1.1                          A bill for an act 
  1.2             relating to education; providing for early childhood, 
  1.3             adult, family, and kindergarten through grade 12 
  1.4             education including general education, excellence in 
  1.5             education, special programs, facilities and 
  1.6             technology, nutrition and accounting, libraries, early 
  1.7             education, prevention, self-sufficiency and lifelong 
  1.8             learning, state agencies, forecast deficiencies, and 
  1.9             technical and conforming amendments; authorizing 
  1.10            rulemaking; providing for reports; appropriating 
  1.11            money; amending Minnesota Statutes 2004, sections 
  1.12            13.32, subdivisions 1, 8; 119A.46, subdivisions 1, 2, 
  1.13            3, 8; 120A.05, by adding a subdivision; 120A.22, 
  1.14            subdivision 12; 120B.02; 120B.021, by adding a 
  1.15            subdivision; 120B.11, subdivisions 1, 2, 3, 4, 5, 8; 
  1.16            120B.13, subdivisions 1, 3, by adding a subdivision; 
  1.17            120B.23; 120B.30, subdivisions 1, 1a; 120B.31, 
  1.18            subdivision 4; 121A.03, subdivision 1; 121A.06, 
  1.19            subdivisions 2, 3; 121A.17, subdivisions 1, 3, 5; 
  1.20            121A.19; 121A.41, subdivision 10; 121A.47, subdivision 
  1.21            14; 121A.53; 121A.55; 122A.06, subdivision 4; 122A.09, 
  1.22            subdivisions 4, 10; 122A.12, subdivision 2; 122A.18, 
  1.23            subdivision 2a; 122A.40, subdivision 5; 122A.41, 
  1.24            subdivisions 2, 14; 122A.414; 122A.415, subdivisions 
  1.25            1, 3; 123A.05, subdivision 2; 123A.06, subdivision 1; 
  1.26            123A.24, subdivision 2; 123B.02, by adding a 
  1.27            subdivision; 123B.09, subdivision 8; 123B.143, 
  1.28            subdivision 1; 123B.36, subdivision 1; 123B.42, 
  1.29            subdivision 3; 123B.49, subdivision 4; 123B.53, 
  1.30            subdivision 1; 123B.54; 123B.59, subdivisions 3, 3a; 
  1.31            123B.63, subdivision 2; 123B.71, subdivisions 8, 12; 
  1.32            123B.749; 123B.75, subdivision 5, by adding a 
  1.33            subdivision; 123B.76, subdivision 3; 123B.79, 
  1.34            subdivision 6; 123B.81, subdivision 1; 123B.82; 
  1.35            123B.83, subdivision 2; 123B.92, subdivisions 1, 5, 9; 
  1.36            124D.095, subdivision 8; 124D.10, subdivisions 3, 4, 
  1.37            6, 8, 15, 23; 124D.11, subdivisions 1, 2, 5, 6; 
  1.38            124D.111, subdivisions 1, 2; 124D.118, subdivision 4; 
  1.39            124D.135, subdivisions 1, 5; 124D.15, subdivisions 1, 
  1.40            3, 5, 10, 12, by adding subdivisions; 124D.16, 
  1.41            subdivisions 2, 3; 124D.20, subdivision 3; 124D.40; 
  1.42            124D.531, subdivisions 1, 4; 124D.66, subdivision 3; 
  1.43            124D.68, subdivision 9; 124D.69, subdivision 1; 
  1.44            124D.74, subdivision 1; 124D.81, subdivision 1; 
  1.45            124D.84, subdivision 1; 125A.091, subdivision 5; 
  1.46            125A.11, subdivision 1; 125A.24; 125A.28; 125A.51; 
  2.1             125A.76, subdivisions 1, 4, by adding subdivisions; 
  2.2             125A.79, subdivisions 1, 5, 6, 7, by adding 
  2.3             subdivisions; 126C.01, subdivision 11; 126C.05, by 
  2.4             adding a subdivision; 126C.10, subdivisions 1, 2, 3, 
  2.5             6, 7, 8, 13, 13a, 17, 18, 24, 31, by adding 
  2.6             subdivisions; 126C.13, subdivision 4; 126C.15, 
  2.7             subdivisions 1, 2, 3, by adding a subdivision; 
  2.8             126C.17, subdivisions 2, 5, 7, 9, 13; 126C.21, 
  2.9             subdivision 4; 126C.40, subdivision 1; 126C.43, 
  2.10            subdivisions 2, 3; 126C.44; 126C.457; 126C.48, 
  2.11            subdivisions 2, 8, by adding a subdivision; 126C.63, 
  2.12            subdivisions 5, 8; 127A.41, subdivision 8; 127A.42, 
  2.13            subdivision 2; 127A.45, subdivisions 2, 10, 11, 12, 
  2.14            13, 14, 16; 127A.47, subdivisions 7, 8; 127A.49, 
  2.15            subdivisions 2, 3; 127A.50, subdivision 5; 128C.12, 
  2.16            subdivision 1; 134.31, by adding a subdivision; 
  2.17            171.04, subdivision 1; 171.05, subdivisions 2, 2b, 3; 
  2.18            179A.03, subdivision 14; 260C.007, subdivision 6, by 
  2.19            adding a subdivision; 260C.201, subdivision 1; 275.14; 
  2.20            275.16; 469.177, subdivision 9; Laws 1996, chapter 
  2.21            412, article 5, section 24; Laws 2003, First Special 
  2.22            Session chapter 9, article 1, section 53, subdivisions 
  2.23            2, as amended, 3, as amended, 11, as amended, 12, as 
  2.24            amended; Laws 2003, First Special Session chapter 9, 
  2.25            article 2, section 55, subdivisions 2, as amended, 5, 
  2.26            as amended, 9, as amended, 12, as amended; Laws 2003, 
  2.27            First Special Session chapter 9, article 3, section 
  2.28            20, subdivsions 2, 4, as amended, 5, as amended, 6, as 
  2.29            amended, 8, as amended, 9, as amended; Laws 2003, 
  2.30            First Special Session chapter 9, article 4, section 
  2.31            31, subdivisions 2, as amended, 3, as amended, 4; Laws 
  2.32            2003, First Special Session chapter 9, article 5, 
  2.33            section 35, subdivision 3, as amended; Laws 2003, 
  2.34            First Special Session chapter 9, article 6, section 4, 
  2.35            as amended; Laws 2003, First Special Session chapter 
  2.36            9, article 7, section 11, subdivisions 2, 4; Laws 
  2.37            2003, First Special Session chapter 9, article 8, 
  2.38            section 7, subdivisions 2, as amended, 3, 5, as 
  2.39            amended; Laws 2003, First Special Session chapter 9, 
  2.40            article 9, section 9, subdivision 2, as amended; 
  2.41            proposing coding for new law in Minnesota Statutes, 
  2.42            chapters 120A; 120B; 121A; 122A; 123A; 123B; 124D; 
  2.43            125B; 129C; 171; 179A; repealing Minnesota Statutes 
  2.44            2004, sections 122A.24; 122A.415, subdivision 2; 
  2.45            123B.05; 123B.83, subdivision 1; 124D.095; 124D.15, 
  2.46            subdivisions 2, 4, 6, 7, 8, 9, 11, 13; 124D.16, 
  2.47            subdivisions 1, 4; 126C.12; 126C.42, subdivisions 1, 4.
  2.48  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.49                             ARTICLE 1 
  2.50                         GENERAL EDUCATION 
  2.51     Section 1.  Minnesota Statutes 2004, section 120A.05, is 
  2.52  amended by adding a subdivision to read: 
  2.53     Subd. 18.  [KINDERGARTEN.] "Kindergarten" means a program 
  2.54  designed for pupils five years of age on September 1 of the 
  2.55  calendar year in which the school year commences that prepares 
  2.56  pupils to enter first grade the following school year.  A 
  2.57  program designed for pupils younger than five years of age on 
  2.58  September 1 of the calendar year in which the school year 
  2.59  commences that prepares pupils to enter kindergarten the 
  3.1   following school year is a prekindergarten program. 
  3.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  3.3   following final enactment. 
  3.4      Sec. 2.  Minnesota Statutes 2004, section 123A.05, 
  3.5   subdivision 2, is amended to read: 
  3.6      Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
  3.7   of an area learning center must reserve revenue in an amount 
  3.8   equal to the sum of (1) at least 90 percent of the district 
  3.9   average general education revenue per pupil unit minus an amount 
  3.10  equal to the product of the formula allowance according to 
  3.11  section 126C.10, subdivision 2, times .0485, calculated without 
  3.12  basic skills revenue, and transportation sparsity revenue, and 
  3.13  the transportation portion of the transition revenue adjustment, 
  3.14  times the number of pupil units attending an area learning 
  3.15  center program under this section, plus (2) the amount of basic 
  3.16  skills revenue generated by pupils attending the area learning 
  3.17  center.  The amount of reserved revenue under this subdivision 
  3.18  may only be spent on program costs associated with the area 
  3.19  learning center.  Compensatory revenue must be allocated 
  3.20  according to section 126C.15, subdivision 2.  
  3.21     Sec. 3.  Minnesota Statutes 2004, section 123B.42, 
  3.22  subdivision 3, is amended to read: 
  3.23     Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
  3.24  textbooks, individualized instructional or cooperative learning 
  3.25  materials, and standardized tests provided for in this section 
  3.26  for each school year must not exceed the statewide average 
  3.27  expenditure per pupil, adjusted pursuant according to clause 
  3.28  paragraph (b), by the Minnesota public elementary and secondary 
  3.29  schools for textbooks, individualized instructional materials 
  3.30  and standardized tests as computed and established by the 
  3.31  department by February 1 of the preceding school year from the 
  3.32  most recent public school year data then available. 
  3.33     (b) The cost computed in clause paragraph (a) shall be 
  3.34  increased by an inflation adjustment equal to the percent of 
  3.35  increase in the formula allowance, pursuant to section 126C.10, 
  3.36  subdivision 2, from the second preceding school year to the 
  4.1   current school year 3.0 percent for fiscal year 2006, 6.19 
  4.2   percent for fiscal year 2007, and 3.1 percent for fiscal year 
  4.3   2008. 
  4.4      (c) The commissioner shall allot to the districts or 
  4.5   intermediary service areas the total cost for each school year 
  4.6   of providing or loaning the textbooks, individualized 
  4.7   instructional or cooperative learning materials, and 
  4.8   standardized tests for the pupils in each nonpublic school.  The 
  4.9   allotment shall not exceed the product of the statewide average 
  4.10  expenditure per pupil, according to clause (a), adjusted 
  4.11  pursuant to clause (b), multiplied by the number of nonpublic 
  4.12  school pupils who make requests pursuant to this section and who 
  4.13  are enrolled as of September 15 of the current school year. 
  4.14     Sec. 4.  Minnesota Statutes 2004, section 123B.75, is 
  4.15  amended by adding a subdivision to read: 
  4.16     Subd. 4a.  [TACONITE REVENUE.] Taconite revenue received in 
  4.17  a calendar year by a school district under section 298.28, 
  4.18  subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 
  4.19  is fully recognized in the fiscal year in which the February 
  4.20  payment falls. 
  4.21     [<b>EFFECTIVE DATE.]</b> This section is effective for revenue for 
  4.22  fiscal year 2006. 
  4.23     Sec. 5.  Minnesota Statutes 2004, section 123B.76, 
  4.24  subdivision 3, is amended to read: 
  4.25     Subd. 3.  [EXPENDITURES BY BUILDING.] (a) For the purposes 
  4.26  of this section, "building" means education site as defined in 
  4.27  section 123B.04, subdivision 1.  
  4.28     (b) Each district shall maintain separate accounts to 
  4.29  identify general fund expenditures, excluding capital 
  4.30  expenditures and pupil transportation, for each building.  All 
  4.31  expenditures for regular instruction, secondary vocational 
  4.32  instruction, and school administration must be reported to the 
  4.33  department separately for each building.  All expenditures for 
  4.34  special education instruction, instructional support services, 
  4.35  and pupil support services provided within a specific building 
  4.36  must be reported to the department separately for each 
  5.1   building.  Salary expenditures reported by building must reflect 
  5.2   actual salaries for staff at the building and must not be based 
  5.3   on districtwide averages.  All other general fund expenditures 
  5.4   may be reported by building or on a districtwide basis. 
  5.5      (c) The department must annually report information showing 
  5.6   school district general fund expenditures per pupil by program 
  5.7   category for each building and estimated school district general 
  5.8   fund revenue generated by pupils attending each building on its 
  5.9   Web site.  For purposes of this report: 
  5.10     (1) expenditures not required to be reported by building 
  5.11  shall be allocated among buildings on a uniform per pupil basis; 
  5.12     (2) basic skills revenue shall be allocated according to 
  5.13  section 126C.10, subdivision 4; 
  5.14     (3) secondary sparsity revenue and elementary sparsity 
  5.15  revenue shall be allocated according to section 126C.10, 
  5.16  subdivisions 7 and 8; 
  5.17     (4) other general education revenue shall be allocated on a 
  5.18  uniform per pupil unit basis; 
  5.19     (5) first grade preparedness aid shall be allocated 
  5.20  according to section 124D.081; 
  5.21     (6) state and federal special education aid and Title I aid 
  5.22  shall be allocated in proportion to district expenditures for 
  5.23  these programs by building; and 
  5.24     (7) other general fund revenues shall be allocated on a 
  5.25  uniform per pupil basis, except that the department may allocate 
  5.26  other revenues attributable to specific buildings directly to 
  5.27  those buildings. 
  5.28     Sec. 6.  Minnesota Statutes 2004, section 123B.79, 
  5.29  subdivision 6, is amended to read: 
  5.30     Subd. 6.  [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 
  5.31  On June 30 of each year, a district may make a permanent 
  5.32  transfer from the general fund account entitled "undesignated 
  5.33  net unreserved general fund balance since statutory operating 
  5.34  debt" to the account entitled "reserved fund balance reserve 
  5.35  account for purposes of statutory operating debt reduction."  
  5.36  The amount of the transfer is limited to the lesser of (a) the 
  6.1   net undesignated operating unreserved general fund balance, or 
  6.2   (b) the sum of the remaining statutory operating debt levies 
  6.3   authorized for all future years according to section 126C.42, 
  6.4   subdivision 1.  If the net undesignated operating unreserved 
  6.5   general fund balance is less than zero, the district may not 
  6.6   make a transfer.  
  6.7      Sec. 7.  Minnesota Statutes 2004, section 123B.81, 
  6.8   subdivision 1, is amended to read: 
  6.9      Subdivision 1.  [OPERATING DEBT.] The "operating debt" of a 
  6.10  school district means the net negative undesignated unreserved 
  6.11  general fund balance in all school district funds, other than 
  6.12  capital expenditure, building construction, debt service, and 
  6.13  trust and agency, calculated as of June 30 of each year in 
  6.14  accordance with the uniform financial accounting and reporting 
  6.15  standards for Minnesota school districts. 
  6.16     Sec. 8.  Minnesota Statutes 2004, section 123B.82, is 
  6.17  amended to read: 
  6.18     123B.82 [REORGANIZATION OPERATING DEBT.] 
  6.19     The "reorganization operating debt" of a school district 
  6.20  means the net negative undesignated unreserved fund balance 
  6.21  balances in all school district funds, other than building 
  6.22  construction, debt redemption, and trust and agency, calculated 
  6.23  in accordance with the uniform financial accounting and 
  6.24  reporting standards for Minnesota school districts as of: 
  6.25     (1) June 30 of the fiscal year before the first year that a 
  6.26  district receives revenue according to section 123A.39, 
  6.27  subdivision 3; or 
  6.28     (2) June 30 of the fiscal year before the effective date of 
  6.29  reorganization according to section 123A.46 or 123A.48. 
  6.30     Sec. 9.  Minnesota Statutes 2004, section 123B.83, 
  6.31  subdivision 2, is amended to read: 
  6.32     Subd. 2.  [UNDESIGNATED UNRESERVED FUND BALANCES.] 
  6.33  Beginning in fiscal year 1978 and each year thereafter, any A 
  6.34  school district not subject to the provisions of subdivision 1 
  6.35  must limit its expenditures so that its undesignated net 
  6.36  unreserved general fund balances do balance does not constitute 
  7.1   statutory operating debt as defined in section 126C.42. 
  7.2      Sec. 10.  Minnesota Statutes 2004, section 123B.92, 
  7.3   subdivision 1, is amended to read: 
  7.4      Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  7.5   and section 125A.76, the terms defined in this subdivision have 
  7.6   the meanings given to them. 
  7.7      (a) "Actual expenditure per pupil transported in the 
  7.8   regular and excess transportation categories" means the quotient 
  7.9   obtained by dividing: 
  7.10     (1) the sum of: 
  7.11     (i) all expenditures for transportation in the regular 
  7.12  category, as defined in paragraph (b), clause (1), and the 
  7.13  excess category, as defined in paragraph (b), clause (2), plus 
  7.14     (ii) an amount equal to one year's depreciation on the 
  7.15  district's school bus fleet and mobile units computed on a 
  7.16  straight line basis at the rate of 15 percent per year for 
  7.17  districts operating a program under section 124D.128 for grades 
  7.18  1 to 12 for all students in the district and 12-1/2 percent per 
  7.19  year for other districts of the cost of the fleet, plus 
  7.20     (iii) an amount equal to one year's depreciation on the 
  7.21  district's type three school buses, as defined in section 
  7.22  169.01, subdivision 6, clause (5), which must be used a majority 
  7.23  of the time for pupil transportation purposes, computed on a 
  7.24  straight line basis at the rate of 20 percent per year of the 
  7.25  cost of the type three school buses by: 
  7.26     (2) the number of pupils eligible for transportation in the 
  7.27  regular category, as defined in paragraph (b), clause (1), and 
  7.28  the excess category, as defined in paragraph (b), clause (2).  
  7.29     (b) "Transportation category" means a category of 
  7.30  transportation service provided to pupils as follows:  
  7.31     (1) Regular transportation is:  
  7.32     (i) transportation to and from school during the regular 
  7.33  school year for resident elementary pupils residing one mile or 
  7.34  more from the public or nonpublic school they attend, and 
  7.35  resident secondary pupils residing two miles or more from the 
  7.36  public or nonpublic school they attend, excluding desegregation 
  8.1   transportation and noon kindergarten transportation; but with 
  8.2   respect to transportation of pupils to and from nonpublic 
  8.3   schools, only to the extent permitted by sections 123B.84 to 
  8.4   123B.87; 
  8.5      (ii) transportation of resident pupils to and from language 
  8.6   immersion programs; 
  8.7      (iii) transportation of a pupil who is a custodial parent 
  8.8   and that pupil's child between the pupil's home and the child 
  8.9   care provider and between the provider and the school, if the 
  8.10  home and provider are within the attendance area of the school; 
  8.11     (iv) transportation to and from or board and lodging in 
  8.12  another district, of resident pupils of a district without a 
  8.13  secondary school; and 
  8.14     (v) transportation to and from school during the regular 
  8.15  school year required under subdivision 3 for nonresident 
  8.16  elementary pupils when the distance from the attendance area 
  8.17  border to the public school is one mile or more, and for 
  8.18  nonresident secondary pupils when the distance from the 
  8.19  attendance area border to the public school is two miles or 
  8.20  more, excluding desegregation transportation and noon 
  8.21  kindergarten transportation. 
  8.22     For the purposes of this paragraph, a district may 
  8.23  designate a licensed day care facility, respite care facility, 
  8.24  the residence of a relative, or the residence of a person chosen 
  8.25  by the pupil's parent or guardian as the home of a pupil for 
  8.26  part or all of the day, if requested by the pupil's parent or 
  8.27  guardian, and if that facility or residence is within the 
  8.28  attendance area of the school the pupil attends. 
  8.29     (2) Excess transportation is: 
  8.30     (i) transportation to and from school during the regular 
  8.31  school year for resident secondary pupils residing at least one 
  8.32  mile but less than two miles from the public or nonpublic school 
  8.33  they attend, and transportation to and from school for resident 
  8.34  pupils residing less than one mile from school who are 
  8.35  transported because of extraordinary traffic, drug, or crime 
  8.36  hazards; and 
  9.1      (ii) transportation to and from school during the regular 
  9.2   school year required under subdivision 3 for nonresident 
  9.3   secondary pupils when the distance from the attendance area 
  9.4   border to the school is at least one mile but less than two 
  9.5   miles from the public school they attend, and for nonresident 
  9.6   pupils when the distance from the attendance area border to the 
  9.7   school is less than one mile from the school and who are 
  9.8   transported because of extraordinary traffic, drug, or crime 
  9.9   hazards. 
  9.10     (3) Desegregation transportation is transportation within 
  9.11  and outside of the district during the regular school year of 
  9.12  pupils to and from schools located outside their normal 
  9.13  attendance areas under a plan for desegregation mandated by the 
  9.14  commissioner or under court order.  
  9.15     (4) "Transportation services for pupils with disabilities" 
  9.16  is: 
  9.17     (i) transportation of pupils with disabilities who cannot 
  9.18  be transported on a regular school bus between home or a respite 
  9.19  care facility and school; 
  9.20     (ii) necessary transportation of pupils with disabilities 
  9.21  from home or from school to other buildings, including centers 
  9.22  such as developmental achievement centers, hospitals, and 
  9.23  treatment centers where special instruction or services required 
  9.24  by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 
  9.25  are provided, within or outside the district where services are 
  9.26  provided; 
  9.27     (iii) necessary transportation for resident pupils with 
  9.28  disabilities required by sections 125A.12, and 125A.26 to 
  9.29  125A.48; 
  9.30     (iv) board and lodging for pupils with disabilities in a 
  9.31  district maintaining special classes; 
  9.32     (v) transportation from one educational facility to another 
  9.33  within the district for resident pupils enrolled on a 
  9.34  shared-time basis in educational programs, and necessary 
  9.35  transportation required by sections 125A.18, and 125A.26 to 
  9.36  125A.48, for resident pupils with disabilities who are provided 
 10.1   special instruction and services on a shared-time basis or if 
 10.2   resident pupils are not transported, the costs of necessary 
 10.3   travel between public and private schools or neutral 
 10.4   instructional sites by essential personnel employed by the 
 10.5   district's program for children with a disability; 
 10.6      (vi) transportation for resident pupils with disabilities 
 10.7   to and from board and lodging facilities when the pupil is 
 10.8   boarded and lodged for educational purposes; and 
 10.9      (vii) services described in clauses (i) to (vi), when 
 10.10  provided for pupils with disabilities in conjunction with a 
 10.11  summer instructional program that relates to the pupil's 
 10.12  individual education plan or in conjunction with a learning year 
 10.13  program established under section 124D.128. 
 10.14     For purposes of computing special education base revenue 
 10.15  under section 125A.76, subdivision 2, the cost of providing 
 10.16  transportation for children with disabilities includes (A) the 
 10.17  additional cost of transporting a homeless student from a 
 10.18  temporary nonshelter home in another district to the school of 
 10.19  origin, or a formerly homeless student from a permanent home in 
 10.20  another district to the school of origin but only through the 
 10.21  end of the academic year; and (B) depreciation on district-owned 
 10.22  school buses purchased after July 1, 2005, and used primarily 
 10.23  for transportation of pupils with disabilities, calculated 
 10.24  according to paragraph (a), clauses (ii) and (iii).  
 10.25  Depreciation costs included in the disabled transportation 
 10.26  category must be excluded in calculating the actual expenditure 
 10.27  per pupil transported in the regular and excess transportation 
 10.28  categories according to paragraph (a). 
 10.29     (5) "Nonpublic nonregular transportation" is: 
 10.30     (i) transportation from one educational facility to another 
 10.31  within the district for resident pupils enrolled on a 
 10.32  shared-time basis in educational programs, excluding 
 10.33  transportation for nonpublic pupils with disabilities under 
 10.34  clause (4); 
 10.35     (ii) transportation within district boundaries between a 
 10.36  nonpublic school and a public school or a neutral site for 
 11.1   nonpublic school pupils who are provided pupil support services 
 11.2   pursuant to section 123B.44; and 
 11.3      (iii) late transportation home from school or between 
 11.4   schools within a district for nonpublic school pupils involved 
 11.5   in after-school activities. 
 11.6      (c) "Mobile unit" means a vehicle or trailer designed to 
 11.7   provide facilities for educational programs and services, 
 11.8   including diagnostic testing, guidance and counseling services, 
 11.9   and health services.  A mobile unit located off nonpublic school 
 11.10  premises is a neutral site as defined in section 123B.41, 
 11.11  subdivision 13. 
 11.12     Sec. 11.  Minnesota Statutes 2004, section 123B.92, 
 11.13  subdivision 5, is amended to read: 
 11.14     Subd. 5.  [DISTRICT REPORTS.] (a) Each district must report 
 11.15  data to the department as required by the department to account 
 11.16  for transportation expenditures.  
 11.17     (b) Salaries and fringe benefits of district employees 
 11.18  whose primary duties are other than transportation, including 
 11.19  central office administrators and staff, building administrators 
 11.20  and staff, teachers, social workers, school nurses, and 
 11.21  instructional aides, must not be included in a district's 
 11.22  transportation expenditures, except that a district may include 
 11.23  salaries and benefits according to paragraph (c) for (1) an 
 11.24  employee designated as the district transportation director, (2) 
 11.25  an employee providing direct support to the transportation 
 11.26  director, or (3) an employee providing direct transportation 
 11.27  services such as a bus driver or bus aide. 
 11.28     (c) Salaries and fringe benefits of other district 
 11.29  employees who work part time in transportation and part time in 
 11.30  other areas must not be included in a district's transportation 
 11.31  expenditures unless the district maintains documentation of the 
 11.32  employee's time spent on pupil transportation matters in the 
 11.33  form and manner prescribed by the department. 
 11.34     (d) Pupil transportation expenditures, excluding 
 11.35  expenditures for capital outlay, leased buses, student board and 
 11.36  lodging, crossing guards, and aides on buses, must be allocated 
 12.1   among transportation categories based on cost-per-mile, 
 12.2   cost-per-student, cost-per-hour, or cost-per-route, regardless 
 12.3   of whether the transportation services are provided on 
 12.4   district-owned or contractor-owned school buses.  Expenditures 
 12.5   for school bus driver salaries and fringe benefits may either be 
 12.6   directly charged to the appropriate transportation category or 
 12.7   may be allocated among transportation categories based on 
 12.8   cost-per-mile, cost-per-student, cost-per-hour, or 
 12.9   cost-per-route.  Expenditures by private contractors or 
 12.10  individuals who provide transportation exclusively in one 
 12.11  transportation category must be charged directly to the 
 12.12  appropriate transportation category.  Transportation services 
 12.13  provided by contractor-owned school bus companies incorporated 
 12.14  under different names but owned by the same individual or group 
 12.15  of individuals must be treated as the same company for cost 
 12.16  allocation purposes. 
 12.17     <b>[EFFECTIVE DATE.]</b> This section is effective for expenditure 
 12.18  reporting for fiscal year 2006. 
 12.19     Sec. 12.  Minnesota Statutes 2004, section 123B.92, 
 12.20  subdivision 9, is amended to read: 
 12.21     Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
 12.22  district's nonpublic pupil transportation aid for the 1996-1997 
 12.23  and later school years for transportation services for nonpublic 
 12.24  school pupils according to sections 123B.88, 123B.84 to 123B.86, 
 12.25  and this section, equals the sum of the amounts computed in 
 12.26  paragraphs (b) and (c).  This aid does not limit the obligation 
 12.27  to transport pupils under sections 123B.84 to 123B.87. 
 12.28     (b) For regular and excess transportation according to 
 12.29  subdivision 1, paragraph (b), clauses (1) and (2), an amount 
 12.30  equal to the product of: 
 12.31     (1) the district's actual expenditure per pupil transported 
 12.32  in the regular and excess transportation categories during the 
 12.33  second preceding school year; times 
 12.34     (2) the number of nonpublic school pupils residing in the 
 12.35  district who receive regular or excess transportation service or 
 12.36  reimbursement for the current school year; times 
 13.1      (3) the ratio of the formula allowance pursuant to section 
 13.2   126C.10, subdivision 2, for the current school year to the 
 13.3   formula allowance pursuant to section 126C.10, subdivision 2, 
 13.4   for the second preceding school year 1.03 for fiscal year 2006, 
 13.5   1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 
 13.6   for fiscal year 2009 and later. 
 13.7      (c) For nonpublic nonregular transportation according to 
 13.8   subdivision 1, paragraph (b), clause (5), an amount equal to the 
 13.9   product of: 
 13.10     (1) the district's actual expenditure for nonpublic 
 13.11  nonregular transportation during the second preceding school 
 13.12  year; times 
 13.13     (2) the ratio of the formula allowance pursuant to section 
 13.14  126C.10, subdivision 2, for the current school year to the 
 13.15  formula allowance pursuant to section 126C.10, subdivision 2, 
 13.16  for the second preceding school year 1.03 for fiscal year 2006, 
 13.17  1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0 
 13.18  for fiscal year 2009 and later. 
 13.19     (d) Notwithstanding the amount of the formula allowance for 
 13.20  fiscal year 2004 in section 126C.10, subdivision 2, the 
 13.21  commissioner shall use the amount of the formula allowance for 
 13.22  the current year minus $415 in determining the nonpublic pupil 
 13.23  transportation revenue in paragraphs (b) and (c) for fiscal year 
 13.24  2004. 
 13.25     Sec. 13.  Minnesota Statutes 2004, section 124D.68, 
 13.26  subdivision 9, is amended to read: 
 13.27     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 13.28  attending an eligible program full time under subdivision 3, 
 13.29  paragraph (d), the department must pay 90 percent of the 
 13.30  district's average general education revenue less basic skills 
 13.31  revenue to the eligible program and ten percent of the 
 13.32  district's average general education revenue less basic skills 
 13.33  revenue to the contracting district within 30 days after the 
 13.34  eligible program verifies enrollment using the form provided by 
 13.35  the department.  For a pupil attending an eligible program part 
 13.36  time, revenue, excluding compensatory revenue, shall be reduced 
 14.1   proportionately, according to the amount of time the pupil 
 14.2   attends the program, and the payments to the eligible program 
 14.3   and the contracting district shall be reduced accordingly.  A 
 14.4   pupil for whom payment is made according to this section may not 
 14.5   be counted by any district for any purpose other than 
 14.6   computation of general education revenue.  If payment is made 
 14.7   for a pupil under this subdivision, a district shall not 
 14.8   reimburse a program under section 124D.69 for the same 
 14.9   pupil.  The basic skills revenue shall be paid generated by 
 14.10  pupils attending the eligible program according to section 
 14.11  126C.10, subdivision 4, shall be paid to the eligible program. 
 14.12     (b) The department must pay up to 100 percent of the 
 14.13  revenue to the eligible program if there is an agreement to that 
 14.14  effect between the school district and the eligible program. 
 14.15     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
 14.16  program that provides chemical treatment services to students, 
 14.17  the department must pay 100 percent of the revenue to the 
 14.18  eligible program. 
 14.19     Sec. 14.  Minnesota Statutes 2004, section 124D.69, 
 14.20  subdivision 1, is amended to read: 
 14.21     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 14.22  program, eligible under section 124D.68, subdivision 3, 
 14.23  paragraph (d), or subdivision 4, operated by a private 
 14.24  organization that has contracted with a school district to 
 14.25  provide educational services for eligible pupils under section 
 14.26  124D.68, subdivision 2, the district contracting with the 
 14.27  private organization must reimburse the provider an amount equal 
 14.28  to the sum of (1) at least 95 percent of the district's average 
 14.29  general education less basic skills revenue per pupil unit times 
 14.30  the number of pupil units for pupils attending the program., and 
 14.31  (2) the amount of basic skills revenue shall be paid generated 
 14.32  by pupils attending the program according to section 126C.10, 
 14.33  subdivision 4.  Compensatory revenue must be allocated according 
 14.34  to section 126C.15, subdivision 2.  For a pupil attending the 
 14.35  program part time, the revenue paid to the program, excluding 
 14.36  compensatory revenue, must be reduced proportionately, according 
 15.1   to the amount of time the pupil attends the program, and revenue 
 15.2   paid to the district shall be reduced accordingly.  Pupils for 
 15.3   whom a district provides reimbursement may not be counted by the 
 15.4   district for any purpose other than computation of general 
 15.5   education revenue.  If payment is made to a district or program 
 15.6   for a pupil under this section, the department must not make a 
 15.7   payment for the same pupil under section 124D.68, subdivision 9. 
 15.8   Notwithstanding sections 125A.15, 125A.51, and 125A.515, general 
 15.9   education revenue for a student who receives educational 
 15.10  services under this section shall be paid according to this 
 15.11  section. 
 15.12     Sec. 15.  Minnesota Statutes 2004, section 125A.51, is 
 15.13  amended to read: 
 15.14     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 15.15  EDUCATION AND TRANSPORTATION.] 
 15.16     The responsibility for providing instruction and 
 15.17  transportation for a pupil without a disability who has a 
 15.18  short-term or temporary physical or emotional illness or 
 15.19  disability, as determined by the standards of the commissioner, 
 15.20  and who is temporarily placed for care and treatment for that 
 15.21  illness or disability, must be determined as provided in this 
 15.22  section.  
 15.23     (a) The school district of residence of the pupil is the 
 15.24  district in which the pupil's parent or guardian resides. 
 15.25     (b) When parental rights have been terminated by court 
 15.26  order, the legal residence of a child placed in a residential or 
 15.27  foster facility for care and treatment is the district in which 
 15.28  the child resides. 
 15.29     (c) Before the placement of a pupil for care and treatment, 
 15.30  the district of residence must be notified and provided an 
 15.31  opportunity to participate in the placement decision.  When an 
 15.32  immediate emergency placement is necessary and time does not 
 15.33  permit resident district participation in the placement 
 15.34  decision, the district in which the pupil is temporarily placed, 
 15.35  if different from the district of residence, must notify the 
 15.36  district of residence of the emergency placement within 15 days 
 16.1   of the placement.  
 16.2      (d) When a pupil without a disability is temporarily placed 
 16.3   for care and treatment in a day program and the pupil continues 
 16.4   to live within the district of residence during the care and 
 16.5   treatment, the district of residence must provide instruction 
 16.6   and necessary transportation to and from the treatment facility 
 16.7   for the pupil.  Transportation shall only be provided by the 
 16.8   district during regular operating hours of the district.  The 
 16.9   district may provide the instruction at a school within the 
 16.10  district of residence, at the pupil's residence, or in the case 
 16.11  of a placement outside of the resident district, in the district 
 16.12  in which the day treatment program is located by paying tuition 
 16.13  to that district.  The district of placement may contract with a 
 16.14  facility to provide instruction by teachers licensed by the 
 16.15  state Board of Teaching.  
 16.16     (e) When a pupil without a disability is temporarily placed 
 16.17  in a residential program for care and treatment, the district in 
 16.18  which the pupil is placed must provide instruction for the pupil 
 16.19  and necessary transportation while the pupil is receiving 
 16.20  instruction, and in the case of a placement outside of the 
 16.21  district of residence, the nonresident district must bill the 
 16.22  district of residence for the actual cost of providing the 
 16.23  instruction for the regular school year and for summer school, 
 16.24  excluding transportation costs. 
 16.25     (f) Notwithstanding paragraph (e), if the pupil is homeless 
 16.26  and placed in a public or private homeless shelter, then the 
 16.27  district that enrolls the pupil under section 127A.47, 
 16.28  subdivision 2, shall provide the transportation, unless the 
 16.29  district that enrolls the pupil and the district in which the 
 16.30  pupil is temporarily placed agree that the district in which the 
 16.31  pupil is temporarily placed shall provide transportation.  When 
 16.32  a pupil without a disability is temporarily placed in a 
 16.33  residential program outside the district of residence, the 
 16.34  administrator of the court placing the pupil must send timely 
 16.35  written notice of the placement to the district of residence.  
 16.36  The district of placement may contract with a residential 
 17.1   facility to provide instruction by teachers licensed by the 
 17.2   state Board of Teaching. For purposes of this section, the state 
 17.3   correctional facilities operated on a fee-for-service basis are 
 17.4   considered to be residential programs for care and treatment. 
 17.5      (f) (g) The district of residence must include the pupil in 
 17.6   its residence count of pupil units and pay tuition as provided 
 17.7   in section 123A.488 to the district providing the instruction.  
 17.8   Transportation costs must be paid by the district providing the 
 17.9   transportation and the state must pay transportation aid to that 
 17.10  district.  For purposes of computing state transportation aid, 
 17.11  pupils governed by this subdivision must be included in the 
 17.12  disabled transportation category if the pupils cannot be 
 17.13  transported on a regular school bus route without special 
 17.14  accommodations.  
 17.15     Sec. 16.  Minnesota Statutes 2004, section 126C.01, 
 17.16  subdivision 11, is amended to read: 
 17.17     Subd. 11.  [NET UNAPPROPRIATED OPERATING UNRESERVED GENERAL 
 17.18  FUND BALANCE.] "Net unappropriated operating unreserved general 
 17.19  fund balance" means the sum of the unreserved general fund 
 17.20  balances in the general, food service, and community service 
 17.21  funds minus the balances reserved for statutory operating debt 
 17.22  reduction, bus purchase, severance pay, taconite, unemployment 
 17.23  benefits, maintenance levy reduction, operating capital, 
 17.24  disabled access, health and safety, balance and encumbrances, 
 17.25  computed as of June 30 each year. 
 17.26     Sec. 17.  Minnesota Statutes 2004, section 126C.05, is 
 17.27  amended by adding a subdivision to read: 
 17.28     Subd. 20.  [PROJECT-BASED AVERAGE DAILY MEMBERSHIP.] (a) To 
 17.29  receive general education revenue for a pupil enrolled in a 
 17.30  public school with a project-based program, a school must meet 
 17.31  the requirements in this paragraph.  The school must: 
 17.32     (1) register with the commissioner as a project-based 
 17.33  program by May 30 of the preceding fiscal year; 
 17.34     (2) provide a minimum teacher contact of no less than one 
 17.35  hour per week per project-based credit for each pupil; 
 17.36     (3) maintain a record system that shows when each credit or 
 18.1   portion thereof was reported for membership for each pupil; and 
 18.2      (4) report pupil membership consistent with paragraph (b). 
 18.3      (b) The commissioner must develop a formula for reporting 
 18.4   pupil membership to compute average daily membership for each 
 18.5   registered project-based school.  Average daily membership for a 
 18.6   pupil in a registered project-based program is the lesser of: 
 18.7      (1) 1.0; or 
 18.8      (2) the ratio of (i) the number of membership hours 
 18.9   generated by project-based credits completed during the school 
 18.10  year plus membership hours generated by credits completed in a 
 18.11  seat-based setting to (ii) the annual required instructional 
 18.12  hours at that grade level.  Membership hours for a partially 
 18.13  completed project-based credit must be prorated. 
 18.14     Sec. 18.  Minnesota Statutes 2004, section 126C.10, 
 18.15  subdivision 1, is amended to read: 
 18.16     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 18.17  year 2003, the general education revenue for each district 
 18.18  equals the sum of the district's basic revenue, basic skills 
 18.19  revenue, training and experience revenue, secondary sparsity 
 18.20  revenue, elementary sparsity revenue, transportation sparsity 
 18.21  revenue, total operating capital revenue, and equity revenue. 
 18.22     (b) For fiscal year 2004 2006 and later, the general 
 18.23  education revenue for each district equals the sum of the 
 18.24  district's basic revenue, extended time revenue, gifted and 
 18.25  talented revenue, basic skills revenue, training and experience 
 18.26  revenue, secondary sparsity revenue, elementary sparsity 
 18.27  revenue, transportation sparsity revenue, total operating 
 18.28  capital revenue, equity revenue, alternative compensation 
 18.29  revenue, and transition revenue. 
 18.30     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 18.31  fiscal year 2006. 
 18.32     Sec. 19.  Minnesota Statutes 2004, section 126C.10, 
 18.33  subdivision 2, is amended to read: 
 18.34     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 18.35  district equals the formula allowance times the adjusted 
 18.36  marginal cost pupil units for the school year.  The formula 
 19.1   allowance for fiscal year 2001 2006 is $3,964.  The formula 
 19.2   allowance for fiscal year 2002 is $4,068.  The formula allowance 
 19.3   for fiscal year 2003 and subsequent years is $4,601 $4,740.  The 
 19.4   formula allowance for fiscal year 2007 and later is $4,885. 
 19.5      Sec. 20.  Minnesota Statutes 2004, section 126C.10, is 
 19.6   amended by adding a subdivision to read: 
 19.7      Subd. 2b.  [GIFTED AND TALENTED REVENUE.] Gifted and 
 19.8   talented revenue for each district equals $15 times the 
 19.9   district's adjusted marginal cost pupil units.  For fiscal year 
 19.10  2006 only, a district is eligible for start-up revenue equal to 
 19.11  $3 times the adjusted marginal cost pupil units for that year.  
 19.12  A school district must reserve gifted and talented revenue and, 
 19.13  consistent with section 120B.15, must spend the revenue only to: 
 19.14     (1) identify gifted and talented students; 
 19.15     (2) provide education programs for gifted and talented 
 19.16  students; or 
 19.17     (3) provide staff development to prepare teachers to best 
 19.18  meet the unique needs of gifted and talented students. 
 19.19     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 19.20  fiscal year 2006 and later. 
 19.21     Sec. 21.  Minnesota Statutes 2004, section 126C.10, 
 19.22  subdivision 3, is amended to read: 
 19.23     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] (a) For fiscal 
 19.24  year 2006 and later, the compensatory education revenue for each 
 19.25  building in the district equals the formula allowance minus 
 19.26  $415 $4,186 times the compensation revenue pupil units computed 
 19.27  according to section 126C.05, subdivision 3.  Revenue shall be 
 19.28  paid to the district and must be allocated according to section 
 19.29  126C.15, subdivision 2. 
 19.30     (b) When the district contracting with an alternative 
 19.31  program under section 124D.69 changes prior to the start of a 
 19.32  school year, the compensatory revenue generated by pupils 
 19.33  attending the program shall be paid to the district contracting 
 19.34  with the alternative program for the current school year, and 
 19.35  shall not be paid to the district contracting with the 
 19.36  alternative program for the prior school year. 
 20.1      (c) When the fiscal agent district for an area learning 
 20.2   center changes prior to the start of a school year, the 
 20.3   compensatory revenue shall be paid to the fiscal agent district 
 20.4   for the current school year, and shall not be paid to the fiscal 
 20.5   agent district for the prior school year.  
 20.6      Sec. 22.  Minnesota Statutes 2004, section 126C.10, 
 20.7   subdivision 6, is amended to read: 
 20.8      Subd. 6.  [DEFINITIONS.] The definitions in this 
 20.9   subdivision apply only to subdivisions 7 and 8.  
 20.10     (a) "High school" means a secondary school that has pupils 
 20.11  enrolled in at least the 10th, 11th, and 12th grades.  If there 
 20.12  is no secondary school in the district that has pupils enrolled 
 20.13  in at least the 10th, 11th, and 12th grades, and the school is 
 20.14  at least 19 miles from the next nearest school, the commissioner 
 20.15  must designate one school in the district as a high school for 
 20.16  the purposes of this section. 
 20.17     (b) "Secondary average daily membership" means, for a 
 20.18  district that has only one high school, the average daily 
 20.19  membership of pupils served in grades 7 through 12.  For a 
 20.20  district that has more than one high school, "secondary average 
 20.21  daily membership" for each high school means the product of the 
 20.22  average daily membership of pupils served in grades 7 through 12 
 20.23  in the high school, times the ratio of six to the number of 
 20.24  grades in the high school. 
 20.25     (c) "Attendance area" means the total surface area of the 
 20.26  district, in square miles, divided by the number of high schools 
 20.27  in the district.  For a district that does not operate a high 
 20.28  school and is less than 19 miles from the nearest operating high 
 20.29  school, the attendance area equals zero. 
 20.30     (d) "Isolation index" for a high school means the square 
 20.31  root of 55 percent of the attendance area plus the distance in 
 20.32  miles, according to the usually traveled routes, between the 
 20.33  high school and the nearest high school.  For a district in 
 20.34  which there is located land defined in section 84A.01, 84A.20, 
 20.35  or 84A.31, the distance in miles is the sum of: 
 20.36     (1) the square root of one-half of the attendance area; and 
 21.1      (2) the distance from the border of the district to the 
 21.2   nearest high school. 
 21.3      (e) "Qualifying high school" means a high school that has 
 21.4   an isolation index greater than 23 and that has secondary 
 21.5   average daily membership of less than 400.  
 21.6      (f) "Qualifying elementary school" means an elementary 
 21.7   school that is located 19 miles or more from the nearest 
 21.8   elementary school or from the nearest elementary school within 
 21.9   the district and, in either case, has an elementary average 
 21.10  daily membership of an average of 20 or fewer per grade. 
 21.11     (g) "Elementary average daily membership" means, for a 
 21.12  district that has only one elementary school, the average daily 
 21.13  membership of pupils served in kindergarten through grade 6.  
 21.14  For a district that has more than one elementary school, 
 21.15  "average daily membership" for each school means the average 
 21.16  daily membership of pupils served in kindergarten through grade 
 21.17  6 multiplied by the ratio of seven to the number of grades in 
 21.18  the elementary school.  
 21.19     (h) "Sparsity allowance" means $4,740 for fiscal year 2006 
 21.20  and $4,885 for fiscal year 2007 and later. 
 21.21     Sec. 23.  Minnesota Statutes 2004, section 126C.10, 
 21.22  subdivision 7, is amended to read: 
 21.23     Subd. 7.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
 21.24  secondary sparsity revenue for a school year equals the sum of 
 21.25  the results of the following calculation for each qualifying 
 21.26  high school in the district: 
 21.27     (1) the formula sparsity allowance for the school year, 
 21.28  multiplied by 
 21.29     (2) the secondary average daily membership of pupils served 
 21.30  in the high school, multiplied by 
 21.31     (3) the quotient obtained by dividing 400 minus the 
 21.32  secondary average daily membership by 400 plus the secondary 
 21.33  daily membership, multiplied by 
 21.34     (4) the lesser of 1.5 or the quotient obtained by dividing 
 21.35  the isolation index minus 23 by ten. 
 21.36     (b) A newly formed district that is the result of districts 
 22.1   combining under the cooperation and combination program or 
 22.2   consolidating under section 123A.48 must receive secondary 
 22.3   sparsity revenue equal to the greater of:  (1) the amount 
 22.4   calculated under paragraph (a) for the combined district; or (2) 
 22.5   the sum of the amounts of secondary sparsity revenue the former 
 22.6   districts had in the year prior to consolidation, increased for 
 22.7   any subsequent changes in the secondary sparsity formula. 
 22.8      Sec. 24.  Minnesota Statutes 2004, section 126C.10, 
 22.9   subdivision 8, is amended to read: 
 22.10     Subd. 8.  [ELEMENTARY SPARSITY REVENUE.] A district's 
 22.11  elementary sparsity revenue equals the sum of the following 
 22.12  amounts for each qualifying elementary school in the district:  
 22.13     (1) the formula sparsity allowance for the year, multiplied 
 22.14  by 
 22.15     (2) the elementary average daily membership of pupils 
 22.16  served in the school, multiplied by 
 22.17     (3) the quotient obtained by dividing 140 minus the 
 22.18  elementary average daily membership by 140 plus the average 
 22.19  daily membership. 
 22.20     Sec. 25.  Minnesota Statutes 2004, section 126C.10, 
 22.21  subdivision 13, is amended to read: 
 22.22     Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 22.23  fiscal year 2000 2006 and thereafter, total operating capital 
 22.24  revenue for a district equals the amount determined under 
 22.25  paragraph (b) or (c), plus $73 $93 times the adjusted marginal 
 22.26  cost pupil units for the school year.  The revenue must be 
 22.27  placed in a reserved account in the general fund and may only be 
 22.28  used according to paragraph (d) or subdivision 14. 
 22.29     (b) For fiscal years 2000 2006 and later, capital revenue 
 22.30  for a district equals $100 times the district's maintenance cost 
 22.31  index times its adjusted marginal cost pupil units for the 
 22.32  school year.  
 22.33     (c) For fiscal years 2000 and later, The revenue for a 
 22.34  district that operates a program under section 124D.128, is 
 22.35  increased by an amount equal to $30 times the number of marginal 
 22.36  cost pupil units served at the site where the program is 
 23.1   implemented.  
 23.2      (d) For fiscal years 2001, 2002, and 2003, the district 
 23.3   must reserve an amount equal to $5 per adjusted marginal cost 
 23.4   pupil unit for telecommunication access costs.  Reserve revenue 
 23.5   under this paragraph must first be used to pay for ongoing or 
 23.6   recurring telecommunication access costs, including access to 
 23.7   data and video connections, including Internet access.  Any 
 23.8   revenue remaining after covering all ongoing or recurring access 
 23.9   costs may be used for computer hardware or equipment. 
 23.10     Sec. 26.  Minnesota Statutes 2004, section 126C.10, 
 23.11  subdivision 13a, is amended to read: 
 23.12     Subd. 13a.  [OPERATING CAPITAL LEVY.] To obtain operating 
 23.13  capital revenue for fiscal year 2005 2007 and later, a district 
 23.14  may levy an amount not more than the product of its operating 
 23.15  capital revenue for the fiscal year times the lesser of one or 
 23.16  the ratio of its adjusted net tax capacity per adjusted marginal 
 23.17  cost pupil unit to $22,222 $22,700. 
 23.18     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 23.19  fiscal year 2007. 
 23.20     Sec. 27.  Minnesota Statutes 2004, section 126C.10, 
 23.21  subdivision 17, is amended to read: 
 23.22     Subd. 17.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
 23.23  definitions in this subdivision apply to subdivisions 18 and 19. 
 23.24     (a) "Sparsity index" for a district means the greater of .2 
 23.25  or the ratio of the square mile area of the district to the 
 23.26  resident pupil units of the district. 
 23.27     (b) "Density index" for a district means the ratio of the 
 23.28  square mile area of the district to the resident pupil units of 
 23.29  the district.  However, the density index for a district cannot 
 23.30  be greater than .2 or less than .005. 
 23.31     (c) "Transportation allowance" means $4,601 for fiscal year 
 23.32  2007 and later. 
 23.33     Sec. 28.  Minnesota Statutes 2004, section 126C.10, 
 23.34  subdivision 18, is amended to read: 
 23.35     Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
 23.36  A district's transportation sparsity allowance equals the 
 24.1   greater of zero or the result of the following computation: 
 24.2      (i) (1) Multiply the formula transportation allowance 
 24.3   according to subdivision 2, by .1469. 
 24.4      (ii) (2) Multiply the result in clause (i) (1) by the 
 24.5   district's sparsity index raised to the 26/100 power. 
 24.6      (iii) (3) Multiply the result in clause (ii) (2) by the 
 24.7   district's density index raised to the 13/100 power. 
 24.8      (iv) (4) Multiply the formula transportation allowance 
 24.9   according to subdivision 2, by .0485. 
 24.10     (v) (5) Subtract the result in clause (iv) (4) from the 
 24.11  result in clause (iii) (3). 
 24.12     (b) Transportation sparsity revenue is equal to the 
 24.13  transportation sparsity allowance times the adjusted marginal 
 24.14  cost pupil units times 1.08.  
 24.15     Sec. 29.  Minnesota Statutes 2004, section 126C.10, 
 24.16  subdivision 24, is amended to read: 
 24.17     Subd. 24.  [EQUITY REVENUE.] (a) A school district 
 24.18  qualifies for equity revenue if: 
 24.19     (1) the school district's adjusted marginal cost pupil unit 
 24.20  amount of basic revenue, supplemental revenue, transition 
 24.21  revenue, and referendum revenue is less than the value of the 
 24.22  school district at or immediately above the 95th percentile of 
 24.23  school districts in its equity region for those revenue 
 24.24  categories; and 
 24.25     (2) the school district's administrative offices are not 
 24.26  located in a city of the first class on July 1, 1999. 
 24.27     (b) Equity revenue for a qualifying district that receives 
 24.28  referendum revenue under section 126C.17, subdivision 4, equals 
 24.29  the product of (1) the district's adjusted marginal cost pupil 
 24.30  units for that year; times (2) the sum of (i) $13, plus (ii) 
 24.31  $75, times the school district's equity index computed under 
 24.32  subdivision 27. 
 24.33     (c) Equity revenue for a qualifying district that does not 
 24.34  receive referendum revenue under section 126C.17, subdivision 4, 
 24.35  equals the product of the district's adjusted marginal cost 
 24.36  pupil units for that year times $13. 
 25.1      (d) A school district's equity revenue is increased by the 
 25.2   greater of zero or an amount equal to the district's resident 
 25.3   marginal pupil units times the difference between ten percent of 
 25.4   the statewide average amount of referendum revenue per resident 
 25.5   marginal cost pupil unit for that year and the district's 
 25.6   referendum revenue per resident marginal cost pupil unit.  A 
 25.7   school district's revenue under this paragraph must not exceed 
 25.8   $100,000 for that year. 
 25.9      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 25.10  fiscal year 2006. 
 25.11     Sec. 30.  Minnesota Statutes 2004, section 126C.10, 
 25.12  subdivision 31, is amended to read: 
 25.13     Subd. 31.  [TRANSITION REVENUE.] (a) A district's 
 25.14  transition allowance for fiscal years 2004 through 2008 equals 
 25.15  the greater of zero or the product of the ratio of the number of 
 25.16  adjusted marginal cost pupil units the district would have 
 25.17  counted for fiscal year 2004 under Minnesota Statutes 2002 to 
 25.18  the district's adjusted marginal cost pupil units for fiscal 
 25.19  year 2004, times the difference between:  (1) the lesser of the 
 25.20  district's general education revenue per adjusted marginal cost 
 25.21  pupil unit for fiscal year 2003 or the amount of general 
 25.22  education revenue the district would have received per adjusted 
 25.23  marginal cost pupil unit for fiscal year 2004 according to 
 25.24  Minnesota Statutes 2002, and (2) the district's general 
 25.25  education revenue for fiscal year 2004 excluding transition 
 25.26  revenue divided by the number of adjusted marginal cost pupil 
 25.27  units the district would have counted for fiscal year 2004 under 
 25.28  Minnesota Statutes 2002.  
 25.29     A district's transition allowance for fiscal year 2009 and 
 25.30  later is zero. 
 25.31     (b) A district's transition revenue for fiscal year 2004 
 25.32  and later 2006 and later equals the sum of (1) the product of 
 25.33  the district's transition allowance times the district's 
 25.34  adjusted marginal cost pupil units. plus (2) the amount of 
 25.35  referendum revenue under section 126C.17 and general education 
 25.36  revenue, excluding transition revenue, for fiscal year 2004 
 26.1   attributable to pupils four or five years of age on September 1, 
 26.2   2003, enrolled in a prekindergarten program implemented by the 
 26.3   district before July 1, 2003, and reported as kindergarten 
 26.4   pupils under section 126C.05, subdivision 1, for fiscal year 
 26.5   2004, plus (3) the amount of compensatory education revenue 
 26.6   under subdivision 3 for fiscal year 2005 attributable to pupils 
 26.7   four years of age on September 1, 2003, enrolled in a 
 26.8   prekindergarten program implemented by the district before July 
 26.9   1, 2003, and reported as kindergarten pupils under section 
 26.10  126C.05, subdivision 1, for fiscal year 2004. 
 26.11     Sec. 31.  Minnesota Statutes 2004, section 126C.10, is 
 26.12  amended by adding a subdivision to read: 
 26.13     Subd. 34.  [BASIC ALTERNATIVE COMPENSATION AID.] (a) For 
 26.14  fiscal year 2006, the basic alternative compensation aid for a 
 26.15  district or charter school with an alternative compensation plan 
 26.16  approved under section 122A.415 equals the alternative 
 26.17  compensation revenue according to section 122A.415, subdivision 
 26.18  1.  The basic alternative compensation aid for a charter school 
 26.19  with an approved alternative compensation plan under section 
 26.20  122A.415, subdivision 1, paragraph (c), equals $260 times the 
 26.21  number of pupils enrolled in the school on October 1 of the 
 26.22  previous school year, or on October 1 of the current fiscal year 
 26.23  for a charter school in the first year of operation.  
 26.24     (b) For fiscal year 2007 and later, the basic alternative 
 26.25  compensation aid for a district with an alternative compensation 
 26.26  plan approved under section 122A.415 equals 73.1 percent of the 
 26.27  alternative compensation revenue according to section 122A.415, 
 26.28  subdivision 1.  The basic alternative compensation aid for a 
 26.29  charter school with an alternative compensation plan approved 
 26.30  under section 122A.415 equals $260 times the number of pupils 
 26.31  enrolled in the school on October 1 of the previous fiscal year, 
 26.32  or on October 1 of the current fiscal year for a charter school 
 26.33  in the first year of operation, times the ratio of the sum of 
 26.34  the alternative compensation aid and alternative compensation 
 26.35  levy for all participating school districts to the maximum 
 26.36  alternative compensation revenue for those districts according 
 27.1   to section 122A.415, subdivision 1. 
 27.2      (c) Notwithstanding paragraphs (a) and (b) and section 
 27.3   122A.415, subdivision 1, the state total basic alternative 
 27.4   compensation aid entitlement must not exceed $19,329,000 for 
 27.5   fiscal year 2006 and $75,636,000 for fiscal year 2007 and 
 27.6   later.  The commissioner must limit the amount of alternative 
 27.7   compensation aid approved under section 122A.415 so as not to 
 27.8   exceed these limits. 
 27.9      Sec. 32.  Minnesota Statutes 2004, section 126C.10, is 
 27.10  amended by adding a subdivision to read: 
 27.11     Subd. 35.  [ALTERNATIVE COMPENSATION LEVY.] For fiscal year 
 27.12  2007 and later, the alternative compensation levy for a district 
 27.13  receiving basic alternative compensation aid equals the product 
 27.14  of (1) the difference between the district's alternative 
 27.15  compensation revenue and the district's basic alternative 
 27.16  compensation aid times (2) the lesser of one or the ratio of the 
 27.17  district's adjusted net tax capacity per adjusted pupil unit to 
 27.18  $5,913. 
 27.19     Sec. 33.  Minnesota Statutes 2004, section 126C.10, is 
 27.20  amended by adding a subdivision to read: 
 27.21     Subd. 36.  [ALTERNATIVE COMPENSATION AID.] (a) For fiscal 
 27.22  year 2007 and later, a district's alternative compensation 
 27.23  equalization aid equals the district's alternative compensation 
 27.24  revenue minus the district's basic alternative compensation aid 
 27.25  minus the district's alternative compensation levy.  If a 
 27.26  district does not levy the entire amount permitted, the 
 27.27  alternative compensation equalization aid must be reduced in 
 27.28  proportion to the actual amount levied. 
 27.29     (b) A district's alternative compensation aid equals the 
 27.30  sum of the district's basic alternative compensation aid and the 
 27.31  district's alternative compensation equalization aid. 
 27.32     Sec. 34.  Minnesota Statutes 2004, section 126C.13, 
 27.33  subdivision 4, is amended to read: 
 27.34     Subd. 4.  [GENERAL EDUCATION AID.] (a) For fiscal year 
 27.35  2004, a district's general education aid is the sum of the 
 27.36  following amounts:  
 28.1      (1) general education revenue; 
 28.2      (2) shared time aid according to section 126C.01, 
 28.3   subdivision 7; 
 28.4      (3) referendum aid according to section 126C.17; and 
 28.5      (4) online learning aid according to section 126C.24. 
