1.1             CONFERENCE COMMITTEE REPORT ON H.F. NO. 1793 
  1.2                          A bill for an act 
  1.3             relating to education; providing for prekindergarten 
  1.4             through grade 12 education and early childhood and 
  1.5             family education including general education, special 
  1.6             programs, academic excellence, facilities, nutrition, 
  1.7             and accounting, other programs, libraries, early 
  1.8             childhood programs, prevention, self-sufficiency and 
  1.9             lifelong learning, state agencies, deficiencies, 
  1.10            technical and conforming amendments, and academic 
  1.11            standards; providing for higher education including 
  1.12            extending sunset of education telecommunications 
  1.13            council, requiring eligible institutions to provide 
  1.14            certain data to the Higher Education Services Office, 
  1.15            making changes relating to child care grants and the 
  1.16            Minnesota College Savings Plan, modifying certain 
  1.17            education benefits of public safety officers, making 
  1.18            changes to tuition reciprocity, and authorizing 
  1.19            planning for applied doctoral degrees; repealing 
  1.20            obsolete rules; providing for rulemaking; reducing 
  1.21            appropriations; appropriating money; amending 
  1.22            Minnesota Statutes 2002, sections 13.321, subdivision 
  1.23            1, by adding subdivisions; 119A.46, subdivisions 2, 3, 
  1.24            8; 120A.05, by adding a subdivision; 120B.23, as 
  1.25            amended; 120B.35, by adding a subdivision; 121A.22, 
  1.26            subdivision 2; 121A.34, by adding subdivisions; 
  1.27            121A.45, subdivision 3; 121A.48; 121A.75, by adding a 
  1.28            subdivision; 122A.06, subdivision 4; 122A.12, by 
  1.29            adding a subdivision; 122A.16; 122A.18, subdivision 
  1.30            2a, by adding a subdivision; 122A.20, subdivision 2; 
  1.31            123A.05, subdivision 2; 123A.442, subdivision 2; 
  1.32            123A.443, subdivision 4; 123A.55; 123B.09, subdivision 
  1.33            8; 123B.143, subdivision 1; 123B.195; 123B.36, 
  1.34            subdivision 1; 123B.49, subdivision 4; 123B.53, 
  1.35            subdivision 6; 123B.58, subdivision 2; 123B.71, 
  1.36            subdivision 9; 123B.75, by adding a subdivision; 
  1.37            123B.76, by adding a subdivision; 123B.82; 123B.92, 
  1.38            subdivision 5; 124D.15, subdivisions 1, 3, 5, 8, 10, 
  1.39            12, by adding a subdivision; 124D.16, subdivision 2; 
  1.40            124D.19, subdivision 11; 124D.20, by adding a 
  1.41            subdivision; 124D.59, as amended; 124D.61; 124D.68, 
  1.42            subdivisions 3, 9; 124D.69, subdivision 1; 125A.023, 
  1.43            subdivision 3; 125A.03; 125A.07; 125A.22; 125A.46; 
  1.44            125A.51; 125A.79, subdivisions 5, 7, by adding 
  1.45            subdivisions; 125B.15; 126C.10, subdivision 2; 
  2.1             126C.15, subdivision 2, by adding a subdivision; 
  2.2             126C.21, subdivision 4; 126C.48, subdivision 8; 
  2.3             127A.42, subdivisions 4, 6; 127A.45, subdivision 11; 
  2.4             127A.47, subdivision 3; 134.31, by adding a 
  2.5             subdivision; 134.50; 136A.08, by adding a subdivision; 
  2.6             136A.121, subdivision 2, by adding a subdivision; 
  2.7             136G.11, by adding a subdivision; 169.451; 171.04, 
  2.8             subdivision 1; 171.05, subdivisions 2, 2b, 3; 171.19; 
  2.9             260A.01; 260A.03; 260C.163, subdivision 11; 299A.45, 
  2.10            subdivision 4; 631.40, subdivision 4; Minnesota 
  2.11            Statutes 2003 Supplement, sections 13.46, subdivision 
  2.12            2; 16A.152, subdivision 2; 119A.46, subdivision 1; 
  2.13            120B.021, subdivisions 1, 3, by adding a subdivision; 
  2.14            120B.022, subdivision 1; 120B.024; 120B.36; 121A.64; 
  2.15            122A.09, subdivision 4; 123B.54; 123B.77, subdivision 
  2.16            4; 123B.92, subdivision 1; 124D.095, subdivisions 4, 
  2.17            7, 8; 124D.10, subdivisions 3, 4, 8; 124D.11, 
  2.18            subdivisions 1, 2, 9; 124D.20, subdivision 11; 
  2.19            124D.385, subdivision 2; 124D.42, subdivision 6; 
  2.20            124D.454, subdivision 2; 124D.531, subdivisions 1, 4; 
  2.21            124D.86, subdivisions 3, 4; 125A.023, subdivision 4; 
  2.22            125A.091, subdivision 5; 125A.75, subdivision 8; 
  2.23            125A.79, subdivision 1; 125B.21, subdivision 1; 
  2.24            126C.10, subdivisions 3, 31; 126C.15, subdivision 1; 
  2.25            126C.17, subdivision 9; 126C.40, subdivision 1; 
  2.26            126C.43, subdivisions 2, 3; 126C.44; 126C.457; 
  2.27            126C.63, subdivision 8; 127A.41, subdivision 9; 
  2.28            127A.42, subdivision 2; 127A.47, subdivisions 7, 8; 
  2.29            128C.05, subdivision 1a; 136A.121, subdivision 9; 
  2.30            136A.125, subdivision 2; 136G.11, subdivisions 1, 3; 
  2.31            136G.13, subdivision 1; 275.065, subdivision 1; 
  2.32            475.61, subdivision 4; 626.556, subdivision 2; Laws 
  2.33            2003, chapter 130, section 12; Laws 2003, First 
  2.34            Special Session chapter 9, article 1, section 53, 
  2.35            subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 
  2.36            Special Session chapter 9, article 2, section 55, 
  2.37            subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16, 17, 19, 21, 
  2.38            as amended; Laws 2003, First Special Session chapter 
  2.39            9, article 3, section 19; Laws 2003, First Special 
  2.40            Session chapter 9, article 3, section 20, subdivisions 
  2.41            4, 5, 6, 7, 8, 9; Laws 2003, First Special Session 
  2.42            chapter 9, article 4, section 29; Laws 2003, First 
  2.43            Special Session chapter 9, article 4, section 31, 
  2.44            subdivisions 2, 3; Laws 2003, First Special Session 
  2.45            chapter 9, article 5, section 35, subdivisions 2, 3; 
  2.46            Laws 2003, First Special Session chapter 9, article 6, 
  2.47            section 4; Laws 2003, First Special Session chapter 9, 
  2.48            article 7, section 11, subdivisions 2, 3; Laws 2003, 
  2.49            First Special Session chapter 9, article 8, section 7, 
  2.50            subdivisions 2, 5; Laws 2003, First Special Session 
  2.51            chapter 9, article 9, section 9, subdivisions 2, 5; 
  2.52            Laws 2003, First Special Session chapter 9, article 
  2.53            10, section 10, subdivision 2; Laws 2003, First 
  2.54            Special Session chapter 9, article 10, section 11; 
  2.55            Laws 2003, First Special Session chapter 9, article 
  2.56            10, section 12; proposing coding for new law in 
  2.57            Minnesota Statutes, chapters 120A; 120B; 121A; 122A; 
  2.58            123B; 125B; 127A; 135A; 171; repealing Minnesota 
  2.59            Statutes 2002, sections 124D.15, subdivisions 2, 4, 6, 
  2.60            11, 13; 124D.16, subdivisions 1, 4; 124D.41; 124D.42, 
  2.61            subdivisions 1, 2, 4, 5, 7; 124D.43; 124D.91; 124D.92; 
  2.62            126C.23; 134.47, subdivision 3; Minnesota Statutes 
  2.63            2003 Supplement, sections 124D.15, subdivision 7; 
  2.64            124D.42, subdivision 3; 124D.86, subdivision 5; 
  2.65            136G.11, subdivision 2; Minnesota Rules, parts 
  2.66            4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 
  2.67            4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 
  2.68            4830.8130; 4830.8140; 4830.8150. 
  2.69                                                 May 16, 2004
  3.1   The Honorable Steve Sviggum 
  3.2   Speaker of the House of Representatives
  3.4   The Honorable James P. Metzen 
  3.5   President of the Senate
  3.7      We, the undersigned conferees for H.F. No. 1793, report 
  3.8   that we have agreed upon the items in dispute and recommend as 
  3.9   follows: 
  3.10     
  3.11     That the Senate recede from its amendments and that H.F. No.
  3.12  1793 be further amended as follows: 
  3.13     Delete everything after the enacting clause and insert: 
  3.14                             "ARTICLE 1 
  3.15                         GENERAL EDUCATION 
  3.16     Section 1.  Minnesota Statutes 2002, section 121A.34, is 
  3.17  amended by adding a subdivision to read: 
  3.18     Subd. 5.  [BELTS AND OTHER ACCESSORIES.] Notwithstanding 
  3.19  Minnesota Rules, part 7415.0300, vests, sashes, ponchos, and Sam 
  3.20  Browne belts worn by school safety patrol members may be 
  3.21  fluorescent yellow, fluorescent yellow-green, or blaze orange. 
  3.22     Sec. 2.  Minnesota Statutes 2002, section 121A.34, is 
  3.23  amended by adding a subdivision to read: 
  3.24     Subd. 6.  [SCHOOL SAFETY PATROL FLAGS.] Notwithstanding any 
  3.25  rule of the commissioner of public safety, school safety patrol 
  3.26  flags may be (1) blaze orange with a yellow octagon bearing the 
  3.27  word "Stop" in black letters, or (2) fluorescent yellow or 
  3.28  fluorescent yellow-green with an octagon of sharply contrasting 
  3.29  color bearing the word "Stop" in black letters. 
  3.30     Sec. 3.  Minnesota Statutes 2002, section 123B.76, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 3.  [EXPENDITURES BY BUILDING.] (a) For the purposes 
  3.33  of this section, "building" means education site as defined in 
  3.34  section 123B.04, subdivision 1.  
  3.35     (b) Each district shall maintain separate accounts to 
  3.36  identify general fund expenditures, excluding capital 
  3.37  expenditures and pupil transportation, for each building.  All 
  3.38  expenditures for regular instruction, secondary vocational 
  3.39  instruction, and school administration must be reported to the 
  4.1   department separately for each building.  All expenditures for 
  4.2   special education instruction, instructional support services, 
  4.3   and pupil support services provided within a specific building 
  4.4   must be reported to the department separately for each 
  4.5   building.  Salary expenditures reported by building must reflect 
  4.6   actual salaries for staff at the building and must not be based 
  4.7   on districtwide averages.  All other general fund expenditures 
  4.8   may be reported on a districtwide basis. 
  4.9      (c) The department must annually report information showing 
  4.10  school district general fund expenditures per pupil by program 
  4.11  category for each building and estimated school district general 
  4.12  fund revenue generated by pupils attending each building on its 
  4.13  Web site.  For purposes of this report: 
  4.14     (1) expenditures not required to be reported by building 
  4.15  shall be allocated among buildings on a uniform per pupil basis; 
  4.16     (2) basic skills revenue shall be allocated according to 
  4.17  section 126C.10, subdivision 4; 
  4.18     (3) secondary sparsity revenue and elementary sparsity 
  4.19  revenue shall be allocated according to section 126C.10, 
  4.20  subdivisions 7 and 8; 
  4.21     (4) other general education revenue shall be allocated on a 
  4.22  uniform per pupil unit basis; 
  4.23     (5) first grade preparedness aid shall be allocated 
  4.24  according to section 124D.081; 
  4.25     (6) state and federal special education aid and Title I aid 
  4.26  shall be allocated in proportion to district expenditures for 
  4.27  these programs by building; and 
  4.28     (7) other general fund revenues shall be allocated on a 
  4.29  uniform per pupil basis, except that the department may allocate 
  4.30  other revenues attributable to specific buildings directly to 
  4.31  those buildings. 
  4.32     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  4.33  following final enactment and applies to reports for fiscal year 
  4.34  2004 and later. 
  4.35     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  4.36  123B.77, subdivision 4, is amended to read: 
  5.1      Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
  5.2   the board of each district must approve and adopt its revenue 
  5.3   and expenditure budgets for the next school year.  The budget 
  5.4   document so adopted must be considered an 
  5.5   expenditure-authorizing or appropriations document.  No funds 
  5.6   shall be expended by any board or district for any purpose in 
  5.7   any school year prior to the adoption of the budget document 
  5.8   which authorizes that expenditure, or prior to an amendment to 
  5.9   the budget document by the board to authorize the expenditure.  
  5.10  Expenditures of funds in violation of this subdivision shall be 
  5.11  considered unlawful expenditures.  Prior to the appropriation of 
  5.12  revenue for the next school year in the initial budget, the 
  5.13  board shall calculate the general education revenue, basic 
  5.14  skills revenue, and referendum revenue for that year that it 
  5.15  estimates will be generated by the pupils in attendance at each 
  5.16  site, and shall inform the principal or other responsible 
  5.17  administrative authority of each site of that estimate and 
  5.18  report this information to the amount of general education and 
  5.19  referendum revenue that the Department of Education estimates 
  5.20  will be generated by the pupils in attendance at each site.  For 
  5.21  purposes of this subdivision, a district may adjust the 
  5.22  department's estimates for school building openings, school 
  5.23  building closings, changes in attendance area boundaries, or 
  5.24  other changes in programs or student demographics not reflected 
  5.25  in the department's calculations.  A district must report to the 
  5.26  department any adjustments it makes according to this 
  5.27  subdivision in the department's estimates of compensatory 
  5.28  revenue generated by the pupils in attendance at each site, and 
  5.29  the department must use the adjusted compensatory revenue 
  5.30  estimates in preparing the report required under section 
  5.31  123B.76, subdivision 3, paragraph (c). 
  5.32     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  5.33  following final enactment and applies to reports for fiscal year 
  5.34  2005 and later. 
  5.35     Sec. 5.  Minnesota Statutes 2002, section 123B.82, is 
  5.36  amended to read: 
  6.1      123B.82 [REORGANIZATION OPERATING DEBT.] 
  6.2      The "reorganization operating debt" of a school district 
  6.3   means the net negative undesignated fund balance in all school 
  6.4   district funds, other than capital expenditure, building 
  6.5   construction, debt redemption, and trust and agency, calculated 
  6.6   in accordance with the uniform financial accounting and 
  6.7   reporting standards for Minnesota school districts as of: 
  6.8      (1) June 30 of the fiscal year before the first year that a 
  6.9   district receives revenue according to section 123A.39, 
  6.10  subdivision 3; or 
  6.11     (2) June 30 of the fiscal year before the effective date of 
  6.12  reorganization according to section 123A.46 or 123A.48. 
  6.13     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  6.14  following final enactment.  
  6.15     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  6.16  124D.454, subdivision 2, is amended to read: 
  6.17     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
  6.18  the definitions in this subdivision apply. 
  6.19     (a) "Base year" means the second fiscal year preceding the 
  6.20  fiscal year for which aid will be paid. 
  6.21     (b) "Basic revenue" has the meaning given it in section 
  6.22  126C.10, subdivision 2.  For the purposes of computing basic 
  6.23  revenue pursuant to this section, each child with a disability 
  6.24  shall be counted as prescribed in section 126C.05, subdivision 1.
  6.25     (c) "Average daily membership" has the meaning given it in 
  6.26  section 126C.05. 
  6.27     (d) "Program growth factor" means 1.00 for fiscal year 1998 
  6.28  and later. 
  6.29     (e) "Aid percentage factor" means 100 percent for fiscal 
  6.30  year 2000 and later. 
  6.31     (f) "Essential personnel" means a licensed teacher, 
  6.32  licensed support services staff person, paraprofessional 
  6.33  providing direct services to students, or licensed personnel 
  6.34  under subdivision 12, paragraph (c).  This definition is not 
  6.35  intended to change or modify the definition of essential 
  6.36  employee in chapter 179A. 
  7.1      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  7.2   following final enactment.  
