1.1 	A bill for an act
1.2 	relating to education; providing for general education revenue, education 
1.3 	excellence, special programs, accounting, self-sufficiency and lifelong learning, 
1.4 	and state agencies; authorizing rulemaking; amending Minnesota Statutes 2004, 
1.5 	sections 119A.50, subdivision 1; 119A.52; 119A.53; 119A.545; 120A.20, 
1.6 	subdivision 1; 120A.22, subdivision 3; 120B.023; 120B.024; 123A.06, 
1.7 	subdivision 2; 123B.10, subdivision 1; 124D.02, subdivisions 2, 4; 124D.10, 
1.8 	subdivision 16; 124D.518, subdivision 4; 124D.52, subdivision 1; 124D.61; 
1.9 	124D.68, subdivision 3; 125A.02, subdivision 1; 125A.27, subdivision 11; 
1.10 	125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 125A.515, subdivisions 1, 3, 5, 
1.11 	6, 7, 9, 10; 125A.63, subdivision 4; 125A.69, subdivision 3; 125A.75, subdivision 
1.12 	1; 126C.05, subdivision 1; 126C.10, subdivision 6; 126C.44; Minnesota Statutes 
1.13 	2005 Supplement, sections 121A.53, subdivision 1; 122A.415, subdivisions 1, 
1.14 	3; 123B.76, subdivision 3; 124D.095, subdivision 4; 124D.68, subdivision 2; 
1.15 	125A.11, subdivision 1; 126C.43, subdivision 2; 127A.45, subdivision 10;  Laws 
1.16 	2005, First Special Session chapter 5, article 2, sections 81; 84, subdivision 13; 
1.17 	article 7, section 20, subdivision 5; proposing coding for new law in Minnesota 
1.18 	Statutes, chapter 119A; repealing Minnesota Statutes 2004, sections 119A.51; 
1.19 	120A.20, subdivision 3; 125A.10; 125A.515, subdivision 2.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	ARTICLE 1
1.22 	GENERAL EDUCATION REVENUE

1.23 	Section 1. Minnesota Statutes 2004, section 120A.20, subdivision 1, is amended to 
1.24 	read:
1.25 		Subdivision 1.Age limitations; pupils. (a) All schools supported in whole or in 
1.26 	part by state funds are public schools. Admission to a public school is free to any person 
1.27 	who: (1) resides within the district that operates the school, who; (2) is under 21 years of 
1.28 	age, or who meet the requirements of paragraph (c); and who(3) satisfies the minimum 
1.29 	age requirements imposed by this section. Notwithstanding the provisions of any law to 
2.1 	the contrary, the conduct of all students under 21 years of age attending a public secondary 
2.2 	school is governed by a single set of reasonable rules and regulations promulgated by the 
2.3 	school board. 
2.4 	No (b) A person shall not be admitted to any a public school (1) as a kindergarten 
2.5 	pupil, unless the pupil is at least five years of age on September 1 of the calendar year in 
2.6 	which the school year for which the pupil seeks admission commences; or (2) as a 1st 
2.7 	grade student, unless the pupil is at least six years of age on September 1 of the calendar 
2.8 	year in which the school year for which the pupil seeks admission commences or has 
2.9 	completed kindergarten; except that any school board may establish a policy for admission 
2.10 	of selected pupils at an earlier age.
2.11 	(c) A pupil who becomes age 21 after enrollment is eligible for continued free public 
2.12 	school enrollment until at least one of the following occurs: (1) the first September 1 after 
2.13 	the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3) 
2.14 	the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4) 
2.15 	the end of the school year.

2.16 	Sec. 2. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 1, is 
2.17 	amended to read:
2.18 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
2.19 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
2.20 	application approved by the commissioner is eligible for alternative teacher compensation 
2.21 	revenue.
2.22 	(b) For school district and intermediate school district applications, the commissioner 
2.23 	must consider only those applications to participate that are submitted jointly by a 
2.24 	district and the exclusive representative of the teachers. The application must contain an 
2.25 	alternative teacher professional pay system agreement that:
2.26 	(1) implements an alternative teacher professional pay system consistent with 
2.27 	section 122A.414; and
2.28 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
2.29 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
2.30 	district may enter into a contract for a term of two or four years.
2.31 	Alternative teacher compensation revenue for a qualifying school district or site in 
2.32 	which the school board and the exclusive representative of the teachers agree to place 
2.33 	teachers in the district or at the site on the alternative teacher professional pay system 
2.34 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
2.35 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
3.1 	intermediate school district must be calculated under section 126C.10, subdivision 34, 
3.2 	paragraphs (a) and (b).
3.3 	(c) For a newly combined or consolidated district, the revenue shall be computed 
3.4 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
3.5 	into the combination or consolidation. The commissioner may adjust the revenue 
3.6 	computed for a site using prior year data to reflect changes attributable to school closings, 
3.7 	school openings, or grade level reconfigurations between the prior year and the current 
3.8 	year.
3.9 	(d) The revenue is available only to school districts, intermediate school districts, 
3.10 	school sites, and charter schools that fully implement an alternative teacher professional 
3.11 	pay system by October 1 of the current school year.
3.12 	(e) The revenue must be maintained in a reserve account within the general fund.

