 
 40.20  through grade 6 must consider retaining a student without 
 40.21  promotion to the next grade level when the student in the 
 40.22  current year: 
 40.23     (1) was enrolled in school for at least 120 days and was 
 40.24  absent more than 20 percent of the class time during those days; 
 40.25     (2) achieved below grade level test scores on highly 
 40.26  reliable statewide or districtwide assessments; and 
 40.27     (3) based on the school's determination, did not master the 
 40.28  academic skills needed to succeed in the next grade. 
 40.29  The school must provide differentiated instruction whether or 
 40.30  not the student is retained in that same grade or promoted to 
 40.31  the next grade level. 
 40.32     (b) "Differentiated instruction" means an instructional 
 40.33  framework that allows classroom teachers to blend whole-class, 
 40.34  group, and individual instruction to best meet the individual 
 40.35  and diverse needs of the students in the classroom.  A school 
 40.36  district or charter school must determine the scope of the 
 41.1   differentiated instruction. 
 41.2      Subd. 2.  [APPEAL OF DECISIONS TO RETAIN A STUDENT.] After 
 41.3   meeting with the student, the student's parent or guardian, the 
 41.4   student's teacher or teachers, and the school principal or other 
 41.5   appropriate administrator to discuss the student's proposed 
 41.6   retention under subdivision 1, the principal or other 
 41.7   administrator must provide timely written notice to the student 
 41.8   and parent or guardian of the school's decision about promoting 
 41.9   or retaining the student.  The student's parent or guardian has 
 41.10  20 days from the date of receiving the notice to submit a 
 41.11  written appeal of the decision to the school superintendent or 
 41.12  charter school director and must list the reasons for the 
 41.13  appeal.  The school superintendent or charter school director 
 41.14  must give timely written notice to the student's parent or 
 41.15  guardian of the school superintendent's or charter school 
 41.16  director's decision regarding the appeal, which is a final 
 41.17  decision. 
 41.18     Subd. 3.  [EXEMPTION.] A student with an individual 
 41.19  education plan under sections 125A.05 and 125A.06 and a pupil of 
 41.20  limited English proficiency under section 124D.59, subdivision 
 41.21  2, are exempt from this section. 
 41.22     Subd. 4.  [SCHOOL POLICY.] A school board or charter school 
 41.23  board of directors must, by August 1, 2005, adopt a student 
 41.24  retention policy and procedure that includes the requirements 
 41.25  under this section. 
 41.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 41.27  2005-2006 school year and later. 
 41.28     Sec. 11.  [120B.131] [GIFTED AND TALENTED PROGRAM 
 41.29  DEVELOPMENT AND STUDENT IDENTIFICATION.] 
 41.30     Subdivision 1.  [PURPOSE.] The legislature finds that it is 
 41.31  critical for gifted and talented students to be identified and 
 41.32  appropriately served.  
 41.33     Subd. 2.  [STUDENT IDENTIFICATION.] School districts are 
 41.34  strongly encouraged to identify and assess students for possible 
 41.35  placement in appropriate gifted and talented educational 
 41.36  services.  Consideration in student identification includes: 
 42.1      (1) a balance of multiple objective and subjective 
 42.2   criteria, which may include performances as well as test 
 42.3   results; 
 42.4      (2) an ongoing, comprehensive district assessment system 
 42.5   that guides instruction and services offered; 
 42.6      (3) use of assessment instruments and procedures that are 
 42.7   valid and reliable and based on current theory and research; 
 42.8      (4) placement decisions that are fair and consistent, 
 42.9   valid, and reliable; 
 42.10     (5) provisions for informed consent, retention, 
 42.11  reassessment, exiting, and appeals; 
 42.12     (6) an open process available to all students; and 
 42.13     (7) an identification process and collected information 
 42.14  shared with parents, educational staff, and students themselves. 
 42.15     Sec. 12.  [120B.135] [SCHOLARS OF DISTINCTION PROGRAM 
 42.16  ADMINISTRATION.] 
 42.17     (a) The commissioner shall expand the Minnesota scholars of 
 42.18  distinction program to include mathematics, science, leadership, 
 42.19  and theater arts in order to nurture and recognize distinguished 
 42.20  achievement by highly motivated students in those subjects.  The 
 42.21  commissioner shall authorize the creation of statewide 
 42.22  coordinating boards to oversee the implementation of the 
 42.23  mathematics, science, leadership, and theater arts specialty 
 42.24  areas for the program.  Each statewide coordinating board shall 
 42.25  include representatives of kindergarten through grade 12 
 42.26  schools, higher education, businesses, or others familiar with 
 42.27  applying complex knowledge and skills to real-world problems in 
 42.28  that specialty.  Each coordinating board shall manage and 
 42.29  implement the program so that as many kindergarten through grade 
 42.30  12 students as possible who are willing to commit time, rigorous 
 42.31  study, and dedication to learning the specialty have the 
 42.32  opportunity to participate.  Each coordinating board must 
 42.33  establish a statewide certification panel to determine whether 
 42.34  students have met the requirements for the particular 
 42.35  specialty.  The coordinating boards must provide assistance, if 
 42.36  requested, to schools, community organizations, and other 
 43.1   entities wishing to establish the program.  The coordinating 
 43.2   boards are required to seek permanent funding so that the 
 43.3   scholars of distinction program may be permanently continued in 
 43.4   each specialty area. 
 43.5      (b) For each specialty, student participants must be 
 43.6   required to demonstrate mastery of complex subject matter and 
 43.7   apply their knowledge and skills on challenging projects.  
 43.8   Students who earn the scholar of distinction honor shall be 
 43.9   awarded a small scholarship, the amount of which shall be 
 43.10  determined by the coordinating board for the particular 
 43.11  specialty.  A notation identifying the student as a Minnesota 
 43.12  scholar of distinction in a particular specialty must be made on 
 43.13  the transcript of each student who successfully completes the 
 43.14  program. 
 43.15     Sec. 13.  [120B.225] [CHARACTER DEVELOPMENT EDUCATION.] 
 43.16     Subdivision 1.  [CHARACTER DEVELOPMENT EDUCATION.] The 
 43.17  legislature encourages districts to integrate or offer 
 43.18  instruction on character education including, but not limited 
 43.19  to, character qualities such as attentiveness, truthfulness, 
 43.20  respect for authority, diligence, gratefulness, self-control, 
 43.21  forgiveness, generosity, orderliness, tolerance, loyalty, 
 43.22  sensitivity, patience, virtue, and resourcefulness.  Districts 
 43.23  are encouraged to use programs such as Character First and 
 43.24  Character Counts.  Instruction should be integrated into a 
 43.25  district's existing programs, curriculum, or the general school 
 43.26  environment.  The commissioner shall provide assistance at the 
 43.27  request of a district to develop character education curriculum 
 43.28  and programs. 
 43.29     Subd. 2.  [FUNDING SOURCES.] The commissioner must first 
 43.30  use federal funds for character development education programs 
 43.31  to the extent available under United States Code, title 20, 
 43.32  section 7247.  Districts may accept funds from private and other 
 43.33  public sources for character development education programs 
 43.34  developed and implemented under this section. 
 43.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 43.36  following final enactment. 
 44.1      Sec. 14.  Minnesota Statutes 2002, section 120B.23, as 
 44.2   amended by Laws 2003, chapter 150, section 12, is amended to 
 44.3   read: 
 44.4      120B.23 [VIOLENCE PREVENTION AND CHARACTER DEVELOPMENT 
 44.5   EDUCATION GRANTS.] 
 44.6      Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
 44.7   commissioner of education, after consulting with the assistant 
 44.8   commissioner of the Office of Drug Policy and Violence 
 44.9   Prevention, shall establish a violence prevention education and 
 44.10  character development education grant program to enable a school 
 44.11  district, an education district, or a group of districts that 
 44.12  cooperate for a particular purpose to develop and implement or 
 44.13  to continue a violence prevention program, character development 
 44.14  program, or both, for students in kindergarten through grade 12 
 44.15  that can be integrated into existing curriculum or the school 
 44.16  environment.  A district or group of districts that elects to 
 44.17  develop and implement or to continue a violence prevention 
 44.18  program under section 120B.22, a character development program 
 44.19  under section 120B.225, or both, is eligible to apply for a 
 44.20  grant under this section. 
 44.21     Subd. 2.  [GRANT APPLICATION.] To be eligible to receive a 
 44.22  grant, a school district, an education district, a service 
 44.23  cooperative, or a group of districts that cooperate for a 
 44.24  particular purpose must submit an application to the 
 44.25  commissioner in the form and manner and according to the 
 44.26  timeline established by the commissioner.  The application must 
 44.27  describe how the applicant will:  (1) continue or integrate into 
 44.28  its existing K-12 curriculum and on the school environment a 
 44.29  program for violence prevention that contains the program 
 44.30  components listed in section 120B.22, character development, or 
 44.31  both; (2) collaborate with local organizations involved in 
 44.32  violence prevention and intervention, character development, or 
 44.33  both; and (3) structure the program to reflect the 
 44.34  characteristics of the children, their families and the 
 44.35  community involved in the program.  The commissioner may require 
 44.36  additional information from the applicant.  When reviewing the 
 45.1   applications, the commissioner shall determine whether the 
 45.2   applicant has met the requirements of this subdivision. 
 45.3      Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
 45.4   for a violence prevention education program, character 
 45.5   development education program, or both, to eligible applicants 
 45.6   as defined in subdivision 2.  Grant amounts may not exceed $3 
 45.7   per resident pupil unit in the district or group of districts in 
 45.8   the prior school year.  Grant recipients should be 
 45.9   geographically distributed throughout the state. 
 45.10     Subd. 4.  [GRANT PROCEEDS.] A successful applicant must use 
 45.11  the grant money to develop and implement or to continue a 
 45.12  violence prevention program, character development program, or 
 45.13  both, according to the terms of the grant application. 
 45.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 45.15  following final enactment. 
 45.16     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 45.17  120B.36, is amended to read: 
 45.18     120B.36 [SCHOOL ACCOUNTABILITY; APPEALS PROCESS.] 
 45.19     Subdivision 1.  [SCHOOL PERFORMANCE REPORT CARDS.] (a) The 
 45.20  commissioner shall use objective criteria based on levels of 
 45.21  student performance to identify four to six designations 
 45.22  applicable to high and low performing public schools.  The 
 45.23  objective criteria shall include at least student academic 
 45.24  performance, school safety, and staff characteristics, with a 
 45.25  value-added growth component added by the 2006-2007 school year. 
 45.26     (b) The commissioner shall develop, annually update, and 
 45.27  post on the department Web site school performance report cards. 
 45.28  A school's designation must be clearly stated on each school 
 45.29  performance report card. 
 45.30     (c) The commissioner must make available the first school 
 45.31  designations and school performance report cards by November 
 45.32  2003, and during the beginning of each school year thereafter.  
 45.33     (d) A school or district may appeal in writing a 
 45.34  designation under this section to the commissioner within 30 
 45.35  days of receiving the designation.  The commissioner's decision 
 45.36  to uphold or deny an appeal is final.  
 46.1      (e) School performance report cards are nonpublic data 
 46.2   under section 13.02, subdivision 9, until not later than ten 
 46.3   days after the appeal procedure described in paragraph (d) 
 46.4   concludes.  The department shall annually post school 
 46.5   performance report cards to its public Web site no later than 
 46.6   September 1. 
 46.7      Subd. 2.  [ADEQUATE YEARLY PROGRESS DATA.] All data the 
 46.8   department receives, collects, or creates for purposes of 
 46.9   determining adequate yearly progress designations under Public 
 46.10  Law 107-110, section 1116, are nonpublic data under section 
 46.11  13.02, subdivision 9, until not later than ten days after the 
 46.12  appeal procedure described in subdivision 1, paragraph (d), 
 46.13  concludes.  Districts must provide parents sufficiently detailed 
 46.14  summary data to permit parents to appeal under Public Law 
 46.15  107-110, section 1116(b)(2).  The department shall annually post 
 46.16  adequate yearly progress data to its public Web site no later 
 46.17  than September 1. 
 46.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 46.19  following final enactment. 
 46.20     Sec. 16.  [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 
 46.21     (a) The commissioner of education must develop a value 
 46.22  added assessment program to assist school districts, public 
 46.23  schools, and charter schools in assessing and reporting 
 46.24  students' growth in academic achievement under section 120B.30, 
 46.25  subdivision 1a.  The program must use assessments of students' 
 46.26  academic achievement to make longitudinal comparisons of each 
 46.27  student's academic growth over time.  School districts, public 
 46.28  schools, and charter schools may apply to the commissioner to 
 46.29  participate in the program using a form and in the manner the 
 46.30  commissioner prescribes.  The commissioner must select program 
 46.31  participants from urban, suburban, and rural areas throughout 
 46.32  the state and no more than 125,000 students may participate. 
 46.33     (b) The commissioner may contract with an organization that 
 46.34  provides a value-added assessment model that reliably estimates 
 46.35  school and school district effects on students' academic 
 46.36  achievement over time for different classroom settings where a 
 47.1   single teacher teaches multiple subjects to the same group of 
 47.2   students, for team teaching arrangements, and for other teaching 
 47.3   circumstances.  The data on individual teachers generated from a 
 47.4   value-added assessment model is private data under section 
 47.5   13.02, subdivision 12.  The model the commissioner selects must 
 47.6   accommodate diverse data from various test sources and must use 
 47.7   each student's test data across grades and subjects even when 
 47.8   the data are incomplete. 
 47.9      (c) The contract under paragraph (b) must be consistent 
 47.10  with the definition of "best value" under section 16C.02, 
 47.11  subdivision 4. 
 47.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 47.13  following final enactment. 
 47.14     Sec. 17.  [121A.032] [SCHOOL BOARD POLICY OPPOSING 
 47.15  BULLYING.] 
 47.16     Each school board must adopt a written district wide policy 
 47.17  that opposes bullying.  Districts annually must notify students, 
 47.18  teachers, administrators, volunteers, contractors and other 
 47.19  school employees of this policy and, in those districts that 
 47.20  provide a student handbook, must publish the policy in the 
 47.21  student handbook. 
 47.22     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 47.23  2004-2005 school year and later. 
 47.24     Sec. 18.  Minnesota Statutes 2002, section 121A.22, 
 47.25  subdivision 2, is amended to read: 
 47.26     Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
 47.27  apply to drugs or medicine that are: 
 47.28     (1) that can be purchased without a prescription; 
 47.29     (2) that are used by a pupil who is 18 years old or older; 
 47.30     (3) that are used in connection with services for which a 
 47.31  minor may give effective consent, including section 144.343, 
 47.32  subdivision 1, and any other law; 
 47.33     (4) that are used in situations in which, in the judgment 
 47.34  of the school personnel who are present or available, the risk 
 47.35  to the pupil's life or health is of such a nature that drugs or 
 47.36  medicine should be given without delay; 
 48.1      (5) that are used off the school grounds; 
 48.2      (6) that are used in connection with athletics or extra 
 48.3   curricular activities; 
 48.4      (7) that are used in connection with activities that occur 
 48.5   before or after the regular school day; 
 48.6      (8) that are provided or administered by a public health 
 48.7   agency in order to prevent or control an illness or a disease 
 48.8   outbreak as provided for in sections 144.05 and 144.12; or 
 48.9      (9) that are prescription asthma or reactive airway disease 
 48.10  medications self-administered by a pupil with an asthma inhaler 
 48.11  if the district has received a written authorization from the 
 48.12  pupil's parent permitting the pupil to self-administer the 
 48.13  medication, the inhaler is properly labeled for that student, 
 48.14  and the parent has not requested school personnel to administer 
 48.15  the medication to the pupil.  The parent must submit written 
 48.16  authorization for the pupil to self-administer the medication 
 48.17  each school year; or 
 48.18     (10) prescription nonsyringe injectors of epinephrine, 
 48.19  consistent with section 122A.2205, if the parent and prescribing 
 48.20  medical professional annually inform the pupil's school in 
 48.21  writing that (i) the pupil may possess the epinephrine or (ii) 
 48.22  the pupil is unable to possess the epinephrine and requires 
 48.23  immediate access to nonsyringe injectors of epinephrine that the 
 48.24  parent provides properly labeled to the school for the pupil as 
 48.25  needed. 
 48.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 48.27  2004-2005 school year and later. 
 48.28     Sec. 19.  Minnesota Statutes 2002, section 121A.45, 
 48.29  subdivision 3, is amended to read: 
 48.30     Subd. 3.  [PARENT NOTIFICATION AND MEETING.] If a pupil's 
 48.31  total days of removal from school exceeds ten cumulative days in 
 48.32  a school year, the school district shall make reasonable 
 48.33  attempts to convene a meeting with the pupil and the pupil's 
 48.34  parent or guardian prior to before subsequently removing the 
 48.35  pupil from school and, with the permission of the parent or 
 48.36  guardian, suggest arrangements for a mental health screening for 
 49.1   the pupil.  The purpose of this meeting is to attempt to 
 49.2   determine the pupil's need for assessment or other services or 
 49.3   whether the parent or guardian should have the pupil screened, 
 49.4   assessed, or diagnosed to determine whether the pupil needs 
 49.5   treatment for a mental health disorder.  
 49.6      Sec. 20.  Minnesota Statutes 2002, section 121A.48, is 
 49.7   amended to read: 
 49.8      121A.48 [GOOD FAITH EXCEPTION.] 
 49.9      A violation of the technical provisions of the Pupil Fair 
 49.10  Dismissal Act or of section 121A.032, made in good faith, is not 
 49.11  a defense to a disciplinary procedure under the act or section 
 49.12  121A.032 unless the pupil can demonstrate actual prejudice as a 
 49.13  result of the violation. 
 49.14     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 49.15  2004-2005 school year and later. 
 49.16     Sec. 21.  Minnesota Statutes 2003 Supplement, section 
 49.17  121A.64, is amended to read: 
 49.18     121A.64 [NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 
 49.19  INTEREST.] 
 49.20     (a) A classroom teacher has a legitimate educational 
 49.21  interest in knowing which students placed in the teacher's 
 49.22  classroom have a history of violent behavior and must be 
 49.23  notified before such students are placed in the teacher's 
 49.24  classroom.  
 49.25     (b) Representatives of the school board and the exclusive 
 49.26  representative of the teachers shall discuss issues related to 
 49.27  the model policy on student records adopted under Laws 1999, 
 49.28  chapter 241, article 9, section 50, and any modifications 
 49.29  adopted under Laws 2003, First Special Session chapter 9, for 
 49.30  notifying classroom teachers and other school district employees 
 49.31  having a legitimate educational interest in knowing about 
 49.32  students with a history of violent behavior placed in 
 49.33  classrooms.  The representatives of the school board and the 
 49.34  exclusive representative of the teachers also may discuss the 
 49.35  need for intervention services or conflict resolution or 
 49.36  training for staff related to placing students with a history of 
 50.1   violent behavior in teachers' classrooms. 
 50.2      (c) A school district or employee of a school district is 
 50.3   immune from liability in any civil, administrative, or criminal 
 50.4   action relating to this section if a good faith effort has been 
 50.5   made to comply with the notification requirement.  A school 
 50.6   district is required to adopt a policy that implements this 
 50.7   section. 
 50.8      Sec. 22.  Minnesota Statutes 2002, section 121A.75, is 
 50.9   amended by adding a subdivision to read: 
 50.10     Subd. 4.  [IMMUNITY FROM LIABILITY.] A school district or 
 50.11  employee of a school district is immune from liability in any 
 50.12  civil, administrative, or criminal action relating to this 
 50.13  section if a good faith effort has been made to comply with the 
 50.14  notification requirements.  A school district is required to 
 50.15  adopt a policy that implements this section. 
 50.16     Sec. 23.  Minnesota Statutes 2002, section 122A.06, 
 50.17  subdivision 4, is amended to read: 
 50.18     Subd. 4.  [COMPREHENSIVE, SCIENTIFICALLY BASED READING 
 50.19  INSTRUCTION.] "Comprehensive, scientifically based reading 
 50.20  instruction" includes instruction and practice in phonemic 
 50.21  awareness, phonics and other word-recognition skills, and guided 
 50.22  oral reading for beginning readers, as well as extensive silent 
 50.23  reading, vocabulary instruction, instruction in comprehension, 
 50.24  and instruction that fosters understanding and higher-order 
 50.25  thinking for readers of all ages and proficiency 
 50.26  levels.  "Comprehensive, scientifically based reading 
 50.27  instruction" includes, at a minimum, a program or collection of 
 50.28  instructional practices with a proven record of success and with 
 50.29  reliable, trustworthy, and valid evidence to support the 
 50.30  conclusion that when these methods are used with learners, they 
 50.31  can be expected to achieve, at a minimum, satisfactory progress 
 50.32  in reading achievement.  The program or collection of practices 
 50.33  must include, at a minimum, instruction in five areas of reading:
 50.34  phonemic awareness, phonics, fluency, vocabulary, and text 
 50.35  comprehension. 
 50.36     Comprehensive, scientifically based reading instruction 
 51.1   also includes and integrates instructional strategies for 
 51.2   continuously assessing and diagnosing the learner's reading 
 51.3   progress and needs in order to design and implement ongoing 
 51.4   interventions so that learners of all ages and proficiency 
 51.5   levels can read and comprehend text as well as apply higher 
 51.6   level thinking skills. 
 51.7      Sec. 24.  Minnesota Statutes 2003 Supplement, section 
 51.8   122A.09, subdivision 4, is amended to read: 
 51.9      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 51.10  rules to license public school teachers and interns subject to 
 51.11  chapter 14. 
 51.12     (b) The board must adopt rules requiring a person to 
 51.13  successfully complete a skills examination in reading, writing, 
 51.14  and mathematics as a requirement for initial teacher licensure.  
 51.15  Such rules must require college and universities offering a 
 51.16  board-approved teacher preparation program to provide remedial 
 51.17  assistance to persons who did not achieve a qualifying score on 
 51.18  the skills examination, including those for whom English is a 
 51.19  second language. 
 51.20     (c) The board must adopt rules to approve teacher 
 51.21  preparation programs.  The board, upon the request of a 
 51.22  postsecondary student preparing for teacher licensure or a 
 51.23  licensed graduate of a teacher preparation program, shall assist 
 51.24  in resolving a dispute between the person and a postsecondary 
 51.25  institution providing a teacher preparation program when the 
 51.26  dispute involves an institution's recommendation for licensure 
 51.27  affecting the person or the person's credentials.  At the 
 51.28  board's discretion, assistance may include the application of 
 51.29  chapter 14. 
 51.30     (d) The board must provide the leadership and shall adopt 
 51.31  rules for the redesign of teacher education programs to 
 51.32  implement a research based, results-oriented curriculum that 
 51.33  focuses on the skills teachers need in order to be effective.  
 51.34  The board shall implement new systems of teacher preparation 
 51.35  program evaluation to assure program effectiveness based on 
 51.36  proficiency of graduates in demonstrating attainment of program 
 52.1   outcomes. 
 52.2      (e) The board must adopt rules requiring successful 
 52.3   completion of an examination of general pedagogical knowledge 
 52.4   and examinations of licensure-specific teaching skills.  The 
 52.5   rules shall be effective on the dates determined by the board 
 52.6   but not later than September 1, 2001.  
 52.7      (f) The board must adopt rules requiring teacher educators 
 52.8   to work directly with elementary or secondary school teachers in 
 52.9   elementary or secondary schools to obtain periodic exposure to 
 52.10  the elementary or secondary teaching environment. 
 52.11     (g) The board must grant licenses to interns and to 
 52.12  candidates for initial licenses. 
 52.13     (h) The board must design and implement an assessment 
 52.14  system which requires a candidate for an initial license and 
 52.15  first continuing license to demonstrate the abilities necessary 
 52.16  to perform selected, representative teaching tasks at 
 52.17  appropriate levels. 
 52.18     (i) The board must receive recommendations from local 
 52.19  committees as established by the board for the renewal of 
 52.20  teaching licenses. 
 52.21     (j) The board must grant life licenses to those who qualify 
 52.22  according to requirements established by the board, and suspend 
 52.23  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 52.24  board must not establish any expiration date for application for 
 52.25  life licenses.  
 52.26     (k) The board must adopt rules that require all licensed 
 52.27  teachers who are renewing their continuing license to include in 
 52.28  their renewal requirements further preparation in the areas of 
 52.29  using positive behavior interventions and in accommodating, 
 52.30  modifying, and adapting curricula, materials, and strategies to 
 52.31  appropriately meet the needs of individual students and ensure 
 52.32  adequate progress toward the state's graduation rule.  
 52.33     (l) In adopting rules to license public school teachers who 
 52.34  provide health-related services for disabled children, the board 
 52.35  shall adopt rules consistent with license or registration 
 52.36  requirements of the commissioner of health and the 
 53.1   health-related boards who license personnel who perform similar 
 53.2   services outside of the school. 
 53.3      (m) The board must adopt rules that require all licensed 
 53.4   teachers who are renewing their continuing license to include in 
 53.5   their renewal requirements further reading preparation, 
 53.6   consistent with section 122A.06, subdivision 4.  The rules do 
 53.7   not take effect until they are approved by law.  The Board of 
 53.8   Teaching may adopt rules to exempt teachers who do not provide 
 53.9   direct instruction including, at least, counselors, school 
 53.10  psychologists, school nurses, school social workers, audiovisual 
 53.11  directors and coordinators, recreation personnel, and speech 
 53.12  language pathologists. 
 53.13     (n) The board must adopt rules that require all licensed 
 53.14  teachers who are renewing their continuing license to include in 
 53.15  their renewal requirements further preparation in understanding 
 53.16  the key warning signs of early-onset mental illness in children 
 53.17  and adolescents. 
 53.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 53.19  following final enactment. 
 53.20     Sec. 25.  Minnesota Statutes 2002, section 122A.12, is 
 53.21  amended by adding a subdivision to read: 
 53.22     Subd. 2a.  [DISTRICT REIMBURSEMENT FOR COST OF SUBSTITUTE 
 53.23  TEACHER.] The board may reimburse a school district for the cost 
 53.24  of a substitute teacher employed when the regular classroom 
 53.25  teacher is providing professional assistance to the state by 
 53.26  serving on the Board of School Administrators.  
 53.27     Sec. 26.  Minnesota Statutes 2002, section 122A.16, is 
 53.28  amended to read: 
 53.29     122A.16 [HIGHLY QUALIFIED TEACHER DEFINED.] 
 53.30     (a) A highly qualified teacher is one holding holds a valid 
 53.31  license, under this chapter, to perform the particular service 
 53.32  for which the teacher is employed in a public school. 
 53.33     (b) A highly qualified teacher includes those teachers who 
 53.34  satisfy paragraph (b), (c), or (d) under this section so that 
 53.35  highly qualified teachers include: 
 53.36     (1) all elementary school teachers newly hired at the 
 54.1   beginning of the 2002-2003 school year or later to teach in a 
 54.2   Title I, Part A program who are licensed, hold at least a 
 54.3   bachelor's degree from an accredited postsecondary institution, 
 54.4   and pass a rigorous state test under section 122A.18 that 
 54.5   demonstrates subject knowledge and teaching skills in reading, 
 54.6   writing, mathematics, and other areas of the basic elementary 
 54.7   school curriculum; and 
 54.8      (2) all middle and secondary school teachers newly hired at 
 54.9   the beginning of the 2002-2003 school year or later to teach in 
 54.10  a Title I, Part A program who are licensed, hold at least a 
 54.11  bachelor's degree from an accredited postsecondary institution, 
 54.12  and demonstrate a high level of competency by (i) passing a 
 54.13  rigorous academic subject area test under section 122A.18 in 
 54.14  each core academic subject the teacher teaches, or (ii) 
 54.15  successfully completing, in each of the academic subjects in 
 54.16  which the teacher teaches, an academic major, a graduate degree, 
 54.17  course work equivalent to an academic major, or advanced 
 54.18  certification. 
 54.19     Except newly hired teachers under clauses (1) and (2), and 
 54.20  teachers in rural areas, all teachers, including elementary 
 54.21  school teachers, middle school content teachers, secondary 
 54.22  school content teachers, charter school teachers, vocational 
 54.23  education teachers, and bilingual and English as a second 
 54.24  language teachers, who provide direct instruction to students in 
 54.25  core academic subjects must satisfy the definition of a highly 
 54.26  qualified teacher under clause (1) or (2), as appropriate, by 
 54.27  the end of the 2005-2006 school year or through the High 
 54.28  Objective Uniform State Standard of Evaluation (HOUSSE) process. 
 54.29     Teachers in rural areas, including elementary school 
 54.30  teachers, middle school content teachers, secondary school 
 54.31  content teachers, charter school teachers, vocational education 
 54.32  teachers, and bilingual and English as a second language 
 54.33  teachers, who provide direct instruction to students in core 
 54.34  academic subjects must satisfy the definition of a highly 
 54.35  qualified teacher under clause (1) or (2), as appropriate, by 
 54.36  the end of the 2006-2007 school year, or through the High 
 55.1   Objective Uniform State Standard of Evaluation (HOUSSE) process. 
 55.2      Core academic subjects under this section include English, 
 55.3   reading, or language arts; mathematics; sciences; world 
 55.4   languages; civics and government; economics; history; and arts 
 55.5   including music, visual arts, theater arts, and dance. 
 55.6      (c) All Minnesota teachers holding licenses and teaching in 
 55.7   a core academic subject area in which they are licensed as 
 55.8   reported under the state's STAR system, are highly qualified.  
 55.9      (d) All Minnesota teachers teaching in a core academic 
 55.10  subject area in which they are not fully licensed are not highly 
 55.11  qualified and may complete the following HOUSSE process in the 
 55.12  core subject area for which the teacher is requesting highly 
 55.13  qualified status by completing an application, in the form and 
 55.14  manner described by the commissioner, that includes: 
 55.15     (1) documentation of student achievement that demonstrates 
 55.16  at least one year of academic growth as evidenced by 
 55.17  norm-referenced test results that are objective and 
 55.18  psychometrically valid and reliable; 
 55.19     (2) evidence of local, state, or national activities, 
 55.20  recognition, or awards for professional contribution to 
 55.21  achievement; 
 55.22     (3) description of teaching experience in the teachers' 
 55.23  core subject area in a public school under a waiver, variance, 
 55.24  limited license or other exception; nonpublic school; and 
 55.25  postsecondary institution: 
 55.26     (4) test results from the Praxis II content test; 
 55.27     (5) evidence of advanced certification from organizations, 
 55.28  such as the National Board for Professional Teaching Standards 
 55.29  (NBPTS) or the American Board for Certification of Teaching 
 55.30  Excellence (ABCTE); 
 55.31     (6) evidence of the successful completion of course work or 
 55.32  pedagogy courses; and 
 55.33     (7) evidence of the successful completion of high quality 
 55.34  professional development activities. 
 55.35     Districts must assign a school administrator to serve as a 
 55.36  HOUSSE reviewer to meet with teachers under this paragraph and, 
 56.1   where appropriate, certify the teachers' applications.  Teachers 
 56.2   satisfy the definition of highly qualified when the teachers 
 56.3   receive at least 100 of the total number of points used to 
 56.4   measure the teachers' content expertise under clauses (1) to 
 56.5   (7).  Teachers may use the HOUSSE process to satisfy the 
 56.6   definition of highly qualified for more than one subject area in 
 56.7   a single academic discipline. 
 56.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 56.9   following final enactment. 
 56.10     Sec. 27.  Minnesota Statutes 2002, section 122A.18, 
 56.11  subdivision 2a, is amended to read: 
 56.12     Subd. 2a.  [READING STRATEGIES.] (a) All colleges and 
 56.13  universities approved by the Board of Teaching to prepare 
 56.14  persons for classroom teacher licensure must include in their 
 56.15  teacher preparation programs reading best practices that enable 
 56.16  classroom teacher licensure candidates to know how to teach 
 56.17  reading, such as phonics or other research-based best practices 
 56.18  in reading, consistent with section 122A.06, subdivision 4, that 
 56.19  enable the licensure candidate to know how to teach reading in 
 56.20  the candidate's content areas. 
 56.21     (b) Board-approved teacher preparation programs for 
 56.22  teachers of elementary education must require instruction in the 
 56.23  application of comprehensive, scientifically based, and balanced 
 56.24  reading instruction programs. that: 
 56.25     (1) teach students to read using foundational knowledge, 
 56.26  practices, and strategies consistent with section 122A.06, 
 56.27  subdivision 4, so that all students will achieve continuous 
 56.28  progress in reading; and 
 56.29     (2) teach specialized instruction in reading strategies, 
 56.30  interventions, and remediations that enable students of all ages 
 56.31  and proficiency levels to become proficient readers. 
 56.32     Sec. 28.  Minnesota Statutes 2002, section 122A.18, is 
 56.33  amended by adding a subdivision to read: 
 56.34     Subd. 2c.  [LITERACY SPECIALIST LICENSURE.] No later than 
 56.35  July 1, 2005, the Board of Teaching must adopt rules providing 
 56.36  for licensing literacy specialists who possess sufficient 
 57.1   training and experience to assist teachers of reading and other 
 57.2   teachers throughout the district or at a school site to 
 57.3   effectively teach students to read.  Candidates for licensure 
 57.4   must successfully complete training in comprehensive, 
 57.5   scientifically based reading instruction consistent with section 
 57.6   122A.06, subdivision 4, and a graduate level degree in reading 
 57.7   or literacy. 
 57.8      Sec. 29.  Minnesota Statutes 2002, section 122A.20, 
 57.9   subdivision 2, is amended to read: 
 57.10     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
 57.11  to the Board of Teaching, the Board of School Administrators, or 
 57.12  the Board of Trustees of the Minnesota State Colleges and 
 57.13  Universities, whichever has jurisdiction over the teacher's or 
 57.14  administrator's license, when its teacher or administrator is 
 57.15  discharged or resigns from employment after a charge is filed 
 57.16  with the school board under section 122A.41, subdivisions 6, 
 57.17  clauses (1), (2), and (3), and 7, or after charges are filed 
 57.18  that are ground for discharge under section 122A.40, subdivision 
 57.19  13, paragraph (a), clauses (1) to (5), or when a teacher or 
 57.20  administrator is suspended or resigns while an investigation is 
 57.21  pending under section 122A.40, subdivision 13, paragraph (a) 
 57.22  clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 
 57.23  and (3), and 7; or 626.556, or when a teacher or administrator 
 57.24  is suspended without an investigation under section 122A.41, 
 57.25  subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; 
 57.26  or 626.556.  The report must be made to the appropriate 
 57.27  licensing board within ten days after the discharge, suspension, 
 57.28  or resignation has occurred.  The licensing board to which the 
 57.29  report is made must investigate the report for violation of 
 57.30  subdivision 1 and the reporting board must cooperate in the 
 57.31  investigation.  Notwithstanding any provision in chapter 13 or 
 57.32  any law to the contrary, upon written request from the licensing 
 57.33  board having jurisdiction over the license, a board or school 
 57.34  superintendent shall provide the licensing board with 
 57.35  information about the teacher or administrator from the 
 57.36  district's files, any termination or disciplinary proceeding, 
 58.1   any settlement or compromise, or any investigative file.  Upon 
 58.2   written request from the appropriate licensing board, a board or 
 58.3   school superintendent may, at the discretion of the board or 
 58.4   school superintendent, solicit the written consent of a student 
 58.5   and the student's parent to provide the licensing board with 
 58.6   information that may aid the licensing board in its 
 58.7   investigation and license proceedings.  The licensing board's 
 58.8   request need not identify a student or parent by name.  The 
 58.9   consent of the student and the student's parent must meet the 
 58.10  requirements of chapter 13 and Code of Federal Regulations, 
 58.11  title 34, section 99.30.  The licensing board may provide a 
 58.12  consent form to the district.  Any data transmitted to any board 
 58.13  under this section is private data under section 13.02, 
 58.14  subdivision 12, notwithstanding any other classification of the 
 58.15  data when it was in the possession of any other agency. 
 58.16     The licensing board to which a report is made must transmit 
 58.17  to the Attorney General's Office any record or data it receives 
 58.18  under this subdivision for the sole purpose of having the 
 58.19  Attorney General's Office assist that board in its 
 58.20  investigation.  When the Attorney General's Office has informed 
 58.21  an employee of the appropriate licensing board in writing that 
 58.22  grounds exist to suspend or revoke a teacher's license to teach, 
 58.23  that licensing board must consider suspending or revoking or 
 58.24  decline to suspend or revoke the teacher's or administrator's 
 58.25  license within 45 days of receiving a stipulation executed by 
 58.26  the teacher or administrator under investigation or a 
 58.27  recommendation from an administrative law judge that 
 58.28  disciplinary action be taken. 
 58.29     Sec. 30.  [122A.2205] [POSSESSION AND USE OF NONSYRINGE 
 58.30  INJECTORS OF EPINEPHRINE; MODEL POLICY.] 
 58.31     (a) At the start of each school year or at the time a 
 58.32  student enrolls in school, whichever is first, a student's 
 58.33  parent, school staff including those responsible for student 
 58.34  health care, and the prescribing medical professional must 
 58.35  develop and implement an individualized written health plan for 
 58.36  a student who is prescribed nonsyringe injectors of epinephrine 
 59.1   that enables the student to: 
 59.2      (1) possess nonsyringe injectors of epinephrine; or 
 59.3      (2) if the parent and prescribing medical professional 
 59.4   determine the student is unable to possess the epinephrine, have 
 59.5   immediate access to nonsyringe injectors of epinephrine in 
 59.6   school at all times during the school day. 
 59.7      The plan must designate the school staff responsible for 
 59.8   implementing the student's health plan, including recognizing 
 59.9   anaphylaxis and administering nonsyringe injectors of 
 59.10  epinephrine when required, consistent with section 121A.22, 
 59.11  subdivision 2, clause (10).  This health plan may be included in 
 59.12  a student's 504 plan. 
 59.13     (b) A school under this section is a public school under 
 59.14  section 120A.22, subdivision 4, or a nonpublic school, excluding 
 59.15  a home school, under section 120A.22, subdivision 4, that is 
 59.16  subject to the federal Americans with Disabilities Act.  Other 
 59.17  nonpublic schools are encouraged to develop and implement an 
 59.18  individualized written health plan for students requiring 
 59.19  nonsyringe injectors of epinephrine, consistent with this 
 59.20  section and section 121A.22, subdivision 2, clause (10). 
 59.21     (c) A school district and its agents and employees are 
 59.22  immune from liability for any act or failure to act, made in 
 59.23  good faith, in implementing this section. 
 59.24     (d) The education commissioner may develop and transmit to 
 59.25  interested schools a model policy and individualized health plan 
 59.26  form consistent with this section and federal 504 plan 
 59.27  requirements.  The policy and form may: 
 59.28     (1) assess a student's ability to safely possess nonsyringe 
 59.29  injectors of epinephrine; 
 59.30     (2) identify staff training needs related to recognizing 
 59.31  anaphylaxis and administering epinephrine when needed; 
 59.32     (3) accommodate a student's need to possess or have 
 59.33  immediate access to nonsyringe injectors of epinephrine in 
 59.34  school at all times during the school day; and 
 59.35     (4) ensure that the student's parent provides properly 
 59.36  labeled nonsyringe injectors of epinephrine to the school for 
 60.1   the student as needed.  
 60.2      (e) Additional nonsyringe injectors of epinephrine may be 
 60.3   made available in school first aid kits. 
 60.4      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 60.5   2004-2005 school year and later. 
 60.6      Sec. 31.  [122A.245] [TEACHER TRAINING PROGRAM FOR 
 60.7   QUALIFIED PROFESSIONALS.] 
 60.8      Subdivision 1.  [REQUIREMENTS.] (a) As an alternative to 
 60.9   postsecondary teacher preparation programs and alternative 
 60.10  preparation licensing for teachers under section 122A.24, a 
 60.11  teacher training program is established for qualified 
 60.12  professionals to acquire an entrance license.  Providers, 
 60.13  approved by the commissioner under subdivision 3, may offer the 
 60.14  program to train a maximum of 300 teachers per year in the 
 60.15  instructional fields of special education, science, math, 
 60.16  reading, English as a second language, communication arts and 
 60.17  literature, business, world languages, and library and media 
 60.18  specialist. 