 28.6      (b) For fiscal year 2005 and later 2006, a district's 
 28.7   general education aid is the sum of the following amounts: 
 28.8      (1) general education revenue, excluding equity revenue, 
 28.9   total operating capital, and transition revenue; 
 28.10     (2) operating capital aid according to section 126C.10, 
 28.11  subdivision 13b; 
 28.12     (3) equity aid according to section 126C.10, subdivision 
 28.13  30; 
 28.14     (4) transition aid according to section 126C.10, 
 28.15  subdivision 33; 
 28.16     (5) shared time aid according to section 126C.01, 
 28.17  subdivision 7; 
 28.18     (6) referendum aid according to section 126C.17; and 
 28.19     (7) online learning aid according to section 126C.24. 
 28.20     (b) For fiscal year 2007 and later, a district's general 
 28.21  education aid is the sum of the following amounts: 
 28.22     (1) general education revenue, excluding equity revenue, 
 28.23  total operating capital revenue, alternative compensation 
 28.24  revenue, and transition revenue; 
 28.25     (2) operating capital aid according to section 126C.10, 
 28.26  subdivision 13b; 
 28.27     (3) equity aid according to section 126C.10, subdivision 
 28.28  30; 
 28.29     (4) alternative compensation aid according to section 
 28.30  126C.10, subdivision 36; 
 28.31     (5) transition aid according to section 126C.10, 
 28.32  subdivision 33; 
 28.33     (6) shared time aid according to section 126C.01, 
 28.34  subdivision 7; 
 28.35     (7) referendum aid according to section 126C.17; and 
 28.36     (8) online learning aid according to section 126C.24. 
 29.1      Sec. 35.  Minnesota Statutes 2004, section 126C.15, 
 29.2   subdivision 1, is amended to read: 
 29.3      Subdivision 1.  [USE OF THE REVENUE.] Except for revenue 
 29.4   allocated for prekindergarten programs under subdivision 2, 
 29.5   paragraph (c), the basic skills revenue under section 126C.10, 
 29.6   subdivision 4, must be reserved and used to meet the educational 
 29.7   needs of pupils who enroll under-prepared to learn and whose 
 29.8   progress toward meeting state or local content or performance 
 29.9   standards is below the level that is appropriate for learners of 
 29.10  their age.  Any of the following may be provided to meet these 
 29.11  learners' needs: 
 29.12     (1) direct instructional services under the assurance of 
 29.13  mastery program according to section 124D.66; 
 29.14     (2) remedial instruction in reading, language arts, 
 29.15  mathematics, other content areas, or study skills to improve the 
 29.16  achievement level of these learners; 
 29.17     (3) additional teachers and teacher aides to provide more 
 29.18  individualized instruction to these learners through individual 
 29.19  tutoring, lower instructor-to-learner ratios, or team teaching; 
 29.20     (4) a longer school day or week during the regular school 
 29.21  year or through a summer program that may be offered directly by 
 29.22  the site or under a performance-based contract with a 
 29.23  community-based organization; 
 29.24     (5) comprehensive and ongoing staff development consistent 
 29.25  with district and site plans according to section 122A.60, for 
 29.26  teachers, teacher aides, principals, and other personnel to 
 29.27  improve their ability to identify the needs of these learners 
 29.28  and provide appropriate remediation, intervention, 
 29.29  accommodations, or modifications; 
 29.30     (6) instructional materials and technology appropriate for 
 29.31  meeting the individual needs of these learners; 
 29.32     (7) programs to reduce truancy, encourage completion of 
 29.33  high school, enhance self-concept, provide health services, 
 29.34  provide nutrition services, provide a safe and secure learning 
 29.35  environment, provide coordination for pupils receiving services 
 29.36  from other governmental agencies, provide psychological services 
 30.1   to determine the level of social, emotional, cognitive, and 
 30.2   intellectual development, and provide counseling services, 
 30.3   guidance services, and social work services; 
 30.4      (8) bilingual programs, bicultural programs, and programs 
 30.5   for learners of limited English proficiency; 
 30.6      (9) all day kindergarten; 
 30.7      (10) extended school day and extended school year programs; 
 30.8   and 
 30.9      (11) substantial parent involvement in developing and 
 30.10  implementing remedial education or intervention plans for a 
 30.11  learner, including learning contracts between the school, the 
 30.12  learner, and the parent that establish achievement goals and 
 30.13  responsibilities of the learner and the learner's parent or 
 30.14  guardian. 
 30.15     Sec. 36.  Minnesota Statutes 2004, section 126C.15, 
 30.16  subdivision 2, is amended to read: 
 30.17     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 30.18  allocate its compensatory revenue to each school building in the 
 30.19  district where the children who have generated the revenue are 
 30.20  served unless the school district has received permission under 
 30.21  section 63 to allocate compensatory revenue according to student 
 30.22  performance measures developed by the school board. 
 30.23     (b) Notwithstanding paragraph (a), a district may allocate 
 30.24  up to five percent of the amount of compensatory revenue that 
 30.25  the district received during the previous fiscal year receives 
 30.26  to school sites according to a plan adopted by the school board. 
 30.27     (c) Notwithstanding paragraph (a), a district may allocate 
 30.28  up to ten percent of the amount of compensatory revenue the 
 30.29  district receives to support prekindergarten programs under 
 30.30  subdivision 2a. 
 30.31     (d) For the purposes of this section and section 126C.05, 
 30.32  subdivision 3, "building" means education site as defined in 
 30.33  section 123B.04, subdivision 1. 
 30.34     (d) (e) If the pupil is served at a site other than one 
 30.35  owned and operated by the district, the revenue shall be paid to 
 30.36  the district and used for services for pupils who generate the 
 31.1   revenue.  
 31.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005, 
 31.3   for revenue for fiscal year 2006. 
 31.4      Sec. 37.  Minnesota Statutes 2004, section 126C.15, 
 31.5   subdivision 3, is amended to read: 
 31.6      Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 31.7   team, as defined in section 123B.04, subdivision 2, paragraph 
 31.8   (a), or the instruction and curriculum advisory committee under 
 31.9   section 120B.11, if the school has no school site decision team, 
 31.10  shall recommend how the compensatory education revenue will be 
 31.11  used to carry out the purpose of this section.  A school 
 31.12  district that has received permission under section 63 to 
 31.13  allocate compensatory revenue according to school performance 
 31.14  measures shall share its plan for the distribution of 
 31.15  compensatory revenue with the school site decision team.  
 31.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005, 
 31.17  for revenue for fiscal year 2006. 
 31.18     Sec. 38.  Minnesota Statutes 2004, section 126C.17, 
 31.19  subdivision 2, is amended to read: 
 31.20     Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding 
 31.21  subdivision 1, for fiscal year 2003, a district's referendum 
 31.22  allowance must not exceed the greater of: 
 31.23     (1) the sum of a district's referendum allowance for fiscal 
 31.24  year 1994 times 1.162 plus its referendum conversion allowance 
 31.25  for fiscal year 2003, minus $415; 
 31.26     (2) 18.2 percent of the formula allowance; 
 31.27     (3) for a newly reorganized district created on July 1, 
 31.28  2002, the referendum revenue authority for each reorganizing 
 31.29  district in the year preceding reorganization divided by its 
 31.30  resident marginal cost pupil units for the year preceding 
 31.31  reorganization, minus $415; or 
 31.32     (4) for a newly reorganized district created after July 1, 
 31.33  2002, the referendum revenue authority for each reorganizing 
 31.34  district in the year preceding reorganization divided by its 
 31.35  resident marginal cost pupil units for the year preceding 
 31.36  reorganization. 
 32.1      (b) Notwithstanding subdivision 1, for fiscal year 2004 
 32.2   2007 and later, a district's referendum allowance must not 
 32.3   exceed the greater of: 
 32.4      (1) the sum of:  (i) a district's referendum allowance for 
 32.5   fiscal year 1994 times 1.177 times the annual inflationary 
 32.6   increase as calculated under paragraph (c) plus (ii) its 
 32.7   referendum conversion allowance for fiscal year 2003, minus 
 32.8   (iii) $415 $115; 
 32.9      (2) the greater of (i) 18.6 28 percent of the formula 
 32.10  allowance or (ii) $855.79 $1,368 times the annual inflationary 
 32.11  increase as calculated under paragraph (c); or 
 32.12     (3) for a newly reorganized district created after July 1, 
 32.13  2002 2006, the referendum revenue authority for each 
 32.14  reorganizing district in the year preceding reorganization 
 32.15  divided by its resident marginal cost pupil units for the year 
 32.16  preceding reorganization. 
 32.17     (c) (b) For purposes of this subdivision, for fiscal year 
 32.18  2005 and later, "inflationary increase" means one plus the 
 32.19  percentage change in the Consumer Price Index for urban 
 32.20  consumers, as prepared by the United States Bureau of Labor 
 32.21  Standards, for the current fiscal year to fiscal year 2004.  For 
 32.22  fiscal years 2009 and later, for purposes of paragraph (b), 
 32.23  clause (1), the inflationary increase equals the inflationary 
 32.24  increase for fiscal year 2008 plus one-fourth of the percentage 
 32.25  increase in the formula allowance for that year compared with 
 32.26  the formula allowance for fiscal year 2008. 
 32.27     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 32.28  fiscal year 2007. 
 32.29     Sec. 39.  Minnesota Statutes 2004, section 126C.17, 
 32.30  subdivision 5, is amended to read: 
 32.31     Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 
 32.32  year 2003 and later, a district's referendum equalization 
 32.33  revenue equals the sum of the first tier referendum equalization 
 32.34  revenue and the second tier referendum equalization revenue. 
 32.35     (b) A district's first tier referendum equalization revenue 
 32.36  equals the district's first tier referendum equalization 
 33.1   allowance times the district's resident marginal cost pupil 
 33.2   units for that year.  
 33.3      (c) For fiscal years 2003 and 2004, a district's first tier 
 33.4   referendum equalization allowance equals the lesser of the 
 33.5   district's referendum allowance under subdivision 1 or $126.  
 33.6   For fiscal year 2005, a district's first tier referendum 
 33.7   equalization allowance equals the lesser of the district's 
 33.8   referendum allowance under subdivision 1 or $405.  For fiscal 
 33.9   year 2006 and later, a district's first tier referendum 
 33.10  equalization allowance equals the lesser of the district's 
 33.11  referendum allowance under subdivision 1 or $500.  For fiscal 
 33.12  year 2007 and later, a district's first tier referendum 
 33.13  equalization allowance equals the lesser of the district's 
 33.14  referendum allowance under subdivision 1 or $600. 
 33.15     (d) A district's second tier referendum equalization 
 33.16  revenue equals the district's second tier referendum 
 33.17  equalization allowance times the district's resident marginal 
 33.18  cost pupil units for that year.  
 33.19     (e) For fiscal year 2006, a district's second tier 
 33.20  referendum equalization allowance equals the lesser of the 
 33.21  district's referendum allowance under subdivision 1 or 18.6 
 33.22  percent of the formula allowance, minus the district's first 
 33.23  tier referendum equalization allowance.  For fiscal year 2007 
 33.24  and later, a district's second tier referendum equalization 
 33.25  allowance equals the lesser of the district's referendum 
 33.26  allowance under subdivision 1 or 28 percent of the formula 
 33.27  allowance, minus the district's first tier referendum 
 33.28  equalization allowance. 
 33.29     (f) Notwithstanding paragraph (e), the second tier 
 33.30  referendum allowance for a district qualifying for secondary 
 33.31  sparsity revenue under section 126C.10, subdivision 7, or 
 33.32  elementary sparsity revenue under section 126C.10, subdivision 
 33.33  8, equals the district's referendum allowance under subdivision 
 33.34  1 minus the district's first tier referendum equalization 
 33.35  allowance. 
 33.36     Sec. 40.  Minnesota Statutes 2004, section 126C.17, 
 34.1   subdivision 7, is amended to read: 
 34.2      Subd. 7.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
 34.3   referendum equalization aid equals the difference between its 
 34.4   referendum equalization revenue and levy. 
 34.5      (b) If a district's actual levy for first or second tier 
 34.6   referendum equalization revenue is less than its maximum levy 
 34.7   limit for that tier, aid shall be proportionately reduced. 
 34.8      (c) Notwithstanding paragraph (a), the referendum 
 34.9   equalization aid for a district, where the referendum 
 34.10  equalization aid under paragraph (a) exceeds 90 percent of the 
 34.11  referendum revenue, must not exceed 18.6 28 percent of the 
 34.12  formula allowance times the district's resident marginal cost 
 34.13  pupil units.  A district's referendum levy is increased by the 
 34.14  amount of any reduction in referendum aid under this paragraph. 
 34.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 34.16  fiscal year 2007. 
 34.17     Sec. 41.  Minnesota Statutes 2004, section 126C.17, 
 34.18  subdivision 9, is amended to read: 
 34.19     Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 34.20  by section 126C.10, subdivision 1, may be increased in the 
 34.21  amount approved by the voters of the district at a referendum 
 34.22  called for the purpose.  The referendum may be called by the 
 34.23  board or shall be called by the board upon written petition of 
 34.24  qualified voters of the district.  The referendum must be 
 34.25  conducted one or two calendar years before the increased levy 
 34.26  authority, if approved, first becomes payable.  Only one 
 34.27  election to approve an increase may be held in a calendar year.  
 34.28  Unless the referendum is conducted by mail under paragraph (g), 
 34.29  the referendum must be held on the first Tuesday after the first 
 34.30  Monday in November.  The ballot must state the maximum amount of 
 34.31  the increased revenue per resident marginal cost pupil unit, the 
 34.32  estimated referendum tax rate as a percentage of referendum 
 34.33  market value in the first year it is to be levied, and that the 
 34.34  revenue must be used to finance school operations.  The ballot 
 34.35  may state a schedule, determined by the board, of increased 
 34.36  revenue per resident marginal cost pupil unit that differs from 
 35.1   year to year over the number of years for which the increased 
 35.2   revenue is authorized.  If the ballot contains a schedule 
 35.3   showing different amounts, it must also indicate the estimated 
 35.4   referendum tax rate as a percent of referendum market value for 
 35.5   the amount specified for the first year and for the maximum 
 35.6   amount specified in the schedule.  The ballot may state that 
 35.7   existing referendum levy authority is expiring.  In this case, 
 35.8   the ballot may also compare the proposed levy authority to the 
 35.9   existing expiring levy authority, and express the proposed 
 35.10  increase as the amount, if any, over the expiring referendum 
 35.11  levy authority.  The ballot must designate the specific number 
 35.12  of years, not to exceed ten, for which the referendum 
 35.13  authorization applies.  The ballot, including a ballot on the 
 35.14  question to revoke or reduce the increased revenue amount under 
 35.15  paragraph (c), must abbreviate the term "per resident marginal 
 35.16  cost pupil unit" as "per pupil."  The notice required under 
 35.17  section 275.60 may be modified to read, in cases of renewing 
 35.18  existing levies: 
 35.19     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 35.20     FOR A PROPERTY TAX INCREASE." 
 35.21     The ballot may contain a textual portion with the 
 35.22  information required in this subdivision and a question stating 
 35.23  substantially the following:  
 35.24     "Shall the increase in the revenue proposed by (petition 
 35.25  to) the board of ........., School District No. .., be approved?"
 35.26     If approved, an amount equal to the approved revenue per 
 35.27  resident marginal cost pupil unit times the resident marginal 
 35.28  cost pupil units for the school year beginning in the year after 
 35.29  the levy is certified shall be authorized for certification for 
 35.30  the number of years approved, if applicable, or until revoked or 
 35.31  reduced by the voters of the district at a subsequent referendum.
 35.32     (b) The board must prepare and deliver by first class mail 
 35.33  at least 15 days but no more than 30 days before the day of the 
 35.34  referendum to each taxpayer a notice of the referendum and the 
 35.35  proposed revenue increase.  The board need not mail more than 
 35.36  one notice to any taxpayer.  For the purpose of giving mailed 
 36.1   notice under this subdivision, owners must be those shown to be 
 36.2   owners on the records of the county auditor or, in any county 
 36.3   where tax statements are mailed by the county treasurer, on the 
 36.4   records of the county treasurer.  Every property owner whose 
 36.5   name does not appear on the records of the county auditor or the 
 36.6   county treasurer is deemed to have waived this mailed notice 
 36.7   unless the owner has requested in writing that the county 
 36.8   auditor or county treasurer, as the case may be, include the 
 36.9   name on the records for this purpose.  The notice must project 
 36.10  the anticipated amount of tax increase in annual dollars and 
 36.11  annual percentage for typical residential homesteads, 
 36.12  agricultural homesteads, apartments, and commercial-industrial 
 36.13  property within the school district. 
 36.14     The notice for a referendum may state that an existing 
 36.15  referendum levy is expiring and project the anticipated amount 
 36.16  of increase over the existing referendum levy in the first year, 
 36.17  if any, in annual dollars and annual percentage for typical 
 36.18  residential homesteads, agricultural homesteads, apartments, and 
 36.19  commercial-industrial property within the district. 
 36.20     The notice must include the following statement:  "Passage 
 36.21  of this referendum will result in an increase in your property 
 36.22  taxes."  However, in cases of renewing existing levies, the 
 36.23  notice may include the following statement:  "Passage of this 
 36.24  referendum may result in an increase in your property taxes." 
 36.25     (c) A referendum on the question of revoking or reducing 
 36.26  the increased revenue amount authorized pursuant to paragraph 
 36.27  (a) may be called by the board and shall be called by the board 
 36.28  upon the written petition of qualified voters of the district.  
 36.29  A referendum to revoke or reduce the revenue amount must state 
 36.30  the amount per resident marginal cost pupil unit by which the 
 36.31  authority is to be reduced.  Revenue authority approved by the 
 36.32  voters of the district pursuant to paragraph (a) must be 
 36.33  available to the school district at least once before it is 
 36.34  subject to a referendum on its revocation or reduction for 
 36.35  subsequent years.  Only one revocation or reduction referendum 
 36.36  may be held to revoke or reduce referendum revenue for any 
 37.1   specific year and for years thereafter. 
 37.2      (d) A petition authorized by paragraph (a) or (c) is 
 37.3   effective if signed by a number of qualified voters in excess of 
 37.4   15 percent of the registered voters of the district on the day 
 37.5   the petition is filed with the board.  A referendum invoked by 
 37.6   petition must be held on the date specified in paragraph (a). 
 37.7      (e) The approval of 50 percent plus one of those voting on 
 37.8   the question is required to pass a referendum authorized by this 
 37.9   subdivision. 
 37.10     (f) At least 15 days before the day of the referendum, the 
 37.11  district must submit a copy of the notice required under 
 37.12  paragraph (b) to the commissioner and to the county auditor of 
 37.13  each county in which the district is located.  Within 15 days 
 37.14  after the results of the referendum have been certified by the 
 37.15  board, or in the case of a recount, the certification of the 
 37.16  results of the recount by the canvassing board, the district 
 37.17  must notify the commissioner of the results of the referendum. 
 37.18     Sec. 42.  Minnesota Statutes 2004, section 126C.17, 
 37.19  subdivision 13, is amended to read: 
 37.20     Subd. 13.  [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 
 37.21  district that received supplemental or transition revenue in 
 37.22  fiscal year 2002 may convert its supplemental revenue conversion 
 37.23  allowance and transition revenue conversion allowance to 
 37.24  additional referendum allowance under subdivision 1 for fiscal 
 37.25  year 2003 and thereafter.  A majority of the school board must 
 37.26  approve the conversion at a public meeting before November 1, 
 37.27  2001.  For a district with other referendum authority, the 
 37.28  referendum conversion allowance approved by the board continues 
 37.29  until the portion of the district's other referendum authority 
 37.30  with the earliest expiration date after June 30, 2006, expires.  
 37.31  For a district with no other referendum authority, the 
 37.32  referendum conversion allowance approved by the board continues 
 37.33  until June 30, 2012. 
 37.34     (b) A school district that received transition revenue in 
 37.35  fiscal year 2004 may convert all or part of its transition 
 37.36  revenue to referendum revenue with voter approval in a 
 38.1   referendum called for the purpose.  The referendum must be held 
 38.2   in accordance with subdivision 9, except that the ballot may 
 38.3   state that existing transition revenue authority is being 
 38.4   canceled or is expiring.  In this case, the ballot shall compare 
 38.5   the proposed referendum allowance to the canceled or expiring 
 38.6   transition revenue allowance.  For purposes of this comparison, 
 38.7   the canceled or expiring transition revenue allowance per 
 38.8   adjusted marginal cost pupil unit shall be converted to an 
 38.9   allowance per resident marginal cost pupil unit based on the 
 38.10  district's ratio of adjusted marginal cost pupil units to 
 38.11  resident marginal cost pupil units for the preceding fiscal 
 38.12  year.  The referendum must be held on the first Tuesday after 
 38.13  the first Monday in November.  The notice required under section 
 38.14  275.60 may be modified to read:  "BY VOTING 'YES' ON THIS BALLOT 
 38.15  QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."  
 38.16  Elections under this paragraph must be held in 2007 or earlier.  
 38.17     Sec. 43.  Minnesota Statutes 2004, section 126C.21, 
 38.18  subdivision 4, is amended to read: 
 38.19     Subd. 4.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
 38.20  provisions of any other law to the contrary, the adjusted net 
 38.21  tax capacity used in calculating general education aid may 
 38.22  include only that property that is currently taxable in the 
 38.23  district.  
 38.24     (2) For districts that received payments have revenue under 
 38.25  sections 298.018; 298.225; 229.24 to 298.28, excluding 298.26 
 38.26  and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 
 38.27  298.391 to 298.396; and 298.405; and 477A.15, or any law 
 38.28  imposing a tax upon severed mineral values; or recognized 
 38.29  revenue under section 477A.15;, the general education aid must 
 38.30  be reduced in the final adjustment payment by (1) the difference 
 38.31  between the dollar amount of the payments received revenue 
 38.32  recognized pursuant to those sections, or revenue recognized 
 38.33  under section 477A.15 in for the fiscal year to which the final 
 38.34  adjustment is attributable and, less (2) the amount that was 
 38.35  calculated, pursuant to section 126C.48, subdivision 8, as a 
 38.36  reduction of the levy attributable to the fiscal year to which 
 39.1   the final adjustment is attributable.  If the final adjustment 
 39.2   of a district's general education aid for a fiscal year is a 
 39.3   negative amount because of this clause subdivision, the next 
 39.4   fiscal year's general education aid to that district must be 
 39.5   reduced by this negative amount in the following manner:  there 
 39.6   must be withheld from each scheduled general education aid 
 39.7   payment due the district in such fiscal year, 15 percent of the 
 39.8   total negative amount, until the total negative amount has been 
 39.9   withheld.  The amount reduced from general education aid 
 39.10  pursuant to this clause subdivision must be recognized as reduce 
 39.11  revenue in the fiscal year to which the final adjustment payment 
 39.12  is attributable. 
 39.13     [<b>EFFECTIVE DATE.]</b> This section is effective for revenue for 
 39.14  fiscal year 2006. 
 39.15     Sec. 44.  Minnesota Statutes 2004, section 126C.40, 
 39.16  subdivision 1, is amended to read: 
 39.17     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When an 
 39.18  independent or a special school district or a group of 
 39.19  independent or special school districts finds it economically 
 39.20  advantageous to rent or lease a building or land for any 
 39.21  instructional purposes or, for school storage or furniture 
 39.22  repair, or for administrative space according to paragraph (j), 
 39.23  and it determines that the operating capital revenue authorized 
 39.24  under section 126C.10, subdivision 13, is insufficient for this 
 39.25  purpose, it may apply to the commissioner for permission to make 
 39.26  an additional capital expenditure levy for this purpose.  An 
 39.27  application for permission to levy under this subdivision must 
 39.28  contain financial justification for the proposed levy, the terms 
 39.29  and conditions of the proposed lease, and a description of the 
 39.30  space to be leased and its proposed use. 
 39.31     (b) The criteria for approval of applications to levy under 
 39.32  this subdivision must include:  the reasonableness of the price, 
 39.33  the appropriateness of the space to the proposed activity, the 
 39.34  feasibility of transporting pupils to the leased building or 
 39.35  land, conformity of the lease to the laws and rules of the state 
 39.36  of Minnesota, and the appropriateness of the proposed lease to 
 40.1   the space needs and the financial condition of the district.  
 40.2   The commissioner must not authorize a levy under this 
 40.3   subdivision in an amount greater than 90 percent of the cost to 
 40.4   the district of renting or leasing a building or land for 
 40.5   approved purposes.  The proceeds of this levy must not be used 
 40.6   for custodial or other maintenance services.  A district may not 
 40.7   levy under this subdivision for the purpose of leasing or 
 40.8   renting a district-owned building or site to itself. 
 40.9      (c) For agreements finalized after July 1, 1997, a district 
 40.10  may not levy under this subdivision for the purpose of leasing:  
 40.11  (1) a newly constructed building used primarily for regular 
 40.12  kindergarten, elementary, or secondary instruction; or (2) a 
 40.13  newly constructed building addition or additions used primarily 
 40.14  for regular kindergarten, elementary, or secondary instruction 
 40.15  that contains more than 20 percent of the square footage of the 
 40.16  previously existing building. 
 40.17     (d) Notwithstanding paragraph (b), a district may levy 
 40.18  under this subdivision for the purpose of leasing or renting a 
 40.19  district-owned building or site to itself only if the amount is 
 40.20  needed by the district to make payments required by a lease 
 40.21  purchase agreement, installment purchase agreement, or other 
 40.22  deferred payments agreement authorized by law, and the levy 
 40.23  meets the requirements of paragraph (c).  A levy authorized for 
 40.24  a district by the commissioner under this paragraph may be in 
 40.25  the amount needed by the district to make payments required by a 
 40.26  lease purchase agreement, installment purchase agreement, or 
 40.27  other deferred payments agreement authorized by law, provided 
 40.28  that any agreement include a provision giving the school 
 40.29  districts the right to terminate the agreement annually without 
 40.30  penalty. 
 40.31     (e) The total levy under this subdivision for a district 
 40.32  for any year must not exceed $90 $100 times the resident pupil 
 40.33  units for the fiscal year to which the levy is attributable. 
 40.34     (f) For agreements for which a review and comment have been 
 40.35  submitted to the Department of Education after April 1, 1998, 
 40.36  the term "instructional purpose" as used in this subdivision 
 41.1   excludes expenditures on stadiums. 
 41.2      (g) The commissioner of education may authorize a school 
 41.3   district to exceed the limit in paragraph (e) if the school 
 41.4   district petitions the commissioner for approval.  The 
 41.5   commissioner shall grant approval to a school district to exceed 
 41.6   the limit in paragraph (e) for not more than five years if the 
 41.7   district meets the following criteria: 
 41.8      (1) the school district has been experiencing pupil 
 41.9   enrollment growth in the preceding five years; 
 41.10     (2) the purpose of the increased levy is in the long-term 
 41.11  public interest; 
 41.12     (3) the purpose of the increased levy promotes colocation 
 41.13  of government services; and 
 41.14     (4) the purpose of the increased levy is in the long-term 
 41.15  interest of the district by avoiding over construction of school 
 41.16  facilities. 
 41.17     (h) A school district that is a member of an intermediate 
 41.18  school district may include in its authority under this section 
 41.19  90 percent of the costs associated with leases of administrative 
 41.20  and classroom space for intermediate school district programs.  
 41.21  This authority must not exceed $22.50 $25 times the adjusted 
 41.22  marginal cost pupil units of the member districts.  This 
 41.23  authority is in addition to any other authority authorized under 
 41.24  this section. 
 41.25     (i) In addition to the allowable capital levies in 
 41.26  paragraph (a), a district that is a member of the "Technology 
 41.27  and Information Education Systems" data processing joint board, 
 41.28  that finds it economically advantageous to enter into a lease 
 41.29  purchase agreement for a building for a group of school 
 41.30  districts or special school districts for staff development 
 41.31  purposes, may levy for its portion of lease costs attributed to 
 41.32  the district within the total levy limit in paragraph (e). 
 41.33     (j) A school district may lease administrative space under 
 41.34  this section if the district can demonstrate to the 
 41.35  commissioner's satisfaction that the administrative space is 
 41.36  less expensive than instructional space that the district would 
 42.1   otherwise lease. 
 42.2      Sec. 45.  Minnesota Statutes 2004, section 126C.43, 
 42.3   subdivision 2, is amended to read: 
 42.4      Subd. 2.  [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 
 42.5   FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 
 42.6   levy 90 percent of the amount exceeding $10 times the district's 
 42.7   adjusted marginal cost pupil units for the fiscal year ending in 
 42.8   the year before the year the levy is certified necessary (i) to 
 42.9   pay the district's obligations under section 268.052, 
 42.10  subdivision 1, and (ii) to pay for job placement services 
 42.11  offered to employees who may become eligible for benefits 
 42.12  pursuant to section 268.085 for the fiscal year the levy is 
 42.13  certified. 
 42.14     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 42.15  payable in 2006.  
 42.16     Sec. 46.  Minnesota Statutes 2004, section 126C.43, 
 42.17  subdivision 3, is amended to read: 
 42.18     Subd. 3.  [TAX LEVY FOR JUDGMENT.] A district may levy 90 
 42.19  percent of the amount exceeding $10 times the district's 
 42.20  adjusted marginal cost pupil units for the fiscal year ending in 
 42.21  the year before the year the levy is certified necessary to pay 
 42.22  judgments against the district under section 123B.25 that became 
 42.23  final after the date the district certified its proposed levy in 
 42.24  the previous year.  With the approval of the commissioner, a 
 42.25  district may spread this levy over a period not to exceed three 
 42.26  years.  Upon approval through the adoption of a resolution by 
 42.27  each of an intermediate district's member school district 
 42.28  boards, a member school district may include its proportionate 
 42.29  share of the costs of a judgment against an intermediate school 
 42.30  district that became final under section 123B.25 after the date 
 42.31  that the earliest member school district certified its proposed 
 42.32  levy in the previous year.  With the approval of the 
 42.33  commissioner, an intermediate school district member school 
 42.34  district may spread this levy over a period not to exceed three 
 42.35  years. 
 42.36     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 43.1   payable in 2006.  
 43.2      Sec. 47.  Minnesota Statutes 2004, section 126C.44, is 
 43.3   amended to read: 
 43.4      126C.44 [SAFE SCHOOLS LEVY.] 
 43.5      Each district may make a levy on all taxable property 
 43.6   located within the district for the purposes specified in this 
 43.7   section.  The maximum amount which may be levied for all costs 
 43.8   under this section shall be equal to $27 $30 multiplied by the 
 43.9   district's adjusted marginal cost pupil units for the school 
 43.10  year.  The proceeds of the levy must be used for directly 
 43.11  funding the following purposes or for reimbursing the cities and 
 43.12  counties who contract with the district for the following 
 43.13  purposes:  (1) to pay the costs incurred for the salaries, 
 43.14  benefits, and transportation costs of peace officers and 
 43.15  sheriffs for liaison in services in the district's schools; (2) 
 43.16  to pay the costs for a drug abuse prevention program as defined 
 43.17  in section 609.101, subdivision 3, paragraph (e), in the 
 43.18  elementary schools; (3) to pay the costs for a gang resistance 
 43.19  education training curriculum in the district's schools; (4) to 
 43.20  pay the costs for security in the district's schools and on 
 43.21  school property; or (5) to pay the costs incurred for the 
 43.22  salaries and benefits of school counselors; or (6) to pay the 
 43.23  costs for other crime prevention, drug abuse, student and staff 
 43.24  safety, and violence prevention measures taken by the school 
 43.25  district.  The district must initially attempt to contract for 
 43.26  services to be provided by peace officers or sheriffs with the 
 43.27  police department of each city or the sheriff's department of 
 43.28  the county within the district containing the school receiving 
 43.29  the services.  If a local police department or a county 
 43.30  sheriff's department does not wish to provide the necessary 
 43.31  services, the district may contract for these services with any 
 43.32  other police or sheriff's department located entirely or 
 43.33  partially within the school district's boundaries.  The levy 
 43.34  authorized under this section is not included in determining the 
 43.35  school district's levy limitations. 
 43.36     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
 44.1   payable in 2006. 
 44.2      Sec. 48.  Minnesota Statutes 2004, section 126C.48, is 
 44.3   amended by adding a subdivision to read: 
 44.4      Subd. 9.  [REVERSE REFERENDUM.] (a) At the time a district 
 44.5   certifies its proposed levy to the county auditor according to 
 44.6   section 275.065, subdivision 1, the school board must certify 
 44.7   the amount of deferred maintenance revenue per pupil unit that 
 44.8   the board intends to raise.  If the board certifies an amount 
 44.9   for fiscal year 2007, the amount certified is subject to reverse 
 44.10  referendum under paragraphs (b) and (c).  If the amount 
 44.11  certified for fiscal year 2008 and later exceeds the amount 
 44.12  certified for the previous fiscal year, excluding any amount 
 44.13  disallowed by reverse referendum, the increase over the amount 
 44.14  certified for the previous fiscal year excluding any amount 
 44.15  disallowed by reverse referendum, is subject to reverse 
 44.16  referendum under paragraphs (b) and (c). 
 44.17     (b) If a district certifies revenue under paragraph (a) 
 44.18  that is subject to reverse referendum, the district must publish 
 44.19  notice of the intended increase subject to reverse referendum by 
 44.20  October 10.  The notice must include the amount of the revenue 
 44.21  increase per adjusted pupil unit and the property tax increase 
 44.22  in annual dollars for typical residential homesteads, 
 44.23  agricultural homesteads, apartments, and commercial-industrial 
 44.24  property within the district. 
 44.25     (c) Revenue tentatively authorized by the board under this 
 44.26  subdivision becomes authorized unless a petition signed by more 
 44.27  than 15 percent of the registered voters of the district is 
 44.28  filed with the school board within 30 days of the publication of 
 44.29  notice.  The percentage is to be determined with reference to 
 44.30  the number of registered voters in the district on the last day 
 44.31  before the petition is filed with the board.  The petition must 
 44.32  call for a referendum on the question of whether to increase the 
 44.33  revenue.  The approval of 50 percent plus one of those voting on 
 44.34  the question is required to pass a referendum authorized by this 
 44.35  section.  The referendum must be held on the last Tuesday in 
 44.36  January. 
 45.1      (d) The ballot must state that the board proposes to 
 45.2   increase its deferred maintenance revenue, the maximum amount of 
 45.3   the increased revenue per pupil, and the estimated tax rate as a 
 45.4   percentage of net tax capacity in the first year it is to be 
 45.5   levied.  The ballot shall contain a textual portion with the 
 45.6   information required in this paragraph and a question stating 
 45.7   substantially the following:  "Shall the increase in revenue 
 45.8   proposed by the Board of ......., Independent School District 
 45.9   No. ......., be approved?" 
 45.10     (e) The district's final and deferred maintenance revenue 
 45.11  per pupil unit for a fiscal year must not exceed the sum of the 
 45.12  amounts certified by the district according to paragraph (a).  A 
 45.13  district may elect to reduce the amount certified according to 
 45.14  paragraph (a) at the time of final levy certification.  If the 
 45.15  criteria for a reverse referendum have been met, but the amount 
 45.16  certified is reduced to a level that would not require a reverse 
 45.17  referendum, the reverse referendum is canceled.  
 45.18     Sec. 49.  Minnesota Statutes 2004, section 126C.48, 
 45.19  subdivision 2, is amended to read: 
 45.20     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
 45.21  each year each district must notify the commissioner of the 
 45.22  proposed levies in compliance with the levy limitations of this 
 45.23  chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, 
 45.24  and 136D.  By January 15 7 of each year each district must 
 45.25  notify the commissioner of the final levies certified.  The 
 45.26  commissioner shall prescribe the form of these notifications and 
 45.27  may request any additional information necessary to compute 
 45.28  certified levy amounts. 
 45.29     Sec. 50.  Minnesota Statutes 2004, section 126C.48, 
 45.30  subdivision 8, is amended to read: 
 45.31     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
 45.32  Reductions in levies pursuant to subdivision 1 must be made 
 45.33  prior to the reductions in clause (2). 
 45.34     (2) Notwithstanding any other law to the contrary, 
 45.35  districts which received payments that have revenue pursuant to 
 45.36  sections 298.018; 298.225; 298.24 to 298.28, except an amount 
 46.1   distributed under section sections 298.26; 298.28, subdivision 
 46.2   4, paragraph paragraphs (c), clause (ii), and (d); 298.34 to 
 46.3   298.39; 298.391 to 298.396; 298.405; 477A.15; and any law 
 46.4   imposing a tax upon severed mineral values; or recognized 
 46.5   revenue under section 477A.15 must not include a portion of 
 46.6   these aids in their permissible levies pursuant to those 
 46.7   sections, but instead must reduce the permissible levies 
 46.8   authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
 46.9   124A, 124D, 125A, and 127A by the greater of the following: 95 
 46.10  percent of the previous year's revenue specified under this 
 46.11  clause. 
 46.12     (a) an amount equal to 50 percent of the total dollar 
 46.13  amount of the payments received pursuant to those sections or 
 46.14  revenue recognized under section 477A.15 in the previous fiscal 
 46.15  year; or 
 46.16     (b) an amount equal to the total dollar amount of the 
 46.17  payments received pursuant to those sections or revenue 
 46.18  recognized under section 477A.15 in the previous fiscal year 
 46.19  less the product of the same dollar amount of payments or 
 46.20  revenue times five percent. 
 46.21     For levy year 2002 only, 77 percent of the amounts 
 46.22  distributed under section 298.225 and 298.28, and 100 percent of 
 46.23  the amounts distributed under sections 298.018; 298.34 to 
 46.24  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
 46.25  upon severed mineral values, or recognized revenue under section 
 46.26  477A.15, shall be used for purposes of the calculations under 
 46.27  this paragraph.  For levy year 2003 only, the levy reductions 
 46.28  under this subdivision must be calculated as if section 298.28, 
 46.29  subdivision 4, paragraph (f), did not apply for the 2003 
 46.30  distribution. 
 46.31     (3) The amount of any voter approved referendum, facilities 
 46.32  down payment, and debt levies shall not be reduced by more than 
 46.33  50 percent under this subdivision.  In administering this 
 46.34  paragraph, the commissioner shall first reduce the nonvoter 
 46.35  approved levies of a district; then, if any payments, severed 
 46.36  mineral value tax revenue or recognized revenue under paragraph 
 47.1   (2) remains, the commissioner shall reduce any voter approved 
 47.2   referendum levies authorized under section 126C.17; then, if any 
 47.3   payments, severed mineral value tax revenue or recognized 
 47.4   revenue under paragraph (2) remains, the commissioner shall 
 47.5   reduce any voter approved facilities down payment levies 
 47.6   authorized under section 123B.63 and then, if any payments, 
 47.7   severed mineral value tax revenue or recognized revenue under 
 47.8   paragraph (2) remains, the commissioner shall reduce any voter 
 47.9   approved debt levies.  
 47.10     (4) Before computing the reduction pursuant to this 
 47.11  subdivision of the health and safety levy authorized by sections 
 47.12  123B.57 and 126C.40, subdivision 5, the commissioner shall 
 47.13  ascertain from each affected school district the amount it 
 47.14  proposes to levy under each section or subdivision.  The 
 47.15  reduction shall be computed on the basis of the amount so 
 47.16  ascertained. 
 47.17     (5) To the extent the levy reduction calculated under 
 47.18  paragraph (2) exceeds the limitation in paragraph (3), an amount 
 47.19  equal to the excess must be distributed from the school 
 47.20  district's distribution under sections 298.225, 298.28, and 
 47.21  477A.15 in the following year to the cities and townships within 
 47.22  the school district in the proportion that their taxable net tax 
 47.23  capacity within the school district bears to the taxable net tax 
 47.24  capacity of the school district for property taxes payable in 
 47.25  the year prior to distribution.  No city or township shall 
 47.26  receive a distribution greater than its levy for taxes payable 
 47.27  in the year prior to distribution.  The commissioner of revenue 
 47.28  shall certify the distributions of cities and towns under this 
 47.29  paragraph to the county auditor by September 30 of the year 
 47.30  preceding distribution.  The county auditor shall reduce the 
 47.31  proposed and final levies of cities and towns receiving 
 47.32  distributions by the amount of their distribution.  
 47.33  Distributions to the cities and towns shall be made at the times 
 47.34  provided under section 298.27. 
 47.35     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 47.36  fiscal year 2006. 
 48.1      Sec. 51.  Minnesota Statutes 2004, section 127A.45, 
 48.2   subdivision 11, is amended to read: 
 48.3      Subd. 11.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
 48.4   hundred percent of the aid for the previous fiscal year must be 
 48.5   paid in the current year for the following aids:  
 48.6   telecommunications/Internet access equity and according to 
 48.7   section 125B.26, special education special pupil aid according 
 48.8   to section 125A.75, subdivision 3, aid for litigation costs 
 48.9   according to section 125A.75, subdivision 8, aid for 
 48.10  court-placed special education expenses according to section 
 48.11  125A.79, subdivision 4, and aid for special education 
 48.12  out-of-state tuition according to section 125A.79, subdivision 
 48.13  8, and shared time aid according to section 126C.01, subdivision 
 48.14  7. 
 48.15     Sec. 52.  Minnesota Statutes 2004, section 127A.49, 
 48.16  subdivision 2, is amended to read: 
 48.17     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
 48.18  sections 270.07, 375.192, or otherwise, the net tax capacity of 
 48.19  any district for any taxable year is changed after the taxes for 
 48.20  that year have been spread by the county auditor and the local 
 48.21  tax rate as determined by the county auditor based upon the 
 48.22  original net tax capacity is applied upon the changed net tax 
 48.23  capacities, the county auditor shall, prior to February 1 of 
 48.24  each year, certify to the commissioner of education the amount 
 48.25  of any resulting net revenue loss that accrued to the district 
 48.26  during the preceding year.  Each year, the commissioner shall 
 48.27  pay an abatement adjustment to the district in an amount 
 48.28  calculated according to the provisions of this subdivision.  
 48.29  This amount shall be deducted from the amount of the levy 
 48.30  authorized by section 126C.46.  The amount of the abatement 
 48.31  adjustment must be the product of:  
 48.32     (1) the net revenue loss as certified by the county 
 48.33  auditor, times 
 48.34     (2) the ratio of:  
 48.35     (i) the sum of the amounts of the district's certified levy 
 48.36  in the third preceding year according to the following:  
 49.1      (A) section 123B.57, if the district received health and 
 49.2   safety aid according to that section for the second preceding 
 49.3   year; 
 49.4      (B) section 124D.20, if the district received aid for 
 49.5   community education programs according to that section for the 
 49.6   second preceding year; 
 49.7      (C) section 124D.135, subdivision 3, if the district 
 49.8   received early childhood family education aid according to 
 49.9   section 124D.135 for the second preceding year; and 
 49.10     (D) section 126C.17, subdivision 6, if the district 
 49.11  received referendum equalization aid according to that section 
 49.12  for the second preceding year; to 
 49.13     (ii) the total amount of the district's certified levy in 
 49.14  the third preceding December, plus or minus auditor's 
 49.15  adjustments. 
 49.16     Sec. 53.  Minnesota Statutes 2004, section 127A.49, 
 49.17  subdivision 3, is amended to read: 
 49.18     Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
 49.19  tax increment is made to a district pursuant to section sections 
 49.20  469.176, subdivision 2, and 469.177, subdivision 9, or upon 
 49.21  decertification of a tax increment district, the school 
 49.22  district's aid and levy limitations must be adjusted for the 
 49.23  fiscal year in which the excess tax increment is paid under the 
 49.24  provisions of this subdivision. 
 49.25     (b) An amount must be subtracted from the district's aid 
 49.26  for the current fiscal year equal to the product of: 
 49.27     (1) the amount of the payment of excess tax increment to 
 49.28  the district, times 
 49.29     (2) the ratio of: 
 49.30     (i) the sum of the amounts of the district's certified levy 
 49.31  for the fiscal year in which the excess tax increment is paid 
 49.32  according to the following: 
 49.33     (A) section 123B.57, if the district received health and 
 49.34  safety aid according to that section for the second preceding 
 49.35  year; 
 49.36     (B) section 124D.20, if the district received aid for 
 50.1   community education programs according to that section for the 
 50.2   second preceding year; 
 50.3      (C) section 124D.135, subdivision 3, if the district 
 50.4   received early childhood family education aid according to 
 50.5   section 124D.135 for the second preceding year; and 
 50.6      (D) section 126C.17, subdivision 6, if the district 
 50.7   received referendum equalization aid according to that section 
 50.8   for the second preceding year; to 
 50.9      (ii) the total amount of the district's certified levy for 
 50.10  the fiscal year, plus or minus auditor's adjustments. 
 50.11     (c) An amount must be subtracted from the school district's 
 50.12  levy limitation for the next levy certified equal to the 
 50.13  difference between: 
 50.14     (1) the amount of the distribution of excess increment; and 
 50.15     (2) the amount subtracted from aid pursuant to clause (a). 
 50.16     If the aid and levy reductions required by this subdivision 
 50.17  cannot be made to the aid for the fiscal year specified or to 
 50.18  the levy specified, the reductions must be made from aid for 
 50.19  subsequent fiscal years, and from subsequent levies.  The school 
 50.20  district must use the payment of excess tax increment to replace 
 50.21  the aid and levy revenue reduced under this subdivision. 
 50.22     (d) This subdivision applies only to the total amount of 
 50.23  excess increments received by a district for a calendar year 
 50.24  that exceeds $25,000. 
 50.25     Sec. 54.  Minnesota Statutes 2004, section 127A.50, 
 50.26  subdivision 5, is amended to read: 
 50.27     Subd. 5.  [ADJUSTMENT PHASE-OUT AND TERMINATION.] All 
 50.28  adjustments under this section terminate on June 30, 2020.  For 
 50.29  fiscal year 2007 and later, the adjustment under this section 
 50.30  equals 75 percent of the adjustment for fiscal year 2006.  
 50.31     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
 50.32  fiscal year 2007.  
 50.33     Sec. 55.  Minnesota Statutes 2004, section 275.14, is 
 50.34  amended to read: 
 50.35     275.14 [CENSUS.] 
 50.36     For the purposes of sections 275.124 to 275.16, the 
 51.1   population of a city shall be that established by the last 
 51.2   federal census, by a special census taken by the United States 
 51.3   Bureau of the Census, by an estimate made by the Metropolitan 
 51.4   Council, or by the state demographer made according to section 
 51.5   4A.02, whichever has the latest stated date of count or 
 51.6   estimate, before July 2 of the current levy year.  The 
 51.7   population of a school district must be as certified by the 
 51.8   Department of Education from the most recent federal census.  In 
 51.9   any year in which no federal census is taken pursuant to law in 
 51.10  any school district affected by sections 275.124 to 
 51.11  275.16 124D.20 and 124D.531 a population estimate may be made 
 51.12  and submitted to the state demographer for approval as 
 51.13  hereinafter provided.  The school board of a school district, in 
 51.14  case it desires a population estimate, shall pass a resolution 
 51.15  by July 1 containing a current estimate of the population of the 
 51.16  school district and shall submit the resolution to the state 
 51.17  demographer.  The resolution shall describe the criteria on 
 51.18  which the estimate is based and shall be in a form and 
 51.19  accompanied by the data prescribed by the state demographer.  
 51.20  The state demographer shall determine whether or not the 
 51.21  criteria and process described in the resolution provide a 
 51.22  reasonable basis for the population estimate and shall inform 
 51.23  the school district of that determination within 30 days of 
 51.24  receipt of the resolution.  If the state demographer determines 
 51.25  that the criteria and process described in the resolution do not 
 51.26  provide a reasonable basis for the population estimate, the 
 51.27  resolution shall be of no effect.  If the state demographer 
 51.28  determines that the criteria and process do provide a reasonable 
 51.29  basis for the population estimate, the estimate shall be treated 
 51.30  as the population of the school district for the purposes of 
 51.31  sections 275.124 to 275.16 124D.20 and 124D.531 until the 
 51.32  population of the school district has been established by the 
 51.33  next federal census or until a more current population estimate 
 51.34  is prepared and approved as provided herein, whichever occurs 
 51.35  first.  The state demographer shall establish guidelines for 
 51.36  acceptable population estimation criteria and processes.  The 
 52.1   state demographer shall issue advisory opinions upon request in 
 52.2   writing to cities or school districts as to proposed criteria 
 52.3   and processes prior to their implementation in an estimation.  
 52.4   The advisory opinion shall be final and binding upon the 
 52.5   demographer unless the demographer can show cause why it should 
 52.6   not be final and binding.  
 52.7      In the event that a census tract employed in taking a 
 52.8   federal or local census overlaps two or more school districts, 
 52.9   the county auditor shall, on the basis of the best information 
 52.10  available, allocate the population of said census tract to the 
 52.11  school districts involved.  
 52.12     The term "council," as used in sections 275.124 to 275.16, 
 52.13  means any board or body, whether composed of one or more 
 52.14  branches, authorized to make ordinances for the government of a 
 52.15  city within this state.  
 52.16     Sec. 56.  Minnesota Statutes 2004, section 275.16, is 
 52.17  amended to read: 
 52.18     275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 
 52.19     If any such municipality shall return to the county auditor 
 52.20  a levy greater than permitted by chapters 123A, 123B, 124D, 
 52.21  126C, and 136C, and 136D, sections 275.124 to 275.16, and 275.70 
 52.22  to 275.74, such county auditor shall extend only such amount of 
 52.23  taxes as the limitations herein prescribed will permit; 
 52.24  provided, if such levy shall include any levy for the payment of 
 52.25  bonded indebtedness or judgments, such levies for bonded 
 52.26  indebtedness or judgments shall be extended in full, and the 
 52.27  remainder of the levies shall be reduced so that the total 
 52.28  thereof, including levies for bonds and judgments, shall not 
 52.29  exceed such amount as the limitations herein prescribed will 
 52.30  permit. 
 52.31     Sec. 57.  Minnesota Statutes 2004, section 469.177, 
 52.32  subdivision 9, is amended to read: 
 52.33     Subd. 9.  [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET 
 52.34  TAX CAPACITY.] (a) If the amount of tax paid on captured net tax 
 52.35  capacity exceeds the amount of tax increment, the county auditor 
 52.36  shall distribute the excess to the municipality, county, and 
 53.1   school district as follows:  each governmental unit's share of 
 53.2   the excess equals 
 53.3      (1) the total amount of the excess for the tax increment 
 53.4   financing district, multiplied by 
 53.5      (2) a fraction, the numerator of which is the current local 
 53.6   tax rate of the governmental unit less the governmental unit's 
 53.7   local tax rate for the year the original local tax rate for the 
 53.8   district was certified (in no case may this amount be less than 
 53.9   zero) and the denominator of which is the sum of the numerators 
 53.10  for the municipality, county, and school district. 
 53.11  If the entire increase in the local tax rate is attributable to 
 53.12  a taxing district, other than the municipality, county, or 
 53.13  school district, then the excess must be distributed to the 
 53.14  municipality, county, and school district in proportion to their 
 53.15  respective local tax rates. 
 53.16     (b) The amounts distributed shall be deducted in computing 
 53.17  the levy limits of the taxing district for the succeeding 
 53.18  taxable year.  In the case of a school district, only the 
 53.19  proportion of the excess taxes attributable to unequalized 
 53.20  levies that are subject to a fixed dollar amount levy limit 
 53.21  shall be deducted from the levy limit. 
 53.22     (c) In the case of distributions to a school district that 
 53.23  are attributable to state equalized levies, the county auditor 
 53.24  shall report amounts distributed to the commissioner of 
 53.25  education in the same manner as provided for excess increments 
 53.26  under section 469.176, subdivision 2, and the distribution shall 
 53.27  be deducted from the school district's state aid payments and 
 53.28  levy limitation according to section 127A.49, subdivision 3. 
 53.29     Sec. 58.  [KINDERGARTEN REPORTING.] 
 53.30     Notwithstanding Minnesota Statutes, sections 120A.05, 
 53.31  subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 
 53.32  1, pupils four or five years of age on September 1 of the 
 53.33  calendar year in which the school year commences and enrolled in 
 53.34  a prekindergarten program implemented by the district before 
 53.35  July 1, 2003, may be reported as kindergarten pupils under 
 53.36  Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 
 54.1   years 2004 and earlier. 
 54.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 54.3   following final enactment and applies to fiscal years 2004 and 
 54.4   earlier. 
 54.5      Sec. 59.  [TRANSITION REVENUE ADJUSTMENTS.] 
 54.6      For taxes payable in 2006, a district may levy an amount 
 54.7   equal to the increase in the district's transition revenue for 
 54.8   fiscal year 2006 under Minnesota Statutes, section 126C.10, 
 54.9   subdivision 31, paragraphs (c) and (d). 
 54.10     Sec. 60.  [FISCAL YEAR 2006 COMPENSATORY REVENUE FOR 
 54.11  REFUGEES.] 
 54.12     Notwithstanding Minnesota Statutes, section 126C.05, 
 54.13  subdivisions 3 and 16, refugees from the Wat Krabok Refugee Camp 
 54.14  in Thailand who were not enrolled in a Minnesota public school 
 54.15  on October 1, 2004, but who were enrolled in a Minnesota public 
 54.16  school on June 1, 2005, must be included in the calculation of 
 54.17  compensatory revenue pupil units for fiscal year 2006. 
 54.18     Sec. 61.  [ALTERNATIVE COMPENSATION REVENUE GUARANTEE.] 
 54.19     Notwithstanding Minnesota Statutes, sections 122A.415, 
 54.20  subdivision 1, and 126C.10, subdivision 34, paragraphs (a) and 
 54.21  (b), a school district that received alternative compensation 
 54.22  aid for fiscal year 2005, but does not qualify for alternative 
 54.23  compensation revenue for all sites in the district for fiscal 
 54.24  year 2006 or 2007, shall receive additional basic alternative 
 54.25  compensation aid for that fiscal year equal to the lesser of the 
 54.26  amount of alternative compensation aid it received for fiscal 
 54.27  year 2005 or the amount it would have received for that fiscal 
 54.28  year under Minnesota Statutes 2004, section 122A.415, 
 54.29  subdivision 1, for teachers at sites not qualifying for 
 54.30  alternative compensation revenue for that fiscal year, if the 
 54.31  district submits a timely application and the commissioner 
 54.32  determines that the district continues to implement an 
 54.33  alternative professional pay system, consistent with its 
 54.34  application under Minnesota Statutes 2004, section 122A.415, for 
 54.35  fiscal year 2005.  The additional basic alternative compensation 
 54.36  aid under this section must not be used in calculating the 
 55.1   alternative compensation levy under Minnesota Statutes, section 
 55.2   126C.10, subdivision 35.  This section applies only to fiscal 
 55.3   years 2006 and 2007 and does not apply to later fiscal years.  
 55.4      Sec. 62.  [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 
 55.5      For taxes payable in 2006 through 2010, a school district 
 55.6   may levy an amount, not to exceed in the aggregate, $30,000 
 55.7   times the number of Carpenter school buses in its fleet as of 
 55.8   January 1, 2004, that have been determined to have potentially 
 55.9   defective welds and are subject to limitations imposed by the 
 55.10  Department of Public Safety. 
 55.11     Sec. 63.  [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 
 55.12  PILOT PROGRAM.] 
 55.13     Subdivision 1.  [PILOT PROGRAM CREATED.] A three-year pilot 
 55.14  program is created to allow a school district to allocate 
 55.15  compensatory revenue received under Minnesota Statutes, section 
 55.16  126C.10, subdivision 3, among its school buildings according to 
 55.17  each building's school performance measures. 
 55.18     Subd. 2.  [APPLICATION PROCESS.] A school district that 
 55.19  seeks to allocate its compensatory revenue to school sites based 
 55.20  on student performance may submit an application to the 
 55.21  commissioner of education by June 1, 2005.  The application must 
 55.22  include a written resolution approved by the school board that: 
 55.23  (1) identifies the test results that will be used to assess 
 55.24  student performance; (2) describes the method for distribution 
 55.25  of compensatory revenue to the school sites; and (3) summarizes 
 55.26  the evaluation procedure the district will use to determine if 
 55.27  the redistribution of compensatory revenue improves overall 
 55.28  student performance.  The application must be submitted in the 
 55.29  form and manner specified by the commissioner. 
 55.30     Subd. 3.  [COMMISSIONER SELECTION.] The commissioner may 
 55.31  select up to five school districts to participate in the pilot 
 55.32  program.  The commissioner must notify the selected school 
 55.33  districts by July 1, 2005. 
 55.34     Subd. 4.  [REPORT.] The commissioner of education must 
 55.35  submit a report by February 15, 2008, to the education 
 55.36  committees of the legislature evaluating the effectiveness of 
 56.1   the pilot program. 
 56.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 56.3   following final enactment. 
 56.4      Sec. 64.  [FISCAL YEAR 2006 ONLY.] 
 56.5      For fiscal year 2006 only, the increases in equity revenue 
 56.6   and operating capital revenue under Minnesota Statutes, section 
 56.7   126C.10, are payable entirely in state aid. 
 56.8      Sec. 65.  [APPROPRIATIONS.] 
 56.9      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 56.10  indicated in this section are appropriated from the general fund 
 56.11  to the Department of Education for the fiscal years designated.  
 56.12     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 56.13  aid under Minnesota Statutes, section 126C.13, subdivision 4: 
 56.14      $5,135,844,000     .....     2006
 56.15      $5,359,019,000     .....     2007
 56.16     The 2006 appropriation includes $784,978,000 for 2005 and 
 56.17  $4,350,866,000 for 2006. 
 56.18     The 2007 appropriation includes $814,640,000 for 2006 and 
 56.19  $4,544,379,000 for 2007.  
 56.20     Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
 56.21  referendum tax base replacement aid under Minnesota Statutes, 
 56.22  section 126C.17, subdivision 7a: 
 56.23       $8,704,000     .....     2006 
 56.24       $8,704,000     .....     2007 
 56.25     The 2006 appropriation includes $1,366,000 for 2005 and 
 56.26  $7,338,000 for 2006.  
 56.27     The 2007 appropriation includes $1,366,000 for 2006 and 
 56.28  $7,338,000 for 2007. 
 56.29     Subd. 4.  [ENROLLMENT OPTIONS TRANSPORTATION.] For 
 56.30  transportation of pupils attending postsecondary institutions 
 56.31  under Minnesota Statutes, section 124D.09, or for transportation 
 56.32  of pupils attending nonresident districts under Minnesota 
 56.33  Statutes, section 124D.03: 
 56.34       $55,000        .....     2006
 56.35       $55,000        .....     2007
 56.36     Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
 57.1   Minnesota Statutes, section 127A.49:  
 57.2        $903,000       .....     2006 
 57.3        $955,000       .....     2007 
 57.4      The 2006 appropriation includes $187,000 for 2005 and 
 57.5   $716,000 for 2006.  
 57.6      The 2007 appropriation includes $133,000 for 2006 and 
 57.7   $822,000 for 2007.  
 57.8      Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
 57.9   consolidating under Minnesota Statutes, section 123A.485: 
 57.10       $253,000        .....     2007 
 57.11     The 2007 appropriation includes $0 for 2006 and $253,000 
 57.12  for 2007. 