  7.3      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  7.4   126C.10, subdivision 3, is amended to read: 
  7.5      Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] (a) The 
  7.6   compensatory education revenue for each building in the district 
  7.7   equals the formula allowance minus $415 times the compensation 
  7.8   revenue pupil units computed according to section 126C.05, 
  7.9   subdivision 3.  Revenue shall be paid to the district and must 
  7.10  be allocated according to section 126C.15, subdivision 2. 
  7.11     (b) When the district contracting with an alternative 
  7.12  program under section 124D.69 changes prior to the start of a 
  7.13  school year, the compensatory revenue generated by pupils 
  7.14  attending the program shall be paid to the district contracting 
  7.15  with the alternative program for the current school year, and 
  7.16  shall not be paid to the district contracting with the 
  7.17  alternative program for the prior school year. 
  7.18     (c) When the fiscal agent district for an area learning 
  7.19  center changes prior to the start of a school year, the 
  7.20  compensatory revenue shall be paid to the fiscal agent district 
  7.21  for the current school year, and shall not be paid to the fiscal 
  7.22  agent district for the prior school year.  
  7.23     <h>[EFFECTIVE DATE.]</h> This section is effective for revenue for 
  7.24  fiscal year 2005.  
  7.25     Sec. 8.  Minnesota Statutes 2002, section 127A.47, 
  7.26  subdivision 3, is amended to read: 
  7.27     Subd. 3.  [REVENUE FOR CHILDREN OF DIVORCED OR LEGALLY 
  7.28  SEPARATED PARENTS OR PARENTS RESIDING SEPARATELY.] (a) In those 
  7.29  instances when the divorced or legally separated parents or 
  7.30  parents residing separately share joint physical custody of the 
  7.31  child and the divorced or legally separated parents or parents 
  7.32  residing separately reside in different school districts, for 
  7.33  all school purposes, unless otherwise specifically provided by 
  7.34  law, the child must be considered a resident of the school 
  7.35  district, as indicated by the child's parents.  
  7.36     (b) When the child of divorced or legally separated parents 
  8.1   or parents residing separately under paragraph (a) resides with 
  8.2   each parent on alternate weeks, the parents shall be responsible 
  8.3   for the transportation of the child to the border of the 
  8.4   resident school district during those weeks when the child 
  8.5   resides in the nonresident school district. 
  8.6      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
  8.7      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  8.8   275.065, subdivision 1, is amended to read: 
  8.9      Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
  8.10  law or charter to the contrary, on or before September 15, each 
  8.11  taxing authority, other than a school district, shall adopt a 
  8.12  proposed budget and shall certify to the county auditor the 
  8.13  proposed or, in the case of a town, the final property tax levy 
  8.14  for taxes payable in the following year. 
  8.15     (b) On or before September 30, each school district shall 
  8.16  certify to the county auditor the proposed property tax levy for 
  8.17  taxes payable in the following year.  The school district shall 
  8.18  certify the proposed levy as: 
  8.19     (1) the state determined school levy amount as prescribed 
  8.20  under section 126C.13, subdivision 2; a specific dollar amount 
  8.21  by school district fund, broken down between voter-approved and 
  8.22  non-voter-approved levies and between referendum market value 
  8.23  and tax capacity levies; or 
  8.24     (2) voter approved referendum and debt levies; and 
  8.25     (3) the sum of the remaining school levies, or the maximum 
  8.26  levy limitation certified by the commissioner of education 
  8.27  according to section 126C.48, subdivision 1, less the amounts 
  8.28  levied under clauses (1) and (2). 
  8.29     (c) If the board of estimate and taxation or any similar 
  8.30  board that establishes maximum tax levies for taxing 
  8.31  jurisdictions within a first class city certifies the maximum 
  8.32  property tax levies for funds under its jurisdiction by charter 
  8.33  to the county auditor by September 15, the city shall be deemed 
  8.34  to have certified its levies for those taxing jurisdictions. 
  8.35     (d) For purposes of this section, "taxing authority" 
  8.36  includes all home rule and statutory cities, towns, counties, 
  9.1   school districts, and special taxing districts as defined in 
  9.2   section 275.066.  Intermediate school districts that levy a tax 
  9.3   under chapter 124 or 136D, joint powers boards established under 
  9.4   sections 123A.44 to 123A.446, and Common School Districts No. 
  9.5   323, Franconia, and No. 815, Prinsburg, are also special taxing 
  9.6   districts for purposes of this section.  
  9.7      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
  9.8      Sec. 10.  [REPEALER.] 
  9.9      Minnesota Statutes 2002, section 126C.23, is repealed. 
  9.10                             ARTICLE 2 
  9.11                        ACADEMIC EXCELLENCE 
  9.12     Section 1.  Minnesota Statutes 2002, section 13.321, 
  9.13  subdivision 1, is amended to read: 
  9.14     Subdivision 1.  [SCOPE.] The sections referred to in 
  9.15  subdivisions 2 to 9 10 are codified outside this chapter.  Those 
  9.16  sections classify prekindergarten to grade 12 educational data 
  9.17  as other than public, place restrictions on access to government 
  9.18  data, or involve data sharing. 
  9.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
  9.20  following final enactment. 
  9.21     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  9.22  120B.021, subdivision 1, is amended to read: 
  9.23     Subdivision 1.  [REQUIRED ACADEMIC STANDARDS.] The 
  9.24  following subject areas are required for statewide 
  9.25  accountability: 
  9.26     (1) language arts; 
  9.27     (2) mathematics; 
  9.28     (3) science; 
  9.29     (4) social studies, including history, geography, 
  9.30  economics, and government and citizenship; and 
  9.31     (5) health and physical education, for which locally 
  9.32  developed academic standards apply; and 
  9.33     (6) the arts, for which statewide or locally developed 
  9.34  academic standards apply, as determined by the school district.  
  9.35  Public elementary and middle schools must offer at least three 
  9.36  and require at least two of the following four arts areas:  
 10.1   dance; music; theater; and visual arts.  Public high schools 
 10.2   must offer at least three and require at least one of the 
 10.3   following five arts areas:  media arts; dance; music; theater; 
 10.4   and visual arts.  
 10.5      The commissioner must submit proposed standards in science 
 10.6   and social studies to the legislature by February 1, 2004.  
 10.7   For purposes of applicable federal law, the academic standards 
 10.8   for language arts, mathematics, and science apply to all public 
 10.9   school students, except the very few students with extreme 
 10.10  cognitive or physical impairments for whom an individualized 
 10.11  education plan team has determined that the required academic 
 10.12  standards are inappropriate.  An individualized education plan 
 10.13  team that makes this determination must establish alternative 
 10.14  standards. 
 10.15     A school district, no later than the 2007-2008 school year, 
 10.16  must adopt graduation requirements that meet or exceed state 
 10.17  graduation requirements established in law or rule.  A school 
 10.18  district that incorporates these state graduation requirements 
 10.19  before the 2007-2008 school year must provide students who enter 
 10.20  the 9th grade in or before the 2003-2004 school year the 
 10.21  opportunity to earn a diploma based on existing locally 
 10.22  established graduation requirements in effect when the students 
 10.23  entered the 9th grade.  District efforts to develop, implement, 
 10.24  or improve instruction or curriculum as a result of the 
 10.25  provisions of this section must be consistent with sections 
 10.26  120B.10, 120B.11, and 120B.20.  
 10.27     <h>[EFFECTIVE DATE.]</h> This section is effective for the 
 10.28  2005-2006 school year and later.  
 10.29     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 10.30  120B.022, subdivision 1, is amended to read: 
 10.31     Subdivision 1.  [ELECTIVE STANDARDS.] A district must 
 10.32  establish its own standards in the following subject areas: 
 10.33     (1) health and physical education; 
 10.34     (2) vocational and technical education; and 
 10.35     (3) (2) world languages. 
 10.36     A school district must offer courses in all elective 
 11.1   subject areas. 
 11.2      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 11.3   following final enactment. 
 11.4      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 11.5   120B.024, is amended to read: 
 11.6      120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 
 11.7      Students beginning 9th grade in the 2004-2005 school year 
 11.8   and later must successfully complete the following high school 
 11.9   level course credits for graduation: 
 11.10     (1) four credits of language arts; 
 11.11     (2) three credits of mathematics, encompassing at least 
 11.12  algebra, geometry, statistics, and probability sufficient to 
 11.13  satisfy the academic standard; 
 11.14     (3) three credits of science, including at least one credit 
 11.15  in biology; 
 11.16     (4) three and one-half credits of social studies, including 
 11.17  encompassing at least one credit of United States history, one 
 11.18  credit of geography, 0.5 credits of government and citizenship, 
 11.19  0.5 credits of world history, and 0.5 credits of economics or 
 11.20  three credits of social studies encompassing at least United 
 11.21  States history, geography, government and citizenship, and world 
 11.22  history, and one-half credit of economics taught in a school's 
 11.23  social studies or business department; and 
 11.24     (5) one credit in the arts; and 
 11.25     (6) a minimum of eight seven elective course credits, 
 11.26  including at least one credit in the arts. 
 11.27     A course credit is equivalent to a student's successful 
 11.28  completion of student successfully completing an academic year 
 11.29  of study or a student's mastery of student mastering the 
 11.30  applicable subject matter, as determined by the local school 
 11.31  district. 
 11.32     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
 11.33  120B.36, is amended to read: 
 11.34     120B.36 [SCHOOL ACCOUNTABILITY; APPEALS PROCESS.] 
 11.35     Subdivision 1.  [SCHOOL PERFORMANCE REPORT CARDS.] (a) The 
 11.36  commissioner shall use objective criteria based on levels of 
 12.1   student performance to identify four to six designations 
 12.2   applicable to high and low performing public schools.  The 
 12.3   objective criteria shall include at least student academic 
 12.4   performance, school safety, and staff characteristics, with a 
 12.5   value-added growth component added by the 2006-2007 school year. 
 12.6      (b) The commissioner shall develop, annually update, and 
 12.7   post on the department Web site school performance report cards. 
 12.8   A school's designation must be clearly stated on each school 
 12.9   performance report card. 
 12.10     (c) The commissioner must make available the first school 
 12.11  designations and school performance report cards by November 
 12.12  2003, and during the beginning of each school year thereafter.  
 12.13     (d) A school or district may appeal in writing a 
 12.14  designation under this section to the commissioner within 30 
 12.15  days of receiving the designation.  The commissioner's decision 
 12.16  to uphold or deny an appeal is final.  
 12.17     (e) School performance report cards are nonpublic data 
 12.18  under section 13.02, subdivision 9, until not later than ten 
 12.19  days after the appeal procedure described in paragraph (d) 
 12.20  concludes.  The department shall annually post school 
 12.21  performance report cards to its public Web site no later than 
 12.22  September 1. 
 12.23     Subd. 2.  [ADEQUATE YEARLY PROGRESS DATA.] All data the 
 12.24  department receives, collects, or creates for purposes of 
 12.25  determining adequate yearly progress designations under Public 
 12.26  Law 107-110, section 1116, are nonpublic data under section 
 12.27  13.02, subdivision 9, until not later than ten days after the 
 12.28  appeal procedure described in subdivision 1, paragraph (d), 
 12.29  concludes.  Districts must provide parents sufficiently detailed 
 12.30  summary data to permit parents to appeal under Public Law 
 12.31  107-110, section 1116(b)(2).  The department shall annually post 
 12.32  adequate yearly progress data to its public Web site no later 
 12.33  than September 1. 
 12.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 12.35  following final enactment. 
 12.36     Sec. 6.  Minnesota Statutes 2002, section 121A.22, 
 13.1   subdivision 2, is amended to read: 
 13.2      Subd. 2.  [EXCLUSIONS.] In addition, this section does not 
 13.3   apply to drugs or medicine that are: 
 13.4      (1) that can be purchased without a prescription; 
 13.5      (2) that are used by a pupil who is 18 years old or older; 
 13.6      (3) that are used in connection with services for which a 
 13.7   minor may give effective consent, including section 144.343, 
 13.8   subdivision 1, and any other law; 
 13.9      (4) that are used in situations in which, in the judgment 
 13.10  of the school personnel who are present or available, the risk 
 13.11  to the pupil's life or health is of such a nature that drugs or 
 13.12  medicine should be given without delay; 
 13.13     (5) that are used off the school grounds; 
 13.14     (6) that are used in connection with athletics or extra 
 13.15  curricular activities; 
 13.16     (7) that are used in connection with activities that occur 
 13.17  before or after the regular school day; 
 13.18     (8) that are provided or administered by a public health 
 13.19  agency in order to prevent or control an illness or a disease 
 13.20  outbreak as provided for in sections 144.05 and 144.12; or 
 13.21     (9) that are prescription asthma or reactive airway disease 
 13.22  medications self-administered by a pupil with an asthma inhaler 
 13.23  if the district has received a written authorization from the 
 13.24  pupil's parent permitting the pupil to self-administer the 
 13.25  medication, the inhaler is properly labeled for that student, 
 13.26  and the parent has not requested school personnel to administer 
 13.27  the medication to the pupil.  The parent must submit written 
 13.28  authorization for the pupil to self-administer the medication 
 13.29  each school year; or 
 13.30     (10) prescription nonsyringe injectors of epinephrine, 
 13.31  consistent with section 121A.2205, if the parent and prescribing 
 13.32  medical professional annually inform the pupil's school in 
 13.33  writing that (i) the pupil may possess the epinephrine or (ii) 
 13.34  the pupil is unable to possess the epinephrine and requires 
 13.35  immediate access to nonsyringe injectors of epinephrine that the 
 13.36  parent provides properly labeled to the school for the pupil as 
 14.1   needed. 
 14.2      <h>[EFFECTIVE DATE.]</h> This section is effective for the 
 14.3   2004-2005 school year and later. 
 14.4      Sec. 7.  [121A.2205] [POSSESSION AND USE OF NONSYRINGE 
 14.5   INJECTORS OF EPINEPHRINE; MODEL POLICY.] 
 14.6      (a) At the start of each school year or at the time a 
 14.7   student enrolls in school, whichever is first, a student's 
 14.8   parent, school staff, including those responsible for student 
 14.9   health care, and the prescribing medical professional must 
 14.10  develop and implement an individualized written health plan for 
 14.11  a student who is prescribed nonsyringe injectors of epinephrine 
 14.12  that enables the student to: 
 14.13     (1) possess nonsyringe injectors of epinephrine; or 
 14.14     (2) if the parent and prescribing medical professional 
 14.15  determine the student is unable to possess the epinephrine, have 
 14.16  immediate access to nonsyringe injectors of epinephrine in close 
 14.17  proximity to the student at all times during the instructional 
 14.18  day. 
 14.19     The plan must designate the school staff responsible for 
 14.20  implementing the student's health plan, including recognizing 
 14.21  anaphylaxis and administering nonsyringe injectors of 
 14.22  epinephrine when required, consistent with section 121A.22, 
 14.23  subdivision 2, clause (10).  This health plan may be included in 
 14.24  a student's 504 plan. 
 14.25     (b) A school under this section is a public school under 
 14.26  section 120A.22, subdivision 4, or a nonpublic school, excluding 
 14.27  a home school, under section 120A.22, subdivision 4, that is 
 14.28  subject to the federal Americans with Disabilities Act.  Other 
 14.29  nonpublic schools are encouraged to develop and implement an 
 14.30  individualized written health plan for students requiring 
 14.31  nonsyringe injectors of epinephrine, consistent with this 
 14.32  section and section 121A.22, subdivision 2, clause (10). 
 14.33     (c) A school district and its agents and employees are 
 14.34  immune from liability for any act or failure to act, made in 
 14.35  good faith, in implementing this section. 
 14.36     (d) The education commissioner may develop and transmit to 
 15.1   interested schools a model policy and individualized health plan 
 15.2   form consistent with this section and federal 504 plan 
 15.3   requirements.  The policy and form may: 
 15.4      (1) assess a student's ability to safely possess nonsyringe 
 15.5   injectors of epinephrine; 
 15.6      (2) identify staff training needs related to recognizing 
 15.7   anaphylaxis and administering epinephrine when needed; 
 15.8      (3) accommodate a student's need to possess or have 
 15.9   immediate access to nonsyringe injectors of epinephrine in close 
 15.10  proximity to the student at all times during the instructional 
 15.11  day; and 
 15.12     (4) ensure that the student's parent provides properly 
 15.13  labeled nonsyringe injectors of epinephrine to the school for 
 15.14  the student as needed.  