 60.19     (b) To participate in the teacher training program, the 
 60.20  applicant must: 
 60.21     (1) have a bachelor's degree from an accredited four-year 
 60.22  postsecondary institution; 
 60.23     (2) have an undergraduate major or postbaccalaureate degree 
 60.24  in the subject to be taught or have equivalent academic 
 60.25  qualifications in the subject area in which the applicant is 
 60.26  seeking licensure; 
 60.27     (3) have a minimum of five years of professional employment 
 60.28  in a subject area related to the subject area in which the 
 60.29  applicant is seeking licensure; and 
 60.30     (4) pass a skills exam in reading, writing, and mathematics 
 60.31  under section 122A.18. 
 60.32     (c) Teachers currently teaching under a variance issued by 
 60.33  the Board of Teaching may apply to participate in this program.  
 60.34     Subd. 2.  [PROGRAM.] The teacher training program must 
 60.35  include: 
 60.36     (1) 200 clock hours of intensive training in classroom 
 61.1   management, curriculum, and instruction; and 
 61.2      (2) a minimum of five seminars totaling at least 20 clock 
 61.3   hours during the applicant's first year of teaching. 
 61.4      Subd. 3.  [PROGRAM APPROVAL.] The commissioner must approve 
 61.5   teacher training programs under this section based on criteria 
 61.6   developed by an advisory group appointed by the commissioner.  
 61.7   The advisory group at least must include representatives of the 
 61.8   Board of Teaching, school superintendents, and postsecondary 
 61.9   institutions, including those offering degrees in teacher 
 61.10  preparation.  
 61.11     By January 15, 2005, the commissioner must report to the 
 61.12  legislative committees with responsibility for higher education 
 61.13  on the criteria for teacher training programs developed by the 
 61.14  advisory group under this subdivision. 
 61.15     An approved teacher training program must require program 
 61.16  participants to complete the standards of effective practice for 
 61.17  teachers under Minnesota Rules, part 8710.2000. 
 61.18     Subd. 4.  [PROGRAM DELIVERY.] Postsecondary institutions 
 61.19  and district-created teacher academies, among other entities, 
 61.20  may apply to the commissioner in the form and manner the 
 61.21  commissioner indicates, to deliver a teacher training program 
 61.22  under this section to train a maximum of 300 teachers per year. 
 61.23     Subd. 5.  [ELIGIBILITY LICENSE.] An applicant who 
 61.24  successfully completes the training under subdivision 2, clause 
 61.25  (1), and passes the Praxis II content exam under section 
 61.26  122A.09, subdivision 4, paragraph (e), may receive a one-year 
 61.27  eligibility license and begin teaching.  During the one-year 
 61.28  eligibility period, the district must assign a teacher who holds 
 61.29  a regular teaching license to mentor the applicant teacher.  The 
 61.30  applicant teacher and teacher mentor must meet at least once 
 61.31  every week. 
 61.32     Subd. 6.  [STANDARD ENTRANCE LICENSE.] The Board of 
 61.33  Teaching must issue a standard entrance license to a training 
 61.34  program licensee who successfully completes the program under 
 61.35  subdivision 2, successfully teaches in a classroom for one 
 61.36  complete school year, passes the Praxis II pedagogy test, and 
 62.1   receives a positive recommendation from the applicant's school 
 62.2   principal or other district or school administrator. 
 62.3      Subd. 7.  [QUALIFIED TEACHER.] A person with a valid 
 62.4   eligibility license under subdivision 5 is a qualified teacher 
 62.5   under section 122A.16. 
 62.6      Subd. 8.  [EVALUATION AND REPORT.] The Office of the 
 62.7   Legislative Auditor must evaluate the program under this section 
 62.8   and report its findings to the education policy and finance 
 62.9   committees in the legislature by February 1, 2008, and each 
 62.10  three years thereafter on February 1. 
 62.11     Sec. 32.  Minnesota Statutes 2002, section 123B.09, 
 62.12  subdivision 8, is amended to read: 
 62.13     Subd. 8.  [DUTIES.] The board must superintend and manage 
 62.14  the schools of the district; adopt rules for their organization, 
 62.15  government, and instruction; keep registers; and prescribe 
 62.16  textbooks and courses of study.  The board may enter into an 
 62.17  agreement with a postsecondary institution for secondary or 
 62.18  postsecondary nonsectarian courses to be taught at a secondary 
 62.19  school, nonsectarian postsecondary institution, or another 
 62.20  location.  The board must not enter into an agreement that 
 62.21  limits a district superintendent's duty to assign and reassign 
 62.22  teachers or administrators to the schools in which the teachers 
 62.23  will teach or the administrators will administer except that the 
 62.24  board may reserve assignment and reassignment rights for 
 62.25  purposes of entering into a school site decision making 
 62.26  agreement under section 123B.04. 
 62.27     <b>[EFFECTIVE DATE.]</b> This section is effective for agreements 
 62.28  entered into on or after July 1, 2004. 
 62.29     Sec. 33.  Minnesota Statutes 2002, section 123B.143, 
 62.30  subdivision 1, is amended to read: 
 62.31     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
 62.32  maintaining a classified secondary school must employ a 
 62.33  superintendent who shall be an ex officio nonvoting member of 
 62.34  the school board.  The authority for selection and employment of 
 62.35  a superintendent must be vested in the board in all cases.  An 
 62.36  individual employed by a board as a superintendent shall have an 
 63.1   initial employment contract for a period of time no longer than 
 63.2   three years from the date of employment.  Any subsequent 
 63.3   employment contract must not exceed a period of three years.  A 
 63.4   board, at its discretion, may or may not renew an employment 
 63.5   contract.  A board must not, by action or inaction, extend the 
 63.6   duration of an existing employment contract.  Beginning 365 days 
 63.7   prior to the expiration date of an existing employment contract, 
 63.8   a board may negotiate and enter into a subsequent employment 
 63.9   contract to take effect upon the expiration of the existing 
 63.10  contract.  A subsequent contract must be contingent upon the 
 63.11  employee completing the terms of an existing contract.  If a 
 63.12  contract between a board and a superintendent is terminated 
 63.13  prior to the date specified in the contract, the board may not 
 63.14  enter into another superintendent contract with that same 
 63.15  individual that has a term that extends beyond the date 
 63.16  specified in the terminated contract.  A board may terminate a 
 63.17  superintendent during the term of an employment contract for any 
 63.18  of the grounds specified in section 122A.40, subdivision 9 or 13.
 63.19  A superintendent shall not rely upon an employment contract with 
 63.20  a board to assert any other continuing contract rights in the 
 63.21  position of superintendent under section 122A.40.  
 63.22  Notwithstanding the provisions of sections 122A.40, subdivision 
 63.23  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
 63.24  individual shall have a right to employment as a superintendent 
 63.25  based on order of employment in any district.  If two or more 
 63.26  districts enter into an agreement for the purchase or sharing of 
 63.27  the services of a superintendent, the contracting districts have 
 63.28  the absolute right to select one of the individuals employed to 
 63.29  serve as superintendent in one of the contracting districts and 
 63.30  no individual has a right to employment as the superintendent to 
 63.31  provide all or part of the services based on order of employment 
 63.32  in a contracting district. The superintendent of a district 
 63.33  shall perform the following:  
 63.34     (1) visit and supervise the schools in the district, report 
 63.35  and make recommendations about their condition when advisable or 
 63.36  on request by the board; 
 64.1      (2) recommend to the board employment and dismissal of 
 64.2   teachers; 
 64.3      (3) before the start of the school year, and at other times 
 64.4   as needed, assign teachers or administrators to schools to best 
 64.5   meet student and school needs as determined by the 
 64.6   superintendent; 
 64.7      (4) superintend school grading practices and examinations 
 64.8   for promotions; 
 64.9      (4) (5) make reports required by the commissioner; 
 64.10     (5) by January 10, submit an annual report to the 
 64.11  commissioner in a manner prescribed by the commissioner, in 
 64.12  consultation with school districts, identifying the expenditures 
 64.13  that the district requires to ensure an 80 percent student 
 64.14  passage rate on the basic standards test taken in the eighth 
 64.15  grade, identifying the highest student passage rate the district 
 64.16  expects it will be able to attain on the basic standards test by 
 64.17  grade 12, the amount of expenditures that the district requires 
 64.18  to attain the targeted student passage rate, and how much the 
 64.19  district is cross-subsidizing programs with special education, 
 64.20  basic skills, and general education revenue; and 
 64.21     (6) perform other duties prescribed by the board. 
 64.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 64.23  following final enactment. 
 64.24     Sec. 34.  Minnesota Statutes 2002, section 123B.195, is 
 64.25  amended to read: 
 64.26     123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
 64.27     Notwithstanding section 471.88, subdivision 5, a school 
 64.28  board member may be newly employed or may continue to be 
 64.29  employed by a school district as an employee only if there is a 
 64.30  reasonable expectation at the beginning of the fiscal year or at 
 64.31  the time the contract is entered into or extended that the 
 64.32  amount to be earned by that officer under that contract or 
 64.33  employment relationship will not exceed $5,000 $8,000 in that 
 64.34  fiscal year.  Notwithstanding section 122A.40 or 122A.41 or 
 64.35  other law, if the officer does not receive majority approval to 
 64.36  be initially employed or to continue in employment at a meeting 
 65.1   at which all board members are present, that employment is 
 65.2   immediately terminated and that officer has no further rights to 
 65.3   employment while serving as a school board member in the 
 65.4   district. 
 65.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
 65.6      Sec. 35.  Minnesota Statutes 2002, section 123B.36, 
 65.7   subdivision 1, is amended to read: 
 65.8      Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
 65.9   purposes of this subdivision, "home school" means a home school 
 65.10  as defined in sections 120A.22 and 120A.24 with five or fewer 
 65.11  students receiving instruction.  
 65.12     (b) A school board is authorized to require payment of fees 
 65.13  in the following areas: 
 65.14     (1) in any program where the resultant product, in excess 
 65.15  of minimum requirements and at the pupil's option, becomes the 
 65.16  personal property of the pupil; 
 65.17     (2) admission fees or charges for extra curricular 
 65.18  activities, where attendance is optional and where the admission 
 65.19  fees or charges a student must pay to attend or participate in 
 65.20  an extracurricular activity is the same for all students, 
 65.21  regardless of whether the student is enrolled in a public or a 
 65.22  home school; 
 65.23     (3) a security deposit for the return of materials, 
 65.24  supplies, or equipment; 
 65.25     (4) personal physical education and athletic equipment and 
 65.26  apparel, although any pupil may personally provide it if it 
 65.27  meets reasonable requirements and standards relating to health 
 65.28  and safety established by the board; 
 65.29     (5) items of personal use or products that a student has an 
 65.30  option to purchase such as student publications, class rings, 
 65.31  annuals, and graduation announcements; 
 65.32     (6) fees specifically permitted by any other statute, 
 65.33  including but not limited to section 171.05, subdivision 2; 
 65.34  provided (i) driver education fees do not exceed the actual cost 
 65.35  to the school and school district of providing driver education, 
 65.36  and (ii) the driver education courses are open to enrollment to 
 66.1   persons between the ages of 15 and 18 who reside or attend 
 66.2   school in the school district; 
 66.3      (7) field trips considered supplementary to a district 
 66.4   educational program; 
 66.5      (8) any authorized voluntary student health and accident 
 66.6   benefit plan; 
 66.7      (9) for the use of musical instruments owned or rented by 
 66.8   the district, a reasonable rental fee not to exceed either the 
 66.9   rental cost to the district or the annual depreciation plus the 
 66.10  actual annual maintenance cost for each instrument; 
 66.11     (10) transportation of pupils to and from extra curricular 
 66.12  activities conducted at locations other than school, where 
 66.13  attendance is optional, and transportation of charter school 
 66.14  students participating in extracurricular activities in their 
 66.15  resident district under section 123B.49, subdivision 4, 
 66.16  paragraph (a), which must be charged to the charter school; 
 66.17     (11) transportation to and from school of pupils living 
 66.18  within two miles from school and all other transportation 
 66.19  services not required by law.  If a district charges fees for 
 66.20  transportation of pupils, it must establish guidelines for that 
 66.21  transportation to ensure that no pupil is denied transportation 
 66.22  solely because of inability to pay; 
 66.23     (12) motorcycle classroom education courses conducted 
 66.24  outside of regular school hours; provided the charge must not 
 66.25  exceed the actual cost of these courses to the school district; 
 66.26     (13) courses, programs, and other activities directed, 
 66.27  conducted, or supervised by school staff that are unrelated to 
 66.28  high school graduation, summer school classes under section 
 66.29  120B.122, or other necessary education-related goods and 
 66.30  services and are provided at times other than during the school 
 66.31  year; 
 66.32     (14) transportation to and from postsecondary institutions 
 66.33  for pupils enrolled under the postsecondary enrollment options 
 66.34  program under section 123B.88, subdivision 22.  Fees collected 
 66.35  for this service must be reasonable and must be used to reduce 
 66.36  the cost of operating the route.  Families who qualify for 
 67.1   mileage reimbursement under section 124D.09, subdivision 22, may 
 67.2   use their state mileage reimbursement to pay this fee.  If no 
 67.3   fee is charged, districts must allocate costs based on the 
 67.4   number of pupils riding the route. 
 67.5      <b>[EFFECTIVE DATE.]</b> Paragraph (b), clause (13), is effective 
 67.6   the day following final enactment. 
 67.7      Sec. 36.  Minnesota Statutes 2002, section 123B.49, 
 67.8   subdivision 4, is amended to read: 
 67.9      Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
 67.10  (a) The board may take charge of and control all extracurricular 
 67.11  activities of the teachers and children of the public schools in 
 67.12  the district.  Extracurricular activities means all direct and 
 67.13  personal services for pupils for their enjoyment that are 
 67.14  managed and operated under the guidance of an adult or staff 
 67.15  member.  The board shall allow all resident pupils receiving 
 67.16  instruction in a home school as defined in section 123B.36, 
 67.17  subdivision 1, paragraph (a), and all resident pupils receiving 
 67.18  instruction in a charter school as defined in section 124D.10 to 
 67.19  be eligible to fully participate in extracurricular activities 
 67.20  on the same basis as public school students enrolled in the 
 67.21  district's schools.  A charter school student must give the 
 67.22  enrolling charter school at least a 30-day notice of the 
 67.23  student's intent to participate in an extracurricular activity 
 67.24  in the resident district.  A charter school student is not 
 67.25  eligible to participate in an extracurricular activity in the 
 67.26  resident district if that extracurricular activity is offered by 
 67.27  the enrolling charter school.  Charter school students 
 67.28  participating in extracurricular activities must meet the 
 67.29  academic and student conduct requirements of the resident 
 67.30  district.  The charter school must: 
 67.31     (1) collect the same information that a district collects 
 67.32  on a student's eligibility to participate in an extracurricular 
 67.33  activity; 
 67.34     (2) transmit that information to the district at least ten 
 67.35  days before a student begins to participate in the 
 67.36  extracurricular activity; and 
 68.1      (3) immediately transmit to the district any additional 
 68.2   information affecting the student's eligibility. 
 68.3      (b) Extracurricular activities have all of the following 
 68.4   characteristics: 
 68.5      (1) they are not offered for school credit nor required for 
 68.6   graduation; 
 68.7      (2) they are generally conducted outside school hours, or 
 68.8   if partly during school hours, at times agreed by the 
 68.9   participants, and approved by school authorities; 
 68.10     (3) the content of the activities is determined primarily 
 68.11  by the pupil participants under the guidance of a staff member 
 68.12  or other adult. 
 68.13     (c) If the board does not take charge of and control 
 68.14  extracurricular activities, these activities shall be 
 68.15  self-sustaining with all expenses, except direct salary costs 
 68.16  and indirect costs of the use of school facilities, met by dues, 
 68.17  admissions, or other student fund-raising events.  The general 
 68.18  fund must reflect only those salaries directly related to and 
 68.19  readily identified with the activity and paid by public funds.  
 68.20  Other revenues and expenditures for extra curricular activities 
 68.21  must be recorded according to the "Manual of Instruction for 
 68.22  Uniform Student Activities Activity Fund Accounting for 
 68.23  Minnesota School Districts and Area Vocational-Technical 
 68.24  Colleges."  Extracurricular activities not under board control 
 68.25  must have an annual financial audit and must also be audited 
 68.26  annually for compliance with this section. 
 68.27     (d) If the board takes charge of and controls 
 68.28  extracurricular activities, any or all costs of these activities 
 68.29  may be provided from school revenues and all revenues and 
 68.30  expenditures for these activities shall be recorded in the same 
 68.31  manner as other revenues and expenditures of the district.  
 68.32     (e) If the board takes charge of and controls 
 68.33  extracurricular activities, the teachers or pupils in the 
 68.34  district must not participate in such activity, nor shall the 
 68.35  school name or any allied name be used in connection therewith, 
 68.36  except by consent and direction of the board. 
 69.1      (f) School districts may charge charter schools their 
 69.2   proportional share of the direct and indirect costs of the 
 69.3   extracurricular activities that are not covered by student fees 
 69.4   under section 123B.36, subdivision 1.  A district may charge 
 69.5   charter school students the same fees it charges enrolled 
 69.6   students to participate in an extracurricular activity.  A 
 69.7   district is not required to provide transportation from the 
 69.8   charter school to the resident district to a charter school 
 69.9   student who participates in an extracurricular activity in the 
 69.10  resident district. 
 69.11     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 69.12  2004-2005 school year and later. 
 69.13     Sec. 37.  Minnesota Statutes 2003 Supplement, section 
 69.14  124D.095, subdivision 8, is amended to read: 
 69.15     Subd. 8.  [FINANCIAL ARRANGEMENTS.] (a) For a student 
 69.16  enrolled in an on-line learning course, the department must 
 69.17  calculate average daily membership and make payments according 
 69.18  to this subdivision. 
 69.19     (b) The initial on-line learning average daily membership 
 69.20  equals 1/12 for each semester course or a proportionate amount 
 69.21  for courses of different lengths.  The adjusted on-line learning 
 69.22  average daily membership equals the initial on-line learning 
 69.23  average daily membership times .88. 
 69.24     (c) No on-line learning average daily membership shall be 
 69.25  generated if:  (1) the student does not complete the on-line 
 69.26  learning course, or (2) the student is enrolled in on-line 
 69.27  learning provided by the enrolling district and the student 
 69.28  was either enrolled in a Minnesota public school for the school 
 69.29  year before the school year in which the student first enrolled 
 69.30  in on-line learning, or the student is enrolled in an 
 69.31  instructional program in which at least 40 percent of the total 
 69.32  instructional time takes place in the school's facilities.  For 
 69.33  students enrolled in on-line learning according to clause (2), 
 69.34  the department shall calculate average daily membership 
 69.35  according to section 126C.05, subdivision 8. 
 69.36     (d) On-line learning average daily membership under this 
 70.1   subdivision for a student currently enrolled in a Minnesota 
 70.2   public school and who was enrolled in a Minnesota public school 
 70.3   for the school year before the school year in which the student 
 70.4   first enrolled in on-line learning shall be used only for 
 70.5   computing average daily membership according to section 126C.05, 
 70.6   subdivision 19, paragraph (a), clause (ii) (2), and for 
 70.7   computing on-line learning aid according to section 126C.24. 
 70.8      (e) On-line learning average daily membership under this 
 70.9   subdivision for students not included in paragraph (c) or (d) 
 70.10  shall be used only for computing average daily membership 
 70.11  according to section 126C.05, subdivision 19, paragraph (a), 
 70.12  clause (ii) (2), and for computing payments under paragraphs (f) 
 70.13  and (g). 
 70.14     (f) Subject to the limitations in this subdivision, the 
 70.15  department must pay an on-line learning provider an amount equal 
 70.16  to the product of the adjusted on-line learning average daily 
 70.17  membership for students under paragraph (e) times the student 
 70.18  grade level weighting under section 126C.05, subdivision 1, 
 70.19  times the formula allowance. 
 70.20     (g) The department must pay each on-line learning provider 
 70.21  100 percent of the amount in paragraph (f) within 45 days of 
 70.22  receiving final enrollment and course completion information 
 70.23  each quarter or semester. 
 70.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 70.25  following final enactment. 
 70.26     Sec. 38.  Minnesota Statutes 2003 Supplement, section 
 70.27  124D.10, subdivision 3, is amended to read: 
 70.28     Subd. 3.  [SPONSOR.] (a) A school board; intermediate 
 70.29  school district school board; education district organized under 
 70.30  sections 123A.15 to 123A.19; charitable organization under 
 70.31  section 501(c)(3) of the Internal Revenue Code of 1986 that is a 
 70.32  member of the Minnesota Council of Nonprofits or the Minnesota 
 70.33  Council on Foundations, registered with the attorney general's 
 70.34  office, and reports an end-of-year fund balance of at least 
 70.35  $2,000,000; Minnesota private college that grants two- or 
 70.36  four-year degrees and is registered with the Higher Education 
 71.1   Services Office under chapter 136A; community college, state 
 71.2   university, or technical college, governed by the Board of 
 71.3   Trustees of the Minnesota State Colleges and Universities; the 
 71.4   Board of the Perpich Center for Arts Education under chapter 
 71.5   129C; or the University of Minnesota may sponsor one or more 
 71.6   charter schools.  
 71.7      (b) A nonprofit corporation subject to chapter 317A, 
 71.8   described in section 317A.905, and exempt from federal income 
 71.9   tax under section 501(c)(6) of the Internal Revenue Code of 
 71.10  1986, may sponsor one or more charter schools if the charter 
 71.11  school has operated for at least three years under a different 
 71.12  sponsor and if the nonprofit corporation has existed for at 
 71.13  least 25 years.  
 71.14     (c) The commissioner of education may approve up to five 
 71.15  charitable organizations under section 501(c)(3) of the Internal 
 71.16  Revenue Code of 1986 that have as their primary activity the 
 71.17  sponsoring of charter schools.  Proposals of the charitable 
 71.18  organizations to the commissioner must contain: 
 71.19     (1) the articles, bylaws, and initial board membership; 
 71.20     (2) the sources of financing for its operation; 
 71.21     (3) the areas of specialization of its sponsorship; and 
 71.22     (4) other information requested by the department. 
 71.23  Sponsors approved under this paragraph shall report annually to 
 71.24  the commissioner on the types of charter schools sponsored, 
 71.25  their effectiveness in promoting student achievement, the 
 71.26  development of alternative school governance structures, and 
 71.27  other information requested by the department.  The commissioner 
 71.28  may terminate its authorization for a charitable organization to 
 71.29  sponsor a charter school under this paragraph if the charitable 
 71.30  organization demonstrates persistent financial mismanagement or 
 71.31  repeated violations of law. 
 71.32     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
 71.33  124D.10, subdivision 4, is amended to read: 
 71.34     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 71.35  authorize one or more licensed teachers under section 122A.18, 
 71.36  subdivision 1, to operate a charter school subject to approval 
 72.1   by the commissioner.  A board must vote on charter school 
 72.2   application for sponsorship no later than 90 days after 
 72.3   receiving the application.  After 90 days, the applicant may 
 72.4   apply to the commissioner.  If a board elects not to sponsor a 
 72.5   charter school, the applicant may appeal the board's decision to 
 72.6   the commissioner.  The commissioner may elect to sponsor the 
 72.7   charter school or assist the applicant in finding an eligible 
 72.8   sponsor.  The school must be organized and operated as a 
 72.9   cooperative under chapter 308A or nonprofit corporation under 
 72.10  chapter 317A and the provisions under the applicable chapter 
 72.11  shall apply to the school except as provided in this section.  
 72.12  Notwithstanding sections 465.717 and 465.719, a school district 
 72.13  may create a corporation for the purpose of creating a charter 
 72.14  school.  
 72.15     (b) Before the operators may form and operate a school, the 
 72.16  sponsor must file an affidavit with the commissioner stating its 
 72.17  intent to authorize a charter school.  The affidavit must state 
 72.18  the terms and conditions under which the sponsor would authorize 
 72.19  a charter school.  The commissioner must approve or disapprove 
 72.20  the sponsor's proposed authorization within 60 days of receipt 
 72.21  of the affidavit.  Failure to obtain commissioner approval 
 72.22  precludes a sponsor from authorizing the charter school that was 
 72.23  the subject of the affidavit.  
 72.24     (c) The operators authorized to organize and operate a 
 72.25  school, before entering into a contract or other agreement for 
 72.26  professional or other services, goods, or facilities, must 
 72.27  incorporate as a cooperative under chapter 308A or as a 
 72.28  nonprofit corporation under chapter 317A and must establish a 
 72.29  board of directors composed of at least five members until a 
 72.30  timely election for members of the charter school board of 
 72.31  directors is held according to the school's articles and 
 72.32  bylaws.  A charter school board of directors must be composed of 
 72.33  at least five members.  Any staff members who are employed at 
 72.34  the school, including teachers providing instruction under a 
 72.35  contract with a cooperative, and all parents of children 
 72.36  enrolled in the school may participate in the election for 
 73.1   members of the school's board of directors.  Licensed teachers 
 73.2   employed at the school, including teachers providing instruction 
 73.3   under a contract with a cooperative, must may be a majority of 
 73.4   the members of the board of directors before the school 
 73.5   completes its third year of operation, unless the commissioner 
 73.6   waives the requirement for a majority of licensed teachers on 
 73.7   the board.  Board of director meetings must comply with chapter 
 73.8   13D. 
 73.9      (d) The granting or renewal of a charter by a sponsoring 
 73.10  entity must not be conditioned upon the bargaining unit status 
 73.11  of the employees of the school.  
 73.12     (e) A sponsor may authorize the operators of a charter 
 73.13  school to expand the operation of the charter school to 
 73.14  additional sites or to add additional grades at the school 
 73.15  beyond those described in the sponsor's application as approved 
 73.16  by the commissioner only after submitting a supplemental 
 73.17  application to the commissioner in a form and manner prescribed 
 73.18  by the commissioner.  The supplemental application must provide 
 73.19  evidence that: 
 73.20     (1) the expansion of the charter school is supported by 
 73.21  need and projected enrollment; 
 73.22     (2) the charter school is fiscally sound; 
 73.23     (3) the sponsor supports the expansion; and 
 73.24     (4) the building of the additional site meets all health 
 73.25  and safety requirements to be eligible for lease aid. 
 73.26     (f) The commissioner annually must provide timely financial 
 73.27  management training to newly elected members of a charter school 
 73.28  board of directors and ongoing training to other members of a 
 73.29  charter school board of directors.  Training must address ways 
 73.30  to: 
 73.31     (1) proactively assess opportunities for a charter school 
 73.32  to maximize all available revenue sources; 
 73.33     (2) establish and maintain complete, auditable records for 
 73.34  the charter school; 
 73.35     (3) establish proper filing techniques; 
 73.36     (4) document formal actions of the charter school, 
 74.1   including meetings of the charter school board of directors; 
 74.2      (5) properly manage and retain charter school and student 
 74.3   records; 
 74.4      (6) comply with state and federal payroll record-keeping 
 74.5   requirements; and 
 74.6      (7) address other similar factors that facilitate 
 74.7   establishing and maintaining complete records on the charter 
 74.8   school's operations. 
 74.9      Sec. 40.  Minnesota Statutes 2003 Supplement, section 
 74.10  124D.10, subdivision 8, is amended to read: 
 74.11     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
 74.12  school shall meet all applicable state and local health and 
 74.13  safety requirements. 
 74.14     (b) A school sponsored by a school board may be located in 
 74.15  any district, unless the school board of the district of the 
 74.16  proposed location disapproves by written resolution.  
 74.17     (c) A charter school must be nonsectarian in its programs, 
 74.18  admission policies, employment practices, and all other 
 74.19  operations.  A sponsor may not authorize a charter school or 
 74.20  program that is affiliated with a nonpublic sectarian school or 
 74.21  a religious institution. 
 74.22     (d) Charter schools must not be used as a method of 
 74.23  providing education or generating revenue for students who are 
 74.24  being home-schooled. 
 74.25     (e) The primary focus of a charter school must be to 
 74.26  provide a comprehensive program of instruction for at least one 
 74.27  grade or age group from five through 18 years of age.  
 74.28  Instruction may be provided to people younger than five years 
 74.29  and older than 18 years of age. 
 74.30     (f) A charter school may not charge tuition. 
 74.31     (g) A charter school is subject to and must comply with 
 74.32  chapter 363A and section 121A.04. 
 74.33     (h) A charter school is subject to and must comply with the 
 74.34  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
 74.35  Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 
 74.36     (i) A charter school is subject to the same financial 
 75.1   audits, audit procedures, and audit requirements as a district.  
 75.2   Audits must be conducted in compliance with generally accepted 
 75.3   governmental auditing standards, the Federal Single Audit Act, 
 75.4   if applicable, and section 6.65.  A charter school is subject to 
 75.5   and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 
 75.6   118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 
 75.7   471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 
 75.8   4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must 
 75.9   comply with the requirements of sections 123B.75 to 123B.83, 
 75.10  except to the extent deviations are necessary because of the 
 75.11  program at the school.  Deviations must be approved by the 
 75.12  commissioner.  The Department of Education, state auditor, or 
 75.13  legislative auditor may conduct financial, program, or 
 75.14  compliance audits.  A charter school determined to be in 
 75.15  statutory operating debt under sections 123B.81 to 123B.83 must 
 75.16  submit a plan under section 123B.81, subdivision 4. 
 75.17     (j) A charter school is a district for the purposes of tort 
 75.18  liability under chapter 466. 
 75.19     (k) A charter school must comply with sections 13.32; 
 75.20  120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 
 75.21  and 5.  
 75.22     (l) A charter school is subject to the Pledge of Allegiance 
 75.23  requirement under section 121A.11, subdivision 3. 
 75.24     (m) A charter school is subject to sections 123B.36, 
 75.25  subdivision 1, clause (10), and 123B.49, subdivision 4, 
 75.26  paragraph (a), when its students participate in extracurricular 
 75.27  activities in their resident district.  
 75.28     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 75.29  2004-2005 school year and later. 
 75.30     Sec. 41.  Minnesota Statutes 2003 Supplement, section 
 75.31  124D.11, subdivision 9, is amended to read: 
 75.32     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
 75.33  Notwithstanding section 127A.45, subdivision 3, aid payments for 
 75.34  the current fiscal year to a charter school not in its first 
 75.35  year of operation shall be of an equal amount on each of the 23 
 75.36  payment dates.  A charter school in its first year of operation 
 76.1   shall receive, on its first payment date, ten percent of its 
 76.2   cumulative amount guaranteed for the year and 22 payments of an 
 76.3   equal amount thereafter the sum of which shall be 90 percent of 
 76.4   the cumulative amount guaranteed. 
 76.5      (b) Notwithstanding paragraph (a), for a charter school 
 76.6   ceasing operation prior to the end of a school year, 80 percent 
 76.7   of the amount due for the school year may be paid to the school 
 76.8   after audit of prior fiscal year and current fiscal year pupil 
 76.9   counts. 
 76.10     (c) Notwithstanding section 127A.45, subdivision 3, and 
 76.11  paragraph (a), 80 percent of the start-up cost aid under 
 76.12  subdivision 8 shall be paid within 45 days after the first day 
 76.13  of student attendance for that school year. 
 76.14     (d) In order to receive state aid payments under this 
 76.15  subdivision, a charter school in its first three years of 
 76.16  operation must submit a school calendar in the form and manner 
 76.17  requested by the department and a quarterly report to the 
 76.18  Department of Education.  The report must list each student by 
 76.19  grade, show the student's start and end dates, if any, with the 
 76.20  charter school, and for any student participating in a learning 
 76.21  year program, the report must list the hours and times of 
 76.22  learning year activities.  The report must be submitted not more 
 76.23  than two weeks after the end of the calendar quarter to the 
 76.24  department.  The department must develop a Web-based reporting 
 76.25  form for charter schools to use when submitting enrollment 
 76.26  reports.  A charter school in its fourth and subsequent year of 
 76.27  operation must submit a school calendar and enrollment 
 76.28  information to the department in the form and manner requested 
 76.29  by the department. 
 76.30     Sec. 42.  Minnesota Statutes 2003 Supplement, section 
 76.31  124D.385, subdivision 2, is amended to read: 
 76.32     Subd. 2.  [MEMBERSHIP.] (a) The commission consists of 
 76.33  18 26 voting members.  Voting members shall include the 
 76.34  commissioner of education, a representative of the Children's 
 76.35  Cabinet elected by the members of the Children's Cabinet, and 
 76.36  the executive director of the Higher Education Services Office. 
 77.1      (b) The governor shall appoint 15 nine additional voting 
 77.2   members.  Eight of the voting members appointed by the governor 
 77.3   shall that include a representative of public or nonprofit 
 77.4   organizations experienced in youth employment education 
 77.5   development and training, organizations promoting adult 
 77.6   service or service learning and volunteerism, community-based 
 77.7   service agencies or organizations, local public or private 
 77.8   sector labor unions, local governments, business, a national 
 77.9   service program, and Indian tribes, and an individual between 
 77.10  the ages of 16 and 25 who is a participant or supervisor in a 
 77.11  program.  The remaining seven 16 voting members appointed by the 
 77.12  governor shall include an individual individuals with expertise 
 77.13  in the educational, training, and development needs of youth, 
 77.14  particularly disadvantaged youth; a youth or young adult who is 
 77.15  a participant in a higher education-based service-learning 
 77.16  program; a disabled individual representing persons with 
 77.17  disabilities; a youth who is out-of-school or disadvantaged; an 
 77.18  educator of primary or secondary students; an educator from a 
 77.19  higher education institution; and an individual between the ages 
 77.20  of 16 and 25 who is a participant or supervisor in a youth 
 77.21  service program management and operations of a nonprofit 
 77.22  organization, including individuals with expertise in public 
 77.23  relations, finance, and development. 
 77.24     (c) The governor shall appoint up to five ex officio 
 77.25  nonvoting members from among the following agencies or 
 77.26  organizations:  the Departments of Economic Security, Natural 
 77.27  Resources, Human Services, Health, Corrections, Agriculture, 
 77.28  Public Safety, Finance, and Labor and Industry, the Housing 
 77.29  Finance Agency, and Minnesota Technology, Inc appropriate state 
 77.30  agencies.  A representative of the Corporation for National and 
 77.31  Community Service shall also serve as an ex officio nonvoting 
 77.32  member. 
 77.33     (d) Voting and ex officio nonvoting members may appoint 
 77.34  designees to act on their behalf.  The number of voting members 
 77.35  who are state employees shall not exceed 25 percent. 
 77.36     (e) The governor shall ensure that, to the extent possible, 
 78.1   the membership of the commission is balanced according to 
 78.2   geography, race, ethnicity, age, and gender.  The speaker of the 
 78.3   house and the majority leader of the senate shall each appoint 
 78.4   two legislators to be nonvoting members of the commission. 
 78.5      Sec. 43.  Minnesota Statutes 2003 Supplement, section 
 78.6   124D.42, subdivision 6, is amended to read: 
 78.7      Subd. 6.  [PROGRAM TRAINING.] (a) The commission must, 
 78.8   within available resources, ensure an opportunity for each 
 78.9   participant to have three weeks of training in a residential 
 78.10  setting.  If offered, each training session must: 
 78.11     (1) orient each participant grantee organization in the 
 78.12  nature, philosophy, and purpose of the program; 
 78.13     (2) build an ethic of community service through general 
 78.14  community service training; and 
 78.15     (3) provide additional training as it determines necessary, 
 78.16  which may include training in evaluating early literacy skills 
 78.17  and teaching reading to preschool children through the St. Croix 
 78.18  River Education District under Laws 2001, First Special Session 
 78.19  chapter 6, article 2, section 70, to assist local Head Start 
 78.20  organizations in establishing and evaluating Head Start programs 
 78.21  for developing children's early literacy skills.  
 78.22     (b) Each grantee organization shall also train participants 
 78.23  in skills relevant to the community service opportunity. 
 78.24     Sec. 44.  Minnesota Statutes 2002, section 124D.59, as 
 78.25  amended by Laws 2003, First Special Session chapter 9, article 
 78.26  1, section 13, is amended to read: 
 78.27     124D.59 [DEFINITIONS.] 
 78.28     Subdivision 1.  [GENERALLY.] For purposes of sections 
 78.29  124D.58 to 124D.65, the terms defined in this section shall have 
 78.30  the meanings given them. 
 78.31     Subd. 1a.  [PRIMARY LANGUAGE.] "Primary language" means a 
 78.32  language other than English which is the language normally used 
 78.33  by the child or the language which is spoken in the child's home 
 78.34  environment.  A pupil's primary language as declared by a parent 
 78.35  or guardian shall be deemed to be a language other than English 
 78.36  if: 
 79.1      (1) the pupil first spoke a language other than English; 
 79.2      (2) the primary language spoken in the home of the pupil is 
 79.3   not English; or 
 79.4      (3) the language most often spoken by the pupil is not 
 79.5   English. 
 79.6      The primary language of each student, regardless of 
 79.7   proficiency status, must be determined with a home language 
 79.8   questionnaire the first time that student enrolls in the 
 79.9   district. 
 79.10     Subd. 1b.  [LANGUAGE MINORITY STUDENT.] "Language minority 
 79.11  student" means a pupil in kindergarten through grade 12 who has 
 79.12  a primary language other than English. 
 79.13     Subd. 2.  [PUPIL OF LIMITED ENGLISH PROFICIENCY LANGUAGE 
 79.14  LEARNER.] (a) "Pupil of limited English proficiency language 
 79.15  learner" means a pupil in kindergarten through grade 12 who 
 79.16  meets the following requirements: 
 79.17     (1) the pupil, as declared by a parent or guardian first 
 79.18  learned a language other than English, comes from a home where 
 79.19  the language usually spoken is other than English, or usually 
 79.20  speaks a language other than English is a language minority 
 79.21  student as defined in subdivision 1b; and 
 79.22     (2) the pupil is determined by developmentally appropriate 
 79.23  measures, which might include observations, teacher judgment, 
 79.24  parent recommendations, or developmentally appropriate 
 79.25  assessment instruments, to lack the necessary English skills to 
 79.26  participate fully in classes taught in English. 
 79.27     (b) Notwithstanding paragraph (a), a pupil in grades 4 
 79.28  through 12 who was enrolled in a Minnesota public school on the 
 79.29  dates during the previous school year when a commissioner 
 79.30  provided assessment that measures the pupil's emerging academic 
 79.31  English was administered, shall not be counted as a pupil of 
 79.32  limited an English proficiency language learner in calculating 
 79.33  limited English proficiency language learner pupil units under 
 79.34  section 126C.05, subdivision 17, and shall not generate 
 79.35  state limited English proficiency language learner aid under 
 79.36  section 124D.65, subdivision 5, unless the pupil scored below 
 80.1   the state cutoff score on an assessment measuring emerging 
 80.2   academic English provided by the commissioner during the 
 80.3   previous school year. 
 80.4      (c) Notwithstanding paragraphs (a) and (b), a pupil in 
 80.5   kindergarten through grade 12 shall not be counted as a pupil of 
 80.6   limited an English proficiency language learner in calculating 
 80.7   limited English proficiency language learner pupil units under 
 80.8   section 126C.05, subdivision 17, and shall not generate 
 80.9   state limited English proficiency language learner aid under 
 80.10  section 124D.65, subdivision 5, if: 
 80.11     (1) the pupil is not enrolled during the current fiscal 
 80.12  year in an educational program for pupils of limited English 
 80.13  proficiency language learners in accordance with sections 
 80.14  124D.58 to 124D.64; or 
 80.15     (2) the pupil has generated five or more years of average 
 80.16  daily membership in Minnesota public schools since July 1, 1996. 