 57.13     Subd. 7.  [NONPUBLIC PUPIL EDUCATION AID.] For nonpublic 
 57.14  pupil education aid under Minnesota Statutes, sections 123B.87 
 57.15  and 123B.40 to 123B.43: 
 57.16       $15,324,000    .....     2006 
 57.17       $16,327,000    .....     2007 
 57.18     The 2006 appropriation includes $2,305,000 for 2005 and 
 57.19  $13,019,000 for 2006. 
 57.20     The 2007 appropriation includes $2,424,000 for 2006 and 
 57.21  $13,903,000 for 2007. 
 57.22     Subd. 8.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 57.23  pupil transportation aid under Minnesota Statutes, section 
 57.24  123B.92, subdivision 9: 
 57.25       $21,287,000     .....     2006 
 57.26       $22,670,000     .....     2007 
 57.27     The 2006 appropriation includes $3,274,000 for 2005 and 
 57.28  $18,013,000 for 2006. 
 57.29     The 2007 appropriation includes $3,354,000 for 2006 and 
 57.30  $19,316,000 for 2007. 
 57.31     Subd. 9.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
 57.32  Independent School District No. 690, Warroad, to operate the 
 57.33  Angle Inlet School: 
 57.34       $50,000        .....     2006 
 57.35       $50,000        .....     2007 
 57.36     Subd. 10.  [DECLINING PUPIL AID; ALBERT LEA.] For declining 
 58.1   pupil aid to Independent School District No. 241, Albert Lea: 
 58.2        $75,000         .....     2006
 58.3      Subd. 11.  [DECLINING PUPIL AID; MESABI EAST.] For 
 58.4   declining pupil aid to Independent School District No. 2711, 
 58.5   Mesabi East: 
 58.6        $50,000         .....     2006
 58.7      Subd. 12.  [DECLINING PUPIL AID; ROSEAU.] For declining 
 58.8   pupil aid to Independent School District No. 682, Roseau: 
 58.9        $10,000         .....     2006
 58.10     Sec. 66.  [REPEALER.] 
 58.11     Subdivision 1.  [JULY 1, 2005.] Minnesota Statutes 2004, 
 58.12  sections 122A.415, subdivision 2; 123B.05; 123B.83, subdivision 
 58.13  1; and 126C.42, subdivisions 1 and 4, are repealed. 
 58.14     Subd. 2.  [FISCAL YEAR 2007.] Minnesota Statutes 2004, 
 58.15  section 126C.12, is repealed for revenue for fiscal year 2007. 
 58.16                             ARTICLE 2 
 58.17                      EXCELLENCE IN EDUCATION 
 58.18     Section 1.  Minnesota Statutes 2004, section 13.32, 
 58.19  subdivision 1, is amended to read: 
 58.20     Subdivision 1.  [DEFINITIONS.] As used in this section: 
 58.21     (a) "Continuing truant" means a student under section 
 58.22  260A.02, subdivision 3, who is absent without valid excuse from 
 58.23  instruction in a school.  
 58.24     (b) "Educational data" means data on individuals maintained 
 58.25  by a public educational agency or institution or by a person 
 58.26  acting for the agency or institution which relates to a student. 
 58.27     Records of instructional personnel which are in the sole 
 58.28  possession of the maker thereof and are not accessible or 
 58.29  revealed to any other individual except a substitute teacher, 
 58.30  and are destroyed at the end of the school year, shall not be 
 58.31  deemed to be government data.  
 58.32     Records of a law enforcement unit of a public educational 
 58.33  agency or institution which are maintained apart from education 
 58.34  data and are maintained solely for law enforcement purposes, and 
 58.35  are not disclosed to individuals other than law enforcement 
 58.36  officials of the jurisdiction are not educational data; 
 59.1   provided, that education records maintained by the educational 
 59.2   agency or institution are not disclosed to the personnel of the 
 59.3   law enforcement unit.  The University of Minnesota police 
 59.4   department is a law enforcement agency for purposes of section 
 59.5   13.82 and other sections of Minnesota Statutes dealing with law 
 59.6   enforcement records.  Records of organizations providing 
 59.7   security services to a public educational agency or institution 
 59.8   must be administered consistent with section 13.861. 
 59.9      Records relating to a student who is employed by a public 
 59.10  educational agency or institution which are made and maintained 
 59.11  in the normal course of business, relate exclusively to the 
 59.12  individual in that individual's capacity as an employee, and are 
 59.13  not available for use for any other purpose are classified 
 59.14  pursuant to section 13.43.  
 59.15     (b) (c) "Habitual truant" means a student under section 
 59.16  260C.007, subdivision 19, who is absent without lawful excuse 
 59.17  from attendance at school.  
 59.18     (d) "Juvenile justice system" includes criminal justice 
 59.19  agencies and the judiciary when involved in juvenile justice 
 59.20  activities. 
 59.21     (c) (e) "Student" means an individual currently or formerly 
 59.22  enrolled or registered, applicants for enrollment or 
 59.23  registration at a public educational agency or institution, or 
 59.24  individuals who receive shared time educational services from a 
 59.25  public agency or institution. 
 59.26     (d) (f) "Substitute teacher" means an individual who 
 59.27  performs on a temporary basis the duties of the individual who 
 59.28  made the record, but does not include an individual who 
 59.29  permanently succeeds to the position of the maker of the record. 
 59.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 59.31     Sec. 2.  Minnesota Statutes 2004, section 13.32, 
 59.32  subdivision 8, is amended to read: 
 59.33     Subd. 8.  [ACCESS BY JUVENILE JUSTICE SYSTEM.] (a) Upon 
 59.34  request, the following education data shall be disclosed under 
 59.35  subdivision 3, clause (i), to the juvenile justice system:  a 
 59.36  student's full name, home address, telephone number, date of 
 60.1   birth; a student's school schedule, daily attendance record, and 
 60.2   photographs, if any; and parents' names, home addresses, and 
 60.3   telephone numbers.  
 60.4      (b) In addition, the existence of the following data about 
 60.5   a student may be disclosed under subdivision 3, clause (i): 
 60.6      (1) use of a controlled substance, alcohol, or tobacco; 
 60.7      (2) assaultive or threatening conduct that could result in 
 60.8   dismissal from school under section 121A.45, subdivision 2, 
 60.9   clause (b) or (c); 
 60.10     (3) possession or use of weapons or look-alike weapons; 
 60.11     (4) theft; or 
 60.12     (5) vandalism or other damage to property. 
 60.13     Any request for access to data under this paragraph must 
 60.14  contain an explanation of why access to the data is necessary to 
 60.15  serve the student. 
 60.16     (c) A principal or chief administrative officer of a school 
 60.17  who receives a request to disclose information about a student 
 60.18  to the juvenile justice system under paragraph (b) shall, to the 
 60.19  extent permitted by federal law, notify the student's parent or 
 60.20  guardian by certified mail of the request to disclose 
 60.21  information before disclosing the information.  If the student's 
 60.22  parent or guardian notifies the principal or chief 
 60.23  administrative officer within ten days of receiving the 
 60.24  certified notice that the parent or guardian objects to the 
 60.25  disclosure, the principal or chief administrative officer must 
 60.26  not disclose the information.  The principal or chief 
 60.27  administrative officer must inform the requesting member of the 
 60.28  juvenile justice system of the objection.  
 60.29     (d) A principal or chief administrative officer is not 
 60.30  required to create data under this subdivision.  Information 
 60.31  provided in response to a data request under paragraph (b) shall 
 60.32  indicate only whether the data described in paragraph (b) 
 60.33  exist.  The principal or chief administrative officer is not 
 60.34  authorized under paragraph (b) to disclose the actual data or 
 60.35  other information contained in the student's education record.  
 60.36  A principal or chief administrative officer is not required to 
 61.1   provide data that are protected by court order.  A principal or 
 61.2   chief administrative officer must respond to a data request 
 61.3   within 14 days if no objection is received from the parent or 
 61.4   guardian. 
 61.5      (e) If the school board does not waive the school 
 61.6   attendance requirement for driving privileges, then a principal 
 61.7   or chief school administrator may disclose to the juvenile 
 61.8   justice system only the student's continuing or habitual truancy 
 61.9   status.  
 61.10     (f) Nothing in this subdivision shall limit the disclosure 
 61.11  of educational data pursuant to court order. 
 61.12     (f) (g) A school district, its agents, and employees who 
 61.13  provide data in good faith under this subdivision are not liable 
 61.14  for compensatory or exemplary damages or an award of attorney 
 61.15  fees in an action under section 13.08, or other law, or for a 
 61.16  penalty under section 13.09. 
 61.17     (g) (h) Section 13.03, subdivision 4, applies to data that 
 61.18  are shared under this subdivision with a government entity.  If 
 61.19  data are shared with a member of the juvenile justice system who 
 61.20  is not a government entity, the person receiving the shared data 
 61.21  must treat the data consistent with the requirements of this 
 61.22  chapter applicable to a government entity.  
 61.23     (h) (i) A member of the juvenile justice system who falsely 
 61.24  certifies a request for data under this section is subject to 
 61.25  the penalties under section 13.09.  
 61.26     Sec. 3.  Minnesota Statutes 2004, section 120A.22, 
 61.27  subdivision 12, is amended to read: 
 61.28     Subd. 12.  [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 
 61.29  other person having control of a child may apply to a school 
 61.30  district to have the child excused from attendance for the whole 
 61.31  or any part of the time school is in session during any school 
 61.32  year.  Application may be made to any member of the board, a 
 61.33  truant officer, a principal, or the superintendent.  The school 
 61.34  district may state in its school attendance policy that it may 
 61.35  ask the student's parent or legal guardian to verify in writing 
 61.36  the reason for the child's absence from school.  The board of 
 62.1   the district in which the child resides may approve the 
 62.2   application upon the following being demonstrated to the 
 62.3   satisfaction of that board: 
 62.4      (1) that the child's bodily or mental condition is such as 
 62.5   to prevent attendance at school or application to study for the 
 62.6   period required; or, which includes: 
 62.7      (i) child illness, medical, dental, orthodontic, or 
 62.8   counseling appointments; 
 62.9      (ii) family emergencies; 
 62.10     (iii) the death or serious illness or funeral of an 
 62.11  immediate family member; 
 62.12     (iv) active duty in any military branch of the United 
 62.13  States; or 
 62.14     (v) other exemptions included in the district's school 
 62.15  attendance policy; 
 62.16     (2) that for the school years 1988-1989 through 1999-2000 
 62.17  the child has already completed the studies ordinarily required 
 62.18  in the 10th grade and that for the school years beginning with 
 62.19  the 2000-2001 school year the child has already completed the 
 62.20  studies ordinarily required to graduate the child has already 
 62.21  completed state and district standards required for graduation 
 62.22  from high school; or 
 62.23     (3) that it is the wish of the parent, guardian, or other 
 62.24  person having control of the child, that the child attend for a 
 62.25  period or periods not exceeding in the aggregate three hours in 
 62.26  any week, a school for religious instruction conducted and 
 62.27  maintained by some church, or association of churches, or any 
 62.28  Sunday school association incorporated under the laws of this 
 62.29  state, or any auxiliary thereof.  This school for religious 
 62.30  instruction must be conducted and maintained in a place other 
 62.31  than a public school building, and it must not, in whole or in 
 62.32  part, be conducted and maintained at public expense.  However, a 
 62.33  child may be absent from school on such days as the child 
 62.34  attends upon instruction according to the ordinances of some 
 62.35  church. 
 62.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 63.1      Sec. 4.  [120A.23] [SCHOOL ATTENDANCE REQUIREMENT; DRIVING 
 63.2   PRIVILEGES.] 
 63.3      A district school board, board of a state approved 
 63.4   alternative program (SAAP), or charter school board of directors 
 63.5   by majority vote, may waive the school attendance requirement 
 63.6   for driving privileges under section 171.056 for the students it 
 63.7   enrolls.  The board must vote to waive the requirement before 
 63.8   September 1 of the initial school year in which the waiver is 
 63.9   effective and immediately must transmit an electronic notice to 
 63.10  the Department of Public Safety.  If a board intends to rescind 
 63.11  its waiver and require students to comply with the school 
 63.12  attendance requirement under section 171.056 for any subsequent 
 63.13  school year, the board must vote before September 1 of the 
 63.14  school year in which the waiver is initially rescinded and 
 63.15  immediately must transmit an electronic notice to the Department 
 63.16  of Public Safety. 
 63.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 63.18     Sec. 5.  Minnesota Statutes 2004, section 120B.02, is 
 63.19  amended to read: 
 63.20     120B.02 [EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 
 63.21  STUDENTS.] 
 63.22     (a) The legislature is committed to establishing rigorous 
 63.23  academic standards for Minnesota's public school students.  To 
 63.24  that end, the commissioner shall adopt in rule statewide 
 63.25  academic standards.  The commissioner shall not prescribe in 
 63.26  rule or otherwise the delivery system, classroom assessments, or 
 63.27  form of instruction that school sites must use.  For purposes of 
 63.28  this chapter, a school site is a separate facility, or a 
 63.29  separate program within a facility that a local school board 
 63.30  recognizes as a school site for funding purposes.  
 63.31     (b) All commissioner actions regarding the rule must be 
 63.32  premised on the following:  
 63.33     (1) the rule is intended to raise academic expectations for 
 63.34  students, teachers, and schools; 
 63.35     (2) any state action regarding the rule must evidence 
 63.36  consideration of school district autonomy; and 
 64.1      (3) the Department of Education, with the assistance of 
 64.2   school districts, must make available information about all 
 64.3   state initiatives related to the rule to students and parents, 
 64.4   teachers, and the general public in a timely format that is 
 64.5   appropriate, comprehensive, and readily understandable. 
 64.6      (c) When fully implemented, the requirements for high 
 64.7   school graduation in Minnesota must require students to pass the 
 64.8   basic skills test requirements and satisfactorily complete, as 
 64.9   determined by the school district, the course credit 
 64.10  requirements under section 120B.024 and: 
 64.11     (1) for students enrolled in grade 8 before the 2005-2006 
 64.12  school year, to pass the basic skills test requirements; and 
 64.13     (2) for students enrolled in grade 8 in the 2005-2006 
 64.14  school year and later, to pass the Minnesota Comprehensive 
 64.15  Assessments Second Edition (MCA-IIs). 
 64.16     (d) The commissioner shall periodically review and report 
 64.17  on the state's assessment process. 
 64.18     (e) School districts are not required to adopt specific 
 64.19  provisions of the Goals 2000 and the federal School-to-Work 
 64.20  programs. 
 64.21     Sec. 6.  Minnesota Statutes 2004, section 120B.021, is 
 64.22  amended by adding a subdivision to read: 
 64.23     Subd. 1a.  [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 
 64.24  receiving a student's application signed by the student's parent 
 64.25  or guardian, a school district, area learning center, or charter 
 64.26  school must declare that a student meets or exceeds a specific 
 64.27  academic standard required for graduation under this section if 
 64.28  the local school board, the school board of the school district 
 64.29  in which the area learning center is located, or the charter 
 64.30  school board of directors determines that the student: 
 64.31     (1) is participating in a course of study including an 
 64.32  advanced placement course or an international baccalaureate 
 64.33  course or program that is consistent with state academic 
 64.34  standards, a learning opportunity outside the curriculum of the 
 64.35  district, area learning center or charter school, or an approved 
 64.36  preparatory program for employment or postsecondary education 
 65.1   that is equally or more rigorous than the corresponding state or 
 65.2   local academic standard required by the district, area learning 
 65.3   center, or charter school; 
 65.4      (2) would be precluded from participating in the rigorous 
 65.5   course of study, learning opportunity, or preparatory employment 
 65.6   or postsecondary education program if the student were required 
 65.7   to achieve the academic standard to be waived; and 
 65.8      (3) satisfactorily completes the requirements for the 
 65.9   rigorous course of study, learning opportunity, or preparatory 
 65.10  employment or postsecondary education program. 
 65.11  Consistent with the requirements of this section, the local 
 65.12  school board, the school board of the school district in which 
 65.13  the area learning center is located, or the charter school board 
 65.14  of directors also may formally determine other circumstances in 
 65.15  which to declare that a student meets or exceeds a specific 
 65.16  academic standard that the site requires for graduation under 
 65.17  this section. 
 65.18     (b) A student who satisfactorily completes a postsecondary 
 65.19  enrollment options course or program under section 124D.09 is 
 65.20  not required to complete other requirements of the academic 
 65.21  standards corresponding to that specific rigorous course of 
 65.22  study. 
 65.23     Sec. 7.  Minnesota Statutes 2004, section 120B.11, 
 65.24  subdivision 1, is amended to read: 
 65.25     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 65.26  section and section 120B.10, the following terms have the 
 65.27  meanings given them. 
 65.28     (a) "Instruction" means methods of providing learning 
 65.29  experiences that enables enable a student to meet state and 
 65.30  district academic standards and graduation 
 65.31  standards requirements. 
 65.32     (b) "Curriculum" means district or school adopted programs 
 65.33  and written plans for providing students with learning 
 65.34  experiences that lead to expected knowledge, and skills, and 
 65.35  positive attitudes. 
 65.36     Sec. 8.  Minnesota Statutes 2004, section 120B.11, 
 66.1   subdivision 2, is amended to read: 
 66.2      Subd. 2.  [ADOPTING POLICIES.] (a) A school board shall 
 66.3   adopt annually a have in place an adopted written policy that 
 66.4   includes the following: 
 66.5      (1) district goals for instruction and including the use of 
 66.6   best practices, district and school curriculum, and achievement 
 66.7   for all student subgroups; 
 66.8      (2) a process for evaluating each student's progress toward 
 66.9   meeting graduation academic standards and identifying the 
 66.10  strengths and weaknesses of instruction and curriculum affecting 
 66.11  students' progress; 
 66.12     (3) a system for periodically reviewing and evaluating all 
 66.13  instruction and curriculum; 
 66.14     (4) a plan for improving instruction and, curriculum, and 
 66.15  student achievement; and 
 66.16     (5) an instruction plan that includes education 
 66.17  effectiveness processes developed under plan aligned with 
 66.18  section 122A.625 and that integrates instruction, curriculum, 
 66.19  and technology. 
 66.20     Sec. 9.  Minnesota Statutes 2004, section 120B.11, 
 66.21  subdivision 3, is amended to read: 
 66.22     Subd. 3.  [INSTRUCTION AND CURRICULUM DISTRICT ADVISORY 
 66.23  COMMITTEE.] Each school board shall establish an Instruction and 
 66.24  Curriculum advisory committee to ensure active community 
 66.25  participation in all phases of planning and improving the 
 66.26  instruction and curriculum affecting state graduation and 
 66.27  district academic standards.  A district advisory committee, to 
 66.28  the extent possible, shall reflect the diversity of the district 
 66.29  and its learning sites, and shall include teachers, parents, 
 66.30  support staff, pupils students, and other community residents.  
 66.31  The district may establish building teams as subcommittees of 
 66.32  the district advisory committee under subdivision 4.  The 
 66.33  district advisory committee shall recommend to the school 
 66.34  board districtwide education standards rigorous academic 
 66.35  standards, student achievement goals and measures, assessments, 
 66.36  and program evaluations.  Learning sites may expand upon 
 67.1   district evaluations of instruction, curriculum, assessments, or 
 67.2   programs.  Whenever possible, parents and other community 
 67.3   residents shall comprise at least two-thirds of advisory 
 67.4   committee members. 
 67.5      Sec. 10.  Minnesota Statutes 2004, section 120B.11, 
 67.6   subdivision 4, is amended to read: 
 67.7      Subd. 4.  [BUILDING TEAM.] A school may establish a 
 67.8   building team to develop and implement an education 
 67.9   effectiveness plan to improve instruction and, curriculum, and 
 67.10  student achievement.  The team shall advise the board and the 
 67.11  advisory committee about developing an instruction and 
 67.12  curriculum improvement plan that aligns curriculum, assessment 
 67.13  of student progress in meeting state graduation and district 
 67.14  academic standards, and instruction. 
 67.15     Sec. 11.  Minnesota Statutes 2004, section 120B.11, 
 67.16  subdivision 5, is amended to read: 
 67.17     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
 67.18  school board shall use standard statewide reporting procedures 
 67.19  the commissioner develops and adopt a report that includes the 
 67.20  following: 
 67.21     (1) student performance achievement goals for meeting state 
 67.22  graduation academic standards adopted for that year; 
 67.23     (2) results of local assessment data, and any additional 
 67.24  test data; 
 67.25     (3) the annual school district improvement plans including 
 67.26  staff development goals under section 122A.60; 
 67.27     (4) information about district and learning site progress 
 67.28  in realizing previously adopted improvement plans; and 
 67.29     (5) the amount and type of revenue attributed to each 
 67.30  education site as defined in section 123B.04. 
 67.31     (b) The school board shall publish the report in the local 
 67.32  newspaper with the largest circulation in the district or, by 
 67.33  mail, or by electronic means such as the district Web site.  If 
 67.34  electronic means are used, school districts must publish notice 
 67.35  of the report in a periodical of general circulation in the 
 67.36  district.  School districts must make copies of the report 
 68.1   available to the public on request.  The board shall make a copy 
 68.2   of the report available to the public for inspection.  The board 
 68.3   shall send a copy of the report to the commissioner of education 
 68.4   by October 15 of each year. 
 68.5      (c) The title of the report shall contain the name and 
 68.6   number of the school district and read "Annual Report on 
 68.7   Curriculum, Instruction, and Student Performance Achievement."  
 68.8   The report must include at least the following information about 
 68.9   advisory committee membership: 
 68.10     (1) the name of each committee member and the date when 
 68.11  that member's term expires; 
 68.12     (2) the method and criteria the school board uses to select 
 68.13  committee members; and 
 68.14     (3) the date by which a community resident must apply to 
 68.15  next serve on the committee. 
 68.16     Sec. 12.  Minnesota Statutes 2004, section 120B.11, 
 68.17  subdivision 8, is amended to read: 
 68.18     Subd. 8.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
 68.19  least once every two years, the district report shall include an 
 68.20  evaluation of the district testing programs, according to the 
 68.21  following: 
 68.22     (1) written objectives of the assessment program; 
 68.23     (2) names of tests and grade levels tested; 
 68.24     (3) use of test results; and 
 68.25     (4) implementation of an assurance of mastery program 
 68.26  student achievement results compared to previous years. 
 68.27     Sec. 13.  [120B.128] [EDUCATIONAL PLANNING AND ASSESSMENT 
 68.28  SYSTEM (EPAS) PROGRAM.] 
 68.29     (a) School districts and charter schools may elect to 
 68.30  participate in the Educational Planning and Assessment System 
 68.31  (EPAS) program offered by ACT, Inc. to provide a longitudinal, 
 68.32  systematic approach to student educational and career planning, 
 68.33  assessment, instructional support, and evaluation.  The EPAS 
 68.34  achievement tests include English, reading, mathematics, 
 68.35  science, and components on planning for high school and 
 68.36  postsecondary education, interest inventory, needs assessments, 
 69.1   and student education plans.  These tests are linked to the ACT 
 69.2   assessment for college admission and allow students, parents, 
 69.3   teachers, and schools to determine the student's college 
 69.4   readiness before grades 11 and 12. 
 69.5      (b) The commissioner of education shall provide ACT Explore 
 69.6   tests for students in grade 8 and the ACT Plan test for students 
 69.7   in grade 10 to assess individual student academic strengths and 
 69.8   weaknesses, academic achievement and progress, higher order 
 69.9   thinking skills, and college readiness.  The state shall pay the 
 69.10  test costs for school districts and charter schools that choose 
 69.11  to participate in the EPAS program.  The commissioner shall 
 69.12  establish an application procedure and a process for state 
 69.13  payment of costs. 
 69.14     Sec. 14.  Minnesota Statutes 2004, section 120B.13, 
 69.15  subdivision 1, is amended to read: 
 69.16     Subdivision 1.  [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR 
 69.17  TEACHERS.] (a) The advanced placement and international 
 69.18  baccalaureate programs are well-established academic programs 
 69.19  for mature, academically directed high school students.  These 
 69.20  programs, in addition to providing academic rigor, offer sound 
 69.21  curricular design, accountability, comprehensive external 
 69.22  assessment, feedback to students and teachers, and the 
 69.23  opportunity for high school students to compete academically on 
 69.24  a global level.  Advanced placement and international 
 69.25  baccalaureate programs allow students to leave high school with 
 69.26  the academic skills and self-confidence to succeed in college 
 69.27  and beyond.  The advanced placement and international 
 69.28  baccalaureate programs help provide Minnesota students with 
 69.29  world-class educational opportunity. 
 69.30     (b) Critical to schools' educational success is ongoing 
 69.31  advanced placement/international baccalaureate-approved teacher 
 69.32  training.  A secondary teacher assigned by a district to teach 
 69.33  an advanced placement or international baccalaureate course or 
 69.34  other interested educator may participate in a training program 
 69.35  offered by The College Board or International Baccalaureate 
 69.36  North America, Inc.  The state may pay a portion of the tuition, 
 70.1   room, and board, and out-of-state travel costs a teacher or 
 70.2   other interested educator incurs in participating in a training 
 70.3   program.  The commissioner shall determine application 
 70.4   procedures and deadlines, and select teachers and other 
 70.5   interested educators to participate in the training program, and 
 70.6   determine the payment process and amount of the subsidy.  The 
 70.7   procedures determined by the commissioner shall, to the extent 
 70.8   possible, ensure that advanced placement and international 
 70.9   baccalaureate courses become available in all parts of the state 
 70.10  and that a variety of course offerings are available in school 
 70.11  districts.  This subdivision does not prevent teacher or other 
 70.12  interested educator participation in training programs offered 
 70.13  by The College Board or International Baccalaureate North 
 70.14  America, Inc., when tuition is paid by a source other than the 
 70.15  state. 
 70.16     Sec. 15.  Minnesota Statutes 2004, section 120B.13, 
 70.17  subdivision 3, is amended to read: 
 70.18     Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
 70.19  all or part of the fee for advanced placement or international 
 70.20  baccalaureate examinations for pupils of low-income families in 
 70.21  public and nonpublic schools.  The commissioner shall adopt a 
 70.22  schedule for fee subsidies that may allow payment of the entire 
 70.23  fee for pay all examination fees for all public and nonpublic 
 70.24  students of low-income families, as defined by the commissioner, 
 70.25  and to the limit of the available appropriation, shall also pay 
 70.26  a portion or all of the examination fees for other public and 
 70.27  nonpublic students sitting for an advanced placement 
 70.28  examination, international baccalaureate examination, or both.  
 70.29  The commissioner shall determine procedures for state payments 
 70.30  of fees. 
 70.31     Sec. 16.  Minnesota Statutes 2004, section 120B.13, is 
 70.32  amended by adding a subdivision to read: 
 70.33     Subd. 3a.  [COLLEGE CREDIT.] The colleges and universities 
 70.34  of the Minnesota State Colleges and Universities system must 
 70.35  award, and the University of Minnesota and private postsecondary 
 70.36  institutions are encouraged to award, college credit to high 
 71.1   school students who receive a score of three or higher on an 
 71.2   advanced placement or four or higher on the international 
 71.3   baccalaureate program examination. 
 71.4      Sec. 17.  [120B.131] [COLLEGE-LEVEL EXAMINATION PROGRAM 
 71.5   (CLEP).] 
 71.6      Subdivision 1.  [PROGRAM STRUCTURE.] The College-Level 
 71.7   Examination Program (CLEP) offered by the College Board provides 
 71.8   students with the opportunity to demonstrate college-level 
 71.9   achievement and receive college credit or advanced standing 
 71.10  through a program of examinations in undergraduate college 
 71.11  courses.  Schools must provide information about CLEP and the 
 71.12  opportunity to receive college credit from a Minnesota 
 71.13  postsecondary institution to students successfully completing a 
 71.14  college-level course. 
 71.15     Subd. 2.  [REIMBURSEMENT FOR EXAMINATION FEES.] The state 
 71.16  may reimburse CLEP examination fees for a Minnesota public high 
 71.17  school student who has successfully completed one or more 
 71.18  college-level courses in high school and earned a satisfactory 
 71.19  score on one or more CLEP examinations in the following subjects:
 71.20  composition and literature, mathematics and science, social 
 71.21  sciences and history, foreign languages, and business and 
 71.22  humanities.  The state may reimburse each successful student for 
 71.23  up to six examination fees.  The commissioner shall establish 
 71.24  application procedures and a process and schedule for fee 
 71.25  reimbursements.  The commissioner must give priority to 
 71.26  reimburse the CLEP examination fees of students of low-income 
 71.27  families. 
 71.28     Subd. 3.  [COLLEGE CREDIT.] The colleges and universities 
 71.29  of the Minnesota State Colleges and Universities system must 
 71.30  award, and the University of Minnesota and private postsecondary 
 71.31  institutions are encouraged to award, college credit to high 
 71.32  school students who receive a satisfactory score on a CLEP 
 71.33  examination under this section.  The commissioner, in 
 71.34  consultation with the Minnesota State Colleges and Universities, 
 71.35  shall set a passing score for college credits. 
 71.36     Sec. 18.  [120B.15] [GIFTED AND TALENTED STUDENTS 
 72.1   PROGRAMS.] 
 72.2      School districts may identify students, locally develop 
 72.3   programs, provide staff development, and evaluate programs to 
 72.4   provide gifted and talented students with challenging 
 72.5   educational programs. 
 72.6      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 72.7   2005-2006 school year. 
 72.8      Sec. 19.  [120B.225] [CHARACTER DEVELOPMENT EDUCATION.] 
 72.9      Subdivision 1.  [CHARACTER DEVELOPMENT EDUCATION.] The 
 72.10  legislature encourages districts to integrate or offer 
 72.11  instruction on character education including, but not limited 
 72.12  to, character qualities such as attentiveness, truthfulness, 
 72.13  respect for authority, diligence, gratefulness, self-discipline, 
 72.14  patience, forgiveness, respect for others, peacemaking, and 
 72.15  resourcefulness.  Districts are not limited to, but may use 
 72.16  programs such as Character First and Character Counts.  
 72.17  Instruction should be integrated into a district's existing 
 72.18  programs, curriculum, or the general school environment.  The 
 72.19  commissioner shall provide assistance at the request of a 
 72.20  district to develop character education curriculum and programs. 
 72.21     Subd. 2.  [FUNDING SOURCES.] The commissioner must first 
 72.22  use federal funds for character development education programs 
 72.23  to the extent available under United States Code, title 20, 
 72.24  section 7247.  Districts may accept funds from private and other 
 72.25  public sources for character development education programs 
 72.26  developed and implemented under this section. 
 72.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 72.28  following final enactment. 
 72.29     Sec. 20.  Minnesota Statutes 2004, section 120B.23, is 
 72.30  amended to read: 
 72.31     120B.23 [VIOLENCE PREVENTION AND CHARACTER DEVELOPMENT 
 72.32  EDUCATION GRANTS.] 
 72.33     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
 72.34  commissioner of education, after consulting with the assistant 
 72.35  commissioner of the Office of Drug Policy and Violence 
 72.36  Prevention, shall establish a violence prevention and character 
 73.1   development education grant program, consistent with section 
 73.2   120B.255, subdivision 1, to enable a school district, an 
 73.3   education district, or a group of districts that cooperate for a 
 73.4   particular purpose to develop and implement or to continue a 
 73.5   violence prevention and character development program for 
 73.6   students in kindergarten through grade 12 that can be integrated 
 73.7   into existing curriculum.  A district or group of districts that 
 73.8   elects to develop and implement or to continue a violence 
 73.9   prevention and character development program under section 
 73.10  120B.22 is eligible to apply for a grant under this section. 
 73.11     Subd. 2.  [GRANT APPLICATION.] To be eligible to receive a 
 73.12  grant, a school district, an education district, a service 
 73.13  cooperative, or a group of districts that cooperate for a 
 73.14  particular purpose must submit an application to the 
 73.15  commissioner in the form and manner and according to the 
 73.16  timeline established by the commissioner.  The application must 
 73.17  describe how the applicant will:  (1) continue or integrate into 
 73.18  its existing K-12 curriculum or into cocurricular or 
 73.19  extracurricular activities a program for violence prevention 
 73.20  that contains the program components listed in section 
 73.21  120B.22 and character development; (2) collaborate with local 
 73.22  organizations involved in violence prevention and 
 73.23  intervention and character development; and (3) structure the 
 73.24  program to reflect the characteristics of the children, their 
 73.25  families and the community involved in the program.  The 
 73.26  commissioner may require additional information from the 
 73.27  applicant.  When reviewing the applications, the commissioner 
 73.28  shall determine whether the applicant has met the requirements 
 73.29  of this subdivision. 
 73.30     Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
 73.31  for a violence prevention and character development education 
 73.32  program to eligible applicants as defined in subdivision 2.  
 73.33  Grant amounts may not exceed $3 per resident pupil unit in the 
 73.34  district or group of districts in the prior school year.  Grant 
 73.35  recipients should be geographically distributed throughout the 
 73.36  state. 
 74.1      Subd. 4.  [GRANT PROCEEDS.] A successful applicant must use 
 74.2   the grant money to develop and implement or to continue a 
 74.3   violence prevention and character development program according 
 74.4   to the terms of the grant application. 
 74.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 74.6   following final enactment. 
 74.7      Sec. 21.  [120B.25] [AMERICAN HERITAGE EDUCATION.] 
 74.8      (a) School districts shall permit grade-level instruction 
 74.9   to ensure students have the opportunity to read and study 
 74.10  America's founding documents that provide an understanding of 
 74.11  the principles, character, and world view of America's founders; 
 74.12  including documents that contributed to the foundation or 
 74.13  maintenance of America's representative republican form of 
 74.14  limited government, the Bill of Rights, our free-market economic 
 74.15  system, and patriotism.  Districts shall permit a principal or 
 74.16  teacher to appropriately use, read, or post in a public school 
 74.17  building, classroom, or at any public school event any excerpts 
 74.18  or portions of the original source documents, writings, 
 74.19  speeches, proclamations, or records relating to the history, 
 74.20  heritage, or foundation of the United States or the state of 
 74.21  Minnesota, including, but not limited to: 
 74.22     (1) the Mayflower Compact; 
 74.23     (2) the Declaration of Independence; 
 74.24     (3) the Constitutions of the United States and the state of 
 74.25  Minnesota; 
 74.26     (4) the Northwest Ordinance of 1787; 
 74.27     (5) the Federalist Papers; 
 74.28     (6) the Pledge of Allegiance; 
 74.29     (7) the national anthem; 
 74.30     (8) Washington's farewell address to the nation; 
 74.31     (9) Lincoln's Gettysburg address; 
 74.32     (10) the acts and published records of Congress; and 
 74.33     (11) the United States Supreme Court decisions and records. 
 74.34     (b) Districts may not censor or restrain instruction in 
 74.35  American or Minnesota state history or heritage based on 
 74.36  religious references in original source documents, writings, 
 75.1   speeches, proclamations, or records described under paragraph 
 75.2   (a).  These and any other materials must be used for educational 
 75.3   purposes and not to establish any religion. 
 75.4      (c) Students may voluntarily choose to read, write, share, 
 75.5   report, or otherwise study a topic which is religious in nature 
 75.6   provided other students are provided with the same opportunity 
 75.7   to freely choose a topic. 
 75.8      Sec. 22.  Minnesota Statutes 2004, section 120B.30, 
 75.9   subdivision 1, is amended to read: 
 75.10     Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
 75.11  with advice from experts with appropriate technical 
 75.12  qualifications and experience and stakeholders, consistent with 
 75.13  subdivision 1a, shall include in the comprehensive assessment 
 75.14  system, for each grade level to be tested, state-constructed 
 75.15  tests developed from and aligned with the state's required 
 75.16  academic standards under section 120B.021 and administered 
 75.17  annually to all students in grades 3 through 8 and at the high 
 75.18  school level.  A state-developed test in a subject other than 
 75.19  writing, developed after the 2002-2003 school year, must include 
 75.20  both multiple choice and constructed response questions.  The 
 75.21  commissioner shall establish one or more months during which 
 75.22  schools shall administer the tests to students each school 
 75.23  year.  For students enrolled in grade 8 before the 2005-2006 
 75.24  school year, only Minnesota basic skills tests in reading, 
 75.25  mathematics, and writing shall fulfill students' basic skills 
 75.26  testing requirements for a passing state notation.  The passing 
 75.27  scores of the state tests in reading and mathematics are the 
 75.28  equivalent of:  
 75.29     (1) 70 percent correct for students entering grade 9 in 
 75.30  1996; and 
 75.31     (2) 75 percent correct for students entering grade 9 in 
 75.32  1997 and thereafter, as based on the first uniform test 
 75.33  administration of February 1998.  
 75.34     For students enrolled in grade 8 in the 2005-2006 school 
 75.35  year and later, only the Minnesota Comprehensive Assessments 
 75.36  Second Edition (MCA-IIs) in reading, mathematics, and writing 
 76.1   shall fulfill students' academic standard requirements. 
 76.2      (b) The third through 8th grade and high school level test 
 76.3   results shall be available to districts for diagnostic purposes 
 76.4   affecting student learning and district instruction and 
 76.5   curriculum, and for establishing educational accountability.  
 76.6   The commissioner must disseminate to the public the test results 
 76.7   upon receiving those results. 
 76.8      (c) State tests must be constructed and aligned with state 
 76.9   academic standards.  The testing process and the order of 
 76.10  administration shall be determined by the commissioner.  The 
 76.11  statewide results shall be aggregated at the site and district 
 76.12  level, consistent with subdivision 1a.  
 76.13     (d) In addition to the testing and reporting requirements 
 76.14  under this section, the commissioner shall include the following 
 76.15  components in the statewide public reporting system: 
 76.16     (1) uniform statewide testing of all students in grades 3 
 76.17  through 8 and at the high school level that provides exemptions, 
 76.18  only with parent or guardian approval, for those very few 
 76.19  students for whom the student's individual education plan team 
 76.20  under sections 125A.05 and 125A.06, determines that the student 
 76.21  is incapable of taking a statewide test, or for a limited 
 76.22  English proficiency student under section 124D.59, subdivision 
 76.23  2, if the student has been in the United States for fewer than 
 76.24  three years; 
 76.25     (2) educational indicators that can be aggregated and 
 76.26  compared across school districts and across time on a statewide 
 76.27  basis, including average daily attendance, high school 
 76.28  graduation rates, and high school drop-out rates by age and 
 76.29  grade level; 
 76.30     (3) students' scores on the American College Test; and 
 76.31     (4) state results from participation in the National 
 76.32  Assessment of Educational Progress so that the state can 
 76.33  benchmark its performance against the nation and other states, 
 76.34  and, where possible, against other countries, and contribute to 
 76.35  the national effort to monitor achievement. 
 76.36     (e) Districts must report exemptions under paragraph (d), 
 77.1   clause (1), to the commissioner consistent with a format 
 77.2   provided by the commissioner. 
 77.3      Sec. 23.  Minnesota Statutes 2004, section 120B.30, 
 77.4   subdivision 1a, is amended to read: 
 77.5      Subd. 1a.  [STATEWIDE AND LOCAL ASSESSMENTS; RESULTS.] (a) 
 77.6   The commissioner must develop language arts reading, 
 77.7   mathematics, and science assessments aligned with state academic 
 77.8   standards that districts and sites must use to monitor student 
 77.9   growth toward achieving those standards.  The commissioner must 
 77.10  not develop statewide assessments for academic standards in 
 77.11  social studies, health and physical education, and the arts.  
 77.12  The commissioner must require: 
 77.13     (1) annual language arts reading and mathematics 
 77.14  assessments in grades 3 through 8 and at the high school level 
 77.15  for the 2005-2006 school year and later; and 
 77.16     (2) annual science assessments in one grade in the grades 3 
 77.17  through 5 span, the grades 6 through 9 span, and a life sciences 
 77.18  assessment in the grades 10 through 12 span for the 2007-2008 
 77.19  school year and later. 
 77.20     (b) The commissioner must ensure that all statewide tests 
 77.21  administered to elementary and secondary students measure 
 77.22  students' academic knowledge and skills and not students' 
 77.23  values, attitudes, and beliefs. 
 77.24     (c) Reporting of assessment results must: 
 77.25     (1) provide timely, useful, and understandable information 
 77.26  on the performance of individual students, schools, school 
 77.27  districts, and the state; 
 77.28     (2) include, by the 2006-2007 school year, a value-added 
 77.29  component to measure student achievement growth over time; and 
 77.30     (3) for students enrolled in grade 8 before the 2005-2006 
 77.31  school year, determine whether students have met the state's 
 77.32  basic skills requirements; and 
 77.33     (4) for students enrolled in grade 8 in the 2005-2006 
 77.34  school year and later, determine whether students have met the 
 77.35  state's academic standards. 
 77.36     (d) Consistent with applicable federal law and subdivision 
 78.1   1, paragraph (d), clause (1), the commissioner must include 
 78.2   alternative assessments for the very few students with 
 78.3   disabilities for whom statewide assessments are inappropriate 
 78.4   and for students with limited English proficiency. 
 78.5      (e) A school, school district, and charter school must 
 78.6   administer statewide assessments under this section, as the 
 78.7   assessments become available, to evaluate student progress in 
 78.8   achieving the academic standards.  If a state assessment is not 
 78.9   available, a school, school district, and charter school must 
 78.10  determine locally if a student has met the required academic 
 78.11  standards.  A school, school district, or charter school may use 
 78.12  a student's performance on a statewide assessment as one of 
 78.13  multiple criteria to determine grade promotion or retention.  A 
 78.14  school, school district, or charter school may use a high school 
 78.15  student's performance on a statewide assessment as a percentage 
 78.16  of the student's final grade in a course, or place a student's 
 78.17  assessment score on the student's transcript.  
 78.18     Sec. 24.  [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 
 78.19     (a) The commissioner of education must implement a 
 78.20  value-added assessment program to assist school districts, 
 78.21  public schools, and charter schools in assessing and reporting 
 78.22  individual students' growth in academic achievement under 
 78.23  section 120B.30, subdivision 1a.  The program must use 
 78.24  assessments of individual students' academic achievement to make 
 78.25  longitudinal comparisons of each student's academic growth over 
 78.26  time.  School districts, public schools, and charter schools may 
 78.27  apply to the commissioner to participate in the initial trial 
 78.28  program using a form and in the manner the commissioner 
 78.29  prescribes.  The commissioner must select program participants 
 78.30  from urban, suburban, and rural areas throughout the state.  
 78.31     (b) The commissioner may issue a request for proposals to 
 78.32  contract with an organization that provides a value-added 
 78.33  assessment model that reliably estimates school and school 
 78.34  district effects on students' academic achievement over time.  
 78.35  The model the commissioner selects must accommodate diverse data 
 78.36  and must use each student's test data across grades.  Data on 
 79.1   individual teachers generated under the model are personnel data 
 79.2   under section 13.43.  
 79.3      (c) The contract under paragraph (b) must be consistent 
 79.4   with the definition of "best value" under section 16C.02, 
 79.5   subdivision 4. 
 79.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 79.7   following final enactment. 
 79.8      Sec. 25.  Minnesota Statutes 2004, section 121A.03, 
 79.9   subdivision 1, is amended to read: 
 79.10     Subdivision 1.  [MODEL POLICY.] The commissioner shall 
 79.11  maintain and make available to school boards a model sexual, 
 79.12  religious, and racial harassment and violence policy.  The model 
 79.13  policy shall address the requirements of subdivision 2, and may 
 79.14  encourage violence prevention and character development 
 79.15  education programs, consistent with section 120B.225, 
 79.16  subdivision 1, to prevent and reduce policy violations.  
 79.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 79.18  following final enactment. 
 79.19     Sec. 26.  Minnesota Statutes 2004, section 121A.06, 
 79.20  subdivision 2, is amended to read: 
 79.21     Subd. 2.  [REPORTS; CONTENT.] By January 1, 1994, the 
 79.22  commissioner, in consultation with the criminal and juvenile 
 79.23  information policy group, shall develop a standardized form to 
 79.24  be used by schools to report incidents involving the use or 
 79.25  possession of a dangerous weapon in school zones.  School 
 79.26  districts must electronically report to the commissioner of 
 79.27  education incidents involving the use or possession of a 
 79.28  dangerous weapon in school zones.  The form shall must include 
 79.29  the following information: 
 79.30     (1) a description of each incident, including a description 
 79.31  of the dangerous weapon involved in the incident; 
 79.32     (2) where, at what time, and under what circumstances the 
 79.33  incident occurred; 
 79.34     (3) information about the offender, other than the 
 79.35  offender's name, including the offender's age; whether the 
 79.36  offender was a student and, if so, where the offender attended 
 80.1   school; and whether the offender was under school expulsion or 
 80.2   suspension at the time of the incident; 
 80.3      (4) information about the victim other than the victim's 
 80.4   name, if any, including the victim's age; whether the victim was 
 80.5   a student and, if so, where the victim attended school; and if 
 80.6   the victim was not a student, whether the victim was employed at 
 80.7   the school; 
 80.8      (5) the cost of the incident to the school and to the 
 80.9   victim; and 
 80.10     (6) the action taken by the school administration to 
 80.11  respond to the incident. 
 80.12     The commissioner also shall develop provide an alternative 
 80.13  electronic reporting format that allows school districts to 
 80.14  provide aggregate data, with an option to use computer 
 80.15  technology to report the data. 
 80.16     Sec. 27.  Minnesota Statutes 2004, section 121A.06, 
 80.17  subdivision 3, is amended to read: 
 80.18     Subd. 3.  [REPORTS; FILING REQUIREMENTS.] By February 1 and 
 80.19  July 1 31 of each year, each public school shall report 
 80.20  incidents involving the use or possession of a dangerous weapon 
 80.21  in school zones to the commissioner.  The reports must be made 
 80.22  on the standardized forms or using the alternative 
 80.23  format submitted using the electronic reporting system developed 
 80.24  by the commissioner under subdivision 2.  The commissioner shall 
 80.25  compile the information it receives from the schools and report 
 80.26  it annually to the commissioner of public safety, the criminal 
 80.27  and juvenile information policy group, and the legislature. 
 80.28     Sec. 28.  [121A.24] [NOTICE REQUIREMENTS FOR STUDENT 
 80.29  SURVEYS AND SIMILAR INSTRUMENTS.] 
 80.30     (a) A school district must obtain prior written informed 
 80.31  consent from a parent or guardian of a minor or dependent child 
 80.32  before administering an academic or nonacademic student survey, 
 80.33  assessment, analysis, evaluation, or similar instrument that 
 80.34  solicits information about the student or the student's family 
 80.35  concerning: 
 80.36     (1) political affiliations or beliefs; 
 81.1      (2) mental or psychological problems; 
 81.2      (3) critical appraisals of another individual with whom a 
 81.3   student has a close family relationship; 
 81.4      (4) legally recognized privileged or analogous 
 81.5   relationships, such as those with a lawyer, physician, or 
 81.6   minister; 
 81.7      (5) religious practices, affiliations, or beliefs; or 
 81.8      (6) income or other income-related information required by 
 81.9   law to determine eligibility to participate in or receive 
 81.10  financial assistance under a program. 
 81.11     (b) When asking a parent or guardian to provide informed 
 81.12  written consent, the school district must: 
 81.13     (1) make a copy of the instrument readily accessible to the 
 81.14  parent or guardian at a convenient location and reasonable time; 
 81.15  and 
 81.16     (2) specifically identify the information in paragraph (a) 
 81.17  that will be solicited through the instrument. 
 81.18  The district must request the consent of the parent or guardian 
 81.19  at least 14 days before administering the instrument. 
 81.20     (c) A parent or guardian seeking to compel a school 
 81.21  district to comply with this section has available the civil 
 81.22  remedies under section 13.08, subdivision 4, in addition to 
 81.23  other remedies provided by law. 
 81.24     (d) A school district may administer an academic or 
 81.25  nonacademic student survey, assessment, analysis, evaluation, or 
 81.26  similar instrument that solicits information about the student 
 81.27  or the student's family concerning sexual behavior or attitudes 
 81.28  or illegal, antisocial, self-incriminating, or demeaning 
 81.29  behavior without obtaining prior written informed consent from 
 81.30  the parent or guardian of a minor or dependent child.  The 
 81.31  instrument must not identify the student in any way and the 
 81.32  district must give the student's parent or guardian the 
 81.33  opportunity to refuse to have the instrument administered to the 
 81.34  student. 
 81.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 81.36  following final enactment. 
 82.1      Sec. 29.  Minnesota Statutes 2004, section 121A.47, 
 82.2   subdivision 14, is amended to read: 
 82.3      Subd. 14.  [ADMISSION OR READMISSION PLAN.] A school 
 82.4   administrator shall prepare and enforce an admission or 
 82.5   readmission plan for any pupil who is excluded or expelled from 
 82.6   school.  The plan may include measures to improve the pupil's 
 82.7   behavior, including completing a character education program, 
 82.8   consistent with section 120B.225, subdivision 1, and require 
 82.9   parental involvement in the admission or readmission process, 
 82.10  and may indicate the consequences to the pupil of not improving 
 82.11  the pupil's behavior. 
 82.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 82.13  following final enactment. 
 82.14     Sec. 30.  Minnesota Statutes 2004, section 121A.53, is 
 82.15  amended to read: 
 82.16     121A.53 [REPORT TO COMMISSIONER OF EDUCATION.] 
 82.17     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 82.18  board shall must report through the department electronic 
 82.19  reporting system each exclusion or expulsion within 30 days of 
 82.20  the effective date of the action to the commissioner of 
 82.21  education.  This report shall must include a statement of 
 82.22  alternative educational services given the pupil and the reason 
 82.23  for, the effective date, and the duration of the exclusion or 
 82.24  expulsion.  The report must also include the student's age, 
 82.25  grade, gender, race, and special education status. 
 82.26     Subd. 2.  [REPORT.] The school board must include state 
 82.27  student identification numbers of affected pupils on all 
 82.28  dismissal reports required by the department.  The department 
 82.29  must report annually to the commissioner summary data on the 
 82.30  number of dismissals by age, grade, gender, race, and special 
 82.31  education status of the affected pupils.  All dismissal reports 
 82.32  must be submitted through the department electronic reporting 
 82.33  system. 
 82.34     Sec. 31.  Minnesota Statutes 2004, section 121A.55, is 
 82.35  amended to read: 
 82.36     121A.55 [POLICIES TO BE ESTABLISHED.] 
 83.1      (a) The commissioner of education shall promulgate 
 83.2   guidelines to assist each school board.  Each school board shall 
 83.3   establish uniform criteria for dismissal and adopt written 
 83.4   policies and rules to effectuate the purposes of sections 
 83.5   121A.40 to 121A.56.  The policies shall emphasize preventing 
 83.6   dismissals through early detection of problems, using character 
 83.7   development or other programs, consistent with section 120B.225, 
 83.8   subdivision 1, and shall be designed to address students' 
 83.9   inappropriate behavior from recurring.  The policies shall 
 83.10  recognize the continuing responsibility of the school for the 
 83.11  education of the pupil during the dismissal period.  The 
 83.12  alternative educational services, if the pupil wishes to take 
 83.13  advantage of them, must be adequate to allow the pupil to make 
 83.14  progress towards meeting the graduation standards adopted under 
 83.15  section 120B.02 and help prepare the pupil for readmission.  
 83.16     (b) An area learning center under section 123A.05 may not 
 83.17  prohibit an expelled or excluded pupil from enrolling solely 
 83.18  because a district expelled or excluded the pupil.  The board of 
 83.19  the area learning center may use the provisions of the Pupil 
 83.20  Fair Dismissal Act to exclude a pupil or to require an admission 
 83.21  plan. 
 83.22     (c) Each school district shall develop a policy and report 
 83.23  it to the commissioner on the appropriate use of peace officers 
 83.24  and crisis teams to remove students who have an individualized 
 83.25  education plan from school grounds. 
 83.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 83.27  following final enactment. 
 83.28     Sec. 32.  [121A.575] [ALTERNATIVES TO PUPIL SUSPENSION.] 
 83.29     Notwithstanding any law to the contrary and in accordance 
 83.30  with sections 121A.40 to 121A.56, after a school administration 
 83.31  notifies a pupil of the grounds for suspension, the school 
 83.32  administration may, instead of imposing the suspension, do one 
 83.33  or more of the following: 
 83.34     (1) strongly encourage a parent or guardian of the pupil to 
 83.35  attend school with the pupil for one day; 
 83.36     (2) assign the pupil to attend school on Saturday as 
 84.1   supervised by the principal or the principal's designee; and 
 84.2      (3) petition the juvenile court that the student is in need 
 84.3   of services under chapter 260C.  
 84.4      Sec. 33.  [121A.655] [SCHOOL ATTENDANCE REQUIREMENT; 
 84.5   DRIVING PRIVILEGES.] 
 84.6      Students enrolled in a school district, charter school, or 
 84.7   alternative education program that does not waive the school 
 84.8   attendance requirement for driving privileges are subject to 
 84.9   section 171.056, among other related sections.  
 84.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
 84.11     Sec. 34.  Minnesota Statutes 2004, section 122A.06, 
 84.12  subdivision 4, is amended to read: 
 84.13     Subd. 4.  [COMPREHENSIVE, SCIENTIFICALLY BASED EFFECTIVE 
 84.14  READING INSTRUCTION.] "Comprehensive, scientifically based 
 84.15  reading instruction" includes instruction and practice in 
 84.16  phonemic awareness, phonics and other word-recognition skills, 
 84.17  and guided oral reading for beginning readers, as well as 
 84.18  extensive silent reading, vocabulary instruction, instruction in 
 84.19  comprehension, and instruction that fosters understanding and 
 84.20  higher-order thinking for readers of all ages and proficiency 
 84.21  levels.  "Effective reading instruction" includes a program or 
 84.22  collection of instructional practices that is based on reliable 
 84.23  evidence showing that when these programs or practices are used, 
 84.24  students can be expected to achieve, at a minimum, satisfactory 
 84.25  reading progress.  The program or collection of practices must 
 84.26  include, at a minimum, instruction in five areas of reading:  
 84.27  phonemic awareness, phonics, fluency, vocabulary, and text 
 84.28  comprehension. 
 84.29     Effective reading instruction also includes and integrates 
 84.30  instructional strategies for continuously assessing, evaluating, 
 84.31  and communicating the student's reading progress and needs in 
 84.32  order to design and implement ongoing interventions so that 
 84.33  students of all ages and proficiency levels can read and 
 84.34  comprehend text and apply higher level thinking skills. 
 84.35     Sec. 35.  Minnesota Statutes 2004, section 122A.09, 
 84.36  subdivision 4, is amended to read: 
 85.1      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
 85.2   rules to license public school teachers and interns subject to 
 85.3   chapter 14. 
 85.4      (b) The board must adopt rules requiring a person to 
 85.5   successfully complete a skills examination in reading, writing, 
 85.6   and mathematics as a requirement for initial teacher licensure.  
 85.7   Such rules must require college and universities offering a 
 85.8   board-approved teacher preparation program to provide remedial 
 85.9   assistance to persons who did not achieve a qualifying score on 
 85.10  the skills examination, including those for whom English is a 
 85.11  second language. 
 85.12     (c) The board must adopt rules to approve teacher 
 85.13  preparation programs.  The board, upon the request of a 
 85.14  postsecondary student preparing for teacher licensure or a 
 85.15  licensed graduate of a teacher preparation program, shall assist 
 85.16  in resolving a dispute between the person and a postsecondary 
 85.17  institution providing a teacher preparation program when the 
 85.18  dispute involves an institution's recommendation for licensure 
 85.19  affecting the person or the person's credentials.  At the 
 85.20  board's discretion, assistance may include the application of 
 85.21  chapter 14. 
 85.22     (d) The board must provide the leadership and shall adopt 
 85.23  rules for the redesign of teacher education programs to 
 85.24  implement a research based, results-oriented curriculum that 
 85.25  focuses on the skills teachers need in order to be effective.  
 85.26  The board shall implement new systems of teacher preparation 
 85.27  program evaluation to assure program effectiveness based on 
 85.28  proficiency of graduates in demonstrating attainment of program 
 85.29  outcomes. 
 85.30     (e) The board must adopt rules requiring successful 
 85.31  completion of an examination of general pedagogical knowledge 
 85.32  and examinations of licensure-specific teaching skills.  The 
 85.33  rules shall be effective on the dates determined by the board 
 85.34  but not later than September 1, 2001.  
 85.35     (f) The board must adopt rules requiring teacher educators 
 85.36  to work directly with elementary or secondary school teachers in 
 86.1   elementary or secondary schools to obtain periodic exposure to 
 86.2   the elementary or secondary teaching environment. 
 86.3      (g) The board must grant licenses to interns and to 
 86.4   candidates for initial licenses. 
 86.5      (h) The board must design and implement an assessment 
 86.6   system which requires a candidate for an initial license and 
 86.7   first continuing license to demonstrate the abilities necessary 
 86.8   to perform selected, representative teaching tasks at 
 86.9   appropriate levels. 
 86.10     (i) The board must receive recommendations from local 
 86.11  committees as established by the board for the renewal of 
 86.12  teaching licenses. 
 86.13     (j) The board must grant life licenses to those who qualify 
 86.14  according to requirements established by the board, and suspend 
 86.15  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
 86.16  board must not establish any expiration date for application for 
 86.17  life licenses.  
 86.18     (k) The board must adopt rules that require all licensed 
 86.19  teachers who are renewing their continuing license to include in 
 86.20  their renewal requirements further preparation in the areas of 
 86.21  using positive behavior interventions and in accommodating, 
 86.22  modifying, and adapting curricula, materials, and strategies to 
 86.23  appropriately meet the needs of individual students and ensure 
 86.24  adequate progress toward the state's graduation rule.  
 86.25     (l) In adopting rules to license public school teachers who 
 86.26  provide health-related services for disabled children, the board 
 86.27  shall adopt rules consistent with license or registration 
 86.28  requirements of the commissioner of health and the 
 86.29  health-related boards who license personnel who perform similar 
 86.30  services outside of the school. 
 86.31     (m) The board must adopt rules that require all licensed 
 86.32  teachers who are renewing their continuing license to include in 
 86.33  their renewal requirements further reading preparation, 
 86.34  consistent with section 122A.06, subdivision 4.  The rules do 
 86.35  not take effect until they are approved by law.  Teachers who do 
 86.36  not provide direct instruction including, at least, counselors, 
 87.1   school psychologists, school nurses, school social workers, 
 87.2   audiovisual directors and coordinators, and recreation personnel 
 87.3   are exempt from this section. 
 87.4      (n) The board must adopt rules that require all licensed 
 87.5   teachers who are renewing their continuing license to include in 
 87.6   their renewal requirements further preparation in understanding 
 87.7   the key warning signs of early-onset mental illness in children 
 87.8   and adolescents. 
 87.9      (o) The board must: 
 87.10     (1) adopt rules to license qualified candidates to teach 
 87.11  chemistry, physics, biology, and earth and space science; and 
 87.12     (2) license a science teacher qualified to teach in grades 
 87.13  7 through 12 to teach in a new science content area or level in 
 87.14  grades 7 through 12 if the teacher holds a continuing license to 
 87.15  teach science, has a continuing contract under section 122A.40, 
 87.16  subdivision 7, or section 122A.41, subdivision 4, and receives a 
 87.17  qualifying score on an appropriate Praxis II test in a science 
 87.18  subject other than the teacher's currently licensed science 
 87.19  field or level.  A qualifying score is the same test score used 
 87.20  for initial licenses to teach science.  A science teacher who 
 87.21  seeks licensure in a different science content area or level 
 87.22  under this paragraph is responsible for the actual costs of the 
 87.23  required testing.  The board's authority to license science 
 87.24  teachers under this paragraph expires August 1, 2009. 