 15.15     (e) Additional nonsyringe injectors of epinephrine may be 
 15.16  available in school first aid kits. 
 15.17     (f) The school board of the school district must define 
 15.18  instructional day for the purposes of this section. 
 15.19     <h>[EFFECTIVE DATE.]</h> This section is effective for the 
 15.20  2004-2005 school year and later. 
 15.21     Sec. 8.  Minnesota Statutes 2002, section 121A.45, 
 15.22  subdivision 3, is amended to read: 
 15.23     Subd. 3.  [PARENT NOTIFICATION AND MEETING.] If a pupil's 
 15.24  total days of removal from school exceeds ten cumulative days in 
 15.25  a school year, the school district shall make reasonable 
 15.26  attempts to convene a meeting with the pupil and the pupil's 
 15.27  parent or guardian prior to before subsequently removing the 
 15.28  pupil from school and, with the permission of the parent or 
 15.29  guardian, arrange for a mental health screening for the pupil.  
 15.30  The district is not required to pay for the mental health 
 15.31  screening.  The purpose of this meeting is to attempt to 
 15.32  determine the pupil's need for assessment or other services or 
 15.33  whether the parent or guardian should have the pupil assessed or 
 15.34  diagnosed to determine whether the pupil needs treatment for a 
 15.35  mental health disorder. 
 15.36     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 16.1   122A.09, subdivision 4, is amended to read: 
 16.2      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 16.3   rules to license public school teachers and interns subject to 
 16.4   chapter 14. 
 16.5      (b) The board must adopt rules requiring a person to 
 16.6   successfully complete a skills examination in reading, writing, 
 16.7   and mathematics as a requirement for initial teacher licensure.  
 16.8   Such rules must require college and universities offering a 
 16.9   board-approved teacher preparation program to provide remedial 
 16.10  assistance to persons who did not achieve a qualifying score on 
 16.11  the skills examination, including those for whom English is a 
 16.12  second language. 
 16.13     (c) The board must adopt rules to approve teacher 
 16.14  preparation programs.  The board, upon the request of a 
 16.15  postsecondary student preparing for teacher licensure or a 
 16.16  licensed graduate of a teacher preparation program, shall assist 
 16.17  in resolving a dispute between the person and a postsecondary 
 16.18  institution providing a teacher preparation program when the 
 16.19  dispute involves an institution's recommendation for licensure 
 16.20  affecting the person or the person's credentials.  At the 
 16.21  board's discretion, assistance may include the application of 
 16.22  chapter 14. 
 16.23     (d) The board must provide the leadership and shall adopt 
 16.24  rules for the redesign of teacher education programs to 
 16.25  implement a research based, results-oriented curriculum that 
 16.26  focuses on the skills teachers need in order to be effective.  
 16.27  The board shall implement new systems of teacher preparation 
 16.28  program evaluation to assure program effectiveness based on 
 16.29  proficiency of graduates in demonstrating attainment of program 
 16.30  outcomes. 
 16.31     (e) The board must adopt rules requiring successful 
 16.32  completion of an examination of general pedagogical knowledge 
 16.33  and examinations of licensure-specific teaching skills.  The 
 16.34  rules shall be effective on the dates determined by the board 
 16.35  but not later than September 1, 2001.  
 16.36     (f) The board must adopt rules requiring teacher educators 
 17.1   to work directly with elementary or secondary school teachers in 
 17.2   elementary or secondary schools to obtain periodic exposure to 
 17.3   the elementary or secondary teaching environment. 
 17.4      (g) The board must grant licenses to interns and to 
 17.5   candidates for initial licenses. 
 17.6      (h) The board must design and implement an assessment 
 17.7   system which requires a candidate for an initial license and 
 17.8   first continuing license to demonstrate the abilities necessary 
 17.9   to perform selected, representative teaching tasks at 
 17.10  appropriate levels. 
 17.11     (i) The board must receive recommendations from local 
 17.12  committees as established by the board for the renewal of 
 17.13  teaching licenses. 
 17.14     (j) The board must grant life licenses to those who qualify 
 17.15  according to requirements established by the board, and suspend 
 17.16  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 17.17  board must not establish any expiration date for application for 
 17.18  life licenses.  
 17.19     (k) The board must adopt rules that require all licensed 
 17.20  teachers who are renewing their continuing license to include in 
 17.21  their renewal requirements further preparation in the areas of 
 17.22  using positive behavior interventions and in accommodating, 
 17.23  modifying, and adapting curricula, materials, and strategies to 
 17.24  appropriately meet the needs of individual students and ensure 
 17.25  adequate progress toward the state's graduation rule.  
 17.26     (l) In adopting rules to license public school teachers who 
 17.27  provide health-related services for disabled children, the board 
 17.28  shall adopt rules consistent with license or registration 
 17.29  requirements of the commissioner of health and the 
 17.30  health-related boards who license personnel who perform similar 
 17.31  services outside of the school. 
 17.32     (m) The board must adopt rules that require all licensed 
 17.33  teachers who are renewing their continuing license to include in 
 17.34  their renewal requirements further reading preparation, 
 17.35  consistent with section 122A.06, subdivision 4.  The rules do 
 17.36  not take effect until they are approved by law.  Teachers who do 
 18.1   not provide direct instruction including, at least, counselors, 
 18.2   school psychologists, school nurses, school social workers, 
 18.3   audiovisual directors and coordinators, and recreation personnel 
 18.4   are exempt from this section. 
 18.5      (n) The board must adopt rules that require all licensed 
 18.6   teachers who are renewing their continuing license to include in 
 18.7   their renewal requirements further preparation in understanding 
 18.8   the key warning signs of early-onset mental illness in children 
 18.9   and adolescents. 
 18.10     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 18.11  following final enactment. 
 18.12     Sec. 10.  Minnesota Statutes 2002, section 122A.16, is 
 18.13  amended to read: 
 18.14     122A.16 [HIGHLY QUALIFIED TEACHER DEFINED.] 
 18.15     (a) A qualified teacher is one holding a valid license, 
 18.16  under this chapter, to perform the particular service for 
 18.17  which the teacher is employed in a public school. 
 18.18     (b) For the purposes of the federal No Child Left Behind 
 18.19  Act, a highly qualified teacher is one who holds a valid license 
 18.20  under this chapter to perform the particular service for which 
 18.21  the teacher is employed in a public school or who meets the 
 18.22  requirements of a highly objective uniform state standard of 
 18.23  evaluation (HOUSSE). 
 18.24     All Minnesota teachers teaching in a core academic subject 
 18.25  area, as defined by the federal No Child Left Behind Act, in 
 18.26  which they are not fully licensed may complete the following 
 18.27  HOUSSE process in the core subject area for which the teacher is 
 18.28  requesting highly qualified status by completing an application, 
 18.29  in the form and manner described by the commissioner, that 
 18.30  includes: 
 18.31     (1) documentation of student achievement as evidenced by 
 18.32  norm-referenced test results that are objective and 
 18.33  psychometrically valid and reliable; 
 18.34     (2) evidence of local, state, or national activities, 
 18.35  recognition, or awards for professional contribution to 
 18.36  achievement; 
 19.1      (3) description of teaching experience in the teachers' 
 19.2   core subject area in a public school under a waiver, variance, 
 19.3   limited license or other exception; nonpublic school; and 
 19.4   postsecondary institution; 
 19.5      (4) test results from the Praxis II content test; 
 19.6      (5) evidence of advanced certification from the National 
 19.7   Board for Professional Teaching Standards; 
 19.8      (6) evidence of the successful completion of course work or 
 19.9   pedagogy courses; and 
 19.10     (7) evidence of the successful completion of high quality 
 19.11  professional development activities. 
 19.12     Districts must assign a school administrator to serve as a 
 19.13  HOUSSE reviewer to meet with teachers under this paragraph and, 
 19.14  where appropriate, certify the teachers' applications.  Teachers 
 19.15  satisfy the definition of highly qualified when the teachers 
 19.16  receive at least 100 of the total number of points used to 
 19.17  measure the teachers' content expertise under clauses (1) to 
 19.18  (7).  Teachers may acquire up to 50 points only in any one 
 19.19  clause (1) to (7).  Teachers may use the HOUSSE process to 
 19.20  satisfy the definition of highly qualified for more than one 
 19.21  subject area. 
 19.22     (c) Achievement of the HOUSSE criteria is not equivalent to 
 19.23  a license.  A teacher must obtain permission from the Board of 
 19.24  Teaching in order to teach in a public school. 
 19.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 19.26  following final enactment. 
 19.27     Sec. 11.  Minnesota Statutes 2002, section 122A.20, 
 19.28  subdivision 2, is amended to read: 
 19.29     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
 19.30  to the Board of Teaching, the Board of School Administrators, or 
 19.31  the Board of Trustees of the Minnesota State Colleges and 
 19.32  Universities, whichever has jurisdiction over the teacher's or 
 19.33  administrator's license, when its teacher or administrator is 
 19.34  discharged or resigns from employment after a charge is filed 
 19.35  with the school board under section 122A.41, subdivisions 6, 
 19.36  clauses (1), (2), and (3), and 7, or after charges are filed 
 20.1   that are ground for discharge under section 122A.40, subdivision 
 20.2   13, paragraph (a), clauses (1) to (5), or when a teacher or 
 20.3   administrator is suspended or resigns while an investigation is 
 20.4   pending under section 122A.40, subdivision 13, paragraph (a) 
 20.5   clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 
 20.6   and (3), and 7; or 626.556, or when a teacher or administrator 
 20.7   is suspended without an investigation under section 122A.41, 
 20.8   subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; 
 20.9   or 626.556.  The report must be made to the appropriate 
 20.10  licensing board within ten days after the discharge, suspension, 
 20.11  or resignation has occurred.  The licensing board to which the 
 20.12  report is made must investigate the report for violation of 
 20.13  subdivision 1 and the reporting board must cooperate in the 
 20.14  investigation.  Notwithstanding any provision in chapter 13 or 
 20.15  any law to the contrary, upon written request from the licensing 
 20.16  board having jurisdiction over the license, a board or school 
 20.17  superintendent shall provide the licensing board with 
 20.18  information about the teacher or administrator from the 
 20.19  district's files, any termination or disciplinary proceeding, 
 20.20  any settlement or compromise, or any investigative file.  Upon 
 20.21  written request from the appropriate licensing board, a board or 
 20.22  school superintendent may, at the discretion of the board or 
 20.23  school superintendent, solicit the written consent of a student 
 20.24  and the student's parent to provide the licensing board with 
 20.25  information that may aid the licensing board in its 
 20.26  investigation and license proceedings.  The licensing board's 
 20.27  request need not identify a student or parent by name.  The 
 20.28  consent of the student and the student's parent must meet the 
 20.29  requirements of chapter 13 and Code of Federal Regulations, 
 20.30  title 34, section 99.30.  The licensing board may provide a 
 20.31  consent form to the district.  Any data transmitted to any board 
 20.32  under this section is private data under section 13.02, 
 20.33  subdivision 12, notwithstanding any other classification of the 
 20.34  data when it was in the possession of any other agency. 
 20.35     The licensing board to which a report is made must transmit 
 20.36  to the Attorney General's Office any record or data it receives 
 21.1   under this subdivision for the sole purpose of having the 
 21.2   Attorney General's Office assist that board in its 
 21.3   investigation.  When the Attorney General's Office has informed 
 21.4   an employee of the appropriate licensing board in writing that 
 21.5   grounds exist to suspend or revoke a teacher's license to teach, 
 21.6   that licensing board must consider suspending or revoking or 
 21.7   decline to suspend or revoke the teacher's or administrator's 
 21.8   license within 45 days of receiving a stipulation executed by 
 21.9   the teacher or administrator under investigation or a 
 21.10  recommendation from an administrative law judge that 
 21.11  disciplinary action be taken. 
 21.12     Sec. 12.  Minnesota Statutes 2002, section 123B.195, is 
 21.13  amended to read: 
 21.14     123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
 21.15     Notwithstanding section 471.88, subdivision 5, a school 
 21.16  board member may be newly employed or may continue to be 
 21.17  employed by a school district as an employee only if there is a 
 21.18  reasonable expectation at the beginning of the fiscal year or at 
 21.19  the time the contract is entered into or extended that the 
 21.20  amount to be earned by that officer under that contract or 
 21.21  employment relationship will not exceed $5,000 $8,000 in that 
 21.22  fiscal year.  Notwithstanding section 122A.40 or 122A.41 or 
 21.23  other law, if the officer does not receive majority approval to 
 21.24  be initially employed or to continue in employment at a meeting 
 21.25  at which all board members are present, that employment is 
 21.26  immediately terminated and that officer has no further rights to 
 21.27  employment while serving as a school board member in the 
 21.28  district. 
 21.29     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 21.30  123B.90, subdivision 2, is amended to read: 
 21.31     Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
 21.32  provide public school pupils enrolled in kindergarten through 
 21.33  grade 10 with age-appropriate school bus safety training, as 
 21.34  described in this section, of the following concepts: 
 21.35     (1) transportation by school bus is a privilege and not a 
 21.36  right; 
 22.1      (2) district policies for student conduct and school bus 
 22.2   safety; 
 22.3      (3) appropriate conduct while on the school bus; 
 22.4      (4) the danger zones surrounding a school bus; 
 22.5      (5) procedures for safely boarding and leaving a school 
 22.6   bus; 
 22.7      (6) procedures for safe street or road crossing; and 
 22.8      (7) school bus evacuation. 
 22.9      (b) Each nonpublic school located within the district must 
 22.10  provide all nonpublic school pupils enrolled in kindergarten 
 22.11  through grade 10 who are transported by school bus at public 
 22.12  expense and attend school within the district's boundaries with 
 22.13  training as required in paragraph (a).  
 22.14     (c) Students enrolled in kindergarten through grade 6 who 
 22.15  are transported by school bus and are enrolled during the first 
 22.16  or second week of school must receive the school bus safety 
 22.17  training competencies by the end of the third week of school.  
 22.18  Students enrolled in grades 7 through 10 who are transported by 
 22.19  school bus and are enrolled during the first or second week of 
 22.20  school and have not previously received school bus safety 
 22.21  training in kindergarten through grade 6 must receive the 
 22.22  training or receive bus safety instructional materials by the 
 22.23  end of the sixth week of school.  Students taking driver's 
 22.24  training instructional classes and other students in grades 9 
 22.25  and 10 must receive training in the laws and proper procedures 
 22.26  when operating a motor vehicle in the vicinity of a school bus.  
 22.27  Students enrolled in kindergarten through grade 10 who enroll in 
 22.28  a school after the second week of school and are transported by 
 22.29  school bus and have not received training in their previous 
 22.30  school district shall undergo school bus safety training or 
 22.31  receive bus safety instructional materials within four weeks of 
 22.32  the first day of attendance.  The school transportation safety 
 22.33  director in each district must certify to the superintendent of 
 22.34  schools annually that all students transported by school bus 
 22.35  within the district have received the school bus safety training 
 22.36  according to this section.  The principal or other chief 
 23.1   administrator of each nonpublic school must certify annually to 
 23.2   the school transportation safety director of the district in 
 23.3   which the school is located that the school's students 
 23.4   transported by school bus at public expense have received 
 23.5   training according to this section.  
 23.6      (d) A district and a nonpublic school with students 
 23.7   transported by school bus at public expense may provide 
 23.8   kindergarten pupils with bus safety training before the first 
 23.9   day of school. 
 23.10     (e) A district and a nonpublic school with students 
 23.11  transported by school bus at public expense may also provide 
 23.12  student safety education for bicycling and pedestrian safety, 
 23.13  for students enrolled in kindergarten through grade 5. 
 23.14     (f) A district and a nonpublic school with students 
 23.15  transported by school bus at public expense must make reasonable 
 23.16  accommodations for the school bus safety training of pupils 
 23.17  known to speak English as a second language and pupils with 
 23.18  disabilities. 
 23.19     (g) The district and a nonpublic school with students 
 23.20  transported by school bus at public expense must provide 
 23.21  students enrolled in kindergarten through grade 3 school bus 
 23.22  safety training twice during the school year.  