 80.17     Subd. 2a.  [TRANSITIONAL LANGUAGE LEARNER.] "Transitional 
 80.18  language learner" means a pupil who meets the following 
 80.19  requirements: 
 80.20     (1) the pupil is a language minority student; 
 80.21     (2) the pupil has received scores indicating attainment of 
 80.22  English proficiency on a test of English language acquisition 
 80.23  approved by the commissioner; and 
 80.24     (3) the pupil has not scored in the proficient level on the 
 80.25  state reading assessment aligned with the state academic 
 80.26  standards three times, or for as many times as the state reading 
 80.27  assessment is given during the pupil's last three academic years 
 80.28  in a Minnesota school. 
 80.29     Subd. 2b.  [FLUENT LANGUAGE LEARNER.] "Fluent language 
 80.30  learner" means a pupil in kindergarten through grade 12 who 
 80.31  meets the following requirements: 
 80.32     (1) the pupil is a language minority student; 
 80.33     (2) the pupil has received scores indicating attainment of 
 80.34  English proficiency on a test of English language acquisition 
 80.35  approved by the commissioner; and 
 80.36     (3) the pupil has scored in the proficient level on the 
 81.1   state reading assessment aligned with the state academic 
 81.2   standards three times, or for as many times as the state reading 
 81.3   assessment is given during the pupil's last three academic years 
 81.4   in a Minnesota school. 
 81.5      Subd. 3.  [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 
 81.6   instructional personnel" means the following:  
 81.7      (1) a teacher licensed by the state Board of Teaching to 
 81.8   teach bilingual education or English as a second language; and 
 81.9      (2) a teacher with an exemption from a teaching license 
 81.10  requirement pursuant to section 124D.62 who is employed in a 
 81.11  school district's English as a second language or bilingual 
 81.12  education program;. 
 81.13     (3) any teacher as defined in section 122A.15 who holds a 
 81.14  valid license from the state Board of Teaching, if the district 
 81.15  assures the department that the teacher will obtain the 
 81.16  preservice and in-service training the department considers 
 81.17  necessary to enable the teacher to provide appropriate service 
 81.18  to pupils of limited English proficiency.  
 81.19     Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAM.] "English 
 81.20  as a second language program" means a program for the 
 81.21  instruction of pupils of limited English proficiency language 
 81.22  learners in the following English language skills:  reading, 
 81.23  writing, listening and speaking.  
 81.24     Subd. 5.  [BILINGUAL EDUCATION PROGRAM.] "Bilingual 
 81.25  education program" means an educational program in which 
 81.26  instruction is given in both English and the primary language of 
 81.27  the pupil of limited English proficiency language learner to the 
 81.28  extent necessary to allow the pupil to progress effectively 
 81.29  through the educational system and to attain the basic skills of 
 81.30  reading, writing, listening, and speaking in the English 
 81.31  language so that the pupil will be able to perform ordinary 
 81.32  classwork successfully in English.  
 81.33     Subd. 6.  [PRIMARY LANGUAGE.] "Primary language" means a 
 81.34  language other than English which is the language normally used 
 81.35  by the child or the language which is spoken in the child's home 
 81.36  environment.  
 82.1      Subd. 7.  [PARENT.] "Parent" includes a child's legal 
 82.2   guardian.  
 82.3      Subd. 8.  [EDUCATIONAL PROGRAM FOR PUPILS OF LIMITED 
 82.4   ENGLISH PROFICIENCY LANGUAGE LEARNERS.] "Educational program for 
 82.5   pupils of limited English proficiency language learners" means 
 82.6   an English as a second language program, bilingual education 
 82.7   program, or both an English as a second language and a bilingual 
 82.8   education program. 
 82.9      Sec. 45.  Minnesota Statutes 2002, section 124D.61, is 
 82.10  amended to read: 
 82.11     124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
 82.12     (a) A district which receives aid pursuant to section 
 82.13  124D.65 that enrolls one or more English language learners must 
 82.14  comply with the following program requirements: under paragraphs 
 82.15  (b) and (c). 
 82.16     (b) A district must implement an educational program for 
 82.17  English language learners if one or more English language 
 82.18  learners are enrolled in the district. 
 82.19     (c) An educational program for English language learners 
 82.20  must meet the following requirements: 
 82.21     (1) entrance and exit criteria must be documented by the 
 82.22  district, applied uniformly to English language learners, and 
 82.23  made available to parents and other stakeholders upon request; 
 82.24     (2) the curriculum of the educational program for English 
 82.25  language learners must be coordinated with the mainstream 
 82.26  curriculum in which the English language learners are involved 
 82.27  and must be consistent with standards set forth by the 
 82.28  commissioner; 
 82.29     (3) the amount of service offered English language learners 
 82.30  through an educational program specifically for English language 
 82.31  learners must be designed to meet varying student needs across 
 82.32  English proficiency levels; 
 82.33     (1) (4) to the extent possible, the district must avoid 
 82.34  isolating children of limited English proficiency English 
 82.35  language learners for a substantial part of the school day; and 
 82.36     (2) (5) in predominantly nonverbal subjects, such as art, 
 83.1   music, and physical education, pupils of limited English 
 83.2   proficiency English language learners shall be permitted to 
 83.3   participate fully and on an equal basis with their 
 83.4   contemporaries in public school classes provided for these 
 83.5   subjects.  To the extent possible, the district must assure to 
 83.6   pupils enrolled in a program for limited English proficient 
 83.7   students an educational program for English language learners an 
 83.8   equal and meaningful opportunity to participate fully with other 
 83.9   pupils in all extracurricular activities. 
 83.10     Sec. 46.  Minnesota Statutes 2003 Supplement, section 
 83.11  124D.86, subdivision 3, is amended to read: 
 83.12     Subd. 3.  [INTEGRATION REVENUE.] Integration revenue equals 
 83.13  the sum of $67 in state aid times the adjusted pupil units for 
 83.14  the school plus the following levy amounts: 
 83.15     (1) for Independent School District No. 709, Duluth, $206 
 83.16  $61.80 times the adjusted pupil units for the school year; 
 83.17     (2) for Independent School District No. 625, St. Paul, $445 
 83.18  $133.50 times the adjusted pupil units for the school year; 
 83.19     (3) for Special School District No. 1, Minneapolis, the sum 
 83.20  of $445 $168.50 times the adjusted pupil units for the school 
 83.21  year and an additional $35 times the adjusted pupil units for 
 83.22  the school year that is provided entirely through a local levy; 
 83.23     (4) for a district not listed in clause (1), (2), or (3), 
 83.24  that must implement a plan under Minnesota Rules, parts 
 83.25  3535.0100 to 3535.0180, where the district's enrollment of 
 83.26  protected students, as defined under Minnesota Rules, part 
 83.27  3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 
 83.28  of implementing the plan during the fiscal year minus the aid 
 83.29  received under subdivision 6, or (ii) $129 $37.50 times the 
 83.30  adjusted pupil units for the school year; 
 83.31     (5) for a district not listed in clause (1), (2), (3), or 
 83.32  (4), that is required to implement a plan according to the 
 83.33  requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
 83.34  the lesser of 
 83.35     (i) the actual cost of implementing the plan during the 
 83.36  fiscal year minus the aid received under subdivision 6, or 
 84.1      (ii) $92 $28.50 times the adjusted pupil units for the 
 84.2   school year. 
 84.3      Any money received by districts in clauses (1) to (3) which 
 84.4   exceeds the amount received in fiscal year 2000 shall be subject 
 84.5   to the budget requirements in subdivision 1a; and 
 84.6      (6) for a member district of a multidistrict integration 
 84.7   collaborative that files a plan with the commissioner, but is 
 84.8   not contiguous to a racially isolated district, integration 
 84.9   revenue equals the amount defined in clause (5). 
 84.10     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 84.11  fiscal year 2005. 
 84.12     Sec. 47.  Minnesota Statutes 2003 Supplement, section 
 84.13  124D.86, subdivision 4, is amended to read: 
 84.14     Subd. 4.  [INTEGRATION LEVY.] A district may levy an the 
 84.15  amount equal to 37 percent for fiscal year 2003, 23 percent for 
 84.16  fiscal year 2004, and 30 percent for fiscal year 2005 and 
 84.17  thereafter of the district's integration revenue as defined 
 84.18  specified in subdivision 3 1. 
 84.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 84.20  fiscal year 2005. 
 84.21     Sec. 48.  Minnesota Statutes 2002, section 125A.22, is 
 84.22  amended to read: 
 84.23     125A.22 [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] 
 84.24     A district, group of districts, or special education 
 84.25  cooperative, in cooperation with the county or counties in which 
 84.26  the district or cooperative is located, must establish a 
 84.27  community transition interagency committee for youth with 
 84.28  disabilities, beginning at grade 9 or age equivalent, and their 
 84.29  families.  Members of the committee must consist of 
 84.30  representatives from special education, vocational and regular 
 84.31  education, community education, postsecondary education and 
 84.32  training institutions, the mental health community, adults with 
 84.33  disabilities who have received transition services if such 
 84.34  persons are available, parents of youth with disabilities, local 
 84.35  business or industry, rehabilitation services, county social 
 84.36  services, health agencies, and additional public or private 
 85.1   adult service providers as appropriate.  The committee must 
 85.2   elect a chair and must meet regularly.  The committee must: 
 85.3      (1) identify current services, programs, and funding 
 85.4   sources provided within the community for secondary and 
 85.5   postsecondary aged youth with disabilities and their families; 
 85.6      (2) facilitate the development of multiagency teams to 
 85.7   address present and future transition needs of individual 
 85.8   students on their individual education plans; 
 85.9      (3) develop a community plan to include mission, goals, and 
 85.10  objectives, and an implementation plan to assure that transition 
 85.11  needs of individuals with disabilities are met; 
 85.12     (4) recommend changes or improvements in the community 
 85.13  system of transition services; 
 85.14     (5) exchange agency information such as appropriate data, 
 85.15  effectiveness studies, special projects, exemplary programs, and 
 85.16  creative funding of programs; and 
 85.17     (6) following procedures determined by the commissioner, 
 85.18  prepare a yearly summary assessing the progress of transition 
 85.19  services in the community including follow-up of individuals 
 85.20  with disabilities who were provided transition services to 
 85.21  determine postschool outcomes.  The summary must be disseminated 
 85.22  to all adult services agencies involved in the planning and to 
 85.23  the commissioner by October 1 of each year.  
 85.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 85.25  following final enactment. 
 85.26     Sec. 49.  Minnesota Statutes 2003 Supplement, section 
 85.27  128C.05, subdivision 1a, is amended to read: 
 85.28     Subd. 1a.  [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 
 85.29  Notwithstanding Minnesota Rules, part 4717.3750, any pool built 
 85.30  before January 1, 1987, that was used for a high school diving 
 85.31  program during the 2000-2001 school year may be used for 
 85.32  supervised competitive high school diving unless a pool that 
 85.33  meets the requirements of Minnesota Rules, part 4717.3750, is 
 85.34  located within the school district.  Schools and school 
 85.35  districts are strongly encouraged to use a pool for supervised 
 85.36  competitive high school diving that meets the requirements of 
 86.1   Minnesota Rules, part 4717.3750.  A school or district using a 
 86.2   pool for supervised competitive high school diving that does not 
 86.3   meet the requirements of the rule must provide appropriate 
 86.4   notice to parents and participants. 
 86.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 86.6   following final enactment. 
 86.7      Sec. 50.  Minnesota Statutes 2002, section 171.04, 
 86.8   subdivision 1, is amended to read: 
 86.9      Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
 86.10  shall not issue a driver's license: 
 86.11     (1) to any person under 18 years unless: 
 86.12     (i) the applicant is 16 or 17 years of age and has a 
 86.13  previously issued valid license from another state or country or 
 86.14  the applicant has, for the 12 consecutive months preceding 
 86.15  application, held a provisional license and during that time has 
 86.16  incurred (A) no conviction for a violation of section 169A.20, 
 86.17  169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 
 86.18  conviction for a crash-related moving violation, and (C) not 
 86.19  more than one conviction for a moving violation that is not 
 86.20  crash related.  "Moving violation" means a violation of a 
 86.21  traffic regulation but does not include a parking violation, 
 86.22  vehicle equipment violation, or warning citation; 
 86.23     (ii) the application for a license is approved by (A) 
 86.24  either parent when both reside in the same household as the 
 86.25  minor applicant or, if otherwise, then (B) the parent or spouse 
 86.26  of the parent having custody or, in the event there is no court 
 86.27  order for custody, then (C) the parent or spouse of the parent 
 86.28  with whom the minor is living or, if subitems (A) to (C) do not 
 86.29  apply, then (D) the guardian having custody of the minor or, in 
 86.30  the event a person under the age of 18 has no living father, 
 86.31  mother, or guardian, or is married or otherwise legally 
 86.32  emancipated, then (E) the minor's adult spouse, adult close 
 86.33  family member, or adult employer; provided, that the approval 
 86.34  required by this item contains a verification of the age of the 
 86.35  applicant and the identity of the parent, guardian, adult 
 86.36  spouse, adult close family member, or adult employer; and 
 87.1      (iii) the applicant presents a certification by the person 
 87.2   who approves the application under item (ii), stating that the 
 87.3   applicant has driven a motor vehicle accompanied by and under 
 87.4   supervision of a licensed driver at least 21 years of age for at 
 87.5   least ten hours during the period of provisional licensure; and 
 87.6      (iv) the applicant presents a certificate under section 
 87.7   120A.23 either verifying school attendance or waiving the 
 87.8   attendance requirement; 
 87.9      (2) to any person who is 18 years of age or younger, unless 
 87.10  the person has applied for, been issued, and possessed the 
 87.11  appropriate instruction permit for a minimum of six months, and, 
 87.12  with respect to a person under 18 years of age, a provisional 
 87.13  license for a minimum of 12 months; 
 87.14     (3) to any person who is 19 years of age or older, unless 
 87.15  that person has applied for, been issued, and possessed the 
 87.16  appropriate instruction permit for a minimum of three months; 
 87.17     (4) to any person whose license has been suspended during 
 87.18  the period of suspension except that a suspended license may be 
 87.19  reinstated during the period of suspension upon the licensee 
 87.20  furnishing proof of financial responsibility in the same manner 
 87.21  as provided in the Minnesota No-Fault Automobile Insurance Act; 
 87.22     (5) to any person whose license has been revoked except 
 87.23  upon furnishing proof of financial responsibility in the same 
 87.24  manner as provided in the Minnesota No-Fault Automobile 
 87.25  Insurance Act and if otherwise qualified; 
 87.26     (6) to any drug-dependent person, as defined in section 
 87.27  254A.02, subdivision 5; 
 87.28     (7) to any person who has been adjudged legally incompetent 
 87.29  by reason of mental illness, mental deficiency, or inebriation, 
 87.30  and has not been restored to capacity, unless the department is 
 87.31  satisfied that the person is competent to operate a motor 
 87.32  vehicle with safety to persons or property; 
 87.33     (8) to any person who is required by this chapter to take a 
 87.34  vision, knowledge, or road examination, unless the person has 
 87.35  successfully passed the examination.  An applicant who fails 
 87.36  four road tests must complete a minimum of six hours of 
 88.1   behind-the-wheel instruction with an approved instructor before 
 88.2   taking the road test again; 
 88.3      (9) to any person who is required under the Minnesota 
 88.4   No-Fault Automobile Insurance Act to deposit proof of financial 
 88.5   responsibility and who has not deposited the proof; 
 88.6      (10) to any person when the commissioner has good cause to 
 88.7   believe that the operation of a motor vehicle on the highways by 
 88.8   the person would be inimical to public safety or welfare; 
 88.9      (11) to any person when, in the opinion of the 
 88.10  commissioner, the person is afflicted with or suffering from a 
 88.11  physical or mental disability or disease that will affect the 
 88.12  person in a manner as to prevent the person from exercising 
 88.13  reasonable and ordinary control over a motor vehicle while 
 88.14  operating it upon the highways; 
 88.15     (12) to a person who is unable to read and understand 
 88.16  official signs regulating, warning, and directing traffic; 
 88.17     (13) to a child for whom a court has ordered denial of 
 88.18  driving privileges under section 260C.201, subdivision 1, or 
 88.19  260B.235, subdivision 5, until the period of denial is 
 88.20  completed; or 
 88.21     (14) to any person whose license has been canceled, during 
 88.22  the period of cancellation. 
 88.23     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 88.24  2004, and applies to all persons under age 18 who possess or 
 88.25  apply for a driver's instruction permit or provisional license 
 88.26  on or after that date. 
 88.27     Sec. 51.  Minnesota Statutes 2002, section 171.05, 
 88.28  subdivision 2, is amended to read: 
 88.29     Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
 88.30  Notwithstanding any provision in subdivision 1 to the contrary, 
 88.31  the department may issue an instruction permit to an applicant 
 88.32  who is 15, 16, or 17 years of age and who: 
 88.33     (1) has completed a course of driver education in another 
 88.34  state, has a previously issued valid license from another state, 
 88.35  or is enrolled in either: 
 88.36     (i) a public, private, or commercial driver education 
 89.1   program that is approved by the commissioner of public safety 
 89.2   and that includes classroom and behind-the-wheel training; or 
 89.3      (ii) an approved behind-the-wheel driver education program 
 89.4   when the student is receiving full-time instruction in a home 
 89.5   school within the meaning of sections 120A.22 and 120A.24, the 
 89.6   student is working toward a home-school diploma, the student's 
 89.7   status as a home-school student has been certified by the 
 89.8   superintendent of the school district in which the student 
 89.9   resides, and the student is taking home-classroom driver 
 89.10  training with classroom materials approved by the commissioner 
 89.11  of public safety; 
 89.12     (2) has completed the classroom phase of instruction in the 
 89.13  driver education program; 
 89.14     (3) has passed a test of the applicant's eyesight; 
 89.15     (4) has passed a department-administered test of the 
 89.16  applicant's knowledge of traffic laws; 
 89.17     (5) has completed the required application, which must be 
 89.18  approved by (i) either parent when both reside in the same 
 89.19  household as the minor applicant or, if otherwise, then (ii) the 
 89.20  parent or spouse of the parent having custody or, in the event 
 89.21  there is no court order for custody, then (iii) the parent or 
 89.22  spouse of the parent with whom the minor is living or, if items 
 89.23  (i) to (iii) do not apply, then (iv) the guardian having custody 
 89.24  of the minor or, in the event a person under the age of 18 has 
 89.25  no living father, mother, or guardian, or is married or 
 89.26  otherwise legally emancipated, then (v) the applicant's adult 
 89.27  spouse, adult close family member, or adult employer; provided, 
 89.28  that the approval required by this clause contains a 
 89.29  verification of the age of the applicant and the identity of the 
 89.30  parent, guardian, adult spouse, adult close family member, or 
 89.31  adult employer; and 
 89.32     (6) presents a certificate under section 120A.23 either 
 89.33  verifying school attendance or waiving the attendance 
 89.34  requirement; and 
 89.35     (7) has paid the fee required in section 171.06, 
 89.36  subdivision 2. 
 90.1      (b) The instruction permit is valid for one year from the 
 90.2   date of application and may be renewed upon payment of a fee 
 90.3   equal to the fee for issuance of an instruction permit under 
 90.4   section 171.06, subdivision 2. 
 90.5      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 90.6   2004, and applies to all persons under age 18 who possess or 
 90.7   apply for a driver's instruction permit on or after that date. 
 90.8      Sec. 52.  Minnesota Statutes 2002, section 171.05, 
 90.9   subdivision 2b, is amended to read: 
 90.10     Subd. 2b.  [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 
 90.11  (a) This subdivision applies to persons who have applied for and 
 90.12  received an instruction permit under subdivision 2. 
 90.13     (b) The permit holder may, with the permit in possession, 
 90.14  operate a motor vehicle, but must be accompanied by and be under 
 90.15  the supervision of a certified driver education instructor, the 
 90.16  permit holder's parent or guardian, or another licensed driver 
 90.17  age 21 or older.  The supervisor must occupy the seat beside the 
 90.18  permit holder. 
 90.19     (c) The permit holder may operate a motor vehicle only when 
 90.20  every occupant under the age of 18 has a seat belt or child 
 90.21  passenger restraint system properly fastened.  A person who 
 90.22  violates this paragraph is subject to a fine of $25.  A peace 
 90.23  officer may not issue a citation for a violation of this 
 90.24  paragraph unless the officer lawfully stopped or detained the 
 90.25  driver of the motor vehicle for a moving violation as defined in 
 90.26  section 171.04, subdivision 1.  The commissioner shall not 
 90.27  record a violation of this paragraph on a person's driving 
 90.28  record. 
 90.29     (d) The permit holder must maintain a driving record free 
 90.30  of convictions for moving violations, as defined in section 
 90.31  171.04, subdivision 1, and free of convictions for violation of 
 90.32  section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 
 90.33  169A.53.  If the permit holder drives a motor vehicle in 
 90.34  violation of the law, the commissioner shall suspend, cancel, or 
 90.35  revoke the permit in accordance with the statutory section 
 90.36  violated. 
 91.1      (e) The permit holder must comply with the school 
 91.2   attendance requirement under section 171.056, except when the 
 91.3   board waives the attendance requirement under section 120A.23.  
 91.4   If the permit holder does not attend school as required, the 
 91.5   commissioner shall cancel the permit according to section 
 91.6   171.056. 
 91.7      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 91.8   2004, and applies to all persons under age 18 who possess or 
 91.9   apply for a driver's instruction permit on or after that date. 
 91.10     Sec. 53.  Minnesota Statutes 2002, section 171.05, 
 91.11  subdivision 3, is amended to read: 
 91.12     Subd. 3.  [MOTORIZED BICYCLE.] Notwithstanding any 
 91.13  provision in subdivision 1 to the contrary, the department, upon 
 91.14  application and payment of the fee prescribed in section 171.02, 
 91.15  subdivision 3, may issue a motorized bicycle instruction permit 
 91.16  to an applicant who is 15 years of age and, who has successfully 
 91.17  completed the written portion of the examination prescribed by 
 91.18  the commissioner, and who presents a certificate under section 
 91.19  171.056 verifying school attendance or waiving the attendance 
 91.20  requirement.  The holder of this instruction permit who has the 
 91.21  permit in possession may operate a motorized bicycle within one 
 91.22  mile of the holder's residence for the purpose of practicing to 
 91.23  take the operator portion of the examination prescribed by the 
 91.24  commissioner. 
 91.25     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 91.26  2004, and applies to all persons under age 18 who possess or 
 91.27  apply for a motorized bicycle instruction permit on or after 
 91.28  that date. 
 91.29     Sec. 54.  [171.056] [SCHOOL ATTENDANCE REQUIRED FOR 
 91.30  DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 
 91.31  PROVISIONAL LICENSE.] 
 91.32     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 91.33  section, the terms defined in this subdivision have the meanings 
 91.34  given them. 
 91.35     (b) "Administrator" means a school principal or an 
 91.36  equivalent administrator of a state-approved alternative program 
 92.1   or a charter school. 
 92.2      (c) "Board" means a school board of a school district, a 
 92.3   board of a state-approved alternative program, or a charter 
 92.4   school board of directors. 
 92.5      (d) "School" means a district public school, a 
 92.6   state-approved alternative program, or a charter school. 
 92.7      (e) "Superintendent" means a district superintendent or an 
 92.8   equivalent administrator of a state-approved alternative program 
 92.9   or a charter school.  
 92.10     Subd. 2.  [ISSUING OR RENEWING A DRIVER'S INSTRUCTION 
 92.11  PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 
 92.12  Notwithstanding any law to the contrary, except when a board 
 92.13  waives the attendance requirement under section 120A.23, a 
 92.14  person under age 18 seeking a new driver's instruction permit, 
 92.15  motorized bicycle permit, or provisional license or seeking to 
 92.16  renew a permit must attend school.  The person satisfies the 
 92.17  school attendance requirement by: 
 92.18     (1) receiving a high school diploma or general education 
 92.19  development certificate (GED); 
 92.20     (2) withdrawing from school under section 120A.22, 
 92.21  subdivision 8; or 
 92.22     (3) enrolling and attending school, including a charter 
 92.23  school, in good standing under section 120A.22, subdivision 4. 
 92.24     (b) A person under age 18 who applies for a motorized 
 92.25  bicycle permit, instruction permit, or provisional license must 
 92.26  submit the necessary information to the department certifying 
 92.27  that the person meets the requirement for obtaining or keeping a 
 92.28  permit or license under paragraph (a). 
 92.29     (c) The administrator at the person's school must certify 
 92.30  that the person attended school for the current and preceding 
 92.31  school year, to the extent records are available.  The 
 92.32  department shall make a form available for the administrator to 
 92.33  complete that includes the person's name, date of birth, and 
 92.34  address.  A parent or guardian must give the administrator prior 
 92.35  written consent to release to the department any nonpublic data 
 92.36  about the student and any data not designated as directory 
 93.1   information.  The school must notify parents and guardians in 
 93.2   the school's student attendance policy that their written 
 93.3   consent is needed to transfer such data about the student to the 
 93.4   department. 
 93.5      Subd. 3.  [CANCELING A PERMIT OR LICENSE.] (a) 
 93.6   Notwithstanding any law to the contrary, the department shall 
 93.7   cancel the motorized bicycle permit, instruction permit, or 
 93.8   provisional license of a person under age 18 when the 
 93.9   administrator notifies the department that the person: 
 93.10     (1) is truant under section 260C.007, subdivision 19; 
 93.11     (2) has not withdrawn under section 120A.22, subdivision 8; 
 93.12  and 
 93.13     (3) has not received a high school diploma or general 
 93.14  education development certificate (GED). 
 93.15     The department shall notify the person that the person's 
 93.16  permit or license is canceled under section 171.14 beginning 
 93.17  five days after the notice is issued. 
 93.18     The school must inform the person and the person's parent 
 93.19  or legal guardian by first class mail or other reasonable means 
 93.20  that the person's motorized bicycle permit, instruction permit, 
 93.21  or provisional license may be canceled and that the person may 
 93.22  request a hardship waiver from the school under subdivision 4 to 
 93.23  keep the license or permit. 
 93.24     The school must obtain the prior written consent of the 
 93.25  parent or guardian to release the data to the department. 
 93.26     (b) Notwithstanding section 171.14, or other law to the 
 93.27  contrary, the department shall cancel the permit or license of a 
 93.28  person under age 18 until one of the following conditions is 
 93.29  first satisfied: 
 93.30     (1) the person is 18 years old; or 
 93.31     (2) an administrator notifies the department to reinstate 
 93.32  the person's permit or license because: 
 93.33     (i) the person attended school for 120 days after the date 
 93.34  the department issued its cancellation notice; or 
 93.35     (ii) the administrator, at the board's direction, dismisses 
 93.36  the person's expulsion under the Pupil Fair Dismissal Act, 
 94.1   sections 121A.40 to 121A.56. 
 94.2      (c) When a person satisfies a requirement for reinstating a 
 94.3   license or permit under paragraph (b), a school shall send an 
 94.4   electronic notice to the department to rescind the cancellation 
 94.5   of the person's license or permit after obtaining the parent's 
 94.6   written consent to release to the department nonpublic data 
 94.7   about the student and data not designated as directory 
 94.8   information.  
 94.9      Subd. 4.  [HARDSHIP WAIVER.] A person whose permit or 
 94.10  provisional license may be canceled under this section may ask 
 94.11  the school for a hardship waiver hearing.  The superintendent 
 94.12  must conduct the hearing within seven days after receiving the 
 94.13  request.  The superintendent must appoint an advisory committee 
 94.14  to hear evidence and recommend in writing whether or not to 
 94.15  cancel the person's permit or provisional license.  The advisory 
 94.16  committee must, within two days of holding the hearing, submit 
 94.17  its recommendation, evidence, and other related documents to the 
 94.18  superintendent.  An administrator, the person whose permit or 
 94.19  license may be canceled, and the person's parent or guardian may 
 94.20  present evidence.  The superintendent must electronically notify 
 94.21  the department of the decision within seven days after the 
 94.22  hearing is held.  The school must obtain the prior written 
 94.23  consent of the parent or guardian to release the data to the 
 94.24  department.  The superintendent's decision is final and cannot 
 94.25  be appealed. 
 94.26     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 94.27  2004, and applies to all persons under age 18 years who possess 
 94.28  or apply for a motorized bicycle permit, driver's instruction 
 94.29  permit, or provisional license on or after that date. 
 94.30     Sec. 55.  Minnesota Statutes 2002, section 171.19, is 
 94.31  amended to read: 
 94.32     171.19 [PETITION FOR LICENSE REINSTATEMENT.] 
 94.33     Any person whose driver's license has been refused, 
 94.34  revoked, suspended, canceled, or disqualified by the 
 94.35  commissioner, except where the license is revoked or 
 94.36  disqualified under section 169A.52 or 171.186 or canceled under 
 95.1   section 171.056, may file a petition for a hearing in the matter 
 95.2   in the district court in the county wherein such person shall 
 95.3   reside and, in the case of a nonresident, in the district court 
 95.4   in any county, and such court is hereby vested with 
 95.5   jurisdiction, and it shall be its duty, to set the matter for 
 95.6   hearing upon 15 days' written notice to the commissioner, and 
 95.7   thereupon to take testimony and examine into the facts of the 
 95.8   case to determine whether the petitioner is entitled to a 
 95.9   license or is subject to revocation, suspension, cancellation, 
 95.10  disqualification, or refusal of license, and shall render 
 95.11  judgment accordingly.  The petition for hearing must either be 
 95.12  filed within 180 days of the effective date of the order of 
 95.13  revocation, suspension, cancellation, disqualification, or 
 95.14  refusal to license or be filed before expiration of the 
 95.15  withdrawal period, whichever occurs first.  The petition shall 
 95.16  be heard by the court without a jury and may be heard in or out 
 95.17  of term.  The commissioner may appear in person, or by agents or 
 95.18  representatives, and may present evidence upon the hearing by 
 95.19  affidavit personally, by agents, or by representatives.  The 
 95.20  petitioner may present evidence by affidavit, except that the 
 95.21  petitioner must be present in person at such hearing for the 
 95.22  purpose of cross-examination.  In the event the department shall 
 95.23  be sustained in these proceedings, the petitioner shall have no 
 95.24  further right to make further petition to any court for the 
 95.25  purpose of obtaining a driver's license until after the 
 95.26  expiration of one year after the date of such hearing. 
 95.27     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 95.28  2004. 
 95.29     Sec. 56.  Minnesota Statutes 2002, section 260A.03, is 
 95.30  amended to read: 
 95.31     260A.03 [NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 
 95.32  CONTINUING TRUANT.] 
 95.33     Upon a child's initial classification as a continuing 
 95.34  truant, the school attendance officer or other designated school 
 95.35  official shall notify the child's parent or legal guardian, by 
 95.36  first-class mail or other reasonable means, of the following: 
 96.1      (1) that the child is truant; 
 96.2      (2) that the parent or guardian should notify the school if 
 96.3   there is a valid excuse for the child's absences; 
 96.4      (3) that the parent or guardian is obligated to compel the 
 96.5   attendance of the child at school pursuant to section 120A.22 
 96.6   and parents or guardians who fail to meet this obligation may be 
 96.7   subject to prosecution under section 120A.34; 
 96.8      (4) that this notification serves as the notification 
 96.9   required by section 120A.34; 
 96.10     (5) that alternative educational programs and services may 
 96.11  be available in the district; 
 96.12     (6) that the parent or guardian has the right to meet with 
 96.13  appropriate school personnel to discuss solutions to the child's 
 96.14  truancy; 
 96.15     (7) that the school, after obtaining the informed consent 
 96.16  of the child's parent or guardian to release the data to the 
 96.17  Department of Public Safety, must notify the department to 
 96.18  cancel the child's license or permit under section 171.056 when 
 96.19  the child is truant under section 260C.007, subdivision 19, 
 96.20  unless the school waived the attendance requirement under 
 96.21  section 120A.23; 
 96.22     (8) that if the child continues to be truant, the parent 
 96.23  and child may be subject to juvenile court proceedings under 
 96.24  chapter 260C; 
 96.25     (8) (9) that if the child is subject to juvenile court 
 96.26  proceedings, the child may be subject to suspension, 
 96.27  restriction, or delay of the child's driving privilege pursuant 
 96.28  to section 260C.201; and 
 96.29     (9) (10) that it is recommended that the parent or guardian 
 96.30  accompany the child to school and attend classes with the child 
 96.31  for one day. 
 96.32     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 96.33  2004.  
 96.34     Sec. 57.  Laws 2003, First Special Session chapter 9, 
 96.35  article 2, section 55, subdivision 5, is amended to read: 
 96.36     Subd. 5.  [INTEGRATION AID.] For integration aid under 
 97.1   Minnesota Statutes, section 124D.86, subdivision 5: 
 97.2        $56,869,000 $55,911,000     .....     2004 
 97.3        $56,092,000 $33,306,000
 97.4        .....     2005 
 97.5      The 2004 appropriation includes $8,428,000 for 2003 and 
 97.6   $48,441,000 $47,483,000 for 2004. 
 97.7      The 2005 appropriation includes $12,110,000 $11,870,000 for 
 97.8   2004 and $43,982,000 $21,436,000 for 2005.  
 97.9      Sec. 58.  Laws 2003, First Special Session chapter 9, 
 97.10  article 2, section 55, subdivision 15, is amended to read: 
 97.11     Subd. 15.  [BEST PRACTICES SEMINARS.] For best practices 
 97.12  seminars and other professional development capacity building 
 97.13  activities that assure proficiency in teaching and 
 97.14  implementation of graduation rule standards: 
 97.15       $1,000,000     .....     2004
 97.16       $1,000,000 $250,000    .....     2005
 97.17     $250,000 per year is for a grant to A Chance to Grow/New 
 97.18  Visions for the Minnesota learning resource center's 
 97.19  comprehensive training program for education professionals 
 97.20  charged with helping children acquire basic reading and math 
 97.21  skills.  
 97.22     The base budget for this program is $200,000 for fiscal 
 97.23  year 2006 and $100,000 for fiscal year 2007. 
 97.24     Sec. 59.  Laws 2003, First Special Session chapter 9, 
 97.25  article 2, section 55, subdivision 16, is amended to read: 
 97.26     Subd. 16.  [ALTERNATIVE TEACHER COMPENSATION.] For 
 97.27  alternative teacher compensation established under Minnesota 
 97.28  Statutes, sections 122A.413 to 122A.415: 
 97.29       $3,700,000     .....     2004
 97.30       $3,700,000     .....     2005
 97.31     If the appropriations under this subdivision are 
 97.32  insufficient to fund all program participants, a participant may 
 97.33  receive less than the maximum per pupil amount available under 
 97.34  Minnesota Statutes, section 122A.415, subdivision 1.  A 
 97.35  qualifying district or site receiving alternative teacher 
 97.36  compensation funding under this subdivision may use the funding 
 98.1   it receives to leverage additional funds from a national program 
 98.2   for enhancing teacher professionalism. 
 98.3      Any balance in the first year does not cancel but is 
 98.4   available in the second year. 
 98.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 98.6   following final enactment. 
 98.7      Sec. 60.  Laws 2003, First Special Session chapter 9, 
 98.8   article 2, section 55, subdivision 17, is amended to read: 
 98.9      Subd. 17.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
 98.10  PROGRAMS.] (a) For students' advanced placement and 
 98.11  international baccalaureate examination fees under Minnesota 
 98.12  Statutes, section 120B.13, subdivision 3, and the training and 
 98.13  related costs for teachers and other interested educators under 
 98.14  Minnesota Statutes, section 120B.13, subdivision 1: 
 98.15       $  778,000     .....     2004 
 98.16       $  778,000     .....     2005   
 98.17     (b) The advanced placement program shall receive 75 percent 
 98.18  of the appropriation each year and the international 
 98.19  baccalaureate program shall receive 25 percent of the 
 98.20  appropriation each year.  The department, in consultation with 
 98.21  representatives of the advanced placement and international 
 98.22  baccalaureate programs selected by the advanced placement 
 98.23  advisory council and IBMN, respectively, shall determine the 
 98.24  amounts of the expenditures each year for examination fees and 
 98.25  training and support programs for each program. 
 98.26     (c) Notwithstanding Minnesota Statutes, section 120B.13, 
 98.27  subdivision 1, $375,000 each year is for teachers to attend 
 98.28  subject matter summer training programs and follow-up support 
 98.29  workshops approved by the advanced placement or international 
 98.30  baccalaureate programs.  The amount of the subsidy for each 
 98.31  teacher attending an advanced placement or international 
 98.32  baccalaureate summer training program or workshop shall be the 
 98.33  same.  The commissioner shall determine the payment process and 
 98.34  the amount of the subsidy. 
 98.35     (d) The commissioner shall pay all examination fees for all 
 98.36  students of low-income families under Minnesota Statutes, 
 99.1   section 120B.13, subdivision 3, and to the extent of available 
 99.2   appropriations shall also pay examination fees for students 
 99.3   sitting for an advanced placement examination, international 
 99.4   baccalaureate examination, or both.  
 99.5      Any balance in the first year does not cancel but is 
 99.6   available in the second year. 
 99.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 99.8   following final enactment for revenue for fiscal year 2004. 
 99.9      Sec. 61.  Laws 2003, First Special Session chapter 9, 
 99.10  article 2, section 55, subdivision 19, is amended to read: 
 99.11     Subd. 19.  [YOUTH WORKS PROGRAM.] For funding youth works 
 99.12  programs under Minnesota Statutes, sections 124D.37 to 124D.45: 
 99.13       $900,000     .....     2004 
 99.14       $900,000     .....     2005 
 99.15     (a) $150,000 per year is for training in evaluating early 
 99.16  literacy skills and teaching reading to preschool children under 
 99.17  Minnesota Statutes, section 124D.42, subdivision 6, paragraph 
 99.18  (a), clause (3).  
 99.19     (b) A grantee organization may provide health and child 
 99.20  care coverage to the dependents of each participant enrolled in 
 99.21  a full-time youth works program to the extent such coverage is 
 99.22  not otherwise available. 2004 or fiscal year 2005 shall be no 
 99.23  less than its fiscal year 2003 allocation. 
 99.24     (c) The budget base for this program is $900,000 in fiscal 
 99.25  year 2006 and $500,000 in fiscal year 2007.  
 99.26     Sec. 62.  Laws 2003, First Special Session chapter 9, 
 99.27  article 2, section 55, subdivision 21, as amended by Laws 2003, 
 99.28  First Special Session chapter 23, section 16, is amended to read:
 99.29     Subd. 21.  [ON-LINE LEARNING.] For on-line learning aid 
 99.30  under Minnesota Statutes, section 124D.095:  
 99.31     $1,000,000       .....     2004
 99.32     $1,250,000 $2,750,000      .....     2005
 99.33     Sec. 63.  [RULEMAKING AUTHORITY.] 
 99.34     Subdivision 1.  [SUPPLEMENTAL EDUCATION SERVICE PROVIDERS.] 
 99.35  The commissioner of education shall adopt rules under Minnesota 
 99.36  Statutes, chapter 14, making permanent the supplemental 
100.1   education service provider exempt rules authorized under Laws 
100.2   2003, chapter 129, article 2, section 3. 
100.3      Subd. 2.  [STATEWIDE TESTING.] The commissioner of 
100.4   education shall adopt rules under Minnesota Statutes, chapter 
100.5   14, for the administration of statewide accountability tests 
100.6   under Minnesota Statutes, section 120B.30, to ensure security 
100.7   and integrity of the tests and test results. 
100.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
100.9   following final enactment. 
100.10     Sec. 64.  [SCHOOL INNOVATION AND COOPERATIVE PLANNING 
100.11  GRANTS.] 
100.12     Subdivision 1.  [GRANT PROGRAMS.] The commissioner of 
100.13  education shall award planning grants to service cooperatives, 
100.14  two or more school districts cooperating for a particular 
100.15  purpose, or cooperating charter schools that work together to 
100.16  improve the delivery and cost-effectiveness of instructional and 
100.17  noninstructional programs and services and increase funds 
100.18  available for instruction-related expenditures.  Service 
100.19  cooperatives, cooperating districts, or cooperating charter 
100.20  schools may coordinate or merge any noninstructional program or 
100.21  service of a participating district or charter school.  The 
100.22  service cooperatives, cooperating districts, or cooperating 
100.23  charter schools may use the grant to determine: 
100.24     (1) the district or charter school that is the primary 
100.25  service provider; 
100.26     (2) the districts or charter schools that provide 
100.27  supplemental support; 
100.28     (3) collaborative purchasing arrangements for goods and 
100.29  services; and 
100.30     (4) how the districts or charter schools may coordinate or 
100.31  merge school functions such as payroll, human resources, food 
100.32  services, facility maintenance, community education programming, 
100.33  and student transportation.  