 87.25     Sec. 36.  Minnesota Statutes 2004, section 122A.12, 
 87.26  subdivision 2, is amended to read: 
 87.27     Subd. 2.  [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION; 
 87.28  REIMBURSEMENT.] (a) Membership terms, removal of members, and 
 87.29  the filling of membership vacancies are as provided in section 
 87.30  214.09.  The terms of the initial board members must be 
 87.31  determined by lot as follows: 
 87.32     (1) three members must be appointed for terms that expire 
 87.33  August 1, 2002; 
 87.34     (2) three members must be appointed for terms that expire 
 87.35  August 1, 2003; and 
 87.36     (3) four members must be appointed for terms that expire 
 88.1   August 1, 2004. 
 88.2      Members shall not receive the daily payment under section 
 88.3   214.09, subdivision 3.  The public employer of a member shall 
 88.4   not reduce the member's compensation or benefits for the 
 88.5   member's absence from employment when engaging in the business 
 88.6   of the board.  The provision of staff, administrative services, 
 88.7   and office space; the review and processing of complaints; the 
 88.8   setting of fees; the selection and duties of an executive 
 88.9   secretary to serve the board; and other provisions relating to 
 88.10  board operations are as provided in chapter 214.  Fiscal year 
 88.11  and reporting requirements are as provided in sections 214.07 
 88.12  and 214.08. 
 88.13     (b) The board may reimburse local school districts for the 
 88.14  cost of a substitute teacher employed when a regular teacher is 
 88.15  providing professional assistance to the state by serving on the 
 88.16  board or on a committee or task force appointed by the board. 
 88.17     Sec. 37.  Minnesota Statutes 2004, section 122A.18, 
 88.18  subdivision 2a, is amended to read: 
 88.19     Subd. 2a.  [READING STRATEGIES.] (a) All colleges and 
 88.20  universities approved by the Board of Teaching to prepare 
 88.21  persons for classroom teacher licensure must include in their 
 88.22  teacher preparation programs reading best practices that enable 
 88.23  classroom teacher licensure candidates to know how to teach 
 88.24  reading, such as phonics or other research-based best practices 
 88.25  in reading, consistent with section 122A.06, subdivision 4, that 
 88.26  enable the licensure candidate to know how to teach reading in 
 88.27  the candidate's content areas. 
 88.28     (b) Board-approved teacher preparation programs for 
 88.29  teachers of elementary education must require instruction in the 
 88.30  application of comprehensive, scientifically based, and balanced 
 88.31  reading instruction programs. that: 
 88.32     (1) teach students to read using foundational knowledge, 
 88.33  practices, and strategies consistent with section 122A.06, 
 88.34  subdivision 4, so that all students will achieve continuous 
 88.35  progress in reading; and 
 88.36     (2) teach specialized instruction in reading strategies, 
 89.1   interventions, and remediations that enable students of all ages 
 89.2   and proficiency levels to become proficient readers. 
 89.3      Sec. 38.  Minnesota Statutes 2004, section 122A.41, 
 89.4   subdivision 14, is amended to read: 
 89.5      Subd. 14.  [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 
 89.6   OF PUPILS; PREFERENCE GIVEN.] (a) A teacher whose services are 
 89.7   terminated on account of discontinuance of position or lack of 
 89.8   pupils must receive first consideration for other positions in 
 89.9   the district for which that teacher is qualified.  In the event 
 89.10  it becomes necessary to discontinue one or more positions, in 
 89.11  making such discontinuance, teachers must be discontinued in any 
 89.12  department in the inverse order in which they were employed, 
 89.13  unless a board and the exclusive representative of teachers in 
 89.14  the district negotiate a plan providing otherwise. 
 89.15     (b) Notwithstanding the provisions of clause (a), a teacher 
 89.16  is not entitled to exercise any seniority when that exercise 
 89.17  results in that teacher being retained by the district in a 
 89.18  field for which the teacher holds only a provisional license, as 
 89.19  defined by the Board of Teaching, unless that exercise of 
 89.20  seniority results in the termination of services, on account of 
 89.21  discontinuance of position or lack of pupils, of another teacher 
 89.22  who also holds a provisional license in the same field.  The 
 89.23  provisions of this clause do not apply to vocational education 
 89.24  licenses.  
 89.25     (c) Notwithstanding the provisions of clause (a), a teacher 
 89.26  must not be reinstated to a position in a field in which the 
 89.27  teacher holds only a provisional license, other than a 
 89.28  vocational education license, while another teacher who holds a 
 89.29  nonprovisional license in the same field is available for 
 89.30  reinstatement. 
 89.31     Sec. 39.  Minnesota Statutes 2004, section 122A.414, is 
 89.32  amended to read: 
 89.33     122A.414 [ALTERNATIVE TEACHER COMPENSATION PAY.] 
 89.34     Subdivision 1.  [RESTRUCTURED PAY SYSTEM.] A restructured 
 89.35  teacher compensation professional pay system is established 
 89.36  under subdivision 2 to provide incentives for teachers to 
 90.1   improve their knowledge and skills and for school districts and 
 90.2   charter schools to recruit and retain highly qualified teachers, 
 90.3   and to support teachers' roles in improving students' 
 90.4   educational achievement.  
 90.5      Subd. 2.  [ALTERNATIVE TEACHER PROFESSIONAL PAY SYSTEM.] 
 90.6   (a) To participate in this program, a school district, school 
 90.7   site, or charter school must have an educational improvement 
 90.8   plan as described in section 122A.413 and an alternative teacher 
 90.9   professional pay system as described in paragraph (b). 
 90.10     (b) The alternative teacher professional pay system must: 
 90.11     (1) describe the conditions necessary for how teachers can 
 90.12  achieve career advancement and additional compensation; 
 90.13     (2) describe how the school district, school site, or 
 90.14  charter school will provide teachers with career advancement 
 90.15  options for teachers retaining, such as master or mentor teacher 
 90.16  positions that allow teachers to retain primary roles in student 
 90.17  instruction and facilitate job-embedded professional development 
 90.18  that helps other teachers improve their skills; 
 90.19     (3) use a professional pay system that replaces the step 
 90.20  and lane salary schedule and is not based on years of service; 
 90.21     (4) encourage teachers' continuous improvement in content 
 90.22  knowledge, pedagogy, and use of best practices; and 
 90.23     (5) implement an objective evaluation system, including 
 90.24  classroom observation, that is aligned with the district's or 
 90.25  the site's educational improvement plan as described in section 
 90.26  122A.413 eliminate the "steps and lanes" salary schedule and 
 90.27  compensate teachers for performing satisfactory service, 
 90.28  achieving professional teaching goals, and undergoing 
 90.29  evaluations under clause (6); 
 90.30     (4) compensate teachers for their performance based on, at 
 90.31  a minimum:  
 90.32     (i) schoolwide achievement gains under section 120B.35 or 
 90.33  locally selected standardized assessment outcomes, or both; 
 90.34     (ii) individual student achievement gains, where available, 
 90.35  under section 120B.35 or locally selected standardized 
 90.36  assessment outcomes, or both; and 
 91.1      (iii) results of individual teacher evaluations conducted 
 91.2   by a locally selected and trained evaluation team under clause 
 91.3   (6); 
 91.4      (5) provide integrated ongoing site-based professional 
 91.5   development activities that are aligned with student needs under 
 91.6   sections 122A.413 and 122A.60, if enacted, and led during the 
 91.7   school day by trained teacher leaders such as master or mentor 
 91.8   teachers; and 
 91.9      (6) provide an objective and comprehensive teacher 
 91.10  evaluation that is aligned with the educational improvement plan 
 91.11  under section 122A.413 and the staff development plan under 
 91.12  section 122A.601, if enacted, and that includes multiple 
 91.13  evaluations of a teacher's performance during the school year 
 91.14  conducted by the locally selected and trained evaluation team 
 91.15  that are based on best practice teaching standards and 
 91.16  instruction and on classroom observations.  
 91.17     Subd. 3.  [REPORT.] Participating districts and, school 
 91.18  sites, and charter schools must report on the implementation and 
 91.19  effectiveness of the alternative teacher compensation 
 91.20  plan professional pay system, particularly addressing each 
 91.21  requirement under subdivision 2 and make biennial 
 91.22  recommendations by January 1 to their school boards.  The school 
 91.23  boards board shall transmit a copy of the report with a summary 
 91.24  of the findings and recommendations of their the district, 
 91.25  school site, or charter school to the commissioner. 
 91.26     Sec. 40.  Minnesota Statutes 2004, section 122A.415, 
 91.27  subdivision 1, is amended to read: 
 91.28     Subdivision 1.  [AID REVENUE AMOUNT.] (a) A school district 
 91.29  , school site, or charter school that meets the conditions of 
 91.30  section 122A.414 and submits an application approved by the 
 91.31  commissioner is eligible for alternative compensation aid 
 91.32  revenue.  
 91.33     (b) For school district applications, the commissioner must 
 91.34  consider only those applications to participate that are 
 91.35  submitted jointly by a school district and the exclusive 
 91.36  representative of the teachers for participation in the 
 92.1   program.  The application must contain a formally adopted 
 92.2   collective bargaining agreement, memorandum of understanding, or 
 92.3   other binding agreement that: 
 92.4      (1) implements an alternative teacher professional pay 
 92.5   system consistent with section 122A.414; 
 92.6      (2) complies with the Public Employment Labor Relations Act 
 92.7   under chapter 179A, except that notwithstanding section 179A.20, 
 92.8   subdivision 3, a district may enter into a contract for a term 
 92.9   of between two and four years; and 
 92.10     (3) includes all teachers in a district, or all teachers at 
 92.11  a school site, or at least 25 percent of the teachers in a 
 92.12  district.  The commissioner, in approving applications, may give 
 92.13  preference to applications involving entire districts or sites 
 92.14  or to applications that align measures of teacher performance 
 92.15  with student academic achievement and progress under section 
 92.16  120B.35, subdivision 1.  
 92.17     Alternative teacher compensation aid revenue for a 
 92.18  qualifying school district, or site, or portion of a district or 
 92.19  school site is as follows: 
 92.20     (1) for a school district in which the school board and the 
 92.21  exclusive representative of the teachers agree to place all 
 92.22  teachers in the district or at the site on the 
 92.23  alternative compensation schedule, alternative compensation aid 
 92.24  teacher professional pay system equals $150 $260 times the 
 92.25  district's or the site's number of pupils enrolled on October 1 
 92.26  of the previous fiscal year; or 
 92.27     (2) for a district in which the school board and the 
 92.28  exclusive representative of the teachers agree that at least 25 
 92.29  percent of the district's licensed teachers will be paid on the 
 92.30  alternative compensation schedule, alternative compensation aid 
 92.31  equals $150 times the percentage of participating teachers times 
 92.32  the district's number of pupils enrolled as of October 1 of the 
 92.33  previous fiscal year.  
 92.34     (c) For charter school applications, the board of directors 
 92.35  of a charter school that satisfies the conditions under section 
 92.36  122A.414 must submit to the commissioner an application that 
 93.1   contains: 
 93.2      (1) an agreement to implement an alternative teacher 
 93.3   professional pay system under section 122A.414; 
 93.4      (2) a resolution by the charter school board of directors 
 93.5   adopting the agreement; and 
 93.6      (3) the record of a formal vote by the teachers employed at 
 93.7   the charter school indicating that at least 70 percent of all 
 93.8   teachers agree to implement the alternative teacher professional 
 93.9   pay system, unless the charter school submits an alternative 
 93.10  teacher professional pay system under section 122A.414 before 
 93.11  the first year of operation. 
 93.12     Alternative compensation revenue for a qualifying charter 
 93.13  school must be calculated under section 126C.10, subdivision 34, 
 93.14  paragraphs (a) and (b). 
 93.15     (b) (d) The revenue is available only to school districts, 
 93.16  school sites, and charter schools that implement an alternative 
 93.17  teacher professional pay system before the school year begins. 
 93.18     Sec. 41.  Minnesota Statutes 2004, section 122A.415, 
 93.19  subdivision 3, is amended to read: 
 93.20     Subd. 3.  [AID REVENUE TIMING.] (a) Districts or, school 
 93.21  sites, or charter schools with approved applications must 
 93.22  receive alternative compensation aid revenue for each school 
 93.23  year that the district or, school site, or charter school 
 93.24  participates in the program as described in under this 
 93.25  subdivision.  Districts or, school sites, or charter schools 
 93.26  with applications received approved by the commissioner before 
 93.27  June 1 of the first year of a two-year contract shall receive 
 93.28  alternative compensation aid revenue for both school years of 
 93.29  the contract.  Districts or sites with applications received by 
 93.30  the commissioner after June 1 of the first year of a two-year 
 93.31  contract shall receive alternative compensation aid only for the 
 93.32  second year of the contract in which the alternative teacher 
 93.33  professional pay system is implemented for the full school 
 93.34  year.  For fiscal year 2007 and later, a qualifying district or, 
 93.35  school site, or charter school that received alternative 
 93.36  compensation aid for the previous fiscal year must receive at 
 94.1   least an amount of alternative teacher compensation revenue 
 94.2   equal to the lesser of the amount it received for the previous 
 94.3   fiscal year or its proportionate share of the previous year's 
 94.4   appropriation the amount it qualifies for under subdivision 1 
 94.5   for the current fiscal year if the district or, school site, or 
 94.6   charter school submits a timely application and the commissioner 
 94.7   determines that the district or, school site, or charter school 
 94.8   continues to implement an alternative teacher professional pay 
 94.9   system, consistent with its application under this section.  The 
 94.10  commissioner must approve initial applications for school 
 94.11  districts qualifying under subdivision 1, paragraph (b), clause 
 94.12  (1), by January 15 of each year.  If any money remains, the 
 94.13  commissioner must approve aid amounts for school districts 
 94.14  qualifying under subdivision 1, paragraph (b), clause (2), by 
 94.15  February 15 of each year.  
 94.16     (b) The commissioner shall approve applications that comply 
 94.17  with sections 122A.414, subdivision 2, paragraph (b), and 
 94.18  122A.415, subdivision 1, in the order in which they are 
 94.19  received, select applicants that qualify for this program, 
 94.20  notify school districts and, school sites, and charter schools 
 94.21  about the program, develop and disseminate application 
 94.22  materials, and carry out other activities needed to implement 
 94.23  this section.  
 94.24     <b>[EFFECTIVE DATE.]</b> This section is effective August 1, 2005. 
 94.25     Sec. 42.  Minnesota Statutes 2004, section 123A.06, 
 94.26  subdivision 1, is amended to read: 
 94.27     Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
 94.28  services of a center must focus on academic and learning skills, 
 94.29  applied learning opportunities, trade and vocational skills, 
 94.30  work-based learning opportunities, work experience, youth 
 94.31  service to the community, transition services, and English 
 94.32  language and literacy programs for children whose primary 
 94.33  language is a language other than English, and may focus on 
 94.34  character development, consistent with section 120B.225, 
 94.35  subdivision 1.  Applied learning, work-based learning, and 
 94.36  service learning may best be developed in collaboration with a 
 95.1   local education and transitions partnership, culturally based 
 95.2   organizations, mutual assistance associations, or other 
 95.3   community resources.  In addition to offering programs, the 
 95.4   center shall coordinate the use of other available educational 
 95.5   services, special education services, social services, health 
 95.6   services, and postsecondary institutions in the community and 
 95.7   services area.  
 95.8      (b) Consistent with the requirements of sections 121A.40 to 
 95.9   121A.56, a school district may provide an alternative education 
 95.10  program for a student who is within the compulsory attendance 
 95.11  age under section 120A.20, and who is involved in severe or 
 95.12  repeated disciplinary action. 
 95.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 95.14  following final enactment. 
 95.15     Sec. 43.  [123A.10] [EDUCATION ADMINISTRATIVE DISTRICTS.] 
 95.16     Subdivision 1.  [ADMINISTRATIVE EFFICIENCY.] An education 
 95.17  administrative district is intended to increase the efficiency 
 95.18  of administrative services for kindergarten through grade 12 
 95.19  public schools by combining the administrative functions of 
 95.20  multiple school districts while preserving independent school 
 95.21  district control of individual school sites. 
 95.22     Subd. 2.  [AGREEMENT TO ESTABLISH EDUCATION ADMINISTRATIVE 
 95.23  DISTRICT.] School boards that meet the requirements of 
 95.24  subdivision 3 may enter into a written agreement to establish an 
 95.25  education administrative district.  The agreement must include 
 95.26  methods to improve the efficient delivery of administrative 
 95.27  services.  A majority of the full board of each member district 
 95.28  that is a party to the agreement must adopt the agreement and 
 95.29  any subsequent modifications of the agreement. 
 95.30     Subd. 3.  [COMMISSIONER REVIEW AND COMMENT.] Before 
 95.31  entering into an agreement to establish an education 
 95.32  administrative district, the school boards of the proposed 
 95.33  member districts jointly must submit the proposed agreement to 
 95.34  the commissioner for review and comment.  The commissioner must 
 95.35  submit a review and comment on the educational and economic 
 95.36  advisability of the proposed agreement to the affected school 
 96.1   boards within 60 days of receiving the proposal.  If the 
 96.2   commissioner submits a negative review and comment, the 
 96.3   districts do not qualify for levy authority under section 
 96.4   123A.12, subdivision 5. 
 96.5      Subd. 4.  [NOTICE AND PUBLIC HEARING ON PROPOSED 
 96.6   AGREEMENT.] Before entering into an agreement to establish an 
 96.7   education administrative district, the school boards of the 
 96.8   proposed member districts each must publish the commissioner's 
 96.9   review and comment and a summary of the proposed agreement and 
 96.10  its anticipated effect upon the district at least once in a 
 96.11  newspaper of general circulation in the district.  The board 
 96.12  must conduct a public hearing on the proposed agreement not more 
 96.13  than ten days after the notice is published and at least 30 days 
 96.14  before entering into the agreement. 
 96.15     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 96.16  2005-2006 school year and later. 
 96.17     Sec. 44.  [123A.11] [EDUCATION ADMINISTRATIVE DISTRICT 
 96.18  BOARD.] 
 96.19     Subdivision 1.  [SCHOOL DISTRICT REPRESENTATION.] The 
 96.20  education administrative district board is composed of at least 
 96.21  one representative appointed by the school board of each member 
 96.22  district.  Each representative must be a member of the 
 96.23  appointing school board.  Each representative serves at the 
 96.24  pleasure of the appointing board and may be recalled by a 
 96.25  majority vote of the appointing board.  Each representative 
 96.26  serves for the term specified in the agreement.  The board must 
 96.27  select its officers from among its members and determine the 
 96.28  officers' terms.  The board must adopt bylaws for conducting 
 96.29  business.  The board may conduct public meetings using 
 96.30  interactive television if it complies with chapter 13 in each 
 96.31  location where board members are present. 
 96.32     Subd. 2.  [PROVIDING ADMINISTRATIVE SERVICES.] An education 
 96.33  administrative district board must implement the agreement for 
 96.34  efficiently delivering needed administrative services under 
 96.35  section 123A.12 to the education administrative district. 
 96.36     Subd. 3.  [PERSONNEL.] The board may employ personnel 
 97.1   needed to provide administrative services to the education 
 97.2   administrative district.  Personnel employed by the education 
 97.3   administrative district are eligible to participate in 
 97.4   retirement programs.  Notwithstanding section 123B.143, 
 97.5   subdivision 1, a district member of an education administrative 
 97.6   district must contract with the education administrative 
 97.7   district to obtain superintendent services.  The person 
 97.8   providing superintendent services need not be an employee of the 
 97.9   education administrative district or a member district at the 
 97.10  time the person contracts to provide superintendent services. 
 97.11     Subd. 4.  [CONTRACTS.] The education administrative 
 97.12  district board may contract with school districts and other 
 97.13  public and private agencies to provide needed administrative 
 97.14  services in the education administrative district. 
 97.15     Subd. 5.  [GENERAL LAW.] The education administrative 
 97.16  district board is governed by section 471.59 unless specifically 
 97.17  provided otherwise under sections 123A.10 to 123A.12. 
 97.18     Subd. 6.  [ANNUAL REPORT.] After each of its first five 
 97.19  years of operation, the education administrative district board 
 97.20  must submit an annual report to its member districts and the 
 97.21  commissioner about the education administrative district's 
 97.22  activities, including an analysis of its administrative costs 
 97.23  and efficiencies. 
 97.24     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
 97.25  2005-2006 school year and later. 
 97.26     Sec. 45.  [123A.12] [EDUCATION ADMINISTRATIVE DISTRICT 
 97.27  AGREEMENT.] 
 97.28     Subdivision 1.  [IMPLEMENTATION; REVIEW.] An education 
 97.29  administrative district board must implement the agreement of 
 97.30  its member districts under section 123A.10, subdivision 2, to 
 97.31  provide efficient administrative services to the education 
 97.32  administrative district.  The board must review the agreement 
 97.33  annually and propose needed modifications to its member 
 97.34  districts. 
 97.35     Subd. 2.  [ADMINISTRATIVE SERVICES.] (a) Consistent with 
 97.36  section 123B.143, subdivision 1, the agreement must allow the 
 98.1   education administrative district board within 24 months of 
 98.2   implementing the agreement to select one superintendent to serve 
 98.3   the education administrative district for a specified term. 
 98.4      (b) The agreement must specify other noninstructional 
 98.5   services the education administrative district intends to 
 98.6   provide to member districts, including, among other services, 
 98.7   business management, human resources, payroll, food service, 
 98.8   buildings and ground maintenance, pupil transportation, 
 98.9   technology coordination, curriculum coordination, community 
 98.10  education, nursing services, student records, student 
 98.11  administrative services, and school building administration. 
 98.12     Subd. 3.  [TIMING AND DURATION.] (a) The initial agreement 
 98.13  must contain a timeline for implementing the agreement. 
 98.14     (b) The initial agreement must be for a period of at least 
 98.15  three years.  After completing the first two years, the 
 98.16  agreement may be extended by a majority vote of the full board 
 98.17  of each member district. 
 98.18     Subd. 4.  [FINANCES.] The initial agreement must: 
 98.19     (1) include a three-year budget projection comparing 
 98.20  existing administrative services and costs with proposed 
 98.21  administrative services and costs for each year; 
 98.22     (2) specify the retirement and severance incentives, 
 98.23  consistent with section 123A.48, subdivision 23, that may be 
 98.24  offered to licensed and nonlicensed staff, and how these costs 
 98.25  will be apportioned among member districts; 
 98.26     (3) specify other start-up costs for the education 
 98.27  administrative district and how these costs will be apportioned 
 98.28  among member districts; 
 98.29     (4) specify the estimated amounts each member district will 
 98.30  levy under subdivision 5 for the specified costs in clauses (2) 
 98.31  and (3); and 
 98.32     (5) specify an equitable distribution formula for the 
 98.33  education administrative district board to assess and certify a 
 98.34  proportionate share of expenses to member districts, which must 
 98.35  remit their assessment to the education administrative district 
 98.36  board within 30 days of receiving the certified assessment. 
 99.1      Subd. 5.  [LEVY.] A school district that is a member of an 
 99.2   education administrative district may levy an amount equal to 
 99.3   the member district's share of costs approved by the 
 99.4   commissioner for retirement and severance incentives and other 
 99.5   start-up costs included in the initial agreement under 
 99.6   subdivision 4, clauses (2) and (3), over a term of not more than 
 99.7   36 months. 
 99.8      Subd. 6.  [REPORTS TO EDUCATION DEPARTMENT.] Member school 
 99.9   districts jointly may submit reports and provide required 
 99.10  information to the department.  The joint reports clearly must 
 99.11  attribute information, including expenditures for the education 
 99.12  administrative district, to individual member districts. 
 99.13     Subd. 7.  [ADDITIONAL AND WITHDRAWING DISTRICTS.] (a) Upon 
 99.14  approval by a majority vote of a district school board and the 
 99.15  education administrative district board, an adjoining school 
 99.16  district may become a member of an education administrative 
 99.17  district and is governed by this section and the education 
 99.18  administrative district agreement in effect.  A noncontiguous 
 99.19  district may become a member with the commissioner's approval 
 99.20  based on the criteria under section 123A.10, subdivision 3.  A 
 99.21  new member added to an education administrative district may 
 99.22  levy for approved retirement and severance incentive costs under 
 99.23  subdivision 5. 
 99.24     (b) After three consecutive years of membership, a member 
 99.25  district, by majority vote of its full board and after complying 
 99.26  with the applicable terms in the education administrative 
 99.27  district agreement, may withdraw from the education 
 99.28  administrative district and the agreement at the end of the 
 99.29  subsequent fiscal year. 
 99.30     Subd. 8.  [DISSOLUTION.] After the first three years of the 
 99.31  education administrative district, the boards of each member 
 99.32  district may agree to dissolve the education administrative 
 99.33  district at the end of any fiscal year or at an earlier, 
 99.34  mutually agreeable time.  Member districts must dissolve the 
 99.35  education administrative district according to the applicable 
 99.36  provisions in the agreement establishing the education 
100.1   administrative district.  The dissolution must not affect the 
100.2   continuing liability of any district formerly a member of the 
100.3   education administrative district for continuing obligations, 
100.4   including employment benefits. 
100.5      <b>[EFFECTIVE DATE.]</b> This section is effective for the 
100.6   2005-2006 school year and later. 
100.7      Sec. 46.  Minnesota Statutes 2004, section 123A.24, 
100.8   subdivision 2, is amended to read: 
100.9      Subd. 2.  [COOPERATIVE UNIT DEFINED.] For the purposes of 
100.10  this section, a cooperative unit is: 
100.11     (1) an education district organized under sections 123A.15 
100.12  to 123A.19; 
100.13     (2) a cooperative vocational center organized under section 
100.14  123A.22; 
100.15     (3) an intermediate district organized under chapter 136D; 
100.16     (4) an education administrative district organized under 
100.17  sections 123A.10 to 123A.12; 
100.18     (5) a service cooperative organized under section 123A.21; 
100.19  or 
100.20     (5) (6) a regional management information center organized 
100.21  under section 123A.23 or as a joint powers district according to 
100.22  section 471.59.  
100.23     Sec. 47.  Minnesota Statutes 2004, section 123B.02, is 
100.24  amended by adding a subdivision to read: 
100.25     Subd. 22.  [REWARD.] A school board, after formally 
100.26  adopting a policy consistent with this subdivision, may offer a 
100.27  reward to a person who provides accurate and reliable 
100.28  information leading to the conviction of a person who has 
100.29  committed, attempted to commit, or conspired to commit a crime 
100.30  against students or school employees, volunteers or board 
100.31  members as a result of their affiliation with the school 
100.32  district, or against school district property. 
100.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
100.34  following final enactment. 
100.35     Sec. 48.  [123B.022] [PROHIBITING SCHOOL EMPLOYEES FROM 
100.36  USING PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND 
101.1   CURRENT FACTUAL INFORMATION.] 
101.2      (a) A school board must adopt and implement a districtwide 
101.3   policy that prohibits district employees from using district 
101.4   funds or other publicly funded district resources, including 
101.5   time, materials, equipment, facilities, and communication 
101.6   technologies, among other resources, to advocate for electing or 
101.7   defeating a candidate, passing or defeating a ballot question, 
101.8   or passing or defeating pending legislation.  The policy must 
101.9   apply when the employee performs the duties assigned to the 
101.10  employee under the employee's employment contract with the 
101.11  district, and includes the periods when the employee represents 
101.12  the district in an official capacity, among other duties.  The 
101.13  policy must not apply when an employee disseminates factual 
101.14  information consistent with the employee's contractual duties.  
101.15     (b) The school board must provide the district's electorate 
101.16  with timely factual information about a pending ballot question. 
101.17     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2006.
101.18     Sec. 49.  [123B.042] [SCHOOL SITE GOVERNANCE PROGRAM.] 
101.19     Subdivision 1.  [ESTABLISHMENT.] A school site governance 
101.20  program is established to provide schools with more authority 
101.21  and flexibility to teach and provide services to students at the 
101.22  school site.  Nothing in this section affects a school 
101.23  district's ability to enter into a school site decision-making 
101.24  agreement under section 123B.04.  
101.25     Subd. 2.  [SITE DECISION-MAKING TEAM.] (a) To participate 
101.26  in the program, a school must form a site decision-making team 
101.27  that includes a school principal or other persons having general 
101.28  control and supervision of the school, at least one teacher in 
101.29  the school, one noninstructional staff person in the school, and 
101.30  at least one parent of a student enrolled in the school or other 
101.31  community member.  By October 1 of the school year before 
101.32  participating in the program, the school site decision-making 
101.33  team must: 
101.34     (1) be approved by a 60 percent vote of employees in the 
101.35  school; 
101.36     (2) adopt a policy describing how it will delegate 
102.1   authority and responsibilities among its members; and 
102.2      (3) notify the school board of its intent to participate in 
102.3   the program. 
102.4      (b) After notifying the school board under paragraph (a), 
102.5   clause (3), the school site decision-making team shall publish a 
102.6   notice in a newspaper of general circulation in the district of 
102.7   its intent to participate in the program and the date it will 
102.8   hold a public hearing about its intended participation.  In 
102.9   addition to holding the public hearing, the decision-making 
102.10  team, for a period of 30 days, must also solicit parent and 
102.11  community input regarding its intended participation. 
102.12     (c) By January 15, the decision-making team shall 
102.13  demonstrate to the school board how the team's plan responds to 
102.14  public comment. 
102.15     Subd. 3.  [RESPONSIBILITIES; REVENUE.] (a) A school site 
102.16  decision-making team participating in this program: 
102.17     (1) has the control and responsibilities of the school 
102.18  board for operating and managing the site after the agreement 
102.19  under paragraph (b) is signed, including such responsibilities 
102.20  as instructional practices, personnel selection from within the 
102.21  district, and staffing assignments for the school; and 
102.22     (2) retains control of the revenue and determines its use 
102.23  as necessary to operate the school for the school years it 
102.24  participates in the program under this section. 
102.25     (b) By January 15 of the school year before participating 
102.26  in the program, the school site decision-making team must enter 
102.27  into a written agreement with the local school board describing 
102.28  the control and responsibilities of the decision-making team and 
102.29  of the school board.  Revenue for a fiscal year received or 
102.30  receivable by the district and that the district would expend 
102.31  for the particular school site participating in the program is 
102.32  allocated to that school site.  All other district revenue not 
102.33  reserved for other purposes must be proportionately allocated to 
102.34  the site based on the site's pupil count.  The agreement must 
102.35  include provisions describing how the decision-making team and 
102.36  school board will resolve disputes over assigned authority and 
103.1   responsibilities.  The school board members must vote whether to 
103.2   authorize the agreement under this paragraph according to 
103.3   section 123B.09, subdivision 6.  The decision of the school 
103.4   board is final.  If the school board does not authorize the 
103.5   agreement, the school board must publish its decision and 
103.6   reasons in a newspaper of general circulation in the district. 
103.7      (c) The district must maintain an account for each school 
103.8   site participating in the program. 
103.9      (d) The school site decision-making team must comply with 
103.10  section 13D.04, subdivision 1. 
103.11     Subd. 4.  [EMPLOYEES.] The employees of the school site 
103.12  remain employees of the school district for salary, benefits, 
103.13  seniority, retirement, and other personnel issues.  Consistent 
103.14  with current law and the collective bargaining agreement in 
103.15  effect, the school site decision-making team selects employees 
103.16  from within the district into licensed and nonlicensed positions 
103.17  at the school site, including the position of principal or other 
103.18  person having general control and supervision of the school.  
103.19  When negotiating a new contract under chapter 179A, an exclusive 
103.20  representative and school board must provide for the employees 
103.21  of a school site participating in the program under this section.
103.22     Subd. 5.  [PERFORMANCE AGREEMENTS.] By March 15 of the 
103.23  school year before participating in the program, the school site 
103.24  decision-making team shall enter into a performance agreement 
103.25  with the school board.  The agreement shall include: 
103.26     (1) the previous year's baseline information at the site 
103.27  regarding student achievement based on: 
103.28     (i) aggregated and disaggregated statewide testing data; 
103.29     (ii) other nationally normed standardized tests; 
103.30     (iii) student attendance; and 
103.31     (iv) dropout rates and graduation rates, where applicable; 
103.32     (2) the expected levels of improvement in selected areas of 
103.33  student performance during the next year; 
103.34     (3) how student performance will be measured, including 
103.35  assessment procedures required by law and rule; 
103.36     (4) status of the school's revenues and expenditures; 
104.1      (5) other performance expectations and measures agreed upon 
104.2   by the school site and school board; 
104.3      (6) the frequency of reporting by the school site to the 
104.4   school board; and 
104.5      (7) how the performance results will be made available to 
104.6   parents and the public. 
104.7      The term of an agreement shall be for no more than two 
104.8   years. 
104.9      The performance agreement must include provisions 
104.10  describing how the school board and school site decision-making 
104.11  team will resolve disputes over the school's compliance with 
104.12  provisions of the agreement. 
104.13     If the school site decision-making team and school board 
104.14  cannot agree on the provisions of a performance agreement as 
104.15  required under this subdivision, either party may request 
104.16  assistance from the commissioner of education.  The commissioner 
104.17  shall provide assistance to the parties to ensure they reach an 
104.18  agreement. 
104.19     Subd. 6.  [TERMINATION OF SITE-BASED PROGRAM AUTHORITY.] If 
104.20  a school site fails to meet the agreed upon expectations as 
104.21  specified in the performance agreement with the school board for 
104.22  two consecutive school years, its authority to participate in 
104.23  the program is terminated. 
104.24     School sites that have had their authority to participate 
104.25  in this program terminated under this subdivision may not 
104.26  participate in this program for three years after termination. 
104.27     Subd. 7.  [REPORTS.] A school site decision-making team 
104.28  shall, and its respective school board may, make an annual 
104.29  report to the commissioner of education by September 1.  The 
104.30  reports shall be consistent with the requirements of section 
104.31  120B.11, subdivision 5, paragraph (a). 
104.32     Subd. 8.  [COMMISSIONER'S DUTY.] The commissioner of 
104.33  education shall evaluate the effectiveness of the program by 
104.34  January 1, 2010. 
104.35     Sec. 50.  Minnesota Statutes 2004, section 123B.09, 
104.36  subdivision 8, is amended to read: 
105.1      Subd. 8.  [DUTIES.] The board must superintend and manage 
105.2   the schools of the district; adopt rules for their organization, 
105.3   government, and instruction; keep registers; and prescribe 
105.4   textbooks and courses of study.  The board may enter into an 
105.5   agreement with a postsecondary institution for secondary or 
105.6   postsecondary nonsectarian courses to be taught at a secondary 
105.7   school, nonsectarian postsecondary institution, or another 
105.8   location.  The board must not enter into an agreement that 
105.9   limits its authority to assign and reassign teachers or 
105.10  administrators to the schools in which the teachers will teach 
105.11  or the administrators will administer. 
105.12     <b>[EFFECTIVE DATE.]</b> This section is effective for agreements 
105.13  entered into on or after July 1, 2005. 
105.14     Sec. 51.  Minnesota Statutes 2004, section 123B.143, 
105.15  subdivision 1, is amended to read: 
105.16     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
105.17  maintaining a classified secondary school must employ a 
105.18  superintendent who shall be an ex officio nonvoting member of 
105.19  the school board.  The authority for selection and employment of 
105.20  a superintendent must be vested in the board in all cases.  An 
105.21  individual employed by a board as a superintendent shall have an 
105.22  initial employment contract for a period of time no longer than 
105.23  three years from the date of employment.  Any subsequent 
105.24  employment contract must not exceed a period of three years.  A 
105.25  board, at its discretion, may or may not renew an employment 
105.26  contract.  A board must not, by action or inaction, extend the 
105.27  duration of an existing employment contract.  Beginning 365 days 
105.28  prior to the expiration date of an existing employment contract, 
105.29  a board may negotiate and enter into a subsequent employment 
105.30  contract to take effect upon the expiration of the existing 
105.31  contract.  A subsequent contract must be contingent upon the 
105.32  employee completing the terms of an existing contract.  If a 
105.33  contract between a board and a superintendent is terminated 
105.34  prior to the date specified in the contract, the board may not 
105.35  enter into another superintendent contract with that same 
105.36  individual that has a term that extends beyond the date 
106.1   specified in the terminated contract.  A board may terminate a 
106.2   superintendent during the term of an employment contract for any 
106.3   of the grounds specified in section 122A.40, subdivision 9 or 13.
106.4   A superintendent shall not rely upon an employment contract with 
106.5   a board to assert any other continuing contract rights in the 
106.6   position of superintendent under section 122A.40.  
106.7   Notwithstanding the provisions of sections 122A.40, subdivision 
106.8   10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
106.9   individual shall have a right to employment as a superintendent 
106.10  based on order of employment in any district.  If two or more 
106.11  districts enter into an agreement for the purchase or sharing of 
106.12  the services of a superintendent, the contracting districts have 
106.13  the absolute right to select one of the individuals employed to 
106.14  serve as superintendent in one of the contracting districts and 
106.15  no individual has a right to employment as the superintendent to 
106.16  provide all or part of the services based on order of employment 
106.17  in a contracting district. The superintendent of a district 
106.18  shall perform the following:  
106.19     (1) visit and supervise the schools in the district, report 
106.20  and make recommendations about their condition when advisable or 
106.21  on request by the board; 
106.22     (2) recommend to the board employment and dismissal of 
106.23  teachers; 
106.24     (3) superintend school grading practices and examinations 
106.25  for promotions; 
106.26     (4) make reports required by the commissioner; and 
106.27     (5) by January 10, submit an annual report to the 
106.28  commissioner in a manner prescribed by the commissioner, in 
106.29  consultation with school districts, identifying the expenditures 
106.30  that the district requires to ensure an 80 percent student 
106.31  passage rate on the basic standards test taken in the eighth 
106.32  grade, identifying the highest student passage rate the district 
106.33  expects it will be able to attain on the basic standards test by 
106.34  grade 12, the amount of expenditures that the district requires 
106.35  to attain the targeted student passage rate, and how much the 
106.36  district is cross-subsidizing programs with special education, 
107.1   basic skills, and general education revenue; and 
107.2      (6) perform other duties prescribed by the board. 
107.3      Sec. 52.  Minnesota Statutes 2004, section 123B.36, 
107.4   subdivision 1, is amended to read: 
107.5      Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
107.6   purposes of this subdivision, "home school" means a home school 
107.7   as defined in sections 120A.22 and 120A.24 with five or fewer 
107.8   students receiving instruction.  
107.9      (b) A school board is authorized to require payment of fees 
107.10  in the following areas: 
107.11     (1) in any program where the resultant product, in excess 
107.12  of minimum requirements and at the pupil's option, becomes the 
107.13  personal property of the pupil; 
107.14     (2) admission fees or charges for extracurricular 
107.15  activities, where attendance is optional and where the admission 
107.16  fees or charges a student must pay to attend or participate in 
107.17  an extracurricular activity is the same for all students, 
107.18  regardless of whether the student is enrolled in a public or a 
107.19  home school; 
107.20     (3) a security deposit for the return of materials, 
107.21  supplies, or equipment; 
107.22     (4) personal physical education and athletic equipment and 
107.23  apparel, although any pupil may personally provide it if it 
107.24  meets reasonable requirements and standards relating to health 
107.25  and safety established by the board; 
107.26     (5) items of personal use or products that a student has an 
107.27  option to purchase such as student publications, class rings, 
107.28  annuals, and graduation announcements; 
107.29     (6) fees specifically permitted by any other statute, 
107.30  including but not limited to section 171.05, subdivision 2; 
107.31  provided (i) driver education fees do not exceed the actual cost 
107.32  to the school and school district of providing driver education, 
107.33  and (ii) the driver education courses are open to enrollment to 
107.34  persons between the ages of 15 and 18 who reside or attend 
107.35  school in the school district; 
107.36     (7) field trips considered supplementary to a district 
108.1   educational program; 
108.2      (8) any authorized voluntary student health and accident 
108.3   benefit plan; 
108.4      (9) for the use of musical instruments owned or rented by 
108.5   the district, a reasonable rental fee not to exceed either the 
108.6   rental cost to the district or the annual depreciation plus the 
108.7   actual annual maintenance cost for each instrument; 
108.8      (10) transportation of pupils to and from extracurricular 
108.9   activities conducted at locations other than school, where 
108.10  attendance is optional, and transportation of charter school 
108.11  students participating in extracurricular activities in their 
108.12  resident district under section 123B.49, subdivision 4, 
108.13  paragraph (a), which must be charged to the charter school; 
108.14     (11) transportation to and from school of pupils living 
108.15  within two miles from school and all other transportation 
108.16  services not required by law.  If a district charges fees for 
108.17  transportation of pupils, it must establish guidelines for that 
108.18  transportation to ensure that no pupil is denied transportation 
108.19  solely because of inability to pay; 
108.20     (12) motorcycle classroom education courses conducted 
108.21  outside of regular school hours; provided the charge must not 
108.22  exceed the actual cost of these courses to the school district; 
108.23     (13) transportation to and from postsecondary institutions 
108.24  for pupils enrolled under the postsecondary enrollment options 
108.25  program under section 123B.88, subdivision 22.  Fees collected 
108.26  for this service must be reasonable and must be used to reduce 
108.27  the cost of operating the route.  Families who qualify for 
108.28  mileage reimbursement under section 124D.09, subdivision 22, may 
108.29  use their state mileage reimbursement to pay this fee.  If no 
108.30  fee is charged, districts must allocate costs based on the 
108.31  number of pupils riding the route. 
108.32     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
108.33  2005-2006 school year and later.  
108.34     Sec. 53.  Minnesota Statutes 2004, section 123B.49, 
108.35  subdivision 4, is amended to read: 
108.36     Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
109.1   (a) The board may take charge of and control all extracurricular 
109.2   activities of the teachers and children of the public schools in 
109.3   the district.  Extracurricular activities means all direct and 
109.4   personal services for pupils for their enjoyment that are 
109.5   managed and operated under the guidance of an adult or staff 
109.6   member.  The board shall allow all resident pupils receiving 
109.7   instruction in a home school as defined in section 123B.36, 
109.8   subdivision 1, paragraph (a), and all resident pupils receiving 
109.9   instruction in a charter school as defined in section 124D.10 to 
109.10  be eligible to fully participate in extracurricular activities 
109.11  on the same basis as public school students. enrolled in the 
109.12  district's schools.  A charter school student must give the 
109.13  enrolling charter school and the resident school district at 
109.14  least a 30-day notice of the student's intent to participate in 
109.15  an extracurricular activity in the resident district.  Before a 
109.16  charter school student begins participating in an 
109.17  extracurricular activity in the resident district, the charter 
109.18  school must agree in writing to pay the direct and indirect 
109.19  costs attributable to that student that the district may charge 
109.20  to the charter school under paragraph (f).  A charter school 
109.21  student is not eligible to participate in an extracurricular 
109.22  activity in the resident district if that extracurricular 
109.23  activity is offered by the enrolling charter school or the 
109.24  extracurricular activity is not controlled by the high school 
109.25  league under chapter 128C.  Charter school students 
109.26  participating in extracurricular activities must meet the 
109.27  academic and student conduct requirements of the resident 
109.28  district.  The charter school must: 
109.29     (1) collect the same information that a district collects 
109.30  on a student's eligibility to participate in an extracurricular 
109.31  activity; 
109.32     (2) transmit that information to the district at least ten 
109.33  days before a student begins to participate in the 
109.34  extracurricular activity; and 
109.35     (3) immediately transmit to the district any additional 
109.36  information affecting the student's eligibility. 
110.1      (b) Extracurricular activities have all of the following 
110.2   characteristics: 
110.3      (1) they are not offered for school credit nor required for 
110.4   graduation; 
110.5      (2) they are generally conducted outside school hours, or 
110.6   if partly during school hours, at times agreed by the 
110.7   participants, and approved by school authorities; 
110.8      (3) the content of the activities is determined primarily 
110.9   by the pupil participants under the guidance of a staff member 
110.10  or other adult. 
110.11     (c) If the board does not take charge of and control 
110.12  extracurricular activities, these activities shall be 
110.13  self-sustaining with all expenses, except direct salary costs 
110.14  and indirect costs of the use of school facilities, met by dues, 
110.15  admissions, or other student fund-raising events.  The general 
110.16  fund must reflect only those salaries directly related to and 
110.17  readily identified with the activity and paid by public funds.  
110.18  Other revenues and expenditures for extracurricular activities 
110.19  must be recorded according to the "Manual of Instruction for 
110.20  Uniform Student Activities Activity Fund Accounting for 
110.21  Minnesota School Districts and Area Vocational-Technical 
110.22  Colleges."  Extracurricular activities not under board control 
110.23  must have an annual financial audit and must also be audited 
110.24  annually for compliance with this section. 
110.25     (d) If the board takes charge of and controls 
110.26  extracurricular activities, any or all costs of these activities 
110.27  may be provided from school revenues and all revenues and 
110.28  expenditures for these activities shall be recorded in the same 
110.29  manner as other revenues and expenditures of the district.  
110.30     (e) If the board takes charge of and controls 
110.31  extracurricular activities, the teachers or pupils in the 
110.32  district must not participate in such activity, nor shall the 
110.33  school name or any allied name be used in connection therewith, 
110.34  except by consent and direction of the board. 
110.35     (f) School districts may charge charter schools their 
110.36  proportional share of the direct and indirect costs of the 
111.1   extracurricular activities that are not covered by student fees 
111.2   under section 123B.36, subdivision 1, ticket revenues, 
111.3   fund-raising efforts, sponsorships, or other income generated 
111.4   for those activities for which the charter school is charged.  A 
111.5   district may charge charter school students the same fees it 
111.6   charges enrolled students to participate in an extracurricular 
111.7   activity.  All charges to a charter school and charter school 
111.8   students must be paid when the charter school students are 
111.9   selected to participate in the activity.  A district is not 
111.10  required to provide transportation from the charter school to 
111.11  the resident district for a charter school student who 
111.12  participates in an extracurricular activity in the resident 
111.13  district. 
111.14     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
111.15  2005-2006 school year and later. 
111.16     Sec. 54.  Minnesota Statutes 2004, section 124D.095, 
111.17  subdivision 8, is amended to read: 
111.18     Subd. 8.  [FINANCIAL ARRANGEMENTS.] (a) For a student 
111.19  enrolled in an on-line learning course, the department must 
111.20  calculate average daily membership and make payments according 
111.21  to this subdivision. 
111.22     (b) The initial on-line learning average daily membership 
111.23  equals 1/12 for each semester course or a proportionate amount 
111.24  for courses of different lengths.  The adjusted on-line learning 
111.25  average daily membership equals the initial on-line learning 
111.26  average daily membership times .88. 
111.27     (c) No on-line learning average daily membership shall be 
111.28  generated if:  (1) the student does not complete the on-line 
111.29  learning course, or (2) the student is enrolled in on-line 
111.30  learning provided by the enrolling district and the student was 
111.31  enrolled in a Minnesota public school for the school year before 
111.32  the school year in which the student first enrolled in on-line 
111.33  learning. 
111.34     (d) On-line learning average daily membership under this 
111.35  subdivision for a student currently enrolled in a Minnesota 
111.36  public school and who was enrolled in a Minnesota public school 
112.1   for the school year before the school year in which the student 
112.2   first enrolled in on-line learning shall be used only for 
112.3   computing average daily membership according to section 126C.05, 
112.4   subdivision 19, paragraph (a), clause (ii), and for computing 
112.5   on-line learning aid according to section 126C.24 124D.096. 
112.6      (e) On-line learning average daily membership under this 
112.7   subdivision for students not included in paragraph (c) or (d) 
112.8   shall be used only for computing average daily membership 
112.9   according to section 126C.05, subdivision 19, paragraph (a), 
112.10  clause (ii), and for computing payments under paragraphs (f) and 
112.11  (g). 
112.12     (f) Subject to the limitations in this subdivision, the 
112.13  department must pay an on-line learning provider an amount equal 
112.14  to the product of the adjusted on-line learning average daily 
112.15  membership for students under paragraph (e) times the student 
112.16  grade level weighting under section 126C.05, subdivision 1, 
112.17  times the formula allowance. 
112.18     (g) The department must pay each on-line learning provider 
112.19  100 percent of the amount in paragraph (f) within 45 days of 
112.20  receiving final enrollment and course completion information 
112.21  each quarter or semester. 
112.22     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
112.23  fiscal year 2006. 
112.24     Sec. 55.  Minnesota Statutes 2004, section 124D.10, 
112.25  subdivision 3, is amended to read: 
112.26     Subd. 3.  [SPONSOR.] (a) A school board; intermediate 
112.27  school district school board; education district organized under 
112.28  sections 123A.15 to 123A.19; charitable organization under 
112.29  section 501(c)(3) of the Internal Revenue Code of 1986 that is a 
112.30  member of the Minnesota Council of Nonprofits or the Minnesota 
112.31  Council on Foundations, registered with the attorney general's 
112.32  office, and reports an end-of-year fund balance of at least 
112.33  $2,000,000; Minnesota private college that grants two- or 
112.34  four-year degrees and is registered with the Higher Education 
112.35  Services Office under chapter 136A; community college, state 
112.36  university, or technical college, governed by the Board of 
113.1   Trustees of the Minnesota State Colleges and Universities; or 
113.2   the University of Minnesota may sponsor one or more charter 
113.3   schools.  
113.4      (b) A nonprofit corporation subject to chapter 317A, 
113.5   described in section 317A.905, and exempt from federal income 
113.6   tax under section 501(c)(6) of the Internal Revenue Code of 
113.7   1986, may sponsor one or more charter schools if the charter 
113.8   school has operated for at least three years under a different 
113.9   sponsor and if the nonprofit corporation has existed for at 
113.10  least 25 years.  
113.11     (c) The commissioner of education may approve up to five 
113.12  charitable organizations under section 501(c)(3) of the Internal 
113.13  Revenue Code of 1986 that sponsor charter schools as their sole 
113.14  charitable purpose.  Eligible charitable organizations 
113.15  interested in being approved as a sponsor under this paragraph 
113.16  must submit a proposal to the commissioner that includes: 
113.17     (1) the articles, bylaws, and initial membership of the 
113.18  charitable organization's board of directors; 
113.19     (2) financial information consistent with section 309.53, 
113.20  subdivision 3; 
113.21     (3) a description of how the charitable organization plans 
113.22  to realize its principle charitable purpose; and 
113.23     (4) other information requested by the commissioner. 
113.24     A charitable organization that is approved as a sponsor 
113.25  under this paragraph annually must report to the commissioner in 
113.26  the form and manner the commissioner determines.  The report 
113.27  must describe the charter schools authorized by the charitable 
113.28  organization, the effectiveness of those charter schools in 
113.29  promoting student achievement, and the governance structure of 
113.30  those charter schools, and also must include other information 
113.31  requested by the commissioner.  An approved charitable 
113.32  organization may sponsor one or more charter schools.  The 
113.33  commissioner may withdraw the approval of a charitable 
113.34  organization to sponsor a charter school under this paragraph if 
113.35  the commissioner determines that the charitable organization 
113.36  fails to meet generally accepted standards of fiscal management, 
114.1   violates the law, or shows other good cause.  The commissioner's 
114.2   determination is final.  When the commissioner withdraws the 
114.3   approval of a charitable organization to sponsor a charter 
114.4   school, the commissioner may approve the decision of a different 
114.5   eligible sponsor to authorize the charter school or may apply 
114.6   subdivision 24 governing student enrollment when a charter 
114.7   school contract is not renewed or terminated. 
114.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
114.9   following final enactment. 
114.10     Sec. 56.  Minnesota Statutes 2004, section 124D.10, 
114.11  subdivision 4, is amended to read: 
114.12     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
114.13  authorize one or more licensed teachers under section 122A.18, 
114.14  subdivision 1, to operate a charter school subject to approval 
114.15  by the commissioner.  A board must vote on charter school 
114.16  application for sponsorship no later than 90 days after 
114.17  receiving the application.  After 90 days, the applicant may 
114.18  apply to the commissioner.  If a board elects not to sponsor a 
114.19  charter school, the applicant may appeal the board's decision to 
114.20  the commissioner.  The commissioner who may elect to sponsor the 
114.21  charter school or assist the applicant in finding an eligible 
114.22  sponsor.  The school must be organized and operated as a 
114.23  cooperative under chapter 308A or nonprofit corporation under 
114.24  chapter 317A and the provisions under the applicable chapter 
114.25  shall apply to the school except as provided in this section.  
114.26  Notwithstanding sections 465.717 and 465.719, a school district 
114.27  may create a corporation for the purpose of creating a charter 
114.28  school.  
114.29     (b) Before the operators may form and operate a school, the 
114.30  sponsor must file an affidavit with the commissioner stating its 
114.31  intent to authorize a charter school.  The affidavit must state 
114.32  the terms and conditions under which the sponsor would authorize 
114.33  a charter school and how the sponsor intends to oversee the 
114.34  fiscal and student performance of the charter school and to 
114.35  comply with the terms of the written contract between the 
114.36  sponsor and the charter school board of directors under 
115.1   subdivision 6.  The commissioner must approve or disapprove the 
115.2   sponsor's proposed authorization within 60 90 days of receipt of 
115.3   the affidavit.  Failure to obtain commissioner approval 
115.4   precludes a sponsor from authorizing the charter school that was 
115.5   the subject of the affidavit.  
115.6      (c) The operators authorized to organize and operate a 
115.7   school, before entering into a contract or other agreement for 
115.8   professional or other services, goods, or facilities, must 
115.9   incorporate as a cooperative under chapter 308A or as a 
115.10  nonprofit corporation under chapter 317A and must establish a 
115.11  board of directors composed of at least five members until a 
115.12  timely election for members of the charter school board of 
115.13  directors is held according to the school's articles and 
115.14  bylaws.  A charter school board of directors must be composed of 
115.15  at least five members.  Any staff members who are employed at 
115.16  the school, including teachers providing instruction under a 
115.17  contract with a cooperative, and all parents of children 
115.18  enrolled in the school may participate in the election for 
115.19  members of the school's board of directors.  Licensed teachers 
115.20  employed at the school, including teachers providing instruction 
115.21  under a contract with a cooperative, must be a majority of the 
115.22  members of the board of directors before the school completes 
115.23  its third year of operation, unless the commissioner waives the 
115.24  requirement for a majority of licensed teachers on the board.  
115.25  Board of director meetings must comply with chapter 13D. 
115.26     (d) The granting or renewal of a charter by a sponsoring 
115.27  entity must not be conditioned upon the bargaining unit status 
115.28  of the employees of the school.  
115.29     (e) A sponsor may authorize the operators of a charter 
115.30  school to expand the operation of the charter school to 
115.31  additional sites or to add additional grades at the school 
115.32  beyond those described in the sponsor's application as approved 
115.33  by the commissioner only after submitting a supplemental 
115.34  application to the commissioner in a form and manner prescribed 
115.35  by the commissioner.  The supplemental application must provide 
115.36  evidence that: 
116.1      (1) the expansion of the charter school is supported by 
116.2   need and projected enrollment; 
116.3      (2) the charter school is fiscally sound; 
116.4      (3) the sponsor supports the expansion; and 
116.5      (4) the building of the additional site meets all health 
116.6   and safety requirements to be eligible for lease aid. 
116.7      (f) The commissioner annually must provide timely financial 
116.8   management training to newly elected members of a charter school 
116.9   board of directors and ongoing training to other members of a 
116.10  charter school board of directors.  Training must address ways 
116.11  to: 
116.12     (1) proactively assess opportunities for a charter school 
116.13  to maximize all available revenue sources; 
116.14     (2) establish and maintain complete, auditable records for 
116.15  the charter school; 
116.16     (3) establish proper filing techniques; 
116.17     (4) document formal actions of the charter school, 
116.18  including meetings of the charter school board of directors; 
116.19     (5) properly manage and retain charter school and student 
116.20  records; 
116.21     (6) comply with state and federal payroll record-keeping 
116.22  requirements; and 
116.23     (7) address other similar factors that facilitate 
116.24  establishing and maintaining complete records on the charter 
116.25  school's operations.  
116.26     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
116.27  2005-2006 school year and later. 
116.28     Sec. 57.  Minnesota Statutes 2004, section 124D.10, 
116.29  subdivision 6, is amended to read: 
116.30     Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
116.31  charter school must be in the form of a written contract signed 
116.32  by the sponsor and the board of directors of the charter 
116.33  school.  The contract must be completed within 90 days of the 
116.34  commissioner's approval of the sponsor's proposed authorization. 
116.35  The contract for a charter school must be in writing and contain 
116.36  at least the following: 
117.1      (1) a description of a program that carries out one or more 
117.2   of the purposes in subdivision 1; 
117.3      (2) specific outcomes pupils are to achieve under 
117.4   subdivision 10; 
117.5      (3) admission policies and procedures; 
117.6      (4) management and administration of the school; 
117.7      (5) requirements and procedures for program and financial 
117.8   audits; 
117.9      (6) how the school will comply with subdivisions 8, 13, 16, 
117.10  and 23; 
117.11     (7) assumption of liability by the charter school; 
117.12     (8) types and amounts of insurance coverage to be obtained 
117.13  by the charter school; 
117.14     (9) the term of the contract, which may be up to three 
117.15  years; and 
117.16     (10) if the board of directors or the operators of the 
117.17  charter school provide special instruction and services for 
117.18  children with a disability under sections 125A.03 to 125A.24, 
117.19  and 125A.65, a description of the financial parameters within 
117.20  which the charter school will operate to provide the special 
117.21  instruction and services to children with a disability; and 
117.22     (11) the process and criteria the sponsor intends to use to 
117.23  monitor and evaluate the fiscal and student performance of the 
117.24  charter school, consistent with subdivision 15. 
117.25     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
117.26  2005-2006 school year and later. 
117.27     Sec. 58.  Minnesota Statutes 2004, section 124D.10, 
117.28  subdivision 8, is amended to read: 
117.29     Subd. 8.  [STATE AND LOCAL REQUIREMENTS.] (a) A charter 
117.30  school shall meet all applicable state and local health and 
117.31  safety requirements. 
117.32     (b) A school sponsored by a school board may be located in 
117.33  any district, unless the school board of the district of the 
117.34  proposed location disapproves by written resolution.  
117.35     (c) A charter school must be nonsectarian in its programs, 
117.36  admission policies, employment practices, and all other 
118.1   operations.  A sponsor may not authorize a charter school or 
118.2   program that is affiliated with a nonpublic sectarian school or 
118.3   a religious institution. 
118.4      (d) Charter schools must not be used as a method of 
118.5   providing education or generating revenue for students who are 
118.6   being homeschooled. 
118.7      (e) The primary focus of a charter school must be to 
118.8   provide a comprehensive program of instruction for at least one 
118.9   grade or age group from five through 18 years of age.  
118.10  Instruction may be provided to people younger than five years 
118.11  and older than 18 years of age. 
118.12     (f) A charter school may not charge tuition. 
118.13     (g) A charter school is subject to and must comply with 
118.14  chapter 363A and section 121A.04. 