 23.23     (h) A district and a nonpublic school with students 
 23.24  transported by school bus at public expense must conduct a 
 23.25  school bus evacuation drill at least once during the school year.
 23.26     Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 23.27  124D.11, subdivision 9, is amended to read: 
 23.28     Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
 23.29  Notwithstanding section 127A.45, subdivision 3, aid payments for 
 23.30  the current fiscal year to a charter school not in its first 
 23.31  year of operation shall be of an equal amount on each of the 23 
 23.32  payment dates.  A charter school in its first year of operation 
 23.33  shall receive, on its first payment date, ten percent of its 
 23.34  cumulative amount guaranteed for the year and 22 payments of an 
 23.35  equal amount thereafter the sum of which shall be 90 percent of 
 23.36  the cumulative amount guaranteed. 
 24.1      (b) Notwithstanding paragraph (a), for a charter school 
 24.2   ceasing operation prior to the end of a school year, 80 percent 
 24.3   of the amount due for the school year may be paid to the school 
 24.4   after audit of prior fiscal year and current fiscal year pupil 
 24.5   counts. 
 24.6      (c) Notwithstanding section 127A.45, subdivision 3, and 
 24.7   paragraph (a), 80 percent of the start-up cost aid under 
 24.8   subdivision 8 shall be paid within 45 days after the first day 
 24.9   of student attendance for that school year. 
 24.10     (d) In order to receive state aid payments under this 
 24.11  subdivision, a charter school in its first three years of 
 24.12  operation must submit a school calendar in the form and manner 
 24.13  requested by the department and a quarterly report to the 
 24.14  Department of Education.  The report must list each student by 
 24.15  grade, show the student's start and end dates, if any, with the 
 24.16  charter school, and for any student participating in a learning 
 24.17  year program, the report must list the hours and times of 
 24.18  learning year activities.  The report must be submitted not more 
 24.19  than two weeks after the end of the calendar quarter to the 
 24.20  department.  The department must develop a Web-based reporting 
 24.21  form for charter schools to use when submitting enrollment 
 24.22  reports.  A charter school in its fourth and subsequent year of 
 24.23  operation must submit a school calendar and enrollment 
 24.24  information to the department in the form and manner requested 
 24.25  by the department. 
 24.26     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 24.27  128C.05, subdivision 1a, is amended to read: 
 24.28     Subd. 1a.  [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 
 24.29  Notwithstanding Minnesota Rules, part 4717.3750, any pool built 
 24.30  before January 1, 1987, that was used for a high school diving 
 24.31  program during the 2000-2001 school year may be used for 
 24.32  supervised competitive high school diving unless a pool that 
 24.33  meets the requirements of Minnesota Rules, part 4717.3750, is 
 24.34  located within the school district.  Schools and school 
 24.35  districts are strongly encouraged to use a pool for supervised 
 24.36  competitive high school diving that meets the requirements of 
 25.1   Minnesota Rules, part 4717.3750.  A school or district using a 
 25.2   pool for supervised competitive high school diving that does not 
 25.3   meet the requirements of the rule must provide appropriate 
 25.4   notice to parents and participants. 
 25.5      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 25.6   following final enactment. 
 25.7      Sec. 16.  Minnesota Statutes 2002, section 168.012, 
 25.8   subdivision 10, is amended to read: 
 25.9      Subd. 10.  [EXEMPTION DETERMINED BY USE.] If a vehicle is 
 25.10  used for a purpose which would make it exempt pursuant to 
 25.11  subdivision 1 but title is held by a seller or a vendor or is 
 25.12  assigned to a third party under a lease agreement or a lease 
 25.13  purchase agreement or installment sale permitted under section 
 25.14  465.71, exemption shall be determined by the use rather than the 
 25.15  holder of the title.  
 25.16     Sec. 17.  Minnesota Statutes 2002, section 169.01, 
 25.17  subdivision 6, is amended to read: 
 25.18     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 25.19  used to transport pupils to or from a school defined in section 
 25.20  120A.22, or to or from school-related activities, by the school 
 25.21  or a school district, or by someone under an agreement with the 
 25.22  school or a school district.  A school bus does not include a 
 25.23  motor vehicle transporting children to or from school for which 
 25.24  parents or guardians receive direct compensation from a school 
 25.25  district, a motor coach operating under charter carrier 
 25.26  authority, a transit bus providing services as defined in 
 25.27  section 174.22, subdivision 7, a multifunction school activity 
 25.28  bus as defined by federal motor vehicle safety standards, or a 
 25.29  vehicle otherwise qualifying as a type III vehicle under 
 25.30  paragraph (5), when the vehicle is properly registered and 
 25.31  insured and being driven by an employee or agent of a school 
 25.32  district for nonscheduled or nonregular transportation.  A 
 25.33  school bus may be type A, type B, type C, or type D, or type III 
 25.34  as follows:  
 25.35     (1) A "type A school bus" is a van conversion or body bus 
 25.36  constructed upon a van-type or utilizing a cutaway front section 
 26.1   vehicle with a left-side driver's door, designed for carrying 
 26.2   more than ten persons.  The entrance door is behind the front 
 26.3   wheels.  This definition includes two classifications:  type 
 26.4   A-I, with a gross vehicle weight rating (GVWR) over less than or 
 26.5   equal to 10,000 pounds; and type A-II, with a GVWR of greater 
 26.6   than 10,000 pounds or less. 
 26.7      (2) A "type B school bus" is a conversion or body 
 26.8   constructed and installed upon a van or front-section vehicle 
 26.9   chassis, or utilizing a stripped chassis, with a gross vehicle 
 26.10  weight rating of more than 10,000 pounds, designed for carrying 
 26.11  more than ten persons.  Part of the engine is beneath or behind 
 26.12  the windshield and beside the driver's seat.  The entrance door 
 26.13  is behind the front wheels.  This definition includes two 
 26.14  classifications:  type B-I, with a GVWR less than or equal to 
 26.15  10,000 pounds; and type B-II, with a GVWR greater than 10,000 
 26.16  pounds.  
 26.17     (3) A "type C school bus" is a body installed upon a flat 
 26.18  back cowl constructed utilizing a chassis with a gross vehicle 
 26.19  weight rating of more than 10,000 pounds, designed for carrying 
 26.20  more than ten persons.  All of the engine is in front of the 
 26.21  windshield and hood and front fender assembly.  The entrance 
 26.22  door is behind the front wheels.  A type C school bus has a 
 26.23  maximum length of 45 feet.  
 26.24     (4) A "type D school bus" is a body installed upon a 
 26.25  constructed utilizing a stripped chassis, with the engine 
 26.26  mounted in the front, midship or rear, with a gross vehicle 
 26.27  weight rating of more than 10,000 pounds, designed for carrying 
 26.28  more than ten persons.  The engine may be behind the windshield 
 26.29  and beside the driver's seat; it may be at the rear of the bus, 
 26.30  behind the rear wheels, or midship between the front and rear 
 26.31  axles.  The entrance door is ahead of the front wheels.  A type 
 26.32  D school bus has a maximum length of 45 feet.  
 26.33     (5) Type III school buses and type III Head Start buses are 
 26.34  restricted to passenger cars, station wagons, vans, and buses 
 26.35  having a maximum manufacturer's rated seating capacity of ten or 
 26.36  fewer people, including the driver, and a gross vehicle weight 
 27.1   rating of 10,000 pounds or less.  In this subdivision, "gross 
 27.2   vehicle weight rating" means the value specified by the 
 27.3   manufacturer as the loaded weight of a single vehicle.  A "type 
 27.4   III school bus" and "type III Head Start bus" must not be 
 27.5   outwardly equipped and identified as a type A, B, C, or D school 
 27.6   bus or type A, B, C, or D Head Start bus.  A van or bus 
 27.7   converted to a seating capacity of ten or fewer and placed in 
 27.8   service on or after August 1, 1999, must have been originally 
 27.9   manufactured to comply with the passenger safety standards. 
 27.10     Sec. 18.  Minnesota Statutes 2002, section 169.01, 
 27.11  subdivision 75, is amended to read: 
 27.12     Subd. 75.  [COMMERCIAL MOTOR VEHICLE.] (a) "Commercial 
 27.13  motor vehicle" means a motor vehicle or combination of motor 
 27.14  vehicles used to transport passengers or property if the motor 
 27.15  vehicle: 
 27.16     (1) has a gross vehicle weight of more than 26,000 pounds; 
 27.17     (2) has a towed unit with a gross vehicle weight of more 
 27.18  than 10,000 pounds and the combination of vehicles has a 
 27.19  combined gross vehicle weight of more than 26,000 pounds; 
 27.20     (3) is a bus; 
 27.21     (4) is of any size and is used in the transportation of 
 27.22  hazardous materials, except for those vehicles having a gross 
 27.23  vehicle weight of 26,000 pounds or less while carrying in bulk 
 27.24  tanks a total of not more than 200 gallons of petroleum products 
 27.25  and liquid fertilizer; or 
 27.26     (5) is outwardly equipped and identified as a school bus, 
 27.27  except for type A-II A-I and type III school buses as defined in 
 27.28  subdivision 6. 
 27.29     (b) For purposes of chapter 169A: 
 27.30     (1) a commercial motor vehicle does not include a farm 
 27.31  truck, fire-fighting equipment, or recreational equipment being 
 27.32  operated by a person within the scope of section 171.02, 
 27.33  subdivision 2, paragraph (b); and 
 27.34     (2) a commercial motor vehicle includes a vehicle capable 
 27.35  of or designed to meet the standards described in paragraph (a), 
 27.36  clause (2), whether or not the towed unit is attached to the 
 28.1   truck-tractor at the time of the violation or stop. 
 28.2      Sec. 19.  Minnesota Statutes 2002, section 169.442, 
 28.3   subdivision 1, is amended to read: 
 28.4      Subdivision 1.  [SIGNALS REQUIRED.] A type A, B, C, or D 
 28.5   school bus must be equipped with a at least one stop-signal arm, 
 28.6   prewarning flashing amber signals, and flashing red signals. 
 28.7      Sec. 20.  Minnesota Statutes 2002, section 169.442, 
 28.8   subdivision 5, is amended to read: 
 28.9      Subd. 5.  [WHITE STROBE LAMPS ON CERTAIN BUSES TRANSPORTING 
 28.10  CHILDREN.] (a) Notwithstanding sections 169.55, subdivision 1; 
 28.11  169.57, subdivision 3, paragraph (b), or other law to the 
 28.12  contrary, a school bus that is subject to and complies with the 
 28.13  equipment requirements of subdivision 1 and section 169.441, 
 28.14  subdivision 1, or a Head Start bus that is not a type III bus 
 28.15  defined in section 169.01, subdivision 6, may be equipped with a 
 28.16  360-degree, flashing strobe lamp that emits a white light with a 
 28.17  flash rate of 60 to 120 flashes a minute.  The lamp may be used 
 28.18  only as provided in this subdivision.  
 28.19     (b) The strobe lamp must be of a double flash type 
 28.20  certified to the commissioner of public safety by the 
 28.21  manufacturer as being weatherproof and having a minimum 
 28.22  effective light output of 200 candelas as measured by the 
 28.23  Blondel-Rey formula.  The lamp must be permanently mounted on 
 28.24  the longitudinal centerline of the bus roof not less than two 
 28.25  feet nor more than seven feet forward of the rear roof edge.  It 
 28.26  must operate from a separate switch containing an indicator lamp 
 28.27  to show when the strobe lamp is in use.  
 28.28     (c) The strobe lamp may be lighted only when atmospheric 
 28.29  conditions or terrain restrict the visibility of school bus 
 28.30  lamps and signals or Head Start bus lamps and signals so as to 
 28.31  require use of the bright strobe lamp to alert motorists to the 
 28.32  presence of the school bus or Head Start bus.  A strobe lamp may 
 28.33  not be lighted unless the school bus or Head Start bus is 
 28.34  actually being used as a school bus or Head Start bus. 
 28.35     Sec. 21.  Minnesota Statutes 2002, section 169.443, 
 28.36  subdivision 1, is amended to read: 
 29.1      Subdivision 1.  [USING BUS SIGNALS.] A driver of a school 
 29.2   bus shall activate the prewarning flashing amber signals of the 
 29.3   bus before stopping to load or unload school children.  The 
 29.4   driver shall activate and continuously operate the amber signals 
 29.5   for a distance of at least 100 feet before stopping in a speed 
 29.6   zone of 35 miles per hour or less and at least 300 feet before 
 29.7   stopping in a speed zone of more than 35 miles per hour.  On 
 29.8   stopping for this purpose, the driver shall extend the 
 29.9   stop-signal arm system and activate the flashing red signals.  
 29.10  The driver shall not retract the stop-signal arm system nor 
 29.11  extinguish the flashing red signals until loading or unloading 
 29.12  is completed, students are seated, and children who must cross 
 29.13  the roadway are safely across. 
 29.14     Sec. 22.  Minnesota Statutes 2002, section 169.443, 
 29.15  subdivision 2, is amended to read: 
 29.16     Subd. 2.  [USE OF STOP-SIGNAL ARM.] (a) The stop-signal arm 
 29.17  system of a school bus must be used in conjunction with the 
 29.18  flashing red signals only when the school bus is stopped on a 
 29.19  street or highway to load or unload school children. 
 29.20     (b) A local authority, including the governing body of an 
 29.21  Indian tribe, may by ordinance require that a school bus 
 29.22  activate the stop-signal arm system and flashing red signals 
 29.23  while stopped to unload school children at a location other than 
 29.24  a location on a street or highway.  The ordinance must designate 
 29.25  each location where the requirement is imposed.  The requirement 
 29.26  is effective only if the local authority has erected signs at or 
 29.27  near the location to provide adequate notice that other vehicles 
 29.28  are required to obey section 169.444, subdivision 1, when those 
 29.29  signals are activated. 
 29.30     Sec. 23.  Minnesota Statutes 2002, section 169.4501, 
 29.31  subdivision 1, is amended to read: 
 29.32     Subdivision 1.  [NATIONAL STANDARDS ADOPTED.] Except as 
 29.33  provided in sections 169.4502 and 169.4503, the construction, 
 29.34  design, equipment, and color of types A, B, C, and D school 
 29.35  buses used for the transportation of school children shall meet 
 29.36  the requirements of the "bus chassis standards" and "bus body 
 30.1   standards" in the 1995 revised 2000 edition of the "National 
 30.2   Standards for School Buses and School Bus 
 30.3   Operations Transportation Specifications and Procedures" adopted 
 30.4   by the Twelfth National Conference on School Transportation.  
 30.5   Except as provided in section 169.4504, the construction, 
 30.6   design, and equipment of types A, B, C, and D school buses used 
 30.7   for the transportation of students with disabilities also shall 
 30.8   meet the requirements of the "specially equipped school bus 
 30.9   standards" in the 1995 2000 National Standards for School Buses 
 30.10  and School Bus Operations Transportation Specifications and 
 30.11  Procedures.  The "bus chassis standards," "bus body standards," 
 30.12  and "specially equipped school bus standards" sections of 
 30.13  the 1995 revised 2000 edition of the "National Standards for 
 30.14  School Buses and School Bus Operations Transportation 
 30.15  Specifications and Procedures" are incorporated by reference in 
 30.16  this chapter. 
 30.17     Sec. 24.  Minnesota Statutes 2002, section 169.4501, 
 30.18  subdivision 2, is amended to read: 
 30.19     Subd. 2.  [APPLICABILITY.] (a) The standards adopted in 
 30.20  this section and sections 169.4502 and 169.4503, govern the 
 30.21  construction, design, equipment, and color of school buses used 
 30.22  for the transportation of school children, when owned or leased 
 30.23  and operated by a school or privately owned or leased and 
 30.24  operated under a contract with a school, and these standards 
 30.25  must be made a part of that contract by reference.  Each school, 
 30.26  its officers and employees, and each person employed under the 
 30.27  contract is subject to these standards. 
 30.28     (b) The standards apply to school buses manufactured after 
 30.29  December 31, 1997 October 31, 2004.  Buses complying with these 
 30.30  the standards when manufactured need not comply with standards 
 30.31  established later except as specifically provided for by law. 