100.34  Service cooperatives, cooperating districts, or cooperating 
100.35  charter schools must apply for a grant in a form and manner 
100.36  determined by the commissioner. 
101.1      Subd. 2.  [REPORT.] The service cooperatives, cooperating 
101.2   districts, and charter schools must report by August 1 to the 
101.3   commissioner on coordinating noninstructional programs and 
101.4   services and any estimates of cost savings realized by providing 
101.5   coordinated or merged programs and services during the preceding 
101.6   school year. 
101.7      Sec. 65.  [PILOT PROJECT RECOGNIZING TEACHERS' CRITICAL 
101.8   ROLE IN IMPROVING STUDENT ACHIEVEMENT AND SCHOOL PERFORMANCE.] 
101.9      Subdivision 1.  [PROJECT GOAL DEFINED; APPLICATION PROCESS 
101.10  ESTABLISHED; RECOGNITION CONFERRED.] (a) A five-year pilot 
101.11  project beginning in the 2005-2006 school year is established to 
101.12  recognize teachers' critical role in improving student 
101.13  achievement and school performance in those district elementary 
101.14  schools and charter elementary schools that have consistently 
101.15  failed to demonstrate adequate yearly progress under Minnesota 
101.16  Statutes, section 120B.35, and where at least 28 percent of the 
101.17  student population is eligible to receive a free or 
101.18  reduced-price meal in the school year in which an application 
101.19  under this section is submitted to the education commissioner.  
101.20  In order to measure teachers' critical role in improving student 
101.21  achievement and school performance, elementary schools that 
101.22  participate in the project, among other measures, must use 
101.23  assessments of students' academic achievement, to the extent 
101.24  available, to make longitudinal comparisons of each student's 
101.25  academic growth over time.  Districts, on behalf of a district 
101.26  elementary school, and charter elementary schools may apply to 
101.27  the commissioner to participate in the project in the form and 
101.28  manner the commissioner prescribes.  A plan described under 
101.29  paragraph (c) must accompany the district or charter elementary 
101.30  school application.  The commissioner must consider selecting 
101.31  project participants from urban, suburban, and rural areas 
101.32  throughout the state and must select no more than three 
101.33  elementary schools to participate. 
101.34     (b) "Principal" for purposes of this section means the 
101.35  school principal or other person having administrative control 
101.36  of the school.  The principal may receive compensation under 
102.1   this subdivision in addition to the principal's current salary, 
102.2   consistent with the plan submitted to the commissioner under 
102.3   paragraph (c).  
102.4      (c) To participate in the project, the teachers and 
102.5   principal at an elementary school, in consultation with the 
102.6   district where applicable, and subject to the commissioner's 
102.7   approval, must develop a plan consistent with subdivision 2 or 
102.8   3, as appropriate, that: 
102.9      (1) delegates specific powers and duties, allows the 
102.10  principal to decide how to allocate financial and personnel 
102.11  resources and from whom to purchase goods and services, and 
102.12  allocates revenue to the school, where applicable; 
102.13     (2) includes a design for implementing a value-added 
102.14  assessment model that reliably estimates teacher and school 
102.15  effects on students' academic achievement over time for 
102.16  different classroom settings, for team teaching arrangements, 
102.17  and for other teaching circumstances, and provides staff 
102.18  development opportunities that address the impact of the 
102.19  value-added assessment model on curriculum, instruction and 
102.20  student progress, teacher performance measures, classroom 
102.21  assessment practices, and students' critical thinking skills and 
102.22  their ability to complete cognitively complex work; 
102.23     (3) records student attendance; and 
102.24     (4) parent involvement activities to enhance students' 
102.25  educational development, consistent with Minnesota Statutes, 
102.26  section 124D.895. 
102.27     The plan the elementary school implements must accommodate 
102.28  diverse data from various test sources and must use each 
102.29  student's test data across grades and subjects even when the 
102.30  data are incomplete.  The data on teachers generated under the 
102.31  value-added assessment model are private data under Minnesota 
102.32  Statutes, section 13.02, subdivision 12. 
102.33     (d) The principal, using the data acquired under paragraph 
102.34  (c), clause (2), to measure improvements in student achievement 
102.35  and school performance, must identify and recognize those 
102.36  classroom teachers who have successfully fostered educational 
103.1   improvement and are therefore eligible to receive compensation 
103.2   under this subdivision in addition to their current salary.  The 
103.3   principal must determine the amount of added compensation each 
103.4   eligible teacher receives and the payment schedule, consistent 
103.5   with the plan submitted to the commissioner under paragraph 
103.6   (c).  A teacher's total annual salary under this section must 
103.7   not exceed $100,000. 
103.8      Subd. 2.  [PARTICIPATING CHARTER ELEMENTARY SCHOOLS.] All 
103.9   provisions of Minnesota Statutes, sections 124D.10 and 124D.11, 
103.10  apply to a charter elementary school participating in the 
103.11  project under this section, consistent with the plan developed 
103.12  and approved under subdivision 1, paragraph (c), except that, 
103.13  for purposes of this section: 
103.14     (1) a charter elementary school contract must be entered 
103.15  into or extended for a five-year term beginning in the first 
103.16  school year of participation unless the school board or the 
103.17  commissioner terminates the school's participation; and 
103.18     (2) a charter elementary school must report information 
103.19  required by the commissioner under this section and consistent 
103.20  with Minnesota Statutes, chapter 13.  
103.21  The charter school sponsor or the commissioner may terminate the 
103.22  school's participation during the project term for any ground 
103.23  listed in Minnesota Statutes, section 124D.10, subdivision 23, 
103.24  paragraph (b). 
103.25     Subd. 3.  [PARTICIPATING DISTRICT ELEMENTARY SCHOOLS.] (a) 
103.26  The provisions of Minnesota Statutes, section 124D.10, governing 
103.27  charter elementary schools apply to a participating district 
103.28  elementary school during the term of the pilot project to the 
103.29  extent described in this subdivision, and consistent with the 
103.30  plan developed and approved under subdivision 1, paragraph (c).  
103.31  The words "participating school" must be substituted for 
103.32  "charter school," the words "school district" must be 
103.33  substituted for "sponsor," and the word "plan" must be 
103.34  substituted for "contract" under Minnesota Statutes, section 
103.35  124D.10. 
103.36     (b) Minnesota Statutes, section 124D.10, subdivisions 1, 2, 
104.1   2a, 3, 4 except as provided in paragraph (c), 6a, 9, 10, 15, 16 
104.2   except as provided in paragraph (i), 17, 18, 19, 21, 23a, and 
104.3   24, do not apply to a participating school under this section. 
104.4      (c) Under Minnesota Statutes, section 124D.10, subdivision 
104.5   4, governing the formation of a school, a participating school 
104.6   must select a board of directors composed of at least five 
104.7   members, one of whom must be the principal. 
104.8      (d) Under Minnesota Statutes, section 124D.10, subdivision 
104.9   5, governing the conversion of existing schools, a participating 
104.10  school must initiate its participation in the project at the 
104.11  beginning of a school year and must agree to continue 
104.12  participating for five school years unless the school board or 
104.13  the commissioner terminates the school's participation under 
104.14  paragraph (k). 
104.15     (e) Under Minnesota Statutes, section 124D.10, subdivisions 
104.16  6 and 8, governing contracts and state and local requirements, 
104.17  the plan of a participating school developed and approved under 
104.18  subdivision 1, paragraph (c), must establish how the school will 
104.19  be managed and administered and how it will comply with: 
104.20     (1) state human rights laws under Minnesota Statutes, 
104.21  chapter 363; 
104.22     (2) requirements for gender equity in athletic programs 
104.23  under Minnesota Statutes, section 121A.04; 
104.24     (3) the Pupil Fair Dismissal Act under Minnesota Statutes, 
104.25  sections 121A.40 to 121A.56; 
104.26     (4) the public school fee law under Minnesota Statutes, 
104.27  sections 123B.34 to 123B.39; 
104.28     (5) audit-related requirements and procedures under 
104.29  Minnesota Statutes, section 124D.10, subdivision 8, paragraph 
104.30  (i); 
104.31     (6) data practices laws governing access to student records 
104.32  under Minnesota Statutes, section 124D.10, subdivision 8, 
104.33  paragraph (k); 
104.34     (7) the requirement to recite the pledge of allegiance 
104.35  under Minnesota Statutes, section 124D.10, subdivision 8, 
104.36  paragraph (l); 
105.1      (8) academic standards, assessments, and accountability 
105.2   measures under Minnesota Statutes, sections 120B.02 to 120B.04 
105.3   and 120B.30 to 120B.36; and 
105.4      (9) the length of the school year. 
105.5      (f) Under Minnesota Statutes, section 124D.10, subdivision 
105.6   7, governing a school's public status, a participating school is 
105.7   a public school and is part of the district in which it is 
105.8   located.  Except as provided in this section, a participating 
105.9   school, after consulting with the district superintendent, may 
105.10  elect to be exempt from any statute or rule applicable to a 
105.11  school, a school board, or a school district. 
105.12     (g) Under Minnesota Statutes, section 124D.10, subdivision 
105.13  11, governing employment and other operating matters, the plan 
105.14  of a participating school developed and approved under 
105.15  subdivision 1, paragraph (c), must enable the principal to 
105.16  determine who is hired into licensed and nonlicensed positions 
105.17  in the school. 
105.18     (h) Under Minnesota Statutes, section 124D.10, subdivision 
105.19  14, governing annual public reports, a participating school must 
105.20  report at least annually to the school board of the district the 
105.21  information required by the district, and the district's school 
105.22  board must report at least annually to the commissioner the 
105.23  information required by the commissioner.  The reports are 
105.24  public data, consistent with Minnesota Statutes, chapter 13. 
105.25     (i) Under Minnesota Statutes, section 124D.10, subdivision 
105.26  16, governing transportation, the school district in which the 
105.27  participating school is located must provide transportation 
105.28  within the district to the students enrolled in the 
105.29  participating school. 
105.30     (j) Minnesota Statutes, section 124D.10, subdivision 20, 
105.31  governing leave to teach in a charter elementary school, applies 
105.32  to a participating school except the provision allowing a school 
105.33  board to extend a leave of absence does not apply. 
105.34     (k) Under Minnesota Statutes, section 124D.10, subdivision 
105.35  23, governing causes for nonrenewal or termination of a charter 
105.36  elementary school contract, the plan developed and approved 
106.1   under subdivision 1, paragraph (c), must be for a five-year 
106.2   term.  A school district may unilaterally terminate a school's 
106.3   participation during the project term for any ground listed in 
106.4   Minnesota Statutes, section 124D.10, subdivision 23, paragraph 
106.5   (b); provisions governing the nonrenewal of a charter elementary 
106.6   school contract do not apply to a participating school.  If a 
106.7   district terminates the participation of a school, the school 
106.8   reverts to the status it held immediately preceding its 
106.9   participation in this project.  The commissioner may terminate 
106.10  the participation of a participating school if the school or the 
106.11  school district in which the school is located has a history of 
106.12  financial mismanagement, repeated violations of law, or for 
106.13  other good cause. 
106.14     (l) Under Minnesota Statutes, section 124D.10, subdivision 
106.15  25, governing the extent of specific legal authority, the school 
106.16  district in which the school is located, and not the school, 
106.17  must obtain the requisite insurance on the school's behalf. 
106.18     Subd. 4.  [ADDITIONAL PARTICIPATING SCHOOLS.] The 
106.19  commissioner may seek and select another applicant to 
106.20  participate in this project, consistent with this section, if a 
106.21  participating school is terminated in the 2005-2006 or 2006-2007 
106.22  school year. 
106.23     Subd. 5.  [REPORTS.] The commissioner, by each March 1 
106.24  during the term of the pilot project, must submit progress 
106.25  reports to the legislative committees having jurisdiction over 
106.26  education policy and finance and must prepare a final written 
106.27  report to submit to the legislature by January 1, 2011.  The 
106.28  reports, among other things, must use data acquired from a 
106.29  value-added assessment model to analyze teachers' critical role 
106.30  in improving student achievement and school performance and 
106.31  reliably estimate teacher and school effects on students' 
106.32  academic achievement over time. 
106.33     Subd. 6.  [COMMISSIONER'S ROLE.] The commissioner, in 
106.34  consultation with a school district or charter school sponsor, 
106.35  and at the request of a participating school, must provide 
106.36  technical support to the participating school. 
107.1      Subd. 7.  [APPROPRIATIONS BASE.] The base appropriation for 
107.2   this program is $500,000 for fiscal year 2006 and $500,000 for 
107.3   fiscal year 2007.  
107.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
107.5   following final enactment and applies to the 2005-2006 through 
107.6   2009-2010 school years. 
107.7      Sec. 66.  [MODEL POLICY.] 
107.8      The education commissioner, in consultation with 
107.9   representatives of local school boards, school administrators, 
107.10  teachers, parents, students, and other individuals and 
107.11  organizations the commissioner determines are appropriate, must 
107.12  develop and transmit to school boards a model bullying policy, 
107.13  consistent with Minnesota Statutes, section 121A.032.  The 
107.14  policy must encourage school boards to provide information, 
107.15  training, programs, and other initiatives consistent with the 
107.16  model policy. 
107.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
107.18  following final enactment. 
107.19     Sec. 67.  [REVISOR'S INSTRUCTIONS.] 
107.20     (a) In Minnesota Statutes and Minnesota Rules, the revisor 
107.21  of statutes shall change the terms and phrases "pupil of limited 
107.22  English proficiency," "limited English proficiency," "individual 
107.23  students whose first language is not English," "the limited 
107.24  English speaking children," "those for whom English is a second 
107.25  language," "persons for whom English is a second language," "of 
107.26  pupils known to speak English as a second language," and similar 
107.27  terms and phrases to "English language learners" where 
107.28  appropriate. 
107.29     (b) In the next edition of Minnesota Statutes, the revisor 
107.30  of statutes shall change the headnote of Minnesota Statutes, 
107.31  section 122A.18, subdivision 2b, from "READING SPECIALIST." to 
107.32  "TEACHER OF READING LICENSURE ENDORSEMENT." 
107.33     Sec. 68.  [APPROPRIATION.] 
107.34     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
107.35  indicated in this section are appropriated from the general fund 
107.36  to the Department of Education for the fiscal years designated. 
108.1      Subd. 2.  [VALUE-ADDED ASSESSMENT PROGRAM.] For value-added 
108.2   assessment under Minnesota Statutes, section 120B.362. 
108.3        $250,000     .....     2005 
108.4      The base budget for this program is $1,600,000 for fiscal 
108.5   year 2006 and fiscal year 2007. 
108.6      Subd. 3.  [SCHOOL INNOVATION AND COOPERATIVE PLANNING 
108.7   GRANTS.] For planning grants to service cooperatives, 
108.8   cooperating districts, or cooperating charter schools to improve 
108.9   the delivery and cost-effectiveness of instructional and 
108.10  noninstructional programs and services:  
108.11       $  500,000     .....     2005 
108.12     This is a onetime appropriation.  
108.13     Subd. 4.  [SCHOLARS OF DISTINCTION.] For the scholars of 
108.14  distinction program: 
108.15       $  210,000     .....     2005 
108.16     This is a onetime appropriation.  
108.17     <b>[EFFECTIVE DATE.]</b> Subdivision 4 is effective June 30, 2005. 
108.18     Sec. 69.  [SUNSET.] 
108.19     The amendments to Minnesota Statutes, section 122A.16, 
108.20  paragraphs (b), (c), and (d), are repealed effective June 30, 
108.21  2007. 
108.22     Sec. 70.  [REPEALER.] 
108.23     (a) Minnesota Statutes 2002, sections 124D.41; 124D.42, 
108.24  subdivisions 1, 2, 4, 5, and 7; and 124D.43, are repealed.  
108.25     (b) Minnesota Statutes 2003 Supplement, section 124D.42, 
108.26  subdivision 3, is repealed. 
108.27     (c) Minnesota Statutes 2003 Supplement, section 124D.86, 
108.28  subdivision 5, is repealed for revenue for fiscal year 2005. 
108.29                             ARTICLE 3 
108.30                          SPECIAL PROGRAMS 
108.31     Section 1.  Minnesota Statutes 2003 Supplement, section 
108.32  124D.095, subdivision 4, is amended to read: 
108.33     Subd. 4.  [ON-LINE LEARNING PARAMETERS.] (a) An on-line 
108.34  learning student must receive academic credit for completing the 
108.35  requirements of an on-line learning course or program.  
108.36  Secondary credits granted to an on-line learning student must be 
109.1   counted toward the graduation and credit requirements of the 
109.2   enrolling district.  The enrolling district must apply the same 
109.3   graduation requirements to all students, including on-line 
109.4   learning students, and must continue to provide nonacademic 
109.5   services to on-line learning students.  If a student completes 
109.6   an on-line learning course or program that meets or exceeds a 
109.7   graduation standard or grade progression requirement at the 
109.8   enrolling district, that standard or requirement is met.  The 
109.9   enrolling district must use the same criteria for accepting 
109.10  on-line learning credits or courses as it does for accepting 
109.11  credits or courses for transfer students under section 124D.03, 
109.12  subdivision 9.  The enrolling district may reduce the teacher 
109.13  contact time of an on-line learning student in proportion to the 
109.14  number of on-line learning courses the student takes from an 
109.15  on-line learning provider that is not the enrolling district.  
109.16     (b) An on-line learning student may: 
109.17     (1) enroll during a single school year in a maximum of 12 
109.18  semester-long courses or their equivalent delivered by an 
109.19  on-line learning provider or the enrolling district; 
109.20     (2) complete course work at a grade level that is different 
109.21  from the student's current grade level; and 
109.22     (3) enroll in additional courses with the on-line learning 
109.23  provider under a separate agreement that includes terms for 
109.24  payment of any tuition or course fees.  
109.25     (c) A student with a disability may enroll in an on-line 
109.26  learning course or program if the student's IEP team determines 
109.27  that on-line learning is appropriate education for the student.  
109.28  The student's IEP must then be adapted to reflect the on-line 
109.29  learning option. 
109.30     (d) An on-line learning student has the same access to the 
109.31  computer hardware and education software available in a school 
109.32  as all other students in the enrolling district.  An on-line 
109.33  learning provider must assist an on-line learning student whose 
109.34  family qualifies for the education tax credit under section 
109.35  290.0674 to acquire computer hardware and educational software 
109.36  for on-line learning purposes. 
110.1      (e) An enrolling district may offer on-line learning to its 
110.2   enrolled students.  Such on-line learning does not generate 
110.3   on-line learning funds under this section.  An enrolling 
110.4   district that offers on-line learning only to its enrolled 
110.5   students is not subject to the reporting requirements or review 
110.6   criteria under subdivision 7.  A teacher with a Minnesota 
110.7   license must assemble and deliver instruction to enrolled 
110.8   students receiving on-line learning from an enrolling district.  
110.9   The instruction may include curriculum developed by persons 
110.10  other than a teacher with a Minnesota license. 
110.11     (f) An on-line learning provider that is not the enrolling 
110.12  district is subject to the reporting requirements and review 
110.13  criteria under subdivision 7.  A teacher with a Minnesota 
110.14  license must assemble and deliver instruction to on-line 
110.15  learning students.  The instruction may include curriculum 
110.16  developed by persons other than a teacher with a Minnesota 
110.17  license.  Unless the commissioner grants a waiver, a teacher 
110.18  providing on-line learning instruction must not instruct more 
110.19  than 40 students in any one on-line learning course or program.  
110.20     Sec. 2.  Minnesota Statutes 2002, section 125A.023, 
110.21  subdivision 3, is amended to read: 
110.22     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
110.23  section 125A.027, the following terms have the meanings given 
110.24  them: 
110.25     (a) "Health plan" means: 
110.26     (1) a health plan under section 62Q.01, subdivision 3; 
110.27     (2) a county-based purchasing plan under section 256B.692; 
110.28     (3) a self-insured health plan established by a local 
110.29  government under section 471.617; or 
110.30     (4) self-insured health coverage provided by the state to 
110.31  its employees or retirees. 
110.32     (b) For purposes of this section, "health plan company" 
110.33  means an entity that issues a health plan as defined in 
110.34  paragraph (a). 
110.35     (c) "Individual interagency intervention plan" means a 
110.36  standardized written plan describing those programs or services 
111.1   and the accompanying funding sources available to eligible 
111.2   children with disabilities. 
111.3      (d) "Interagency intervention service system" means a 
111.4   system that coordinates services and programs required in state 
111.5   and federal law to meet the needs of eligible children with 
111.6   disabilities ages three to birth through 21, including: 
111.7      (1) services provided under the following programs or 
111.8   initiatives administered by state or local agencies: 
111.9      (i) the maternal and child health program under title V of 
111.10  the Social Security Act, United States Code, title 42, sections 
111.11  701 to 709; 
111.12     (ii) the Minnesota Children with Special Health Needs 
111.13  program under sections 144.05 and 144.07; 
111.14     (iii) the Individuals with Disabilities Education Act under 
111.15  United States Code, title 20, chapter 33, subchapter II, 
111.16  sections 1411 to 1420, Part B, section 619, and Part C as 
111.17  amended; 
111.18     (iii) (iv) medical assistance under title 42, chapter 7, of 
111.19  the Social Security Act, United States Code, title 42, chapter 
111.20  7, subchapter XIX, section 1396, et seq.; 
111.21     (iv) (v) the developmental disabilities Assistance and Bill 
111.22  of Rights Act, United States Code, title 42, chapter 75, 
111.23  subchapter II, sections 6021 to 6030, Part B services under 
111.24  chapter 256B; 
111.25     (v) (vi) the Head Start Act, United States Code, title 42, 
111.26  chapter 105, subchapter II, sections 9831 to 9852 under title 
111.27  42, chapter 105, of the Social Security Act; 
111.28     (vi) (vii) vocational rehabilitation services provided 
111.29  under chapter chapters 248 and 268A and the Rehabilitation Act 
111.30  of 1973; 
111.31     (vii) (viii) Juvenile Court Act services provided under 
111.32  sections 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 
111.33  to 260C.451; 
111.34     (viii) the children's mental health collaboratives under 
111.35  section 245.493; 
111.36     (ix) the family service collaboratives under section 
112.1   124D.23; 
112.2      (x) the family community support plan under section 
112.3   245.4881, subdivision 4; 
112.4      (xi) the MinnesotaCare program under chapter 256L; 
112.5      (xii) (ix) Minnesota Comprehensive Children's Mental Health 
112.6   Act under section 245.487; 
112.7      (x) the community health services grants under chapter 
112.8   145 sections 145.88 to 145.9266; 
112.9      (xiii) the Community Social Services Act funding under the 
112.10  Social Security Act, United States Code, title 42, sections 1397 
112.11  to 1397f; and 
112.12     (xiv) the community transition interagency committees under 
112.13  section 125A.22; 
112.14     (xi) the Local Public Health Act under chapter 145A; and 
112.15     (xii) the Children and Community Services Act, sections 
112.16  256M.60 to 256M.80; 
112.17     (2) service provision and funding that can be coordinated 
112.18  through: 
112.19     (i) the children's mental health collaborative under 
112.20  section 245.493; 
112.21     (ii) the family services collaborative under section 
112.22  124D.23; 
112.23     (iii) the community transition interagency committees under 
112.24  section 125A.22; and 
112.25     (iv) the interagency early intervention committees under 
112.26  section 125A.259; 
112.27     (3) financial and other funding programs to be coordinated 
112.28  including medical assistance under title 42, chapter 7, of the 
112.29  Social Security Act, the MinnesotaCare program under chapter 
112.30  256L, Supplemental Social Security Income, Developmental 
112.31  Disabilities Assistance, and any other employment-related 
112.32  activities associated with the Social Security Administration; 
112.33  and services provided under a health plan in conformity with an 
112.34  individual family service plan or an individual education 
112.35  plan or an individual interagency intervention plan; and 
112.36     (3) (4) additional appropriate services that local agencies 
113.1   and counties provide on an individual need basis upon 
113.2   determining eligibility and receiving a request from the 
113.3   interagency early intervention committee and the child's parent. 
113.4      (e) "Children with disabilities" has the meaning given in 
113.5   section 125A.02. 
113.6      (f) A "standardized written plan" means those individual 
113.7   services or programs available through the interagency 
113.8   intervention service system to an eligible child other than the 
113.9   services or programs described in the child's individual 
113.10  education plan or the child's individual family service plan. 
113.11     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
113.12  125A.023, subdivision 4, is amended to read: 
113.13     Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
113.14  shall convene a 19-member an interagency committee to develop 
113.15  and implement a coordinated, multidisciplinary, interagency 
113.16  intervention service system for children ages three to birth 
113.17  through 21 with disabilities.  The commissioners of commerce, 
113.18  education, health, human rights, human services, economic 
113.19  security, and corrections employment and economic development 
113.20  shall each appoint two committee members from their departments; 
113.21  the commissioners of corrections, human rights, and commerce 
113.22  shall each appoint one member from their departments; the 
113.23  Association of Minnesota Counties shall appoint two county 
113.24  representatives, one of whom must be an elected official, as 
113.25  committee members; and the Minnesota School Boards Association, 
113.26  the Minnesota Administrators of Special Education, and the 
113.27  School Nurse Association of Minnesota shall each appoint one 
113.28  committee member; the governor shall appoint two parent 
113.29  representatives of a child who is eligible for special 
113.30  education.  The committee shall select a chair from among its 
113.31  members. 
113.32     (b) The committee shall: 
113.33     (1) identify and assist in removing state and federal 
113.34  barriers to local coordination of services provided to children 
113.35  with disabilities; 
113.36     (2) identify adequate, equitable, and flexible funding 
114.1   sources to streamline these services; 
114.2      (3) develop guidelines for implementing policies that 
114.3   ensure a comprehensive and coordinated system of all state and 
114.4   local agency services, including multidisciplinary assessment 
114.5   practices for children with disabilities ages three to 21; 
114.6      (4) develop, consistent with federal law, a standardized 
114.7   written plan for providing services to a child with 
114.8   disabilities; 
114.9      (5) identify how current systems for dispute resolution can 
114.10  be coordinated and develop guidelines for that coordination; 
114.11     (6) develop an evaluation process to measure the success of 
114.12  state and local interagency efforts in improving the quality and 
114.13  coordination of services to children with disabilities ages 
114.14  three to 21; 
114.15     (7) develop guidelines to assist the governing boards of 
114.16  the interagency early intervention committees in carrying out 
114.17  the duties assigned in section 125A.027, subdivision 1, 
114.18  paragraph (b); and 
114.19     (8) carry out other duties necessary to develop and 
114.20  implement within communities a coordinated, multidisciplinary, 
114.21  interagency intervention service system for children with 
114.22  disabilities. 
114.23     (c) The committee shall consult on an ongoing basis with 
114.24  the state Education Advisory Committee for Special Education and 
114.25  the governor's Interagency Coordinating Council in carrying out 
114.26  its duties under this section, including assisting the governing 
114.27  boards of the interagency early intervention committees. 
114.28     Sec. 4.  Minnesota Statutes 2002, section 125A.03, is 
114.29  amended to read: 
114.30     125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
114.31  DISABILITY.] 
114.32     (a) As defined in paragraph (b), every district must 
114.33  provide special instruction and services, either within the 
114.34  district or in another district, for all children with a 
114.35  disability, including providing required services under the Code 
114.36  of Federal Regulations, title 34, section 300.121, paragraph 
115.1   (d), to those children suspended or expelled from school for 
115.2   more than ten school days in that school year, who are residents 
115.3   of the district and who are disabled as set forth in section 
115.4   125A.02.  For purposes of state and federal special education 
115.5   laws, the phrase "special instruction and services" in the state 
115.6   education code means a free and appropriate public education 
115.7   provided to an eligible child with disabilities and includes 
115.8   special education and related services defined in the 
115.9   Individuals with Disabilities Education Act, subpart A, section 
115.10  300.24.  
115.11     (b) Notwithstanding any age limits in laws to the contrary, 
115.12  special instruction and services must be provided from birth 
115.13  until July 1 after the child with a disability becomes 21 years 
115.14  old but shall not extend beyond secondary school or its 
115.15  equivalent, except as provided in section 124D.68, subdivision 
115.16  2.  Local health, education, and social service agencies must 
115.17  refer children under age five who are known to need or suspected 
115.18  of needing special instruction and services to the school 
115.19  district.  Districts with less than the minimum number of 
115.20  eligible children with a disability as determined by the 
115.21  commissioner must cooperate with other districts to maintain a 
115.22  full range of programs for education and services for children 
115.23  with a disability.  This section does not alter the compulsory 
115.24  attendance requirements of section 120A.22. 
115.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
115.26  following final enactment.  
115.27     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
115.28  125A.79, subdivision 1, is amended to read: 
115.29     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
115.30  section, the definitions in this subdivision apply. 
115.31     (a) "Unreimbursed special education cost" means the sum of 
115.32  the following: 
115.33     (1) expenditures for teachers' salaries, contracted 
115.34  services, supplies, equipment, and transportation services 
115.35  eligible for revenue under section 125A.76; plus 
115.36     (2) expenditures for tuition bills received under sections 
116.1   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
116.2   under section 125A.76, subdivision 2; minus 
116.3      (3) revenue for teachers' salaries, contracted services, 
116.4   supplies, and equipment under section 125A.76; minus 
116.5      (4) tuition receipts under sections 125A.03 to 125A.24 and 
116.6   125A.65 for services eligible for revenue under section 125A.76, 
116.7   subdivision 2. 
116.8      (b) "General revenue" means for fiscal year 1996, the sum 
116.9   of the general education revenue according to section 126C.10, 
116.10  subdivision 1, as adjusted according to section 127A.47, 
116.11  subdivision 7, plus the total referendum revenue according to 
116.12  section 126C.17, subdivision 4.  For fiscal years 1997 and 
116.13  later, "General revenue" means the sum of the general education 
116.14  revenue according to section 126C.10, subdivision 1, as adjusted 
116.15  according to section 127A.47, subdivisions 7 and 8, plus the 
116.16  total referendum revenue minus transportation sparsity revenue 
116.17  minus total operating capital revenue.  
116.18     (c) "Average daily membership" has the meaning given it in 
116.19  section 126C.05. 
116.20     (d) "Program growth factor" means 1.02 for fiscal year 
116.21  2003, and 1.0 for fiscal year 2004 and later. 
116.22     Sec. 6.  Minnesota Statutes 2002, section 125A.79, 
116.23  subdivision 5, is amended to read: 
116.24     Subd. 5.  [INITIAL EXCESS COST AID; FISCAL YEARS 2003 AND 
116.25  2004.] For fiscal years 2002 2003 and later 2004, a district's 
116.26  initial excess cost aid equals the greatest of: 
116.27     (1) 75 percent of the difference between (i) the district's 
116.28  unreimbursed special education cost and (ii) 4.36 percent of the 
116.29  district's general revenue; 
116.30     (2) 70 percent of the difference between (i) the increase 
116.31  in the district's unreimbursed special education cost between 
116.32  the base year as defined in section 125A.76, subdivision 1, and 
116.33  the current year and (ii) 1.6 percent of the district's general 
116.34  revenue; or 
116.35     (3) zero. 
116.36     Sec. 7.  Minnesota Statutes 2002, section 125A.79, is 
117.1   amended by adding a subdivision to read: 
117.2      Subd. 5a.  [INITIAL EXCESS COST AID.] For fiscal years 2005 
117.3   and later, a district's initial excess cost aid equals the 
117.4   greater of: 
117.5      (1) 75 percent of the difference between (i) the district's 
117.6   unreimbursed special education cost for the previous fiscal 
117.7   year, and (ii) the sum of 4.36 percent of the district's general 
117.8   revenue for the previous fiscal year and the district's 
117.9   supplemental excess cost aid for the previous fiscal year; or 
117.10     (2) zero. 
117.11     Sec. 8.  Minnesota Statutes 2002, section 125A.79, is 
117.12  amended by adding a subdivision to read: 
117.13     Subd. 5b.  [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 
117.14  years 2005 and later, a district's supplemental excess cost aid 
117.15  equals the greater of: 
117.16     (1) 75 percent of the difference between (i) the increase 
117.17  in the district's unreimbursed special education excess cost 
117.18  between the previous fiscal year and the current fiscal year, 
117.19  and (ii) $80 times the district's adjusted marginal cost pupil 
117.20  units for the current fiscal year; or 
117.21     (2) zero. 
117.22     (b) The state total supplemental excess cost aid for any 
117.23  fiscal year must not exceed $2,000,000.  If the state total 
117.24  supplemental excess cost aid according to paragraph (a) exceeds 
117.25  $2,000,000, the supplemental excess cost aid for each district 
117.26  shall be reduced proportionately so that the state total equals 
117.27  $2,000,000. 
117.28     Sec. 9.  Minnesota Statutes 2002, section 125A.79, 
117.29  subdivision 7, is amended to read: 
117.30     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 
117.31  A district's special education excess cost aid for fiscal year 
117.32  2002 2003 and later 2004 equals the state total special 
117.33  education excess cost aid times the ratio of the district's 
117.34  initial excess cost aid to the state total initial excess cost 
117.35  aid. 
117.36     (b) A district's special education excess cost aid for 
118.1   fiscal year 2005 and later equals the sum of: 
118.2      (i) the product of the difference between the state total 
118.3   special education excess cost aid and the state total 
118.4   supplemental excess cost aid times the ratio of the district's 
118.5   initial excess cost aid to the state total initial excess cost 
118.6   aid; and 
118.7      (ii) the district's supplemental excess cost aid according 
118.8   to subdivision 5b. 
118.9      Sec. 10.  Laws 2003, First Special Session chapter 9, 
118.10  article 3, section 19, is amended to read: 
118.11     Sec. 19.  [DEPARTMENT RESPONSIBILITY.] 
118.12     By January 1 June 1, 2004, the commissioner of education 
118.13  must adopt rules that: 
118.14     (1) establish criteria for selecting hearing officers, the 
118.15  standards of conduct to which a hearing officer must adhere, and 
118.16  a process to evaluate the hearing system; 
118.17     (2) ensure that appropriately trained and knowledgeable 
118.18  persons conduct due process hearings in compliance with federal 
118.19  law; and 
118.20     (3) create standards for expedited due process hearings 
118.21  under federal law. 
118.22     By March 1, 2004, the commissioner of education must 
118.23  develop and make available a notice for participants in 
118.24  state-provided dispute resolution processes that informs 
118.25  participants of their rights concerning dispute resolution. 
118.26     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
118.27  July 1, 2003. 
118.28                             ARTICLE 4 
118.29                             FACILITIES 
118.30     Section 1.  [123B.515] [CHROMATED COPPER ARSENATE TREATED 
118.31  LUMBER PROHIBITED.] 
118.32     As of the effective date of this section, a school district 
118.33  and a charter school are prohibited from purchasing chromated 
118.34  copper arsenate treated lumber, or products made of chromated 
118.35  copper arsenate treated lumber, for use as playground equipment, 
118.36  benches, picnic tables, walkways, fences, or landscape timbers. 
119.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
119.2   following final enactment. 
119.3      Sec. 2.  Minnesota Statutes 2002, section 123B.53, 
119.4   subdivision 6, is amended to read: 
119.5      Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] (a) A district's 
119.6   debt service equalization aid is the sum of the district's first 
119.7   tier debt service equalization aid and the district's second 
119.8   tier debt service equalization aid. 
119.9      (b) A district's first tier debt service equalization aid 
119.10  equals the difference between the district's first tier debt 
119.11  service equalization revenue and the district's first tier 
119.12  equalized debt service levy. 
119.13     (c) A district's second tier debt service equalization aid 
119.14  equals the difference between the district's second tier debt 
119.15  service equalization revenue and the district's second tier 
119.16  equalized debt service levy. 
119.17     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
119.18  123B.54, is amended to read: 
119.19     123B.54 [DEBT SERVICE APPROPRIATION.] 
119.20     (a) $25,987,000 in fiscal year 2002, $29,941,000 in fiscal 
119.21  year 2003, $40,075,000 $35,598,000 in fiscal year 2004, and 
119.22  $39,774,000 $31,220,000 in fiscal years year 2005, $27,830,000 
119.23  in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 
119.24  later are appropriated from the general fund to the commissioner 
119.25  of education for payment of debt service equalization aid under 
119.26  section 123B.53.  
119.27     (b) The appropriations in paragraph (a) must be reduced by 
119.28  the amount of any money specifically appropriated for the same 
119.29  purpose in any year from any state fund. 
119.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
119.31  following final enactment.  
119.32     Sec. 4.  Minnesota Statutes 2002, section 123B.71, 
119.33  subdivision 9, is amended to read: 
119.34     Subd. 9.  [INFORMATION REQUIRED.] A school board proposing 
119.35  to construct a facility described in subdivision 8 shall submit 
119.36  to the commissioner a proposal containing information including 
120.1   at least the following: 
120.2      (1) the geographic area and population to be served, 
120.3   preschool through grade 12 student enrollments for the past five 
120.4   years, and student enrollment projections for the next five 
120.5   years; 
120.6      (2) a list of existing facilities by year constructed, 
120.7   their uses, and an assessment of the extent to which alternate 
120.8   facilities are available within the school district boundaries 
120.9   and in adjacent school districts; 
120.10     (3) a list of the specific deficiencies of the facility 
120.11  that demonstrate the need for a new or renovated facility to be 
120.12  provided, and a list of the specific benefits that the new or 
120.13  renovated facility will provide to the students, teachers, and 
120.14  community users served by the facility; 
120.15     (4) the relationship of the project to any priorities 
120.16  established by the school district, educational cooperatives 
120.17  that provide support services, or other public bodies in the 
120.18  service area; 
120.19     (5) a specification of how the project will increase 
120.20  community use of the facility and whether and how the project 
120.21  will increase collaboration with other governmental or nonprofit 
120.22  entities; 
120.23     (6) a description of the project, including the 
120.24  specification of site and outdoor space acreage and square 
120.25  footage allocations for classrooms, laboratories, and support 
120.26  spaces; estimated expenditures for the major portions of the 
120.27  project; and the dates the project will begin and be completed; 
120.28     (7) a specification of the source of financing the project; 
120.29  the scheduled date for a bond issue or school board action; a 
120.30  schedule of payments, including debt service equalization aid; 
120.31  and the effect of a bond issue on local property taxes by the 
120.32  property class and valuation; 
120.33     (8) an analysis of how the proposed new or remodeled 
120.34  facility will affect school district operational or 
120.35  administrative staffing costs, and how the district's operating 
120.36  budget will cover any increased operational or administrative 
121.1   staffing costs; 
121.2      (9) a description of the consultation with local or state 
121.3   road and transportation officials on school site access and 
121.4   safety issues, and the ways that the project will address those 
121.5   issues; 
121.6      (10) a description of how indoor air quality issues have 
121.7   been considered and a certification that the architects and 
121.8   engineers designing the facility will have professional 
121.9   liability insurance; 
121.10     (11) as required under section 123B.72, for buildings 
121.11  coming into service after July 1, 2002, a certification that the 
121.12  plans and designs for the extensively renovated or new 
121.13  facility's heating, ventilation, and air conditioning systems 
121.14  will meet or exceed code standards; will provide for the 
121.15  monitoring of outdoor airflow and total airflow of ventilation 
121.16  systems; and will provide an indoor air quality filtration 
121.17  system that meets ASHRAE standard 52.1; 
121.18     (12) a specification of any desegregation requirements that 
121.19  cannot be met by any other reasonable means; and 
121.20     (13) a specification, if applicable, of how the facility 
121.21  will utilize environmentally sustainable school facility design 
121.22  concepts; and 
121.23     (14) a description, if applicable, of how the facility will 
121.24  address classroom acoustics, and whether the facility will meet 
121.25  the American National Standard Institute's guidelines for 
121.26  classroom acoustics. 