118.15     (h) A charter school is subject to and must comply with the 
118.16  Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 
118.17  Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 
118.18     (i) A charter school is subject to the same financial 
118.19  audits, audit procedures, and audit requirements as a district.  
118.20  Audits must be conducted in compliance with generally accepted 
118.21  governmental auditing standards, the Federal Single Audit Act, 
118.22  if applicable, and section 6.65.  A charter school is subject to 
118.23  and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 
118.24  118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 
118.25  471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 
118.26  4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must 
118.27  comply with the requirements of sections 123B.75 to 123B.83, 
118.28  except to the extent deviations are necessary because of the 
118.29  program at the school.  Deviations must be approved by the 
118.30  commissioner.  The Department of Education, state auditor, or 
118.31  legislative auditor may conduct financial, program, or 
118.32  compliance audits.  A charter school determined to be in 
118.33  statutory operating debt under sections 123B.81 to 123B.83 must 
118.34  submit a plan under section 123B.81, subdivision 4. 
118.35     (j) A charter school is a district for the purposes of tort 
118.36  liability under chapter 466. 
119.1      (k) A charter school must comply with sections 13.32; 
119.2   120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 
119.3   and 5.  
119.4      (l) A charter school is subject to the Pledge of Allegiance 
119.5   requirement under section 121A.11, subdivision 3. 
119.6      (m) A charter school is subject to sections 123B.36, 
119.7   subdivision 1, paragraph (b), clause (10), and 123B.49, 
119.8   subdivision 4, paragraphs (a) and (f), when its students 
119.9   participate in extracurricular activities in their resident 
119.10  district.  
119.11     (n) Charter school board of director open meeting 
119.12  requirements are governed according to subdivision 4. 
119.13     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
119.14  2005-2006 school year and later. 
119.15     Sec. 59.  Minnesota Statutes 2004, section 124D.10, 
119.16  subdivision 15, is amended to read: 
119.17     Subd. 15.  [REVIEW AND COMMENT.] (a) The department must 
119.18  review and comment on the evaluation, by the sponsor, of the 
119.19  performance of a charter school before the charter school's 
119.20  contract is renewed for another contract term.  The sponsor must 
119.21  submit to the commissioner timely information for the review and 
119.22  comment.  
119.23     (b) A sponsor shall monitor and evaluate the fiscal and 
119.24  student performance of the school, and may for this purpose 
119.25  annually assess a charter school:  (1) in its first, second, or 
119.26  third year of operation up to $30 per student up to a maximum of 
119.27  $10,000; and (2) in its fourth or a subsequent year of operation 
119.28  up to $10 per student up to a maximum of $3,500.  The 
119.29  information for the review and comment shall be reported by the 
119.30  sponsor to the commissioner of education in a timely manner. 
119.31     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
119.32  2005-2006 school year and later. 
119.33     Sec. 60.  Minnesota Statutes 2004, section 124D.10, 
119.34  subdivision 23, is amended to read: 
119.35     Subd. 23.  [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER 
119.36  SCHOOL CONTRACT.] (a) The duration of the contract with a 
120.1   sponsor must be for the term contained in the contract according 
120.2   to subdivision 6.  The sponsor may or may not renew a contract 
120.3   at the end of the term for any ground listed in paragraph (b).  
120.4   A sponsor may unilaterally terminate a contract during the term 
120.5   of the contract for any ground listed in paragraph (b).  At 
120.6   least 60 days before not renewing or terminating a contract, the 
120.7   sponsor shall notify the board of directors of the charter 
120.8   school of the proposed action in writing.  The notice shall 
120.9   state the grounds for the proposed action in reasonable detail 
120.10  and that the charter school's board of directors may request in 
120.11  writing an informal hearing before the sponsor within 14 days of 
120.12  receiving notice of nonrenewal or termination of the contract.  
120.13  Failure by the board of directors to make a written request for 
120.14  a hearing within the 14-day period shall be treated as 
120.15  acquiescence to the proposed action.  Upon receiving a timely 
120.16  written request for a hearing, the sponsor shall give reasonable 
120.17  notice to the charter school's board of directors of the hearing 
120.18  date.  The sponsor shall conduct an informal hearing before 
120.19  taking final action.  The sponsor shall take final action to 
120.20  renew or not renew a contract by the last day of classes in the 
120.21  school year.  If the sponsor is a local board, the school's 
120.22  board of directors may appeal the sponsor's decision to the 
120.23  commissioner. 
120.24     (b) A contract may be terminated or not renewed upon any of 
120.25  the following grounds: 
120.26     (1) failure to meet the requirements for pupil performance 
120.27  contained in the contract; 
120.28     (2) failure to meet generally accepted standards of fiscal 
120.29  management; 
120.30     (3) violations of law; or 
120.31     (4) other good cause shown. 
120.32     If a contract is terminated or not renewed under this 
120.33  paragraph, the school must be dissolved according to the 
120.34  applicable provisions of chapter 308A or 317A, except when the 
120.35  commissioner approves the decision of a different eligible 
120.36  sponsor to authorize the charter school.  
121.1      (c) If at the end of a contract term, either the sponsor or 
121.2   the charter school board of directors wants to voluntarily 
121.3   terminate the contract, a change in sponsors is allowed if the 
121.4   commissioner approves the decision of a different eligible 
121.5   sponsor to authorize the charter school.  The party intending to 
121.6   terminate the contract must notify the other party and the 
121.7   commissioner of its intent at least 90 days before the date on 
121.8   which the contract ends.  The sponsor that is a party to the 
121.9   existing contract at least must inform the approved different 
121.10  eligible sponsor about the fiscal and student performance of the 
121.11  school.  If no different eligible sponsor is approved, the 
121.12  school must be dissolved according to applicable law and the 
121.13  terms of the contract.  
121.14     (d) The commissioner, after providing reasonable notice to 
121.15  the board of directors of a charter school and the existing 
121.16  sponsor, and after providing an opportunity for a public 
121.17  hearing, may terminate the existing sponsorial relationship if 
121.18  the charter school has a history of: 
121.19     (1) financial mismanagement; or 
121.20     (2) repeated violations of the law. 
121.21     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
121.22  2005-2006 school year and later. 
121.23     Sec. 61.  Minnesota Statutes 2004, section 124D.11, 
121.24  subdivision 1, is amended to read: 
121.25     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
121.26  education revenue must be paid to a charter school as though it 
121.27  were a district.  The general education revenue for each 
121.28  adjusted marginal cost pupil unit is the state average general 
121.29  education revenue per pupil unit, plus the referendum 
121.30  equalization aid allowance in the pupil's district of residence, 
121.31  minus an amount equal to the product of the formula allowance 
121.32  according to section 126C.10, subdivision 2, times .0485, 
121.33  calculated without basic skills revenue, extended time revenue, 
121.34  alternative compensation revenue, transition revenue, and 
121.35  transportation sparsity revenue, plus basic skills revenue, 
121.36  extended time revenue, basic alternative compensation aid 
122.1   according to section 126C.10, subdivision 34, and transition 
122.2   revenue as though the school were a school district.  The 
122.3   general education revenue for each extended time marginal cost 
122.4   pupil unit equals $4,378.  
122.5      (b) Notwithstanding paragraph (a), for charter schools in 
122.6   the first year of operation, general education revenue shall be 
122.7   computed using the number of adjusted pupil units in the current 
122.8   fiscal year.  
122.9      Sec. 62.  Minnesota Statutes 2004, section 124D.11, 
122.10  subdivision 2, is amended to read: 
122.11     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
122.12  must be paid to a charter school that provides transportation 
122.13  services according to section 124D.10, subdivision 16, according 
122.14  to this subdivision.  Transportation aid shall equal 
122.15  transportation revenue.  
122.16     In addition to the revenue under subdivision 1, a charter 
122.17  school providing transportation services must receive general 
122.18  education aid for each pupil unit equal to the sum of the 
122.19  product of (i) an amount equal to the product of the formula 
122.20  allowance according to section 126C.10, subdivision 2, times 
122.21  .0485, plus the transportation sparsity allowance for the school 
122.22  district in which the charter school is located times (ii) the 
122.23  adjusted marginal cost pupil units, plus the product of $223 
122.24  times the extended time marginal cost pupil units.  
122.25     Sec. 63.  Minnesota Statutes 2004, section 124D.11, 
122.26  subdivision 6, is amended to read: 
122.27     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
122.28  school is eligible to receive other aids, grants, and revenue 
122.29  according to chapters 120A to 129C, as though it were a district.
122.30     (b) Notwithstanding paragraph (a), a charter school may not 
122.31  receive aid, a grant, or revenue if a levy, other than a levy 
122.32  required by sections 125A.76 or 126C.10, is required to obtain 
122.33  the money, or if the aid, grant, or revenue is a replacement of 
122.34  levy revenue, except as otherwise provided in this section.  
122.35     (c) Federal aid received by the state must be paid to the 
122.36  school, if it qualifies for the aid as though it were a school 
123.1   district. 
123.2      (d) A charter school may receive money from any source for 
123.3   capital facilities needs.  In the year-end report to the 
123.4   commissioner of education, the charter school shall report the 
123.5   total amount of funds received from grants and other outside 
123.6   sources. 
123.7      Sec. 64.  [124D.4531] [CAREER AND TECHNICAL LEVY.] 
123.8      Subdivision 1.  [CAREER AND TECHNICAL LEVY.] (a) A district 
123.9   with a career and technical program approved under this section 
123.10  for the fiscal year in which the levy is certified may levy an 
123.11  amount equal to the lesser of: 
123.12     (1) $80 times the district's average daily membership in 
123.13  grades 10 through 12 for the fiscal year in which the levy is 
123.14  certified; or 
123.15     (2) 25 percent of approved expenditures in the fiscal year 
123.16  in which the levy is certified for the following: 
123.17     (i) salaries paid to essential, licensed personnel 
123.18  providing direct instructional services to students in that 
123.19  fiscal year for services rendered in the district's approved 
123.20  career and technical education programs; 
123.21     (ii) contracted services provided by a public or private 
123.22  agency other than a Minnesota school district or cooperative 
123.23  center under subdivision 7; 
123.24     (iii) necessary travel between instructional sites by 
123.25  licensed career and technical education personnel; 
123.26     (iv) necessary travel by licensed career and technical 
123.27  education personnel for vocational student organization 
123.28  activities held within the state for instructional purposes; 
123.29     (v) curriculum development activities that are part of a 
123.30  five-year plan for improvement based on program assessment; 
123.31     (vi) necessary travel by licensed career and technical 
123.32  education personnel for noncollegiate credit-bearing 
123.33  professional development; and 
123.34     (vii) specialized vocational instructional supplies. 
123.35     (b) Up to ten percent of a district's career and technical 
123.36  levy may be spent on equipment purchases.  Districts using the 
124.1   career and technical levy for equipment purchases must report to 
124.2   the department on the improved learning opportunities for 
124.3   students that result from the investment in equipment. 
124.4      (c) The district must recognize the full amount of this 
124.5   levy as revenue for the fiscal year in which it is certified. 
124.6      Subd. 2.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
124.7   INTERMEDIATE DISTRICTS.] For purposes of this section, a 
124.8   cooperative center or an intermediate district must allocate its 
124.9   approved expenditures for career and technical education 
124.10  programs among participating districts. 
124.11     Subd. 3.  [LEVY GUARANTEE.] Notwithstanding subdivision 1, 
124.12  the career and technical education levy for a district is not 
124.13  less than the lesser of: 
124.14     (1) the district's career and technical education levy 
124.15  authority for the previous fiscal year; or 
124.16     (2) 100 percent of the approved expenditures for career and 
124.17  technical programs included in subdivision 1, paragraph (b), for 
124.18  the fiscal year in which the levy is certified. 
124.19     Subd. 4.  [COMPLIANCE WITH RULES.] (a) Levy authority must 
124.20  be granted under this section only for services rendered or for 
124.21  costs incurred in career and technical education programs 
124.22  approved by the commissioner and operated in accordance with 
124.23  rules adopted by the commissioner.  The rules must not require 
124.24  any minimum number of administrative staff, any minimum period 
124.25  of coordination time or extended employment for career and 
124.26  technical education personnel, or the availability of vocational 
124.27  student activities or organizations for a career and technical 
124.28  education program to qualify for this levy.  Levy authority 
124.29  shall be granted only for services rendered and for costs 
124.30  incurred by essential, licensed personnel, or approved 
124.31  paraprofessionals who meet the requirements for licensure 
124.32  pursuant to the rules of the Minnesota Board of Teaching.  
124.33     For the purposes of this paragraph, "licensed personnel" 
124.34  means persons holding a valid career and technical license 
124.35  issued by the commissioner.  If an average of five or fewer 
124.36  secondary full-time equivalent students are enrolled per teacher 
125.1   in an approved postsecondary program at Intermediate District 
125.2   No. 287, 916, or 917, "licensed personnel" means persons holding 
125.3   a valid vocational license issued by the commissioner or the 
125.4   Board of Trustees of the Minnesota State Colleges and 
125.5   Universities.  
125.6      (b) Notwithstanding section 127A.42, the commissioner may 
125.7   modify or withdraw the program or levy authority under this 
125.8   section without proceeding under section 127A.42, at any time.  
125.9   To do so, the commissioner must determine that the program does 
125.10  not comply with rules of the Department of Education or that any 
125.11  facts concerning the program or its budget differ from the facts 
125.12  in the district's approved application. 
125.13     Subd. 5.  [LIMIT.] The commissioner may reduce the levy 
125.14  under this section for a career and technical education program 
125.15  that receives funds from any other source.  A district or center 
125.16  must not receive a total amount of levy authority pursuant to 
125.17  this section which, when added to funds from other sources, will 
125.18  provide the program an amount for salaries and travel which 
125.19  exceeds 100 percent of the amount of its expenditures for 
125.20  salaries and travel in the program. 
125.21     Subd. 6.  [LEVY FOR CONTRACTED SERVICES.] In addition to 
125.22  the provisions of subdivisions 4 and 5, a school district or 
125.23  cooperative center may contract with a public or private agency 
125.24  other than a Minnesota school district or cooperative center for 
125.25  the provision of career and technical education services.  The 
125.26  commissioner must adopt rules relating to program approval 
125.27  procedures and criteria for these contracts and levy authority 
125.28  must be granted only for contracts approved by the 
125.29  commissioner.  The district or cooperative center contracting 
125.30  for these services must be construed to be providing the 
125.31  services. 
125.32     Subd. 7.  [DISTRICT REPORTS.] Each district or cooperative 
125.33  center must report data to the department for all career and 
125.34  technical education programs as required by the department to 
125.35  implement the career and technical levy formula. 
125.36     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
126.1   payable in 2008. 
126.2      Sec. 65.  Minnesota Statutes 2004, section 124D.66, 
126.3   subdivision 3, is amended to read: 
126.4      Subd. 3.  [ELIGIBLE SERVICES.] (a) Assurance of mastery 
126.5   programs may provide direct instructional services to an 
126.6   eligible pupil, or a group of eligible pupils, under the 
126.7   following conditions in paragraphs (b) to (d). 
126.8      (b) Instruction may be provided at one or more grade levels 
126.9   from kindergarten to grade 8 and for students in grades 9 
126.10  through 12 who were enrolled in grade 8 before the 2005-2006 
126.11  school year and have failed the basic skills tests, or who were 
126.12  enrolled in grade 8 in the 2005-2006 school year and later and 
126.13  have failed the Minnesota Comprehensive Assessments (MCA-IIs) in 
126.14  reading, mathematics, or writing as required for high school 
126.15  graduation under section 120B.02.  If an assessment of pupils' 
126.16  needs within a district demonstrates that the eligible pupils in 
126.17  grades kindergarten to grade 8 are being appropriately served, a 
126.18  district may serve eligible pupils in grades 9 to 12. 
126.19     (c) Instruction must be provided under the supervision of 
126.20  the eligible pupil's regular classroom teacher.  Instruction may 
126.21  be provided by the eligible pupil's classroom teacher, by 
126.22  another teacher, by a team of teachers, or by an education 
126.23  assistant or aide.  A special education teacher may provide 
126.24  instruction, but instruction that is provided under this section 
126.25  is not eligible for aid under section 125A.76. 
126.26     (d) The instruction that is provided must differ from the 
126.27  initial instruction the pupil received in the regular classroom 
126.28  setting.  The instruction may differ by presenting different 
126.29  curriculum than was initially presented in the regular classroom 
126.30  or by presenting the same curriculum: 
126.31     (1) at a different rate or in a different sequence than it 
126.32  was initially presented; 
126.33     (2) using different teaching methods or techniques than 
126.34  were used initially; or 
126.35     (3) using different instructional materials than were used 
126.36  initially. 
127.1      Sec. 66.  Minnesota Statutes 2004, section 124D.74, 
127.2   subdivision 1, is amended to read: 
127.3      Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
127.4   education programs are programs in public elementary and 
127.5   secondary schools, nonsectarian nonpublic, community, 
127.6   tribal, charter, or alternative schools enrolling American 
127.7   Indian children designed to: 
127.8      (1) support postsecondary preparation for pupils; 
127.9      (2) support the academic achievement of American Indian 
127.10  students with identified focus to improve reading and mathematic 
127.11  skills; 
127.12     (3) make the curriculum more relevant to the needs, 
127.13  interests, and cultural heritage of American Indian pupils; 
127.14     (4) provide positive reinforcement of the self-image of 
127.15  American Indian pupils; 
127.16     (5) develop intercultural awareness among pupils, parents, 
127.17  and staff; and 
127.18     (6) supplement, not supplant, state and federal educational 
127.19  and cocurricular programs.  
127.20  Program components may include:  development of support 
127.21  components for students in the areas of academic achievement, 
127.22  retention, and attendance; development of support components for 
127.23  staff, including in-service training and technical assistance in 
127.24  methods of teaching American Indian pupils; research projects, 
127.25  including experimentation with and evaluation of methods of 
127.26  relating to American Indian pupils; provision of personal and 
127.27  vocational counseling to American Indian pupils; modification of 
127.28  curriculum, instructional methods, and administrative procedures 
127.29  to meet the needs of American Indian pupils; and supplemental 
127.30  instruction in American Indian language, literature, history, 
127.31  and culture.  Districts offering programs may make contracts for 
127.32  the provision of program components by establishing cooperative 
127.33  liaisons with tribal programs and American Indian social service 
127.34  agencies.  These programs may also be provided as components of 
127.35  early childhood and family education programs. 
127.36     Sec. 67.  Minnesota Statutes 2004, section 124D.81, 
128.1   subdivision 1, is amended to read: 
128.2      Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
128.3   commissioner of education must make grants to no fewer than six 
128.4   American Indian education programs.  At least three programs 
128.5   must be in urban areas and at least three must be on or near 
128.6   reservations.  The board of a local district, a participating 
128.7   school or a group of boards may develop a proposal for grants in 
128.8   support of American Indian education programs.  Proposals may 
128.9   provide for contracts for the provision of program components by 
128.10  nonsectarian nonpublic, community, tribal, charter, or 
128.11  alternative schools.  The commissioner shall prescribe the form 
128.12  and manner of application for grants, and no grant shall be made 
128.13  for a proposal not complying with the requirements of sections 
128.14  124D.71 to 124D.82.  The commissioner must submit all proposals 
128.15  to the state Advisory Committee on American Indian Education 
128.16  Programs for its recommendations concerning approval, 
128.17  modification, or disapproval and the amounts of grants to 
128.18  approved programs. 
128.19     Sec. 68.  Minnesota Statutes 2004, section 124D.84, 
128.20  subdivision 1, is amended to read: 
128.21     Subdivision 1.  [AWARDS.] The commissioner, with the advice 
128.22  and counsel of the Minnesota Indian Education Committee, may 
128.23  award scholarships to any Minnesota resident student who is of 
128.24  one-fourth or more Indian ancestry, who has applied for other 
128.25  existing state and federal scholarship and grant programs, and 
128.26  who, in the opinion of the commissioner, has the capabilities to 
128.27  benefit from further education.  Scholarships must be for 
128.28  accredited degree programs in accredited Minnesota colleges or 
128.29  universities or for courses in accredited Minnesota business, 
128.30  technical, or vocational schools.  Scholarships may also be 
128.31  given to students attending Minnesota colleges that are in 
128.32  candidacy status for obtaining full accreditation, and are 
128.33  eligible for and receiving federal financial aid programs.  
128.34  Students are also eligible for scholarships when enrolled as 
128.35  students in Minnesota higher education institutions that have 
128.36  joint programs with other accredited higher education 
129.1   institutions.  Scholarships shall be used to defray the total 
129.2   cost of education including tuition, incidental fees, books, 
129.3   supplies, transportation, other related school costs and the 
129.4   cost of board and room and shall be paid directly to the college 
129.5   or school concerned where the student receives federal financial 
129.6   aid.  The total cost of education includes all tuition and fees 
129.7   for each student enrolling in a public institution and the 
129.8   portion of tuition and fees for each student enrolling in a 
129.9   private institution that does not exceed the tuition and fees at 
129.10  a comparable public institution.  Each student shall be awarded 
129.11  a scholarship based on the total cost of the student's education 
129.12  and a federal standardized need analysis.  Applicants are 
129.13  encouraged to apply for all other sources of financial aid.  The 
129.14  amount and type of each scholarship shall be determined through 
129.15  the advice and counsel of the Minnesota Indian education 
129.16  committee. 
129.17     When an Indian student satisfactorily completes the work 
129.18  required by a certain college or school in a school year the 
129.19  student is eligible for additional scholarships, if additional 
129.20  training is necessary to reach the student's educational and 
129.21  vocational objective.  Scholarships may not be given to any 
129.22  Indian student for more than five years of study without special 
129.23  recommendation of the Minnesota Indian Education Committee.  
129.24     Sec. 69.  Minnesota Statutes 2004, section 126C.457, is 
129.25  amended to read: 
129.26     126C.457 [CAREER AND TECHNICAL LEVY.] 
129.27     For taxes payable in 2006 and 2007, a school district may 
129.28  levy an amount equal to the greater of (1) $10,000, or (2) the 
129.29  district's fiscal year 2001 entitlement for career and technical 
129.30  aid under Minnesota Statutes 2000, section 124D.453.  The 
129.31  district must recognize the full amount of this levy as revenue 
129.32  for the fiscal year in which it is certified.  Revenue received 
129.33  under this section must be reserved and used only for career and 
129.34  technical programs. 
129.35     Sec. 70.  Minnesota Statutes 2004, section 127A.47, 
129.36  subdivision 8, is amended to read: 
130.1      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
130.2   for districts must be adjusted for each pupil attending a 
130.3   charter school under section 124D.10.  The adjustments must be 
130.4   made according to this subdivision. 
130.5      (b) General education aid paid to a district in which a 
130.6   charter school not providing transportation according to section 
130.7   124D.10, subdivision 16, is located must be increased by an 
130.8   amount equal to the sum of: 
130.9      (1) the product of:  (1) (i) the sum of an amount equal to 
130.10  the product of the formula allowance according to section 
130.11  126C.10, subdivision 2, times .0485, plus the transportation 
130.12  sparsity allowance for the district; times (2) (ii) the adjusted 
130.13  marginal cost pupil units attributable to the pupil; plus 
130.14     (2) the product of $223 times the extended time marginal 
130.15  cost pupil units attributable to the pupil.  
130.16     Sec. 71.  Minnesota Statutes 2004, section 128C.12, 
130.17  subdivision 1, is amended to read: 
130.18     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
130.19  auditor annually must examine the accounts of, and audit all 
130.20  money paid to, the State High School League by its members.  The 
130.21  audit must include financial and compliance issues.  The state 
130.22  auditor must also audit all money derived from any event 
130.23  sponsored by the league.  League audits must include audits of 
130.24  The state auditor may audit administrative regions of the 
130.25  league.  The league and its league's administrative regions 
130.26  may not contract with private auditors.  The scope of the state 
130.27  auditor's examinations of the league must be agreed upon by the 
130.28  board and the state auditor, provided that all requirements of 
130.29  this section must be met. 
130.30     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
130.31  2005-2006 school year and thereafter. 
130.32     Sec. 72.  [129C.105] [BOARD MEETINGS BY TELEPHONE OR OTHER 
130.33  ELECTRONIC MEANS.] 
130.34     (a) Notwithstanding section 13D.01 and if complying with 
130.35  section 13D.02 is impractical, the board for the Perpich Center 
130.36  for Arts Education may conduct a meeting of its members by 
131.1   telephone or other electronic means so long as the following 
131.2   conditions are met: 
131.3      (1) all members of the board participating in the meeting, 
131.4   wherever their physical location, can hear one another and all 
131.5   discussion and testimony; 
131.6      (2) members of the public present at the regular meeting 
131.7   location of the board can hear all discussion and testimony and 
131.8   all votes of members of the board; 
131.9      (3) at least one member of the board is physically present 
131.10  at the regular meeting location; and 
131.11     (4) all votes are conducted by roll call, so each member's 
131.12  vote on each issue can be identified and recorded. 
131.13     (b) Each member of the board participating in a meeting by 
131.14  telephone or other electronic means is considered present at the 
131.15  meeting for purposes of determining a quorum and participating 
131.16  in all proceedings. 
131.17     (c) If telephone or other electronic means is used to 
131.18  conduct a meeting, the board, to the extent practical, shall 
131.19  allow a person to monitor the meeting electronically from a 
131.20  remote location.  The board may require the person making such a 
131.21  connection to pay for documented marginal costs that the board 
131.22  incurs as a result of the additional connection. 
131.23     (d) If telephone or other electronic means is used to 
131.24  conduct a regular, special, or emergency meeting, the board 
131.25  shall provide notice of the regular meeting location, of the 
131.26  fact that some members may participate by telephone or other 
131.27  electronic means, and of the provisions of paragraph (c).  The 
131.28  timing and method of providing notice is governed by section 
131.29  13D.04. 
131.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
131.31  following final enactment. 
131.32     Sec. 73.  Minnesota Statutes 2004, section 171.04, 
131.33  subdivision 1, is amended to read: 
131.34     Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
131.35  shall not issue a driver's license: 
131.36     (1) to any person under 18 years unless: 
132.1      (i) the applicant is 16 or 17 years of age and has a 
132.2   previously issued valid license from another state or country or 
132.3   the applicant has, for the 12 consecutive months preceding 
132.4   application, held a provisional license and during that time has 
132.5   incurred (A) no conviction for a violation of section 169A.20, 
132.6   169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 
132.7   conviction for a crash-related moving violation, and (C) not 
132.8   more than one conviction for a moving violation that is not 
132.9   crash related.  "Moving violation" means a violation of a 
132.10  traffic regulation but does not include a parking violation, 
132.11  vehicle equipment violation, or warning citation; 
132.12     (ii) the application for a license is approved by (A) 
132.13  either parent when both reside in the same household as the 
132.14  minor applicant or, if otherwise, then (B) the parent or spouse 
132.15  of the parent having custody or, in the event there is no court 
132.16  order for custody, then (C) the parent or spouse of the parent 
132.17  with whom the minor is living or, if subitems (A) to (C) do not 
132.18  apply, then (D) the guardian having custody of the minor or, in 
132.19  the event a person under the age of 18 has no living father, 
132.20  mother, or guardian, or is married or otherwise legally 
132.21  emancipated, then (E) the minor's adult spouse, adult close 
132.22  family member, or adult employer; provided, that the approval 
132.23  required by this item contains a verification of the age of the 
132.24  applicant and the identity of the parent, guardian, adult 
132.25  spouse, adult close family member, or adult employer; and 
132.26     (iii) the applicant presents a certification by the person 
132.27  who approves the application under item (ii), stating that the 
132.28  applicant has driven a motor vehicle accompanied by and under 
132.29  supervision of a licensed driver at least 21 years of age for at 
132.30  least ten hours during the period of provisional licensure; and 
132.31     (iv) the applicant certifies either (A) the applicant's 
132.32  school attendance under section 171.056 and the district, 
132.33  charter school, or alternative education program in which the 
132.34  applicant is currently enrolled, or (B) that the enrolling 
132.35  district, charter school, or alternative education program board 
132.36  waived the attendance requirement under section 120A.23; 
133.1      (2) to any person who is 18 years of age or younger, unless 
133.2   the person has applied for, been issued, and possessed the 
133.3   appropriate instruction permit for a minimum of six months, and, 
133.4   with respect to a person under 18 years of age, a provisional 
133.5   license for a minimum of 12 months; 
133.6      (3) to any person who is 19 years of age or older, unless 
133.7   that person has applied for, been issued, and possessed the 
133.8   appropriate instruction permit for a minimum of three months; 
133.9      (4) to any person whose license has been suspended during 
133.10  the period of suspension except that a suspended license may be 
133.11  reinstated during the period of suspension upon the licensee 
133.12  furnishing proof of financial responsibility in the same manner 
133.13  as provided in the Minnesota No-Fault Automobile Insurance Act; 
133.14     (5) to any person whose license has been revoked except 
133.15  upon furnishing proof of financial responsibility in the same 
133.16  manner as provided in the Minnesota No-Fault Automobile 
133.17  Insurance Act and if otherwise qualified; 
133.18     (6) to any drug-dependent person, as defined in section 
133.19  254A.02, subdivision 5; 
133.20     (7) to any person who has been adjudged legally incompetent 
133.21  by reason of mental illness, mental deficiency, or inebriation, 
133.22  and has not been restored to capacity, unless the department is 
133.23  satisfied that the person is competent to operate a motor 
133.24  vehicle with safety to persons or property; 
133.25     (8) to any person who is required by this chapter to take a 
133.26  vision, knowledge, or road examination, unless the person has 
133.27  successfully passed the examination.  An applicant who fails 
133.28  four road tests must complete a minimum of six hours of 
133.29  behind-the-wheel instruction with an approved instructor before 
133.30  taking the road test again; 
133.31     (9) to any person who is required under the Minnesota 
133.32  No-Fault Automobile Insurance Act to deposit proof of financial 
133.33  responsibility and who has not deposited the proof; 
133.34     (10) to any person when the commissioner has good cause to 
133.35  believe that the operation of a motor vehicle on the highways by 
133.36  the person would be inimical to public safety or welfare; 
134.1      (11) to any person when, in the opinion of the 
134.2   commissioner, the person is afflicted with or suffering from a 
134.3   physical or mental disability or disease that will affect the 
134.4   person in a manner as to prevent the person from exercising 
134.5   reasonable and ordinary control over a motor vehicle while 
134.6   operating it upon the highways; 
134.7      (12) to a person who is unable to read and understand 
134.8   official signs regulating, warning, and directing traffic; 
134.9      (13) to a child for whom a court has ordered denial of 
134.10  driving privileges under section 260C.201, subdivision 1, or 
134.11  260B.235, subdivision 5, until the period of denial is 
134.12  completed; or 
134.13     (14) to any person whose license has been canceled, during 
134.14  the period of cancellation. 
134.15     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
134.16  2005, and applies to all persons under age 18 possessing or 
134.17  applying for a driver's instruction permit or provisional 
134.18  license on or after that date. 
134.19     Sec. 74.  Minnesota Statutes 2004, section 171.05, 
134.20  subdivision 2, is amended to read: 
134.21     Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
134.22  Notwithstanding any provision in subdivision 1 to the contrary, 
134.23  the department may issue an instruction permit to an applicant 
134.24  who is 15, 16, or 17 years of age and who: 
134.25     (1) has completed a course of driver education in another 
134.26  state, has a previously issued valid license from another state, 
134.27  or is enrolled in either: 
134.28     (i) a public, private, or commercial driver education 
134.29  program that is approved by the commissioner of public safety 
134.30  and that includes classroom and behind-the-wheel training; or 
134.31     (ii) an approved behind-the-wheel driver education program 
134.32  when the student is receiving full-time instruction in a home 
134.33  school within the meaning of sections 120A.22 and 120A.24, the 
134.34  student is working toward a homeschool diploma, the student's 
134.35  status as a homeschool student has been certified by the 
134.36  superintendent of the school district in which the student 
135.1   resides, and the student is taking home-classroom driver 
135.2   training with classroom materials approved by the commissioner 
135.3   of public safety; 
135.4      (2) has completed the classroom phase of instruction in the 
135.5   driver education program; 
135.6      (3) has passed a test of the applicant's eyesight; 
135.7      (4) has passed a department-administered test of the 
135.8   applicant's knowledge of traffic laws; 
135.9      (5) has completed the required application, which must be 
135.10  approved by (i) either parent when both reside in the same 
135.11  household as the minor applicant or, if otherwise, then (ii) the 
135.12  parent or spouse of the parent having custody or, in the event 
135.13  there is no court order for custody, then (iii) the parent or 
135.14  spouse of the parent with whom the minor is living or, if items 
135.15  (i) to (iii) do not apply, then (iv) the guardian having custody 
135.16  of the minor or, in the event a person under the age of 18 has 
135.17  no living father, mother, or guardian, or is married or 
135.18  otherwise legally emancipated, then (v) the applicant's adult 
135.19  spouse, adult close family member, or adult employer; provided, 
135.20  that the approval required by this clause contains a 
135.21  verification of the age of the applicant and the identity of the 
135.22  parent, guardian, adult spouse, adult close family member, or 
135.23  adult employer; and 
135.24     (6) certifies either (i) the applicant's school attendance 
135.25  under section 171.056 and the district, charter school, or 
135.26  alternative education program in which the applicant is 
135.27  currently enrolled, or (ii) that the enrolling district, charter 
135.28  school, or alternative education program board waived the 
135.29  attendance requirement under section 120A.23; and 
135.30     (7) has paid the fee required in section 171.06, 
135.31  subdivision 2. 
135.32     (b) The instruction permit is valid for one year from the 
135.33  date of application and may be renewed upon payment of a fee 
135.34  equal to the fee for issuance of an instruction permit under 
135.35  section 171.06, subdivision 2. 
135.36     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
136.1   2005, and applies to all persons under age 18 possessing or 
136.2   applying for a driver's instruction permit on or after that date.
136.3      Sec. 75.  Minnesota Statutes 2004, section 171.05, 
136.4   subdivision 2b, is amended to read: 
136.5      Subd. 2b.  [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 
136.6   (a) This subdivision applies to persons who have applied for and 
136.7   received an instruction permit under subdivision 2. 
136.8      (b) The permit holder may, with the permit in possession, 
136.9   operate a motor vehicle, but must be accompanied by and be under 
136.10  the supervision of a certified driver education instructor, the 
136.11  permit holder's parent or guardian, or another licensed driver 
136.12  age 21 or older.  The supervisor must occupy the seat beside the 
136.13  permit holder. 
136.14     (c) The permit holder may operate a motor vehicle only when 
136.15  every occupant under the age of 18 has a seat belt or child 
136.16  passenger restraint system properly fastened.  A person who 
136.17  violates this paragraph is subject to a fine of $25.  A peace 
136.18  officer may not issue a citation for a violation of this 
136.19  paragraph unless the officer lawfully stopped or detained the 
136.20  driver of the motor vehicle for a moving violation as defined in 
136.21  section 171.04, subdivision 1.  The commissioner shall not 
136.22  record a violation of this paragraph on a person's driving 
136.23  record. 
136.24     (d) The permit holder must maintain a driving record free 
136.25  of convictions for moving violations, as defined in section 
136.26  171.04, subdivision 1, and free of convictions for violation of 
136.27  section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 
136.28  169A.53.  If the permit holder drives a motor vehicle in 
136.29  violation of the law, the commissioner shall suspend, cancel, or 
136.30  revoke the permit in accordance with the statutory section 
136.31  violated. 
136.32     (e) The permit holder must comply with the school 
136.33  attendance requirement under section 171.056, except when the 
136.34  attendance requirement is waived under section 120A.23.  If the 
136.35  permit holder does not attend school as required, the 
136.36  commissioner must cancel the permit under section 171.056. 
137.1      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
137.2   2005, and applies to all persons under age 18 possessing or 
137.3   applying for a driver's instruction permit on or after that date.
137.4      Sec. 76.  Minnesota Statutes 2004, section 171.05, 
137.5   subdivision 3, is amended to read: 
137.6      Subd. 3.  [MOTORIZED BICYCLE.] Notwithstanding any 
137.7   provision in subdivision 1 to the contrary, the department, upon 
137.8   application and payment of the fee prescribed in section 171.02, 
137.9   subdivision 3, may issue a motorized bicycle instruction permit 
137.10  to an applicant who is 15 years of age and, who has successfully 
137.11  completed the written portion of the examination prescribed by 
137.12  the commissioner, and who certifies either (1) the applicant's 
137.13  school attendance under section 171.056 and the district, 
137.14  charter school, or alternative education program in which the 
137.15  applicant is currently enrolled, or (2) that the enrolling 
137.16  district, charter school, or alternative education program board 
137.17  waived the attendance requirement under section 120A.23.  The 
137.18  holder of this instruction permit who has the permit in 
137.19  possession may operate a motorized bicycle within one mile of 
137.20  the holder's residence for the purpose of practicing to take the 
137.21  operator portion of the examination prescribed by the 
137.22  commissioner. 
137.23     <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
137.24  2005, and applies to all persons under age 18 possessing or 
137.25  applying for a motorized bicycle instruction permit on or after 
137.26  that date. 
137.27     Sec. 77.  [171.056] [SCHOOL ATTENDANCE REQUIREMENT FOR 
137.28  DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 
137.29  PROVISIONAL LICENSE.] 
137.30     Subdivision 1.  [DEFINITIONS.] (a) As used in this section 
137.31  the terms defined in this subdivision have the meanings given 
137.32  them. 
137.33     (b) "Continuing truant" means a student under section 
137.34  260A.02, subdivision 3, who is absent without valid excuse from 
137.35  instruction in a school.  
137.36     (c) "Habitual truant" means a person under section 
138.1   260C.007, subdivision 19, who is absent without lawful excuse 
138.2   from attendance at school.  
138.3      (d) "High school diploma" means an official record or 
138.4   document indicating that the student has satisfied the 
138.5   graduation requirements of that school as defined under section 
138.6   120A.22, subdivision 4.  
138.7      (e) "Public school" means a public school, state approved 
138.8   alternative program (SAAP), or charter school. 
138.9      (f) "School board" means a public school district school 
138.10  board, SAAP board, or charter school board of directors. 
138.11     (g) "School principal" means a principal or chief 
138.12  administrative officer of a public school. 
138.13     Subd. 2.  [ISSUANCE OR RENEWAL OF DRIVER'S INSTRUCTION 
138.14  PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 
138.15  Notwithstanding any law to the contrary, except when the 
138.16  attendance requirement is waived under section 120A.23, school 
138.17  attendance is a requirement for issuing a new driver's 
138.18  instruction permit, motorized bicycle permit, or provisional 
138.19  license or renewing the permit of a person under age 18.  The 
138.20  person meets the school attendance requirement when the person: 
138.21     (1) has a high school diploma or general education 
138.22  development certificate (GED); 
138.23     (2) has withdrawn from school under section 120A.22, 
138.24  subdivision 8; or 
138.25     (3) is enrolled and attending a public school and is not a 
138.26  continuing truant or habitually truant, is enrolled and 
138.27  attending a nonpublic school, or is homeschooled. 
138.28     (b) A person under age 18 who applies for a motorized 
138.29  bicycle permit, instruction permit, or provisional license must 
138.30  submit information to the Department of Public Safety in the 
138.31  manner and format it prescribes documenting that the person has 
138.32  met the requirements of paragraph (a). 
138.33     Subd. 3.  [EXPUNGEMENT OF RECORD.] Upon receiving the 
138.34  written or electronic request of a student who is age 18 or 
138.35  older, the Department of Public Safety must expunge from the 
138.36  department's motor vehicle records all the student's truancy 
139.1   data related to the department refusing to issue or canceling 
139.2   the student's permit or license under this section.  
139.3      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
139.4   2005, and applies to all persons under age 18 possessing or 
139.5   applying for a motorized bicycle permit, driver's instruction 
139.6   permit, or provisional license on or after that date. 
139.7      Sec. 78.  [179A.145] [PERIOD DURING WHICH NEGOTIATIONS ARE 
139.8   PROHIBITED; FINANCIAL PENALTY FOR FAILING TO SETTLE.] 
139.9      Subdivision 1.  [PROHIBITION; FINANCIAL INCENTIVE AND 
139.10  PENALTY.] (a) A school board and the exclusive representative of 
139.11  the teachers in a district may not meet and negotiate and may 
139.12  not enter into a contract during the period beginning November 
139.13  15 and ending with the last student contact day the next spring 
139.14  in the even-numbered year and ending March 1 in the odd-numbered 
139.15  year.  
139.16     (b) Notwithstanding paragraph (a), a school board and the 
139.17  exclusive representative of the teachers may mutually agree to 
139.18  meet and negotiate an agreement or contract, meet and confer 
139.19  under section 179A.03, subdivision 10, negotiate a memorandum of 
139.20  understanding or meet for another particular purpose after 
139.21  November 15.  
139.22     (c) If the school board and the exclusive representative of 
139.23  the teachers in a district fail to enter into a contract before 
139.24  November 15 or 90 days after the date on which the governor 
139.25  signs the bill providing for elementary and secondary school 
139.26  funding, whichever is later, unless subdivision 2 applies, the 
139.27  education commissioner must withhold from the district all 
139.28  district basic revenue increases under section 126C.10 that are 
139.29  allowed over the previous fiscal year until the school board and 
139.30  the exclusive representative of the teachers enter into a 
139.31  contract.  
139.32     Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply: 
139.33     (1) if the school board and the exclusive representative of 
139.34  teachers certify in writing to the commissioner of mediation 
139.35  services that they have entered into a tentative agreement 
139.36  before November 15, to the extent the parties enter into a final 
140.1   contract based on the tentative agreement certified to the 
140.2   commissioner; 
140.3      (2) if the school board and the exclusive representative 
140.4   agree, before November 15, to binding interest arbitration of 
140.5   items in dispute, to the extent the parties enter into a 
140.6   contract to confirm the results of the arbitrator's decision; 
140.7      (3) if the teachers in the district are on strike on 
140.8   November 15; or 
140.9      (4) the commissioner has approved the district's 
140.10  application to participate in an alternative teacher 
140.11  professional pay system under sections 122A.414 and 122A.415. 
140.12     Subd. 3.  [RELATION TO OTHER LAW.] This section supersedes 
140.13  any conflicting provisions of other law. 
140.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2007.  
140.15     Sec. 79.  Minnesota Statutes 2004, section 260C.007, 
140.16  subdivision 6, is amended to read: 
140.17     Subd. 6.  [CHILD IN NEED OF PROTECTION OR SERVICES.] "Child 
140.18  in need of protection or services" means a child who is in need 
140.19  of protection or services because the child: 
140.20     (1) is abandoned or without parent, guardian, or custodian; 
140.21     (2)(i) has been a victim of physical or sexual abuse, (ii) 
140.22  resides with or has resided with a victim of domestic child 
140.23  abuse as defined in subdivision 5, (iii) resides with or would 
140.24  reside with a perpetrator of domestic child abuse or child abuse 
140.25  as defined in subdivision 5, or (iv) is a victim of emotional 
140.26  maltreatment as defined in subdivision 8; 
140.27     (3) is without necessary food, clothing, shelter, 
140.28  education, or other required care for the child's physical or 
140.29  mental health or morals because the child's parent, guardian, or 
140.30  custodian is unable or unwilling to provide that care; 
140.31     (4) is without the special care made necessary by a 
140.32  physical, mental, or emotional condition because the child's 
140.33  parent, guardian, or custodian is unable or unwilling to provide 
140.34  that care, including a child in voluntary placement due solely 
140.35  to the child's developmental disability or emotional 
140.36  disturbance; 
141.1      (5) is medically neglected, which includes, but is not 
141.2   limited to, the withholding of medically indicated treatment 
141.3   from a disabled infant with a life-threatening condition.  The 
141.4   term "withholding of medically indicated treatment" means the 
141.5   failure to respond to the infant's life-threatening conditions 
141.6   by providing treatment, including appropriate nutrition, 
141.7   hydration, and medication which, in the treating physician's or 
141.8   physicians' reasonable medical judgment, will be most likely to 
141.9   be effective in ameliorating or correcting all conditions, 
141.10  except that the term does not include the failure to provide 
141.11  treatment other than appropriate nutrition, hydration, or 
141.12  medication to an infant when, in the treating physician's or 
141.13  physicians' reasonable medical judgment: 
141.14     (i) the infant is chronically and irreversibly comatose; 
141.15     (ii) the provision of the treatment would merely prolong 
141.16  dying, not be effective in ameliorating or correcting all of the 
141.17  infant's life-threatening conditions, or otherwise be futile in 
141.18  terms of the survival of the infant; or 
141.19     (iii) the provision of the treatment would be virtually 
141.20  futile in terms of the survival of the infant and the treatment 
141.21  itself under the circumstances would be inhumane; 
141.22     (6) is one whose parent, guardian, or other custodian for 
141.23  good cause desires to be relieved of the child's care and 
141.24  custody, including a child in placement according to voluntary 
141.25  release by the parent under section 260C.212, subdivision 8; 
141.26     (7) has been placed for adoption or care in violation of 
141.27  law; 
141.28     (8) is without proper parental care because of the 
141.29  emotional, mental, or physical disability, or state of 
141.30  immaturity of the child's parent, guardian, or other custodian; 
141.31     (9) is one whose behavior, condition, or environment is 
141.32  such as to be injurious or dangerous to the child or others.  An 
141.33  injurious or dangerous environment may include, but is not 
141.34  limited to, the exposure of a child to criminal activity in the 
141.35  child's home; 
141.36     (10) is experiencing growth delays, which may be referred 
142.1   to as failure to thrive, that have been diagnosed by a physician 
142.2   and are due to parental neglect; 
142.3      (11) has engaged in prostitution as defined in section 
142.4   609.321, subdivision 9; 
142.5      (12) has committed a delinquent act or a juvenile petty 
142.6   offense before becoming ten years old; 
142.7      (13) is a runaway; 
142.8      (14) is a continuing or habitual truant; 
142.9      (15) has been found incompetent to proceed or has been 
142.10  found not guilty by reason of mental illness or mental 
142.11  deficiency in connection with a delinquency proceeding, a 
142.12  certification under section 260B.125, an extended jurisdiction 
142.13  juvenile prosecution, or a proceeding involving a juvenile petty 
142.14  offense; or 
142.15     (16) has been found by the court to have committed domestic 
142.16  abuse perpetrated by a minor under Laws 1997, chapter 239, 
142.17  article 10, sections 2 to 26, has been ordered excluded from the 
142.18  child's parent's home by an order for protection/minor 
142.19  respondent, and the parent or guardian is either unwilling or 
142.20  unable to provide an alternative safe living arrangement for the 
142.21  child. 
142.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
142.23     Sec. 80.  Minnesota Statutes 2004, section 260C.007, is 
142.24  amended by adding a subdivision to read: 
142.25     Subd. 8a.  [CONTINUING TRUANT.] "Continuing truant" means a 
142.26  student under section 260A.02, subdivision 3, who is absent 
142.27  without valid excuse from instruction in a school.  
142.28     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
142.29     Sec. 81.  Minnesota Statutes 2004, section 260C.201, 
142.30  subdivision 1, is amended to read: 
142.31     Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
142.32  the child is in need of protection or services or neglected and 
142.33  in foster care, it shall enter an order making any of the 
142.34  following dispositions of the case: 
142.35     (1) place the child under the protective supervision of the 
142.36  responsible social services agency or child-placing agency in 
143.1   the home of a parent of the child under conditions prescribed by 
143.2   the court directed to the correction of the child's need for 
143.3   protection or services: 
143.4      (i) the court may order the child into the home of a parent 
143.5   who does not otherwise have legal custody of the child, however, 
143.6   an order under this section does not confer legal custody on 
143.7   that parent; 
143.8      (ii) if the court orders the child into the home of a 
143.9   father who is not adjudicated, he must cooperate with paternity 
143.10  establishment proceedings regarding the child in the appropriate 
143.11  jurisdiction as one of the conditions prescribed by the court 
143.12  for the child to continue in his home; 
143.13     (iii) the court may order the child into the home of a 
143.14  noncustodial parent with conditions and may also order both the 
143.15  noncustodial and the custodial parent to comply with the 
143.16  requirements of a case plan under subdivision 2; or 
143.17     (2) transfer legal custody to one of the following: 
143.18     (i) a child-placing agency; or 
143.19     (ii) the responsible social services agency.  In placing a 
143.20  child whose custody has been transferred under this paragraph, 
143.21  the agencies shall make an individualized determination of how 
143.22  the placement is in the child's best interests using the 
143.23  consideration for relatives and the best interest factors in 
143.24  section 260C.212, subdivision 2, paragraph (b); or 
143.25     (3) if the child has been adjudicated as a child in need of 
143.26  protection or services because the child is in need of special 
143.27  services or care to treat or ameliorate a physical or mental 
143.28  disability, the court may order the child's parent, guardian, or 
143.29  custodian to provide it.  The court may order the child's health 
143.30  plan company to provide mental health services to the child.  
143.31  Section 62Q.535 applies to an order for mental health services 
143.32  directed to the child's health plan company.  If the health 
143.33  plan, parent, guardian, or custodian fails or is unable to 
143.34  provide this treatment or care, the court may order it 
143.35  provided.  Absent specific written findings by the court that 
143.36  the child's disability is the result of abuse or neglect by the 
144.1   child's parent or guardian, the court shall not transfer legal 
144.2   custody of the child for the purpose of obtaining special 
144.3   treatment or care solely because the parent is unable to provide 
144.4   the treatment or care.  If the court's order for mental health 
144.5   treatment is based on a diagnosis made by a treatment 
144.6   professional, the court may order that the diagnosing 
144.7   professional not provide the treatment to the child if it finds 
144.8   that such an order is in the child's best interests; or 
144.9      (4) if the court believes that the child has sufficient 
144.10  maturity and judgment and that it is in the best interests of 
144.11  the child, the court may order a child 16 years old or older to 
144.12  be allowed to live independently, either alone or with others as 
144.13  approved by the court under supervision the court considers 
144.14  appropriate, if the county board, after consultation with the 
144.15  court, has specifically authorized this dispositional 
144.16  alternative for a child. 
144.17     (b) If the child was adjudicated in need of protection or 
144.18  services because the child is a runaway, or is a continuing or 
144.19  habitual truant, the court may order any of the following 
144.20  dispositions in addition to or as alternatives to the 
144.21  dispositions authorized under paragraph (a): 
144.22     (1) counsel the child or the child's parents, guardian, or 
144.23  custodian; 
144.24     (2) place the child under the supervision of a probation 
144.25  officer or other suitable person in the child's own home under 
144.26  conditions prescribed by the court, including reasonable rules 
144.27  for the child's conduct and the conduct of the parents, 
144.28  guardian, or custodian, designed for the physical, mental, and 
144.29  moral well-being and behavior of the child; or with the consent 
144.30  of the commissioner of corrections, place the child in a group 
144.31  foster care facility which is under the commissioner's 
144.32  management and supervision; 
144.33     (3) subject to the court's supervision, transfer legal 
144.34  custody of the child to one of the following: 
144.35     (i) a reputable person of good moral character.  No person 
144.36  may receive custody of two or more unrelated children unless 
145.1   licensed to operate a residential program under sections 245A.01 
145.2   to 245A.16; or 
145.3      (ii) a county probation officer for placement in a group 
145.4   foster home established under the direction of the juvenile 
145.5   court and licensed pursuant to section 241.021; 
145.6      (4) require the child to pay a fine of up to $100.  The 
145.7   court shall order payment of the fine in a manner that will not 
145.8   impose undue financial hardship upon the child; 
145.9      (5) require the child to participate in a community service 
145.10  project; 
145.11     (6) order the child to undergo a chemical dependency 
145.12  evaluation and, if warranted by the evaluation, order 
145.13  participation by the child in a drug awareness program or an 
145.14  inpatient or outpatient chemical dependency treatment program; 
145.15     (7) if the court believes that it is in the best interests 
145.16  of the child and or of public safety that the child's driver's 
145.17  license or instruction permit be canceled, the court may order 
145.18  the commissioner of public safety to cancel the child's license 
145.19  or permit for any period up to the child's 18th birthday.  If 
145.20  the child does not have a driver's license or permit, the court 
145.21  may order a denial of driving privileges for any period up to 
145.22  the child's 18th birthday.  If the child is a continuing or 
145.23  habitual truant, the court must cancel the child's driving 
145.24  privileges.  The court shall forward an order issued under this 
145.25  clause to the commissioner, who shall cancel the license or 
145.26  permit or deny driving privileges without a hearing for the 
145.27  period specified by the court.  At any time before the 
145.28  expiration of the period of cancellation or denial, the court 
145.29  may, for good cause, order the commissioner of public safety to 
145.30  allow the child to apply for a license or permit, and the 
145.31  commissioner shall so authorize; 
145.32     (8) order that the child's parent or legal guardian deliver 
145.33  the child to school at the beginning of each school day for a 
145.34  period of time specified by the court; or 
145.35     (9) require the child to perform any other activities or 
145.36  participate in any other treatment programs deemed appropriate 
146.1   by the court.  
146.2      To the extent practicable, the court shall enter a 
146.3   disposition order the same day it makes a finding that a child 
146.4   is in need of protection or services or neglected and in foster 
146.5   care, but in no event more than 15 days after the finding unless 
146.6   the court finds that the best interests of the child will be 
146.7   served by granting a delay.  If the child was under eight years 
146.8   of age at the time the petition was filed, the disposition order 
146.9   must be entered within ten days of the finding and the court may 
146.10  not grant a delay unless good cause is shown and the court finds 
146.11  the best interests of the child will be served by the delay. 
146.12     (c) If a child who is 14 years of age or older is 
146.13  adjudicated in need of protection or services because the child 
146.14  is a habitual truant and truancy procedures involving the child 
146.15  were previously dealt with by a school attendance review board 
146.16  or county attorney mediation program under section 260A.06 or 
146.17  260A.07, the court shall order a cancellation or denial of 
146.18  driving privileges under paragraph (b), clause (7), for any 
146.19  period up to the child's 18th birthday. 
146.20     (d) In the case of a child adjudicated in need of 
146.21  protection or services because the child has committed domestic 
146.22  abuse and been ordered excluded from the child's parent's home, 
146.23  the court shall dismiss jurisdiction if the court, at any time, 
146.24  finds the parent is able or willing to provide an alternative 
146.25  safe living arrangement for the child, as defined in Laws 1997, 
146.26  chapter 239, article 10, section 2.  
146.27     (e) When a parent has complied with a case plan ordered 
146.28  under subdivision 6 and the child is in the care of the parent, 
146.29  the court may order the responsible social services agency to 
146.30  monitor the parent's continued ability to maintain the child 
146.31  safely in the home under such terms and conditions as the court 
146.32  determines appropriate under the circumstances.  
146.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
146.34     Sec. 82.  [BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
146.35  AUTHORITY.] 
146.36     On or before June 30, 2007, the Board of School 
147.1   Administrators may adopt expedited rules under Minnesota 
147.2   Statutes, section 14.389, to make technical revisions and 
147.3   clarifications to Minnesota Rules, chapter 3512.  
147.4      Sec. 83.  [CAREER AND TECHNICAL EDUCATION PROGRAM RULES.] 
147.5      By January 1, 2007, the commissioner of education must 
147.6   adopt rules for approval of career and technical education 
147.7   programs consistent with Minnesota Statutes, section 124D.4531, 
147.8   subdivisions 4 and 6, that emphasize emerging workforce skills.  
147.9   Program approval for fiscal year 2008 and later must be based on 
147.10  the rules. 
147.11     Sec. 84.  [MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.] 
147.12     The commissioner of education shall adopt rules on or 
147.13  before January 1, 2006, to implement the Minnesota Comprehensive 
147.14  Assessments Second Edition (MCA-IIs) in reading, mathematics, 
147.15  and writing.  For purposes of state and local high school 
147.16  graduation requirements, and consistent with applicable federal 
147.17  and state law, the rules must include criteria and an 
147.18  alternative assessment process to enable school districts to 
147.19  accommodate students, including at least students with 
147.20  disabilities, English language learners, and students performing 
147.21  below their grade level, who do not receive a passing score on 
147.22  the Minnesota Comprehensive Assessments Second Edition.  
147.23     Sec. 85.  [EDUCATION EXCELLENCE REVENUE.] 
147.24     (a) In fiscal year 2007 only, a school district is eligible 
147.25  for education excellence revenue based on the school district's 
147.26  performance on the following six standards: 
147.27     (1) graduation rate; 
147.28     (2) attendance rate; 
147.29     (3) achievement of educational standards; 
147.30     (4) adequate yearly progress; 
147.31     (5) value added measures of student performance; and 
147.32     (6) publication of a school report card. 
147.33     The commissioner of education must establish minimum 
147.34  qualifying benchmarks for each of the six standards listed in 
147.35  this paragraph.  A school district that meets or exceeds the 
147.36  benchmarks established by the commissioner for that school 
148.1   district is eligible for educational excellence revenue for each 
148.2   standard that is met. 
148.3      (b) Total revenue for education excellence equals 
148.4   $1,000,000. 
148.5      (c) The commissioner shall determine the education 
148.6   excellence revenue allowance.  The allowance is equal to total 
148.7   revenue for education excellence under paragraph (b) divided by 
148.8   the sum of the product of the number of adjusted marginal cost 
148.9   pupil units in each school district and the number of standards 
148.10  under paragraph (a) that have been met or exceeded for each 
148.11  school district for the previous school year for all school 
148.12  districts. 
148.13     (d) A school district's education excellence allowance 
148.14  equals the product of the education excellence allowance, the 
148.15  district's adjusted marginal cost pupil units for that year, and 
148.16  the number of standards that have been met or exceeded for the 
148.17  previous school year.  A school district's education excellence 
148.18  revenue must not exceed $100 times the district's adjusted 
148.19  marginal cost per pupil units for that year.  
148.20     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
148.21  fiscal year 2007. 
148.22     Sec. 86.  [TITLE.] 
148.23     Minnesota Statutes, section 120B.25, shall be known as the 
148.24  American Heritage Education in Minnesota Public Schools Act.  
148.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
148.26  following final enactment. 
148.27     Sec. 87.  [STUDY; SPONSOR EVALUATION AND CHARGES.] 
148.28     The Department of Education by December 31, 2005, after 
148.29  consulting with representatives of charter schools and charter 
148.30  school sponsors, must submit to the legislature recommendations 
148.31  on how a charter school sponsor effectively evaluates the 
148.32  performance of a charter school under Minnesota Statutes, 
148.33  section 124D.10, subdivision 15, and what annual fees a sponsor 
148.34  may charge for that evaluation. 
148.35     Sec. 88. [MODEL POLICY.] 
148.36     The commissioner of education, after consulting with 
149.1   representatives of teachers, school administrators, parents, 
149.2   students, student support service providers, law enforcement 
149.3   officials, community service providers, and the juvenile justice 
149.4   and district court systems, must develop and make available upon 
149.5   request to interested school boards a model policy to effect a 
149.6   reward for information about persons committing crimes against 
149.7   students, school employees, school volunteers, school board 
149.8   members, or school property, consistent with section 123B.02, 
149.9   subdivision 22.  
149.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
149.11  following final enactment. 
149.12     Sec. 89.  [APPROPRIATIONS.] 
149.13     Subdivision 1.  [DEPARTMENT.] The sums indicated in this 
149.14  section are appropriated from the general fund to the Department 
149.15  of Education for the fiscal years designated. 