 30.32     (c) A school bus manufactured on or before December 31, 
 30.33  1997 October 31, 2004, must conform to the Minnesota standards 
 30.34  in effect on the date the vehicle was manufactured except as 
 30.35  specifically provided for in law. 
 30.36     (d) A new bus body may be remounted on a used chassis 
 31.1   provided that the remounted vehicle meets state and federal 
 31.2   standards for new buses which are current at the time of the 
 31.3   remounting.  Permission must be obtained from the commissioner 
 31.4   of public safety before the remounting is done.  A used bus body 
 31.5   may not be remounted on a new or used chassis. 
 31.6      Sec. 25.  Minnesota Statutes 2002, section 169.4502, 
 31.7   subdivision 11, is amended to read: 
 31.8      Subd. 11.  [TIRE AND RIM.] The use of multipiece rims or 
 31.9   tube-type tires is not permitted on school buses manufactured 
 31.10  after October 31, 2004.  Radial and bias-ply tires shall not be 
 31.11  used on the same axle.  Front tire tread depth shall not be less 
 31.12  than 4/32 inch in any major tire tread groove.  Rear tire tread 
 31.13  shall not be less than 2/32 inch.  Tires must be measured in 
 31.14  three locations around the tire, in two adjoining grooves.  No 
 31.15  recapped tires shall be used on the front wheels.  Recapped 
 31.16  tires are permitted on the rear wheels. 
 31.17     Sec. 26.  Minnesota Statutes 2002, section 169.4503, 
 31.18  subdivision 5, is amended to read: 
 31.19     Subd. 5.  [COLORS AND REFLECTIVE MATERIALS.] Fenderettes 
 31.20  may be black.  The beltline may be painted yellow over black or 
 31.21  black over yellow.  The rub rails shall be black.  The 
 31.22  reflective material on the sides of the bus body shall be at 
 31.23  least one inch but not more than two inches in width.  This 
 31.24  reflective material requirement and the requirement that "SCHOOL 
 31.25  BUS" signs have reflective material as background are effective 
 31.26  for buses manufactured after January 1, 1996. 
 31.27     Sec. 27.  Minnesota Statutes 2002, section 169.4503, 
 31.28  subdivision 14, is amended to read: 
 31.29     Subd. 14.  [INSULATION.] (a) Ceilings and walls shall be 
 31.30  insulated to a minimum of 1-1/2 inch fiberglass and installed so 
 31.31  the insulation does not compact or sag.  Floor insulation must 
 31.32  be nominal 19/32 inches thick plywood, or a material of equal or 
 31.33  greater strength and insulation R value that equals or exceeds 
 31.34  properties of exterior-type softwood plywood, C-D grade as 
 31.35  specified in standard issued by the United States Department of 
 31.36  Commerce.  Type A-II buses must have a minimum of one-half inch 
 32.1   plywood.  All exposed edges on plywood shall be sealed.  Every 
 32.2   school bus shall be constructed so that the noise level taken at 
 32.3   the ear of the occupant nearest to the primary vehicle noise 
 32.4   source shall not exceed 85 dba when tested according to 
 32.5   procedures in the 1995 National Standards for School Buses and 
 32.6   School Bus Operations Thermal insulation is required.  It shall 
 32.7   be fire-resistant, UL approved, with minimum R-value of 5.5.  
 32.8   Insulation shall be installed so as to prevent sagging. 
 32.9      (b) The underside of metal floor may be undercoated with 
 32.10  polyurethane floor insulation, foamed in place.  The floor 
 32.11  insulation must be combustion resistant.  The authorization in 
 32.12  this paragraph does not replace the plywood requirement Floor 
 32.13  insulation is required.  It shall be five-ply nominal 
 32.14  five-eighths inch-thick plywood, and shall equal or exceed 
 32.15  properties of the exterior-type softwood plywood, C-D Grade, as 
 32.16  specified in the standard issued by United States Department of 
 32.17  Commerce.  All exposed edges on plywood shall be sealed.  Type 
 32.18  A-I buses shall be equipped with nominal one-half inch-thick 
 32.19  plywood or equivalent material meeting the above requirements.  
 32.20  Equivalent material may be used to replace plywood, provided it 
 32.21  has an equal or greater insulation R value, deterioration, sound 
 32.22  abatement, and moisture resistance properties. 
 32.23     Sec. 28.  Minnesota Statutes 2002, section 169.4503, 
 32.24  subdivision 16, is amended to read: 
 32.25     Subd. 16.  [LAMPS AND SIGNALS.] (a) Each school bus shall 
 32.26  be equipped with a system consisting of four red signal lamps 
 32.27  designed to conform to SAE Standard J887, and four amber signal 
 32.28  lamps designed to that standard, except for color, and except 
 32.29  that their candlepower must be at least 2-1/2 times that 
 32.30  specified for red turn-signal lamps.  Both red and amber signal 
 32.31  lamps must be installed in accordance with SAE Standard J887, 
 32.32  except that each amber signal lamp must be located near each red 
 32.33  signal lamp, at the same level, but closer to the centerline of 
 32.34  the bus.  The system must be wired so that the amber signal 
 32.35  lamps are activated only by hand operation, and if activated, 
 32.36  are automatically deactivated and the red signal lamps are 
 33.1   automatically activated when the bus entrance door is opened.  
 33.2   Signal lamps must flash alternately.  Each signal lamp must 
 33.3   flash not less than 60 nor more than 120 flashes per minute.  
 33.4   The "on" period must be long enough to permit filament to come 
 33.5   up to full brightness.  There must be a pilot lamp which goes on 
 33.6   when the respective amber or red system is activated.  The pilot 
 33.7   lamp must either go out or flash at an alternate rate in the 
 33.8   event the system is not functioning normally.  The signal lamp 
 33.9   system must include a closed control box.  The box must be as 
 33.10  small as practical, and must be easily dismounted or partially 
 33.11  disassembled to provide access for maintenance purposes.  The 
 33.12  control panel box shall be arranged such that the momentary 
 33.13  activating switch for the eight-lamp warning system shall be 
 33.14  located on the left, the red (or red and amber) pilot light 
 33.15  shall be located in the middle, and the eight-way master switch 
 33.16  shall be located on the right.  The control box must be securely 
 33.17  mounted to the right of the steering wheel, within easy 
 33.18  unobstructed reach of the driver.  Switches and pilot lamp must 
 33.19  be readily visible to the driver.  The activating switch may be 
 33.20  self-illuminated.  Other warning devices or lamp controls must 
 33.21  not be placed near the lamp control.  The stop arm shall extend 
 33.22  automatically whenever the service entrance door is opened and 
 33.23  the eight-way lights are activated. 
 33.24     (b) If installed, a white flashing strobe shall be of a 
 33.25  double flash type and have minimum effective light output of 200 
 33.26  candelas.  No roof hatch can be mounted behind the strobe light. 
 33.27     (c) Type B, C, and D buses shall have an amber clearance 
 33.28  lamp with a minimum of four candlepower mounted on the right 
 33.29  side of the body at approximately seat-level rub rail height 
 33.30  just to the rear of the service door and another one at 
 33.31  approximately opposite the driver's seat on the left side.  
 33.32  These lamps are to be connected to operate only with the regular 
 33.33  turn-signal lamps. 
 33.34     (d) (b) All lamps on the exterior of the vehicle must 
 33.35  conform with and be installed as required by federal motor 
 33.36  vehicle safety standard number 108, Code of Federal Regulations, 
 34.1   title 49, part 571. 
 34.2      (e) (c) A type A, B, C, or D school bus manufactured for 
 34.3   use in Minnesota after December 31, 1994, may not be equipped 
 34.4   with red turn-signal lenses on the rear of the bus. 
 34.5      Sec. 29.  Minnesota Statutes 2002, section 169.4503, 
 34.6   subdivision 20, is amended to read: 
 34.7      Subd. 20.  [SEAT AND CRASH BARRIERS.] All restraining 
 34.8   barriers and passenger seats shall be covered with a material 
 34.9   that has fire retardant or fire block characteristics.  All 
 34.10  seats must face forward.  All seat and crash barriers must be 
 34.11  installed according to and conform to federal motor vehicle 
 34.12  safety standard number 222, Code of Federal Regulations, title 
 34.13  49, part 571. 
 34.14     Sec. 30.  Minnesota Statutes 2002, section 169.4503, is 
 34.15  amended by adding a subdivision to read: 
 34.16     Subd. 26.  [CROSSING CONTROL ARM.] If a bus is equipped 
 34.17  with a crossing control arm, an automatic recycling interrupt 
 34.18  switch may be installed for temporary disabling of the crossing 
 34.19  control arm.  
 34.20     Sec. 31.  Minnesota Statutes 2003 Supplement, section 
 34.21  171.321, subdivision 5, is amended to read: 
 34.22     Subd. 5.  [ANNUAL EVALUATION AND LICENSE VERIFICATION.] (a) 
 34.23  A school district, nonpublic school, or private contractor shall 
 34.24  provide in-service training annually to each school bus driver.  
 34.25     (b) A school district, nonpublic school, or private 
 34.26  contractor shall annually verify the validity of the driver's 
 34.27  license of each person employee who regularly transports 
 34.28  students for the district in a type A school bus, a type B 
 34.29  school bus, a type C school bus, or type D school bus, or 
 34.30  regularly transports students for the district in a type III 
 34.31  vehicle with the National Driver Register or with the Department 
 34.32  of Public Safety. 
 34.33     Sec. 32.  [RULEMAKING AUTHORITY.] 
 34.34     Subdivision 1.  [SUPPLEMENTAL EDUCATION SERVICE PROVIDERS.] 
 34.35  The commissioner of education shall adopt rules under Minnesota 
 34.36  Statutes, chapter 14, making permanent the supplemental 
 35.1   education service provider exempt rules authorized under Laws 
 35.2   2003, chapter 129, article 2, section 3. 
 35.3      Subd. 2.  [STATEWIDE TESTING.] The commissioner of 
 35.4   education shall adopt rules under Minnesota Statutes, chapter 
 35.5   14, for the administration of statewide accountability tests 
 35.6   under Minnesota Statutes, section 120B.30, to ensure security 
 35.7   and integrity of the tests and test results. 
 35.8      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 35.9   following final enactment. 
 35.10     Sec. 33.  [COMPARATIVE ASSESSMENT STUDY.] 
 35.11     The Office of Education Accountability at the University of 
 35.12  Minnesota, in consultation with the Department of Education, 
 35.13  shall conduct a study on the cost of implementing a 
 35.14  computer-based adaptive test to replace the Minnesota 
 35.15  comprehensive assessments.  The Office of Educational 
 35.16  Accountability shall report to the education committees of the 
 35.17  legislature the results of the study by June 15, 2005. 
 35.18     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 35.19  following final enactment. 
 35.20     Sec. 34.  [REPEALER.] 
 35.21     Minnesota Statutes 2002, sections 169.447, subdivision 6; 
 35.22  169.4502, subdivisions 7, 9, 13, and 14; 169.4503, subdivisions 
 35.23  10, 10a, 21, and 25, are repealed effective October 31, 2004. 
 35.24                             ARTICLE 3 
 35.25                          SPECIAL PROGRAMS 
 35.26     Section 1.  Minnesota Statutes 2002, section 125A.023, 
 35.27  subdivision 3, is amended to read: 
 35.28     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
 35.29  section 125A.027, the following terms have the meanings given 
 35.30  them: 
 35.31     (a) "Health plan" means: 
 35.32     (1) a health plan under section 62Q.01, subdivision 3; 
 35.33     (2) a county-based purchasing plan under section 256B.692; 
 35.34     (3) a self-insured health plan established by a local 
 35.35  government under section 471.617; or 
 35.36     (4) self-insured health coverage provided by the state to 
 36.1   its employees or retirees. 
 36.2      (b) For purposes of this section, "health plan company" 
 36.3   means an entity that issues a health plan as defined in 
 36.4   paragraph (a). 
 36.5      (c) "Individual interagency intervention plan" means a 
 36.6   standardized written plan describing those programs or services 
 36.7   and the accompanying funding sources available to eligible 
 36.8   children with disabilities. 
 36.9      (d) "Interagency intervention service system" means a 
 36.10  system that coordinates services and programs required in state 
 36.11  and federal law to meet the needs of eligible children with 
 36.12  disabilities ages three to birth through 21, including: 
 36.13     (1) services provided under the following programs or 
 36.14  initiatives administered by state or local agencies: 
 36.15     (i) the maternal and child health program under title V of 
 36.16  the Social Security Act, United States Code, title 42, sections 
 36.17  701 to 709; 
 36.18     (ii) the Minnesota Children with Special Health Needs 
 36.19  program under sections 144.05 and 144.07; 
 36.20     (iii) the Individuals with Disabilities Education Act under 
 36.21  United States Code, title 20, chapter 33, subchapter II, 
 36.22  sections 1411 to 1420, Part B, section 619, and Part C as 
 36.23  amended; 
 36.24     (iii) (iv) medical assistance under title 42, chapter 7, of 
 36.25  the Social Security Act, United States Code, title 42, chapter 
 36.26  7, subchapter XIX, section 1396, et seq.; 
 36.27     (iv) (v) the developmental disabilities Assistance and Bill 
 36.28  of Rights Act, United States Code, title 42, chapter 75, 
 36.29  subchapter II, sections 6021 to 6030, Part B services under 
 36.30  chapter 256B; 
 36.31     (v) (vi) the Head Start Act, United States Code, title 42, 
 36.32  chapter 105, subchapter II, sections 9831 to 9852 under title 
 36.33  42, chapter 105, of the Social Security Act; 
 36.34     (vi) (vii) vocational rehabilitation services provided 
 36.35  under chapter chapters 248 and 268A and the Rehabilitation Act 
 36.36  of 1973; 
 37.1      (vii) (viii) Juvenile Court Act services provided under 
 37.2   sections 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 
 37.3   to 260C.451; 
 37.4      (viii) the children's mental health collaboratives under 
 37.5   section 245.493; 
 37.6      (ix) the family service collaboratives under section 
 37.7   124D.23; 
 37.8      (x) the family community support plan under section 
 37.9   245.4881, subdivision 4; 
 37.10     (xi) the MinnesotaCare program under chapter 256L; 
 37.11     (xii) (ix) Minnesota Comprehensive Children's Mental Health 
 37.12  Act under section 245.487; 
 37.13     (x) the community health services grants under chapter 
 37.14  145 sections 145.88 to 145.9266; 
 37.15     (xiii) the Community Social Services Act funding under the 
 37.16  Social Security Act, United States Code, title 42, sections 1397 
 37.17  to 1397f; and 
 37.18     (xiv) the community transition interagency committees under 
 37.19  section 125A.22; 
 37.20     (xi) the Local Public Health Act under chapter 145A; and 
 37.21     (xii) the Children and Community Services Act, sections 
 37.22  256M.60 to 256M.80; 
 37.23     (2) service provision and funding that can be coordinated 
 37.24  through: 
 37.25     (i) the children's mental health collaborative under 
 37.26  section 245.493; 
 37.27     (ii) the family services collaborative under section 
 37.28  124D.23; 
 37.29     (iii) the community transition interagency committees under 
 37.30  section 125A.22; and 
 37.31     (iv) the interagency early intervention committees under 
 37.32  section 125A.259; 
 37.33     (3) financial and other funding programs to be coordinated 
 37.34  including medical assistance under title 42, chapter 7, of the 
 37.35  Social Security Act, the MinnesotaCare program under chapter 
 37.36  256L, Supplemental Social Security Income, Developmental 
 38.1   Disabilities Assistance, and any other employment-related 
 38.2   activities associated with the Social Security Administration; 
 38.3   and services provided under a health plan in conformity with an 
 38.4   individual family service plan or an individual education 
 38.5   plan or an individual interagency intervention plan; and 
 38.6      (3) (4) additional appropriate services that local agencies 
 38.7   and counties provide on an individual need basis upon 
 38.8   determining eligibility and receiving a request from the 
 38.9   interagency early intervention committee and the child's parent. 
 38.10     (e) "Children with disabilities" has the meaning given in 
 38.11  section 125A.02. 
 38.12     (f) A "standardized written plan" means those individual 
 38.13  services or programs available through the interagency 
 38.14  intervention service system to an eligible child other than the 
 38.15  services or programs described in the child's individual 
 38.16  education plan or the child's individual family service plan. 