121.27     <b>[EFFECTIVE DATE.]</b> This section is effective for proposals 
121.28  submitted on or after July 1, 2004. 
121.29     Sec. 5.  [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 
121.30  EQUITY AID.] 
121.31     Subdivision 1.  [COSTS TO BE SUBMITTED.] (a) A district or 
121.32  charter school shall submit its actual 
121.33  telecommunications/Internet access costs for the previous fiscal 
121.34  year, adjusted for any e-rate revenue received, to the 
121.35  department by August 15 of each year as prescribed by the 
121.36  commissioner.  Costs eligible for reimbursement under this 
122.1   program are limited to the following: 
122.2      (1) ongoing or recurring telecommunications/Internet access 
122.3   costs associated with Internet access, data lines, and video 
122.4   links providing: 
122.5      (i) the equivalent of one data line, video link, or 
122.6   integrated data/video link that relies on a transport medium 
122.7   that operates at a speed of 1.544 megabytes per second (T1) for 
122.8   each elementary school, middle school, or high school under 
122.9   section 120A.05, subdivisions 9, 11, and 13, including the 
122.10  recurring telecommunications line lease costs and ongoing 
122.11  Internet access service fees; or 
122.12     (ii) the equivalent of one data line or video circuit, or 
122.13  integrated data/video link that relies on a transport medium 
122.14  that operates at a minimum speed of 1.544 megabytes per second 
122.15  (T1) for each district, including recurring telecommunications 
122.16  line lease costs and ongoing Internet access service fees; 
122.17     (2) recurring costs of contractual or vendor-provided 
122.18  maintenance on the school district's wide area network to the 
122.19  point of presence at the school building up to the router, 
122.20  codec, or other service delivery equipment located at the point 
122.21  of presence termination at the school or school district; 
122.22     (3) recurring costs of cooperative, shared arrangements for 
122.23  regional delivery of telecommunications/Internet access between 
122.24  school districts, postsecondary institutions, and public 
122.25  libraries including network gateways, peering points, regional 
122.26  network infrastructure, Internet2 access, and network support, 
122.27  maintenance, and coordination; and 
122.28     (4) service provider installation fees for installation of 
122.29  new telecommunications lines or increased bandwidth. 
122.30     (b) Costs not eligible for reimbursement under this program 
122.31  include: 
122.32     (1) recurring costs of school district staff providing 
122.33  network infrastructure support; 
122.34     (2) recurring costs associated with voice and standard 
122.35  telephone service; 
122.36     (3) costs associated with purchase of network hardware, 
123.1   telephones, computers, or other peripheral equipment needed to 
123.2   deliver telecommunications access to the school or school 
123.3   district; 
123.4      (4) costs associated with laying fiber for 
123.5   telecommunications access; 
123.6      (5) costs associated with wiring school or school district 
123.7   buildings; 
123.8      (6) costs associated with purchase and/or installation of 
123.9   Internet filtering; and 
123.10     (7) costs associated with digital content, including 
123.11  on-line learning or distance learning programming, and 
123.12  information databases. 
123.13     Subd. 2.  [E-RATES.] To be eligible for aid under this 
123.14  section, a district or charter school is required to file an 
123.15  e-rate application either separately or through its 
123.16  telecommunications access cluster and to have a current 
123.17  technology plan on file with the Department of Education.  
123.18  Discounts received on telecommunications expenditures shall be 
123.19  reflected in the costs submitted to the department for aid under 
123.20  this section. 
123.21     Subd. 3.  [REIMBURSEMENT CRITERIA.] The commissioner shall 
123.22  develop criteria for approving costs submitted by school 
123.23  districts and charter schools under subdivision 1. 
123.24     Subd. 4.  [DISTRICT AID.] For fiscal year 2005 and later, a 
123.25  district or charter school's Internet access equity aid equals 
123.26  90 percent of the district or charter school's approved cost for 
123.27  the previous fiscal year according to subdivision 1 exceeding 
123.28  $15 times the district's adjusted marginal cost pupil units for 
123.29  the previous fiscal year. 
123.30     Subd. 5.  [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 
123.31  NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 
123.32  formal request by or on behalf of a nonpublic school, not 
123.33  including home schools, located in that district or area, 
123.34  ongoing or recurring telecommunications access services to the 
123.35  nonpublic school either through existing district providers or 
123.36  through separate providers. 
124.1      (b) The amount of district aid for telecommunications 
124.2   access services for each nonpublic school under this subdivision 
124.3   equals the lesser of: 
124.4      (1) 90 percent of the nonpublic school's approved cost for 
124.5   the previous fiscal year according to subdivision 1 exceeding 
124.6   $10 times the number of weighted pupils enrolled at the 
124.7   nonpublic school as of October 1 of the previous school year; or 
124.8      (2) the product of the district's aid per adjusted marginal 
124.9   cost pupil unit according to subdivision 4 times the number of 
124.10  weighted pupils enrolled at the nonpublic school as of October 1 
124.11  of the previous school year. 
124.12     (c) For purposes of this subdivision, nonpublic school 
124.13  pupils shall be weighted by grade level using the weighing 
124.14  factors defined in section 126C.05, subdivision 1. 
124.15     (d) Each year, a district providing services under 
124.16  paragraph (a) may claim up to five percent of the aid determined 
124.17  in paragraph (b) for costs of administering this subdivision.  
124.18  No district may expend an amount for these telecommunications 
124.19  access services which exceeds the amount allocated under this 
124.20  subdivision.  The nonpublic school is responsible for the 
124.21  Internet access costs not covered by this section. 
124.22     (e) At the request of a nonpublic school, districts may 
124.23  allocate the amount determined in paragraph (b) directly to the 
124.24  nonpublic school to pay for or offset the nonpublic school's 
124.25  costs for telecommunications access services.  However, the 
124.26  amount allocated directly to the nonpublic school may not exceed 
124.27  the actual amount of the school's ongoing or recurring 
124.28  telecommunications access costs. 
124.29     Subd. 6.  [SEVERABILITY.] If any portion of this section is 
124.30  found by a court to be unconstitutional, the remaining portions 
124.31  of the section shall remain in effect. 
124.32     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
124.33  fiscal year 2005.  
124.34     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
124.35  126C.40, subdivision 1, is amended to read: 
124.36     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When an 
125.1   independent or a special school district or a group of 
125.2   independent or special school districts finds it economically 
125.3   advantageous to rent or lease a building or land for any 
125.4   instructional purposes or for school storage or furniture 
125.5   repair, and it determines that the operating capital revenue 
125.6   authorized under section 126C.10, subdivision 13, is 
125.7   insufficient for this purpose, it may apply to the commissioner 
125.8   for permission to make an additional capital expenditure levy 
125.9   for this purpose.  An application for permission to levy under 
125.10  this subdivision must contain financial justification for the 
125.11  proposed levy, the terms and conditions of the proposed lease, 
125.12  and a description of the space to be leased and its proposed use.
125.13     (b) The criteria for approval of applications to levy under 
125.14  this subdivision must include:  the reasonableness of the price, 
125.15  the appropriateness of the space to the proposed activity, the 
125.16  feasibility of transporting pupils to the leased building or 
125.17  land, conformity of the lease to the laws and rules of the state 
125.18  of Minnesota, and the appropriateness of the proposed lease to 
125.19  the space needs and the financial condition of the district.  
125.20  The commissioner must not authorize a levy under this 
125.21  subdivision in an amount greater than 90 percent of the cost to 
125.22  the district of renting or leasing a building or land for 
125.23  approved purposes.  The proceeds of this levy must not be used 
125.24  for custodial or other maintenance services.  A district may not 
125.25  levy under this subdivision for the purpose of leasing or 
125.26  renting a district-owned building or site to itself. 
125.27     (c) For agreements finalized after July 1, 1997, a district 
125.28  may not levy under this subdivision for the purpose of leasing:  
125.29  (1) a newly constructed building used primarily for regular 
125.30  kindergarten, elementary, or secondary instruction; or (2) a 
125.31  newly constructed building addition or additions used primarily 
125.32  for regular kindergarten, elementary, or secondary instruction 
125.33  that contains more than 20 percent of the square footage of the 
125.34  previously existing building. 
125.35     (d) Notwithstanding paragraph (b), a district may levy 
125.36  under this subdivision for the purpose of leasing or renting a 
126.1   district-owned building or site to itself only if the amount is 
126.2   needed by the district to make payments required by a lease 
126.3   purchase agreement, installment purchase agreement, or other 
126.4   deferred payments agreement authorized by law, and the levy 
126.5   meets the requirements of paragraph (c).  A levy authorized for 
126.6   a district by the commissioner under this paragraph may be in 
126.7   the amount needed by the district to make payments required by a 
126.8   lease purchase agreement, installment purchase agreement, or 
126.9   other deferred payments agreement authorized by law, provided 
126.10  that any agreement include a provision giving the school 
126.11  districts the right to terminate the agreement annually without 
126.12  penalty. 
126.13     (e) The total levy under this subdivision for a district 
126.14  for any year must not exceed $90 $100 times the resident pupil 
126.15  units for the fiscal year to which the levy is attributable. 
126.16     (f) For agreements for which a review and comment have been 
126.17  submitted to the Department of Education after April 1, 1998, 
126.18  the term "instructional purpose" as used in this subdivision 
126.19  excludes expenditures on stadiums. 
126.20     (g) The commissioner of education may authorize a school 
126.21  district to exceed the limit in paragraph (e) if the school 
126.22  district petitions the commissioner for approval.  The 
126.23  commissioner shall grant approval to a school district to exceed 
126.24  the limit in paragraph (e) for not more than five years if the 
126.25  district meets the following criteria: 
126.26     (1) the school district has been experiencing pupil 
126.27  enrollment growth in the preceding five years; 
126.28     (2) the purpose of the increased levy is in the long-term 
126.29  public interest; 
126.30     (3) the purpose of the increased levy promotes colocation 
126.31  of government services; and 
126.32     (4) the purpose of the increased levy is in the long-term 
126.33  interest of the district by avoiding over construction of school 
126.34  facilities. 
126.35     (h) A school district that is a member of an intermediate 
126.36  school district may include in its authority under this section 
127.1   90 percent of the costs associated with leases of administrative 
127.2   and classroom space for intermediate school district programs.  
127.3   This authority must not exceed $22.50 $25 times the adjusted 
127.4   marginal cost pupil units of the member districts.  This 
127.5   authority is in addition to any other authority authorized under 
127.6   this section. 
127.7      (i) In addition to the allowable capital levies in 
127.8   paragraph (a), a district that is a member of the "Technology 
127.9   and Information Education Systems" data processing joint board, 
127.10  that finds it economically advantageous to enter into a lease 
127.11  purchase agreement for a building for a group of school 
127.12  districts or special school districts for staff development 
127.13  purposes, may levy for its portion of lease costs attributed to 
127.14  the district within the total levy limit in paragraph (e). 
127.15     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
127.16  payable in 2005.  
127.17     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
127.18  126C.63, subdivision 8, is amended to read: 
127.19     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 
127.20  effort debt service levy" means the lesser of: 
127.21     (1) a levy in whichever of the following amounts is 
127.22  applicable: 
127.23     (i) in any district receiving a debt service loan for a 
127.24  debt service levy payable in 2002 and thereafter, or granted a 
127.25  capital loan after January 1, 2002, a levy in total dollar 
127.26  amount computed at a rate of 40 percent of adjusted net tax 
127.27  capacity for taxes payable in 2002 and thereafter; 
127.28     (ii) in any district receiving a debt service loan for a 
127.29  debt service levy payable in 2001 or earlier, or granted a 
127.30  capital loan before January 2, 2001, a levy in a total dollar 
127.31  amount computed at a rate of 32 28 percent of adjusted net tax 
127.32  capacity for taxes payable in 2002 and thereafter; or 
127.33     (2) a levy in any district for which a capital loan was 
127.34  approved prior to August 1, 1981, a levy in a total dollar 
127.35  amount equal to the sum of the amount of the required debt 
127.36  service levy and an amount which when levied annually will in 
128.1   the opinion of the commissioner be sufficient to retire the 
128.2   remaining interest and principal on any outstanding loans from 
128.3   the state within 30 years of the original date when the capital 
128.4   loan was granted.  
128.5      (b) The board in any district affected by the provisions of 
128.6   paragraph (a), clause (2), may elect instead to determine the 
128.7   amount of its levy according to the provisions of paragraph (a), 
128.8   clause (1).  If a district's capital loan is not paid within 30 
128.9   years because it elects to determine the amount of its levy 
128.10  according to the provisions of paragraph (a), clause (2), the 
128.11  liability of the district for the amount of the difference 
128.12  between the amount it levied under paragraph (a), clause (2), 
128.13  and the amount it would have levied under paragraph (a), clause 
128.14  (1), and for interest on the amount of that difference, must not 
128.15  be satisfied and discharged pursuant to Minnesota Statutes 1988, 
128.16  or an earlier edition of Minnesota Statutes if applicable, 
128.17  section 124.43, subdivision 4. 
128.18     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
128.19  payable in 2005. 
128.20     Sec. 8.  Minnesota Statutes 2002, section 127A.45, 
128.21  subdivision 11, is amended to read: 
128.22     Subd. 11.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
128.23  hundred percent of the aid for the previous fiscal year must be 
128.24  paid in the current year for the following aids:  
128.25  telecommunications/Internet access equity aid according to 
128.26  section 125B.26, special education special pupil aid according 
128.27  to section 125A.75, subdivision 3, aid for litigation costs 
128.28  according to section 125A.75, subdivision 8, aid for 
128.29  court-placed special education expenses according to section 
128.30  125A.79, subdivision 4, and aid for special education 
128.31  out-of-state tuition according to section 125A.79, subdivision 8.
128.32     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
128.33  475.61, subdivision 4, is amended to read: 
128.34     Subd. 4.  [SURPLUS FUNDS.] (a) All such taxes shall be 
128.35  collected and remitted to the municipality by the county 
128.36  treasurer as other taxes are collected and remitted, and shall 
129.1   be used only for payment of the obligations on account of which 
129.2   levied or to repay advances from other funds used for such 
129.3   payments, except that any surplus remaining in the debt service 
129.4   fund when the obligations and interest thereon are paid may be 
129.5   appropriated to any other general purpose by the municipality.  
129.6   However, the amount of any surplus remaining in the debt service 
129.7   fund of a school district when the obligations and interest 
129.8   thereon are paid shall be used to reduce the general fund levy 
129.9   authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 
129.10  and the state aids authorized pursuant to chapters 122A, 123A, 
129.11  123B, 124D, 125A, 126C, and 127A. 
129.12     (b) If the district qualified for second tier debt service 
129.13  equalization aid in the last year that it qualified for debt 
129.14  service equalization aid, the reduction to state aids equals the 
129.15  lesser of (1) the amount of the surplus times the ratio of the 
129.16  district's second tier debt service equalization aid to the 
129.17  district's second tier debt service equalization revenue for the 
129.18  last year that the district qualified for debt service 
129.19  equalization aid; or (2) the district's cumulative amount of 
129.20  debt service equalization aid. 
129.21     (c) If the district did not qualify for second tier debt 
129.22  service equalization aid in the last year that it qualified for 
129.23  debt service equalization aid, the reduction to state aids 
129.24  equals the lesser of (1) the amount of the surplus times the 
129.25  ratio of the district's debt service equalization aid to the 
129.26  district's debt service equalization revenue for the last year 
129.27  that the district qualified for debt service equalization aid; 
129.28  or (2) the district's cumulative amount of debt service 
129.29  equalization aid.  
129.30     (c) (d) The reduction to the general fund levy equals the 
129.31  total amount of the surplus minus the reduction to state aids. 
129.32     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
129.33  fiscal year 2005.  
129.34     Sec. 10.  Laws 2003, First Special Session chapter 9, 
129.35  article 4, section 29, is amended to read: 
129.36     Sec. 29.  [GARAGE LEASE LEVY; SARTELL.] 
130.1      For taxes payable in 2004, 2005, and 2006, and 2007, 
130.2   independent school district No. 740 748, Sartell, may levy up to 
130.3   $107,000 each year for the purpose of leasing a school bus 
130.4   storage facility.  The department of education shall include 
130.5   this levy in the calculation of eligible building lease levy 
130.6   under Minnesota Statutes, section 126C.40, subdivision 1.  This 
130.7   levy shall not allow the district to exceed the $100 per 
130.8   resident marginal cost pupil unit cap in that section.  The 
130.9   district is eligible to make this levy only if it sells its 
130.10  current school bus storage site to the city of Sartell and the 
130.11  district may not use this levy as part of a lease purchase 
130.12  agreement to replace its current school bus storage facility. 
130.13     Sec. 11.  [LEASE LEVY; MOUNDS VIEW SCHOOL DISTRICT.] 
130.14     Notwithstanding the lease levy restrictions in Minnesota 
130.15  Statutes, section 126C.40, subdivision 1, Independent School 
130.16  District No. 621, Mounds View, may levy up to $200,000 per year 
130.17  for four years for the purpose of making its payments to Ramsey 
130.18  County for the school district's portion of the Ramsey County 
130.19  maintenance facility located in Arden Hills. 
130.20     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
130.21  payable in 2005. 
130.22     Sec. 12.  [LEVY; GLENCOE-SILVER LAKE.] 
130.23     For taxes payable in 2005 only, Independent School District 
130.24  No. 2859, Glencoe-Silver Lake, may levy an amount up to $64,000 
130.25  for recovering the cost of replacing a gymnasium floor at 
130.26  Lakeside Elementary School resulting from storm damage. 
130.27     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
130.28  payable in 2005. 
130.29     Sec. 13.  [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 
130.30  FORKS.] 
130.31     Notwithstanding the time limits established in Minnesota 
130.32  Statutes, section 123B.58, subdivision 3, Independent School 
130.33  District No. 595, East Grand Forks, may levy up to $150,000 of 
130.34  its remaining disabled access levy authority over five or fewer 
130.35  years. 
130.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
131.1   following final enactment. 
131.2      Sec. 14.  [APPROPRIATIONS.] 
131.3      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sum 
131.4   indicated in this section is appropriated from the general fund 
131.5   to the Department of Education for the fiscal year designated. 
131.6      Subd. 2.  [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY 
131.7   AID.] For telecommunications/Internet access cost equity aid 
131.8   under Minnesota Statutes, section 125B.26: 
131.9        $4,500,000     .....     2005 
131.10     If the appropriation for fiscal year 2005 is insufficient, 
131.11  the aid for that year shall be prorated among participating 
131.12  schools and districts so as not to exceed the total authorized 
131.13  appropriation for that year.  The budget base for this program 
131.14  for fiscal year 2006 and later is $4,700,000. 
131.15                             ARTICLE 5 
131.16              NUTRITION AND ACCOUNTING; OTHER PROGRAMS
131.17     Section 1.  Minnesota Statutes 2003 Supplement, section 
131.18  16A.152, subdivision 2, is amended to read: 
131.19     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
131.20  basis of a forecast of general fund revenues and expenditures, 
131.21  the commissioner of finance determines that there will be a 
131.22  positive unrestricted budgetary general fund balance at the 
131.23  close of the biennium, the commissioner of finance must allocate 
131.24  money to the following accounts and purposes in priority order: 
131.25     (1) the cash flow account established in subdivision 1 
131.26  until that account reaches $350,000,000; and 
131.27     (2) the budget reserve account established in subdivision 
131.28  1a until that account reaches $653,000,000; 
131.29     (3) the amount necessary to eliminate all or a portion of 
131.30  the property tax revenue recognition shift in section 123B.75, 
131.31  subdivision 5; and 
131.32     (4) the amount necessary to increase the aid payment 
131.33  schedule for school district aids and credits payments in 
131.34  section 127A.45 from 80 percent to not more than 90 percent.  
131.35     (b) The amounts necessary to meet the requirements of this 
131.36  section are appropriated from the general fund within two weeks 
132.1   after the forecast is released or, in the case of transfers 
132.2   under paragraph (a), clauses (3) and (4), as necessary to meet 
132.3   the appropriations schedules otherwise established in statute. 
132.4      (c) To the extent that a positive unrestricted budgetary 
132.5   general fund balance is projected, appropriations under this 
132.6   section must be made before any transfer is made under section 
132.7   16A.1522. 
132.8      (d) The commissioner of finance shall certify the total 
132.9   dollar amount of the reductions under paragraph (a), clauses (3) 
132.10  and (4), to the commissioner of education.  The commissioner of 
132.11  education shall increase the aid payment percentage and reduce 
132.12  the property tax shift percentage by these amounts and apply 
132.13  those reductions to the current fiscal year and thereafter. 
132.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
132.15  following final enactment. 
132.16     Sec. 2.  Minnesota Statutes 2002, section 123A.05, 
132.17  subdivision 2, is amended to read: 
132.18     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
132.19  of an area learning center must reserve revenue in an amount 
132.20  equal to the sum of (1) at least 90 percent of the district 
132.21  average general education revenue per pupil unit minus an amount 
132.22  equal to the product of the formula allowance according to 
132.23  section 126C.10, subdivision 2, times .0485, calculated without 
132.24  basic skills revenue, and transportation sparsity revenue, and 
132.25  the transportation portion of the transition revenue adjustment, 
132.26  times the number of pupil units attending an area learning 
132.27  center program under this section, plus (2) the amount of basic 
132.28  skills revenue generated by pupils attending the area learning 
132.29  center.  The amount of reserved revenue under this subdivision 
132.30  may only be spent on program costs associated with the area 
132.31  learning center.  Compensatory revenue must be allocated 
132.32  according to section 126C.15, subdivision 2.  
132.33     Sec. 3.  Minnesota Statutes 2002, section 123B.75, is 
132.34  amended by adding a subdivision to read: 
132.35     Subd. 4a.  [TACONITE REVENUE.] Taconite revenue received in 
132.36  a calendar year by a school district under section 298.28, 
133.1   subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 
133.2   is fully recognized in the fiscal year in which the February 
133.3   payment falls. 
133.4      <b>[EFFECTIVE DATE.]</b> This section is effective retroactive 
133.5   from July 1, 2003, for school district revenue for fiscal year 
133.6   2004.  
133.7      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
133.8   124D.095, subdivision 7, is amended to read: 
133.9      Subd. 7.  [DEPARTMENT OF EDUCATION.] (a) The department 
133.10  must review and certify on-line learning providers.  The on-line 
133.11  learning courses and programs must be rigorous, aligned with 
133.12  state academic standards, and contribute to grade progression in 
133.13  a single subject.  On-line learning providers must affirm to the 
133.14  commissioner that on-line learning courses have equivalent 
133.15  standards or instruction, curriculum, and assessment 
133.16  requirements as other courses offered to enrolled students.  The 
133.17  on-line learning provider must also demonstrate expectations for 
133.18  actual teacher contact time or other student-to-teacher 
133.19  communication.  Once an on-line learning provider is approved 
133.20  under this paragraph, all of its on-line learning course 
133.21  offerings are eligible for payment under this section unless a 
133.22  course is successfully challenged by an enrolling district or 
133.23  the department under paragraph (b). 
133.24     (b) An enrolling district may challenge the validity of a 
133.25  course offered by an on-line learning provider.  The department 
133.26  must review such challenges based on the certification 
133.27  procedures under paragraph (a).  The department may initiate its 
133.28  own review of the validity of an on-line learning course offered 
133.29  by an on-line learning provider.  
133.30     (c) The department may collect a fee not to exceed $250 for 
133.31  certifying on-line learning providers or $50 per course for 
133.32  reviewing a challenge by an enrolling district.  The fee must be 
133.33  deposited in the state general fund. 
133.34     (d) The department must develop, publish, and maintain a 
133.35  list of approved on-line learning providers and on-line learning 
133.36  courses and programs that it has reviewed and certified. 
134.1      <b>[EFFECTIVE DATE.]</b> This section is effective retroactive 
134.2   from July 1, 2003. 
134.3      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
134.4   124D.11, subdivision 1, is amended to read: 
134.5      Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
134.6   education revenue must be paid to a charter school as though it 
134.7   were a district.  The general education revenue for each 
134.8   adjusted marginal cost pupil unit is the state average general 
134.9   education revenue per pupil unit, plus the referendum 
134.10  equalization aid allowance in the pupil's district of residence, 
134.11  minus an amount equal to the product of the formula allowance 
134.12  according to section 126C.10, subdivision 2, times .0485, 
134.13  calculated without basic skills revenue, extended time revenue, 
134.14  transition revenue, and transportation sparsity revenue, plus 
134.15  basic skills revenue and transition revenue as though the school 
134.16  were a school district.  The general education revenue for each 
134.17  extended time marginal cost pupil unit equals $4,378. 
134.18     (b) Notwithstanding paragraph (a), for charter schools in 
134.19  the first year of operation, general education revenue shall be 
134.20  computed using the number of adjusted pupil units in the current 
134.21  fiscal year.  
134.22     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
134.23  124D.11, subdivision 2, is amended to read: 
134.24     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
134.25  must be paid to a charter school that provides transportation 
134.26  services according to section 124D.10, subdivision 16, according 
134.27  to this subdivision.  Transportation aid shall equal 
134.28  transportation revenue.  
134.29     In addition to the revenue under subdivision 1, a charter 
134.30  school providing transportation services must receive (1) 
134.31  general education aid for each adjusted marginal cost pupil unit 
134.32  equal to the sum of an amount equal to the product of the 
134.33  formula allowance according to section 126C.10, subdivision 2, 
134.34  times .0485, plus the transportation sparsity allowance for the 
134.35  school district in which the charter school is located and (2) 
134.36  general education aid for each extended time marginal cost pupil 
135.1   unit equal to the product of $223 times the school's extended 
135.2   time marginal cost pupil units.  
135.3      Sec. 7.  Minnesota Statutes 2002, section 124D.68, 
135.4   subdivision 9, is amended to read: 
135.5      Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
135.6   attending an eligible program full time under subdivision 3, 
135.7   paragraph (d), the department must pay 90 percent of the 
135.8   district's average general education revenue less basic skills 
135.9   revenue to the eligible program and ten percent of the 
135.10  district's average general education revenue less basic skills 
135.11  revenue to the contracting district within 30 days after the 
135.12  eligible program verifies enrollment using the form provided by 
135.13  the department.  For a pupil attending an eligible program part 
135.14  time, revenue, excluding compensatory revenue, shall be reduced 
135.15  proportionately, according to the amount of time the pupil 
135.16  attends the program, and the payments to the eligible program 
135.17  and the contracting district shall be reduced accordingly.  A 
135.18  pupil for whom payment is made according to this section may not 
135.19  be counted by any district for any purpose other than 
135.20  computation of general education revenue.  If payment is made 
135.21  for a pupil under this subdivision, a district shall not 
135.22  reimburse a program under section 124D.69 for the same 
135.23  pupil.  The basic skills revenue shall be paid generated by 
135.24  pupils attending the eligible program according to section 
135.25  126C.10, subdivision 4, shall be paid to the eligible program. 
135.26     (b) The department must pay up to 100 percent of the 
135.27  revenue to the eligible program if there is an agreement to that 
135.28  effect between the school district and the eligible program. 
135.29     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
135.30  program that provides chemical treatment services to students, 
135.31  the department must pay 100 percent of the revenue to the 
135.32  eligible program. 
135.33     Sec. 8.  Minnesota Statutes 2002, section 124D.69, 
135.34  subdivision 1, is amended to read: 
135.35     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
135.36  program, eligible under section 124D.68, subdivision 3, 
136.1   paragraph (d), or subdivision 4, operated by a private 
136.2   organization that has contracted with a school district to 
136.3   provide educational services for eligible pupils under section 
136.4   124D.68, subdivision 2, the district contracting with the 
136.5   private organization must reimburse the provider an amount equal 
136.6   to the sum of (1) at least 95 percent of the district's average 
136.7   general education less basic skills revenue per pupil unit times 
136.8   the number of pupil units for pupils attending the program. and 
136.9   (2) the amount of basic skills revenue shall be paid generated 
136.10  by pupils attending the program according to section 126C.10, 
136.11  subdivision 4.  Compensatory revenue must be allocated according 
136.12  to section 126C.15, subdivision 2.  For a pupil attending the 
136.13  program part time, the revenue paid to the program, excluding 
136.14  compensatory revenue, must be reduced proportionately, according 
136.15  to the amount of time the pupil attends the program, and revenue 
136.16  paid to the district shall be reduced accordingly.  Pupils for 
136.17  whom a district provides reimbursement may not be counted by the 
136.18  district for any purpose other than computation of general 
136.19  education revenue.  If payment is made to a district or program 
136.20  for a pupil under this section, the department must not make a 
136.21  payment for the same pupil under section 124D.68, subdivision 9. 
136.22     Sec. 9.  Minnesota Statutes 2002, section 126C.21, 
136.23  subdivision 4, is amended to read: 
136.24     Subd. 4.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
136.25  provisions of any other law to the contrary, the adjusted net 
136.26  tax capacity used in calculating general education aid may 
136.27  include only that property that is currently taxable in the 
136.28  district.  
136.29     (2) For districts that received payments have revenue under 
136.30  sections 298.018; 298.225; 298.24 to 298.28, excluding 298.26, 
136.31  and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 
136.32  298.391 to 298.396; and 298.405,; 477A.15; or any law imposing a 
136.33  tax upon severed mineral values; or recognized revenue under 
136.34  section 477A.15; the general education aid must be reduced in 
136.35  the final adjustment payment by (i) the difference between the 
136.36  dollar amount of the payments received revenue recognized 
137.1   pursuant to those sections, or revenue recognized under section 
137.2   477A.15 in for the fiscal year to which the final adjustment is 
137.3   attributable and, less (ii) the amount that was calculated, 
137.4   pursuant to section 126C.48, subdivision 8, as a reduction of 
137.5   the levy attributable to the fiscal year to which the final 
137.6   adjustment is attributable.  If the final adjustment of a 
137.7   district's general education aid for a fiscal year is a negative 
137.8   amount because of this clause subdivision, the next fiscal 
137.9   year's general education aid to that district must be reduced by 
137.10  this negative amount in the following manner:  there must be 
137.11  withheld from each scheduled general education aid payment due 
137.12  the district in such fiscal year, 15 percent of the total 
137.13  negative amount, until the total negative amount has been 
137.14  withheld.  The amount reduced from general education aid 
137.15  pursuant to this clause subdivision must be recognized as reduce 
137.16  revenue in the fiscal year to which the final adjustment payment 
137.17  is attributable. 
137.18     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive 
137.19  from July 1, 2003, for school district revenue for fiscal year 
137.20  2004. 
137.21     Sec. 10.  Minnesota Statutes 2002, section 126C.48, 
137.22  subdivision 8, is amended to read: 
137.23     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
137.24  Reductions in levies pursuant to sections 126C.48, subdivision 
137.25  1, and 273.138, must be made prior to the reductions in clause 
137.26  (2). 
137.27     (2) Notwithstanding any other law to the contrary, 
137.28  districts which received payments that have revenue pursuant to 
137.29  sections 298.018; 298.225; and 298.24 to 298.28, except an 
137.30  amount distributed under section sections 298.26; 298.28, 
137.31  subdivision 4, paragraph (c), clause (ii), and paragraph (d); 
137.32  298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any 
137.33  law imposing a tax upon severed mineral values; or recognized 
137.34  revenue under section 477A.15 must not include a portion of 
137.35  these aids in their permissible levies pursuant to those 
137.36  sections, but instead must reduce the permissible levies 
138.1   authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
138.2   124A, 124D, 125A, and 127A by the greater of the following:  95 
138.3   percent of the previous year's revenue specified under this 
138.4   clause. 
138.5      (a) an amount equal to 50 percent of the total dollar 
138.6   amount of the payments received pursuant to those sections or 
138.7   revenue recognized under section 477A.15 in the previous fiscal 
138.8   year; or 
138.9      (b) an amount equal to the total dollar amount of the 
138.10  payments received pursuant to those sections or revenue 
138.11  recognized under section 477A.15 in the previous fiscal year 
138.12  less the product of the same dollar amount of payments or 
138.13  revenue times five percent. 
138.14     For levy year 2002 only, 77 percent of the amounts 
138.15  distributed under section 298.225 and 298.28, and 100 percent of 
138.16  the amounts distributed under sections 298.018; 298.34 to 
138.17  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
138.18  upon severed mineral values, or recognized revenue under section 
138.19  477A.15, shall be used for purposes of the calculations under 
138.20  this paragraph.  For levy year 2003 only, the levy reductions 
138.21  under this subdivision must be calculated as if section 298.28, 
138.22  subdivision 4, paragraph (f), did not apply for the 2003 
138.23  distribution. 
138.24     (3) The amount of any voter approved referendum, facilities 
138.25  down payment, and debt levies shall not be reduced by more than 
138.26  50 percent under this subdivision.  In administering this 
138.27  paragraph, the commissioner shall first reduce the nonvoter 
138.28  approved levies of a district; then, if any payments, severed 
138.29  mineral value tax revenue or recognized revenue under paragraph 
138.30  (2) remains, the commissioner shall reduce any voter approved 
138.31  referendum levies authorized under section 126C.17; then, if any 
138.32  payments, severed mineral value tax revenue or recognized 
138.33  revenue under paragraph (2) remains, the commissioner shall 
138.34  reduce any voter approved facilities down payment levies 
138.35  authorized under section 123B.63 and then, if any payments, 
138.36  severed mineral value tax revenue or recognized revenue under 
139.1   paragraph (2) remains, the commissioner shall reduce any voter 
139.2   approved debt levies.  
139.3      (4) Before computing the reduction pursuant to this 
139.4   subdivision of the health and safety levy authorized by sections 
139.5   123B.57 and 126C.40, subdivision 5, the commissioner shall 
139.6   ascertain from each affected school district the amount it 
139.7   proposes to levy under each section or subdivision.  The 
139.8   reduction shall be computed on the basis of the amount so 
139.9   ascertained. 
139.10     (5) To the extent the levy reduction calculated under 
139.11  paragraph (2) exceeds the limitation in paragraph (3), an amount 
139.12  equal to the excess must be distributed from the school 
139.13  district's distribution under sections 298.225, 298.28, and 
139.14  477A.15 in the following year to the cities and townships within 
139.15  the school district in the proportion that their taxable net tax 
139.16  capacity within the school district bears to the taxable net tax 
139.17  capacity of the school district for property taxes payable in 
139.18  the year prior to distribution.  No city or township shall 
139.19  receive a distribution greater than its levy for taxes payable 
139.20  in the year prior to distribution.  The commissioner of revenue 
139.21  shall certify the distributions of cities and towns under this 
139.22  paragraph to the county auditor by September 30 of the year 
139.23  preceding distribution.  The county auditor shall reduce the 
139.24  proposed and final levies of cities and towns receiving 
139.25  distributions by the amount of their distribution.  
139.26  Distributions to the cities and towns shall be made at the times 
139.27  provided under section 298.27. 
139.28     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
139.29  payable in 2005.  
139.30     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
139.31  127A.47, subdivision 7, is amended to read: 
139.32     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
139.33  education aid for districts must be adjusted for each pupil 
139.34  attending a nonresident district under sections 123A.05 to 
139.35  123A.08, 124D.03, 124D.06, 124D.08, and 124D.68.  The 
139.36  adjustments must be made according to this subdivision. 
140.1      (a) General education aid paid to a resident district must 
140.2   be reduced by an amount equal to the referendum equalization aid 
140.3   attributable to the pupil in the resident district. 
140.4      (b) General education aid paid to a district serving a 
140.5   pupil in programs listed in this subdivision must be increased 
140.6   by an amount equal to the referendum equalization aid 
140.7   attributable to the pupil in the nonresident district.  
140.8      (c) If the amount of the reduction to be made from the 
140.9   general education aid of the resident district is greater than 
140.10  the amount of general education aid otherwise due the district, 
140.11  the excess reduction must be made from other state aids due the 
140.12  district. 
140.13     (d) The district of residence must pay tuition to a 
140.14  district or an area learning center, operated according to 
140.15  paragraph (e), providing special instruction and services to a 
140.16  pupil with a disability, as defined in section 125A.02, or a 
140.17  pupil, as defined in section 125A.51, who is enrolled in a 
140.18  program listed in this subdivision.  The tuition must be equal 
140.19  to (1) the actual cost of providing special instruction and 
140.20  services to the pupil, including a proportionate amount for debt 
140.21  service and for capital expenditure facilities and equipment, 
140.22  and debt service but not including any amount for 
140.23  transportation, minus (2) the amount of general education 
140.24  revenue and special education aid but not including any amount 
140.25  for transportation, attributable to that pupil, that is received 
140.26  by the district providing special instruction and services. 
140.27     (e) An area learning center operated by a service 
140.28  cooperative, intermediate district, education district, or a 
140.29  joint powers cooperative may elect through the action of the 
140.30  constituent boards to charge the resident district tuition for 
140.31  pupils rather than to have the general education revenue paid to 
140.32  a fiscal agent school district.  Except as provided in paragraph 
140.33  (d), the district of residence must pay tuition equal to at 
140.34  least 90 percent of the district average general education 
140.35  revenue per pupil unit minus an amount equal to the product of 
140.36  the formula allowance according to section 126C.10, subdivision 
141.1   2, times .0485, calculated without basic skills revenue and 
141.2   transportation sparsity revenue, times the number of pupil units 
141.3   for pupils attending the area learning center, plus the amount 
141.4   of compensatory basic skills revenue generated by pupils 
141.5   attending the area learning center. 
141.6      Sec. 12.  Minnesota Statutes 2003 Supplement, section 
141.7   127A.47, subdivision 8, is amended to read: 
141.8      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
141.9   for districts must be adjusted for each pupil attending a 
141.10  charter school under section 124D.10.  The adjustments must be 
141.11  made according to this subdivision. 
141.12     (b) General education aid paid to a district in which a 
141.13  charter school not providing transportation according to section 
141.14  124D.10, subdivision 16, is located must be increased by an 
141.15  amount equal to the sum of: 
141.16     (1) the product of:  (1) (i) the sum of an amount equal to 
141.17  the product of the formula allowance according to section 
141.18  126C.10, subdivision 2, times .0485, plus the transportation 
141.19  sparsity allowance for the district; times (2) (ii) the adjusted 
141.20  marginal cost pupil units attributable to the pupil, plus 
141.21     (2) the product of $223 times the extended time marginal 
141.22  cost pupil units attributable to the pupil. 
141.23     Sec. 13.  [FUND TRANSFER.] 
141.24     Subdivision 1.  [FOLEY.] Notwithstanding Minnesota 
141.25  Statutes, section 123B.79 or 123B.80, on June 30, 2004, 
141.26  Independent School District No. 51, Foley, may permanently 
141.27  transfer up to $190,000 from its reserved operating capital 
141.28  account in its general fund to the undesignated general fund 
141.29  balance. 
141.30     Subd. 2.  [CHOKIO-ALBERTA.] Notwithstanding Minnesota 
141.31  Statutes, section 123B.79 or 123B.80, on June 30, 2004, 
141.32  Independent School District No. 771, Chokio-Alberta, may 
141.33  permanently transfer up to $150,000 from its reserved operating 
141.34  capital account in its general fund to the undesignated fund 
141.35  balance. 
141.36     Subd. 3.  [KIMBALL.] Notwithstanding Minnesota Statutes, 
142.1   section 123B.79 or 123B.80, on June 30, 2004, Independent School 
142.2   District No. 739, Kimball, may permanently transfer up to 
142.3   $150,000 from its reserved bus purchase account, or any 
142.4   successor account, to its undesignated general fund balance. 
142.5      Subd. 4.  [MCLEOD WEST.] Notwithstanding Minnesota 
142.6   Statutes, section 123B.79 or 123B.80, on June 30, 2004, 
142.7   Independent School District No. 2887, McLeod West, may 
142.8   permanently transfer up to $200,000 from its reserved operating 
142.9   capital account in its general fund to the undesignated fund 
142.10  balance. 
142.11     Subd. 5.  [NORTHEAST METRO.] Notwithstanding Minnesota 
142.12  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
142.13  on June 30, 2004, Intermediate School District No. 916, 
142.14  Northeast Metro, may permanently transfer up to $240,000 from 
142.15  its debt redemption fund to its capital account in its general 
142.16  fund without making a levy reduction. 