149.16     Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
149.17  lease aid under Minnesota Statutes, section 124D.11, subdivision 
149.18  4: 
149.19       $25,465,000    .....     2006 
149.20       $30,929,000    .....     2007 
149.21     The 2006 appropriation includes $3,324,000 for 2005 and 
149.22  $22,141,000 for 2006. 
149.23     The 2007 appropriation includes $4,123,000 for 2006 and 
149.24  $26,806,000 for 2007.  
149.25     Subd. 3.  [CHARTER SCHOOL STARTUP AID.] For charter school 
149.26  startup cost aid under Minnesota Statutes, section 124D.11: 
149.27       $1,393,000     .....     2006 
149.28       $3,185,000     .....     2007 
149.29     The 2006 appropriation includes $0 for 2005 and $1,393,000 
149.30  for 2006.  
149.31     The 2007 appropriation includes $259,000 for 2006 and 
149.32  $2,926,000 for 2007. 
149.33     Subd. 4.  [INTEGRATION AID.] For integration aid under 
149.34  Minnesota Statutes, section 124D.86, subdivision 5: 
149.35       $57,812,000    .....     2006 
149.36       $57,556,000    .....     2007 
150.1      The 2006 appropriation includes $8,545,000 for 2005 and 
150.2   $49,267,000 for 2006. 
150.3      The 2007 appropriation includes $9,174,000 for 2006 and 
150.4   $48,382,000 for 2007.  
150.5      Subd. 5.  [MAGNET SCHOOL GRANTS.] For magnet school and 
150.6   program grants: 
150.7        $  750,000     .....     2006 
150.8        $  750,000     .....     2007 
150.9      These amounts may be used for magnet school programs under 
150.10  Minnesota Statutes, section 124D.88. 
150.11     Subd. 6.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
150.12  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
150.13  integration transportation grants under Minnesota Statutes, 
150.14  section 124D.87: 
150.15       $7,768,000     .....     2006 
150.16       $9,908,000     .....     2007
150.17     Subd. 7.  [SUCCESS FOR THE FUTURE.] For American Indian 
150.18  success for the future grants under Minnesota Statutes, section 
150.19  124D.81: 
150.20       $2,137,000     .....     2006
150.21       $2,137,000     .....     2007
150.22     The 2006 appropriation includes $335,000 for 2005 and 
150.23  $1,802,000 for 2006. 
150.24     The 2007 appropriation includes $335,000 for 2006 and 
150.25  $1,802,000 for 2007. 
150.26     Subd. 8.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
150.27  Indian scholarships under Minnesota Statutes, section 124D.84: 
150.28       $1,875,000     .....     2006 
150.29       $1,875,000     .....     2007 
150.30     Subd. 9.  [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] For 
150.31  joint grants to assist American Indian people to become teachers 
150.32  under Minnesota Statutes, section 122A.63: 
150.33       $  190,000     .....     2006 
150.34       $  190,000     .....     2007 
150.35     Subd. 10.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
150.36  school aid under Minnesota Statutes, section 124D.83: 
151.1        $2,372,000     .....     2006
151.2        $2,559,000     .....     2007
151.3      The 2006 appropriation includes $348,000 for 2005 and 
151.4   $2,024,000 for 2006. 
151.5      The 2007 appropriation includes $376,000 for 2006 and 
151.6   $2,183,000 for 2007. 
151.7      Subd. 11.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
151.8   SCHOOLS.] For early childhood family education programs at 
151.9   tribal contract schools under Minnesota Statutes, section 
151.10  124D.83, subdivision 4: 
151.11       $   68,000     .....     2006 
151.12       $   68,000     .....     2007 
151.13     Subd. 12.  [STATEWIDE TESTING.] For statewide testing 
151.14  support under Minnesota Statutes, section 120B.30: 
151.15       $10,200,000     .....     2006
151.16       $10,200,000     .....     2007
151.17     Of this appropriation, $1,200,000 each year is for 
151.18  development of interactive science assessments. 
151.19     Subd. 13.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
151.20  PROGRAMS.] For student examination fees and training and related 
151.21  costs for teachers and other interested educators under 
151.22  Minnesota Statutes, section 120B.13: 
151.23       $4,500,000     .....     2006 
151.24       $4,500,000     .....     2007 
151.25     The advanced placement program shall receive 90 percent of 
151.26  the appropriation each year and the international baccalaureate 
151.27  program shall receive ten percent of the appropriation each 
151.28  year.  The department, in consultation with representatives of 
151.29  the advanced placement and international baccalaureate programs 
151.30  selected by the Advanced Placement Advisory Council and IBMN, 
151.31  respectively, shall determine the amounts of the expenditures 
151.32  each year for examination fees and training and support programs.
151.33     Any balance in the first year does not cancel but is 
151.34  available in the second year. 
151.35     Subd. 14.  [FIRST GRADE PREPAREDNESS.] For first grade 
151.36  preparedness grants under Minnesota Statutes, section 124D.081: 
152.1        $7,250,000     .....     2006 
152.2        $7,250,000     .....     2007
152.3      Subd. 15.  [COLLABORATIVE URBAN EDUCATOR.] For the 
152.4   collaborative urban educator program: 
152.5        $  528,000     .....     2006 
152.6        $  528,000     .....     2007 
152.7      Subd. 16.  [YOUTH WORKS PROGRAM.] For funding youth works 
152.8   programs under Minnesota Statutes, sections 124D.37 to 124D.45: 
152.9        $  900,000     .....     2006 
152.10       $  900,000     .....     2007 
152.11     A grantee organization may provide health and child care 
152.12  coverage to the dependents of each participant enrolled in a 
152.13  full-time youth works program to the extent such coverage is not 
152.14  otherwise available. 
152.15     Subd. 17.  [STUDENT ORGANIZATIONS.] For student 
152.16  organizations: 
152.17       $  625,000     .....     2006
152.18       $  625,000     .....     2007
152.19     Subd. 18.  [EDUCATION PLANNING AND ASSESSMENT PROGRAM.] For 
152.20  the Educational Planning and Assessment (EPAS) program under 
152.21  Minnesota Statutes, section 120B.128: 
152.22       $  829,000     .....     2006 
152.23       $  829,000     .....     2007 
152.24     Subd. 19.  [COLLEGE LEVEL EXAMINATION PROGRAM (CLEP).] For 
152.25  the College Level Examination program (CLEP) under Minnesota 
152.26  Statutes, section 120B.131: 
152.27       $  825,000     .....     2006 
152.28       $1,650,000     .....     2007 
152.29     Subd. 20.  [CAREER AND TECHNICAL EDUCATION GRANTS.] For 
152.30  career and technical education grants: 
152.31       $1,000,000     .....     2006 
152.32       $1,000,000     .....     2007 
152.33     This appropriation is for grants to school districts to 
152.34  establish emerging technology demonstration programs for 
152.35  students in grades 7 through 9.  The commissioner shall 
152.36  prescribe the form and manner of grant applications, and shall 
153.1   make up to 20 grant awards each year of the biennium.  The grant 
153.2   award process must take into consideration regional 
153.3   distribution, district instructional history with emerging 
153.4   technologies, plans to link the program with high school 
153.5   emerging technology programs, ability to provide local matching 
153.6   funds, and plans to serve as a demonstration program. 
153.7      Any balance in the first year does not cancel but is 
153.8   available in the second year.  This is a onetime appropriation. 
153.9      Subd. 21.  [MINNESOTA LEARNING RESOURCE CENTER.] For a 
153.10  grant to A Chance to Grow/New Visions for the Minnesota Learning 
153.11  Resource Center's comprehensive training program for education 
153.12  professionals charged with helping children acquire basic 
153.13  reading and math skills: 
153.14       $125,000     .....     2006 
153.15       $125,000     .....     2007 
153.16     This is a onetime appropriation. 
153.17     Subd. 22.  [TEACHER PROFESSIONAL DEVELOPMENT.] For a grant 
153.18  to the Minnesota Humanities Commission to provide content-based 
153.19  professional development for teachers: 
153.20       $500,000     .....     2006 
153.21       $500,000     .....     2007 
153.22     This is a onetime appropriation. 
153.23     Subd. 23.  [MINNESOTA HISTORICAL SOCIETY.] For a grant to 
153.24  the Minnesota Historical Society to provide teacher professional 
153.25  development: 
153.26       $100,000     .....     2006 
153.27       $100,000     .....     2007 
153.28     This is a onetime appropriation. 
153.29     Subd. 24.  [REWARDING EDUCATIONAL EXCELLENCE.] For 
153.30  rewarding educational excellence under Minnesota Statutes, 
153.31  section 126C.10, subdivision 2b: 
153.32       $   -0-        .....     2006 
153.33       $1,000,000     .....     2007 
153.34     This is a onetime appropriation.  
153.35     Sec. 90.  [REPEALER.] 
153.36     Minnesota Statutes 2004, section 124D.095, is repealed. 
154.1      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
154.2   fiscal year 2006. 
154.3                              ARTICLE 3
154.4                           SPECIAL PROGRAMS 
154.5      Section 1.  Minnesota Statutes 2004, section 124D.11, 
154.6   subdivision 5, is amended to read: 
154.7      Subd. 5.  [SPECIAL EDUCATION AID.] (a) Except as provided 
154.8   in subdivision 2, special education aid must be paid to a 
154.9   charter school according to section 125A.76, as though it were a 
154.10  school district.  
154.11     (b) For fiscal year 2006, the charter school may charge 
154.12  tuition to the district of residence as follows: 
154.13     (1) if the charter school does not receive general 
154.14  education revenue on behalf of the student according to 
154.15  subdivision 1, tuition shall be charged as provided in section 
154.16  125A.11; or 
154.17     (2) if the charter school receives general education 
154.18  revenue on behalf of the student according to subdivision 1, 
154.19  tuition shall be charged as provided in section 127A.47, 
154.20  subdivision 7, paragraph (d). 
154.21     (c) For fiscal year 2007 and later, the special education 
154.22  aid paid to the charter school shall be adjusted as follows: 
154.23     (1) if the charter school does not receive general 
154.24  education revenue on behalf of the student according to 
154.25  subdivision 1, the aid shall be adjusted as provided in section 
154.26  125A.11; or 
154.27     (2) if the charter school receives general education 
154.28  revenue on behalf of the student according to subdivision 1, the 
154.29  aid shall be adjusted as provided in section 127A.47, 
154.30  subdivision 7, paragraph (d). 
154.31     Sec. 2.  Minnesota Statutes 2004, section 125A.091, 
154.32  subdivision 5, is amended to read: 
154.33     Subd. 5.  [INITIAL ACTION; PARENT CONSENT.] (a) The 
154.34  district must not proceed with the initial evaluation of a 
154.35  child, the initial placement of a child in a special education 
154.36  program, or the initial provision of special education services 
155.1   for a child without the prior written consent of the child's 
155.2   parent.  A district may not override the written refusal of a 
155.3   parent to consent to an initial evaluation or reevaluation.  If 
155.4   a parent refuses to consent to the initial evaluation of a 
155.5   child, a school district may apply to the child in any 
155.6   subsequent disciplinary action those provisions of the Pupil 
155.7   Fair Dismissal Act under sections 121A.40 to 121A.56 applicable 
155.8   to students without disabilities.  A parent's refusal to consent 
155.9   to an initial evaluation or reevaluation under this paragraph is 
155.10  not a ground for disciplinary action under sections 121A.40 to 
155.11  121A.56.  
155.12     (b) A parent, after consulting with health care, education, 
155.13  or other professional providers, may agree or disagree to 
155.14  provide the parent's child with sympathomimetic medications 
155.15  unless section 144.344 applies. 
155.16     <b>[EFFECTIVE DATE.]</b> This section is effective for the 
155.17  2005-2006 school year and later. 
155.18     Sec. 3.  Minnesota Statutes 2004, section 125A.11, 
155.19  subdivision 1, is amended to read: 
155.20     Subdivision 1.  [NONRESIDENT TUITION RATE; OTHER COSTS.] 
155.21  (a) For fiscal year 2006, when a school district provides 
155.22  instruction and services outside the district of residence, 
155.23  board and lodging, and any tuition to be paid, shall be paid by 
155.24  the district of residence.  The tuition rate to be charged for 
155.25  any child with a disability, excluding a pupil for whom tuition 
155.26  is calculated according to section 127A.47, subdivision 7, 
155.27  paragraph (d), must be the sum of (1) the actual cost of 
155.28  providing special instruction and services to the child 
155.29  including a proportionate amount for capital outlay and debt 
155.30  service but not including any amount for special transportation 
155.31  and unreimbursed building lease and debt service costs for 
155.32  facilities used primarily for special education, plus (2) the 
155.33  amount of general education revenue and referendum aid 
155.34  attributable to the pupil, minus (3) the amount of special 
155.35  education aid for children with a disability received on behalf 
155.36  of that child, minus (4) if the pupil receives special 
156.1   instruction and services outside the regular classroom for more 
156.2   than 60 percent of the school day, the amount of general 
156.3   education revenue and referendum aid, excluding portions 
156.4   attributable to district and school administration, district 
156.5   support services, operations and maintenance, capital 
156.6   expenditures, and pupil transportation, attributable to that 
156.7   pupil for the portion of time the pupil receives instruction in 
156.8   the regular classroom.  If the boards involved do not agree upon 
156.9   the tuition rate, either board may apply to the commissioner to 
156.10  fix the rate.  Notwithstanding chapter 14, the commissioner must 
156.11  then set a date for a hearing or request a written statement 
156.12  from each board, giving each board at least ten days' notice, 
156.13  and after the hearing or review of the written statements the 
156.14  commissioner must make an order fixing the tuition rate, which 
156.15  is binding on both school districts.  General education revenue 
156.16  and referendum aid attributable to a pupil must be calculated 
156.17  using the resident district's average general education and 
156.18  referendum revenue per adjusted pupil unit. 
156.19     (b) For fiscal year 2007 and later, when a school district 
156.20  provides special instruction and services for a pupil with a 
156.21  disability as defined in section 125A.02 outside the district of 
156.22  residence, excluding a pupil for whom an adjustment to special 
156.23  education aid is calculated according to section 127A.47, 
156.24  subdivision 7, paragraph (e), special education aid paid to the 
156.25  resident district must be reduced by an amount equal to (1) the 
156.26  actual cost of providing special instruction and services to the 
156.27  pupil, including a proportionate amount for special 
156.28  transportation and unreimbursed building lease and debt service 
156.29  costs for facilities used primarily for special education, plus 
156.30  (2) the amount of general education revenue and referendum aid 
156.31  attributable to that pupil, minus (3) the amount of special 
156.32  education aid for children with a disability received on behalf 
156.33  of that child, minus (4) if the pupil receives special 
156.34  instruction and services outside the regular classroom for more 
156.35  than 60 percent of the school day, the amount of general 
156.36  education revenue and referendum aid, excluding portions 
157.1   attributable to district and school administration, district 
157.2   support services, operations and maintenance, capital 
157.3   expenditures, and pupil transportation, attributable to that 
157.4   pupil for the portion of time the pupil receives instruction in 
157.5   the regular classroom.  General education revenue and referendum 
157.6   aid attributable to a pupil must be calculated using the 
157.7   resident district's average general education revenue and 
157.8   referendum aid per adjusted pupil unit.  If the resident 
157.9   district's special education aid is insufficient to make the 
157.10  full adjustment, the remaining adjustment shall be made to other 
157.11  state aid due to the district. 
157.12     Sec. 4.  Minnesota Statutes 2004, section 125A.24, is 
157.13  amended to read: 
157.14     125A.24 [PARENT ADVISORY COUNCILS.] 
157.15     In order to increase the involvement of parents of children 
157.16  with disabilities in district policy making and decision making, 
157.17  school districts must have a special education advisory council 
157.18  that is incorporated into the district's special education 
157.19  system plan. 
157.20     (1) This advisory council may be established either for 
157.21  individual districts or in cooperation with other districts who 
157.22  are members of the same special education cooperative. 
157.23     (2) A district may set up this council as a subgroup of an 
157.24  existing board, council, or committee. 
157.25     (3) At least half of the designated council members must be 
157.26  parents of students with a disability.  The council must include 
157.27  at least one member who is a parent of a nonpublic school 
157.28  student with a disability or an employee of a nonpublic school 
157.29  if a nonpublic school is located in the district.  Each local 
157.30  council must meet no less than once each year.  The number of 
157.31  members, frequency of meetings, and operational procedures are 
157.32  to be locally determined.  
157.33     Sec. 5.  Minnesota Statutes 2004, section 125A.28, is 
157.34  amended to read: 
157.35     125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 
157.36     An Interagency Coordinating Council of at least 17, but not 
158.1   more than 25 members is established, in compliance with Public 
158.2   Law 102-119, section 682.  The members must be appointed by the 
158.3   governor.  Council members must elect the council chair.  The 
158.4   representative of the commissioner may not serve as the chair.  
158.5   The council must be composed of at least five parents, including 
158.6   persons of color, of children with disabilities under age 12, 
158.7   including at least three parents of a child with a disability 
158.8   under age seven, five representatives of public or private 
158.9   providers of services for children with disabilities under age 
158.10  five, including a special education director, county social 
158.11  service director, local Head Start director, and a community 
158.12  health services or public health nursing administrator, one 
158.13  member of the senate, one member of the house of 
158.14  representatives, one representative of teacher preparation 
158.15  programs in early childhood-special education or other 
158.16  preparation programs in early childhood intervention, at least 
158.17  one representative of advocacy organizations for children with 
158.18  disabilities under age five, one physician who cares for young 
158.19  children with special health care needs, one representative each 
158.20  from the commissioners of commerce, education, health, human 
158.21  services, a representative from the state agency responsible for 
158.22  child care, and a representative from Indian health services or 
158.23  a tribal council.  Section 15.059, subdivisions 2 to 5, apply to 
158.24  the council.  The council must meet at least quarterly.  
158.25     The council must address methods of implementing the state 
158.26  policy of developing and implementing comprehensive, 
158.27  coordinated, multidisciplinary interagency programs of early 
158.28  intervention services for children with disabilities and their 
158.29  families. 
158.30     The duties of the council include recommending policies to 
158.31  ensure a comprehensive and coordinated system of all state and 
158.32  local agency services for children under age five with 
158.33  disabilities and their families.  The policies must address how 
158.34  to incorporate each agency's services into a unified state and 
158.35  local system of multidisciplinary assessment practices, 
158.36  individual intervention plans, comprehensive systems to find 
159.1   children in need of services, methods to improve public 
159.2   awareness, and assistance in determining the role of interagency 
159.3   early intervention committees.  
159.4      By September 1 On the date that Minnesota Part C Annual 
159.5   Performance Report is submitted to the federal Office of Special 
159.6   Education, the council must recommend to the governor and the 
159.7   commissioners of education, health, human services, commerce, 
159.8   and employment and economic development policies for a 
159.9   comprehensive and coordinated system. 
159.10     Notwithstanding any other law to the contrary, the State 
159.11  Interagency Coordinating Council expires on June 30, 2005 2009.  
159.12     Sec. 6.  Minnesota Statutes 2004, section 125A.76, 
159.13  subdivision 1, is amended to read: 
159.14     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
159.15  section, the definitions in this subdivision apply. 
159.16     (a) "Base year" for fiscal year 1998 and later fiscal years 
159.17  means the second fiscal year preceding the fiscal year for which 
159.18  aid will be paid. 
159.19     (b) "Basic revenue" has the meaning given it in section 
159.20  126C.10, subdivision 2.  For the purposes of computing basic 
159.21  revenue pursuant to this section, each child with a disability 
159.22  shall be counted as prescribed in section 126C.05, subdivision 1.
159.23     (c) "Essential personnel" means teachers, cultural 
159.24  liaisons, related services, and support services staff providing 
159.25  direct services to students.  Essential personnel may also 
159.26  include special education paraprofessionals or clericals 
159.27  providing support to teachers and students by preparing 
159.28  paperwork and making arrangements related to special education 
159.29  compliance requirements, including parent meetings and 
159.30  individual education plans. 
159.31     (d) "Average daily membership" has the meaning given it in 
159.32  section 126C.05. 
159.33     (e) "Program growth factor" means 1.046 1.04 for fiscal 
159.34  year 2003 years 2007 and 2008, and 1.0 for fiscal year 2004 2009 
159.35  and later. 
159.36     Sec. 7.  Minnesota Statutes 2004, section 125A.76, 
160.1   subdivision 4, is amended to read: 
160.2      Subd. 4.  [STATE TOTAL SPECIAL EDUCATION AID.] The state 
160.3   total special education aid for fiscal year 2004 equals 
160.4   $530,642,000.  The state total special education aid for fiscal 
160.5   year 2005 equals $529,164,000.  The state total special 
160.6   education aid for later fiscal years equals:  
160.7      (1) the state total special education aid for the preceding 
160.8   fiscal year; times 
160.9      (2) the program growth factor; times 
160.10     (3) the ratio of the state total average daily membership 
160.11  for the current fiscal year to the state total average daily 
160.12  membership for the preceding fiscal year. 
160.13     Sec. 8.  Minnesota Statutes 2004, section 125A.76, is 
160.14  amended by adding a subdivision to read: 
160.15     Subd. 5a.  [SPECIAL EDUCATION LEVY REVENUE.] (a) For fiscal 
160.16  year 2007, the state total special education revenue equals the 
160.17  state total special education aid times the program growth 
160.18  factor.  For fiscal year 2008 and later, the state total special 
160.19  education revenue equals: 
160.20     (1) the state total special education revenue for the 
160.21  preceding fiscal year, times 
160.22     (2) the program growth factor, times 
160.23     (3) the ratio of the state total average daily membership 
160.24  for the current fiscal year to the state total average daily 
160.25  membership for the preceding fiscal year. 
160.26     (b) For fiscal year 2007 and later, the state total special 
160.27  education levy revenue equals the difference between the state 
160.28  total special education revenue and the state total special 
160.29  education aid. 
160.30     (c) For fiscal year 2007 and later, the special education 
160.31  levy revenue for a school district, charter school, or state 
160.32  academy equals the product of the state total special education 
160.33  levy revenue times the ratio of the school district, charter 
160.34  school, or state academy's special education aid to the state 
160.35  total special education aid. 
160.36     Sec. 9.  Minnesota Statutes 2004, section 125A.76, is 
161.1   amended by adding a subdivision to read: 
161.2      Subd. 5b.  [SPECIAL EDUCATION LEVY.] To obtain special 
161.3   education levy revenue for fiscal year 2007 and later, a 
161.4   district may levy an amount not more than the product of its 
161.5   special education levy revenue for the fiscal year times the 
161.6   lesser of one or the ratio of its adjusted net tax capacity per 
161.7   adjusted pupil unit to $5,913. 
161.8      Sec. 10.  Minnesota Statutes 2004, section 125A.76, is 
161.9   amended by adding a subdivision to read: 
161.10     Subd. 5c.  [SPECIAL EDUCATION LEVY EQUALIZATION AID.] (a) 
161.11  For fiscal year 2007 and later, a school district's special 
161.12  education levy equalization aid equals its special education 
161.13  levy equalization revenue minus its special education levy times 
161.14  the ratio of the actual amount levied to the permitted levy. 
161.15     (b) The special education levy equalization aid for a 
161.16  charter school or a state academy equals the charter school or 
161.17  state academy's special education levy revenue. 
161.18     Sec. 11.  Minnesota Statutes 2004, section 125A.79, 
161.19  subdivision 1, is amended to read: 
161.20     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
161.21  section, the definitions in this subdivision apply. 
161.22     (a) "Unreimbursed special education cost" means the sum of 
161.23  the following: 
161.24     (1) expenditures for teachers' salaries, contracted 
161.25  services, supplies, equipment, and transportation services 
161.26  eligible for revenue under section 125A.76; plus 
161.27     (2) expenditures for tuition bills received under sections 
161.28  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
161.29  under section 125A.76, subdivision 2; minus 
161.30     (3) revenue for teachers' salaries, contracted services, 
161.31  supplies, and equipment under section 125A.76; minus 
161.32     (4) tuition receipts under sections 125A.03 to 125A.24 and 
161.33  125A.65 for services eligible for revenue under section 125A.76, 
161.34  subdivision 2. 
161.35     (b) "General revenue" means for fiscal year 1996, the sum 
161.36  of the general education revenue according to section 126C.10, 
162.1   subdivision 1, as adjusted according to section 127A.47, 
162.2   subdivision 7, plus the total referendum revenue according to 
162.3   section 126C.17, subdivision 4.  For fiscal years 1997 and 
162.4   later, "General revenue" means the sum of the general education 
162.5   revenue according to section 126C.10, subdivision 1, as adjusted 
162.6   according to section 127A.47, subdivisions 7 and 8, plus the 
162.7   total referendum revenue minus transportation sparsity revenue 
162.8   minus total operating capital revenue.  
162.9      (c) "Average daily membership" has the meaning given it in 
162.10  section 126C.05. 
162.11     (d) "Program growth factor" means 1.02 for fiscal year 
162.12  2003, and 1.0 for fiscal year 2004 and later. 
162.13     Sec. 12.  Minnesota Statutes 2004, section 125A.79, 
162.14  subdivision 5, is amended to read: 
162.15     Subd. 5.  [INITIAL EXCESS COST AID; FISCAL YEARS 2004 and 
162.16  2005.] For fiscal years 2002 2004 and later 2005, a district's 
162.17  initial excess cost aid equals the greatest of: 
162.18     (1) 75 percent of the difference between (i) the district's 
162.19  unreimbursed special education cost and (ii) 4.36 percent of the 
162.20  district's general revenue; 
162.21     (2) 70 percent of the difference between (i) the increase 
162.22  in the district's unreimbursed special education cost between 
162.23  the base year as defined in section 125A.76, subdivision 1, and 
162.24  the current year and (ii) 1.6 percent of the district's general 
162.25  revenue; or 
162.26     (3) zero. 
162.27     Sec. 13.  Minnesota Statutes 2004, section 125A.79, is 
162.28  amended by adding a subdivision to read: 
162.29     Subd. 5a.  [INITIAL EXCESS COST AID.] For fiscal years 2006 
162.30  and later, a district's initial excess cost aid equals the 
162.31  greater of: 
162.32     (1) 75 percent of the difference between (i) the district's 
162.33  unreimbursed special education cost for the previous fiscal 
162.34  year, and (ii) 4.36 percent of the district's general revenue 
162.35  for the previous fiscal year; or 
162.36     (2) zero. 
163.1      Sec. 14.  Minnesota Statutes 2004, section 125A.79, is 
163.2   amended by adding a subdivision to read: 
163.3      Subd. 5b.  [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 
163.4   years 2006 and later, a district's supplemental excess cost aid 
163.5   equals the greater of: 
163.6      (1) 75 percent of the difference between (i) the increase 
163.7   in the district's unreimbursed special education excess cost 
163.8   between the previous fiscal year and the current fiscal year, 
163.9   and (ii) $80 times the district's adjusted marginal cost pupil 
163.10  units for the current fiscal year; or 
163.11     (2) zero. 
163.12     (b) The state total supplemental excess cost aid for any 
163.13  fiscal year must not exceed $2,000,000.  If the state total 
163.14  supplemental excess cost aid according to paragraph (a) exceeds 
163.15  $2,000,000, the supplemental excess cost aid for each district 
163.16  shall be reduced proportionately so that the state total equals 
163.17  $2,000,000. 
163.18     Sec. 15.  Minnesota Statutes 2004, section 125A.79, 
163.19  subdivision 6, is amended to read: 
163.20     Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 
163.21  The state total special education excess cost aid for fiscal 
163.22  year 2004 equals $92,067,000.  The state total special education 
163.23  excess cost aid for fiscal year 2005 equals $91,811,000.  The 
163.24  state total special education excess cost aid for fiscal year 
163.25  2006 equals $102,746,000.  The state total special education 
163.26  excess cost aid for fiscal year 2006 2007 and later fiscal years 
163.27  equals: 
163.28     (1) the state total special education excess cost aid for 
163.29  the preceding fiscal year; times 
163.30     (2) the program growth factor; times 
163.31     (3) the ratio of the state total average daily membership 
163.32  for the current fiscal year to the state total average daily 
163.33  membership for the preceding fiscal year.  
163.34     Sec. 16.  Minnesota Statutes 2004, section 125A.79, 
163.35  subdivision 7, is amended to read: 
163.36     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 
164.1   A district's special education excess cost aid for fiscal year 
164.2   2002 and later years 2004 and 2005 equals the state total 
164.3   special education excess cost aid times the ratio of the 
164.4   district's initial excess cost aid to the state total initial 
164.5   excess cost aid. 
164.6      (b) A district's special education excess cost aid for 
164.7   fiscal year 2006 and later equals the sum of: 
164.8      (1) the product of the difference between the state total 
164.9   special education excess cost aid and the state total 
164.10  supplemental excess cost aid times the ratio of the district's 
164.11  initial excess cost aid to the state total initial excess cost 
164.12  aid; and 
164.13     (2) the district's supplemental excess cost aid according 
164.14  to subdivision 5b. 
164.15     Sec. 17.  Minnesota Statutes 2004, section 127A.45, 
164.16  subdivision 13, is amended to read: 
164.17     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
164.18  subdivisions 11, 12, 12a, and 14, each fiscal year, all 
164.19  education aids and credits in this chapter and chapters 120A, 
164.20  120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 
164.21  section 273.1392, shall be paid at 80 percent the current year 
164.22  aid payment percentage of the estimated entitlement during the 
164.23  fiscal year of the entitlement.  For the purposes of this 
164.24  subdivision, a district's estimated entitlement for special 
164.25  education excess cost aid under section 125A.79 for fiscal year 
164.26  2005 equals 70 percent of the district's entitlement for the 
164.27  second prior fiscal year.  For the purposes of this subdivision, 
164.28  a district's estimated entitlement for special education excess 
164.29  cost aid under section 125A.79 for fiscal year 2006 and later 
164.30  equals 75.5 percent of the district's entitlement for the 
164.31  current fiscal year.  The final adjustment payment, according to 
164.32  subdivision 9, must be the amount of the actual entitlement, 
164.33  after adjustment for actual data, minus the payments made during 
164.34  the fiscal year of the entitlement. 
164.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
164.36  following final enactment and applies to aid payments for fiscal 
165.1   year 2005 and later. 
165.2      Sec. 18.  Minnesota Statutes 2004, section 127A.47, 
165.3   subdivision 7, is amended to read: 
165.4      Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
165.5   education aid and special education aid for districts must be 
165.6   adjusted for each pupil attending a nonresident district under 
165.7   sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 
165.8   124D.68.  The adjustments must be made according to this 
165.9   subdivision. 
165.10     (a) General education aid paid to a resident district must 
165.11  be reduced by an amount equal to the referendum equalization aid 
165.12  attributable to the pupil in the resident district. 
165.13     (b) General education aid paid to a district serving a 
165.14  pupil in programs listed in this subdivision must be increased 
165.15  by an amount equal to the referendum equalization aid 
165.16  attributable to the pupil in the nonresident district.  
165.17     (c) If the amount of the reduction to be made from the 
165.18  general education aid of the resident district is greater than 
165.19  the amount of general education aid otherwise due the district, 
165.20  the excess reduction must be made from other state aids due the 
165.21  district. 
165.22     (d) For fiscal year 2006, the district of residence must 
165.23  pay tuition to a district or an area learning center, operated 
165.24  according to paragraph (e) (f), providing special instruction 
165.25  and services to a pupil with a disability, as defined in section 
165.26  125A.02, or a pupil, as defined in section 125A.51, who is 
165.27  enrolled in a program listed in this subdivision.  The tuition 
165.28  must be equal to (1) the actual cost of providing special 
165.29  instruction and services to the pupil, including a proportionate 
165.30  amount for debt service and for capital expenditure facilities 
165.31  and equipment, and debt service but not including any amount for 
165.32  special transportation and unreimbursed building lease and debt 
165.33  service costs for facilities used primarily for special 
165.34  education, minus (2) if the pupil receives special instruction 
165.35  and services outside the regular classroom for more than 60 
165.36  percent of the school day, the amount of general education 
166.1   revenue and referendum aid attributable to that pupil for the 
166.2   portion of time the pupil receives special instruction and 
166.3   services outside of the regular classroom, excluding portions 
166.4   attributable to district and school administration, district 
166.5   support services, operations and maintenance, capital 
166.6   expenditures, and pupil transportation, minus (3) special 
166.7   education aid but not including any amount for transportation, 
166.8   attributable to that pupil, that is received by the district 
166.9   providing special instruction and services.  For purposes of 
166.10  this paragraph, general education revenue and referendum aid 
166.11  attributable to a pupil must be calculated using the serving 
166.12  district's average general education revenue and referendum aid 
166.13  per adjusted pupil unit. 
166.14     (e) For fiscal year 2007 and later, special education aid 
166.15  paid to a resident district must be reduced by an amount equal 
166.16  to (1) the actual cost of providing special instruction and 
166.17  services, including special transportation and unreimbursed 
166.18  building lease and debt service costs for facilities used 
166.19  primarily for special education, for a pupil with a disability, 
166.20  as defined in section 125A.02, or a pupil, as defined in section 
166.21  125A.51, who is enrolled in a program listed in this 
166.22  subdivision, minus (2) if the pupil receives special instruction 
166.23  and services outside the regular classroom for more than 60 
166.24  percent of the school day, the amount of general education 
166.25  revenue and referendum aid attributable to that pupil for the 
166.26  portion of time the pupil receives special instruction and 
166.27  services outside of the regular classroom, excluding portions 
166.28  attributable to district and school administration, district 
166.29  support services, operations and maintenance, capital 
166.30  expenditures, and pupil transportation, minus (3) special 
166.31  education aid attributable to that pupil, that is received by 
166.32  the district providing special instruction and services.  For 
166.33  purposes of this paragraph, general education revenue and 
166.34  referendum aid attributable to a pupil must be calculated using 
166.35  the serving district's average general education revenue and 
166.36  referendum aid per adjusted pupil unit.  Special education aid 
167.1   paid to the district providing special instruction and services 
167.2   for the pupil, or to the fiscal agent district for a 
167.3   cooperative, must be increased by the amount of the reduction in 
167.4   the aid paid to the resident district.  If the resident 
167.5   district's special education aid is insufficient to make the 
167.6   full adjustment, the remaining adjustment shall be made to other 
167.7   state aids due to the district. 
167.8      (f) An area learning center operated by a service 
167.9   cooperative, intermediate district, education district, or a 
167.10  joint powers cooperative may elect through the action of the 
167.11  constituent boards to charge the resident district tuition for 
167.12  pupils rather than to have the general education revenue paid to 
167.13  a fiscal agent school district.  Except as provided in paragraph 
167.14  (d) or (e), the district of residence must pay tuition equal to 
167.15  at least 90 percent of the district average general education 
167.16  revenue per pupil unit minus an amount equal to the product of 
167.17  the formula allowance according to section 126C.10, subdivision 
167.18  2, times .0485, calculated without basic skills revenue and 
167.19  transportation sparsity revenue, times the number of pupil units 
167.20  for pupils attending the area learning center, plus the amount 
167.21  of compensatory revenue generated by pupils attending the area 
167.22  learning center. 
167.23     Sec. 19.  Minnesota Statutes 2004, section 134.31, is 
167.24  amended by adding a subdivision to read: 
167.25     Subd. 5a.  [ADVISORY COMMITTEE.] The commissioner shall 
167.26  appoint an advisory committee of five members to advise the 
167.27  staff of the Minnesota Library for the Blind and Physically 
167.28  Handicapped on long-range plans and library services.  Members 
167.29  shall be people who use the library.  Section 15.059 governs 
167.30  this committee except that the committee shall not expire.  
167.31     Sec. 20.  Laws 2003, First Special Session chapter 9, 
167.32  article 3, section 20, subdivision 6, as amended by Laws 2004, 
167.33  chapter 272, article 1, section 16, is amended to read: 
167.34     Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
167.35  cost aid under Minnesota Statutes, section 125A.79, subdivision 
167.36  7: 
168.1       $92,605,000     .....     2004 
168.2       $92,799,000 $95,572,000     .....     2005 
168.3      The 2004 appropriation includes $41,754,000 for 2003 and 
168.4   $50,851,000 for 2004. 
168.5      The 2005 appropriation includes $41,216,000 for 2004 and 
168.6   $51,583,000 $54,356,000 for 2005.  
168.7      Of the state total excess cost aid for fiscal year 2005, 
168.8   $150,000 shall be paid to Independent School District No. 2580, 
168.9   East Central, for unfunded special education costs that would 
168.10  otherwise be cross-subsidized with general education aid.  For 
168.11  purposes of Minnesota Statutes, section 125A.79, subdivision 7, 
168.12  the state total excess cost aid used in calculating district 
168.13  special education excess cost aid must be reduced by the amount 
168.14  paid to Independent School District No. 2580, East Central.  
168.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
168.16  following final enactment. 
168.17     Sec. 21.  [TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO 
168.18  NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.] 
168.19     Subdivision 1.  [PURPOSE; ESTABLISHMENT.] A task force on 
168.20  the delivery of special education services to nonpublic school 
168.21  students by public school districts shall be established to 
168.22  compare and evaluate how the individual needs of each child are 
168.23  being met, if services are provided in the least restrictive 
168.24  environment, and whether best practices and program efficiencies 
168.25  are being used in the specific areas of transportation, location 
168.26  of services, and shared time aid. 
168.27     Subd. 2.  [MEMBERS.] The governor shall appoint the members 
168.28  of the task force from each of the following: 
168.29     (1) two members from the Department of Education, one 
168.30  representing special education programs and policy and one 
168.31  representing district finances; 
168.32     (2) two special education teachers with one member from a 
168.33  public school and one member from a nonpublic school; 
168.34     (3) two special education administrators with one member 
168.35  from a public school and one member from a nonpublic school; 
168.36     (4) two members with one from each of two special education 
169.1   advocacy organizations; 
169.2      (5) two parents of children receiving special education 
169.3   services with one member from a public school and one member 
169.4   from a nonpublic school; 
169.5      (6) two elementary school principals with one member from a 
169.6   public school and one member from a nonpublic school; 
169.7      (7) two superintendents with one member from a public 
169.8   school district and one member from a nonpublic school district; 
169.9      (8) two school business officials with one from a public 
169.10  school and one from a nonpublic school; and 
169.11     (9) two school board officials with one from a public 
169.12  school and one from a nonpublic school. 
169.13     The task force may select additional members to work on the 
169.14  task force.  The commissioner of education shall provide 
169.15  necessary materials and assistance. 
169.16     Subd. 3.  [REPORT.] The task force shall submit a report by 
169.17  January 15, 2006, to the house of representatives and senate 
169.18  committees having jurisdiction over education on the delivery of 
169.19  special education services to nonpublic school students by 
169.20  public school districts, to compare and evaluate how the 
169.21  individual needs of each child are being met in the least 
169.22  restrictive environment, and whether best practices and program 
169.23  efficiencies are being used. 
169.24     Subd. 4.  [EXPIRATION.] This section expires January 31, 
169.25  2006. 
169.26     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
169.27  following final enactment. 
169.28     Sec. 22.  [APPROPRIATIONS.] 
169.29     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
169.30  indicated in this section are appropriated from the general fund 
169.31  to the Department of Education for the fiscal years designated. 
169.32     Subd. 2.  [SPECIAL EDUCATION; REGULAR.] For special 
169.33  education aid under Minnesota Statutes, section 125A.75: 
169.34       $528,846,000   .....     2006 
169.35       $527,446,000   .....     2007 
169.36     The 2006 appropriation includes $83,078,000 for 2005 and 
170.1   $445,768,000 for 2006. 
170.2      The 2007 appropriation includes $83,019,000 for 2006 and 
170.3   $444,427,000 for 2007. 
170.4      Subd. 3.  [SPECIAL EDUCATION; REGULAR EQUALIZATION 
170.5   AID.] For special education regular equalization aid: 
170.6        $2,176,000     .....     2007
170.7      The 2007 appropriation includes $0 for 2006 and $2,176,000 
170.8   for 2007. 
170.9      Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
170.10  under Minnesota Statutes, section 125A.75, subdivision 3, for 
170.11  children with disabilities placed in residential facilities 
170.12  within the district boundaries for whom no district of residence 
170.13  can be determined: 
170.14       $2,212,000     .....     2006 
170.15       $2,615,000     .....     2007 
170.16     If the appropriation for either year is insufficient, the 
170.17  appropriation for the other year is available.  
170.18     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
170.19  teacher travel for home-based services under Minnesota Statutes, 
170.20  section 125A.75, subdivision 1: 
170.21       $  187,000     .....     2006 
170.22       $  195,000     .....     2007 
170.23     The 2006 appropriation includes $28,000 for 2005 and 
170.24  $159,000 for 2006. 
170.25     The 2007 appropriation includes $29,000 for 2006 and 
170.26  $166,000 for 2007. 
170.27     Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
170.28  cost aid under Minnesota Statutes, section 125A.79, subdivision 
170.29  7: 
170.30       $102,782,000    .....     2006 
170.31       $102,483,000    .....     2007 
170.32     The 2006 appropriation includes $37,455,000 for 2005 and 
170.33  $65,327,000 for 2006. 
170.34     The 2007 appropriation includes $37,339,000 for 2006 and 
170.35  $65,144,000 for 2007.  
170.36     Subd. 7.  [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 
171.1   paying the costs a district incurs under Minnesota Statutes, 
171.2   section 125A.75, subdivision 8: 
171.3        $   17,000     .....     2006 
171.4        $   17,000     .....     2007 
171.5      Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
171.6   transition programs for children with disabilities under 
171.7   Minnesota Statutes, section 124D.454: 
171.8        $8,788,000     .....     2006 
171.9        $8,765,000     .....     2007 
171.10     The 2006 appropriation includes $1,380,000 for 2005 and 
171.11  $7,408,000 for 2006.  
171.12     The 2007 appropriation includes $1,379,000 for 2006 and 
171.13  $7,386,000 for 2007.  
171.14     Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
171.15  reimbursing serving school districts for unreimbursed eligible 
171.16  expenditures attributable to children placed in the serving 
171.17  school district by court action under Minnesota Statutes, 
171.18  section 125A.79, subdivision 4: 
171.19       $   65,000     .....     2006 
171.20       $   70,000     .....     2007 
171.21     Subd. 10.  [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 
171.22  special education out-of-state tuition according to Minnesota 
171.23  Statutes, section 125A.79, subdivision 8: 
171.24       $  250,000     .....     2006 
171.25       $  250,000     .....     2007 
171.26                             ARTICLE 4 
171.27                     FACILITIES AND TECHNOLOGY 
171.28     Section 1.  Minnesota Statutes 2004, section 123B.53, 
171.29  subdivision 1, is amended to read: 
171.30     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
171.31  section, the eligible debt service revenue of a district is 
171.32  defined as follows: 
171.33     (1) the amount needed to produce between five and six 
171.34  percent in excess of the amount needed to meet when due the 
171.35  principal and interest payments on the obligations of the 
171.36  district for eligible projects according to subdivision 2, 
172.1   including the amounts necessary for repayment of energy loans 
172.2   according to section 216C.37 or sections 298.292 to 298.298, 
172.3   debt service loans and capital loans, lease purchase payments 
172.4   under section 126C.40, subdivision 2, alternative facilities 
172.5   levies under section 123B.59, subdivision 5, minus 
172.6      (2) the amount of debt service excess levy reduction for 
172.7   that school year calculated according to the procedure 
172.8   established by the commissioner. 
172.9      (b) The obligations in this paragraph are excluded from 
172.10  eligible debt service revenue: 
172.11     (1) obligations under section 123B.61; 
172.12     (2) the part of debt service principal and interest paid 
172.13  from the taconite environmental protection fund or northeast 
172.14  Minnesota economic protection trust; 
172.15     (3) obligations issued under Laws 1991, chapter 265, 
172.16  article 5, section 18, as amended by Laws 1992, chapter 499, 
172.17  article 5, section 24; and 
172.18     (4) obligations under section 123B.62. 
172.19     (c) For purposes of this section, if a preexisting school 
172.20  district reorganized under sections 123A.35 to 123A.43, 123A.46, 
172.21  and 123A.48 is solely responsible for retirement of the 
172.22  preexisting district's bonded indebtedness, capital loans or 
172.23  debt service loans, debt service equalization aid must be 
172.24  computed separately for each of the preexisting districts. 
172.25     (d) For purposes of this section, the adjusted net tax 
172.26  capacity determined according to section 127A.48 shall be 
172.27  adjusted to include a portion of the tax capacity of property 
172.28  generally exempted from ad valorem taxes under section 272.02, 
172.29  subdivisions 64 and 65, equal to the product of that tax 
172.30  capacity times the ratio of the eligible debt service revenue 
172.31  attributed to general obligation bonds to the total eligible 
172.32  debt service revenue of the district.  
172.33     Sec. 2.  Minnesota Statutes 2004, section 123B.54, is 
172.34  amended to read: 
172.35     123B.54 [DEBT SERVICE APPROPRIATION.] 
172.36     (a) $28,367,000 $21,624,000 in fiscal year 2006 2008 and 
173.1   $25,560,000 $20,403,000 in fiscal year 2007 2009 and later are 
173.2   appropriated from the general fund to the commissioner of 
173.3   education for payment of debt service equalization aid under 
173.4   section 123B.53.  
173.5      (b) The appropriations in paragraph (a) must be reduced by 
173.6   the amount of any money specifically appropriated for the same 
173.7   purpose in any year from any state fund. 
173.8      Sec. 3.  Minnesota Statutes 2004, section 123B.59, 
173.9   subdivision 3, is amended to read: 
173.10     Subd. 3.  [BOND AUTHORIZATION.] (a) A school district may 
173.11  issue general obligation bonds under this section to finance 
173.12  facilities plans approved by its board and the commissioner.  
173.13  Chapter 475, except sections 475.58 and 475.59, must be complied 
173.14  with.  The district may levy under subdivision 5 for the debt 
173.15  service revenue.  The authority to issue bonds under this 
173.16  section is in addition to any bonding authority authorized by 
173.17  this chapter, or other law.  The amount of bonding authority 
173.18  authorized under this section must be disregarded in calculating 
173.19  the bonding or net debt limits of this chapter, or any other law 
173.20  other than section 475.53, subdivision 4. 
173.21     (b) At least 20 days before a district issues bonds the 
173.22  earliest of solicitation of bids, the issuance of bonds, or the 
173.23  final certification of levies under this subdivision 5, it the 
173.24  district must publish notice of the intended projects, the 
173.25  amount of the bond issue, and the total amount of district 
173.26  indebtedness, and the commissioner's review and comment, if 
173.27  applicable. 
173.28     Sec. 4.  Minnesota Statutes 2004, section 123B.59, 
173.29  subdivision 3a, is amended to read: 
173.30     Subd. 3a.  [LEVY AUTHORIZATION.] (a) A school district may 
173.31  levy under this section to finance the portion of facilities 
173.32  plans approved by its board and the commissioner that are not 
173.33  financed through bond issues according to subdivision 3. 
173.34     (b) At least 20 days before a final district certification 
173.35  of levies under this subdivision 5, it the district must 
173.36  publish notice of the intended projects, including the total 
174.1   estimated project cost, and the commissioner's review and 
174.2   comment, if applicable. 
174.3      Sec. 5.  Minnesota Statutes 2004, section 123B.63, 
174.4   subdivision 2, is amended to read: 
174.5      Subd. 2.  [USES OF THE ACCOUNT.] Money in the capital 
174.6   project referendum account must be used only for the purposes 
174.7   specified in section 126C.10, subdivision 14, for operating 
174.8   capital revenue, including the costs of acquisition and 
174.9   betterment for a project that has been reviewed under section 
174.10  123B.71 and has been approved according to subdivision 3. 
174.11     Sec. 6.  [123B.591] [DEFERRED MAINTENANCE REVENUE.] 
174.12     Subdivision 1.  [ELIGIBILITY.] (a) An independent or 
174.13  special school district that does not qualify to participate in 
174.14  the alternative facilities bonding and levy under section 
174.15  123B.59, subdivision 1, paragraph (a), is eligible to receive 
174.16  deferred maintenance revenue. 
174.17     (b) Deferred maintenance revenue is subject to reverse 
174.18  referendum according to section 126C.48, subdivision 9. 
174.19     Subd. 2.  [DEFERRED MAINTENANCE REVENUE.] The deferred 
174.20  maintenance revenue for an eligible school district equals the 
174.21  product of $45 times the adjusted marginal cost pupil units for 
174.22  the school year times the lesser of one or the ratio of the 
174.23  district's average age of building space to 35 years. 
174.24     Subd. 3.  [DEFERRED MAINTENANCE LEVY.] To obtain deferred 
174.25  maintenance revenue for fiscal year 2007 and later, a district 
174.26  may levy an amount not more than the product of its deferred 
174.27  maintenance revenue for the fiscal year times the lesser of one 
174.28  or the ratio of its adjusted net tax capacity per adjusted 
174.29  marginal cost pupil unit to $5,913. 
174.30     Subd. 4.  [DEFERRED MAINTENANCE AID.] For fiscal year 2007 
174.31  and later, a district's deferred maintenance aid equals its 
174.32  deferred maintenance revenue minus its deferred maintenance levy 
174.33  times the ratio of the actual amount levied to the permitted 
174.34  levy. 
174.35     Subd. 5.  [RESERVE ACCOUNT.] Deferred maintenance revenue 
174.36  must be maintained in a reserve account within the general fund. 
175.1   Deferred maintenance revenue may be used only for expenditures 
175.2   that would be eligible for alternative facilities bonding and 
175.3   levy revenue under section 123B.59, subdivision 2, paragraph 
175.4   (a), if the district qualified for that revenue under section 
175.5   123B.59, subdivision 1, paragraph (a). 
175.6      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
175.7   fiscal year 2007. 
175.8      Sec. 7.  Minnesota Statutes 2004, section 123B.71, 
175.9   subdivision 8, is amended to read: 
175.10     Subd. 8.  [REVIEW AND COMMENT.] A school district, a 
175.11  special education cooperative, or a cooperative unit of 
175.12  government, as defined in section 123A.24, subdivision 2, must 
175.13  not initiate an installment contract for purchase or a lease 
175.14  agreement, hold a referendum for bonds, nor solicit bids for new 
175.15  construction, expansion, or remodeling of an educational 
175.16  facility that requires an expenditure in excess of $500,000 per 
175.17  school site prior to review and comment by the commissioner.  
175.18  The commissioner may exempt a facility maintenance project 
175.19  funded with general education aid and levy, alternative 
175.20  facilities bonding and levy program, or health and safety 
175.21  revenue from this provision after reviewing a written request 
175.22  from a school district describing the scope of work.  A school 
175.23  board shall not separate portions of a single project into 
175.24  components to avoid the requirements of this subdivision. 
175.25     Sec. 8.  Minnesota Statutes 2004, section 123B.71, 
175.26  subdivision 12, is amended to read: 
175.27     Subd. 12.  [PUBLICATION.] (a) At least 20 days but not more 
175.28  than 60 days before a referendum for bonds or solicitation of 
175.29  bids for a project that has received a positive or unfavorable 
175.30  review and comment under section 123B.70, the school board shall 
175.31  publish the commissioner's review and comment of that project in 
175.32  the legal newspaper of the district.  Supplementary information 
175.33  shall be available to the public.  
175.34     (b) The publication requirement in paragraph (a) does not 
175.35  apply to alternative facilities projects approved under section 
175.36  123B.59.  Publication for alternative facilities projects shall 
176.1   be as specified in section 123B.59, subdivisions 3 and 3a. 
176.2      Sec. 9.  [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 
176.3   EQUITY AID.] 
176.4      Subdivision 1.  [COSTS TO BE SUBMITTED.] (a) A district or 
176.5   charter school shall submit its actual 
176.6   telecommunications/Internet access costs for the previous fiscal 
176.7   year, adjusted for any e-rate revenue received, to the 
176.8   department by August 15 of each year as prescribed by the 
176.9   commissioner.  Costs eligible for reimbursement under this 
176.10  program are limited to the following: 
176.11     (1) ongoing or recurring telecommunications/Internet access 
176.12  costs associated with Internet access, data lines, and video 
176.13  links providing: 
176.14     (i) the equivalent of one data line, video link, or 
176.15  integrated data/video link that relies on a transport medium 
176.16  that operates at a minimum speed of 1.544 megabytes per second 
176.17  (T1) for each elementary school, middle school, or high school 
176.18  under section 120A.05, subdivisions 9, 11, and 13, including the 
176.19  recurring telecommunications line lease costs and ongoing 
176.20  Internet access service fees; or 
176.21     (ii) the equivalent of one data line or video circuit, or 
176.22  integrated data/video link that relies on a transport medium 
176.23  that operates at a minimum speed of 1.544 megabytes per second 
176.24  (T1) for each district, including recurring telecommunications 
176.25  line lease costs and ongoing Internet access service fees; 
176.26     (2) recurring costs of contractual or vendor-provided 
176.27  maintenance on the school district's wide area network to the 
176.28  point of presence at the school building up to the router, 
176.29  codec, or other service delivery equipment located at the point 
176.30  of presence termination at the school or school district; 
176.31     (3) recurring costs of cooperative, shared arrangements for 
176.32  regional delivery of telecommunications/Internet access between 
176.33  school districts, postsecondary institutions, and public 
176.34  libraries including network gateways, peering points, regional 
176.35  network infrastructure, Internet2 access, and network support, 
176.36  maintenance, and coordination; and 
177.1      (4) service provider installation fees for installation of 
177.2   new telecommunications lines or increased bandwidth. 
177.3      (b) Costs not eligible for reimbursement under this program 
177.4   include: 
177.5      (1) recurring costs of school district staff providing 
177.6   network infrastructure support; 
177.7      (2) recurring costs associated with voice and standard 
177.8   telephone service; 
177.9      (3) costs associated with purchase of network hardware, 
177.10  telephones, computers, or other peripheral equipment needed to 
177.11  deliver telecommunications access to the school or school 
177.12  district; 
177.13     (4) costs associated with laying fiber for 
177.14  telecommunications access; 
177.15     (5) costs associated with wiring school or school district 
177.16  buildings; 
177.17     (6) costs associated with purchase, installation, or 
177.18  purchase and installation of Internet filtering; and 
177.19     (7) costs associated with digital content, including 
177.20  on-line learning or distance learning programming, and 
177.21  information databases. 
177.22     Subd. 2.  [E-RATES.] To be eligible for aid under this 
177.23  section, a district or charter school is required to file an 
177.24  e-rate application either separately or through its 
177.25  telecommunications access cluster and have a current technology 
177.26  plan on file with the department.  Discounts received on 
177.27  telecommunications expenditures shall be reflected in the costs 
177.28  submitted to the department for aid under this section. 
177.29     Subd. 3.  [REIMBURSEMENT CRITERIA.] The commissioner shall 
177.30  develop criteria for approving costs submitted by school 
177.31  districts and charter schools under subdivision 1. 
177.32     Subd. 4.  [DISTRICT AID.] A district or charter school's 
177.33  Internet access equity aid equals 90 percent of the district or 
177.34  charter school's approved cost for the previous fiscal year 
177.35  according to subdivision 1 exceeding $15 times the district's 
177.36  adjusted marginal cost pupil units for the previous fiscal year. 
178.1      Subd. 5.  [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 
178.2   NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 
178.3   formal request by or on behalf of a nonpublic school, not 
178.4   including home schools, located in that district or area, 
178.5   ongoing or recurring telecommunications access services to the 
178.6   nonpublic school either through existing district providers or 
178.7   through separate providers. 
178.8      (b) The amount of district aid for telecommunications 
178.9   access services for each nonpublic school under this subdivision 
178.10  equals the lesser of: 
178.11     (1) 90 percent of the nonpublic school's approved cost for 
178.12  the previous fiscal year according to subdivision 1 exceeding 
178.13  $10 times the number of weighted pupils enrolled at the 
178.14  nonpublic school as of October 1 of the previous school year; or 
178.15     (2) the product of the district's aid per pupil unit 
178.16  according to subdivision 4 times the number of weighted pupils 
178.17  enrolled at the nonpublic school as of October 1 of the previous 
178.18  school year. 
178.19     (c) For purposes of this subdivision, nonpublic school 
178.20  pupils shall be weighted by grade level using the weighting 
178.21  factors defined in section 126C.05, subdivision 1. 
178.22     (d) Each year, a district providing services under 
178.23  paragraph (a) may claim up to five percent of the aid determined 
178.24  in paragraph (b) for costs of administering this subdivision.  
178.25  No district may expend an amount for these telecommunications 
178.26  access services which exceeds the amount allocated under this 
178.27  subdivision.  The nonpublic school is responsible for the 
178.28  Internet access costs not covered by this section. 
178.29     (e) At the request of a nonpublic school, districts may 
178.30  allocate the amount determined in paragraph (b) directly to the 
178.31  nonpublic school to pay for or offset the nonpublic school's 
178.32  costs for telecommunications access services, however, the 
178.33  amount allocated directly to the nonpublic school may not exceed 
178.34  the actual amount of the school's ongoing or recurring 
178.35  telecommunications access costs. 
178.36     Subd. 6.  [SEVERABILITY.] If any portion of this section is 
179.1   found by a court to be unconstitutional, the remaining portions 
179.2   of the section shall remain in effect. 
179.3      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
179.4   fiscal year 2006. 
179.5      Sec. 10.  Minnesota Statutes 2004, section 126C.63, 
179.6   subdivision 5, is amended to read: 
179.7      Subd. 5.  [LEVY.] "Levy" means a district's net debt 
179.8   service levy after the reduction of debt service equalization 
179.9   aid under section 123B.53, subdivision 6.  For taxes payable in 
179.10  2003 and later, each district's maximum effort debt service levy 
179.11  for purposes of subdivision 8, must be reduced by an equal 
179.12  number of percentage points if the commissioner of finance 
179.13  determines that the levy reduction will not result in a payment 
179.14  from the general fund in the state treasury according to section 
179.15  16A.641, as would be required under section 126C.72, subdivision 
179.16  3.  A district's levy that is adjusted under this section must 
179.17  not be reduced below 30.1 25 percent of the district's adjusted 
179.18  net tax capacity. 
179.19     Sec. 11.  Minnesota Statutes 2004, section 126C.63, 
179.20  subdivision 8, is amended to read: 
179.21     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 
179.22  effort debt service levy" means the lesser of: 
179.23     (1) a levy in whichever of the following amounts is 
179.24  applicable: 
179.25     (i) in any district receiving a debt service loan for a 
179.26  debt service levy payable in 2002 and thereafter, or granted a 
179.27  capital loan after January 1, 2002, a levy in total dollar 
179.28  amount computed at a rate of 40 32 percent of adjusted net tax 
179.29  capacity for taxes payable in 2002 and thereafter; 
179.30     (ii) in any district receiving a debt service loan for a 
179.31  debt service levy payable in 2001 or earlier, or granted a 
179.32  capital loan before January 2, 2001 2002, a levy in a total 
179.33  dollar amount computed at a rate of 32 28 percent of adjusted 
179.34  net tax capacity for taxes payable in 2002 and thereafter; or 
179.35     (2) a levy in any district for which a capital loan was 
179.36  approved prior to August 1, 1981, a levy in a total dollar 
180.1   amount equal to the sum of the amount of the required debt 
180.2   service levy and an amount which when levied annually will in 
180.3   the opinion of the commissioner be sufficient to retire the 
180.4   remaining interest and principal on any outstanding loans from 
180.5   the state within 30 years of the original date when the capital 
180.6   loan was granted.  