 38.17     Sec. 2.  Minnesota Statutes 2002, section 125A.03, is 
 38.18  amended to read: 
 38.19     125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 38.20  DISABILITY.] 
 38.21     (a) As defined in paragraph (b), every district must 
 38.22  provide special instruction and services, either within the 
 38.23  district or in another district, for all children with a 
 38.24  disability, including providing required services under the Code 
 38.25  of Federal Regulations, title 34, section 300.121, paragraph 
 38.26  (d), to those children suspended or expelled from school for 
 38.27  more than ten school days in that school year, who are residents 
 38.28  of the district and who are disabled as set forth in section 
 38.29  125A.02.  For purposes of state and federal special education 
 38.30  laws, the phrase "special instruction and services" in the state 
 38.31  education code means a free and appropriate public education 
 38.32  provided to an eligible child with disabilities and includes 
 38.33  special education and related services defined in the 
 38.34  Individuals with Disabilities Education Act, subpart A, section 
 38.35  300.24.  
 38.36     (b) Notwithstanding any age limits in laws to the contrary, 
 39.1   special instruction and services must be provided from birth 
 39.2   until July 1 after the child with a disability becomes 21 years 
 39.3   old but shall not extend beyond secondary school or its 
 39.4   equivalent, except as provided in section 124D.68, subdivision 
 39.5   2.  Local health, education, and social service agencies must 
 39.6   refer children under age five who are known to need or suspected 
 39.7   of needing special instruction and services to the school 
 39.8   district.  Districts with less than the minimum number of 
 39.9   eligible children with a disability as determined by the 
 39.10  commissioner must cooperate with other districts to maintain a 
 39.11  full range of programs for education and services for children 
 39.12  with a disability.  This section does not alter the compulsory 
 39.13  attendance requirements of section 120A.22. 
 39.14     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 39.15  following final enactment. 
 39.16                             ARTICLE 4 
 39.17                             FACILITIES 
 39.18     Section 1.  Minnesota Statutes 2002, section 123B.53, 
 39.19  subdivision 6, is amended to read: 
 39.20     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] (a) A district's 
 39.21  debt service equalization aid is the sum of the district's first 
 39.22  tier debt service equalization aid and the district's second 
 39.23  tier debt service equalization aid. 
 39.24     (b) A district's first tier debt service equalization aid 
 39.25  equals the difference between the district's first tier debt 
 39.26  service equalization revenue and the district's first tier 
 39.27  equalized debt service levy. 
 39.28     (c) A district's second tier debt service equalization aid 
 39.29  equals the difference between the district's second tier debt 
 39.30  service equalization revenue and the district's second tier 
 39.31  equalized debt service levy. 
 39.32     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 39.33  475.61, subdivision 4, is amended to read: 
 39.34     Subd. 4.  [SURPLUS FUNDS.] (a) All such taxes shall be 
 39.35  collected and remitted to the municipality by the county 
 39.36  treasurer as other taxes are collected and remitted, and shall 
 40.1   be used only for payment of the obligations on account of which 
 40.2   levied or to repay advances from other funds used for such 
 40.3   payments, except that any surplus remaining in the debt service 
 40.4   fund when the obligations and interest thereon are paid may be 
 40.5   appropriated to any other general purpose by the municipality.  
 40.6   However, the amount of any surplus remaining in the debt service 
 40.7   fund of a school district when the obligations and interest 
 40.8   thereon are paid shall be used to reduce the general fund levy 
 40.9   authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 
 40.10  and the state aids authorized pursuant to chapters 122A, 123A, 
 40.11  123B, 124D, 125A, 126C, and 127A. 
 40.12     (b) If the district qualified for second tier debt service 
 40.13  equalization aid in the last year that it qualified for debt 
 40.14  service equalization aid, the reduction to state aids equals the 
 40.15  lesser of (1) the amount of the surplus times the ratio of the 
 40.16  district's second tier debt service equalization aid to the 
 40.17  district's second tier debt service equalization revenue for the 
 40.18  last year that the district qualified for debt service 
 40.19  equalization aid; or (2) the district's cumulative amount of 
 40.20  debt service equalization aid. 
 40.21     (c) If the district did not qualify for second tier debt 
 40.22  service equalization aid in the last year that it qualified for 
 40.23  debt service equalization aid, the reduction to state aids 
 40.24  equals the lesser of (1) the amount of the surplus times the 
 40.25  ratio of the district's debt service equalization aid to the 
 40.26  district's debt service equalization revenue for the last year 
 40.27  that the district qualified for debt service equalization aid; 
 40.28  or (2) the district's cumulative amount of debt service 
 40.29  equalization aid.  
 40.30     (c) (d) The reduction to the general fund levy equals the 
 40.31  total amount of the surplus minus the reduction to state aids. 
 40.32     <h>[EFFECTIVE DATE.]</h> This section is effective for revenue for 
 40.33  fiscal year 2005. 
 40.34                             ARTICLE 5 
 40.35                TECHNICAL AND CONFORMING AMENDMENTS 
 40.36     Section 1.  Minnesota Statutes 2003 Supplement, section 
 41.1   120B.021, subdivision 3, is amended to read: 
 41.2      Subd. 3.  [RULEMAKING.] (a) The commissioner, consistent 
 41.3   with the requirements of this section and section 120B.022, must 
 41.4   adopt statewide rules under section 14.389 for implementing 
 41.5   statewide rigorous core academic standards in language arts, 
 41.6   mathematics, and the arts.  After the rules authorized under 
 41.7   this paragraph are initially adopted, the commissioner may not 
 41.8   amend or repeal these rules nor adopt new rules on the same 
 41.9   topic without specific legislative authorization.  These 
 41.10  academic standards must be implemented for all students 
 41.11  beginning in the 2003-2004 school year. 
 41.12     (b) The rules authorized under this section are not subject 
 41.13  to section 14.127. 
 41.14     Sec. 2.  Minnesota Statutes 2002, section 120B.35, is 
 41.15  amended by adding a subdivision to read: 
 41.16     Subd. 5.  [IMPROVING GRADUATION RATES FOR STUDENTS WITH 
 41.17  EMOTIONAL OR BEHAVIORAL DISORDERS.] (a) A district must develop 
 41.18  strategies in conjunction with parents of students with 
 41.19  emotional or behavioral disorders and the county board 
 41.20  responsible for implementing sections 245.487 to 245.4887 to 
 41.21  keep students with emotional or behavioral disorders in school, 
 41.22  when the district has a drop-out rate for students with an 
 41.23  emotional or behavioral disorder in grades 9 through 12 
 41.24  exceeding 25 percent. 
 41.25     (b) A district must develop a plan in conjunction with 
 41.26  parents of students with emotional or behavioral disorders and 
 41.27  the local mental health authority to increase the graduation 
 41.28  rates of students with emotional or behavioral disorders.  A 
 41.29  district with a drop-out rate for children with an emotional or 
 41.30  behavioral disturbance in grades 9 through 12 that is in the top 
 41.31  25 percent of all districts shall submit a plan for review and 
 41.32  oversight to the commissioner. 
 41.33     Sec. 3.  Minnesota Statutes 2002, section 123A.442, 
 41.34  subdivision 2, is amended to read: 
 41.35     Subd. 2.  [COOPERATION AND COMBINATION.] Districts that 
 41.36  receive a cooperative secondary facilities grant after May 1, 
 42.1   1991, shall: 
 42.2      (1) submit a plan as set forth in section 123A.36 for 
 42.3   approval by the State Board of Education before December 31, 
 42.4   1999, or Department of Education after December 30, 1999; and 
 42.5      (2) hold a referendum on the question of combination no 
 42.6   later than four years after a grant is awarded under subdivision 
 42.7   1. 
 42.8      The districts are eligible for cooperation and combination 
 42.9   revenue under section 123A.39, subdivision 3.  
 42.10     Sec. 4.  Minnesota Statutes 2002, section 123A.443, 
 42.11  subdivision 4, is amended to read: 
 42.12     Subd. 4.  [DISTRICT PROCEDURES.] A joint powers board of a 
 42.13  secondary district established under subdivision 2 or a school 
 42.14  board of a reorganized district that intends to apply for a 
 42.15  grant must adopt a resolution stating the proposed costs of the 
 42.16  project, the purpose for which the costs are to be incurred, and 
 42.17  an estimate of the dates when the facilities for which the grant 
 42.18  is requested will be contracted for and completed.  Applications 
 42.19  for the state grants must be accompanied by (a) a copy of the 
 42.20  resolution, (b) a certificate by the clerk and treasurer of the 
 42.21  joint powers board showing the current outstanding indebtedness 
 42.22  of each member district, and (c) a certificate by the county 
 42.23  auditor of each county in which a portion of the joint powers 
 42.24  district lies showing the information in the auditor's official 
 42.25  records that is required to be used in computing the debt limit 
 42.26  of the district under section 475.53, subdivision 4.  The 
 42.27  clerk's and treasurer's certificate must show, as to each 
 42.28  outstanding bond issue of each member district, the amount 
 42.29  originally issued, the purpose for which issued, the date of 
 42.30  issue, the amount remaining unpaid as of the date of the 
 42.31  resolution, and the interest rates and due dates and amounts of 
 42.32  principal thereon.  Applications and necessary data must be in 
 42.33  the form prescribed by the commissioner and the rules of the 
 42.34  State Board of Education before December 31, 1999, and after 
 42.35  December 30, 1999, in the form prescribed by the commissioner.  
 42.36  Applications must be received by the commissioner by September 1 
 43.1   of an odd-numbered year.  When an application is received, the 
 43.2   commissioner shall obtain from the commissioner of revenue, and 
 43.3   from the public utilities commission when required, the 
 43.4   information in their official records that is required to be 
 43.5   used in computing the debt limit of the joint powers district 
 43.6   under section 475.53, subdivision 4. 
 43.7      Sec. 5.  Minnesota Statutes 2002, section 123A.55, is 
 43.8   amended to read: 
 43.9      123A.55 [CLASSES, NUMBER.] 
 43.10     Districts shall be classified as common, independent, or 
 43.11  special districts, each of which is a public corporation.  Each 
 43.12  district shall be known by its classification and assigned a 
 43.13  number by the commissioner so that its title will be .......... 
 43.14  School District Number No.  ..... . 
 43.15     Sec. 6.  Minnesota Statutes 2002, section 123B.58, 
 43.16  subdivision 2, is amended to read: 
 43.17     Subd. 2.  [FIRE SAFETY MODIFICATIONS.] If a district has 
 43.18  insufficient money in its capital expenditure fund to make 
 43.19  modifications to a school building required by a fire inspection 
 43.20  conducted according to section 123B.73 299F.47, the district may 
 43.21  submit an application to the commissioner containing information 
 43.22  required by the commissioner.  The commissioner shall approve or 
 43.23  disapprove of the application according to criteria established 
 43.24  by the commissioner.  The criteria shall take into consideration 
 43.25  the cost-effectiveness of making modifications to older 
 43.26  buildings. 
 43.27     Sec. 7.  Minnesota Statutes 2002, section 124D.19, 
 43.28  subdivision 11, is amended to read: 
 43.29     Subd. 11.  [SCHOOL-AGE CARE PROGRAMS.] (a) A school board 
 43.30  may offer, as part of a community education program, a 
 43.31  school-age care program for children from kindergarten through 
 43.32  grade 6 for the purpose of expanding students' learning 
 43.33  opportunities.  If the school board chooses not to offer a 
 43.34  school-age care program, it may allow an appropriate insured 
 43.35  community group, for profit entity or nonprofit organization to 
 43.36  use available school facilities for the purpose of offering a 
 44.1   school-age care program. 
 44.2      (b) A school-age care program must include the following: 
 44.3      (1) adult supervised programs while school is not in 
 44.4   session; 
 44.5      (2) parental involvement in program design and direction; 
 44.6      (3) partnerships with the kindergarten through grade 12 
 44.7   system, and other public, private, or nonprofit entities; 
 44.8      (4) opportunities for trained secondary school pupils to 
 44.9   work with younger children in a supervised setting as part of a 
 44.10  community service program; and 
 44.11     (5) access to available school facilities, including the 
 44.12  gymnasium, sports equipment, computer labs, and media centers, 
 44.13  when not otherwise in use as part of the operation of the 
 44.14  school.  The school district may establish reasonable rules 
 44.15  relating to access to these facilities and may require that: 
 44.16     (i) the organization request access to the facilities and 
 44.17  prepare and maintain a schedule of proposed use; 
 44.18     (ii) the organization provide evidence of adequate 
 44.19  insurance to cover the activities to be conducted in the 
 44.20  facilities; and 
 44.21     (iii) the organization prepare and maintain a plan 
 44.22  demonstrating the adequacy and training of staff to supervise 
 44.23  the use of the facilities. 
 44.24     (c) The district may charge a sliding fee based upon family 
 44.25  income for school-age care programs.  The district may receive 
 44.26  money from other public or private sources for the school-age 
 44.27  care program.  The board of the district must develop standards 
 44.28  for school-age child care programs.  The State Board 
 44.29  commissioner of education may not adopt rules for school-age 
 44.30  care programs. 
 44.31     (d) The district shall maintain a separate account within 
 44.32  the community services fund for all funds related to the 
 44.33  school-age care program. 
 44.34     (e) A district is encouraged to coordinate the school-age 
 44.35  care program with its special education, vocational education, 
 44.36  adult basic education, early childhood family education 
 45.1   programs, kindergarten through grade 12 instruction and 
 45.2   curriculum services, youth development and youth service 
 45.3   agencies, and with related services provided by other 
 45.4   governmental agencies and nonprofit agencies. 
 45.5      Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 45.6   124D.20, subdivision 11, is amended to read: 
 45.7      Subd. 11.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
 45.8   the sum of the average balances during the most recent 
 45.9   three-year period in a district's community education reserve 
 45.10  account and unreserved/undesignated community service fund 
 45.11  account on June 30 of each year, adjusted for any prior 
 45.12  reductions under this subdivision, must not be greater than 25 
 45.13  percent of the sum of the district's maximum total community 
 45.14  education revenue under subdivision 1, excluding adjustments 
 45.15  under this subdivision, plus the district's additional community 
 45.16  education levy under section 124D.21, plus any fees, grants, or 
 45.17  other revenue received by the district for community education 
 45.18  programs for the prior year.  For purposes of this paragraph, 
 45.19  "community education programs" means programs according to 
 45.20  subdivisions 8, paragraph (a), and 9, and section 124D.19, 
 45.21  subdivision 12, excluding early childhood family education 
 45.22  programs under section 124D.13, school readiness programs under 
 45.23  sections section 124D.15 and 124D.17, and adult basic education 
 45.24  programs under section 124D.52. 
 45.25     (b) If the sum of the average balances during the most 
 45.26  recent three-year period in a district's community education 
 45.27  reserve account and unreserved/undesignated community service 
 45.28  fund account on June 30 of each year, adjusted for any prior 
 45.29  reductions under this subdivision, is in excess of the limit 
 45.30  under paragraph (a), the district's community education state 
 45.31  aid and levy authority for the current school year must be 
 45.32  reduced by the lesser of the current year revenue under 
 45.33  subdivision 1 or the excess reserve amount.  The aid reduction 
 45.34  equals the product of the lesser of the excess reserve amount or 
 45.35  the current year revenue under subdivision 1 times the ratio of 
 45.36  the district's aid for the current year under subdivision 7 to 
 46.1   the district's revenue for the current year under subdivision 
 46.2   1.  The levy reduction equals the excess reserve amount minus 
 46.3   the aid reduction.  For purposes of this paragraph, if a 
 46.4   district does not levy the entire amount permitted under 
 46.5   subdivision 5 or 6, the revenue under subdivision 1 must be 
 46.6   reduced in proportion to the actual amount levied. 
 46.7      (c) Notwithstanding paragraph (a), for fiscal year 2003, 
 46.8   the excess reserve amount shall be computed using the balances 
 46.9   in a district's community education reserve account and 
 46.10  unreserved/undesignated community service fund account on June 
 46.11  30, 2002.  For fiscal year 2004, the excess reserve amount shall 
 46.12  be computed using the adjusted average balances in a district's 
 46.13  community education reserve account and unreserved/undesignated 
 46.14  community service fund account on June 30, 2002, and June 30, 
 46.15  2003. 