142.17     Subd. 6.  [BUTTERFIELD.] Notwithstanding Minnesota 
142.18  Statutes, section 123B.79 or 123B.80, for calendar years 2004 
142.19  through 2006, on June 30 of each year, Independent School 
142.20  District No. 836, Butterfield, may permanently transfer up to 
142.21  $50,000 from its reserved operating capital account in its 
142.22  general fund to its undesignated general fund balance and 
142.23  $60,000 from its reserved bus purchase account in its general 
142.24  fund to its undesignated general fund balance.  The total amount 
142.25  transferred for the three-year period must not total more than 
142.26  $50,000 from the reserved operating capital account and $60,000 
142.27  from the reserved bus purchase account. 
142.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
142.29  following final enactment. 
142.30     Sec. 14.  [FORECASTING THE BASE BUDGET FOR EDUCATION.] 
142.31     Notwithstanding Minnesota Statutes, section 16A.11, 
142.32  subdivision 3, paragraph (b), the appropriation base for fiscal 
142.33  years 2006 and 2007 for each forecast program with an 
142.34  appropriation in this act or in Laws 2003, First Special Session 
142.35  chapter 9, is the forecast appropriation level needed to fully 
142.36  fund that program.  
143.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
143.2   following final enactment. 
143.3                              ARTICLE 6 
143.4                              LIBRARIES
143.5      Section 1.  Minnesota Statutes 2002, section 125B.15, is 
143.6   amended to read: 
143.7      125B.15 [INTERNET ACCESS FOR STUDENTS.] 
143.8      (a) Recognizing the difference between school libraries, 
143.9   school computer labs, and school media centers, which serve 
143.10  unique educational purposes, and public libraries, which are 
143.11  designed for public inquiry, all computers at a school site with 
143.12  access to the Internet available for student use must be 
143.13  equipped to restrict, including by use of available with 
143.14  software filtering or blocking technology or other effective 
143.15  methods, all designed to restrict student access to material 
143.16  that is reasonably believed to be obscene or child pornography 
143.17  or material harmful to minors under federal or state law. 
143.18     (b) A school site is not required to purchase filtering 
143.19  technology if the school site would incur more than incidental 
143.20  expense in making the purchase. 
143.21     (c) A school district receiving technology revenue under 
143.22  section 125B.25 must prohibit, including through use of 
143.23  available software filtering or blocking technology or other 
143.24  effective methods, adult access to material that under federal 
143.25  or state law is reasonably believed to be obscene or child 
143.26  pornography.  At the request of an adult, the district may 
143.27  unblock filtered sites for bona fide research or other lawful 
143.28  purpose.  
143.29     (d) (c) A school district, its agents or employees, are 
143.30  immune from liability for failure to comply with this section if 
143.31  they have made a good faith effort to comply with the 
143.32  requirements of this section. 
143.33     (e) (d) "School site" means an education site as defined in 
143.34  section 123B.04, subdivision 1, or charter school under section 
143.35  124D.10. 
143.36     (e) All state funds available to a school site for its 
144.1   school library, school computer lab, and school media center 
144.2   shall be withheld from the school site until all computers with 
144.3   Internet access available for student use at the school site are 
144.4   equipped with software filtering or blocking technology designed 
144.5   to restrict students' access to material that is reasonably 
144.6   believed to be obscene, child pornography, or material harmful 
144.7   to minors under state or federal law.  A school district must 
144.8   formally adopt an Internet safety policy consistent with this 
144.9   section and other applicable law.  
144.10     (f) To ensure that state funds are not withheld under 
144.11  paragraph (e), a school district must send an electronic notice 
144.12  to the department indicating those school sites within the 
144.13  district that have equipped their computers with software 
144.14  filtering or blocking technology, consistent with this section.  
144.15  A district must immediately transmit to the department any 
144.16  additional information related to school sites' compliance with 
144.17  this section. 
144.18     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2005.
144.19     Sec. 2.  Minnesota Statutes 2002, section 134.31, is 
144.20  amended by adding a subdivision to read: 
144.21     Subd. 6.  [ADVISORY COMMITTEE.] The commissioner shall 
144.22  appoint an advisory committee of five members to advise the 
144.23  staff of the Minnesota Library for the Blind and Physically 
144.24  Handicapped on long-range planning and library services.  
144.25  Members shall be people who use the library.  Section 15.059 
144.26  governs this committee except that the committee expires June 
144.27  30, 2007. 
144.28     <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2004. 
144.29     Sec. 3.  Minnesota Statutes 2002, section 134.50, is 
144.30  amended to read: 
144.31     134.50 [INTERNET ACCESS; LIBRARIES.] 
144.32     (a) Recognizing the difference between public libraries, 
144.33  which are designed for public inquiry, and school libraries, 
144.34  school computer labs, and school media centers, which serve 
144.35  unique educational purposes, all public library computers with 
144.36  access to the Internet available for use by children under the 
145.1   age of 17 18 must be equipped to restrict, including by use of 
145.2   available with software filtering or blocking technology or 
145.3   other effective methods, all designed to restrict access by 
145.4   children to material that is reasonably believed to be obscene 
145.5   or child pornography or material harmful to minors under federal 
145.6   or state law. 
145.7      (b) A public library is not required to purchase filtering 
145.8   technology if the public library would incur more than 
145.9   incidental expense in making the purchase. 
145.10     (c) A public library that receives state money must 
145.11  prohibit, including through the use of available software 
145.12  filtering or blocking technology or other effective methods, 
145.13  adult access to material that under federal or state law is 
145.14  reasonably believed to be obscene or child pornography.  At the 
145.15  request of an adult conducting bona fide research or pursuing 
145.16  another lawful purpose, a public library must unblock filtered 
145.17  sites without significant delay and without requiring the adult 
145.18  to explain the request.  A public library may remove a person 
145.19  from the library if the person gains access or attempts to gain 
145.20  access to materials prohibited under this section by 
145.21  intentionally bypassing the filtering technology or other method 
145.22  used by the library. 
145.23     (d) (c) A public library, its agents or employees, are 
145.24  immune from liability for failure to comply with this section if 
145.25  they have made a good faith effort to comply with the 
145.26  requirements of this section. 
145.27     (e) (d) This section does not apply to the libraries of 
145.28  postsecondary institutions. 
145.29     (e) All state funds available to a public library shall be 
145.30  withheld from the public library until all computers with 
145.31  Internet access available for use by children under age 18 are 
145.32  equipped with software filtering or blocking technology designed 
145.33  to restrict children's access to material that is reasonably 
145.34  believed to be obscene, child pornography, or material harmful 
145.35  to minors under federal or state law.  A public library must 
145.36  formally adopt an Internet safety policy consistent with this 
146.1   section and other applicable law.  
146.2      (f) To ensure that state funds are not withheld under 
146.3   paragraph (e), a public library system must send an electronic 
146.4   notice to the education department indicating that the public 
146.5   libraries within the system have equipped their computers with 
146.6   software filtering or blocking technology, consistent with this 
146.7   section.  A public library system must immediately transmit to 
146.8   the department any additional information related to public 
146.9   libraries' compliance with this section.  
146.10     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2005.
146.11     Sec. 4.  Laws 2003, First Special Session chapter 9, 
146.12  article 6, section 4, is amended to read: 
146.13     Sec. 4.  [APPROPRIATIONS.] 
146.14     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
146.15  indicated in this section are appropriated from the general fund 
146.16  to the department of education for the fiscal years designated.  
146.17     Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
146.18  grants under Minnesota Statutes, section 134.355: 
146.19       $8,072,000 $8,312,000     .....     2004 
146.20       $8,570,000     .....     2005 
146.21     The 2004 appropriation includes $1,456,000 for 2003 and 
146.22  $6,616,000 $6,856,000 for 2004. 
146.23     The 2005 appropriation includes $1,654,000 $1,714,000 for 
146.24  2004 and $6,916,000 $6,856,000 for 2005. 
146.25     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
146.26  regional library telecommunications aid under Minnesota 
146.27  Statutes, section 134.355: 
146.28       $1,200,000 $960,000     .....     2004
146.29       $1,200,000     .....     2005
146.30     The 2004 appropriation includes $960,000 for 2004. 
146.31     The 2005 appropriation includes $240,000 for 2004 and 
146.32  $960,000 for 2005. 
146.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
146.34  following final enactment. 
146.35                             ARTICLE 7 
146.36                      EARLY CHILDHOOD PROGRAMS 
147.1      Section 1.  Minnesota Statutes 2002, section 124D.15, 
147.2   subdivision 1, is amended to read: 
147.3      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
147.4   group of districts may establish a school readiness program 
147.5   for eligible children ages 3-1/2 years old to kindergarten 
147.6   entrance.  The purpose of a school readiness program is 
147.7   to provide all eligible children adequate opportunities to 
147.8   participate in child development programs that enable the 
147.9   children to enter school with the necessary skills and behavior 
147.10  and family stability and support to progress and 
147.11  flourish prepare children to enter kindergarten. 
147.12     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
147.13  fiscal year 2005.  
147.14     Sec. 2.  Minnesota Statutes 2002, section 124D.15, 
147.15  subdivision 3, is amended to read: 
147.16     Subd. 3.  [PROGRAM ELIGIBILITY REQUIREMENTS.] A school 
147.17  readiness program must include the following: 
147.18     (1) a comprehensive plan to anticipate and meet the needs 
147.19  of participating families by coordinating existing social 
147.20  services programs and by fostering collaboration among agencies 
147.21  or other community-based organizations and programs that provide 
147.22  a full range of flexible, family-focused services to families 
147.23  with young children conduct a child development assessment on 
147.24  each child to guide curriculum planning and promote school 
147.25  readiness.  This assessment must be conducted on each child at 
147.26  entrance into the program and once prior to exit of the program; 
147.27     (2) a development and learning component to help children 
147.28  develop appropriate social, cognitive, and physical skills, and 
147.29  emotional well-being; 
147.30     (3) health referral services to address children's medical, 
147.31  dental, mental health, and nutritional needs involve parents in 
147.32  program planning and decision making; 
147.33     (4) (3) a nutrition component to meet children's daily 
147.34  nutritional needs coordinate with relevant community-based 
147.35  services; 
147.36     (5) (4) parents' involvement in meeting children's 
148.1   educational, health, social service, and other needs arrange for 
148.2   early childhood screening and appropriate referral; and 
148.3      (6) (5) community outreach to ensure participation by 
148.4   families who represent the racial, cultural, and economic 
148.5   diversity of the community; 
148.6      (7) community-based staff and program resources, including 
148.7   interpreters, that reflect the racial and ethnic characteristics 
148.8   of the children participating in the program; and 
148.9      (8) a literacy component to ensure that the literacy needs 
148.10  of parents are addressed through referral to and cooperation 
148.11  with adult basic education programs and other adult literacy 
148.12  programs demonstrate use of a comprehensive curriculum based on 
148.13  early childhood developmental research and professional practice 
148.14  that prepares children for kindergarten. 
148.15     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
148.16  2004-2005 school year.  
148.17     Sec. 3.  Minnesota Statutes 2002, section 124D.15, is 
148.18  amended by adding a subdivision to read: 
148.19     Subd. 3a.  [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 
148.20  school readiness program must submit an annual plan to the 
148.21  commissioner for approval.  The plan must include evidence that 
148.22  the program will meet the program requirements according to 
148.23  subdivision 3. 
148.24     (b) Programs receiving school readiness funds must submit 
148.25  an annual report to the department before August 15 of the 
148.26  following fiscal year as required by the department. 
148.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
148.28  following final enactment.  
148.29     Sec. 4.  Minnesota Statutes 2002, section 124D.15, 
148.30  subdivision 5, is amended to read: 
148.31     Subd. 5.  [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 
148.32  district is encouraged to contract with a public or nonprofit 
148.33  organization to provide eligible children developmentally 
148.34  appropriate services that meet the program requirements in 
148.35  subdivision 3.  In the alternative, a district may pay tuition 
148.36  or fees to place an eligible child in an existing program.  A 
149.1   district may establish a new program where no existing, 
149.2   reasonably accessible program meets the program requirements in 
149.3   subdivision 3.  Services may be provided in a site-based program 
149.4   or in the home of the child or a combination of both.  The 
149.5   district may not restrict participation to district 
149.6   residents.  A copy of each contract must be submitted to the 
149.7   commissioner with the annual plan.  
149.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
149.9      Sec. 5.  Minnesota Statutes 2002, section 124D.15, 
149.10  subdivision 8, is amended to read: 
149.11     Subd. 8.  [PRIORITIZING SERVICES.] The district must give 
149.12  greatest priority to providing services to eligible children 
149.13  identified, through a means such as the early childhood 
149.14  screening process, as being developmentally disadvantaged or 
149.15  experiencing risk factors that could impede their school 
149.16  readiness. 
149.17     Sec. 6.  Minnesota Statutes 2002, section 124D.15, 
149.18  subdivision 10, is amended to read: 
149.19     Subd. 10.  [SUPERVISION.] A program provided by a board 
149.20  must be supervised by a licensed early childhood teacher, a 
149.21  certified early childhood educator, or a licensed parent 
149.22  educator.  A program provided according to a contract between a 
149.23  district and a nonprofit organization or another private 
149.24  organization must be supervised and staffed according to the 
149.25  terms of the contract.  
149.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
149.27     Sec. 7.  Minnesota Statutes 2002, section 124D.15, 
149.28  subdivision 12, is amended to read: 
149.29     Subd. 12.  [PROGRAM FEES.] A district may must adopt a 
149.30  sliding fee schedule based on a family's income but must waive a 
149.31  fee for a participant unable to pay.  The fees charged must be 
149.32  designed to enable eligible children of all socioeconomic levels 
149.33  to participate in the program. 
149.34     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
149.35  fiscal year 2005.  
149.36     Sec. 8.  Minnesota Statutes 2002, section 124D.16, 
150.1   subdivision 2, is amended to read: 
150.2      Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
150.3   receive school readiness aid if the program plan required by 
150.4   subdivision 1 section 124D.15, subdivision 3a, has been approved 
150.5   by the commissioner. 
150.6      (b) For fiscal year 2002 and thereafter, a district must 
150.7   receive school readiness aid equal to: 
150.8      (1) the number of eligible four-year-old children in the 
150.9   district on October 1 for the previous school year times the 
150.10  ratio of 50 percent of the total school readiness aid for that 
150.11  year to the total number of eligible four-year-old children 
150.12  reported to the commissioner for the previous school year; plus 
150.13     (2) the number of pupils enrolled in the school district 
150.14  from families eligible for the free or reduced school lunch 
150.15  program for the second previous school year times the ratio of 
150.16  50 percent of the total school readiness aid for that year to 
150.17  the total number of pupils in the state from families eligible 
150.18  for the free or reduced school lunch program for the second 
150.19  previous school year. 
150.20     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
150.21  fiscal year 2005.  
150.22     Sec. 9.  Laws 2003, First Special Session chapter 9, 
150.23  article 7, section 11, subdivision 2, is amended to read: 
150.24     Subd. 2.  [SCHOOL READINESS.] For revenue for school 
150.25  readiness programs under Minnesota Statutes, sections 124D.15 
150.26  and 124D.16: 
150.27       $ 9,536,000    .....     2004
150.28       $ 9,258,000 $ 10,298,000   .....     2005
150.29     The 2004 appropriation includes $1,605,000 for 2003 and 
150.30  $7,931,000 for 2004. 
150.31     The 2005 appropriation includes $1,982,000 for 2004 and 
150.32  $7,276,000 $8,316,000 for 2005.  
150.33     The base budget entitlement for this program is $9,095,000 
150.34  for fiscal years 2006 and later. 
150.35     Sec. 10.  [REPEALER.] 
150.36     Minnesota Statutes 2002, sections 124D.15, subdivisions 2, 
151.1   4, 6, 11, and 13; and 124D.16, subdivisions 1 and 4; and 
151.2   Minnesota Statutes 2003 Supplement, section 124D.15, subdivision 
151.3   7, are repealed. 
151.4      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
151.5                              ARTICLE 8 
151.6                              PREVENTION
151.7      Section 1.  Minnesota Statutes 2002, section 124D.20, is 
151.8   amended by adding a subdivision to read: 
151.9      Subd. 6a.  [COMMUNITY EDUCATION FORMULA RESTORATION 
151.10  LEVY.] In addition to the levy authorized under subdivision 5, a 
151.11  school district may annually levy an amount equal to $.72 times 
151.12  the greater of 1,335 or the population of the district.  
151.13     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
151.14  payable in 2005.  
151.15     Sec. 2.  [EARLY RECOGNITION.] 
151.16     For taxes payable in 2005 only, a school district must 
151.17  recognize 50 percent of the revenue received under section 1 in 
151.18  fiscal year 2005 and 50 percent of the revenue received under 
151.19  section 1 in fiscal year 2006. 
151.20                             ARTICLE 9 
151.21               SELF-SUFFICIENCY AND LIFELONG LEARNING
151.22     Section 1.  Minnesota Statutes 2003 Supplement, section 
151.23  119A.46, subdivision 1, is amended to read: 
151.24     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
151.25  section 144.9501 and in this subdivision apply to this section. 
151.26     (b) "Eligible organization" means a lead contractor, city, 
151.27  board of health, community health department, community action 
151.28  agency as defined in section 119A.374, or community development 
151.29  corporation. 
151.30     (c) "Commissioner" means the commissioner of education 
151.31  health, or the commissioner of the Minnesota Housing Finance 
151.32  Agency as authorized by section 462A.05, subdivision 15c. 
151.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
151.34     Sec. 2.  Minnesota Statutes 2002, section 119A.46, 
151.35  subdivision 2, is amended to read: 
151.36     Subd. 2.  [GRANTS; ADMINISTRATION.] Within the limits of 
152.1   the available appropriation, the commissioner must develop a 
152.2   swab team services program which may make demonstration and 
152.3   training grants to eligible organizations to train workers to 
152.4   provide swab team services and swab team services for 
152.5   residential property.  Grants may be awarded to nonprofit 
152.6   organizations to provide technical assistance and training to 
152.7   ensure quality and consistency within the statewide program.  
152.8   Grants must be awarded to help ensure full-time employment to 
152.9   workers providing swab team services and must be awarded for a 
152.10  two-year period. 
152.11     Grants awarded under this section must be made in 
152.12  consultation with the commissioners commissioner of the 
152.13  Department of health and the Housing Finance Agency, and 
152.14  representatives of neighborhood groups from areas at high risk 
152.15  for toxic lead exposure, a labor organization, the lead 
152.16  coalition, community action agencies, and the legal aid 
152.17  society.  The consulting team must review grant applications and 
152.18  recommend awards to eligible organizations that meet 
152.19  requirements for receiving a grant under this section. 
152.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
152.21     Sec. 3.  Minnesota Statutes 2002, section 119A.46, 
152.22  subdivision 3, is amended to read: 
152.23     Subd. 3.  [APPLICANTS.] (a) Interested eligible 
152.24  organizations may apply to the commissioner for grants under 
152.25  this section.  Two or more eligible organizations may jointly 
152.26  apply for a grant.  Priority shall be given to community action 
152.27  agencies in greater Minnesota and to either community action 
152.28  agencies or neighborhood based nonprofit organizations in cities 
152.29  of the first class.  Of the total annual appropriation, 12.5 
152.30  percent may be used for administrative purposes.  The 
152.31  commissioner may deviate from this percentage if a grantee can 
152.32  justify the need for a larger administrative allowance.  Of this 
152.33  amount, up to five percent may be used by the commissioner for 
152.34  state administrative purposes.  Applications must provide 
152.35  information requested by the commissioner, including at least 
152.36  the information required to assess the factors listed in 
153.1   paragraph (d).  
153.2      (b) The commissioner must coordinate with the commissioner 
153.3   of health who must consult with boards of health to provide swab 
153.4   team services for purposes of secondary prevention.  The 
153.5   priority for swab teams created by grants to eligible 
153.6   organizations under this section must be work assigned by the 
153.7   commissioner of health, or by a board of health if so designated 
153.8   by the commissioner of health, to provide secondary prevention 
153.9   swab team services to fulfill the requirements of section 
153.10  144.9504, subdivision 6, in response to a lead order.  Swab 
153.11  teams assigned work under this section by the commissioner, that 
153.12  are not engaged daily in fulfilling the requirements of section 
153.13  144.9504, subdivision 6, must deliver swab team services in 
153.14  response to elevated blood lead levels as defined in section 
153.15  144.9501, subdivision 9, where lead orders were not issued, and 
153.16  for purposes of primary prevention in census tracts known to be 
153.17  in areas at high risk for toxic lead exposure as described in 
153.18  section 144.9503, subdivision 2. 
153.19     (c) Any additional money must be used for grants to 
153.20  establish swab teams for primary prevention under section 
153.21  144.9503, in census tracts in areas at high risk for toxic lead 
153.22  exposure as determined under section 144.9503, subdivision 2.  
153.23     (d) In evaluating grant applications, the commissioner must 
153.24  consider the following criteria: 
153.25     (1) the use of lead contractors and lead workers for 
153.26  residential swab team services; 
153.27     (2) the participation of neighborhood groups and 
153.28  individuals, as swab team workers, in areas at high risk for 
153.29  toxic lead exposure; 
153.30     (3) plans for the provision of swab team services for 
153.31  primary and secondary prevention as required under subdivision 
153.32  4; 
153.33     (4) plans for supervision, training, career development, 
153.34  and postprogram placement of swab team members; 
153.35     (5) plans for resident and property owner education on lead 
153.36  safety; 
154.1      (6) plans for distributing cleaning supplies to area 
154.2   residents and educating residents and property owners on 
154.3   cleaning techniques; 
154.4      (7) sources of other funding and cost estimates for 
154.5   training, lead inspections, swab team services, equipment, 
154.6   monitoring, testing, and administration; 
154.7      (8) measures of program effectiveness; 
154.8      (9) coordination of program activities with other federal, 
154.9   state, and local public health, job training, apprenticeship, 
154.10  and housing renovation programs including programs under 
154.11  sections 268.86 to 268.881; and 
154.12     (10) prior experience in providing swab team services. 
154.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
154.14     Sec. 4.  Minnesota Statutes 2002, section 119A.46, 
154.15  subdivision 8, is amended to read: 
154.16     Subd. 8.  [TESTING AND EVALUATION.] (a) Testing of the 
154.17  environment is not necessary by swab teams whose work is 
154.18  assigned by the commissioner of health or a designated board of 
154.19  health under section 144.9504.  The commissioner of health or 
154.20  designated board of health must share the analytical testing 
154.21  data collected on each residence for purposes of secondary 
154.22  prevention under section 144.9504 with the swab team workers in 
154.23  order to provide constructive feedback on their work and to the 
154.24  commissioner for the purposes set forth in paragraph (c). 
154.25     (b) For purposes of primary prevention evaluation, the 
154.26  following samples must be collected:  pretesting and posttesting 
154.27  of one noncarpeted floor dust lead sample and a notation of the 
154.28  extent and location of bare soil and of deteriorated lead-based 
154.29  paint.  The analytical testing data collected on each residence 
154.30  for purposes of primary prevention under section 144.9503 must 
154.31  be shared with the swab team workers in order to provide 
154.32  constructive feedback on their work and to the commissioner for 
154.33  the purposes set forth in paragraph (c). 
154.34     (c) The commissioner of health must establish a program in 
154.35  cooperation with the commissioner to collect appropriate data as 
154.36  required under paragraphs (a) and (b), in order to conduct an 
155.1   ongoing evaluation of swab team services for primary and 
155.2   secondary prevention.  Within the limits of available 
155.3   appropriations, the commissioner of health must conduct or 
155.4   contract with the commissioner, on up to 1,000 residences which 
155.5   have received primary or secondary prevention swab team 
155.6   services, a postremediation evaluation, on at least a quarterly 
155.7   basis for a period of at least two years for each residence.  
155.8   The evaluation must note the condition of the paint within the 
155.9   residence, the extent of bare soil on the grounds, and collect 
155.10  and analyze one noncarpeted floor dust lead sample.  The data 
155.11  collected must be evaluated to determine the efficacy of 
155.12  providing swab team services as a method of reducing lead 
155.13  exposure in young children.  In evaluating this data, the 
155.14  commissioner of health must consider city size, community 
155.15  location, historic traffic flow, soil lead level of the property 
155.16  by area or census tract, distance to industrial point sources 
155.17  that emit lead, season of the year, age of the housing, age and 
155.18  number of children living at the residence, the presence of pets 
155.19  that move in and out of the residence, and other relevant 
155.20  factors as the commissioner of health may determine.  This 
155.21  evaluation of the swab team program may be paid from amounts 
155.22  appropriated to the Department of Economic Security for 
155.23  providing swab team services. 
155.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
155.25     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
155.26  124D.531, subdivision 1, is amended to read: 
155.27     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
155.28  (a) The state total adult basic education aid for fiscal year 
155.29  2004 equals $34,388,000.  The state total adult basic education 
155.30  aid for fiscal year 2005 and later is $36,509,000 plus any 
155.31  amount that is not paid for during the previous fiscal year, as 
155.32  a result of adjustments under subdivision 4, paragraph (a), or 
155.33  section 124D.52, subdivision 3.  Beginning in fiscal year 2002, 
155.34  two percent of the state total adult basic education aid must be 
155.35  set aside for adult basic education supplemental service grants 
155.36  under section 124D.522.  
156.1      (b) The state total adult basic education aid, excluding 
156.2   basic population aid, equals the difference between the amount 
156.3   computed in paragraph (a), and the state total basic population 
156.4   aid under subdivision 2. 
156.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
156.6   following final enactment and applies for revenue distributions 
156.7   for fiscal year 2005. 
156.8      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
156.9   124D.531, subdivision 4, is amended to read: 
156.10     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
156.11  Notwithstanding subdivisions 2 and 3, the total adult basic 
156.12  education aid for a program per prior year contact hour must not 
156.13  exceed $21 per prior year contact hour computed under 
156.14  subdivision 3, clause (2). 
156.15     (b) For fiscal year 2004, the aid for a program under 
156.16  subdivision 3, clause (2), adjusted for changes in program 
156.17  membership, must not exceed the aid for that program under 
156.18  subdivision 3, clause (2), for fiscal year 2003 by more than the 
156.19  greater of eight percent or $10,000. 
156.20     (c) For fiscal year 2005, the aid for a program under 
156.21  subdivision 3, clause (2), adjusted for changes in program 
156.22  membership, must not exceed the sum of the aid for that program 
156.23  under subdivision 3, clause (2), and Laws 2003, First Special 
156.24  Session chapter 9, article 9, section 8, paragraph (a), for the 
156.25  preceding fiscal year by more than the greater of eight percent 
156.26  or $10,000.  
156.27     (d) For fiscal year 2006 and later, the aid for a program 
156.28  under subdivision 3, clause (2), adjusted for changes in program 
156.29  membership, must not exceed the aid for that program under 
156.30  subdivision 3, clause (2), for the first preceding fiscal year 
156.31  by more than the greater of eight percent or $10,000. 
156.32     (e) Adult basic education aid is payable to a program for 
156.33  unreimbursed costs occurring in the program year as defined in 
156.34  section 124D.52, subdivision 3. 
156.35     (f) Any adult basic education aid that is not paid to a 
156.36  program because of the program aid limitation under paragraph 
157.1   (a) must be added to the state total adult basic education aid 
157.2   for the next fiscal year under subdivision 1.  Any adult basic 
157.3   education aid that is not paid to a program because of the 
157.4   program aid limitations under paragraph (b), (c), or (d) must be 
157.5   reallocated among programs by adjusting the rate per contact 
157.6   hour under subdivision 3, clause (2).  
157.7      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
157.8   following final enactment and applies for revenue distributions 
157.9   for fiscal year 2005. 
157.10     Sec. 7.  Laws 2003, First Special Session chapter 9, 
157.11  article 9, section 9, subdivision 2, is amended to read: 
157.12     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
157.13  education aid under Minnesota Statutes, section 124D.52, in 
157.14  fiscal year 2004 and Minnesota Statutes, section 124D.531, in 
157.15  fiscal year 2005:  
157.16       $33,153,000 $33,014,000     .....     2004 
157.17       $35,823,000 $36,132,000     .....     2005 
157.18     The 2004 appropriation includes $5,905,000 $5,827,000 for 
157.19  2003 and $27,248,000 $27,187,000 for 2004.  
157.20     The 2005 appropriation includes $6,811,000 $6,796,000 for 
157.21  2004 and $29,012,000 $29,336,000 for 2005.  
157.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
157.23  following final enactment.  
157.24     Sec. 8.  Laws 2003, First Special Session chapter 9, 
157.25  article 9, section 9, subdivision 5, is amended to read: 
157.26     Subd. 5.  [LEAD ABATEMENT.] For lead abatement according to 
157.27  Minnesota Statutes, section 119A.46:  
157.28       $  100,000     .....     2004 
157.29       $  100,000 -0-    .....     2005 
157.30     Any balance in the first year does not cancel but is 
157.31  available in the second year.  The first year's balance, if any, 
157.32  must be transferred to the Department of Health.  
157.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
157.34  following final enactment.  
157.35     Sec. 9.  [REVISOR INSTRUCTION.] 
157.36     In the next edition of Minnesota Statutes, the revisor of 
158.1   statutes shall renumber section 119A.46 within chapter 144 and 
158.2   shall appropriately revise any statutory cross-references 
158.3   consistent with that renumbering. 
158.4                              ARTICLE 10 
158.5                            STATE AGENCIES
158.6      Section 1.  [120B.115] [SCHOOL DISTRICT EFFICIENCY 
158.7   REVIEWS.] 
158.8      (a) At the written request of a school superintendent or 
158.9   local school board, and to the extent state funds are 
158.10  appropriated for this purpose, the commissioner of education 
158.11  shall review a school district's central operations.  The review 
158.12  at least must: 
158.13     (1) examine noninstructional expenditures; 
158.14     (2) examine overhead costs, procurement practices, 
158.15  facilities use and management, financial management, 
158.16  transportation policies, technology planning, and energy 
158.17  management; and 
158.18     (3) identify opportunities for the district to improve 
158.19  operational efficiencies and reduce costs. 
158.20     The commissioner, at the commissioner's discretion, may 
158.21  include additional areas for review.  The review must not 
158.22  examine the effectiveness of the educational services a district 
158.23  is delivering.  State and local entities must cooperate with and 
158.24  assist the commissioner with a review at the request of the 
158.25  commissioner. 
158.26     (b) The commissioner must conduct the review within two 
158.27  years of the date on which the commissioner receives the review 
158.28  request and must determine the sequence, timing, and duration of 
158.29  the review.  The commissioner is encouraged to annually review 
158.30  at least three districts in diverse locations throughout the 
158.31  state. 
158.32     (c) When concluding a review, the commissioner must provide 
158.33  a written report of the findings, including exemplary practices 
158.34  that other school districts may wish to replicate and 
158.35  recommendations for improved services and greater efficiencies.  
158.36  All recommendations contained in the report are advisory only 
159.1   and a school district may adopt or reject the recommendations in 
159.2   whole or in part. 
159.3      (d) The commissioner must make public all final reports, 
159.4   recommendations, related tables, and appendices.  Records and 
159.5   other information about identifiable school board employees are 
159.6   private data on individuals and must not be disclosed. 
159.7      (e) The commissioner must not seek reimbursement from a 
159.8   school district or other affected local unit of government for 
159.9   any costs associated with an efficiency review under this 
159.10  section. 
159.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
159.12     Sec. 2.  Laws 2003, First Special Session chapter 9, 
159.13  article 10, section 10, subdivision 2, is amended to read: 
159.14     Subd. 2.  [DEPARTMENT.] (a) For the department of education:
159.15       $23,653,000    .....     2004 
159.16       $23,653,000 $22,413,000   .....     2005 
159.17     Any balance in the first year does not cancel but is 
159.18  available in the second year. 
159.19     (b) $260,000 each year is for the Minnesota children's 
159.20  museum. 
159.21     (c) $41,000 each year is for the Minnesota academy of 
159.22  science. 
159.23     (d) $237,000 of the balance in the state education 
159.24  courseware development account in the state government special 
159.25  revenue fund as of July 1, 2004, is canceled to the general fund.
159.26     (e) $160,000 of the balance in the state item bank 
159.27  revolving account in the state government special revenue fund 
159.28  as of July 1, 2004, is canceled to the general fund. 
159.29     (f) $621,000 each year in fiscal year 2004 and $597,000 in 
159.30  fiscal year 2005 is for the board of teaching. 
159.31     (g) $165,000 each year in fiscal year 2004 and $160,000 in 
159.32  fiscal year 2005 is for the board of school administrators.  
159.33     (h) The commissioner is encouraged to give priority 
159.34  consideration to the Minnesota humanities commission when 
159.35  issuing grants for professional development of teachers or 
159.36  content development from best practices, Federal Title II, Part 
160.1   A, Federal Title V, Part A, or other appropriate grant resources 
160.2   that have a stated objective of improvement of teacher 
160.3   performance. 
160.4      (i) An additional $96,000 in fiscal year 2004 and $96,000 
160.5   in fiscal year 2005 are appropriated from the special revenue 
160.6   fund under Minnesota Statutes, section 517.08, subdivision 1c, 
160.7   for family visitation centers.  Any balance in the first year 
160.8   does not cancel but is available for the second year. 
160.9      (j) $100,000 in fiscal year 2005 is for school district 
160.10  efficiency reviews under Minnesota Statutes, section 120B.115.  
160.11     (k) The appropriation base for the Department of Education 
160.12  is $22,727,000 for fiscal year 2006 and $22,727,000 for fiscal 
160.13  year 2007.  
160.14     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
160.15  following final enactment.  
160.16     Sec. 3.  Laws 2003, First Special Session chapter 9, 
160.17  article 10, section 11, is amended to read: 
160.18     Sec. 11.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
160.19     The sums indicated in this section are appropriated from 
160.20  the general fund to the Minnesota state academies for the deaf 
160.21  and the blind for the fiscal years designated:  
160.22       $10,466,000    .....     2004 
160.23       $10,466,000 $10,340,000   .....     2005 
160.24     Any balance in the first year does not cancel but is 
160.25  available in the second year. 
160.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
160.27  following final enactment. 
160.28     Sec. 4.  Laws 2003, First Special Session chapter 9, 
160.29  article 10, section 12, is amended to read:  
160.30     Sec. 12.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
160.31  EDUCATION.] 
160.32     The sums indicated in this section are appropriated from 
160.33  the general fund to the Perpich center for arts education for 
160.34  the fiscal years designated: 
160.35       $6,864,000     .....     2004 
160.36       $6,423,000 $6,244,000    .....     2005 
161.1      Any balance in the first year does not cancel but is 
161.2   available in the second year. 
161.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
161.4   following final enactment. 
161.5                              ARTICLE 11 
161.6                             DEFICIENCIES
161.7      Section 1.  Laws 2003, First Special Session chapter 9, 
161.8   article 1, section 53, subdivision 3, is amended to read: 
161.9      Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
161.10  referendum tax base replacement aid under Minnesota Statutes, 
161.11  section 126C.17, subdivision 7a: 
161.12       $ 7,841,000 $8,096,000     .....     2004 
161.13       $ 8,543,000 $8,596,000     .....     2005 
161.14     The 2004 appropriation includes $1,419,000 for 2003 and 
161.15  $6,422,000 $6,677,000 for 2004.  
161.16     The 2005 appropriation includes $1,605,000 $1,669,000 for 
161.17  2004 and $6,938,000 $6,927,000 for 2005. 
161.18     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
161.19  following final enactment.  
161.20     Sec. 2.  Laws 2003, First Special Session chapter 9, 
161.21  article 1, section 53, subdivision 5, is amended to read: 
161.22     Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
161.23  Minnesota Statutes, section 127A.49:  
161.24       $2,680,000 $2,436,000     .....     2004 
161.25       $2,937,000 $1,559,000     .....     2005 
161.26     The 2004 appropriation includes $472,000 for 2003 and 
161.27  $2,208,000 $1,964,000 for 2004.  
161.28     The 2005 appropriation includes $551,000 $491,000 for 2004 
161.29  and $2,386,000 $1,068,000 for 2005.  
161.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
161.31  following final enactment.  
161.32     Sec. 3.  Laws 2003, First Special Session chapter 9, 
161.33  article 1, section 53, subdivision 6, is amended to read: 
161.34     Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
161.35  consolidating under Minnesota Statutes, section 123A.485: 
161.36       $207,000 $ 35,000     .....     2004 
162.1        $607,000 $145,000     .....     2005 
162.2      The 2004 appropriation includes $35,000 for 2003 and 
162.3   $172,000 $0 for 2004. 
162.4      The 2005 appropriation includes $42,000 $0 for 2004 and 
162.5   $565,000 $145,000 for 2005. 
162.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
162.7   following final enactment.  
162.8      Sec. 4.  Laws 2003, First Special Session chapter 9, 
162.9   article 1, section 53, subdivision 11, is amended to read: 
162.10     Subd. 11.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
162.11  education aid under Minnesota Statutes, sections 123B.40 to 
162.12  123B.43 and 123B.87: 
162.13       $14,626,000 $14,411,000     .....     2004 
162.14       $15,594,000 $15,072,000     .....     2005 
162.15     The 2004 appropriation includes $2,715,000 for 2003 and 
162.16  $11,911,000 $11,696,000 for 2004. 
162.17     The 2005 appropriation includes $2,977,000 $2,923,000 for 
162.18  2004 and $12,617,000 $12,149,000 for 2005. 
162.19     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
162.20  following final enactment.  
162.21     Sec. 5.  Laws 2003, First Special Session chapter 9, 
162.22  article 1, section 53, subdivision 12, is amended to read: 
162.23     Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
162.24  pupil transportation aid under Minnesota Statutes, section 
162.25  123B.92, subdivision 9: 
162.26       $21,477,000 $20,471,000     .....     2004 
162.27       $21,982,000 $21,421,000     .....     2005 
162.28     The 2004 appropriation includes $3,990,000 for 2003 and 
162.29  $17,487,000 $16,481,000 for 2004. 
162.30     The 2005 appropriation includes $4,371,000 $4,120,000 for 
162.31  2004 and $17,611,000 $17,301,000 for 2005. 
162.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
162.33  following final enactment.  
162.34     Sec. 6.  Laws 2003, First Special Session chapter 9, 
162.35  article 2, section 55, subdivision 2, is amended to read: 
162.36     Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
163.1   lease aid under Minnesota Statutes, section 124D.11, subdivision 
163.2   4: 
163.3        $17,140,000 $16,753,000     .....     2004 
163.4        $21,018,000 $21,347,000     .....     2005 
163.5      The 2004 appropriation includes $2,524,000 for 2003 and 
163.6   $14,616,000 $14,229,000 for 2004. 
163.7      The 2005 appropriation includes $3,654,000 $3,557,000 for 
163.8   2004 and $17,364,000 $17,790,000 for 2005.  
163.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
163.10  following final enactment.  
163.11     Sec. 7.  Laws 2003, First Special Session chapter 9, 
163.12  article 2, section 55, subdivision 3, is amended to read: 
163.13     Subd. 3.  [CHARTER SCHOOL STARTUP AID.] For charter school 
163.14  startup cost aid under Minnesota Statutes, section 124D.11: 
163.15       $824,000 $844,000     .....     2004 
163.16       $151,000 $156,000     .....     2005 
163.17     The 2004 appropriation includes $220,000 for 2003 and 
163.18  $604,000 $624,000 for 2004.  
163.19     The 2005 appropriation includes $151,000 $156,000 for 2004 
163.20  and $0 for 2005. 
163.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
163.22  following final enactment.  
163.23     Sec. 8.  Laws 2003, First Special Session chapter 9, 
163.24  article 2, section 55, subdivision 4, is amended to read: 
163.25     Subd. 4.  [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 
163.26  to charter schools to promote integration and desegregation 
163.27  under Minnesota Statutes, section 124D.11, subdivision 6, 
163.28  paragraph (e): 
163.29       $8,000 $7,000     .....     2004 
163.30     This appropriation includes $8,000 $7,000 for 2003 and $0 
163.31  for 2004. 