180.7      (b) The board in any district affected by the provisions of 
180.8   paragraph (a), clause (2), may elect instead to determine the 
180.9   amount of its levy according to the provisions of paragraph (a), 
180.10  clause (1).  If a district's capital loan is not paid within 30 
180.11  years because it elects to determine the amount of its levy 
180.12  according to the provisions of paragraph (a), clause (2), the 
180.13  liability of the district for the amount of the difference 
180.14  between the amount it levied under paragraph (a), clause (2), 
180.15  and the amount it would have levied under paragraph (a), clause 
180.16  (1), and for interest on the amount of that difference, must not 
180.17  be satisfied and discharged pursuant to Minnesota Statutes 1988, 
180.18  or an earlier edition of Minnesota Statutes if applicable, 
180.19  section 124.43, subdivision 4. 
180.20     Sec. 12.  Laws 1996, chapter 412, article 5, section 24, is 
180.21  amended to read: 
180.22     Sec. 24.  [BONDS PAID FROM TACONITE PRODUCTION TAX 
180.23  REVENUES.] 
180.24     Subdivision 1.  [REFUNDING BONDS.] The appropriation of 
180.25  funds from the distribution of taconite production tax revenues 
180.26  to the taconite environmental protection tax fund and the 
180.27  northeast Minnesota economic protection fund made by Laws 1988, 
180.28  chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 
180.29  329, article 5, section 20, Laws 1990, chapter 604, article 8, 
180.30  section 13, Laws 1992, chapter 499, article 5, section 29, and 
180.31  by sections 18 to 20 Laws 1996, chapter 412, article 5, sections 
180.32  20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to 
180.33  26, shall continue to apply to bonds issued under Minnesota 
180.34  Statutes, chapter 475, to refund bonds originally issued 
180.35  pursuant to those chapters. 
180.36     Subd. 2.  [LOCAL PAYMENTS.] School districts that are 
181.1   required in Laws 1988, chapter 718, article 7, sections 62 and 
181.2   63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, 
181.3   chapter 604, article 8, section 13, Laws 1992, chapter 499, 
181.4   article 5, section 29, and by sections 18 to 20 Laws 1996, 
181.5   chapter 412, article 5, sections 20 to 22, and Laws 2000, 
181.6   chapter 489, article 5, sections 24 to 26, to impose levies to 
181.7   pay debt service on the bonds issued under those provisions to 
181.8   the extent the principal and interest on the bonds is not paid 
181.9   by distributions from the taconite environmental protection fund 
181.10  and the northeast Minnesota economic protection trust, may pay 
181.11  their portion of the principal and interest from any funds 
181.12  available to them.  To the extent a school district uses funds 
181.13  other than the proceeds of a property tax levy to pay its share 
181.14  of the principal and interest on the bonds, the requirement to 
181.15  impose a property tax to pay the local share does not apply to 
181.16  the school district. 
181.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
181.18  following final enactment. 
181.19     Sec. 13.  [LEVY; GLENCOE-SILVER LAKE.] 
181.20     For taxes payable in 2006 only, Independent School District 
181.21  No. 2859, Glencoe-Silver Lake, may levy an amount up to $81,276. 
181.22  Of that amount, $63,850 is for recovering the cost of replacing 
181.23  a gymnasium floor at Lakeside Elementary School resulting from 
181.24  storm damage and $17,426 is for recovering the cost of the 
181.25  Lincoln Junior High School water service line and associated 
181.26  work. 
181.27     <b>[EFFECTIVE DATE.]</b> This section is effective for taxes 
181.28  payable in 2006. 
181.29     Sec. 14.  [MOUNDS VIEW; SALE OF PROPERTY.] 
181.30     (a) Independent School District No. 621, Mounds View, must 
181.31  establish a trust fund for the proceeds from its sale of the 
181.32  Hills of Oaks property in Shoreview, Minnesota.  Notwithstanding 
181.33  Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 
181.34  2004, the district must permanently transfer the proceeds of the 
181.35  sale from the reserved operating capital account in its general 
181.36  fund to the trust fund.  If the sale of the Hills of Oaks 
182.1   property has not been completed and the proceeds have not been 
182.2   deposited on or by June 30, 2004, in the reserved operating 
182.3   capital account, then when the sale is completed, the school 
182.4   district must deposit the proceeds from the sale directly into 
182.5   the trust fund. 
182.6      (b) The district may only use the interest from the trust 
182.7   fund proceeds from the sale of the property described in 
182.8   paragraph (a) for general operating expenses. 
182.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
182.10  following final enactment. 
182.11     Sec. 15.  [APPROPRIATIONS.] 
182.12     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
182.13  indicated in this section are appropriated from the general fund 
182.14  to the Department of Education for the fiscal years designated.  
182.15     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
182.16  safety aid according to Minnesota Statutes, section 123B.57, 
182.17  subdivision 5: 
182.18       $  802,000     .....     2006 
182.19       $  578,000     .....     2007 
182.20     The 2006 appropriation includes $211,000 for 2005 and 
182.21  $591,000 for 2006. 
182.22     The 2007 appropriation includes $109,000 for 2006 and 
182.23  $469,000 for 2007. 
182.24     Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
182.25  according to Minnesota Statutes, section 123B.53, subdivision 6: 
182.26       $25,654,000    .....     2006 
182.27       $24,134,000    .....     2007 
182.28     The 2006 appropriation includes $4,654,000 for 2005 and 
182.29  $21,000,000 for 2006. 
182.30     The 2007 appropriation includes $3,911,000 for 2006 and 
182.31  $20,223,000 for 2007. 
182.32     Subd. 4.  [ALTERNATIVE FACILITIES BONDING AID.] For 
182.33  alternative facilities bonding aid, according to Minnesota 
182.34  Statutes, section 123B.59, subdivision 1: 
182.35       $19,287,000    .....     2006 
182.36       $19,287,000    .....     2007 
183.1      The 2006 appropriation includes $3,028,000 for 2005 and 
183.2   $16,259,000 for 2006. 
183.3      The 2007 appropriation includes $3,028,000 for 2006 and 
183.4   $16,259,000 for 2007. 
183.5      Subd. 5.  [TELECOMMUNICATIONS INTERNET ACCESS AID.] For 
183.6   telecommunications Internet access aid: 
183.7        $4,500,000     .....     2006 
183.8        $4,600,000     .....     2007 
183.9      Subd. 6.  [DEFERRED MAINTENANCE AID.] For deferred 
183.10  maintenance aid under Minnesota Statutes, section 123B.591: 
183.11       $2,684,000     .....     2007 
183.12     The 2007 appropriation includes $0 for 2006 and $2,684,000 
183.13  for 2007. 
183.14                             ARTICLE 5 
183.15                      NUTRITION AND ACCOUNTING 
183.16     Section 1.  [123B.748] [REGULAR CLASSROOM EXPENDITURES.] 
183.17     Subdivision 1.  [DEFINITIONS.] "Direct classroom 
183.18  expenditures" means the amount defined by the National Center of 
183.19  Educational Statistics of the United States Department of 
183.20  Education.  "Total operating expenditures" has the meaning given 
183.21  it under the uniform financial accounting and reporting 
183.22  standards.  Total operating expenditures include all operating 
183.23  expenditures incurred for the benefit of elementary and 
183.24  secondary education during that school year, except capital 
183.25  expenditures.  Community education, construction, debt service, 
183.26  and trust and agency expenditures are nonoperating expenditures. 
183.27     Subd. 2.  [EXPECTED EXPENDITURE LEVEL.] A school district 
183.28  must spend at least 65 percent of its total operating 
183.29  expenditures on direct classroom expenditures.  If a school 
183.30  district's direct classroom expenditures in fiscal year 2005 are 
183.31  less than 65 percent of its total operating expenditures, the 
183.32  district must increase its direct classroom expenditures by at 
183.33  least two percentage points per year beginning in fiscal year 
183.34  2006. 
183.35     Subd. 3.  [SUPERINTENDENT VERIFICATION.] A superintendent 
183.36  must include in the audited financial statements submitted to 
184.1   the commissioner under section 123B.77 a letter signed by the 
184.2   superintendent certifying the percent of the district's total 
184.3   operating expenditures that were actually spent on direct 
184.4   classroom expenditures for that school year. 
184.5      Subd. 4.  [WAIVER.] A school district that is unable to 
184.6   meet the expenditure standards established under subdivision 2 
184.7   may apply to the commissioner for a waiver.  The waiver request 
184.8   must list the reasons why the district's direct classroom 
184.9   expenditures cannot meet the requirements of subdivision 2 and 
184.10  describe the changes the district intends to meet in the 
184.11  subsequent year in order to meet the direct classroom 
184.12  instruction requirements.  The commissioner must grant or deny a 
184.13  waiver request within 60 days of receiving the request. 
184.14     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005, 
184.15  for the 2005-2006 school year. 
184.16     Sec. 2.  Minnesota Statutes 2004, section 123B.749, is 
184.17  amended to read: 
184.18     123B.749 [STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.] 
184.19     (a) Prior to approving a collective bargaining agreement 
184.20  that does not result from an interest arbitration decision, a 
184.21  school board must determine by board resolution that the 
184.22  proposed agreement will not cause structural imbalance in the 
184.23  district's budget during the period of the agreement. 
184.24     (b) A school board may only determine that an agreement 
184.25  will not cause structural imbalance if expenditures will not 
184.26  exceed available funds, taking into account: 
184.27     (1) current state aid formulas; and 
184.28     (2) reasonable and comprehensive projections of ongoing 
184.29  revenues and expenditures for the period of the agreement.  It 
184.30  is expected that Onetime revenue may not be used for ongoing 
184.31  expenditures.  Any amount in excess of the board's guideline for 
184.32  the district's general fund balance is not onetime revenue for 
184.33  the purposes of this section.  The school board must make 
184.34  available with the resolution a summary of the projections and 
184.35  calculations supporting the determination.  The projections and 
184.36  calculations must include state aid formulas, pupil units, and 
185.1   employee costs, including the terms of labor agreements, 
185.2   including the agreement under consideration, fringe benefits, 
185.3   severance pay, and staff changes. 
185.4      (c) In addition to the determination required in paragraph 
185.5   (a), the school board must project revenues, expenditures, and 
185.6   fund balances for one year two years following the period of the 
185.7   agreement.  The projections must include the categories of 
185.8   information described in paragraph (b), be reasonable and 
185.9   comprehensive, and reference current state aid formulas.  
185.10     (d) All projections and calculations required by this 
185.11  section and estimated district employee terminations must be 
185.12  made available to the public prior to and, at, and after the 
185.13  meeting where the resolution is adopted in a manner consistent 
185.14  with state law on public notice and access to public data.  
185.15     (e) In an interest arbitration, the district must submit, 
185.16  and the exclusive bargaining representative may submit, proposed 
185.17  determinations with supporting projections and calculations 
185.18  consistent with paragraph (b) of the effect of the potential 
185.19  decision on the structural balance of the district's budget.  
185.20  The arbitrator must consider the potential effect of a decision 
185.21  on the structural balance of the district's budget for the term 
185.22  of the agreement.  The arbitrator's decision must describe the 
185.23  effect of the decision on the structural balance of the 
185.24  district's budget in a manner consistent with paragraph (b).  
185.25  The arbitrator's decision must also show the effect of the 
185.26  decision on the school budget for one year following the term of 
185.27  the contract at issue.  Within 30 days of receipt of the 
185.28  decision or when the board acts on the decision, whichever is 
185.29  earlier, the school board must by resolution determine the 
185.30  effect of the decision on the structural balance of its budget 
185.31  for the term of the agreement consistent with paragraph (b). 
185.32     (f) A copy of the resolution with the supporting 
185.33  projections and calculations must be submitted to the 
185.34  commissioner of education with the uniform collective bargaining 
185.35  agreement settlement document within 30 days of adoption of the 
185.36  resolution.  The commissioner must develop a model form for use 
186.1   by districts in reporting projections and calculations.  The 
186.2   commissioner must not accept any reports that fail to comply 
186.3   with this section.  The commissioner must make all resolutions, 
186.4   projections, and calculations available to the public. 
186.5      (g) Compliance with this section by itself is not an unfair 
186.6   labor practice under section 179A.13, subdivision 2.  
186.7      Sec. 3.  Minnesota Statutes 2004, section 123B.75, 
186.8   subdivision 5, is amended to read: 
186.9      Subd. 5.  [LEVY RECOGNITION.] (a) "School district tax 
186.10  settlement revenue" means the current, delinquent, and 
186.11  manufactured home property tax receipts collected by the county 
186.12  and distributed to the school district. 
186.13     (b) In June of 2003, the school district must recognize as 
186.14  revenue, in the fund for which the levy was made, the lesser of: 
186.15     (1) the sum of May, June, and July school district tax 
186.16  settlement revenue received in that calendar year, plus general 
186.17  education aid according to section 126C.13, subdivision 4, 
186.18  received in July and August of that calendar year; or 
186.19     (2) the sum of: 
186.20     (i) 31 percent of the referendum levy certified according 
186.21  to section 126C.17, in calendar year 2000; plus 
186.22     (ii) the entire amount of the levy certified in the prior 
186.23  calendar year according to section 124D.86, subdivision 4, for 
186.24  school districts receiving revenue under sections 124D.86, 
186.25  subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
186.26  1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 
186.27  2; 126C.457; and 126C.48, subdivision 6. 
186.28     (c) For fiscal year 2004 and later years, in June of each 
186.29  year, the school district must recognize as revenue, in the fund 
186.30  for which the levy was made, the lesser of: 
186.31     (1) the sum of May, June, and July school district tax 
186.32  settlement revenue received in that calendar year, plus general 
186.33  education aid according to section 126C.13, subdivision 4, 
186.34  received in July and August of that calendar year; or 
186.35     (2) the sum of: 
186.36     (i) the greater of 45 48.6 percent of the referendum levy 
187.1   certified according to section 126C.17, in the prior calendar 
187.2   year or 31 percent of the referendum levy certified according to 
187.3   section 126C.17, in calendar year 2000; plus 
187.4      (ii) the entire amount of the levy certified in the prior 
187.5   calendar year according to section 124D.86, subdivision 4, for 
187.6   school districts receiving revenue under sections 124D.86, 
187.7   subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 
187.8   1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 
187.9   2; 126C.457; and 126C.48, subdivision 6; plus 
187.10     (iii) 45 48.6 percent of the amount of the levy certified 
187.11  in the prior calendar year for the school district's general and 
187.12  community service funds, plus or minus auditor's adjustments, 
187.13  not including levy portions that are assumed by the state, that 
187.14  remains after subtracting the referendum levy certified 
187.15  according to section 126C.17 and the amount recognized according 
187.16  to clause (ii). 
187.17     Sec. 4.  Minnesota Statutes 2004, section 124D.111, 
187.18  subdivision 1, is amended to read: 
187.19     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
187.20  year, the state must pay districts participating participants in 
187.21  the national school lunch program the amount of eight cents for 
187.22  each full paid, reduced, and free student lunch served to 
187.23  students in the district. 
187.24     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
187.25  2006. 
187.26     Sec. 5.  Minnesota Statutes 2004, section 124D.111, 
187.27  subdivision 2, is amended to read: 
187.28     Subd. 2.  [APPLICATION.] A school districts district, 
187.29  charter school, nonpublic school, or other participant in the 
187.30  national school lunch program shall apply to the department for 
187.31  this payment on forms provided by the department. 
187.32     <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
187.33  2006. 
187.34     Sec. 6.  Minnesota Statutes 2004, section 124D.118, 
187.35  subdivision 4, is amended to read: 
187.36     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
188.1   guidelines, the commissioner shall reimburse each participating 
188.2   public or nonpublic school nine 14 cents for each half-pint of 
188.3   milk that is served to kindergarten students and is not part of 
188.4   a school lunch or breakfast reimbursed under section 124D.111 or 
188.5   124D.1158. 
188.6      <b>[EFFECTIVE DATE.]</b> This section is effective for fiscal year 
188.7   2006. 
188.8      Sec. 7.  Minnesota Statutes 2004, section 127A.42, 
188.9   subdivision 2, is amended to read: 
188.10     Subd. 2.  [VIOLATIONS OF LAW.] The commissioner may reduce 
188.11  or withhold the district's state aid for any school year 
188.12  whenever the board of the district authorizes or permits 
188.13  violations of law within the district by: 
188.14     (1) employing a teacher who does not hold a valid teaching 
188.15  license or permit in a public school; 
188.16     (2) noncompliance with a mandatory rule of general 
188.17  application promulgated by the commissioner in accordance with 
188.18  statute, unless special circumstances make enforcement 
188.19  inequitable, impose an extraordinary hardship on the district, 
188.20  or the rule is contrary to the district's best interests; 
188.21     (3) the district's continued performance of a contract made 
188.22  for the rental of rooms or buildings for school purposes or for 
188.23  the rental of any facility owned or operated by or under the 
188.24  direction of any private organization, if the contract has been 
188.25  disapproved, the time for review of the determination of 
188.26  disapproval has expired, and no proceeding for review is 
188.27  pending; 
188.28     (4) any practice which is a violation of sections 1 and 2 
188.29  of article 13 of the Constitution of the state of Minnesota; 
188.30     (5) failure to reasonably provide for a resident pupil's 
188.31  school attendance under Minnesota Statutes; 
188.32     (6) noncompliance with state laws prohibiting 
188.33  discrimination because of race, color, creed, religion, national 
188.34  origin, sex, age, marital status, status with regard to public 
188.35  assistance or disability, as defined in sections 363A.08 to 
188.36  363A.19 and 363A.28, subdivision 10; or 
189.1      (7) using funds contrary to the statutory purpose of the 
189.2   funds; or 
189.3      (8) failing to submit a report under section 123B.749, 
189.4   paragraph (f). 
189.5   The reduction or withholding must be made in the amount and upon 
189.6   the procedure provided in this section.  
189.7      Sec. 8.  Minnesota Statutes 2004, section 127A.45, 
189.8   subdivision 2, is amended to read: 
189.9      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
189.10  receipts" means payments by county treasurers pursuant to 
189.11  section 276.10, apportionments from the school endowment fund 
189.12  pursuant to section 127A.33, apportionments by the county 
189.13  auditor pursuant to section 127A.34, subdivision 2, and payments 
189.14  to school districts by the commissioner of revenue pursuant to 
189.15  chapter 298.  
189.16     (b) The term "cumulative amount guaranteed" means the 
189.17  product of 
189.18     (1) the cumulative disbursement percentage shown in 
189.19  subdivision 3; times 
189.20     (2) the sum of 
189.21     (i) 80 percent the current year aid payment percentage of 
189.22  the estimated aid and credit entitlements paid according to 
189.23  subdivision 13; plus 
189.24     (ii) 100 percent of the entitlements paid according to 
189.25  subdivisions 11 and 12; plus 
189.26     (iii) the other district receipts.  
189.27     (c) The term "payment date" means the date on which state 
189.28  payments to districts are made by the electronic funds transfer 
189.29  method.  If a payment date falls on a Saturday, a Sunday, or a 
189.30  weekday which is a legal holiday, the payment shall be made on 
189.31  the immediately preceding business day.  The commissioner may 
189.32  make payments on dates other than those listed in subdivision 3, 
189.33  but only for portions of payments from any preceding payment 
189.34  dates which could not be processed by the electronic funds 
189.35  transfer method due to documented extenuating circumstances.  
189.36     (d) "Current year payment percentage" means 84.3 percent. 
190.1      <b>[EFFECTIVE DATE.]</b> This section is effective for state aid 
190.2   payments for fiscal year 2006. 
190.3      Sec. 9.  Minnesota Statutes 2004, section 127A.45, 
190.4   subdivision 10, is amended to read: 
190.5      Subd. 10.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
190.6   fiscal year state general fund payments for a district 
190.7   nonoperating fund must be made at 80 percent the current year 
190.8   aid payment percentage of the estimated entitlement during the 
190.9   fiscal year of the entitlement.  This amount shall be paid in 12 
190.10  equal monthly installments.  The amount of the actual 
190.11  entitlement, after adjustment for actual data, minus the 
190.12  payments made during the fiscal year of the entitlement must be 
190.13  paid prior to October 31 of the following school year.  The 
190.14  commissioner may make advance payments of debt service 
190.15  equalization aid for a district's debt service fund earlier than 
190.16  would occur under the preceding schedule if the district submits 
190.17  evidence showing a serious cash flow problem in the fund.  The 
190.18  commissioner may make earlier payments during the year and, if 
190.19  necessary, increase the percent of the entitlement paid to 
190.20  reduce the cash flow problem. 
190.21     <b>[EFFECTIVE DATE.]</b> This section is effective for state aid 
190.22  payments for fiscal year 2006. 
190.23     Sec. 10.  Minnesota Statutes 2004, section 127A.45, 
190.24  subdivision 14, is amended to read: 
190.25     Subd. 14.  [NONPUBLIC AIDS.] The state shall pay aid 
190.26  according to sections 123B.40 to 123B.48 for pupils attending 
190.27  nonpublic schools as follows: 
190.28     (1) an advance payment by November 30 equal to 80 percent 
190.29  the current year aid payment percentage of the estimated 
190.30  entitlement for the current fiscal year; and 
190.31     (2) a final payment by October 31 of the following fiscal 
190.32  year, adjusted for actual data.  
190.33     If a payment advance to meet cash flow needs is requested 
190.34  by a district and approved by the commissioner, the state shall 
190.35  pay nonpublic pupil transportation aid according to section 
190.36  123B.92 by October 31. 
191.1      <b>[EFFECTIVE DATE.]</b> This section is effective for state aid 
191.2   payments for fiscal year 2006. 
191.3      Sec. 11.  Minnesota Statutes 2004, section 127A.45, 
191.4   subdivision 16, is amended to read: 
191.5      Subd. 16.  [PAYMENTS TO THIRD PARTIES.] Notwithstanding 
191.6   subdivision 3, 80 percent the current year aid payment 
191.7   percentage of the amounts under section 123A.26, subdivision 3, 
191.8   shall be paid in equal installments on August 30, December 30, 
191.9   and March 30, with a 20 percent final adjustment payment on 
191.10  October 30 of the next fiscal year of the remaining amount. 
191.11     <b>[EFFECTIVE DATE.]</b> This section is effective for state aid 
191.12  payments for fiscal year 2006. 
191.13     Sec. 12.  [FUND TRANSFERS.] 
191.14     Subdivision 1.  [LAKE CRYSTAL-WELLCOME MEMORIAL.] (a) 
191.15  Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
191.16  on June 30, 2005, upon approval of the commissioner of 
191.17  education, Independent School District No. 2071, Lake 
191.18  Crystal-Wellcome Memorial, may permanently transfer up to 
191.19  $132,754 from its reserved account for handicapped access to its 
191.20  undesignated general fund balance. 
191.21     (b) Prior to making the fund transfer, Independent School 
191.22  District No. 2071, Lake Crystal-Wellcome Memorial, must 
191.23  demonstrate to the commissioner's satisfaction that the 
191.24  district's school buildings are accessible to students or 
191.25  employees with disabilities. 
191.26     (c) Notwithstanding Minnesota Statutes, section 123B.79 or 
191.27  123B.80, on June 30 of 2005, 2006, and 2007, Independent School 
191.28  District No. 2071, Lake Crystal-Wellcome Memorial, may 
191.29  permanently transfer any balance in its reserved for operating 
191.30  capital account resulting from the sale of school property to 
191.31  its undesignated general fund balance.  
191.32     Subd. 2.  [ROCKFORD.] Notwithstanding Minnesota Statutes, 
191.33  sections 123B.79, 123B.80, and 475.61, subdivision 4, 
191.34  Independent School District No. 883, Rockford, on June 30, 2005, 
191.35  may permanently transfer up to $660,000 from its debt redemption 
191.36  fund to the undesignated balance of its general fund without 
192.1   making a levy reduction. 
192.2      Subd. 3.  [RUSSELL.] Notwithstanding Minnesota Statutes, 
192.3   section 123B.79 or 123B.80, on June 30, 2005, Independent School 
192.4   District No. 418, Russell, may transfer up to $50,000 from its 
192.5   reserved capital accounts in its general fund to its 
192.6   undesignated fund balance. 
192.7      Subd. 4.  [RUTHTON.] Notwithstanding Minnesota Statutes, 
192.8   section 123B.79 or 123B.80, on June 30, 2005, Independent School 
192.9   District No. 584, Ruthton, may permanently transfer up to 
192.10  $140,000 from its reserved for operating capital account to the 
192.11  undesignated general fund balance. 
192.12     Subd. 5.  [WINDOM.] Notwithstanding Minnesota Statutes, 
192.13  section 123B.79 or 123B.80, Independent School District No. 177, 
192.14  Windom, on June 30, 2005, may permanently transfer up to 
192.15  $270,000 from its reserved for operating capital account to the 
192.16  undesignated balance in its general fund.  
192.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
192.18  following final enactment. 
192.19     Sec. 13.  [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 
192.20  FORKS.] 
192.21     Notwithstanding the time limits established in Minnesota 
192.22  Statutes, section 123B.58, subdivision 3, Independent School 
192.23  District No. 595, East Grand Forks, may levy its remaining 
192.24  disabled access levy authority over five or fewer years. 
192.25     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
192.26  following final enactment. 
192.27     Sec. 14.  [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 
192.28     (a) The commissioner of education, when making offsetting 
192.29  levy adjustments between levy categories to ensure that each 
192.30  levy category is positive for Independent School District No. 
192.31  599, Fertile-Beltrami, shall make such adjustments first between 
192.32  levy categories that are imposed on identical tax bases before 
192.33  making such adjustments between levy categories that are imposed 
192.34  on different tax bases.  The commissioner may make offsetting 
192.35  levy adjustments between the general fund and the debt service 
192.36  fund, if necessary. 
193.1      (b) The commissioner of education must make the offsetting 
193.2   levy adjustments according to the process in paragraph (a) until 
193.3   Independent School District No. 599, Fertile-Beltrami's current 
193.4   referendum authority, under Minnesota Statutes, section 126C.17, 
193.5   expires. 
193.6      Sec. 15.  [FUNDING REDUCTION.] 
193.7      If House File 1664 or a similarly styled bill does not pass 
193.8   the house of representatives, the commissioner of education must 
193.9   adjust the current year aid payment percentage under Minnesota 
193.10  Statutes, section 127A.45, subdivision 3, to reduce spending by 
193.11  $134,000,000 during the 2006-2007 biennium. 
193.12     Sec. 16.  [APPROPRIATIONS.] 
193.13     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
193.14  indicated in this section are appropriated from the general fund 
193.15  to the Department of Education for the fiscal years designated. 
193.16     Subd. 2.  [SCHOOL LUNCH.] For school lunch aid according to 
193.17  Minnesota Statutes, section 124D.111, and Code of Federal 
193.18  Regulations, title 7, section 210.17:  
193.19       $7,748,000     .....     2006 
193.20       $7,826,000     .....     2007 
193.21     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
193.22  MILK.] For traditional school breakfast aid and kindergarten 
193.23  milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
193.24       $4,934,000     .....     2006 
193.25       $5,023,000     .....     2007 
193.26     Subd. 4.  [SUMMER SCHOOL SERVICE REPLACEMENT AID.] For 
193.27  summer food service replacement aid under Minnesota Statutes, 
193.28  section 124D.119: 
193.29       $  150,000     .....     2006 
193.30       $  150,000     .....     2007 
193.31                             ARTICLE 6 
193.32                             LIBRARIES 
193.33     Section 1.  [DEPARTMENT OF EDUCATION; LIBRARY 
193.34  APPROPRIATIONS.] 
193.35     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
193.36  indicated in this section are appropriated from the general fund 
194.1   to the Department of Education for the fiscal years designated. 
194.2      Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
194.3   grants under Minnesota Statutes, section 134.355: 
194.4        $ 8,570,000     .....     2006 
194.5        $ 8,570,000     .....     2007 
194.6      The 2006 appropriation includes $1,345,000 for 2005 and 
194.7   $7,225,000 for 2006. 
194.8      The 2007 appropriation includes $1,345,000 for 2006 and 
194.9   $7,225,000 for 2007.  
194.10     Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
194.11  grants under Minnesota Statutes, sections 134.353 and 134.354, 
194.12  to multicounty, multitype library systems: 
194.13       $  903,000     .....     2006 
194.14       $  903,000     .....     2007 
194.15     The 2006 appropriation includes $141,000 for 2005 and 
194.16  $762,000 for 2006. 
194.17     The 2007 appropriation includes $141,000 for 2006 and 
194.18  $762,000 for 2007.  
194.19     Subd. 4.  [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 
194.20  licenses to online databases selected in cooperation with the 
194.21  Higher Education Services Office for school media centers, 
194.22  public libraries, state government agency libraries, and public 
194.23  or private college or university libraries: 
194.24       $1,039,000     .....     2006 
194.25       $1,091,000     .....     2007 
194.26     Any balance in the first year does not cancel but is 
194.27  available in the second year. 
194.28     Subd. 5.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
194.29  regional library telecommunications aid under Minnesota 
194.30  Statutes, section 134.355: 
194.31       $1,200,000     .....     2006 
194.32       $1,200,000     .....     2007 
194.33     The 2006 appropriation includes $188,000 for 2005 and 
194.34  $1,012,000 for 2006. 
194.35     The 2007 appropriation includes $188,000 for 2006 and 
194.36  $1,012,000 for 2007. 
195.1      Subd. 6.  [MNLINK.] To support school media center and 
195.2   public library participation in MnLink: 
195.3        $  250,000     .....     2006 
195.4        $  250,000     .....     2007 
195.5                              ARTICLE 7 
195.6                           EARLY EDUCATION 
195.7      Section 1.  Minnesota Statutes 2004, section 121A.17, 
195.8   subdivision 1, is amended to read: 
195.9      Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 
195.10  Every school board must provide for a mandatory program of early 
195.11  childhood developmental screening for children once before 
195.12  school entrance, targeting children who are between 3-1/2 three 
195.13  and four years old.  This screening program must be established 
195.14  either by one board, by two or more boards acting in 
195.15  cooperation, by service cooperatives, by early childhood family 
195.16  education programs, or by other existing programs.  This 
195.17  screening examination is a mandatory requirement for a student 
195.18  to continue attending kindergarten or first grade in a public 
195.19  school.  A child need not submit to developmental screening 
195.20  provided by a board if the child's health records indicate to 
195.21  the board that the child has received comparable developmental 
195.22  screening from a public or private health care organization or 
195.23  individual health care provider.  A public school must assign a 
195.24  child a student identification number, as defined by the 
195.25  commissioner, at the time the child receives a developmental 
195.26  screening or the child's parent or guardian provides the public 
195.27  school with the child's health records indicating that the child 
195.28  received a comparable developmental screening.  A school 
195.29  district must transmit essential data under section 125B.07, 
195.30  subdivision 6, to the department.  Districts are encouraged to 
195.31  reduce the costs of preschool developmental screening programs 
195.32  by utilizing using volunteers in implementing the program. 
195.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
195.34  following final enactment. 
195.35     Sec. 2.  Minnesota Statutes 2004, section 121A.17, 
195.36  subdivision 3, is amended to read: 
196.1      Subd. 3.  [SCREENING PROGRAM.] (a) A screening program must 
196.2   include at least the following components:  developmental 
196.3   assessments that measure the child's cognitive, social and 
196.4   emotional development, hearing and vision screening or referral, 
196.5   immunization review and referral, the child's height and weight, 
196.6   identification of risk factors that may influence learning, an 
196.7   interview with the parent about the child, and referral for 
196.8   assessment, diagnosis, and treatment when potential needs are 
196.9   identified.  The district and the person performing or 
196.10  supervising the screening must provide a parent or guardian with 
196.11  clear written notice that the parent or guardian may decline to 
196.12  answer questions or provide information about family 
196.13  circumstances that might affect development and identification 
196.14  of risk factors that may influence learning.  The notice must 
196.15  clearly state that declining to answer questions or provide 
196.16  information does not prevent the child from being enrolled in 
196.17  kindergarten or first grade if all other screening components 
196.18  are met.  If a parent or guardian is not able to read and 
196.19  comprehend the written notice, the district and the person 
196.20  performing or supervising the screening must convey the 
196.21  information in another manner.  The notice must also inform the 
196.22  parent or guardian that a child need not submit to the district 
196.23  screening program if the child's health records indicate to the 
196.24  school that the child has received comparable developmental 
196.25  screening performed within the preceding 365 days by a public or 
196.26  private health care organization or individual health care 
196.27  provider.  The notice must be given to a parent or guardian at 
196.28  the time the district initially provides information to the 
196.29  parent or guardian about screening and must be given again at 
196.30  the screening location.  
196.31     (b) All screening components shall be consistent with the 
196.32  standards of the state commissioner of health for early 
196.33  developmental screening programs.  A developmental screening 
196.34  program must not provide laboratory tests or a physical 
196.35  examination to any child.  The district must request from the 
196.36  public or private health care organization or the individual 
197.1   health care provider the results of any laboratory test or 
197.2   physical examination within the 12 months preceding a child's 
197.3   scheduled screening.  
197.4      (c) If a child is without health coverage, the school 
197.5   district must refer the child to an appropriate health care 
197.6   provider.  
197.7      (d) A board may offer additional components such as 
197.8   nutritional, physical and dental assessments, review of family 
197.9   circumstances that might affect development, blood pressure, 
197.10  laboratory tests, and health history.  
197.11     (e) If a statement signed by the child's parent or guardian 
197.12  is submitted to the administrator or other person having general 
197.13  control and supervision of the school that the child has not 
197.14  been screened because of conscientiously held beliefs of the 
197.15  parent or guardian, the screening is not required.  
197.16     Sec. 3.  Minnesota Statutes 2004, section 121A.17, 
197.17  subdivision 5, is amended to read: 
197.18     Subd. 5.  [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 
197.19  The board must inform each resident family with a child eligible 
197.20  to participate in the developmental screening program about the 
197.21  availability of the program and the state's requirement that a 
197.22  child receive a developmental screening or provide health 
197.23  records indicating that the child received a comparable 
197.24  developmental screening from a public or private health care 
197.25  organization or individual health care provider not later than 
197.26  30 days after the first day of attending kindergarten in a 
197.27  public school.  A school district must inform all resident 
197.28  families with eligible children under age seven that their 
197.29  children may receive a developmental screening conducted either 
197.30  by the school district or by a public or private health care 
197.31  organization or individual health care provider.  
197.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
197.33  following final enactment. 
197.34     Sec. 4.  Minnesota Statutes 2004, section 121A.19, is 
197.35  amended to read: 
197.36     121A.19 [DEVELOPMENTAL SCREENING AID.] 
198.1      Each school year, the state must pay a district $40 $50 for 
198.2   each three-year-old child screened; $40 for each four-year-old 
198.3   child screened; and $30 for each five-year-old child screened 
198.4   prior to kindergarten according to the requirements of section 
198.5   121A.17.  If this amount of aid is insufficient, the district 
198.6   may permanently transfer from the general fund an amount that, 
198.7   when added to the aid, is sufficient. 
198.8      Sec. 5.  Minnesota Statutes 2004, section 124D.135, 
198.9   subdivision 1, is amended to read: 
198.10     Subdivision 1.  [REVENUE.] The revenue for early childhood 
198.11  family education programs for a school district equals $120 for 
198.12  fiscal years 2003 and 2004 and $96 for fiscal year 2005, $115 
198.13  for fiscal year 2006, and $125 for fiscal year 2007 and later, 
198.14  times the greater of: 
198.15     (1) 150; or 
198.16     (2) the number of people under five years of age residing 
198.17  in the district on October 1 of the previous school year. 
198.18     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
198.19  fiscal year 2006.  
198.20     Sec. 6.  Minnesota Statutes 2004, section 124D.135, 
198.21  subdivision 5, is amended to read: 
198.22     Subd. 5.  [USE OF REVENUE RESTRICTED.] Early childhood 
198.23  family education revenue may be used only for early childhood 
198.24  family education programs.  Not more than five percent of early 
198.25  childhood family education revenue, as defined in subdivision 7, 
198.26  may be used to administer early childhood family education 
198.27  programs.  
198.28     Sec. 7.  Minnesota Statutes 2004, section 124D.15, 
198.29  subdivision 1, is amended to read: 
198.30     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
198.31  group of districts may establish a school readiness program 
198.32  for eligible children age three to entering kindergarten.  The 
198.33  purpose of a school readiness program is to provide all eligible 
198.34  children adequate opportunities to participate in child 
198.35  development programs that enable the children to enter school 
198.36  with the necessary skills and behavior and family stability and 
199.1   support to progress and flourish prepare children cognitively, 
199.2   socially, emotionally, and physically to enter kindergarten. 
199.3      Sec. 8.  Minnesota Statutes 2004, section 124D.15, 
199.4   subdivision 3, is amended to read: 
199.5      Subd. 3.  [PROGRAM ELIGIBILITY REQUIREMENTS.] (a) A school 
199.6   readiness program provider must include the following: 
199.7      (1) a comprehensive plan to anticipate and meet the needs 
199.8   of participating families by coordinating existing social 
199.9   services programs and by fostering collaboration among agencies 
199.10  or other community-based organizations and programs that provide 
199.11  a full range of flexible, family-focused services to families 
199.12  with young children assess each child when the child enters and 
199.13  again before the child leaves the program to inform program 
199.14  planning and promote kindergarten readiness; 
199.15     (2) a development and learning component to help children 
199.16  develop appropriate social, cognitive, and physical skills, and 
199.17  emotional well-being determine whether to implement model early 
199.18  childhood indicators of progress developed by the department; 
199.19     (3) health referral services to address children's medical, 
199.20  dental, mental health, and nutritional needs provide 
199.21  comprehensive program content based on early childhood research 
199.22  and professional practice that is focused on children's 
199.23  cognitive skills and social emotional development and prepares 
199.24  children for the transition to kindergarten; 
199.25     (4) a nutrition component to meet children's daily 
199.26  nutritional needs arrange for early childhood screening and 
199.27  appropriate referral; 
199.28     (5) parents' involvement in meeting children's educational, 
199.29  health, social service, and other needs involve parents in 
199.30  program planning and decision making; 
199.31     (6) community outreach to ensure participation by families 
199.32  who represent the racial, cultural, and economic diversity of 
199.33  the community; coordinate with relevant community-based 
199.34  services; and 
199.35     (7) community-based staff and program resources, including 
199.36  interpreters, that reflect the racial and ethnic characteristics 
200.1   of the children participating in the program; and 
200.2      (8) a literacy component to ensure that the literacy needs 
200.3   of parents are addressed through referral to and cooperation 
200.4   cooperate with adult basic education programs and other adult 
200.5   literacy programs. 
200.6      (b) A district that establishes a school readiness program 
200.7   under this section must monitor the school performance of those 
200.8   students who participate in the program and subsequently attend 
200.9   a district school in grades kindergarten through grade 3, 
200.10  compare the school performance of those students with other 
200.11  students in the same grade in the district who did not 
200.12  participate in a school readiness program, and report the 
200.13  performance comparisons annually by May 1 to the school board 
200.14  and the department. 
200.15     Sec. 9.  Minnesota Statutes 2004, section 124D.15, is 
200.16  amended by adding a subdivision to read: 
200.17     Subd. 3a.  [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 
200.18  school readiness program provider must submit a biennial plan 
200.19  for approval by the commissioner before receiving aid under 
200.20  section 124D.16.  The plan must describe how the program meets 
200.21  the program requirements under subdivision 3.  A school district 
200.22  by April 1 must submit the plan for approval by the commissioner 
200.23  in the form and manner prescribed by the commissioner.  One-half 
200.24  the districts must first submit the plan by April 1, 2006, and 
200.25  one-half the districts must first submit the plan by April 1, 
200.26  2007, as determined by the commissioner. 
200.27     (b) Programs receiving school readiness funds annually must 
200.28  submit a report to the department. 
200.29     Sec. 10.  Minnesota Statutes 2004, section 124D.15, 
200.30  subdivision 5, is amended to read: 
200.31     Subd. 5.  [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 
200.32  district is encouraged to may contract with a public charter 
200.33  school or nonprofit community-based organization to provide 
200.34  eligible children developmentally appropriate services that meet 
200.35  the program requirements in subdivision 3.  In the alternative, 
200.36  a district may pay tuition or fees to place an eligible child in 
201.1   an existing program.  A district may establish a new program 
201.2   where no existing, reasonably accessible program meets the 
201.3   program requirements in subdivision 3.  Districts must submit a 
201.4   copy of each contract to the commissioner with the biennial plan.
201.5   Services may be provided in a site-based program or in the home 
201.6   of the child or a combination of both.  The district may not 
201.7   restrict participation to district residents.  
201.8      Sec. 11.  Minnesota Statutes 2004, section 124D.15, 
201.9   subdivision 10, is amended to read: 
201.10     Subd. 10.  [SUPERVISION.] A program provided by a board 
201.11  must be supervised by a licensed early childhood teacher, a 
201.12  certified early childhood educator, or a licensed parent 
201.13  educator.  A program provided according to a contract between a 
201.14  district and a nonprofit organization or another private 
201.15  organization must be supervised and staffed according to the 
201.16  terms of the contract.  
201.17     Sec. 12.  Minnesota Statutes 2004, section 124D.15, 
201.18  subdivision 12, is amended to read: 
201.19     Subd. 12.  [PROGRAM FEES.] A district may must adopt a 
201.20  sliding fee schedule based on a family's income but must waive a 
201.21  fee for a participant unable to pay.  The fees charged must be 
201.22  designed to enable eligible children of all socioeconomic levels 
201.23  to participate in the program. 
201.24     Sec. 13.  Minnesota Statutes 2004, section 124D.15, is 
201.25  amended by adding a subdivision to read: 
201.26     Subd. 14.  [ASSISTANCE.] The department must assist 
201.27  districts, upon request, with programs under this section. 
201.28     Sec. 14.  Minnesota Statutes 2004, section 124D.16, 
201.29  subdivision 2, is amended to read: 
201.30     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
201.31  receive school readiness aid for eligible prekindergarten pupils 
201.32  enrolled in a school readiness program under section 124D.15 if 
201.33  the program biennial plan required by subdivision 1 section 
201.34  124D.15, subdivision 3a, has been approved by the commissioner. 
201.35     (b) For fiscal year 2002 and thereafter, a district must 
201.36  receive school readiness aid equal to: 
202.1      (1) the number of eligible four-year-old children in the 
202.2   district on October 1 for the previous school year times the 
202.3   ratio of 50 percent of the total school readiness aid for that 
202.4   year to the total number of eligible four-year-old children 
202.5   reported to the commissioner for the previous school year; plus 
202.6      (2) the number of pupils enrolled in the school district 
202.7   from families eligible for the free or reduced school lunch 
202.8   program for the second previous school year times the ratio of 
202.9   50 percent of the total school readiness aid for that year to 
202.10  the total number of pupils in the state from families eligible 
202.11  for the free or reduced school lunch program for the second 
202.12  previous school year. 
202.13     Sec. 15.  Minnesota Statutes 2004, section 124D.16, 
202.14  subdivision 3, is amended to read: 
202.15     Subd. 3.  [USE OF AID.] School readiness aid shall be used 
202.16  only to provide a school readiness program and may be used to 
202.17  provide transportation.  Not more than five percent of the 
202.18  aid program revenue, as defined in subdivision 5, may be used 
202.19  for the cost of administering the program.  Aid must be used to 
202.20  supplement and not supplant local, state, and federal funding.  
202.21  Aid may not be used for instruction and services required under 
202.22  sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to 
202.23  purchase land or construct buildings, but may be used to lease 
202.24  or renovate existing buildings. 
202.25     Sec. 16.  [124D.175] [MINNESOTA EARLY LEARNING FOUNDATION 
202.26  PROPOSAL.] 
202.27     (a) To the extent revenue is available for the purposes of 
202.28  this section, the commissioner must implement paragraphs (b) and 
202.29  (c). 
202.30     (b) The commissioner must implement an early childhood 
202.31  development grant program for low-income and other families that 
202.32  increases the effectiveness and expands the capacity of early 
202.33  childhood development programs, which may include child care 
202.34  programs, and leads to improved early childhood parent education 
202.35  and children's kindergarten readiness.  The program must include:
202.36     (1) grant awards to existing early childhood development 
203.1   program providers that also provide parent education programs 
203.2   and to qualified providers proposing to implement pilot programs 
203.3   for this same purpose; 
203.4      (2) grant awards to enable low-income families to 
203.5   participate in these programs; 
203.6      (3) grant awards to improve overall programmatic quality 
203.7   including, among other things, a system to determine the 
203.8   relative quality of providers, proposals for early learning 
203.9   guidelines, and school readiness assessments; and 
203.10     (4) an evaluation of the programmatic and financial 
203.11  efficacy of all these programs, which may be performed using the 
203.12  model early childhood indicators of progress developed by the 
203.13  department. 
203.14  This grant program must not supplant existing early childhood 
203.15  development programs or child care funds. 
203.16     (c) The commissioner must contract with a private 
203.17  nonprofit, section 501(c)(3) organization to implement the 
203.18  requirements of paragraph (b).  The private nonprofit 
203.19  organization must be governed by a board of directors composed 
203.20  of members from the public and nonpublic sectors, where the 
203.21  nonpublic sector members compose a simple majority of board 
203.22  members and where the public sector members are state and local 
203.23  government officials and kindergarten through grade 12 or 
203.24  postsecondary educators appointed by the governor.  The board of 
203.25  directors must appoint an executive director and must seek 
203.26  advice from geographically and ethnically diverse parents of 
203.27  young children and representatives of early childhood 
203.28  development providers, kindergarten through grade 12 and 
203.29  postsecondary educators, public libraries and the business 
203.30  sector.  All other terms and conditions under which board 
203.31  members serve and operate must be described in the articles and 
203.32  bylaws of the organization.  The private nonprofit organization 
203.33  is not a state agency and is not subject to any laws governing 
203.34  public agencies.  
203.35     (d) This section expires June 30, 2011.  
203.36     Sec. 17.  Minnesota Statutes 2004, section 126C.15, is 
204.1   amended by adding a subdivision to read: 
204.2      Subd. 2a.  [PREKINDERGARTEN PROGRAMS.] Revenue allocated 
204.3   under subdivision 2, paragraph (c), must be reserved and used 
204.4   for programs and activities that prepare children ages 3-1/2 
204.5   from families eligible for the free or reduced-price school 
204.6   lunch program to enter kindergarten.  Programs may serve 
204.7   resident and nonresident children.  Districts may contract with 
204.8   private preschools and other providers of prekindergarten 
204.9   programs. 
204.10     Sec. 18.  Minnesota Statutes 2004, section 179A.03, 
204.11  subdivision 14, is amended to read: 
204.12     Subd. 14.  [PUBLIC EMPLOYEE OR EMPLOYEE.] "Public employee" 
204.13  or "employee" means any person appointed or employed by a public 
204.14  employer except:  
204.15     (a) elected public officials; 
204.16     (b) election officers; 
204.17     (c) commissioned or enlisted personnel of the Minnesota 
204.18  National Guard; 
204.19     (d) emergency employees who are employed for emergency work 
204.20  caused by natural disaster; 
204.21     (e) part-time employees whose service does not exceed the 
204.22  lesser of 14 hours per week or 35 percent of the normal work 
204.23  week in the employee's appropriate unit; 
204.24     (f) employees whose positions are basically temporary or 
204.25  seasonal in character and:  (1) are not for more than 67 working 
204.26  days in any calendar year; or (2) are not for more than 100 
204.27  working days in any calendar year and the employees are under 
204.28  the age of 22, are full-time students enrolled in a nonprofit or 
204.29  public educational institution prior to being hired by the 
204.30  employer, and have indicated, either in an application for 
204.31  employment or by being enrolled at an educational institution 
204.32  for the next academic year or term, an intention to continue as 
204.33  students during or after their temporary employment; 
204.34     (g) employees providing services for not more than two 
204.35  consecutive quarters to the Board of Trustees of the Minnesota 
204.36  State Colleges and Universities under the terms of a 
205.1   professional or technical services contract as defined in 
205.2   section 16C.08, subdivision 1; 
205.3      (h) employees of charitable hospitals as defined by section 
205.4   179.35, subdivision 3; 
205.5      (i) full-time undergraduate students employed by the school 
205.6   which they attend under a work-study program or in connection 
205.7   with the receipt of financial aid, irrespective of number of 
205.8   hours of service per week; 
205.9      (j) an individual who is employed for less than 300 hours 
205.10  in a fiscal year as an instructor in an adult vocational 
205.11  education program; 
205.12     (k) an individual hired by the Board of Trustees of the 
205.13  Minnesota State Colleges and Universities to teach one course 
205.14  for three or fewer credits for one semester in a year; 
205.15     (l) with respect to court employees: 
205.16     (1) personal secretaries to judges; 
205.17     (2) law clerks; 
205.18     (3) managerial employees; 
205.19     (4) confidential employees; and 
205.20     (5) supervisory employees. 
205.21     The following individuals are public employees regardless 
205.22  of the exclusions of clauses (e) and (f):  
205.23     (i) an employee hired by a school district or the Board of 
205.24  Trustees of the Minnesota State Colleges and Universities except 
205.25  at the university established in section 136F.13 or for 
205.26  community services or community education instruction offered on 
205.27  a noncredit basis:  (A) to replace an absent teacher or faculty 
205.28  member who is a public employee, where the replacement employee 
205.29  is employed more than 30 working days as a replacement for that 
205.30  teacher or faculty member; or (B) to take a teaching position 
205.31  created due to increased enrollment, curriculum expansion, 
205.32  courses which are a part of the curriculum whether offered 
205.33  annually or not, or other appropriate reasons; and 
205.34     (ii) an employee hired for a position under clause (f)(1) 
205.35  if that same position has already been filled under clause 
205.36  (f)(1) in the same calendar year and the cumulative number of 
206.1   days worked in that same position by all employees exceeds 67 
206.2   calendar days in that year.  For the purpose of this paragraph, 
206.3   "same position" includes a substantially equivalent position if 
206.4   it is not the same position solely due to a change in the 
206.5   classification or title of the position; and 
206.6      (iii) an early childhood family education teacher employed 
206.7   by a school district. 
206.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
206.9      Sec. 19.  [PILOT PROGRAM FOR AT-RISK PREKINDERGARTEN 
206.10  CHILDREN.] 
206.11     Subdivision 1.  [ESTABLISHMENT; ELIGIBILITY; APPLICATION 
206.12  PROCESS.] (a) An early childhood education pilot program for 
206.13  at-risk children between the age of three and entering 
206.14  kindergarten is established to develop or expand developmentally 
206.15  appropriate and cost-effective programs for children who 
206.16  demonstrate two or more of the following characteristics: 
206.17     (1) are members of a household with an income less than 75 
206.18  percent of the statewide median family income; 
206.19     (2) live in divorced or separated households headed by a 
206.20  single parent; 
206.21     (3) have experienced residential instability, homelessness, 
206.22  or have parents who have been unemployed in the past 12 months; 
206.23     (4) have a parent who has not received a high school 
206.24  diploma or its equivalent; 
206.25     (5) speak a primary language other than English; 
206.26     (6) are determined by a qualified early childhood or other 
206.27  professional to require additional developmental screening, 
206.28  diagnosis, or treatment; 
206.29     (7) have been placed in three or more child care settings 
206.30  in the past 12 months or are determined by a qualified early 
206.31  childhood or other professional to have been a victim of 
206.32  bullying; 
206.33     (8) have a parent who has undergone treatment for chemical 
206.34  abuse or mental illness; or 
206.35     (9) other criteria determined by the commissioner in 
206.36  consultation with qualified early childhood or other 
207.1   professionals.  
207.2      (b) An applicant for a grant must be a qualified provider 
207.3   of care, education, and social services for young children and 
207.4   their families.  The applicant must demonstrate to the 
207.5   satisfaction of the commissioner of education that, at a 
207.6   minimum, the applicant: 
207.7      (1) has successfully operated an early childhood program 
207.8   for two or more calendar years that includes a parent 
207.9   involvement and education component; 
207.10     (2) addresses the physical and educational needs of young 
207.11  children and their families; and 
207.12     (3) measures its success in meeting the needs of the young 
207.13  children and families it serves. 
207.14     (c) To obtain a grant under this section, a qualified 
207.15  provider must submit an application to the commissioner of 
207.16  education in the form and manner the commissioner prescribes.  
207.17  The application must demonstrate the applicant's qualifications, 
207.18  consistent with paragraph (b), and describe how the applicant 
207.19  proposes to develop or expand a developmentally appropriate and 
207.20  cost-effective program for at-risk young children and their 
207.21  families.  The commissioner may require an applicant to submit 
207.22  additional information. 
207.23     Subd. 2.  [GRANT AWARDS.] The commissioner may award up to 
207.24  five grants to qualified providers throughout the state.  The 
207.25  amount of the grant shall be based on the number of children and 
207.26  families expected to participate in the provider's program.  
207.27  Grant recipients must use the grant award to provide a 
207.28  developmentally appropriate and cost-effective program for 
207.29  at-risk young children and their families. 
207.30     Subd. 3.  [EVALUATION.] The commissioner, after evaluating 
207.31  the programmatic and cost-effectiveness of the grant recipients' 
207.32  programs and identifying the elements of developmentally 
207.33  appropriate and cost-effective programs for at-risk young 
207.34  children and their families, must submit by January 15, 2008, a 
207.35  written report of the commissioner's findings to the early 
207.36  childhood committees in the legislature.  The commissioner must 
208.1   submit by January 15, 2014, a subsequent written report to the 
208.2   early childhood education committees of the legislature 
208.3   evaluating the long-term effect of children's participation in 
208.4   early childhood education programs under this section.  
208.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
208.6      Sec. 20.  [APPROPRIATIONS.] 
208.7      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
208.8   indicated in this section are appropriated from the general fund 
208.9   to the Department of Education for the fiscal years designated.  
208.10     Subd. 2.  [SCHOOL READINESS.] For revenue for school 
208.11  readiness programs under Minnesota Statutes, sections 124D.15 
208.12  and 124D.16: 
208.13       $9,020,000     .....     2006
208.14       $9,042,000     .....     2007
208.15     The 2006 appropriation includes $1,417,000 for 2005 and 
208.16  $7,603,000 for 2006. 
208.17     The 2007 appropriation includes $1,415,000 for 2006 and 
208.18  $7,627,000 for 2007.  
208.19     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
208.20  childhood family education aid under Minnesota Statutes, section 
208.21  124D.135: 
208.22       $17,652,000    .....     2006 
208.23       $22,133,000    .....     2007 
208.24     The 2006 appropriation includes $1,861,000 for 2005 and 
208.25  $15,791,000 for 2006.  
208.26     The 2007 appropriation includes $2,940,000 for 2006 and 
208.27  $19,193,000 for 2007.  
208.28     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
208.29  health and developmental screening aid under Minnesota Statutes, 
208.30  sections 121A.17 and 121A.19: 
208.31       $3,076,000     .....     2006 
208.32       $3,511,000     .....     2007 
208.33     The 2006 appropriation includes $417,000 for 2005 and 
208.34  $2,659,000 for 2006.  
208.35     The 2007 appropriation includes $494,000 for 2006 and 
208.36  $3,017,000 for 2007.  
209.1      Subd. 5.  [HEAD START PROGRAM.] For Head Start programs 
209.2   under Minnesota Statutes, section 119A.52: 
209.3        $17,100,000    .....     2006
209.4        $17,100,000    .....     2007
209.5      Subd. 6.  [MINNESOTA EARLY LEARNING FOUNDATION.] For the 
209.6   purposes of Minnesota Statutes, section 124D.175: 
209.7        $ 1,500,000     .....     2006 
209.8      The private nonprofit, section 501(c)(3) organization 
209.9   contracting with the commissioner may accept nonpublic funds for 
209.10  the purposes of Minnesota Statutes, section 124D.175.  
209.11     Of this appropriation, $500,000 is for a pilot program to 
209.12  develop or expand developmentally appropriate and cost-effective 
209.13  programs for at-risk young children and their families under 
209.14  section 19.  
209.15     This is a onetime appropriation.  
209.16     Sec. 21.  [REPEALER.] 
209.17     (a) Minnesota Statutes 2004, sections 124D.15, subdivisions 
209.18  2, 4, 6, 7, 8, 9, 11, and 13; and 124D.16, subdivision 4, are 
209.19  repealed. 
209.20     (b) Minnesota Statutes 2004, section 124D.16, subdivision 
209.21  1, is repealed effective July 1, 2006. 
209.22                             ARTICLE 8 
209.23                             PREVENTION 
209.24     Section 1.  Minnesota Statutes 2004, section 119A.46, 
209.25  subdivision 1, is amended to read: 
209.26     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
209.27  section 144.9501 and in this subdivision apply to this section. 
209.28     (b) "Eligible organization" means a lead contractor, city, 
209.29  board of health, community health department, community action 
209.30  agency as defined in section 119A.374, or community development 
209.31  corporation. 
209.32     (c) "Commissioner" means the commissioner of education 
209.33  health, or the commissioner of the Minnesota Housing Finance 
209.34  Agency as authorized by section 462A.05, subdivision 15c. 
209.35     Sec. 2.  Minnesota Statutes 2004, section 119A.46, 
209.36  subdivision 2, is amended to read: 
210.1      Subd. 2.  [GRANTS; ADMINISTRATION.] Within the limits of 
210.2   the available appropriation, the commissioner must develop a 
210.3   swab team services program which may make demonstration and 
210.4   training grants to eligible organizations to train workers to 
210.5   provide swab team services and swab team services for 
210.6   residential property.  Grants may be awarded to nonprofit 
210.7   organizations to provide technical assistance and training to 
210.8   ensure quality and consistency within the statewide program.  
210.9   Grants must be awarded to help ensure full-time employment to 
210.10  workers providing swab team services and must be awarded for a 
210.11  two-year period. 
210.12     Grants awarded under this section must be made in 
210.13  consultation with the commissioners of the Department of Health 
210.14  and commissioner of the Housing Finance Agency, and 
210.15  representatives of neighborhood groups from areas at high risk 
210.16  for toxic lead exposure, a labor organization, the lead 
210.17  coalition, community action agencies, and the legal aid 
210.18  society.  The consulting team must review grant applications and 
210.19  recommend awards to eligible organizations that meet 
210.20  requirements for receiving a grant under this section. 
210.21     Sec. 3.  Minnesota Statutes 2004, section 119A.46, 
210.22  subdivision 3, is amended to read: 
210.23     Subd. 3.  [APPLICANTS.] (a) Interested eligible 
210.24  organizations may apply to the commissioner for grants under 
210.25  this section.  Two or more eligible organizations may jointly 
210.26  apply for a grant.  Priority shall be given to community action 
210.27  agencies in greater Minnesota and to either community action 
210.28  agencies or neighborhood based nonprofit organizations in cities 
210.29  of the first class.  Of the total annual appropriation, 12.5 
210.30  percent may be used for administrative purposes.  The 
210.31  commissioner may deviate from this percentage if a grantee can 
210.32  justify the need for a larger administrative allowance.  Of this 
210.33  amount, up to five percent may be used by the commissioner for 
210.34  state administrative purposes.  Applications must provide 
210.35  information requested by the commissioner, including at least 
210.36  the information required to assess the factors listed in 
211.1   paragraph (d).  