 46.16     Sec. 9.  Minnesota Statutes 2002, section 124D.68, 
 46.17  subdivision 3, is amended to read: 
 46.18     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
 46.19  according to subdivision 2 may enroll in area learning centers 
 46.20  under sections 123A.05 to 123A.08, or according to section 
 46.21  122A.164. 
 46.22     (b) A pupil who is eligible according to subdivision 2 and 
 46.23  who is between the ages of 16 and 21 may enroll in postsecondary 
 46.24  courses under section 124D.09. 
 46.25     (c) A pupil who is eligible under subdivision 2, may enroll 
 46.26  in any public elementary or secondary education program.  
 46.27  However, a person who is eligible according to subdivision 2, 
 46.28  clause (b), may enroll only if the school board has adopted a 
 46.29  resolution approving the enrollment. 
 46.30     (d) A pupil who is eligible under subdivision 2, may enroll 
 46.31  in any nonpublic, nonsectarian school that has contracted with 
 46.32  the serving school district to provide educational services. 
 46.33     (e) A pupil who is between the ages of 16 and 21 may enroll 
 46.34  in any adult basic education programs approved under section 
 46.35  124D.52 and operated under the community education program 
 46.36  contained in section 124D.19. 
 47.1      Sec. 10.  Minnesota Statutes 2002, section 125A.07, is 
 47.2   amended to read: 
 47.3      125A.07 [RULES OF COMMISSIONER.] 
 47.4      (a) As defined in this paragraph, the commissioner must 
 47.5   adopt rules relative to qualifications of essential personnel, 
 47.6   courses of study, methods of instruction, pupil eligibility, 
 47.7   size of classes, rooms, equipment, supervision, parent 
 47.8   consultation, and other necessary rules for instruction of 
 47.9   children with a disability.  These rules must provide standards 
 47.10  and procedures appropriate for the implementation of and within 
 47.11  the limitations of sections 125A.08 and 125A.09 125A.091.  These 
 47.12  rules must also provide standards for the discipline, control, 
 47.13  management, and protection of children with a disability.  The 
 47.14  commissioner must not adopt rules for pupils served primarily in 
 47.15  the regular classroom establishing either case loads or the 
 47.16  maximum number of pupils that may be assigned to special 
 47.17  education teachers.  The commissioner, in consultation with the 
 47.18  Departments of Health and Human Services, must adopt permanent 
 47.19  rules for instruction and services for children under age five 
 47.20  and their families.  These rules are binding on state and local 
 47.21  education, health, and human services agencies.  The 
 47.22  commissioner must adopt rules to determine eligibility for 
 47.23  special education services.  The rules must include procedures 
 47.24  and standards by which to grant variances for experimental 
 47.25  eligibility criteria.  The commissioner must, according to 
 47.26  section 14.05, subdivision 4, notify a district applying for a 
 47.27  variance from the rules within 45 calendar days of receiving the 
 47.28  request whether the request for the variance has been granted or 
 47.29  denied.  If a request is denied, the commissioner must specify 
 47.30  the program standards used to evaluate the request and the 
 47.31  reasons for denying the request.  
 47.32     (b) As provided in this paragraph, the state's regulatory 
 47.33  scheme should support schools by assuring that all state special 
 47.34  education rules adopted by the commissioner result in one or 
 47.35  more of the following outcomes: 
 47.36     (1) increased time available to teachers and, where 
 48.1   appropriate, to support staff including school nurses for 
 48.2   educating students through direct and indirect instruction; 
 48.3      (2) consistent and uniform access to effective education 
 48.4   programs for students with disabilities throughout the state; 
 48.5      (3) reduced inequalities and conflict, appropriate due 
 48.6   process hearing procedures and reduced court actions related to 
 48.7   the delivery of special education instruction and services for 
 48.8   students with disabilities; 
 48.9      (4) clear expectations for service providers and for 
 48.10  students with disabilities; 
 48.11     (5) increased accountability for all individuals and 
 48.12  agencies that provide instruction and other services to students 
 48.13  with disabilities; 
 48.14     (6) greater focus for the state and local resources 
 48.15  dedicated to educating students with disabilities; and 
 48.16     (7) clearer standards for evaluating the effectiveness of 
 48.17  education and support services for students with disabilities. 
 48.18     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
 48.19  125A.091, subdivision 5, is amended to read: 
 48.20     Subd. 5.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
 48.21  district must not proceed with the initial evaluation of a 
 48.22  child, the initial placement of a child in a special education 
 48.23  program, or the initial provision of special education services 
 48.24  for a child without the prior written consent of the child's 
 48.25  parent.  A district may not override the written refusal of a 
 48.26  parent to consent to an initial evaluation or reevaluation. 
 48.27     (b) A parent, after consulting with health care, education, 
 48.28  or other professional providers, may agree or disagree to 
 48.29  provide the parent's child with sympathomimetic medications 
 48.30  unless section 144.344 applies. 
 48.31     Sec. 12.  Minnesota Statutes 2002, section 125A.46, is 
 48.32  amended to read: 
 48.33     125A.46 [DUE PROCESS HEARINGS.] 
 48.34     The procedures for due process hearings and appeals must be 
 48.35  the same as those in section 125A.09 125A.091.  The 
 48.36  responsibility for payment of costs and conducting due process 
 49.1   hearings and appeals shall be allocated to the appropriate 
 49.2   agency in accordance with sections 125A.30, 125A.39, and 125A.42.
 49.3      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 49.4   125A.75, subdivision 8, is amended to read: 
 49.5      Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
 49.6   year 1999 and thereafter, the commissioner of education, or the 
 49.7   commissioner's designee, shall use state funds to pay school 
 49.8   districts for the administrative costs of a due process hearing 
 49.9   incurred under section 125A.09 125A.091, subdivisions 6, 10 12, 
 49.10  13, and 11 24, including hearing officer fees, court reporter 
 49.11  fees, mileage costs, transcript costs, interpreter and 
 49.12  transliterator fees, independent evaluations ordered by the 
 49.13  hearing officer, and rental of hearing rooms, but not including 
 49.14  district attorney fees.  To receive state aid under this 
 49.15  paragraph, a school district shall submit to the commissioner by 
 49.16  August 1 an itemized list of unreimbursed actual costs for fees 
 49.17  and other expenses under this paragraph incurred after June 30, 
 49.18  1998, for hearings completed during the previous fiscal year.  
 49.19  State funds used for aid to school districts under this 
 49.20  paragraph shall be based on the unreimbursed actual costs and 
 49.21  fees submitted by a district. 
 49.22     (b) The commissioner shall provide districts with a form on 
 49.23  which to annually report litigation costs under this section and 
 49.24  shall base aid estimates on preliminary reports submitted by the 
 49.25  district during the current fiscal year. 
 49.26     Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 49.27  126C.457, is amended to read: 
 49.28     126C.457 [CAREER AND TECHNICAL LEVY.] 
 49.29     A school district may levy an amount equal to the greater 
 49.30  of (1) $10,000, or (2) the district's fiscal year 2001 
 49.31  entitlement for career and technical aid under Minnesota 
 49.32  Statutes 2000, section 124D.453.  The district must recognize 
 49.33  the full amount of this levy as revenue for the fiscal year in 
 49.34  which it is certified.  Revenue received under this section must 
 49.35  be reserved and used only for career and technical programs. 
 49.36     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 50.1   127A.41, subdivision 9, is amended to read: 
 50.2      Subd. 9.  [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 
 50.3   PROGRAMS.] If a direct appropriation from the general fund to 
 50.4   the Department of Education for an education aid or grant 
 50.5   authorized under section 124D.135, 124D.16, 124D.20, 124D.21, 
 50.6   124D.22, 124D.52, 124D.531, 124D.54, 124D.55, or 124D.56 exceeds 
 50.7   the amount required, the commissioner of education may transfer 
 50.8   the excess to any education aid or grant appropriation that is 
 50.9   insufficiently funded under these sections.  Excess 
 50.10  appropriations shall be allocated proportionately among aids or 
 50.11  grants that have insufficient appropriations.  The commissioner 
 50.12  of finance shall make the necessary transfers among 
 50.13  appropriations according to the determinations of the 
 50.14  commissioner of education.  If the amount of the direct 
 50.15  appropriation for the aid or grant plus the amount transferred 
 50.16  according to this subdivision is insufficient, the commissioner 
 50.17  shall prorate the available amount among eligible districts.  
 50.18  The state is not obligated for any additional amounts. 
 50.19     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
 50.20     Sec. 16.  Minnesota Statutes 2002, section 260A.01, is 
 50.21  amended to read: 
 50.22     260A.01 [TRUANCY PROGRAMS AND SERVICES.] 
 50.23     (a) The programs in this chapter are designed to provide a 
 50.24  continuum of intervention and services to support families and 
 50.25  children in keeping children in school and combating truancy and 
 50.26  educational neglect.  School districts, county attorneys, and 
 50.27  law enforcement may establish the programs and coordinate them 
 50.28  with other community-based truancy services in order to provide 
 50.29  the necessary and most effective intervention for children and 
 50.30  their families.  This continuum of intervention and services 
 50.31  involves progressively intrusive intervention, beginning with 
 50.32  strong service-oriented efforts at the school and community 
 50.33  level and involving the court's authority only when necessary. 
 50.34     (b) Consistent with section 125A.09 125A.091, subdivision 3 
 50.35  5, a parent's refusal to provide the parent's child with 
 50.36  sympathomimetic medications does not constitute educational 
 51.1   neglect.  
 51.2      Sec. 17.  Minnesota Statutes 2002, section 260C.163, 
 51.3   subdivision 11, is amended to read: 
 51.4      Subd. 11.  [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 
 51.5   NEGLECT.] (a) A child's absence from school is presumed to be 
 51.6   due to the parent's, guardian's, or custodian's failure to 
 51.7   comply with compulsory instruction laws if the child is under 12 
 51.8   years old and the school has made appropriate efforts to resolve 
 51.9   the child's attendance problems; this presumption may be 
 51.10  rebutted based on a showing by clear and convincing evidence 
 51.11  that the child is habitually truant.  A child's absence from 
 51.12  school without lawful excuse, when the child is 12 years old or 
 51.13  older, is presumed to be due to the child's intent to be absent 
 51.14  from school; this presumption may be rebutted based on a showing 
 51.15  by clear and convincing evidence that the child's absence is due 
 51.16  to the failure of the child's parent, guardian, or custodian to 
 51.17  comply with compulsory instruction laws, sections 120A.22 and 
 51.18  120A.24. 
 51.19     (b) Consistent with section 125A.09 125A.091, subdivision 3 
 51.20  5, a parent's refusal to provide the parent's child with 
 51.21  sympathomimetic medications does not constitute educational 
 51.22  neglect. 
 51.23     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 51.24  626.556, subdivision 2, is amended to read: 
 51.25     Subd. 2.  [DEFINITIONS.] As used in this section, the 
 51.26  following terms have the meanings given them unless the specific 
 51.27  content indicates otherwise: 
 51.28     (a) "Sexual abuse" means the subjection of a child by a 
 51.29  person responsible for the child's care, by a person who has a 
 51.30  significant relationship to the child, as defined in section 
 51.31  609.341, or by a person in a position of authority, as defined 
 51.32  in section 609.341, subdivision 10, to any act which constitutes 
 51.33  a violation of section 609.342 (criminal sexual conduct in the 
 51.34  first degree), 609.343 (criminal sexual conduct in the second 
 51.35  degree), 609.344 (criminal sexual conduct in the third degree), 
 51.36  609.345 (criminal sexual conduct in the fourth degree), or 
 52.1   609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
 52.2   abuse also includes any act which involves a minor which 
 52.3   constitutes a violation of prostitution offenses under sections 
 52.4   609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
 52.5   sexual abuse.  
 52.6      (b) "Person responsible for the child's care" means (1) an 
 52.7   individual functioning within the family unit and having 
 52.8   responsibilities for the care of the child such as a parent, 
 52.9   guardian, or other person having similar care responsibilities, 
 52.10  or (2) an individual functioning outside the family unit and 
 52.11  having responsibilities for the care of the child such as a 
 52.12  teacher, school administrator, other school employees or agents, 
 52.13  or other lawful custodian of a child having either full-time or 
 52.14  short-term care responsibilities including, but not limited to, 
 52.15  day care, babysitting whether paid or unpaid, counseling, 
 52.16  teaching, and coaching.  
 52.17     (c) "Neglect" means: 
 52.18     (1) failure by a person responsible for a child's care to 
 52.19  supply a child with necessary food, clothing, shelter, health, 
 52.20  medical, or other care required for the child's physical or 
 52.21  mental health when reasonably able to do so; 
 52.22     (2) failure to protect a child from conditions or actions 
 52.23  that seriously endanger the child's physical or mental health 
 52.24  when reasonably able to do so; 
 52.25     (3) failure to provide for necessary supervision or child 
 52.26  care arrangements appropriate for a child after considering 
 52.27  factors as the child's age, mental ability, physical condition, 
 52.28  length of absence, or environment, when the child is unable to 
 52.29  care for the child's own basic needs or safety, or the basic 
 52.30  needs or safety of another child in their care; 
 52.31     (4) failure to ensure that the child is educated as defined 
 52.32  in sections 120A.22 and 260C.163, subdivision 11, which does not 
 52.33  include a parent's refusal to provide the parent's child with 
 52.34  sympathomimetic medications, consistent with section 
 52.35  125A.09 125A.091, subdivision 3 5; 
 52.36     (5) nothing in this section shall be construed to mean that 
 53.1   a child is neglected solely because the child's parent, 
 53.2   guardian, or other person responsible for the child's care in 
 53.3   good faith selects and depends upon spiritual means or prayer 
 53.4   for treatment or care of disease or remedial care of the child 
 53.5   in lieu of medical care; except that a parent, guardian, or 
 53.6   caretaker, or a person mandated to report pursuant to 
 53.7   subdivision 3, has a duty to report if a lack of medical care 
 53.8   may cause serious danger to the child's health.  This section 
 53.9   does not impose upon persons, not otherwise legally responsible 
 53.10  for providing a child with necessary food, clothing, shelter, 
 53.11  education, or medical care, a duty to provide that care; 
 53.12     (6) prenatal exposure to a controlled substance, as defined 
 53.13  in section 253B.02, subdivision 2, used by the mother for a 
 53.14  nonmedical purpose, as evidenced by withdrawal symptoms in the 
 53.15  child at birth, results of a toxicology test performed on the 
 53.16  mother at delivery or the child at birth, or medical effects or 
 53.17  developmental delays during the child's first year of life that 
 53.18  medically indicate prenatal exposure to a controlled substance; 
 53.19     (7) "medical neglect" as defined in section 260C.007, 
 53.20  subdivision 6, clause (5); 
 53.21     (8) chronic and severe use of alcohol or a controlled 
 53.22  substance by a parent or person responsible for the care of the 
 53.23  child that adversely affects the child's basic needs and safety; 
 53.24  or 
 53.25     (9) emotional harm from a pattern of behavior which 
 53.26  contributes to impaired emotional functioning of the child which 
 53.27  may be demonstrated by a substantial and observable effect in 
 53.28  the child's behavior, emotional response, or cognition that is 
 53.29  not within the normal range for the child's age and stage of 
 53.30  development, with due regard to the child's culture. 