163.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
163.33  following final enactment.  
163.34     Sec. 9.  Laws 2003, First Special Session chapter 9, 
163.35  article 2, section 55, subdivision 7, is amended to read: 
163.36     Subd. 7.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
164.1   startup aid under Minnesota Statutes, section 124D.88: 
164.2        $ 37,000     .....     2004 
164.3        $454,000 $ 40,000     .....     2005 
164.4      The 2004 appropriation includes $37,000 for 2003 and $0 for 
164.5   2004.  
164.6      The 2005 appropriation includes $0 for 2004 and $437,000 
164.7   $40,000 for 2005. 
164.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
164.9   following final enactment.  
164.10     Sec. 10.  Laws 2003, First Special Session chapter 9, 
164.11  article 2, section 55, subdivision 9, is amended to read: 
164.12     Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
164.13  success for the future grants under Minnesota Statutes, section 
164.14  124D.81: 
164.15       $2,073,000 $2,061,000     .....     2004
164.16       $2,137,000     .....     2005
164.17     The 2004 appropriation includes $363,000 $351,000 for 2003 
164.18  and $1,710,000 for 2004. 
164.19     The 2005 appropriation includes $427,000 for 2004 and 
164.20  $1,710,000 for 2005. 
164.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
164.22  following final enactment.  
164.23     Sec. 11.  Laws 2003, First Special Session chapter 9, 
164.24  article 2, section 55, subdivision 12, is amended to read:  
164.25     Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
164.26  school aid under Minnesota Statutes, section 124D.83: 
164.27       $2,135,000 $1,617,000     .....     2004
164.28       $2,336,000 $2,185,000     .....     2005
164.29     The 2004 appropriation includes $285,000 for 2003 and 
164.30  $1,850,000 $1,332,000 for 2004. 
164.31     The 2005 appropriation includes $462,000 $333,000 for 2004 
164.32  and $1,874,000 $1,852,000 for 2005. 
164.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
164.34  following final enactment.  
164.35     Sec. 12.  Laws 2003, First Special Session chapter 9, 
164.36  article 3, section 20, subdivision 4, is amended to read: 
165.1      Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
165.2   under Minnesota Statutes, section 125A.75, subdivision 3, for 
165.3   children with disabilities placed in residential facilities 
165.4   within the district boundaries for whom no district of residence 
165.5   can be determined: 
165.6        $2,177,000 $2,311,000     .....     2004 
165.7        $2,244,000 $2,550,000     .....     2005 
165.8      If the appropriation for either year is insufficient, the 
165.9   appropriation for the other year is available.  
165.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
165.11  following final enactment.  
165.12     Sec. 13.  Laws 2003, First Special Session chapter 9, 
165.13  article 3, section 20, subdivision 5, is amended to read: 
165.14     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
165.15  teacher travel for home-based services under Minnesota Statutes, 
165.16  section 125A.75, subdivision 1: 
165.17       $220,000 $173,000     .....     2004 
165.18       $261,000 $178,000     .....     2005 
165.19     The 2004 appropriation includes $34,000 for 2003 and 
165.20  $186,000 $139,000 for 2004. 
165.21     The 2005 appropriation includes $46,000 $34,000 for 2004 
165.22  and $215,000 $144,000 for 2005. 
165.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
165.24  following final enactment.  
165.25     Sec. 14.  Laws 2003, First Special Session chapter 9, 
165.26  article 3, section 20, subdivision 6, is amended to read: 
165.27     Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
165.28  cost aid under Minnesota Statutes, section 125A.79, subdivision 
165.29  7: 
165.30       $92,606,000 $92,605,000     .....     2004 
165.31       $92,984,000 $92,799,000     .....     2005 
165.32     The 2004 appropriation includes $41,754,000 for 2003 and 
165.33  $50,852,000 $50,851,000 for 2004. 
165.34     The 2005 appropriation includes $41,215,000 $41,216,000 for 
165.35  2004 and $51,769,000 $51,583,000 for 2005.  
165.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
166.1   following final enactment.  
166.2      Sec. 15.  Laws 2003, First Special Session chapter 9, 
166.3   article 3, section 20, subdivision 7, is amended to read: 
166.4      Subd. 7.  [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 
166.5   paying the costs a district incurs under Minnesota Statutes, 
166.6   section 125A.75, subdivision 8: 
166.7        $346,000 $201,000     .....     2004 
166.8        $ 17,000 $150,000     .....     2005 
166.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
166.10  following final enactment.  
166.11     Sec. 16.  Laws 2003, First Special Session chapter 9, 
166.12  article 3, section 20, subdivision 8, is amended to read: 
166.13     Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
166.14  transition programs for children with disabilities under 
166.15  Minnesota Statutes, section 124D.454: 
166.16       $8,625,000 $8,570,000     .....     2004 
166.17       $8,867,000 $8,760,000     .....     2005 
166.18     The 2004 appropriation includes $1,516,000 for 2003 and 
166.19  $7,109,000 $7,054,000 for 2004.  
166.20     The 2005 appropriation includes $1,777,000 $1,763,000 for 
166.21  2004 and $7,090,000 $6,997,000 for 2005.  
166.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
166.23  following final enactment.  
166.24     Sec. 17.  Laws 2003, First Special Session chapter 9, 
166.25  article 3, section 20, subdivision 9, is amended to read: 
166.26     Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
166.27  reimbursing serving school districts for unreimbursed eligible 
166.28  expenditures attributable to children placed in the serving 
166.29  school district by court action under Minnesota Statutes, 
166.30  section 125A.79, subdivision 4: 
166.31       $152,000 $36,000     .....     2004 
166.32       $160,000 $61,000     .....     2005 
166.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
166.34  following final enactment.  
166.35     Sec. 18.  Laws 2003, First Special Session chapter 9, 
166.36  article 4, section 31, subdivision 2, is amended to read: 
167.1      Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
167.2   safety aid according to Minnesota Statutes, section 123B.57, 
167.3   subdivision 5: 
167.4        $7,839,000 $5,356,000     .....     2004 
167.5        $6,068,000 $1,920,000     .....     2005 
167.6      The 2004 appropriation includes $1,516,000 for 2003 and 
167.7   $6,323,000 $3,840,000 for 2004. 
167.8      The 2005 appropriation includes $1,580,000 $960,000 for 
167.9   2004 and $4,488,000 $960,000 for 2005. 
167.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
167.11  following final enactment.  
167.12     Sec. 19.  Laws 2003, First Special Session chapter 9, 
167.13  article 4, section 31, subdivision 3, is amended to read: 
167.14     Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
167.15  according to Minnesota Statutes, section 123B.53, subdivision 6: 
167.16       $34,500,000 $35,598,000     .....     2004 
167.17       $37,575,000 $31,220,000     .....     2005 
167.18     The 2004 appropriation includes $5,586,000 for 2003 and 
167.19  $28,914,000 $30,012,000 for 2004. 
167.20     The 2005 appropriation includes $7,228,000 $7,503,000 for 
167.21  2004 and $30,347,000 $23,717,000 for 2005. 
167.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
167.23  following final enactment.  
167.24     Sec. 20.  Laws 2003, First Special Session chapter 9, 
167.25  article 5, section 35, subdivision 2, is amended to read: 
167.26     Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
167.27  according to Minnesota Statutes, section 124D.111, and Code of 
167.28  Federal Regulations, title 7, section 210.17:  
167.29       $7,800,000 $7,650,000     .....     2004 
167.30       $7,950,000 $7,760,000     .....     2005 
167.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
167.32  following final enactment.  
167.33     Sec. 21.  Laws 2003, First Special Session chapter 9, 
167.34  article 5, section 35, subdivision 3, is amended to read: 
167.35     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
167.36  MILK.] For traditional school breakfast aid and kindergarten 
168.1   milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
168.2        $3,088,000 $4,382,000     .....     2004 
168.3        $3,217,000 $4,460,000     .....     2005 
168.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
168.5   following final enactment.  
168.6      Sec. 22.  Laws 2003, First Special Session chapter 9, 
168.7   article 7, section 11, subdivision 3, is amended to read: 
168.8      Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
168.9   childhood family education aid under Minnesota Statutes, section 
168.10  124D.135: 
168.11       $19,675,000 $19,079,000     .....     2004 
168.12       $15,129,000 $14,407,000     .....     2005 
168.13     The 2004 appropriation includes $3,239,000 for 2003 and 
168.14  $16,436,000 $15,840,000 for 2004.  
168.15     The 2005 appropriation includes $4,109,000 $3,959,000 for 
168.16  2004 and $11,020,000 $10,448,000 for 2005.  
168.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
168.18  following final enactment.  
168.19     Sec. 23.  Laws 2003, First Special Session chapter 9, 
168.20  article 8, section 7, subdivision 2, is amended to read: 
168.21     Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
168.22  education aid under Minnesota Statutes, section 124D.20: 
168.23       $5,495,000 $5,351,000     .....     2004 
168.24       $3,406,000 $3,137,000     .....     2005 
168.25     The 2004 appropriation includes $956,000 for 2003 and 
168.26  $4,539,000 $4,395,000 for 2004.  
168.27     The 2005 appropriation includes $1,134,000 $1,098,000 for 
168.28  2004 and $2,272,000 $2,039,000 for 2005.  
168.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
168.30  following final enactment.  
168.31     Sec. 24.  Laws 2003, First Special Session chapter 9, 
168.32  article 8, section 7, subdivision 5, is amended to read: 
168.33     Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day care 
168.34  aid under Minnesota Statutes, section 124D.22: 
168.35       $41,000 $40,000     .....     2004 
168.36       $22,000 $24,000     .....     2005
169.1      The 2004 appropriation includes $14,000 for 2003 and 
169.2   $27,000 $26,000 for 2004. 
169.3      The 2005 appropriation includes $6,000 for 2004 and $16,000 
169.4   $18,000 for 2005. 
169.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
169.6   following final enactment. 
169.7      Sec. 25.  [APPROPRIATIONS IN OTHER BILLS.] 
169.8      The appropriations for forecast programs in this act 
169.9   prevail over any other appropriations enacted during the 2004 
169.10  regular legislative session for the same programs, regardless of 
169.11  the date of enactment or effective date of this act and such 
169.12  other appropriations. 
169.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
169.14  following final enactment. 
169.15                             ARTICLE 12 
169.16                TECHNICAL AND CONFORMING AMENDMENTS 
169.17     Section 1.  Minnesota Statutes 2003 Supplement, section 
169.18  120B.021, subdivision 3, is amended to read: 
169.19     Subd. 3.  [RULEMAKING.] (a) The commissioner, consistent 
169.20  with the requirements of this section and section 120B.022, must 
169.21  adopt statewide rules under section 14.389 for implementing 
169.22  statewide rigorous core academic standards in language arts, 
169.23  mathematics, and the arts.  After the rules authorized under 
169.24  this paragraph are initially adopted, the commissioner may not 
169.25  amend or repeal these rules nor adopt new rules on the same 
169.26  topic without specific legislative authorization.  These 
169.27  academic standards must be implemented for all students 
169.28  beginning in the 2003-2004 school year. 
169.29     (b) The rules authorized under this section are not subject 
169.30  to section 14.127. 
169.31     Sec. 2.  Minnesota Statutes 2002, section 120B.35, is 
169.32  amended by adding a subdivision to read: 
169.33     Subd. 5.  [IMPROVING GRADUATION RATES FOR STUDENTS WITH 
169.34  EMOTIONAL OR BEHAVIORAL DISORDERS.] (a) A district must develop 
169.35  strategies in conjunction with parents of students with 
169.36  emotional or behavioral disorders and the county board 
170.1   responsible for implementing sections 245.487 to 245.4888 to 
170.2   keep students with emotional or behavioral disorders in school, 
170.3   when the district has a drop-out rate for students with an 
170.4   emotional or behavioral disorder in grades 9 through 12 
170.5   exceeding 25 percent. 
170.6      (b) A district must develop a plan in conjunction with 
170.7   parents of students with emotional or behavioral disorders and 
170.8   the local mental health authority to increase the graduation 
170.9   rates of students with emotional or behavioral disorders.  A 
170.10  district with a drop-out rate for children with an emotional or 
170.11  behavioral disturbance in grades 9 through 12 that is in the top 
170.12  25 percent of all districts shall submit a plan for review and 
170.13  oversight to the commissioner. 
170.14     Sec. 3.  Minnesota Statutes 2002, section 123A.442, 
170.15  subdivision 2, is amended to read: 
170.16     Subd. 2.  [COOPERATION AND COMBINATION.] Districts that 
170.17  receive a cooperative secondary facilities grant after May 1, 
170.18  1991, shall: 
170.19     (1) submit a plan as set forth in section 123A.36 for 
170.20  approval by the State Board of Education before December 31, 
170.21  1999, or Department of Education after December 30, 1999; and 
170.22     (2) hold a referendum on the question of combination no 
170.23  later than four years after a grant is awarded under subdivision 
170.24  1. 
170.25     The districts are eligible for cooperation and combination 
170.26  revenue under section 123A.39, subdivision 3.  
170.27     Sec. 4.  Minnesota Statutes 2002, section 123A.443, 
170.28  subdivision 4, is amended to read: 
170.29     Subd. 4.  [DISTRICT PROCEDURES.] A joint powers board of a 
170.30  secondary district established under subdivision 2 or a school 
170.31  board of a reorganized district that intends to apply for a 
170.32  grant must adopt a resolution stating the proposed costs of the 
170.33  project, the purpose for which the costs are to be incurred, and 
170.34  an estimate of the dates when the facilities for which the grant 
170.35  is requested will be contracted for and completed.  Applications 
170.36  for the state grants must be accompanied by (a) a copy of the 
171.1   resolution, (b) a certificate by the clerk and treasurer of the 
171.2   joint powers board showing the current outstanding indebtedness 
171.3   of each member district, and (c) a certificate by the county 
171.4   auditor of each county in which a portion of the joint powers 
171.5   district lies showing the information in the auditor's official 
171.6   records that is required to be used in computing the debt limit 
171.7   of the district under section 475.53, subdivision 4.  The 
171.8   clerk's and treasurer's certificate must show, as to each 
171.9   outstanding bond issue of each member district, the amount 
171.10  originally issued, the purpose for which issued, the date of 
171.11  issue, the amount remaining unpaid as of the date of the 
171.12  resolution, and the interest rates and due dates and amounts of 
171.13  principal thereon.  Applications and necessary data must be in 
171.14  the form prescribed by the commissioner and the rules of the 
171.15  State Board of Education before December 31, 1999, and after 
171.16  December 30, 1999, in the form prescribed by the commissioner.  
171.17  Applications must be received by the commissioner by September 1 
171.18  of an odd-numbered year.  When an application is received, the 
171.19  commissioner shall obtain from the commissioner of revenue, and 
171.20  from the public utilities commission when required, the 
171.21  information in their official records that is required to be 
171.22  used in computing the debt limit of the joint powers district 
171.23  under section 475.53, subdivision 4. 
171.24     Sec. 5.  Minnesota Statutes 2002, section 123A.55, is 
171.25  amended to read: 
171.26     123A.55 [CLASSES, NUMBER.] 
171.27     Districts shall be classified as common, independent, or 
171.28  special districts, each of which is a public corporation.  Each 
171.29  district shall be known by its classification and assigned a 
171.30  number by the commissioner so that its title will be .......... 
171.31  School District Number No.  ..... . 
171.32     Sec. 6.  Minnesota Statutes 2002, section 123B.58, 
171.33  subdivision 2, is amended to read: 
171.34     Subd. 2.  [FIRE SAFETY MODIFICATIONS.] If a district has 
171.35  insufficient money in its capital expenditure fund to make 
171.36  modifications to a school building required by a fire inspection 
172.1   conducted according to section 123B.73 299F.47, the district may 
172.2   submit an application to the commissioner containing information 
172.3   required by the commissioner.  The commissioner shall approve or 
172.4   disapprove of the application according to criteria established 
172.5   by the commissioner.  The criteria shall take into consideration 
172.6   the cost-effectiveness of making modifications to older 
172.7   buildings. 
172.8      Sec. 7.  Minnesota Statutes 2002, section 124D.19, 
172.9   subdivision 11, is amended to read: 
172.10     Subd. 11.  [SCHOOL-AGE CARE PROGRAMS.] (a) A school board 
172.11  may offer, as part of a community education program, a 
172.12  school-age care program for children from kindergarten through 
172.13  grade 6 for the purpose of expanding students' learning 
172.14  opportunities.  If the school board chooses not to offer a 
172.15  school-age care program, it may allow an appropriate insured 
172.16  community group, for profit entity or nonprofit organization to 
172.17  use available school facilities for the purpose of offering a 
172.18  school-age care program. 
172.19     (b) A school-age care program must include the following: 
172.20     (1) adult supervised programs while school is not in 
172.21  session; 
172.22     (2) parental involvement in program design and direction; 
172.23     (3) partnerships with the kindergarten through grade 12 
172.24  system, and other public, private, or nonprofit entities; 
172.25     (4) opportunities for trained secondary school pupils to 
172.26  work with younger children in a supervised setting as part of a 
172.27  community service program; and 
172.28     (5) access to available school facilities, including the 
172.29  gymnasium, sports equipment, computer labs, and media centers, 
172.30  when not otherwise in use as part of the operation of the 
172.31  school.  The school district may establish reasonable rules 
172.32  relating to access to these facilities and may require that: 
172.33     (i) the organization request access to the facilities and 
172.34  prepare and maintain a schedule of proposed use; 
172.35     (ii) the organization provide evidence of adequate 
172.36  insurance to cover the activities to be conducted in the 
173.1   facilities; and 
173.2      (iii) the organization prepare and maintain a plan 
173.3   demonstrating the adequacy and training of staff to supervise 
173.4   the use of the facilities. 
173.5      (c) The district may charge a sliding fee based upon family 
173.6   income for school-age care programs.  The district may receive 
173.7   money from other public or private sources for the school-age 
173.8   care program.  The board of the district must develop standards 
173.9   for school-age child care programs.  The State Board 
173.10  commissioner of education may not adopt rules for school-age 
173.11  care programs. 
173.12     (d) The district shall maintain a separate account within 
173.13  the community services fund for all funds related to the 
173.14  school-age care program. 
173.15     (e) A district is encouraged to coordinate the school-age 
173.16  care program with its special education, vocational education, 
173.17  adult basic education, early childhood family education 
173.18  programs, kindergarten through grade 12 instruction and 
173.19  curriculum services, youth development and youth service 
173.20  agencies, and with related services provided by other 
173.21  governmental agencies and nonprofit agencies. 
173.22     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
173.23  124D.20, subdivision 11, is amended to read: 
173.24     Subd. 11.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
173.25  the sum of the average balances during the most recent 
173.26  three-year period in a district's community education reserve 
173.27  account and unreserved/undesignated community service fund 
173.28  account on June 30 of each year, adjusted for any prior 
173.29  reductions under this subdivision, must not be greater than 25 
173.30  percent of the sum of the district's maximum total community 
173.31  education revenue under subdivision 1, excluding adjustments 
173.32  under this subdivision, plus the district's additional community 
173.33  education levy under section 124D.21, plus any fees, grants, or 
173.34  other revenue received by the district for community education 
173.35  programs for the prior year.  For purposes of this paragraph, 
173.36  "community education programs" means programs according to 
174.1   subdivisions 8, paragraph (a), and 9, and section 124D.19, 
174.2   subdivision 12, excluding early childhood family education 
174.3   programs under section 124D.13, school readiness programs under 
174.4   sections section 124D.15 and 124D.17, and adult basic education 
174.5   programs under section 124D.52. 
174.6      (b) If the sum of the average balances during the most 
174.7   recent three-year period in a district's community education 
174.8   reserve account and unreserved/undesignated community service 
174.9   fund account on June 30 of each year, adjusted for any prior 
174.10  reductions under this subdivision, is in excess of the limit 
174.11  under paragraph (a), the district's community education state 
174.12  aid and levy authority for the current school year must be 
174.13  reduced by the lesser of the current year revenue under 
174.14  subdivision 1 or the excess reserve amount.  The aid reduction 
174.15  equals the product of the lesser of the excess reserve amount or 
174.16  the current year revenue under subdivision 1 times the ratio of 
174.17  the district's aid for the current year under subdivision 7 to 
174.18  the district's revenue for the current year under subdivision 
174.19  1.  The levy reduction equals the excess reserve amount minus 
174.20  the aid reduction.  For purposes of this paragraph, if a 
174.21  district does not levy the entire amount permitted under 
174.22  subdivision 5 or 6, the revenue under subdivision 1 must be 
174.23  reduced in proportion to the actual amount levied. 
174.24     (c) Notwithstanding paragraph (a), for fiscal year 2003, 
174.25  the excess reserve amount shall be computed using the balances 
174.26  in a district's community education reserve account and 
174.27  unreserved/undesignated community service fund account on June 
174.28  30, 2002.  For fiscal year 2004, the excess reserve amount shall 
174.29  be computed using the adjusted average balances in a district's 
174.30  community education reserve account and unreserved/undesignated 
174.31  community service fund account on June 30, 2002, and June 30, 
174.32  2003. 
174.33     Sec. 9.  Minnesota Statutes 2002, section 124D.68, 
174.34  subdivision 3, is amended to read: 
174.35     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
174.36  according to subdivision 2 may enroll in area learning centers 
175.1   under sections 123A.05 to 123A.08, or according to section 
175.2   122A.164. 
175.3      (b) A pupil who is eligible according to subdivision 2 and 
175.4   who is between the ages of 16 and 21 may enroll in postsecondary 
175.5   courses under section 124D.09. 
175.6      (c) A pupil who is eligible under subdivision 2, may enroll 
175.7   in any public elementary or secondary education program.  
175.8   However, a person who is eligible according to subdivision 2, 
175.9   clause (b), may enroll only if the school board has adopted a 
175.10  resolution approving the enrollment. 
175.11     (d) A pupil who is eligible under subdivision 2, may enroll 
175.12  in any nonpublic, nonsectarian school that has contracted with 
175.13  the serving school district to provide educational services. 
175.14     (e) A pupil who is between the ages of 16 and 21 may enroll 
175.15  in any adult basic education programs approved under section 
175.16  124D.52 and operated under the community education program 
175.17  contained in section 124D.19. 
175.18     Sec. 10.  Minnesota Statutes 2002, section 125A.07, is 
175.19  amended to read: 
175.20     125A.07 [RULES OF COMMISSIONER.] 
175.21     (a) As defined in this paragraph, the commissioner must 
175.22  adopt rules relative to qualifications of essential personnel, 
175.23  courses of study, methods of instruction, pupil eligibility, 
175.24  size of classes, rooms, equipment, supervision, parent 
175.25  consultation, and other necessary rules for instruction of 
175.26  children with a disability.  These rules must provide standards 
175.27  and procedures appropriate for the implementation of and within 
175.28  the limitations of sections 125A.08 and 125A.09 125A.091.  These 
175.29  rules must also provide standards for the discipline, control, 
175.30  management, and protection of children with a disability.  The 
175.31  commissioner must not adopt rules for pupils served primarily in 
175.32  the regular classroom establishing either case loads or the 
175.33  maximum number of pupils that may be assigned to special 
175.34  education teachers.  The commissioner, in consultation with the 
175.35  Departments of Health and Human Services, must adopt permanent 
175.36  rules for instruction and services for children under age five 
176.1   and their families.  These rules are binding on state and local 
176.2   education, health, and human services agencies.  The 
176.3   commissioner must adopt rules to determine eligibility for 
176.4   special education services.  The rules must include procedures 
176.5   and standards by which to grant variances for experimental 
176.6   eligibility criteria.  The commissioner must, according to 
176.7   section 14.05, subdivision 4, notify a district applying for a 
176.8   variance from the rules within 45 calendar days of receiving the 
176.9   request whether the request for the variance has been granted or 
176.10  denied.  If a request is denied, the commissioner must specify 
176.11  the program standards used to evaluate the request and the 
176.12  reasons for denying the request.  
176.13     (b) As provided in this paragraph, the state's regulatory 
176.14  scheme should support schools by assuring that all state special 
176.15  education rules adopted by the commissioner result in one or 
176.16  more of the following outcomes: 
176.17     (1) increased time available to teachers and, where 
176.18  appropriate, to support staff including school nurses for 
176.19  educating students through direct and indirect instruction; 
176.20     (2) consistent and uniform access to effective education 
176.21  programs for students with disabilities throughout the state; 
176.22     (3) reduced inequalities and conflict, appropriate due 
176.23  process hearing procedures and reduced court actions related to 
176.24  the delivery of special education instruction and services for 
176.25  students with disabilities; 
176.26     (4) clear expectations for service providers and for 
176.27  students with disabilities; 
176.28     (5) increased accountability for all individuals and 
176.29  agencies that provide instruction and other services to students 
176.30  with disabilities; 
176.31     (6) greater focus for the state and local resources 
176.32  dedicated to educating students with disabilities; and 
176.33     (7) clearer standards for evaluating the effectiveness of 
176.34  education and support services for students with disabilities. 
176.35     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
176.36  125A.091, subdivision 5, is amended to read: 
177.1      Subd. 5.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
177.2   district must not proceed with the initial evaluation of a 
177.3   child, the initial placement of a child in a special education 
177.4   program, or the initial provision of special education services 
177.5   for a child without the prior written consent of the child's 
177.6   parent.  A district may not override the written refusal of a 
177.7   parent to consent to an initial evaluation or reevaluation. 
177.8      (b) A parent, after consulting with health care, education, 
177.9   or other professional providers, may agree or disagree to 
177.10  provide the parent's child with sympathomimetic medications 
177.11  unless section 144.344 applies. 
177.12     Sec. 12.  Minnesota Statutes 2002, section 125A.46, is 
177.13  amended to read: 
177.14     125A.46 [DUE PROCESS HEARINGS.] 
177.15     The procedures for due process hearings and appeals must be 
177.16  the same as those in section 125A.09 125A.091.  The 
177.17  responsibility for payment of costs and conducting due process 
177.18  hearings and appeals shall be allocated to the appropriate 
177.19  agency in accordance with sections 125A.30, 125A.39, and 125A.42.
177.20     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
177.21  125A.75, subdivision 8, is amended to read: 
177.22     Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
177.23  year 1999 and thereafter, the commissioner of education, or the 
177.24  commissioner's designee, shall use state funds to pay school 
177.25  districts for the administrative costs of a due process hearing 
177.26  incurred under section 125A.09 125A.091, subdivisions 6, 10 12, 
177.27  13, and 11 24, including hearing officer fees, court reporter 
177.28  fees, mileage costs, transcript costs, interpreter and 
177.29  transliterator fees, independent evaluations ordered by the 
177.30  hearing officer, and rental of hearing rooms, but not including 
177.31  district attorney fees.  To receive state aid under this 
177.32  paragraph, a school district shall submit to the commissioner by 
177.33  August 1 an itemized list of unreimbursed actual costs for fees 
177.34  and other expenses under this paragraph incurred after June 30, 
177.35  1998, for hearings completed during the previous fiscal year.  
177.36  State funds used for aid to school districts under this 
178.1   paragraph shall be based on the unreimbursed actual costs and 
178.2   fees submitted by a district. 
178.3      (b) The commissioner shall provide districts with a form on 
178.4   which to annually report litigation costs under this section and 
178.5   shall base aid estimates on preliminary reports submitted by the 
178.6   district during the current fiscal year. 
178.7      Sec. 14.  Minnesota Statutes 2003 Supplement, section 
178.8   126C.457, is amended to read: 
178.9      126C.457 [CAREER AND TECHNICAL LEVY.] 
178.10     A school district may levy an amount equal to the greater 
178.11  of (1) $10,000, or (2) the district's fiscal year 2001 
178.12  entitlement for career and technical aid under Minnesota 
178.13  Statutes 2000, section 124D.453.  The district must recognize 
178.14  the full amount of this levy as revenue for the fiscal year in 
178.15  which it is certified.  Revenue received under this section must 
178.16  be reserved and used only for career and technical programs. 
178.17     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
178.18  127A.41, subdivision 9, is amended to read: 
178.19     Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
178.20  PROGRAMS.] If a direct appropriation from the general fund to 
178.21  the Department of Education for an education aid or grant 
178.22  authorized under section 124D.135, 124D.16, 124D.20, 124D.21, 
178.23  124D.22, 124D.52, 124D.531, 124D.54, 124D.55, or 124D.56 exceeds 
178.24  the amount required, the commissioner of education may transfer 
178.25  the excess to any education aid or grant appropriation that is 
178.26  insufficiently funded under these sections.  Excess 
178.27  appropriations shall be allocated proportionately among aids or 
178.28  grants that have insufficient appropriations.  The commissioner 
178.29  of finance shall make the necessary transfers among 
178.30  appropriations according to the determinations of the 
178.31  commissioner of education.  If the amount of the direct 
178.32  appropriation for the aid or grant plus the amount transferred 
178.33  according to this subdivision is insufficient, the commissioner 
178.34  shall prorate the available amount among eligible districts.  
178.35  The state is not obligated for any additional amounts. 
178.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
179.1      Sec. 16.  Minnesota Statutes 2002, section 260A.01, is 
179.2   amended to read: 
179.3      260A.01 [TRUANCY PROGRAMS AND SERVICES.] 
179.4      (a) The programs in this chapter are designed to provide a 
179.5   continuum of intervention and services to support families and 
179.6   children in keeping children in school and combating truancy and 
179.7   educational neglect.  School districts, county attorneys, and 
179.8   law enforcement may establish the programs and coordinate them 
179.9   with other community-based truancy services in order to provide 
179.10  the necessary and most effective intervention for children and 
179.11  their families.  This continuum of intervention and services 
179.12  involves progressively intrusive intervention, beginning with 
179.13  strong service-oriented efforts at the school and community 
179.14  level and involving the court's authority only when necessary. 
179.15     (b) Consistent with section 125A.09 125A.091, subdivision 3 
179.16  5, a parent's refusal to provide the parent's child with 
179.17  sympathomimetic medications does not constitute educational 
179.18  neglect.  
179.19     Sec. 17.  Minnesota Statutes 2002, section 260C.163, 
179.20  subdivision 11, is amended to read: 
179.21     Subd. 11.  [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 
179.22  NEGLECT.] (a) A child's absence from school is presumed to be 
179.23  due to the parent's, guardian's, or custodian's failure to 
179.24  comply with compulsory instruction laws if the child is under 12 
179.25  years old and the school has made appropriate efforts to resolve 
179.26  the child's attendance problems; this presumption may be 
179.27  rebutted based on a showing by clear and convincing evidence 
179.28  that the child is habitually truant.  A child's absence from 
179.29  school without lawful excuse, when the child is 12 years old or 
179.30  older, is presumed to be due to the child's intent to be absent 
179.31  from school; this presumption may be rebutted based on a showing 
179.32  by clear and convincing evidence that the child's absence is due 
179.33  to the failure of the child's parent, guardian, or custodian to 
179.34  comply with compulsory instruction laws, sections 120A.22 and 
179.35  120A.24. 
179.36     (b) Consistent with section 125A.09 125A.091, subdivision 3 
180.1   5, a parent's refusal to provide the parent's child with 
180.2   sympathomimetic medications does not constitute educational 
180.3   neglect. 
180.4      Sec. 18.  Minnesota Statutes 2003 Supplement, section 
180.5   626.556, subdivision 2, is amended to read: 
180.6      Subd. 2.  [DEFINITIONS.] As used in this section, the 
180.7   following terms have the meanings given them unless the specific 
180.8   content indicates otherwise: 
180.9      (a) "Sexual abuse" means the subjection of a child by a 
180.10  person responsible for the child's care, by a person who has a 
180.11  significant relationship to the child, as defined in section 
180.12  609.341, or by a person in a position of authority, as defined 
180.13  in section 609.341, subdivision 10, to any act which constitutes 
180.14  a violation of section 609.342 (criminal sexual conduct in the 
180.15  first degree), 609.343 (criminal sexual conduct in the second 
180.16  degree), 609.344 (criminal sexual conduct in the third degree), 
180.17  609.345 (criminal sexual conduct in the fourth degree), or 
180.18  609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
180.19  abuse also includes any act which involves a minor which 
180.20  constitutes a violation of prostitution offenses under sections 
180.21  609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
180.22  sexual abuse.  
180.23     (b) "Person responsible for the child's care" means (1) an 
180.24  individual functioning within the family unit and having 
180.25  responsibilities for the care of the child such as a parent, 
180.26  guardian, or other person having similar care responsibilities, 
180.27  or (2) an individual functioning outside the family unit and 
180.28  having responsibilities for the care of the child such as a 
180.29  teacher, school administrator, other school employees or agents, 
180.30  or other lawful custodian of a child having either full-time or 
180.31  short-term care responsibilities including, but not limited to, 
180.32  day care, babysitting whether paid or unpaid, counseling, 
180.33  teaching, and coaching.  
180.34     (c) "Neglect" means: 
180.35     (1) failure by a person responsible for a child's care to 
180.36  supply a child with necessary food, clothing, shelter, health, 
181.1   medical, or other care required for the child's physical or 
181.2   mental health when reasonably able to do so; 
181.3      (2) failure to protect a child from conditions or actions 
181.4   that seriously endanger the child's physical or mental health 
181.5   when reasonably able to do so; 
181.6      (3) failure to provide for necessary supervision or child 
181.7   care arrangements appropriate for a child after considering 
181.8   factors as the child's age, mental ability, physical condition, 
181.9   length of absence, or environment, when the child is unable to 
181.10  care for the child's own basic needs or safety, or the basic 
181.11  needs or safety of another child in their care; 
181.12     (4) failure to ensure that the child is educated as defined 
181.13  in sections 120A.22 and 260C.163, subdivision 11, which does not 
181.14  include a parent's refusal to provide the parent's child with 
181.15  sympathomimetic medications, consistent with section 
181.16  125A.09 125A.091, subdivision 3 5; 
181.17     (5) nothing in this section shall be construed to mean that 
181.18  a child is neglected solely because the child's parent, 
181.19  guardian, or other person responsible for the child's care in 
181.20  good faith selects and depends upon spiritual means or prayer 
181.21  for treatment or care of disease or remedial care of the child 
181.22  in lieu of medical care; except that a parent, guardian, or 
181.23  caretaker, or a person mandated to report pursuant to 
181.24  subdivision 3, has a duty to report if a lack of medical care 
181.25  may cause serious danger to the child's health.  This section 
181.26  does not impose upon persons, not otherwise legally responsible 
181.27  for providing a child with necessary food, clothing, shelter, 
181.28  education, or medical care, a duty to provide that care; 
181.29     (6) prenatal exposure to a controlled substance, as defined 
181.30  in section 253B.02, subdivision 2, used by the mother for a 
181.31  nonmedical purpose, as evidenced by withdrawal symptoms in the 
181.32  child at birth, results of a toxicology test performed on the 
181.33  mother at delivery or the child at birth, or medical effects or 
181.34  developmental delays during the child's first year of life that 
181.35  medically indicate prenatal exposure to a controlled substance; 
181.36     (7) "medical neglect" as defined in section 260C.007, 
182.1   subdivision 6, clause (5); 
182.2      (8) chronic and severe use of alcohol or a controlled 
182.3   substance by a parent or person responsible for the care of the 
182.4   child that adversely affects the child's basic needs and safety; 
182.5   or 
182.6      (9) emotional harm from a pattern of behavior which 
182.7   contributes to impaired emotional functioning of the child which 
182.8   may be demonstrated by a substantial and observable effect in 
182.9   the child's behavior, emotional response, or cognition that is 
182.10  not within the normal range for the child's age and stage of 
182.11  development, with due regard to the child's culture. 
182.12     (d) "Physical abuse" means any physical injury, mental 
182.13  injury, or threatened injury, inflicted by a person responsible 
182.14  for the child's care on a child other than by accidental means, 
182.15  or any physical or mental injury that cannot reasonably be 
182.16  explained by the child's history of injuries, or any aversive or 
182.17  deprivation procedures, or regulated interventions, that have 
182.18  not been authorized under section 121A.67 or 245.825.  Abuse 
182.19  does not include reasonable and moderate physical discipline of 
182.20  a child administered by a parent or legal guardian which does 
182.21  not result in an injury.  Abuse does not include the use of 
182.22  reasonable force by a teacher, principal, or school employee as 
182.23  allowed by section 121A.582.  Actions which are not reasonable 
182.24  and moderate include, but are not limited to, any of the 
182.25  following that are done in anger or without regard to the safety 
182.26  of the child: 
182.27     (1) throwing, kicking, burning, biting, or cutting a child; 
182.28     (2) striking a child with a closed fist; 
182.29     (3) shaking a child under age three; 
182.30     (4) striking or other actions which result in any 
182.31  nonaccidental injury to a child under 18 months of age; 
182.32     (5) unreasonable interference with a child's breathing; 
182.33     (6) threatening a child with a weapon, as defined in 
182.34  section 609.02, subdivision 6; 
182.35     (7) striking a child under age one on the face or head; 
182.36     (8) purposely giving a child poison, alcohol, or dangerous, 
183.1   harmful, or controlled substances which were not prescribed for 
183.2   the child by a practitioner, in order to control or punish the 
183.3   child; or other substances that substantially affect the child's 
183.4   behavior, motor coordination, or judgment or that results in 
183.5   sickness or internal injury, or subjects the child to medical 
183.6   procedures that would be unnecessary if the child were not 
183.7   exposed to the substances; 
183.8      (9) unreasonable physical confinement or restraint not 
183.9   permitted under section 609.379, including but not limited to 
183.10  tying, caging, or chaining; or 
183.11     (10) in a school facility or school zone, an act by a 
183.12  person responsible for the child's care that is a violation 
183.13  under section 121A.58. 
183.14     (e) "Report" means any report received by the local welfare 
183.15  agency, police department, county sheriff, or agency responsible 
183.16  for assessing or investigating maltreatment pursuant to this 
183.17  section. 
183.18     (f) "Facility" means a licensed or unlicensed day care 
183.19  facility, residential facility, agency, hospital, sanitarium, or 
183.20  other facility or institution required to be licensed under 
183.21  sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
183.22  chapter 245B; or a school as defined in sections 120A.05, 
183.23  subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
183.24  personal care provider organization as defined in sections 
183.25  256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
183.26     (g) "Operator" means an operator or agency as defined in 
183.27  section 245A.02.  
183.28     (h) "Commissioner" means the commissioner of human services.
183.29     (i) "Assessment" includes authority to interview the child, 
183.30  the person or persons responsible for the child's care, the 
183.31  alleged perpetrator, and any other person with knowledge of the 
183.32  abuse or neglect for the purpose of gathering the facts, 
183.33  assessing the risk to the child, and formulating a plan.  
183.34     (j) "Practice of social services," for the purposes of 
183.35  subdivision 3, includes but is not limited to employee 
183.36  assistance counseling and the provision of guardian ad litem and 
184.1   parenting time expeditor services.  
184.2      (k) "Mental injury" means an injury to the psychological 
184.3   capacity or emotional stability of a child as evidenced by an 
184.4   observable or substantial impairment in the child's ability to 
184.5   function within a normal range of performance and behavior with 
184.6   due regard to the child's culture. 
184.7      (l) "Threatened injury" means a statement, overt act, 
184.8   condition, or status that represents a substantial risk of 
184.9   physical or sexual abuse or mental injury.  Threatened injury 
184.10  includes, but is not limited to, exposing a child to a person 
184.11  responsible for the child's care, as defined in paragraph (b), 
184.12  clause (1), who has: 
184.13     (1) subjected a child to, or failed to protect a child 
184.14  from, an overt act or condition that constitutes egregious harm, 
184.15  as defined in section 260C.007, subdivision 14, or a similar law 
184.16  of another jurisdiction; 
184.17     (2) been found to be palpably unfit under section 260C.301, 
184.18  paragraph (b), clause (4), or a similar law of another 
184.19  jurisdiction; 
184.20     (3) committed an act that has resulted in an involuntary 
184.21  termination of parental rights under section 260C.301, or a 
184.22  similar law of another jurisdiction; or 
184.23     (4) committed an act that has resulted in the involuntary 
184.24  transfer of permanent legal and physical custody of a child to a 
184.25  relative under section 260C.201, subdivision 11, paragraph (d), 
184.26  clause (1), or a similar law of another jurisdiction. 