211.2      (b) The commissioner must coordinate with the commissioner 
211.3   of health who must consult with boards of health to provide swab 
211.4   team services for purposes of secondary prevention.  The 
211.5   priority for swab teams created by grants to eligible 
211.6   organizations under this section must be work assigned by the 
211.7   commissioner of health, or by a board of health if so designated 
211.8   by the commissioner of health, to provide secondary prevention 
211.9   swab team services to fulfill the requirements of section 
211.10  144.9504, subdivision 6, in response to a lead order.  Swab 
211.11  teams assigned work under this section by the commissioner, that 
211.12  are not engaged daily in fulfilling the requirements of section 
211.13  144.9504, subdivision 6, must deliver swab team services in 
211.14  response to elevated blood lead levels as defined in section 
211.15  144.9501, subdivision 9, where lead orders were not issued, and 
211.16  for purposes of primary prevention in census tracts known to be 
211.17  in areas at high risk for toxic lead exposure as described in 
211.18  section 144.9503, subdivision 2. 
211.19     (c) Any additional money must be used for grants to 
211.20  establish swab teams for primary prevention under section 
211.21  144.9503, in census tracts in areas at high risk for toxic lead 
211.22  exposure as determined under section 144.9503, subdivision 2.  
211.23     (d) In evaluating grant applications, the commissioner must 
211.24  consider the following criteria: 
211.25     (1) the use of lead contractors and lead workers for 
211.26  residential swab team services; 
211.27     (2) the participation of neighborhood groups and 
211.28  individuals, as swab team workers, in areas at high risk for 
211.29  toxic lead exposure; 
211.30     (3) plans for the provision of swab team services for 
211.31  primary and secondary prevention as required under subdivision 
211.32  4; 
211.33     (4) plans for supervision, training, career development, 
211.34  and postprogram placement of swab team members; 
211.35     (5) plans for resident and property owner education on lead 
211.36  safety; 
212.1      (6) plans for distributing cleaning supplies to area 
212.2   residents and educating residents and property owners on 
212.3   cleaning techniques; 
212.4      (7) sources of other funding and cost estimates for 
212.5   training, lead inspections, swab team services, equipment, 
212.6   monitoring, testing, and administration; 
212.7      (8) measures of program effectiveness; 
212.8      (9) coordination of program activities with other federal, 
212.9   state, and local public health, job training, apprenticeship, 
212.10  and housing renovation programs including programs under 
212.11  sections 116L.86 to 116L.881; and 
212.12     (10) prior experience in providing swab team services. 
212.13     Sec. 4.  Minnesota Statutes 2004, section 119A.46, 
212.14  subdivision 8, is amended to read: 
212.15     Subd. 8.  [TESTING AND EVALUATION.] (a) Testing of the 
212.16  environment is not necessary by swab teams whose work is 
212.17  assigned by the commissioner of health or a designated board of 
212.18  health under section 144.9504.  The commissioner of health or 
212.19  designated board of health must share the analytical testing 
212.20  data collected on each residence for purposes of secondary 
212.21  prevention under section 144.9504 with the swab team workers in 
212.22  order to provide constructive feedback on their work and to the 
212.23  commissioner for the purposes set forth in paragraph (c). 
212.24     (b) For purposes of primary prevention evaluation, the 
212.25  following samples must be collected:  pretesting and posttesting 
212.26  of one noncarpeted floor dust lead sample and a notation of the 
212.27  extent and location of bare soil and of deteriorated lead-based 
212.28  paint.  The analytical testing data collected on each residence 
212.29  for purposes of primary prevention under section 144.9503 must 
212.30  be shared with the swab team workers in order to provide 
212.31  constructive feedback on their work and to the commissioner for 
212.32  the purposes set forth in paragraph (c). 
212.33     (c) The commissioner of health must establish a program in 
212.34  cooperation with the commissioner to collect appropriate data as 
212.35  required under paragraphs (a) and (b), in order to conduct an 
212.36  ongoing evaluation of swab team services for primary and 
213.1   secondary prevention.  Within the limits of available 
213.2   appropriations, the commissioner of health must conduct or 
213.3   contract with the commissioner, on up to 1,000 residences which 
213.4   have received primary or secondary prevention swab team 
213.5   services, a postremediation evaluation, on at least a quarterly 
213.6   basis for a period of at least two years for each residence.  
213.7   The evaluation must note the condition of the paint within the 
213.8   residence, the extent of bare soil on the grounds, and collect 
213.9   and analyze one noncarpeted floor dust lead sample.  The data 
213.10  collected must be evaluated to determine the efficacy of 
213.11  providing swab team services as a method of reducing lead 
213.12  exposure in young children.  In evaluating this data, the 
213.13  commissioner of health must consider city size, community 
213.14  location, historic traffic flow, soil lead level of the property 
213.15  by area or census tract, distance to industrial point sources 
213.16  that emit lead, season of the year, age of the housing, age and 
213.17  number of children living at the residence, the presence of pets 
213.18  that move in and out of the residence, and other relevant 
213.19  factors as the commissioner of health may determine. 
213.20     Sec. 5.  Minnesota Statutes 2004, section 124D.20, 
213.21  subdivision 3, is amended to read: 
213.22     Subd. 3.  [GENERAL COMMUNITY EDUCATION REVENUE.] The 
213.23  general community education revenue for a district equals $5.95 
213.24  for fiscal year 2003 and 2004 and $5.23 for fiscal year years 
213.25  2005 and 2006 and $6.00 for fiscal year 2007 and later, times 
213.26  the greater of 1,335 or the population of the district.  The 
213.27  population of the district is determined according to section 
213.28  275.14.  
213.29     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
213.30  fiscal year 2007.  
213.31     Sec. 6.  [APPROPRIATION.] 
213.32     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
213.33  indicated in this section are appropriated from the general fund 
213.34  to the Department of Education for the fiscal years designated. 
213.35     Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
213.36  education aid under Minnesota Statutes, section 124D.20: 
214.1        $1,918,000     .....     2006 
214.2        $1,837,000     .....     2007 
214.3      The 2006 appropriation includes $390,000 for 2005 and 
214.4   $1,528,000 for 2006.  
214.5      The 2007 appropriation includes $284,000 for 2006 and 
214.6   $1,553,000 for 2007. 
214.7      Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
214.8   adults with disabilities programs under Minnesota Statutes, 
214.9   section 124D.56: 
214.10       $  710,000     .....     2006 
214.11       $  710,000     .....     2007 
214.12     The 2006 appropriation includes $111,000 for 2005 and 
214.13  $599,000 for 2006.  
214.14     The 2007 appropriation includes $111,000 for 2006 and 
214.15  $599,000 for 2007. 
214.16     Subd. 4.  [HEARING-IMPAIRED ADULTS.] For programs for 
214.17  hearing-impaired adults under Minnesota Statutes, section 
214.18  124D.57: 
214.19       $   70,000     .....     2006
214.20       $   70,000     .....     2007
214.21     Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day aid 
214.22  under Minnesota Statutes, section 124D.22: 
214.23       $   17,000     .....     2006 
214.24       $    7,000     .....     2007
214.25     The 2006 appropriation includes $4,000 for 2005 and $13,000 
214.26  for 2006. 
214.27     The 2007 appropriation includes $2,000 for 2006 and $5,000 
214.28  for 2007. 
214.29                             ARTICLE 9 
214.30               SELF-SUFFICIENCY AND LIFELONG LEARNING 
214.31     Section 1.  Minnesota Statutes 2004, section 124D.531, 
214.32  subdivision 1, is amended to read: 
214.33     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
214.34  (a) The state total adult basic education aid for fiscal year 
214.35  2004 equals $34,388,000.  The state total adult basic education 
214.36  aid for fiscal year 2005 and later is $36,509,000.  The state 
215.1   total adult basic education aid for fiscal year 2006 and later 
215.2   is $36,518,000 plus any amount that is not paid for during the 
215.3   previous fiscal year, as a result of adjustments under 
215.4   subdivision 4, paragraph (a), or section 124D.52, subdivision 
215.5   3.  Beginning in fiscal year 2002, two percent of the state 
215.6   total adult basic education aid must be set aside for adult 
215.7   basic education supplemental service grants under section 
215.8   124D.522.  
215.9      (b) The state total adult basic education aid, excluding 
215.10  basic population aid, equals the difference between the amount 
215.11  computed in paragraph (a), and the state total basic population 
215.12  aid under subdivision 2. 
215.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
215.14  following final enactment and applies to revenue distributions 
215.15  for fiscal year 2006. 
215.16     Sec. 2.  Minnesota Statutes 2004, section 124D.531, 
215.17  subdivision 4, is amended to read: 
215.18     Subd. 4.  [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 
215.19  Notwithstanding subdivisions 2 and 3, the total adult basic 
215.20  education aid for a program per prior year contact hour must not 
215.21  exceed $21 per prior year contact hour computed under 
215.22  subdivision 3, clause (2). 
215.23     (b) For fiscal year 2004, the aid for a program under 
215.24  subdivision 3, clause (2), adjusted for changes in program 
215.25  membership, must not exceed the aid for that program under 
215.26  subdivision 3, clause (2), for fiscal year 2003 by more than the 
215.27  greater of eight percent or $10,000. 
215.28     (c) For fiscal year 2005, the aid for a program under 
215.29  subdivision 3, clause (2), adjusted for changes in program 
215.30  membership, must not exceed the sum of the aid for that program 
215.31  under subdivision 3, clause (2), and Laws 2003, First Special 
215.32  Session chapter 9, article 9, section 8, paragraph (a), for the 
215.33  preceding fiscal year by more than the greater of eight percent 
215.34  or $10,000.  
215.35     (d) For fiscal year 2006 and later, the aid for a program 
215.36  under subdivision 3, clause (2), adjusted for changes in program 
216.1   membership, must not exceed the aid for that program under 
216.2   subdivision 3, clause (2), for the first preceding fiscal year 
216.3   by more than the greater of eight percent or $10,000. 
216.4      (e) Adult basic education aid is payable to a program for 
216.5   unreimbursed costs occurring in the program year as defined in 
216.6   section 124D.52, subdivision 3. 
216.7      (f) Any adult basic education aid that is not paid to a 
216.8   program because of the program aid limitation under paragraph 
216.9   (a) must be added to the state total adult basic education aid 
216.10  for the next fiscal year under subdivision 1.  Any adult basic 
216.11  education aid that is not paid to a program because of the 
216.12  program aid limitations under paragraph (b), (c), or (d), must 
216.13  be reallocated among programs by adjusting the rate per contact 
216.14  hour under subdivision 3, clause (2). 
216.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
216.16  following final enactment and applies to revenue distributions 
216.17  for fiscal year 2006. 
216.18     Sec. 3.  [GRANTS FOR INTENSIVE ENGLISH INSTRUCTION FOR NEW 
216.19  ADULT REFUGEES.] 
216.20     The commissioner of education shall establish a 
216.21  reimbursement grant program to fund intensive English as a 
216.22  second language (ESL) programs for adult refugees.  Intensive 
216.23  ESL programming must provide intensive instruction for adult 
216.24  refugees who are making inadequate literacy progress as measured 
216.25  by a standard assessment test.  The intensive instruction must 
216.26  be focused on participants gaining sufficient literacy to 
216.27  achieve self-sufficiency through employment. 
216.28     Organizations eligible for grants under this section 
216.29  include adult basic education programs, school districts, 
216.30  postsecondary institutions, and nonprofit or community-based 
216.31  organizations or other private organizations with experience in 
216.32  providing English language instruction to non-English speaking 
216.33  immigrants and refugees.  Grant applications must contain 
216.34  information required by the commissioner in the form prescribed 
216.35  by the commissioner.  At a minimum, the application must 
216.36  document experience in literacy programs serving immigrants and 
217.1   refugees, describe fiscal accounting systems and reporting 
217.2   capacity, ensure that administrative expenses are limited to 
217.3   five percent of grant funds, and provide a description of the 
217.4   proposed instructional services and training plans.  Funds must 
217.5   be paid to programs on a reimbursement basis.  The grant program 
217.6   expires on June 30, 2007. 
217.7      Sec. 4.  [REVISOR'S INSTRUCTION.] 
217.8      In the next edition of Minnesota Statutes, the revisor of 
217.9   statutes shall renumber Minnesota Statutes, section 119A.46, as 
217.10  section 144.9512 and make necessary cross-reference changes. 
217.11     Sec. 5.  [APPROPRIATIONS.] 
217.12     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
217.13  indicated in this section are appropriated from the general fund 
217.14  to the Department of Education for the fiscal years designated. 
217.15     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
217.16  education aid under Minnesota Statutes:  
217.17       $36,518,000   .....      2006
217.18       $36,540,000   .....      2007
217.19     The 2006 appropriation includes $5,707,000 for 2005 and 
217.20  $30,811,000 for 2006.  
217.21     The 2007 appropriation includes $5,737,000 for 2006 and 
217.22  $30,803,000 for 2007.  
217.23     Subd. 3.  [GED TESTS.] For payment of 60 percent of the 
217.24  costs of GED tests under Laws 1993, chapter 224, article 4, 
217.25  section 44, subdivision 10: 
217.26       $  125,000     .....     2006
217.27       $  125,000     .....     2007
217.28     Subd. 4.  [INTENSIVE ENGLISH INSTRUCTION.] For grants for 
217.29  intensive English instruction for adult refugees under section 3:
217.30       $1,000,000     .....     2006 
217.31       $1,000,000     .....     2007
217.32     Subd. 5.  [LEAD HAZARD REDUCTION.] For lead hazard 
217.33  reduction under Minnesota Statutes, section 119A.46: 
217.34       $  100,000     .....     2006 
217.35       $  100,000     .....     2007
217.36     Any balance in the first year does not cancel but is 
218.1   available in the second year.  The commissioner of education may 
218.2   transfer this appropriation to the commissioner of health. 
218.3                              ARTICLE 10 
218.4                            STATE AGENCIES 
218.5      Section 1.  Minnesota Statutes 2004, section 122A.09, 
218.6   subdivision 4, is amended to read: 
218.7      Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
218.8   rules to license public school teachers and interns subject to 
218.9   chapter 14. 
218.10     (b) The board must adopt rules requiring a person to 
218.11  successfully complete a skills examination in reading, writing, 
218.12  and mathematics as a requirement for initial teacher licensure.  
218.13  Such rules must require college and universities offering a 
218.14  board-approved teacher preparation program to provide remedial 
218.15  assistance to persons who did not achieve a qualifying score on 
218.16  the skills examination, including those for whom English is a 
218.17  second language. 
218.18     (c) The board must adopt rules to approve teacher 
218.19  preparation programs.  The board, upon the request of a 
218.20  postsecondary student preparing for teacher licensure or a 
218.21  licensed graduate of a teacher preparation program, shall assist 
218.22  in resolving a dispute between the person and a postsecondary 
218.23  institution providing a teacher preparation program when the 
218.24  dispute involves an institution's recommendation for licensure 
218.25  affecting the person or the person's credentials.  At the 
218.26  board's discretion, assistance may include the application of 
218.27  chapter 14. 
218.28     (d) The board must provide the leadership and shall adopt 
218.29  rules for the redesign of teacher education programs to 
218.30  implement a research based, results-oriented curriculum that 
218.31  focuses on the skills teachers need in order to be effective.  
218.32  The board shall implement new systems of teacher preparation 
218.33  program evaluation to assure program effectiveness based on 
218.34  proficiency of graduates in demonstrating attainment of program 
218.35  outcomes. 
218.36     (e) The board must adopt rules requiring successful 
219.1   completion of an examination of general pedagogical knowledge 
219.2   and examinations of licensure-specific teaching skills.  The 
219.3   rules shall be effective on the dates determined by the board 
219.4   but not later than September 1, 2001.  
219.5      (f) The board must adopt rules requiring teacher educators 
219.6   to work directly with elementary or secondary school teachers in 
219.7   elementary or secondary schools to obtain periodic exposure to 
219.8   the elementary or secondary teaching environment. 
219.9      (g) The board must grant licenses to interns and to 
219.10  candidates for initial licenses. 
219.11     (h) The board must design and implement an assessment 
219.12  system which requires a candidate for an initial license and 
219.13  first continuing license to demonstrate the abilities necessary 
219.14  to perform selected, representative teaching tasks at 
219.15  appropriate levels. 
219.16     (i) The board must receive recommendations from local 
219.17  committees as established by the board for the renewal of 
219.18  teaching licenses. 
219.19     (j) The board must grant life licenses to those who qualify 
219.20  according to requirements established by the board, and suspend 
219.21  or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
219.22  board must not establish any expiration date for application for 
219.23  life licenses.  
219.24     (k) The board must adopt rules that require all licensed 
219.25  teachers who are renewing their continuing license to include in 
219.26  their renewal requirements further preparation in the areas of 
219.27  using positive behavior interventions and in accommodating, 
219.28  modifying, and adapting curricula, materials, and strategies to 
219.29  appropriately meet the needs of individual students and ensure 
219.30  adequate progress toward the state's graduation rule.  
219.31     (l) In adopting rules to license public school teachers who 
219.32  provide health-related services for disabled children, the board 
219.33  shall adopt rules consistent with license or registration 
219.34  requirements of the commissioner of health and the 
219.35  health-related boards who license personnel who perform similar 
219.36  services outside of the school. 
220.1      (m) The board must adopt rules that require all licensed 
220.2   teachers who are renewing their continuing license to include in 
220.3   their renewal requirements further reading preparation, 
220.4   consistent with section 122A.06, subdivision 4.  The rules do 
220.5   not take effect until they are approved by law.  Teachers who do 
220.6   not provide direct instruction including, at least, counselors, 
220.7   school psychologists, school nurses, school social workers, 
220.8   audiovisual directors and coordinators, and recreation personnel 
220.9   are exempt from this section. 
220.10     (n) The board must adopt rules that require all licensed 
220.11  teachers who are renewing their continuing license to include in 
220.12  their renewal requirements further preparation in understanding 
220.13  the key warning signs of early-onset mental illness in children 
220.14  and adolescents. 
220.15     (o) The board, in consultation with the department, 
220.16  representatives of innovative schools and programs as determined 
220.17  by the board, and representatives of charter schools, 
220.18  alternative schools, small schools, and rural schools, must 
220.19  adopt rules to create an interdisciplinary teaching license. 
220.20     Sec. 2.  Minnesota Statutes 2004, section 122A.09, 
220.21  subdivision 10, is amended to read: 
220.22     Subd. 10.  [VARIANCES.] (a) Notwithstanding subdivision 9 
220.23  and section 14.05, subdivision 4, the Board of Teaching may 
220.24  grant a variance to its rules upon application by a school 
220.25  district for purposes of implementing experimental programs in 
220.26  learning or management. 
220.27     (b) To enable a school district to meet the needs of 
220.28  students enrolled in an alternative education program and to 
220.29  enable licensed teachers instructing those students to satisfy 
220.30  content area licensure requirements, the Board of Teaching 
220.31  annually may permit a licensed teacher teaching in an 
220.32  alternative education program to instruct students in a content 
220.33  area for which the teacher is not licensed, consistent with 
220.34  paragraph (a). 
220.35     (c) A special education license variance issued by the 
220.36  Board of Teaching for a primary employer's low-incidence region 
221.1   shall be valid in all low-incidence regions. 
221.2      Sec. 3.  [122A.245] [TEACHER TRAINING PROGRAM FOR QUALIFIED 
221.3   PROFESSIONALS.] 
221.4      Subdivision 1.  [SCOPE AND REQUIREMENTS.] (a) As an 
221.5   alternative to postsecondary teacher preparation programs, a 
221.6   teacher training program is established for qualified 
221.7   professionals to acquire an entrance license.  Program 
221.8   providers, approved by the Board of Teaching under subdivision 
221.9   3, may offer the program in the instructional fields of science, 
221.10  mathematics, world languages, English as a second language, and 
221.11  special education. 
221.12     (b) To participate in the teacher training program, the 
221.13  teacher applicant must: 
221.14     (1) have, at a minimum, a bachelor's degree from an 
221.15  accredited four-year postsecondary institution; 
221.16     (2) have an undergraduate major or postbaccalaureate degree 
221.17  in the subject to be taught or in an equivalent or related 
221.18  subject area in which the applicant is seeking licensure; 
221.19     (3) pass a skills examination in reading, writing, and 
221.20  mathematics required under section 122A.18; 
221.21     (4) pass the Praxis II subject assessment for each subject 
221.22  area to be taught; 
221.23     (5) have a cumulative grade point average of 2.75 or higher 
221.24  on a 4.0 scale for a bachelor's degree; 
221.25     (6) show employment related to the subject to be taught; 
221.26  and 
221.27     (7) show a district offer for employment as a teacher 
221.28  contingent on participating in an approved program described in 
221.29  subdivision 2. 
221.30     Subd. 2.  [PROGRAM.] A teacher training program under this 
221.31  section is one year in duration and must include: 
221.32     (1) a nine-credit summer or preinduction preparation 
221.33  program that includes classroom management techniques and 
221.34  on-site classroom observation that are completed before the 
221.35  candidate is employed in the classroom; 
221.36     (2) 200 clock hours of instruction in standards of 
222.1   effective practice and essential skills that include curriculum, 
222.2   instructional strategies, and classroom management presented 
222.3   after school or on Saturdays throughout the year leading to a 
222.4   teaching license and up to 15 graduate credits toward a master's 
222.5   degree in education; 
222.6      (3) on-the-job mentoring, supervision, and evaluation 
222.7   arranged by the employing district that includes mentoring 
222.8   provided by an experienced teacher licensed in the subject 
222.9   taught by the applicant, and three evaluations by an evaluation 
222.10  team composed of the mentor, the principal, and a training 
222.11  program member that include at least three classroom 
222.12  observations where the third evaluation contains the team's 
222.13  recommendation for licensure and where a written report of each 
222.14  evaluation is prepared; and 
222.15     (4) a one-week intensive workshop that includes analysis 
222.16  and reflection of the first year of teaching after completing 
222.17  the school year, which may be counted as part of 200 clock hours 
222.18  required in clause (2). 
222.19     Subd. 3.  [PROGRAM APPROVAL.] An interested Minnesota 
222.20  public or private postsecondary institution must submit program 
222.21  proposals to the Board of Teaching for approval.  
222.22     Notwithstanding any law to the contrary, the Board of 
222.23  Teaching must develop criteria for approving teacher training 
222.24  programs under this section after considering the 
222.25  recommendations of an advisory group appointed by the Board of 
222.26  Teaching composed of, at a minimum, the commissioner of 
222.27  education or designee, and representatives of school 
222.28  superintendents, principals, teachers, and postsecondary 
222.29  institutions, including those offering degrees in teaching 
222.30  preparation.  
222.31     Subd. 4.  [ELIGIBILITY LICENSE.] Notwithstanding any law to 
222.32  the contrary, the Board of Teaching must issue to an applicant 
222.33  who successfully meets the criteria under subdivision 1, 
222.34  paragraph (b), a one-year eligibility license to teach at the 
222.35  employing district under subdivision 1, paragraph (b), clause 
222.36  (7).  During the one-year eligibility period, the employing 
223.1   district must assign a mentor under subdivision 2, clause (3).  
223.2   The applicant teacher and teacher mentor must meet at least 
223.3   weekly throughout the school year on classroom and instructional 
223.4   issues. 
223.5      The hiring district may deduct from the participant's 
223.6   salary the cost of providing the mentor for the participant 
223.7   during the training year. 
223.8      Subd. 5.  [STANDARD ENTRANCE LICENSE.] Notwithstanding any 
223.9   law to the contrary, the Board of Teaching must issue a standard 
223.10  entrance license to a training program licensee who successfully 
223.11  completes the program under subdivision 2, successfully teaches 
223.12  in a classroom for one complete school year, successfully passes 
223.13  the Praxis II principles of learning and teaching, and receives 
223.14  a positive recommendation from the applicant's evaluation team. 
223.15     Subd. 6.  [QUALIFIED TEACHER.] A person with a valid 
223.16  eligibility license under subdivision 5 is a qualified teacher 
223.17  under section 122A.16. 
223.18     Sec. 4.  Minnesota Statutes 2004, section 122A.40, 
223.19  subdivision 5, is amended to read: 
223.20     Subd. 5.  [PROBATIONARY PERIOD.] (a) The first three 
223.21  consecutive years of a teacher's first teaching experience in 
223.22  Minnesota in a single district is deemed to be a probationary 
223.23  period of employment, and after completion thereof, the 
223.24  probationary period in each district in which the teacher is 
223.25  thereafter employed shall be one year.  The school board must 
223.26  adopt a plan for written evaluation of teachers during the 
223.27  probationary period.  Evaluation must occur at least three times 
223.28  each year for a teacher performing services on 120 or more 
223.29  school days, at least two times each year for a teacher 
223.30  performing services on 60 to 119 school days, and at least one 
223.31  time each year for a teacher performing services on fewer than 
223.32  60 school days.  Days devoted to parent-teacher conferences, 
223.33  teachers' workshops, and other staff development opportunities 
223.34  and days on which a teacher is absent from school must not be 
223.35  included in determining the number of school days on which a 
223.36  teacher performs services.  Except as otherwise provided in 
224.1   paragraph (b), during the probationary period any annual 
224.2   contract with any teacher may or may not be renewed as the 
224.3   school board shall see fit.  However, the board must give any 
224.4   such teacher whose contract it declines to renew for the 
224.5   following school year written notice to that effect before July 
224.6   1.  If the teacher requests reasons for any nonrenewal of a 
224.7   teaching contract, the board must give the teacher its reason in 
224.8   writing, including a statement that appropriate supervision was 
224.9   furnished describing the nature and the extent of such 
224.10  supervision furnished the teacher during the employment by the 
224.11  board, within ten days after receiving such request.  The school 
224.12  board may, after a hearing held upon due notice, discharge a 
224.13  teacher during the probationary period for cause, effective 
224.14  immediately, under section 122A.44.  
224.15     (b) A board must discharge a probationary teacher, 
224.16  effective immediately, upon receipt of notice under section 
224.17  122A.20, subdivision 1, paragraph (b), that the teacher's 
224.18  license has been revoked due to a conviction for child abuse or 
224.19  sexual abuse. 
224.20     (c) A probationary teacher must complete at least 60 days 
224.21  of teaching service each year during the probationary period.  
224.22  Days devoted to parent-teacher conferences, teachers' workshops, 
224.23  and other staff development opportunities and days on which a 
224.24  teacher is absent from school do not count as days of teaching 
224.25  service under this paragraph. 
224.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
224.27     Sec. 5.  Minnesota Statutes 2004, section 122A.41, 
224.28  subdivision 2, is amended to read: 
224.29     Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 
224.30  All teachers in the public schools in cities of the first class 
224.31  during the first three years of consecutive employment shall be 
224.32  deemed to be in a probationary period of employment during which 
224.33  period any annual contract with any teacher may, or may not, be 
224.34  renewed as the school board, after consulting with the peer 
224.35  review committee charged with evaluating the probationary 
224.36  teachers under subdivision 3, shall see fit.  The school site 
225.1   management team or the school board if there is no school site 
225.2   management team, shall adopt a plan for a written evaluation of 
225.3   teachers during the probationary period according to subdivision 
225.4   3.  Evaluation by the peer review committee charged with 
225.5   evaluating probationary teachers under subdivision 3 shall occur 
225.6   at least three times each year for a teacher performing services 
225.7   on 120 or more school days, at least two times each year for a 
225.8   teacher performing services on 60 to 119 school days, and at 
225.9   least one time each year for a teacher performing services on 
225.10  fewer than 60 school days.  Days devoted to parent-teacher 
225.11  conferences, teachers' workshops, and other staff development 
225.12  opportunities and days on which a teacher is absent from school 
225.13  shall not be included in determining the number of school days 
225.14  on which a teacher performs services.  The school board may, 
225.15  during such probationary period, discharge or demote a teacher 
225.16  for any of the causes as specified in this code.  A written 
225.17  statement of the cause of such discharge or demotion shall be 
225.18  given to the teacher by the school board at least 30 days before 
225.19  such removal or demotion shall become effective, and the teacher 
225.20  so notified shall have no right of appeal therefrom. 
225.21     (b) A probationary teacher must complete at least 60 days 
225.22  of teaching service each year during the probationary period.  
225.23  Days devoted to parent-teacher conferences, teachers' workshops, 
225.24  and other staff development opportunities and days on which a 
225.25  teacher is absent from school do not count as days of teaching 
225.26  service under this paragraph. 
225.27     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2005. 
225.28     Sec. 6.  [REPORT.] 
225.29     The Board of Teaching, in consultation with approved 
225.30  alternative teacher training program providers and the 
225.31  Department of Education, must evaluate the efficacy of the 
225.32  alternative teacher training program under Minnesota Statutes, 
225.33  section 122A.245, through the 2013-2014 school year and by 
225.34  February 15, 2015, submit a written report to the kindergarten 
225.35  through grade 12 education policy committees of the legislature 
225.36  that includes, among other content, recommendations about 
226.1   whether to extend or expand the alternative teacher training 
226.2   program.  
226.3      Sec. 7.  [LICENSED STUDENT SUPPORT SERVICES.] 
226.4      Subdivision 1.  [ACCESS TO SERVICES.] School districts and 
226.5   the Department of Education shall work to provide for students' 
226.6   educational achievement, to provide for student safety, and to 
226.7   enhance student physical, emotional, and social well-being by 
226.8   providing access to licensed student support services, such as 
226.9   licensed school nurses, licensed school counselors, licensed 
226.10  school social workers, and licensed school psychologists. 
226.11     Subd. 2.  [FUNDING.] Districts and the department shall 
226.12  explore opportunities for obtaining additional funds to improve 
226.13  students' access to needed licensed student support services 
226.14  including, but not limited to, medical assistance 
226.15  reimbursements, local collaborative time study funds, federal 
226.16  funds, public health funds, and specifically designated funds. 
226.17     Subd. 3.  [IMPROVING ACCESS.] Districts and the department 
226.18  must consider nationally recommended licensed staff-to-student 
226.19  ratios, work loads, and best practices when working to improve 
226.20  student access to needed licensed student support services. 
226.21     Sec. 8.  [STATEWIDE STUDENT INFORMATION AND REPORTING 
226.22  SYSTEM.] 
226.23     Subdivision 1.  [WORKING GROUP CONVENED.] (a) The 
226.24  commissioner of education must convene a working group composed 
226.25  of:  
226.26     (1) representatives from school districts, charter schools, 
226.27  and area learning centers of diverse size and location chosen by 
226.28  the commissioner; 
226.29     (2) officials from the Department of Administration 
226.30  Materials Management Division; and 
226.31     (3) at least three citizens with a demonstrated expertise 
226.32  in Web-based student information systems. 
226.33  The working group must develop a plan to improve the quality and 
226.34  decrease the cost of Minnesota's student information systems. 
226.35     (b) When developing its plan under paragraph (a), the group 
226.36  at least must determine whether the student information system: 
227.1      (1) best operates as a single integrated management system 
227.2   or a system with a specified number of vendors that seamlessly 
227.3   transfer student data between school districts; 
227.4      (2) includes a software license, technical support, and 
227.5   also hardware on which the software runs; 
227.6      (3) is run in each school district or at a central data 
227.7   center; and 
227.8      (4) can be run by private sector companies having access to 
227.9   students' educational records.  
227.10     Subd. 2.  [REQUEST FOR PROPOSALS.] The working group, 
227.11  consistent with its determinations in subdivision 1, paragraph 
227.12  (b), shall develop the framework for a request for proposal or 
227.13  "RFP" for the student information and reporting system.  The RFP 
227.14  must require a vendor to implement a system that: 
227.15     (1) meets all of the data collection and reporting 
227.16  requirements of the Minnesota Automated Reporting Student 
227.17  System; 
227.18     (2) enhances state and federal student data collection; 
227.19     (3) facilitates value-added assessment systems; 
227.20     (4) ensures that the system has secure Web-based 
227.21  capabilities for entering and editing data; and 
227.22     (5) provides robust data management tools including 
227.23  reporting features. 
227.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
227.25  following final enactment. 
227.26     Sec. 9.  [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 
227.27     Subdivision 1.  [DEPARTMENT OF EDUCATION.] Unless otherwise 
227.28  indicated, the sums indicated in this section are appropriated 
227.29  from the general fund to the Department of Education for the 
227.30  fiscal years designated. 
227.31     Subd. 2.  [DEPARTMENT.] (a) For the Department of Education:
227.32       $22,057,000    .....     2006 
227.33       $23,887,000    .....     2007 
227.34     Any balance in the first year does not cancel but is 
227.35  available in the second year. 
227.36     (b) $260,000 each year is for the Minnesota Children's 
228.1   Museum. 
228.2      (c) $41,000 each year is for the Minnesota Academy of 
228.3   Science. 
228.4      (d) $605,000 each year is for the Board of Teaching.  In 
228.5   addition, the commissioner must provide necessary resources to 
228.6   complete rulemaking under Minnesota Statutes, section 122A.09, 
228.7   subdivision 4.  
228.8      (e) $160,000 each year is for the Board of School 
228.9   Administrators.  
228.10     (f) $10,000 in fiscal year 2006 and $15,000 in fiscal year 
228.11  2007 are for administration of single purpose charter school 
228.12  sponsors.  
228.13     (g) $500,000 in fiscal year 2007 is for alternative teacher 
228.14  licensure programs. 
228.15     (h) $300,000 in fiscal year 2006 and $1,600,000 in fiscal 
228.16  year 2007 are for value-added index assessment model. 
228.17     (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year 
228.18  2007 are for the development and distribution to school 
228.19  districts of materials addressing the dangers of methamphetamine.
228.20     (j) The expenditures of federal grants and aids as shown in 
228.21  the biennial budget document and its supplements are approved 
228.22  and appropriated and shall be spent as indicated. 
228.23     Sec. 10.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
228.24     The sums indicated in this section are appropriated from 
228.25  the general fund to the Minnesota State Academies for the Deaf 
228.26  and the Blind for the fiscal years designated:  
228.27       $11,078,000    .....     2006 
228.28       $11,153,000    .....     2007 
228.29     Any balance in the first year does not cancel but is 
228.30  available in the second year. 
228.31     Sec. 11.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
228.32  EDUCATION.] 
228.33     The sums indicated in this section are appropriated from 
228.34  the general fund to the Perpich Center for Arts Education for 
228.35  the fiscal years designated: 
228.36       $6,255,000     .....     2006 
229.1        $6,255,000     .....     2007 
229.2      Any balance in the first year does not cancel but is 
229.3   available in the second year. 
229.4      Sec. 12.  [REPEALER.] 
229.5      Minnesota Statutes 2004, section 122A.24, is repealed. 
229.6                              ARTICLE 11 
229.7                        FORECAST DEFICIENCIES 
229.8                        A.  GENERAL EDUCATION
229.9      Section 1.  Laws 2003, First Special Session chapter 9, 
229.10  article 1, section 53, subdivision 2, as amended by Laws 2004, 
229.11  chapter 272, article 1, section 1, is amended to read: 
229.12     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
229.13  aid under Minnesota Statutes, section 126C.13, subdivision 4: 
229.14      $4,726,466,000    .....     2004
229.15      $5,026,983,000 $5,281,781,000     .....     2005
229.16     The 2004 appropriation includes $860,552,000 for 2003 and 
229.17  $3,865,914,000 for 2004. 
229.18     The 2005 appropriation includes 
229.19  $1,009,822,000 $1,009,526,000 for 2004 
229.20  and $4,017,161,000 $4,272,255,000 for 2005.  
229.21     Sec. 2.  Laws 2003, First Special Session chapter 9, 
229.22  article 1, section 53, subdivision 3, as amended by Laws 2004, 
229.23  chapter 272, article 1, section 2, is amended to read: 
229.24     Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
229.25  referendum tax base replacement aid under Minnesota Statutes, 
229.26  section 126C.17, subdivision 7a: 
229.27      $8,096,000    .....     2004 
229.28      $8,596,000 $9,007,000    .....     2005 
229.29     The 2004 appropriation includes $1,419,000 for 2003 and 
229.30  $6,677,000 for 2004.  
229.31     The 2005 appropriation includes $1,669,000 for 2004 and 
229.32  $6,927,000 $7,338,000 for 2005. 
229.33     Sec. 3.  Laws 2003, First Special Session chapter 9, 
229.34  article 1, section 53, subdivision 11, as amended by Laws 2004, 
229.35  chapter 272, article 1, section 5, is amended to read: 
229.36     Subd. 11.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
230.1   education aid under Minnesota Statutes, sections 123B.40 to 
230.2   123B.43 and 123B.87: 
230.3       $14,411,000    .....     2004 
230.4       $15,072,000 $15,304,000    .....     2005 
230.5      The 2004 appropriation includes $2,715,000 for 2003 and 
230.6   $11,696,000 for 2004. 
230.7      The 2005 appropriation includes $2,923,000 for 2004 and 
230.8   $12,149,000 $12,381,000 for 2005. 
230.9      Sec. 4.  Laws 2003, First Special Session chapter 9, 
230.10  article 1, section 53, subdivision 12, as amended by Laws 2004, 
230.11  chapter 272, article 1, section 6, is amended to read: 
230.12     Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
230.13  pupil transportation aid under Minnesota Statutes, section 
230.14  123B.92, subdivision 9: 
230.15      $20,471,000    .....     2004 
230.16      $21,421,000 $21,703,000    .....     2005 
230.17     The 2004 appropriation includes $3,990,000 for 2003 and 
230.18  $16,481,000 for 2004. 
230.19     The 2005 appropriation includes $4,120,000 for 2004 and 
230.20  $17,301,000 $17,583,000 for 2005. 
230.21                      B.  EDUCATION EXCELLENCE
230.22     Sec. 5.  Laws 2003, First Special Session chapter 9, 
230.23  article 2, section 55, subdivision 2, as amended by Laws 2004, 
230.24  chapter 272, article 1, section 7, is amended to read: 
230.25     Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
230.26  lease aid under Minnesota Statutes, section 124D.11, subdivision 
230.27  4: 
230.28      $16,753,000    .....     2004 
230.29      $21,347,000 $21,410,000    .....     2005 
230.30     The 2004 appropriation includes $2,524,000 for 2003 and 
230.31  $14,229,000 for 2004. 
230.32     The 2005 appropriation includes $3,557,000 for 2004 and 
230.33  $17,790,000 $17,853,000 for 2005.  
230.34     Sec. 6.  Laws 2003, First Special Session chapter 9, 
230.35  article 2, section 55, subdivision 5, as amended by Laws 2004, 
230.36  chapter 272, article 1, section 10, is amended to read: 
231.1      Subd. 5.  [INTEGRATION AID.] For integration aid under 
231.2   Minnesota Statutes, section 124D.86, subdivision 5: 
231.3       $55,911,000    .....     2004 
231.4       $55,893,000 $57,756,000    .....     2005 
231.5      The 2004 appropriation includes $8,428,000 for 2003 and 
231.6   $47,483,000 for 2004. 
231.7      The 2005 appropriation includes $11,870,000 for 2004 and 
231.8   $44,023,000 $45,886,000 for 2005.  
231.9      Sec. 7.  Laws 2003, First Special Session chapter 9, 
231.10  article 2, section 55, subdivision 9, as amended by Laws 2004, 
231.11  chapter 272, article 1, section 12, is amended to read: 
231.12     Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
231.13  success for the future grants under Minnesota Statutes, section 
231.14  124D.81: 
231.15      $2,061,000    .....     2004
231.16      $2,137,000 $2,229,000    .....     2005
231.17     The 2004 appropriation includes $351,000 for 2003 and 
231.18  $1,710,000 for 2004. 
231.19     The 2005 appropriation includes $427,000 for 2004 and 
231.20  $1,710,000 $1,802,000 for 2005. 
231.21     Sec. 8.  Laws 2003, First Special Session chapter 9, 
231.22  article 2, section 55, subdivision 12, as amended by Laws 2004, 
231.23  chapter 272, article 1, section 13, is amended to read:  
231.24     Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
231.25  school aid under Minnesota Statutes, section 124D.83: 
231.26      $1,617,000    .....     2004
231.27      $2,185,000 $2,203,000    .....     2005
231.28     The 2004 appropriation includes $285,000 for 2003 and 
231.29  $1,332,000 for 2004. 
231.30     The 2005 appropriation includes $333,000 for 2004 and 
231.31  $1,852,000 $1,870,000 for 2005. 
231.32                        C.  SPECIAL PROGRAMS
231.33     Sec. 9.  Laws 2003, First Special Session chapter 9, 
231.34  article 3, section 20, subdivision 2, is amended to read: 
231.35     Subd. 2.  [SPECIAL EDUCATION; REGULAR.] For special 
231.36  education aid under Minnesota Statutes, section 125A.75: 
232.1        $515,091,000  .....     2004 
232.2        $529,460,000 $552,214,000  .....     2005 
232.3      The 2004 appropriation includes $90,577,000 for 2003 and 
232.4   $424,514,000 for 2004. 
232.5      The 2005 appropriation includes $106,128,000 for 2004 and 
232.6   $423,332,000 $446,086,000 for 2005. 
232.7      Sec. 10.  Laws 2003, First Special Session chapter 9, 
232.8   article 3, section 20, subdivision 4, as amended by Laws 2004, 
232.9   chapter 272, article 1, section 14, is amended to read: 
232.10     Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
232.11  under Minnesota Statutes, section 125A.75, subdivision 3, for 
232.12  children with disabilities placed in residential facilities 
232.13  within the district boundaries for whom no district of residence 
232.14  can be determined: 
232.15      $2,311,000     .....     2004 
232.16      $2,550,000 $3,155,000     .....     2005 
232.17     If the appropriation for either year is insufficient, the 
232.18  appropriation for the other year is available.  
232.19     Sec. 11.  Laws 2003, First Special Session chapter 9, 
232.20  article 3, section 20, subdivision 5, as amended by Laws 2004, 
232.21  chapter 272, article 1, section 15, is amended to read: 
232.22     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
232.23  teacher travel for home-based services under Minnesota Statutes, 
232.24  section 125A.75, subdivision 1: 
232.25      $173,000    .....     2004 
232.26      $178,000 $187,000    .....     2005 
232.27     The 2004 appropriation includes $34,000 for 2003 and 
232.28  $139,000 for 2004. 
232.29     The 2005 appropriation includes $34,000 for 2004 and 
232.30  $144,000 $153,000 for 2005. 
232.31     Sec. 12.  Laws 2003, First Special Session chapter 9, 
232.32  article 3, section 20, subdivision 8, as amended by Laws 2004, 
232.33  chapter 272, article 1, section 18, is amended to read: 
232.34     Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
232.35  transition programs for children with disabilities under 
232.36  Minnesota Statutes, section 124D.454: 
233.1       $8,570,000     .....     2004 
233.2       $8,760,000 $9,176,000     .....     2005 
233.3      The 2004 appropriation includes $1,516,000 for 2003 and 
233.4   $7,054,000 for 2004.  
233.5      The 2005 appropriation includes $1,763,000 for 2004 and 
233.6   $6,997,000 $7,413,000 for 2005.  
233.7      Sec. 13.  Laws 2003, First Special Session chapter 9, 
233.8   article 3, section 20, subdivision 9, as amended by Laws 2004, 
233.9   chapter 272, article 1, section 19, is amended to read: 
233.10     Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
233.11  reimbursing serving school districts for unreimbursed eligible 
233.12  expenditures attributable to children placed in the serving 
233.13  school district by court action under Minnesota Statutes, 
233.14  section 125A.79, subdivision 4: 
233.15      $36,000     .....     2004 
233.16      $61,000 $62,000     .....     2005 
233.17                   D.  FACILITIES AND TECHNOLOGY
233.18     Sec. 14.  Laws 2003, First Special Session chapter 9, 
233.19  article 4, section 31, subdivision 2, as amended by Laws 2004, 
233.20  chapter 272, article 1, section 21, is amended to read: 
233.21     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
233.22  safety aid according to Minnesota Statutes, section 123B.57, 
233.23  subdivision 5: 
233.24      $5,356,000    .....     2004 
233.25      $1,920,000 $2,099,000    .....     2005 
233.26     The 2004 appropriation includes $1,516,000 for 2003 and 
233.27  $3,840,000 for 2004. 
233.28     The 2005 appropriation includes $960,000 for 2004 and 
233.29  $960,000 $1,139,000 for 2005. 
233.30     Sec. 15.  Laws 2003, First Special Session chapter 9, 
233.31  article 4, section 31, subdivision 3, as amended by Laws 2004, 
233.32  chapter 272, article 1, section 22, is amended to read: 
233.33     Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
233.34  according to Minnesota Statutes, section 123B.53, subdivision 6: 
233.35      $35,598,000     .....     2004 
233.36      $31,220,000 $32,495,000     .....     2005 
234.1      The 2004 appropriation includes $5,586,000 for 2003 and 
234.2   $30,012,000 for 2004. 
234.3      The 2005 appropriation includes $7,503,000 for 2004 and 
234.4   $23,717,000 $24,992,000 for 2005. 
234.5      Sec. 16.  Laws 2003, First Special Session chapter 9, 
234.6   article 4, section 31, subdivision 4, is amended to read: 
234.7      Subd. 4.  [ALTERNATIVE FACILITIES BONDING AID.] For 
234.8   alternative facilities bonding aid, according to Minnesota 
234.9   Statutes, section 123B.59, subdivision 1: 
234.10       $18,708,000    .....     2004 
234.11       $19,287,000 $20,116,000   .....     2005 
234.12     The 2004 appropriation includes $3,278,000 for 2003 and 
234.13  $15,430,000 for 2004. 
234.14     The 2005 appropriation includes $3,857,000 for 2004 and 
234.15  $15,430,000 $16,259,000 for 2005. 
234.16          E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
234.17     Sec. 17.  Laws 2003, First Special Session chapter 9, 
234.18  article 5, section 35, subdivision 3, as amended by Laws 2004, 
234.19  chapter 272, article 1, section 24, is amended to read: 
234.20     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
234.21  MILK.] For traditional school breakfast aid and kindergarten 
234.22  milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
234.23      $4,382,000    .....     2004 
234.24      $4,460,000 $4,548,000    .....     2005 
234.25                           F.  LIBRARIES
234.26     Sec. 18.  Laws 2003, First Special Session chapter 9, 
234.27  article 6, section 4, as amended by Laws 2004, chapter 272, 
234.28  article 1, section 25, and Laws 2004, chapter 286, section 3, is 
234.29  amended to read: 
234.30     Sec. 4.  [APPROPRIATIONS.] 
234.31     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
234.32  indicated in this section are appropriated from the general fund 
234.33  to the department of education for the fiscal years designated.  
234.34     Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
234.35  grants under Minnesota Statutes, section 134.355: 
234.36      $8,312,000     .....     2004 
235.1       $8,570,000 $8,939,000     .....     2005 
235.2      The 2004 appropriation includes $1,456,000 for 2003 and 
235.3   $6,856,000 for 2004. 
235.4      The 2005 appropriation includes $1,714,000 for 2004 and 
235.5   $6,856,000 $7,225,000 for 2005. 
235.6      Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
235.7   regional library telecommunications aid under Minnesota 
235.8   Statutes, section 134.355: 
235.9       $960,000     .....     2004
235.10      $1,200,000 $1,252,000     .....     2005
235.11     The 2004 appropriation includes $960,000 for 2004. 
235.12     The 2005 appropriation includes $240,000 for 2004 and 
235.13  $960,000 $1,012,000 for 2005. 
235.14     Subd. 4.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
235.15  grants according to Minnesota Statutes, sections 134.353 and 
235.16  134.354, to multicounty, multitype library systems: 
235.17      $876,000       .....     2004 
235.18      $903,000 $942,000       .....     2005 
235.19     The 2004 appropriation includes $153,000 for 2003 and 
235.20  $723,000 for 2004. 
235.21     The 2005 appropriation includes $180,000 for 2004 and 
235.22  $723,000 $762,000 for 2005.  
235.23     Subd. 5.  [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide 
235.24  licenses to on-line databases selected in cooperation with the 
235.25  higher education services office for school media centers, 
235.26  public libraries, state government agency libraries, and public 
235.27  or private college or university libraries: 
235.28      $400,000     .....     2004 
235.29      $400,000     .....     2005 
235.30     Any balance in the first year does not cancel but is 
235.31  available in the second year. 
235.32                 G.  EARLY CHILDHOOD FAMILY SUPPORT
235.33     Sec. 19.  Laws 2003, First Special Session chapter 9, 
235.34  article 7, section 11, subdivision 2, is amended to read: 
235.35     Subd. 2.  [SCHOOL READINESS.] For revenue for school 
235.36  readiness programs under Minnesota Statutes, sections 124D.15 
236.1   and 124D.16: 
236.2        $ 9,536,000    .....     2004
236.3        $ 9,258,000 $9,594,000   .....     2005
236.4      The 2004 appropriation includes $1,605,000 for 2003 and 
236.5   $7,931,000 for 2004. 
236.6      The 2005 appropriation includes $1,982,000 for 2004 and 
236.7   $7,276,000 $7,612,000 for 2005.  
236.8      Sec. 20.  Laws 2003, First Special Session chapter 9, 
236.9   article 7, section 11, subdivision 4, is amended to read: 
236.10     Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
236.11  health and developmental screening aid under Minnesota Statutes, 
236.12  sections 121A.17 and 121A.19: 
236.13       $2,581,000    .....     2004 
236.14       $2,661,000 $2,776,000    .....     2005 
236.15     The 2004 appropriation includes $452,000 for 2003 and 
236.16  $2,129,000 for 2004.  
236.17     The 2005 appropriation includes $532,000 for 2004 and 
236.18  $2,129,000 $2,244,000 for 2005.  
236.19                           H.  PREVENTION
236.20     Sec. 21.  Laws 2003, First Special Session chapter 9, 
236.21  article 8, section 7, subdivision 2, as amended by Laws 2004, 
236.22  chapter 272, article 1, section 27, is amended to read: 
236.23     Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
236.24  education aid under Minnesota Statutes, section 124D.20: 
236.25      $5,351,000    .....     2004 
236.26      $3,137,000 $3,198,000    .....     2005 
236.27     The 2004 appropriation includes $956,000 for 2003 and 
236.28  $4,395,000 for 2004.  
236.29     The 2005 appropriation includes $1,098,000 for 2004 and 
236.30  $2,039,000 $2,100,000 for 2005.  
236.31     Sec. 22.  Laws 2003, First Special Session chapter 9, 
236.32  article 8, section 7, subdivision 3, is amended to read: 
236.33     Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
236.34  adults with disabilities programs under Minnesota Statutes, 
236.35  section 124D.56: 
236.36       $688,000       .....     2004 
237.1        $710,000 $741,000      .....     2005 
237.2      The 2004 appropriation includes $120,000 for 2003 and 
237.3   $568,000 for 2004.  
237.4      The 2005 appropriation includes $142,000 for 2004 and 
237.5   $568,000 $599,000 for 2005. 
237.6      Sec. 23.  Laws 2003, First Special Session chapter 9, 
237.7   article 8, section 7, subdivision 5, as amended by Laws 2004, 
237.8   chapter 272, article 1, section 28, is amended to read: 
237.9      Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day care 
237.10  aid under Minnesota Statutes, section 124D.22: 
237.11      $40,000    .....     2004 
237.12      $24,000 $30,000    .....     2005
237.13     The 2004 appropriation includes $14,000 for 2003 and 
237.14  $26,000 for 2004. 
237.15     The 2005 appropriation includes $6,000 for 2004 and 
237.16  $18,000 $24,000 for 2005. 
237.17             I.  SELF-SUFFICIENCY AND LIFELONG LEARNING
237.18     Sec. 24.  Laws 2003, First Special Session chapter 9, 
237.19  article 9, section 9, subdivision 2, as amended by Laws 2004, 
237.20  chapter 272, article 1, section 29, is amended to read: 
237.21     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
237.22  education aid under Minnesota Statutes, section 124D.52, in 
237.23  fiscal year 2004 and Minnesota Statutes, section 124D.531, in 
237.24  fiscal year 2005:  
237.25      $33,014,000    .....     2004 
237.26      $35,808,000 $37,444,000    .....     2005 
237.27     The 2004 appropriation includes $5,827,000 for 2003 and 
237.28  $27,187,000 for 2004.  
237.29     The 2005 appropriation includes $6,796,000 for 2004 and 
237.30  $29,012,000 $30,648,000 for 2005.  
237.31     Sec. 25.  [EFFECTIVE DATE.] 
237.32     Sections 1 to 24 are effective the day following final 
237.33  enactment. 
237.34                             ARTICLE 12 
237.35                TECHNICAL AND CONFORMING AMENDMENTS 
237.36     Section 1.  Minnesota Statutes 2004, section 120B.31, 
238.1   subdivision 4, is amended to read: 
238.2      Subd. 4.  [STATISTICAL ADJUSTMENTS.] In developing policies 
238.3   and assessment processes to hold schools and districts 
238.4   accountable for high levels of academic standards, including the 
238.5   profile of learning under section 120B.021, the commissioner 
238.6   shall aggregate student data over time to report student 
238.7   performance levels measured at the school district, regional, or 
238.8   statewide level.  When collecting and reporting the data, the 
238.9   commissioner shall:  (1) acknowledge the impact of significant 
238.10  demographic factors such as residential instability, the number 
238.11  of single parent families, parents' level of education, and 
238.12  parents' income level on school outcomes; and (2) organize and 
238.13  report the data so that state and local policy makers can 
238.14  understand the educational implications of changes in districts' 
238.15  demographic profiles over time.  Any report the commissioner 
238.16  disseminates containing summary data on student performance must 
238.17  integrate student performance and the demographic factors that 
238.18  strongly correlate with that performance.  
238.19     Sec. 2.  Minnesota Statutes 2004, section 121A.41, 
238.20  subdivision 10, is amended to read: 
238.21     Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
238.22  the school administration, under rules promulgated by the school 
238.23  board, prohibiting a pupil from attending school for a period of 
238.24  no more than ten school days.  If a suspension is longer than 
238.25  five days, the suspending administrator must provide the 
238.26  superintendent with a reason for the longer suspension.  This 
238.27  definition does not apply to dismissal from school for one 
238.28  school day or less, except as provided in federal law for a 
238.29  student with a disability.  Each suspension action may include a 
238.30  readmission plan.  The readmission plan shall include, where 
238.31  appropriate, a provision for implementing alternative 
238.32  educational services upon readmission and may not be used to 
238.33  extend the current suspension.  Consistent with section 
238.34  125A.09 125A.091, subdivision 3 5, the readmission plan must not 
238.35  obligate a parent to provide a sympathomimetic medication for 
238.36  the parent's child as a condition of readmission.  The school 
239.1   administration may not impose consecutive suspensions against 
239.2   the same pupil for the same course of conduct, or incident of 
239.3   misconduct, except where the pupil will create an immediate and 
239.4   substantial danger to self or to surrounding persons or 
239.5   property, or where the district is in the process of initiating 
239.6   an expulsion, in which case the school administration may extend 
239.7   the suspension to a total of 15 days.  In the case of a student 
239.8   with a disability, the student's individual education plan team 
239.9   must meet immediately but not more than ten school days after 
239.10  the date on which the decision to remove the student from the 
239.11  student's current education placement is made.  The individual 
239.12  education plan team and other qualified personnel shall at that 
239.13  meeting:  conduct a review of the relationship between the 
239.14  child's disability and the behavior subject to disciplinary 
239.15  action; and determine the appropriateness of the child's 
239.16  education plan. 
239.17     The requirements of the individual education plan team 
239.18  meeting apply when: 
239.19     (1) the parent requests a meeting; 
239.20     (2) the student is removed from the student's current 
239.21  placement for five or more consecutive days; or 
239.22     (3) the student's total days of removal from the student's 
239.23  placement during the school year exceed ten cumulative days in a 
239.24  school year.  The school administration shall implement 
239.25  alternative educational services when the suspension exceeds 
239.26  five days.  A separate administrative conference is required for 
239.27  each period of suspension. 
239.28     Sec. 3.  Minnesota Statutes 2004, section 124D.40, is 
239.29  amended to read: 
239.30     124D.40 [YOUTH WORKS GRANTS.] 
239.31     Subdivision 1.  [APPLICATION.] An eligible organization 
239.32  interested in receiving a grant under sections 124D.39 to 
239.33  124D.44 may prepare and submit an application to the commission 
239.34  an application that complies with section 124D.41. 
239.35     Subd. 2.  [GRANT AUTHORITY.] The commission must use any 
239.36  state appropriation and any available federal funds, including 
240.1   any grant received under federal law, to award grants to 
240.2   establish programs for youth works meeting the requirements of 
240.3   section 124D.41.  At least one grant each must be available for 
240.4   a metropolitan proposal, a rural proposal, and a statewide 
240.5   proposal.  If a portion of the suburban metropolitan area is not 
240.6   included in the metropolitan grant proposal, the statewide grant 
240.7   proposal must incorporate at least one suburban metropolitan 
240.8   area.  In awarding grants, the commission may select at least 
240.9   one residential proposal and one nonresidential proposal, 
240.10  provided the proposals meet or exceed the criteria in section 
240.11  124D.41. 
240.12     Sec. 4.  Minnesota Statutes 2004, section 127A.41, 
240.13  subdivision 8, is amended to read: 
240.14     Subd. 8.  [APPROPRIATION TRANSFERS.] (a) If a direct 
240.15  appropriation from the general fund to the department for any 
240.16  education aid or grant authorized in this chapter and chapters 
240.17  122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 
240.18  appropriations under sections 124D.135, 124D.16, 124D.20, 
240.19  124D.21, 124D.22, 124D.52, 124D.531, 124D.54, 124D.55, and 
240.20  124D.56, exceeds the amount required, the commissioner may 
240.21  transfer the excess to any education aid or grant appropriation 
240.22  that is insufficient.  However, section 126C.20 applies to a 
240.23  deficiency in the direct appropriation for general education 
240.24  aid.  Excess appropriations must be allocated proportionately 
240.25  among aids or grants that have insufficient appropriations.  The 
240.26  commissioner of finance shall make the necessary transfers among 
240.27  appropriations according to the determinations of the 
240.28  commissioner.  If the amount of the direct appropriation for the 
240.29  aid or grant plus the amount transferred according to this 
240.30  subdivision is insufficient, the commissioner shall prorate the 
240.31  available amount among eligible districts.  The state is not 
240.32  obligated for any additional amounts. 
240.33     (b) Transfers for aids paid under section 127A.45, 
240.34  subdivisions 12, paragraph (a), 12a, paragraph (a), and 13, 
240.35  shall be made during the fiscal year after the fiscal year of 
240.36  the entitlement.  Transfers for aids paid under section 127A.45, 
241.1   subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 
241.2   shall be made during the fiscal year of the appropriation. 
241.3      Sec. 5.  Minnesota Statutes 2004, section 127A.45, 
241.4   subdivision 12, is amended to read: 
241.5      Subd. 12.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 
241.6   hundred percent of the aid for the current fiscal year must be 
241.7   paid for the following aids:  reimbursement for enrollment 
241.8   options transportation, according to sections 124D.03, 
241.9   subdivision 8, 124D.09, subdivision 22, and 124D.10; school 
241.10  lunch aid, according to section 124D.111; hearing impaired 
241.11  support services aid, according to section 124D.57; and Indian 
241.12  postsecondary preparation grants according to section 
241.13  124D.80 124D.81. 
241.14     (b) One hundred percent of the aid for the current fiscal 
241.15  year, based on enrollment in the previous year, must be paid for 
241.16  the first grade preparedness program according to section 
241.17  124D.081.