 53.31     (d) "Physical abuse" means any physical injury, mental 
 53.32  injury, or threatened injury, inflicted by a person responsible 
 53.33  for the child's care on a child other than by accidental means, 
 53.34  or any physical or mental injury that cannot reasonably be 
 53.35  explained by the child's history of injuries, or any aversive or 
 53.36  deprivation procedures, or regulated interventions, that have 
 54.1   not been authorized under section 121A.67 or 245.825.  Abuse 
 54.2   does not include reasonable and moderate physical discipline of 
 54.3   a child administered by a parent or legal guardian which does 
 54.4   not result in an injury.  Abuse does not include the use of 
 54.5   reasonable force by a teacher, principal, or school employee as 
 54.6   allowed by section 121A.582.  Actions which are not reasonable 
 54.7   and moderate include, but are not limited to, any of the 
 54.8   following that are done in anger or without regard to the safety 
 54.9   of the child: 
 54.10     (1) throwing, kicking, burning, biting, or cutting a child; 
 54.11     (2) striking a child with a closed fist; 
 54.12     (3) shaking a child under age three; 
 54.13     (4) striking or other actions which result in any 
 54.14  nonaccidental injury to a child under 18 months of age; 
 54.15     (5) unreasonable interference with a child's breathing; 
 54.16     (6) threatening a child with a weapon, as defined in 
 54.17  section 609.02, subdivision 6; 
 54.18     (7) striking a child under age one on the face or head; 
 54.19     (8) purposely giving a child poison, alcohol, or dangerous, 
 54.20  harmful, or controlled substances which were not prescribed for 
 54.21  the child by a practitioner, in order to control or punish the 
 54.22  child; or other substances that substantially affect the child's 
 54.23  behavior, motor coordination, or judgment or that results in 
 54.24  sickness or internal injury, or subjects the child to medical 
 54.25  procedures that would be unnecessary if the child were not 
 54.26  exposed to the substances; 
 54.27     (9) unreasonable physical confinement or restraint not 
 54.28  permitted under section 609.379, including but not limited to 
 54.29  tying, caging, or chaining; or 
 54.30     (10) in a school facility or school zone, an act by a 
 54.31  person responsible for the child's care that is a violation 
 54.32  under section 121A.58. 
 54.33     (e) "Report" means any report received by the local welfare 
 54.34  agency, police department, county sheriff, or agency responsible 
 54.35  for assessing or investigating maltreatment pursuant to this 
 54.36  section. 
 55.1      (f) "Facility" means a licensed or unlicensed day care 
 55.2   facility, residential facility, agency, hospital, sanitarium, or 
 55.3   other facility or institution required to be licensed under 
 55.4   sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
 55.5   chapter 245B; or a school as defined in sections 120A.05, 
 55.6   subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
 55.7   personal care provider organization as defined in sections 
 55.8   256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
 55.9      (g) "Operator" means an operator or agency as defined in 
 55.10  section 245A.02.  
 55.11     (h) "Commissioner" means the commissioner of human services.
 55.12     (i) "Assessment" includes authority to interview the child, 
 55.13  the person or persons responsible for the child's care, the 
 55.14  alleged perpetrator, and any other person with knowledge of the 
 55.15  abuse or neglect for the purpose of gathering the facts, 
 55.16  assessing the risk to the child, and formulating a plan.  
 55.17     (j) "Practice of social services," for the purposes of 
 55.18  subdivision 3, includes but is not limited to employee 
 55.19  assistance counseling and the provision of guardian ad litem and 
 55.20  parenting time expeditor services.  
 55.21     (k) "Mental injury" means an injury to the psychological 
 55.22  capacity or emotional stability of a child as evidenced by an 
 55.23  observable or substantial impairment in the child's ability to 
 55.24  function within a normal range of performance and behavior with 
 55.25  due regard to the child's culture. 
 55.26     (l) "Threatened injury" means a statement, overt act, 
 55.27  condition, or status that represents a substantial risk of 
 55.28  physical or sexual abuse or mental injury.  Threatened injury 
 55.29  includes, but is not limited to, exposing a child to a person 
 55.30  responsible for the child's care, as defined in paragraph (b), 
 55.31  clause (1), who has: 
 55.32     (1) subjected a child to, or failed to protect a child 
 55.33  from, an overt act or condition that constitutes egregious harm, 
 55.34  as defined in section 260C.007, subdivision 14, or a similar law 
 55.35  of another jurisdiction; 
 55.36     (2) been found to be palpably unfit under section 260C.301, 
 56.1   paragraph (b), clause (4), or a similar law of another 
 56.2   jurisdiction; 
 56.3      (3) committed an act that has resulted in an involuntary 
 56.4   termination of parental rights under section 260C.301, or a 
 56.5   similar law of another jurisdiction; or 
 56.6      (4) committed an act that has resulted in the involuntary 
 56.7   transfer of permanent legal and physical custody of a child to a 
 56.8   relative under section 260C.201, subdivision 11, paragraph (d), 
 56.9   clause (1), or a similar law of another jurisdiction. 
 56.10     (m) Persons who conduct assessments or investigations under 
 56.11  this section shall take into account accepted child-rearing 
 56.12  practices of the culture in which a child participates and 
 56.13  accepted teacher discipline practices, which are not injurious 
 56.14  to the child's health, welfare, and safety. 
 56.15     Sec. 19.  Minnesota Statutes 2002, section 631.40, 
 56.16  subdivision 4, is amended to read: 
 56.17     Subd. 4.  [LICENSED TEACHERS.] When a person is convicted 
 56.18  of child abuse, as defined in section 609.185, or sexual abuse 
 56.19  under section 609.342, 609.343, 609.344, 609.345, 609.3451, 
 56.20  subdivision 3, or 617.23, subdivision 3, the court shall 
 56.21  determine whether the person is licensed to teach under chapter 
 56.22  122A.  If the offender is a licensed teacher, the court 
 56.23  administrator shall send a certified copy of the conviction to 
 56.24  the Board of Teaching or the state Board of Education School 
 56.25  Administrators, whichever has jurisdiction over the teacher's 
 56.26  license, within ten days after the conviction. 
 56.27     Sec. 20.  Laws 2003, chapter 130, section 12, is amended to 
 56.28  read: 
 56.29     Sec. 12.  [REVISOR INSTRUCTION.] 
 56.30     (a) In Minnesota Statutes, the revisor shall renumber 
 56.31  section 119A.02 119A.01, subdivision 2, as 120A.02, paragraph 
 56.32  (a), and section 120A.02 as 120A.02, paragraph (b). 
 56.33     (b) In Minnesota Statutes and Minnesota Rules, the revisor 
 56.34  shall change the term "children, families, and learning" to 
 56.35  "education." 
 56.36     Sec. 21.  [REVISOR INSTRUCTION.] 
 57.1      In the next edition of Minnesota Rules, chapter 3530, the 
 57.2   revisor shall change the term "Office of Public Libraries and 
 57.3   Interlibrary Cooperation" to "Library Development and Services" 
 57.4   and "OPLIC" to "LDS." 
 57.5      Sec. 22.  [REPEALER; REVIVAL OF STATUTE.] 
 57.6      (a) Minnesota Statutes 2002, sections 124D.91 and 124D.92, 
 57.7   are repealed. 
 57.8      (b) Minnesota Statutes 2002, section 134.47, subdivision 3, 
 57.9   is repealed effective retroactive to June 30, 2003.  
 57.10  Notwithstanding Minnesota Statutes, section 645.36, Minnesota 
 57.11  Statutes 2002, section 134.47, subdivisions 1 and 2, are revived 
 57.12  effective retroactively from June 30, 2003. 
 57.13                             ARTICLE 6 
 57.14             K-12 SCIENCE AND SOCIAL STUDIES STANDARDS 
 57.15     Section 1.  Minnesota Statutes 2003 Supplement, section 
 57.16  120B.021, subdivision 3, is amended to read: 
 57.17     Subd. 3.  [RULEMAKING.] (a) The commissioner, consistent 
 57.18  with the requirements of this section and section 120B.022, must 
 57.19  adopt statewide rules under section 14.389 for implementing 
 57.20  statewide rigorous core academic standards in language arts, 
 57.21  mathematics, science, social studies, and the arts.  After the 
 57.22  rules authorized under this paragraph are initially adopted, the 
 57.23  commissioner may not amend or repeal these rules nor adopt new 
 57.24  rules on the same topic without specific legislative 
 57.25  authorization.  These The academic standards for language arts, 
 57.26  mathematics, and the arts must be implemented for all students 
 57.27  beginning in the 2003-2004 school year.  The academic standards 
 57.28  for science and social studies must be implemented for all 
 57.29  students beginning in the 2005-2006 school year. 
 57.30     (b) The rules authorized under this section are not subject 
 57.31  to section 14.127.  
 57.32     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 57.33  following final enactment.  
 57.34     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 57.35  120B.30, subdivision 1a, is amended to read: 
 57.36     Subd. 1a.  [STATEWIDE AND LOCAL ASSESSMENTS; RESULTS.] (a) 
 58.1   The commissioner must develop language arts, mathematics, and 
 58.2   science assessments aligned with state academic standards that 
 58.3   districts and sites must use to monitor student growth toward 
 58.4   achieving those standards.  The commissioner must not develop 
 58.5   statewide assessments for academic standards in social studies 
 58.6   and the arts.  The commissioner must require: 
 58.7      (1) annual language arts and mathematics assessments in 
 58.8   grades 3 through 8 and at the high school level for the 
 58.9   2005-2006 school year and later; and 
 58.10     (2) annual science assessments in one grade in the grades 3 
 58.11  through 5 span, the grades 6 through 9 span, and a life sciences 
 58.12  assessment in the grades 10 through 12 span for the 2007-2008 
 58.13  school year and later. 
 58.14     (b) The commissioner must ensure that all statewide tests 
 58.15  administered to elementary and secondary students measure 
 58.16  students' academic knowledge and skills and not students' 
 58.17  values, attitudes, and beliefs. 
 58.18     (c) Reporting of assessment results must: 
 58.19     (1) provide timely, useful, and understandable information 
 58.20  on the performance of individual students, schools, school 
 58.21  districts, and the state; 
 58.22     (2) include, by the 2006-2007 school year, a value-added 
 58.23  component to measure student achievement growth over time; and 
 58.24     (3) determine whether students have met the state's basic 
 58.25  skills requirements. 
 58.26     (d) Consistent with applicable federal law and subdivision 
 58.27  1, paragraph (d), clause (1), the commissioner must include 
 58.28  alternative assessments for the very few students with 
 58.29  disabilities for whom statewide assessments are inappropriate 
 58.30  and for students with limited English proficiency. 
 58.31     (e) A school, school district, and charter school must 
 58.32  administer statewide assessments under this section, as the 
 58.33  assessments become available, to evaluate student progress in 
 58.34  achieving the academic standards.  If a state assessment is not 
 58.35  available, a school, school district, and charter school must 
 58.36  determine locally if a student has met the required academic 
 59.1   standards.  A school, school district, or charter school may use 
 59.2   a student's performance on a statewide assessment as one of 
 59.3   multiple criteria to determine grade promotion or retention.  A 
 59.4   school, school district, or charter school may use a high school 
 59.5   student's performance on a statewide assessment as a percentage 
 59.6   of the student's final grade in a course, or place a student's 
 59.7   assessment score on the student's transcript.  
 59.8      Sec. 3.  [MINNESOTA'S HIGH ACADEMIC STANDARDS.] 
 59.9      (a) The standards for science and social studies adopted by 
 59.10  the commissioner of education under Minnesota Statutes, section 
 59.11  120B.021, must be identical to: 
 59.12     (1) the K-12 standards for science contained in the 
 59.13  document labeled "Minnesota Academic Standards, Science K-12, 
 59.14  December 19, 2003, Minnesota Academic Standards Committee, 
 59.15  Minnesota Department of Education"; and 
 59.16     (2) the K-12 standards for social studies contained in the 
 59.17  document labeled "Minnesota Academic Standards in History and 
 59.18  Social Studies May 15, 2004, 9:45 p.m." 
 59.19     (b) The K-12 standards documents must be deposited with the 
 59.20  Minnesota Revisor of Statutes, the Legislative Reference 
 59.21  Library, and the Minnesota State Law Library, where the 
 59.22  documents shall be maintained until the commissioner adopts 
 59.23  rules for implementing statewide rigorous core academic 
 59.24  standards in science and social studies under Minnesota 
 59.25  Statutes, section 120B.021, subdivision 3.  The revisor must 
 59.26  determine that the rules are identical to the documents 
 59.27  deposited with the revisor under this section before the revisor 
 59.28  approves the form of the rules.  In approving the form of the 
 59.29  rules, the revisor may make any needed grammatical and form 
 59.30  changes. 
 59.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.32  following final enactment.  
 59.33     Sec. 4.  [K-12 SOCIAL STUDIES STANDARDS RULES.] 
 59.34     (a) Beginning no later than July 1, 2004, the education 
 59.35  commissioner shall adopt the K-12 academic social studies 
 59.36  standards incorporated by reference under this act using the 
 60.1   expedited process under Minnesota Statutes, section 14.389.  
 60.2      (b) In addition to technical changes, corrections, 
 60.3   clarifications, and similarly needed revisions, the revisor 
 60.4   shall modify the K-12 academic social studies standards to allow 
 60.5   school districts to place the standards in the following grade 
 60.6   bands:  K-3, 4-8, 9-12 to accommodate their particular 
 60.7   curriculum.  The standards should be mastered by the end of the 
 60.8   highest grade in the band. 
 60.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.10  following final enactment." 
 60.11     Delete the title and insert: 
 60.12                         "A bill for an act 
 60.13            relating to education; providing for kindergarten 
 60.14            through grade 12 education, including general 
 60.15            education, academic excellence, special programs, 
 60.16            facilities, technical and conforming amendments, and 
 60.17            science and social studies academic standards; 
 60.18            providing for rulemaking; amending Minnesota Statutes 
 60.19            2002, sections 13.321, subdivision 1; 120B.35, by 
 60.20            adding a subdivision; 121A.22, subdivision 2; 121A.34, 
 60.21            by adding subdivisions; 121A.45, subdivision 3; 
 60.22            122A.16; 122A.20, subdivision 2; 123A.442, subdivision 
 60.23            2; 123A.443, subdivision 4; 123A.55; 123B.195; 
 60.24            123B.53, subdivision 6; 123B.58, subdivision 2; 
 60.25            123B.76, by adding a subdivision; 123B.82; 124D.19, 
 60.26            subdivision 11; 124D.68, subdivision 3; 125A.023, 
 60.27            subdivision 3; 125A.03; 125A.07; 125A.46; 127A.47, 
 60.28            subdivision 3; 168.012, subdivision 10; 169.01, 
 60.29            subdivisions 6, 75; 169.442, subdivisions 1, 5; 
 60.30            169.443, subdivisions 1, 2; 169.4501, subdivisions 1, 
 60.31            2; 169.4502, subdivision 11; 169.4503, subdivisions 5, 
 60.32            14, 16, 20, by adding a subdivision; 260A.01; 
 60.33            260C.163, subdivision 11; 631.40, subdivision 4; 
 60.34            Minnesota Statutes 2003 Supplement, sections 120B.021, 
 60.35            subdivisions 1, 3; 120B.022, subdivision 1; 120B.024; 
 60.36            120B.30, subdivision 1a; 120B.36; 122A.09, subdivision 
 60.37            4; 123B.77, subdivision 4; 123B.90, subdivision 2; 
 60.38            124D.11, subdivision 9; 124D.20, subdivision 11; 
 60.39            124D.454, subdivision 2; 125A.091, subdivision 5; 
 60.40            125A.75, subdivision 8; 126C.10, subdivision 3; 
 60.41            126C.457; 127A.41, subdivision 9; 128C.05, subdivision 
 60.42            1a; 171.321, subdivision 5; 275.065, subdivision 1; 
 60.43            475.61, subdivision 4; 626.556, subdivision 2; Laws 
 60.44            2003, chapter 130, section 12; proposing coding for 
 60.45            new law in Minnesota Statutes, chapter 121A; repealing 
 60.46            Minnesota Statutes 2002, sections 124D.91; 124D.92; 
 60.47            126C.23; 134.47, subdivision 3; 169.447, subdivision 
 60.48            6; 169.4502, subdivisions 7, 9, 13, 14; 169.4503, 
 60.49            subdivisions 10, 10a, 21, 25." 
 61.1      We request adoption of this report and repassage of the 
 61.2   bill. 
 61.5      House Conferees: 
 61.8   .........................     .........................
 61.9   Alice Seagren                 Barb Sykora  
 61.12  .........................     .........................
 61.13  Jeff Johnson                  Bud Nornes  
 61.16  ......................... 
 61.17  Karen Klinzing 
 61.22     Senate Conferees: 
 61.25  .........................     .........................
 61.26  Steve Kelley                  Rod Skoe  
 61.29  .........................     .........................
 61.30  David J. Tomassoni            Sharon Marko 
 61.33  ......................... 
 61.34  Thomas M. Neuville