184.27     (m) Persons who conduct assessments or investigations under 
184.28  this section shall take into account accepted child-rearing 
184.29  practices of the culture in which a child participates and 
184.30  accepted teacher discipline practices, which are not injurious 
184.31  to the child's health, welfare, and safety. 
184.32     Sec. 19.  Minnesota Statutes 2002, section 631.40, 
184.33  subdivision 4, is amended to read: 
184.34     Subd. 4.  [LICENSED TEACHERS.] When a person is convicted 
184.35  of child abuse, as defined in section 609.185, or sexual abuse 
184.36  under section 609.342, 609.343, 609.344, 609.345, 609.3451, 
185.1   subdivision 3, or 617.23, subdivision 3, the court shall 
185.2   determine whether the person is licensed to teach under chapter 
185.3   122A.  If the offender is a licensed teacher, the court 
185.4   administrator shall send a certified copy of the conviction to 
185.5   the Board of Teaching or the state Board of Education, whichever 
185.6   has jurisdiction over the teacher's license, within ten days 
185.7   after the conviction. 
185.8      Sec. 20.  Laws 2003, chapter 130, section 12, is amended to 
185.9   read: 
185.10     Sec. 12.  [REVISOR INSTRUCTION.] 
185.11     (a) In Minnesota Statutes, the revisor shall renumber 
185.12  section 119A.02 119A.01, subdivision 2, as 120A.02, paragraph 
185.13  (a), and section 120A.02 as 120A.02, paragraph (b). 
185.14     (b) In Minnesota Statutes and Minnesota Rules, the revisor 
185.15  shall change the term "children, families, and learning" to 
185.16  "education." 
185.17     Sec. 21.  [REVISOR INSTRUCTION.] 
185.18     In the next edition of Minnesota Rules, chapter 3530, the 
185.19  revisor shall change the term "Office of Public Libraries and 
185.20  Interlibrary Cooperation" to "Library Development and Services" 
185.21  and "OPLIC" to "LDS." 
185.22     Sec. 22.  [REPEALER; REVIVAL OF STATUTE.] 
185.23     (a) Minnesota Statutes 2002, sections 124D.91 and 124D.92, 
185.24  are repealed. 
185.25     (b) Minnesota Statutes 2002, section 134.47, subdivision 3, 
185.26  is repealed effective retroactive to June 30, 2003.  
185.27  Notwithstanding Minnesota Statutes, section 645.36, Minnesota 
185.28  Statutes 2002, section 134.47, subdivisions 1 and 2, are revived 
185.29  effective retroactively from June 30, 2003. 
185.30                             ARTICLE 13 
185.31             K-12 SCIENCE AND SOCIAL STUDIES STANDARDS 
185.32     Section 1.  Minnesota Statutes 2003 Supplement, section 
185.33  120B.021, subdivision 3, is amended to read: 
185.34     Subd. 3.  [RULEMAKING.] (a) The commissioner, consistent 
185.35  with the requirements of this section and section 120B.022, must 
185.36  adopt statewide rules under section 14.389 for implementing 
186.1   statewide rigorous core academic standards in language arts, 
186.2   mathematics, science, social studies, and the arts.  After the 
186.3   rules authorized under this paragraph are initially adopted, the 
186.4   commissioner may not amend or repeal these rules nor adopt new 
186.5   rules on the same topic without specific legislative 
186.6   authorization.  These The academic standards for language arts, 
186.7   mathematics, and the arts must be implemented for all students 
186.8   beginning in the 2003-2004 school year.  The academic standards 
186.9   for science must be implemented for all students beginning in 
186.10  the 2004-2005 school year and the academic standards for social 
186.11  studies must be implemented for all students beginning in the 
186.12  2005-2006 school year. 
186.13     (b) The rules authorized under this section are not subject 
186.14  to section 14.127.  
186.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
186.16  following final enactment.  
186.17     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
186.18  120B.021, is amended by adding a subdivision to read: 
186.19     Subd. 4.  [STATE MUST AFFIRM NO CHILD LEFT BEHIND ACT.] The 
186.20  commissioner of the Minnesota Department of Education by 
186.21  February 15, 2005, must nullify and revoke the consolidated 
186.22  state plan submitted to the federal Department of Education for 
186.23  implementing the federal No Child Left Behind Act of 2001 and 
186.24  must not renew any existing contract or agreement and must not 
186.25  enter into any new contract or agreement related to implementing 
186.26  the federal act if: 
186.27     (1) the state does not enact legislation before that date 
186.28  specifically affirming Minnesota's intent to implement the 
186.29  federal act; and 
186.30     (2) the federal government enacts a law that abolishes the 
186.31  federal Department of Education before that date. 
186.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
186.33  following final enactment and applies to all contracts and 
186.34  agreements renewed or entered into after February 15, 2005. 
186.35     Sec. 3.  [MINNESOTA'S HIGH ACADEMIC STANDARDS.] 
186.36     (a) The standards for science and social studies adopted by 
187.1   the commissioner of education under Minnesota Statutes, section 
187.2   120B.021, must be identical to: 
187.3      (1) the K-12 standards for science contained in the 
187.4   document labeled "Minnesota Academic Standards, Science K-12, 
187.5   December 19, 2003, Minnesota Academic Standards Committee, 
187.6   Minnesota Department of Education"; and 
187.7      (2) the K-12 standards for social studies contained in the 
187.8   document labeled "Minnesota Academic Standards, Social Studies 
187.9   K-12, February 17, 2004, Minnesota Academic Standards Committee, 
187.10  Minnesota Department of Education." 
187.11     (b) The K-12 standards documents must be deposited with the 
187.12  Minnesota Revisor of Statutes, the Legislative Reference 
187.13  Library, and the Minnesota State Law Library, where the 
187.14  documents shall be maintained until the commissioner adopts 
187.15  rules for implementing statewide rigorous core academic 
187.16  standards in science and social studies under Minnesota 
187.17  Statutes, section 120B.021, subdivision 3.  The revisor must 
187.18  determine that the rules are identical to the documents 
187.19  deposited with the revisor under this section before the revisor 
187.20  approves the form of the rules.  In approving the form of the 
187.21  rules, the revisor may make any needed grammatical and form 
187.22  changes. 
187.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
187.24  following final enactment.  
187.25     Sec. 4.  [K-12 SOCIAL STUDIES STANDARDS RULES.] 
187.26     (a) Beginning no later than July 1, 2004, the education 
187.27  commissioner shall adopt the K-12 academic social studies 
187.28  standards incorporated by reference under this act using the 
187.29  expedited process under Minnesota Statutes, section 14.389.  
187.30     (b) In addition to technical changes, corrections, 
187.31  clarifications, and similarly needed revisions, the revisor 
187.32  shall modify the K-12 academic social studies standards as 
187.33  indicated: 
187.34     Page 10, line 4, delete "place the 4-6 standards at grade 
187.35  levels that accommodate their particular curriculum, provided 
187.36  that all standards have been mastered by the end of grade 6." 
188.1   and insert "organize the grades 4-8 standards in one of two 
188.2   ways:  (1) banding grades 4-5 together and grades 6-7-8 
188.3   together; or (2) banding grades 4-5-6 together and grades 7-8 
188.4   together.  The standards should be mastered by the end of the 
188.5   highest grade in the band". 
188.6      Page 13, line 4, delete "place the 4-6 standards at grade 
188.7   levels that accommodate their particular curriculum, provided 
188.8   that all standards have been mastered by the end of grade 6." 
188.9   and insert "organize the grades 4-8 standards in one of two 
188.10  ways:  (1) banding grades 4-5 together and grades 6-7-8 
188.11  together; or (2) banding grades 4-5-6 together and grades 7-8 
188.12  together.  The standards should be mastered by the end of the 
188.13  highest grade in the band." 
188.14     Page 18, line 4, delete "place the 4-6 standards at grade 
188.15  levels that accommodate their particular curriculum, provided 
188.16  that all standards have been mastered by the end of grade 6." 
188.17  and insert "organize the grades 4-8 standards in one of two 
188.18  ways:  (1) banding grades 4-5 together and grades 6-7-8 
188.19  together; or (2) banding grades 4-5-6 together and grades 7-8 
188.20  together.  The standards should be mastered by the end of the 
188.21  highest grade in the band". 
188.22     Page 19, Strand I, Sub-Strand C, delete "(1810-1860)" and 
188.23  insert "(1810-1890)". 
188.24     Page 19, Strand I, Sub-Strand C, Standard, delete "early". 
188.25     Page 19, Strand I, Sub-Strand C, Examples 1, delete 
188.26  "immigrants, influence of" and insert ", German and". 
188.27     Page 20, Strand I, Sub-Strand E, Examples 3, delete 
188.28  "missionaries". 
188.29     Page 26, line 4, delete "place the 7-8 standards at grade 
188.30  levels that accommodate their particular curriculum, provided 
188.31  that all standards have been mastered by the end of grade 8." 
188.32  and insert "organize the grades 4-8 standards in one of two 
188.33  ways:  (1) banding grades 4-5 together and grades 6-7-8 
188.34  together; or (2) banding grades 4-5-6 together and grades 7-8 
188.35  together.  The standards should be mastered by the end of the 
188.36  highest grade in the band." 
189.1      Page 32, line 4, delete "place the 7-8 standards at grade 
189.2   levels that accommodate their particular curriculum, provided 
189.3   that all standards have been mastered by the end of grade 8." 
189.4   and insert "organize the grades 4-8 standards in one of two 
189.5   ways:  (1) banding grades 4-5 together and grades 6-7-8 
189.6   together; or (2) banding grades 4-5-6 together and grades 7-8 
189.7   together.  The standards should be mastered by the end of the 
189.8   highest grade in the band." 
189.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
189.10  following final enactment.  
189.11     Sec. 5.  [K-12 SCIENCE STANDARDS RULES.] 
189.12     (a) Beginning no later than July 1, 2004, the education 
189.13  commissioner shall adopt the K-12 academic science standards 
189.14  incorporated by reference under this act using the expedited 
189.15  process under Minnesota Statutes, section 14.389.  
189.16     (b) In addition to technical changes, corrections, 
189.17  clarifications, and similarly needed revisions, the revisor 
189.18  shall modify the K-12 academic science standards as indicated: 
189.19     Page 1, below the word "Science" in the title, insert "The 
189.20  grade level designations in the Minnesota Academic Standards for 
189.21  Science are strongly recommended.  However, school districts may 
189.22  place the (K-2, 3-5, 6-8) standards at grade levels that 
189.23  accommodate their particular curriculum.  The standards should 
189.24  be mastered by the end of the highest grade in the band." 
189.25     Page 17, Grade 9-12, Strand II, Sub-Strand A, after 
189.26  Benchmarks 9, insert: 
189.27     "10.  The student will be able to explain how scientific 
189.28  and technological innovations as well as new evidence can 
189.29  challenge portions of or entire accepted theories and models 
189.30  including, but not limited to, atomic theory." 
189.31     Page 19, Grade 9-12, Strand III, Sub-Strand A, after 
189.32  Benchmarks 7, insert: 
189.33     "The student will be able to explain how scientific and 
189.34  technological innovations as well as new evidence can challenge 
189.35  portions of or entire accepted theories and models including, 
189.36  but not limited to, plate tectonic theory and big bang theory." 
190.1      Page 22, Grade 9-12, Strand IV, Sub-Strand E, Benchmarks 1, 
190.2   after the period, insert: 
190.3      "The student will be able to explain how scientific and 
190.4   technological innovations as well as new evidence can challenge 
190.5   portions of or entire accepted theories and models including, 
190.6   but not limited to, cell theory, theory of evolution, and germ 
190.7   theory of disease." 
190.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
190.9   following final enactment. 
190.10                             ARTICLE 14 
190.11                          HIGHER EDUCATION 
190.12  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
190.13     The sums in the columns marked "APPROPRIATIONS" are added 
190.14  to, or, if shown in parentheses, are subtracted from the 
190.15  appropriations in Laws 2003, chapter 133, or other law to the 
190.16  specified agencies.  The appropriations are from the general 
190.17  fund, or other named fund, to the agencies and for the purposes 
190.18  specified.  The figure "2004" or "2005" means that the addition 
190.19  to or subtraction from the appropriations listed under the 
190.20  figure are for the fiscal year ending June 30, 2004, or June 30, 
190.21  2005, respectively.  If only one figure is shown in the text for 
190.22  the specified purpose, the addition or subtraction is for 2004 
190.23  unless the context indicates another fiscal year. 
190.24                          SUMMARY BY FUND
190.25                            2004          2005           TOTAL
190.26  General           ($   3,600,000) ($  3,684,000) ($  7,284,000)
190.27                   SUMMARY BY AGENCY - ALL FUNDS 
190.28                            2004          2005           TOTAL
190.29  Higher Education 
190.30  Services Office   ($   3,600,000) ($  3,684,000) ($  7,284,000) 
190.31                                             APPROPRIATIONS 
190.32                                         Available for the Year 
190.33                                             Ending June 30 
190.34                                            2004         2005 
190.35  Sec. 2.  HIGHER EDUCATION SERVICES 
190.36  OFFICE  
190.37  Subdivision 1.  Total Appropriation 
190.38  Changes                          ($  3,600,000)  ($  3,684,000)
190.39  Subd. 2.  State Grants                                          
191.1   Of the amount appropriated for the 
191.2   state grant program in Laws 2003, 
191.3   chapter 133, article 1, section 2, 
191.4   subdivision 2, up to $400,000 may be 
191.5   spent to upgrade the computer database 
191.6   used to make projections for the state 
191.7   grant program.  This amount is 
191.8   available until June 30, 2007. 
191.9   Subd. 3.  Child Care Grants
191.10  The Higher Education Services Office 
191.11  must require postsecondary institutions 
191.12  participating in the child care program 
191.13  under Minnesota Statutes, section 
191.14  136A.125 to obtain documentation of 
191.15  child care services provided and rates 
191.16  charged for each child care grant 
191.17  recipient.  In fiscal year 2005, the 
191.18  services office must periodically 
191.19  verify information provided to 
191.20  institutions by child care providers.  
191.21  The services office must report on the 
191.22  effectiveness of the verification 
191.23  process to the higher education 
191.24  committees of the legislature by 
191.25  February 2, 2005. 
191.26  Subd. 4.  Interstate Tuition
191.27  Reciprocity                         (3,600,000)     (3,600,000) 
191.28  Beginning in fiscal year 2006, the base 
191.29  appropriation for this program is 
191.30  $2,000,000 annually.  
191.31  Subd. 5.  Agency            
191.32  Administration                           -0-           (84,000) 
191.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
191.34  following final enactment.  
191.35     Sec. 3.  Minnesota Statutes 2003 Supplement, section 13.46, 
191.36  subdivision 2, is amended to read: 
191.37     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
191.38  a statute specifically provides a different classification, data 
191.39  on individuals collected, maintained, used, or disseminated by 
191.40  the welfare system is private data on individuals, and shall not 
191.41  be disclosed except:  
191.42     (1) according to section 13.05; 
191.43     (2) according to court order; 
191.44     (3) according to a statute specifically authorizing access 
191.45  to the private data; 
191.46     (4) to an agent of the welfare system, including a law 
191.47  enforcement person, attorney, or investigator acting for it in 
191.48  the investigation or prosecution of a criminal or civil 
191.49  proceeding relating to the administration of a program; 
192.1      (5) to personnel of the welfare system who require the data 
192.2   to determine eligibility, amount of assistance, and the need to 
192.3   provide services of additional programs to the individual; 
192.4      (6) to administer federal funds or programs; 
192.5      (7) between personnel of the welfare system working in the 
192.6   same program; 
192.7      (8) the amounts of cash public assistance and relief paid 
192.8   to welfare recipients in this state, including their names, 
192.9   Social Security numbers, income, addresses, and other data as 
192.10  required, upon request by the Department of Revenue to 
192.11  administer the property tax refund law, supplemental housing 
192.12  allowance, early refund of refundable tax credits, and the 
192.13  income tax.  "Refundable tax credits" means the dependent care 
192.14  credit under section 290.067, the Minnesota working family 
192.15  credit under section 290.0671, the property tax refund under 
192.16  section 290A.04, and, if the required federal waiver or waivers 
192.17  are granted, the federal earned income tax credit under section 
192.18  32 of the Internal Revenue Code; 
192.19     (9) between the Department of Human Services, the 
192.20  Department of Education, and the Department of Economic Security 
192.21  for the purpose of monitoring the eligibility of the data 
192.22  subject for unemployment benefits, for any employment or 
192.23  training program administered, supervised, or certified by that 
192.24  agency, for the purpose of administering any rehabilitation 
192.25  program or child care assistance program, whether alone or in 
192.26  conjunction with the welfare system, or to monitor and evaluate 
192.27  the Minnesota family investment program by exchanging data on 
192.28  recipients and former recipients of food support, cash 
192.29  assistance under chapter 256, 256D, 256J, or 256K, child care 
192.30  assistance under chapter 119B, or medical programs under chapter 
192.31  256B, 256D, or 256L; 
192.32     (10) to appropriate parties in connection with an emergency 
192.33  if knowledge of the information is necessary to protect the 
192.34  health or safety of the individual or other individuals or 
192.35  persons; 
192.36     (11) data maintained by residential programs as defined in 
193.1   section 245A.02 may be disclosed to the protection and advocacy 
193.2   system established in this state according to Part C of Public 
193.3   Law 98-527 to protect the legal and human rights of persons with 
193.4   mental retardation or other related conditions who live in 
193.5   residential facilities for these persons if the protection and 
193.6   advocacy system receives a complaint by or on behalf of that 
193.7   person and the person does not have a legal guardian or the 
193.8   state or a designee of the state is the legal guardian of the 
193.9   person; 
193.10     (12) to the county medical examiner or the county coroner 
193.11  for identifying or locating relatives or friends of a deceased 
193.12  person; 
193.13     (13) data on a child support obligor who makes payments to 
193.14  the public agency may be disclosed to the Higher Education 
193.15  Services Office to the extent necessary to determine eligibility 
193.16  under section sections 136A.121, subdivision 2, clause (5), and 
193.17  136A.125, subdivision 2, clause (8); 
193.18     (14) participant Social Security numbers and names 
193.19  collected by the telephone assistance program may be disclosed 
193.20  to the Department of Revenue to conduct an electronic data match 
193.21  with the property tax refund database to determine eligibility 
193.22  under section 237.70, subdivision 4a; 
193.23     (15) the current address of a Minnesota family investment 
193.24  program participant may be disclosed to law enforcement officers 
193.25  who provide the name of the participant and notify the agency 
193.26  that: 
193.27     (i) the participant: 
193.28     (A) is a fugitive felon fleeing to avoid prosecution, or 
193.29  custody or confinement after conviction, for a crime or attempt 
193.30  to commit a crime that is a felony under the laws of the 
193.31  jurisdiction from which the individual is fleeing; or 
193.32     (B) is violating a condition of probation or parole imposed 
193.33  under state or federal law; 
193.34     (ii) the location or apprehension of the felon is within 
193.35  the law enforcement officer's official duties; and 
193.36     (iii)  the request is made in writing and in the proper 
194.1   exercise of those duties; 
194.2      (16) the current address of a recipient of general 
194.3   assistance or general assistance medical care may be disclosed 
194.4   to probation officers and corrections agents who are supervising 
194.5   the recipient and to law enforcement officers who are 
194.6   investigating the recipient in connection with a felony level 
194.7   offense; 
194.8      (17) information obtained from food support applicant or 
194.9   recipient households may be disclosed to local, state, or 
194.10  federal law enforcement officials, upon their written request, 
194.11  for the purpose of investigating an alleged violation of the 
194.12  Food Stamp Act, according to Code of Federal Regulations, title 
194.13  7, section 272.1(c); 
194.14     (18) the address, Social Security number, and, if 
194.15  available, photograph of any member of a household receiving 
194.16  food support shall be made available, on request, to a local, 
194.17  state, or federal law enforcement officer if the officer 
194.18  furnishes the agency with the name of the member and notifies 
194.19  the agency that:  
194.20     (i) the member: 
194.21     (A) is fleeing to avoid prosecution, or custody or 
194.22  confinement after conviction, for a crime or attempt to commit a 
194.23  crime that is a felony in the jurisdiction the member is 
194.24  fleeing; 
194.25     (B) is violating a condition of probation or parole imposed 
194.26  under state or federal law; or 
194.27     (C) has information that is necessary for the officer to 
194.28  conduct an official duty related to conduct described in subitem 
194.29  (A) or (B); 
194.30     (ii) locating or apprehending the member is within the 
194.31  officer's official duties; and 
194.32     (iii) the request is made in writing and in the proper 
194.33  exercise of the officer's official duty; 
194.34     (19) the current address of a recipient of Minnesota family 
194.35  investment program, general assistance, general assistance 
194.36  medical care, or food support may be disclosed to law 
195.1   enforcement officers who, in writing, provide the name of the 
195.2   recipient and notify the agency that the recipient is a person 
195.3   required to register under section 243.166, but is not residing 
195.4   at the address at which the recipient is registered under 
195.5   section 243.166; 
195.6      (20) certain information regarding child support obligors 
195.7   who are in arrears may be made public according to section 
195.8   518.575; 
195.9      (21) data on child support payments made by a child support 
195.10  obligor and data on the distribution of those payments excluding 
195.11  identifying information on obligees may be disclosed to all 
195.12  obligees to whom the obligor owes support, and data on the 
195.13  enforcement actions undertaken by the public authority, the 
195.14  status of those actions, and data on the income of the obligor 
195.15  or obligee may be disclosed to the other party; 
195.16     (22) data in the work reporting system may be disclosed 
195.17  under section 256.998, subdivision 7; 
195.18     (23) to the Department of Education for the purpose of 
195.19  matching Department of Education student data with public 
195.20  assistance data to determine students eligible for free and 
195.21  reduced price meals, meal supplements, and free milk according 
195.22  to United States Code, title 42, sections 1758, 1761, 1766, 
195.23  1766a, 1772, and 1773; to allocate federal and state funds that 
195.24  are distributed based on income of the student's family; and to 
195.25  verify receipt of energy assistance for the telephone assistance 
195.26  plan; 
195.27     (24) the current address and telephone number of program 
195.28  recipients and emergency contacts may be released to the 
195.29  commissioner of health or a local board of health as defined in 
195.30  section 145A.02, subdivision 2, when the commissioner or local 
195.31  board of health has reason to believe that a program recipient 
195.32  is a disease case, carrier, suspect case, or at risk of illness, 
195.33  and the data are necessary to locate the person; 
195.34     (25) to other state agencies, statewide systems, and 
195.35  political subdivisions of this state, including the attorney 
195.36  general, and agencies of other states, interstate information 
196.1   networks, federal agencies, and other entities as required by 
196.2   federal regulation or law for the administration of the child 
196.3   support enforcement program; 
196.4      (26) to personnel of public assistance programs as defined 
196.5   in section 256.741, for access to the child support system 
196.6   database for the purpose of administration, including monitoring 
196.7   and evaluation of those public assistance programs; 
196.8      (27) to monitor and evaluate the Minnesota family 
196.9   investment program by exchanging data between the Departments of 
196.10  Human Services and Education, on recipients and former 
196.11  recipients of food support, cash assistance under chapter 256, 
196.12  256D, 256J, or 256K, child care assistance under chapter 119B, 
196.13  or medical programs under chapter 256B, 256D, or 256L; 
196.14     (28) to evaluate child support program performance and to 
196.15  identify and prevent fraud in the child support program by 
196.16  exchanging data between the Department of Human Services, 
196.17  Department of Revenue under section 270B.14, subdivision 1, 
196.18  paragraphs (a) and (b), without regard to the limitation of use 
196.19  in paragraph (c), Department of Health, Department of Economic 
196.20  Security, and other state agencies as is reasonably necessary to 
196.21  perform these functions; or 
196.22     (29) counties operating child care assistance programs 
196.23  under chapter 119B may disseminate data on program participants, 
196.24  applicants, and providers to the commissioner of education. 
196.25     (b) Information on persons who have been treated for drug 
196.26  or alcohol abuse may only be disclosed according to the 
196.27  requirements of Code of Federal Regulations, title 42, sections 
196.28  2.1 to 2.67. 
196.29     (c) Data provided to law enforcement agencies under 
196.30  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
196.31  (b), are investigative data and are confidential or protected 
196.32  nonpublic while the investigation is active.  The data are 
196.33  private after the investigation becomes inactive under section 
196.34  13.82, subdivision 5, paragraph (a) or (b). 
196.35     (d) Mental health data shall be treated as provided in 
196.36  subdivisions 7, 8, and 9, but is not subject to the access 
197.1   provisions of subdivision 10, paragraph (b). 
197.2      For the purposes of this subdivision, a request will be 
197.3   deemed to be made in writing if made through a computer 
197.4   interface system. 
197.5      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
197.6   125B.21, subdivision 1, is amended to read: 
197.7      Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
197.8   of the Minnesota Education Telecommunications Council 
197.9   established in Laws 1993, First Special Session chapter 2, is 
197.10  expanded to include representatives of elementary and secondary 
197.11  education.  The membership shall consist of three 
197.12  representatives from the University of Minnesota; three 
197.13  representatives of the Board of Trustees for Minnesota State 
197.14  Colleges and Universities; one representative of the higher 
197.15  education services offices; one representative appointed by the 
197.16  Private College Council; one representative selected by the 
197.17  commissioner of administration; eight representatives selected 
197.18  by the commissioner of education, at least one of which must 
197.19  come from each of the six higher education telecommunication 
197.20  regions; a representative from the Office of Technology; two 
197.21  members each from the senate and the house of representatives 
197.22  selected by the Subcommittee on Committees of the Committee on 
197.23  Rules and Administration of the senate and the speaker of the 
197.24  house, one member from each body must be a member of the 
197.25  minority party; and three representatives of libraries, one 
197.26  representing regional public libraries, one representing 
197.27  multitype libraries, and one representing community libraries, 
197.28  selected by the governor; and two members, one selected from and 
197.29  representing the higher education regional coordinators and one 
197.30  selected from and representing the kindergarten through grade 12 
197.31  cluster regions.  The council shall serve as a forum to 
197.32  establish and advocate for a statewide vision and plans for the 
197.33  use of distance learning technologies, including: 
197.34     (1) the coordination and collaboration of distance learning 
197.35  opportunities; 
197.36     (2) the implementation of the use of distance learning 
198.1   technologies; 
198.2      (3) the collaboration of distance learning users; 
198.3      (4) the implementation of educational policy relating to 
198.4   telecommunications; 
198.5      (5) the exchange of ideas; 
198.6      (6) the communications with state government and related 
198.7   agencies and entities; 
198.8      (7) the coordination of networks for postsecondary 
198.9   campuses, kindergarten through grade 12 education, and regional 
198.10  and community libraries; and 
198.11     (8) the promotion of consistency of the operation of the 
198.12  learning network with standards of an open system architecture. 
198.13     The council expires June 30, 2004 2005. 
198.14     Sec. 5.  [135A.157] [PENALTIES FOR RIOTING.] 
198.15     If a student enrolled in a postsecondary institution is 
198.16  convicted of a felony or gross misdemeanor crime as a direct 
198.17  consequence of participating in a riot or criminal sexual 
198.18  conduct, the student is not eligible for a state grant award 
198.19  under section 136A.121 after conviction and must pay the highest 
198.20  applicable tuition rate, including the nonresident tuition rate, 
198.21  to attend a public postsecondary institution in subsequent 
198.22  enrollment periods.  The penalties under this section shall 
198.23  continue for a period of one year following the date of 
198.24  conviction.  At the time of sentencing, the court must determine 
198.25  whether the conviction was a direct consequence of participating 
198.26  in a riot or criminal sexual conduct. 
198.27     For the purposes of this section, "riot" means an incident 
198.28  in which three or more persons assembled disturb the public 
198.29  peace by an intentional act or threat of unlawful force or 
198.30  violence to person or property.  
198.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
198.32  following final enactment. 
198.33     Sec. 6.  Minnesota Statutes 2002, section 136A.08, is 
198.34  amended by adding a subdivision to read: 
198.35     Subd. 7.  [REPORTING.] The Higher Education Services Office 
198.36  must annually submit a report to the committees in the house of 
199.1   representatives and the senate with responsibility for higher 
199.2   education on (1) participation in the tuition reciprocity 
199.3   program by Minnesota students and students from other states 
199.4   attending Minnesota postsecondary institutions; (2) reciprocity 
199.5   and resident tuition rates at each institution; and (3) 
199.6   interstate payments and obligations for each state participating 
199.7   in the tuition reciprocity program in the prior year. 
199.8      Sec. 7.  Minnesota Statutes 2002, section 136A.121, 
199.9   subdivision 2, is amended to read: 
199.10     Subd. 2.  [ELIGIBILITY FOR GRANTS.] An applicant is 
199.11  eligible to be considered for a grant, regardless of the 
199.12  applicant's sex, creed, race, color, national origin, or 
199.13  ancestry, under sections 136A.095 to 136A.131 if the office 
199.14  finds that the applicant: 
199.15     (1) is a resident of the state of Minnesota; 
199.16     (2) is a graduate of a secondary school or its equivalent, 
199.17  or is 17 years of age or over, and has met all requirements for 
199.18  admission as a student to an eligible college or technical 
199.19  college of choice as defined in sections 136A.095 to 136A.131; 
199.20     (3) has met the financial need criteria established in 
199.21  Minnesota Rules; 
199.22     (4) is not in default, as defined by the office, of any 
199.23  federal or state student educational loan; and 
199.24     (5) is not more than 30 days in arrears for any in 
199.25  court-ordered child support payments owed to a that is collected 
199.26  or enforced by the public agency authority responsible for child 
199.27  support enforcement or, if the applicant is more than 30 days in 
199.28  arrears in court-ordered child support that is collected or 
199.29  enforced by the public authority responsible for child support 
199.30  enforcement, but is complying with a written payment 
199.31  agreement under section 518.553 or order for arrearages.  An 
199.32  agreement must provide for a repayment of arrearages at no less 
199.33  than 20 percent per month of the amount of the monthly child 
199.34  support obligation or no less than $30 per month if there is no 
199.35  current monthly child support obligation.  Compliance means that 
199.36  payments are made by the payment date. 
200.1      The director and the commissioner of human services shall 
200.2   develop procedures to implement clause (5).  
200.3      Sec. 8.  Minnesota Statutes 2003 Supplement, section 
200.4   136A.121, subdivision 9, is amended to read: 
200.5      Subd. 9.  [AWARDS.] An undergraduate student who meets the 
200.6   office's requirements is eligible to apply for and receive a 
200.7   grant in any year of undergraduate study unless the student has 
200.8   obtained a baccalaureate degree or previously has been enrolled 
200.9   full time or the equivalent for eight semesters or the 
200.10  equivalent, excluding courses taken from a Minnesota school or 
200.11  postsecondary institution which is not participating in the 
200.12  state grant program and from which a student transferred no 
200.13  credit.  A student who withdraws from enrollment for active 
200.14  military service is entitled to an additional semester of grant 
200.15  eligibility.  A student enrolled in a two-year program at a 
200.16  four-year institution is only eligible for the tuition and fee 
200.17  maximums established by law for two-year institutions. 
200.18     Sec. 9.  Minnesota Statutes 2002, section 136A.121, is 
200.19  amended by adding a subdivision to read: 
200.20     Subd. 18.  [DATA.] An eligible institution must provide 
200.21  student enrollment and financial aid data to the office to 
200.22  enable the office to carry out its responsibilities under 
200.23  section 136A.01, subdivision 2, clause (6). 
200.24     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
200.25  136A.125, subdivision 2, is amended to read: 
200.26     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
200.27  a child care grant if the applicant: 
200.28     (1) is a resident of the state of Minnesota; 
200.29     (2) has a child 12 years of age or younger, or 14 years of 
200.30  age or younger who is handicapped as defined in section 125A.02, 
200.31  and who is receiving or will receive care on a regular basis 
200.32  from a licensed or legal, nonlicensed caregiver; 
200.33     (3) is income eligible as determined by the office's 
200.34  policies and rules, but is not a recipient of assistance from 
200.35  the Minnesota family investment program; 
200.36     (4) has not earned a baccalaureate degree and has been 
201.1   enrolled full time less than eight semesters or the equivalent; 
201.2      (5) is pursuing a nonsectarian program or course of study 
201.3   that applies to an undergraduate degree, diploma, or 
201.4   certificate; 
201.5      (6) is enrolled at least half time in an eligible 
201.6   institution; and 
201.7      (7) is in good academic standing and making satisfactory 
201.8   academic progress; and 
201.9      (8) is not more than 30 days in arrears in court-ordered 
201.10  child support that is collected or enforced by the public 
201.11  authority responsible for child support enforcement or, if the 
201.12  applicant is more than 30 days in arrears in court-ordered child 
201.13  support that is collected or enforced by the public authority 
201.14  responsible for child support enforcement, but is complying with 
201.15  a written payment agreement under section 518.553 or order for 
201.16  arrearages.  
201.17     A student who withdraws from enrollment for active military 
201.18  service is entitled to an additional semester of grant 
201.19  eligibility. 
201.20     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
201.21  136G.11, subdivision 1, is amended to read: 
201.22     Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By June 30 
201.23  of each year, a state matching grant must be added to each 
201.24  account established under the program if the following 
201.25  conditions are met: 
201.26     (1) the contributor applies, in writing in a form 
201.27  prescribed by the director, for a matching grant; 
201.28     (2) a minimum contribution of $200 was made during the 
201.29  preceding calendar year; and 
201.30     (3) the beneficiary's family meets Minnesota College 
201.31  Savings Plan residency requirements; and 
201.32     (4) the family income of the beneficiary did not exceed 
201.33  $80,000. 
201.34     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
201.35  136G.11, subdivision 3, is amended to read: 
201.36     Subd. 3.  [RESIDENCY REQUIREMENT.] (a) If the beneficiary 
202.1   is under age 25, the beneficiary's parents or legal guardians 
202.2   must be Minnesota residents to qualify for a matching grant.  If 
202.3   the beneficiary is age 25 or older, the beneficiary must be a 
202.4   Minnesota resident to qualify for a matching grant. 
202.5      (b) To meet the residency requirements, the parent or legal 
202.6   guardian of beneficiaries under age 25 must have filed a 
202.7   Minnesota individual income tax return as a Minnesota resident 
202.8   and claimed the beneficiary as a dependent on the parent or 
202.9   legal guardian's federal tax return for the calendar year in 
202.10  which contributions were made.  If the beneficiary's parents are 
202.11  divorced, the parent or legal guardian claiming the beneficiary 
202.12  as a dependent on the federal individual income tax return must 
202.13  be a Minnesota resident.  For beneficiaries age 25 or older, the 
202.14  beneficiary, and a spouse, if any, must have filed a Minnesota 
202.15  and a federal individual income tax return as a Minnesota 
202.16  resident for the calendar year in which contributions were made. 
202.17     (c) A parent of beneficiaries under age 25 and 
202.18  beneficiaries age 25 or older who did not reside in Minnesota in 
202.19  the calendar year in which contributions were made are not 
202.20  eligible for a matching grant. 
202.21     Sec. 13.  Minnesota Statutes 2002, section 136G.11, is 
202.22  amended by adding a subdivision to read: 
202.23     Subd. 3a.  [FAMILY INCOME.] (a) For purposes of this 
202.24  section, "family income" means: 
202.25     (1) if the beneficiary is under age 25, the combined 
202.26  adjusted gross income of the beneficiary's parents or legal 
202.27  guardians as reported on the federal tax return or returns for 
202.28  the calendar year in which contributions were made.  If the 
202.29  beneficiary's parents or legal guardians are divorced, the 
202.30  income of the parent claiming the beneficiary as a dependent on 
202.31  the federal individual income tax return and the income of that 
202.32  parent's spouse, if any, is used to determine family income; or 
202.33     (2) if the beneficiary is age 25 or older, the combined 
202.34  adjusted gross income of the beneficiary and spouse, if any. 
202.35     (b) For a parent or legal guardian of beneficiaries under 
202.36  age 25 and for beneficiaries age 25 or older who resided in 
203.1   Minnesota and filed a federal individual income tax return, the 
203.2   matching grant must be based on family income from the calendar 
203.3   year in which contributions were made. 
203.4      Sec. 14.  Minnesota Statutes 2003 Supplement, section 
203.5   136G.13, subdivision 1, is amended to read: 
203.6      Subdivision 1.  [QUALIFIED DISTRIBUTION METHODS.] (a) 
203.7   Qualified distributions may be made: 
203.8      (1) directly to participating eligible educational 
203.9   institutions on behalf of the beneficiary; or 
203.10     (2) in the form of a check payable to both the beneficiary 
203.11  and the eligible educational institution; or 
203.12     (3) to an account owner. 
203.13     (b) Qualified distributions must be withdrawn 
203.14  proportionally from contributions and earnings in an account 
203.15  owner's account on the date of distribution as provided in 
203.16  section 529 of the Internal Revenue Code. 
203.17     Sec. 15.  Minnesota Statutes 2002, section 299A.45, 
203.18  subdivision 4, is amended to read: 
203.19     Subd. 4.  [RENEWAL.] Each award must be given for one 
203.20  academic year and is renewable for a maximum of eight semesters 
203.21  or the equivalent.  A student who withdraws from enrollment for 
203.22  active military service is entitled to an additional semester of 
203.23  eligibility for an award.  An award must not be given to a 
203.24  dependent child who is 23 years of age or older on the first day 
203.25  of the academic year. 
203.26     Sec. 16.  [DOCTORAL DEGREES; REPORT.] 
203.27     Notwithstanding Laws 2003, chapter 133, article 1, section 
203.28  3, subdivision 2, or any other law to the contrary, a Minnesota 
203.29  state university may prepare and submit to the legislature a 
203.30  report on a plan to develop and offer applied doctoral level 
203.31  programs or degrees.  The report must include a cost and revenue 
203.32  analysis of offering doctoral programs with a detailed account 
203.33  of how the costs will be funded.  If the institutions choose to 
203.34  prepare the report, the report must be submitted by January 15, 
203.35  2007. 
203.36     Sec. 17.  [TUITION RECIPROCITY; SOUTH DAKOTA.] 
204.1      The Higher Education Services Office must examine the 
204.2   feasibility of reinstating interstate reimbursement payments in 
204.3   the Minnesota-South Dakota reciprocity program while maintaining 
204.4   the tuition reciprocity agreement between the two states.  The 
204.5   office must examine the advantage and disadvantages of computing 
204.6   interstate payments between Minnesota and South Dakota and 
204.7   assess the impact on participating students, institutions 
204.8   enrolling students under the reciprocity agreement, and each 
204.9   state's general fund.  The office must report on the feasibility 
204.10  and impacts to the committees of the legislature with 
204.11  responsibility for higher education finance by January 10, 2005. 
204.12     Sec. 18.  [APPLICATION OF ELIGIBILITY.] 
204.13     The additional semester of grant eligibility under sections 
204.14  8, 10, and 15 applies to any student with a state grant who 
204.15  withdrew from enrollment in a postsecondary institution 
204.16  beginning January 1, 2003, because the student was ordered to 
204.17  active military service as defined in Minnesota Statutes, 
204.18  section 190.05, subdivision 5b or 5c. 
204.19     Sec. 19.  [APPLICATION INFORMATION.] 
204.20     The Higher Education Services Office must collect 
204.21  information necessary to administer section 5 on application 
204.22  forms for student aid.  The Minnesota State Colleges and 
204.23  Universities must collect information to administer section 5.  
204.24  The University of Minnesota is requested to collect information 
204.25  necessary to administer section 5. 
204.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
204.27  following final enactment. 
204.28     Sec. 20.  [REPEALER.] 
204.29     (a) Minnesota Statutes 2003 Supplement, section 136G.11, 
204.30  subdivision 2, is repealed. 
204.31     (b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120; 
204.32  4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 
204.33  4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are 
204.34  repealed.