3.13 	Sec. 3. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 3, is 
3.14 	amended to read:
3.15 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
3.16 	or charter schools with approved applications must receive alternative compensation 
3.17 	revenue for each school year that the district, intermediate school district, school site, 
3.18 	or charter school implements an alternative teacher professional pay system under this 
3.19 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
3.20 	intermediate school district, school site, or charter school that received alternative teacher 
3.21 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
3.22 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
3.23 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
3.24 	the district, intermediate school district, school site, or charter school submits a timely 
3.25 	application and the commissioner determines that the district, intermediate school district, 
3.26 	school site, or charter school continues to implement an alternative teacher professional 
3.27 	pay system, consistent with its application under this section.
3.28 	(b) The commissioner shall approve applications that comply with subdivision 1, 
3.29 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
3.30 	school, in the order in which they are received, select applicants that qualify for this 
3.31 	program, notify school districts, intermediate school districts, school sites, and charter 
3.32 	schools about the program, develop and disseminate application materials, and carry out 
3.33 	other activities needed to implement this section.
3.34 	(c) For applications approved under this section before August 1 of the fiscal year for 
3.35 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
4.1 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006 
4.2 	and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state 
4.3 	total basic alternative teacher compensation aid entitlement allocated to charter schools 
4.4 	must not exceed the product of $3,374,000 times the ratio of the state total charter school 
4.5 	enrollment for the previous fiscal year to the state total charter school enrollment for the 
4.6 	second previous year fiscal year 2006. Additional basic alternative teacher compensation 
4.7 	aid may be approved for charter schools after August 1, not to exceed the charter school 
4.8 	limit for the following fiscal year, if the basic alternative teacher compensation aid 
4.9 	entitlement for school districts and intermediate school districts based on applications 
4.10 	approved by August 1 does not expend the remaining amount under the limit.

4.11 	Sec. 4. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
4.12 		Subd. 2.People to be served. A center shall provide programs for secondary 
4.13 	pupils and adults. A center may also provide programs and services for elementary and 
4.14 	secondary pupils who are not attending the center to assist them in being successful in 
4.15 	school. A center shall use research-based best practices for serving limited English 
4.16 	proficient students and their parents. An individual education plan team may identify a 
4.17 	center as an appropriate placement to the extent a center can provide the student with the 
4.18 	appropriate special education services described in the student's plan. Pupils eligible to 
4.19 	be served are those age five to adults 22 and older who qualify under the graduation 
4.20 	incentives program in section  124D.68, subdivision 2, those enrolled under section 
4.21 	124D.02, subdivision 2, or those pupils who are eligible to receive special education 
4.22 	services under sections  125A.03 to  125A.24, and  125A.65. 

4.23 	Sec. 5. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
4.24 	amended to read:
4.25 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
4.26 	means education site as defined in section 123B.04, subdivision 1.
4.27 	(b) Each district shall maintain separate accounts to identify general fund 
4.28 	expenditures for each building. All expenditures for regular instruction, secondary 
4.29 	vocational instruction, and school administration must be reported to the department 
4.30 	separately for each building. All expenditures for special education instruction, 
4.31 	instructional support services, and pupil support services provided within a specific 
4.32 	building must be reported to the department separately for each building. Salary 
4.33 	expenditures reported by building must reflect actual salaries for staff at the building and 
5.1 	must not be based on districtwide averages. All other general fund expenditures may be 
5.2 	reported by building or on a districtwide basis.
5.3 	(c) The department must annually report information showing school district general 
5.4 	fund expenditures per pupil by program category for each building and estimated school 
5.5 	district general fund revenue generated by pupils attending each building on its Web 
5.6 	site. For purposes of this report:
5.7 	(1) expenditures not reported by building shall be allocated among buildings on a 
5.8 	uniform per pupil basis;
5.9 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
5.10 	4;
5.11 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
5.12 	according to section 126C.10, subdivisions 7 and 8;
5.13 	(4) alternative teacher compensation revenue shall be allocated according to section 
5.14 	122A.415, subdivision 1;
5.15 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
5.16 	basis;
5.17 	(5)(6)  first grade preparedness aid shall be allocated according to section 124D.081;
5.18 	(6)(7)  state and federal special education aid and Title I aid shall be allocated in 
5.19 	proportion to district expenditures for these programs by building; and
5.20 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
5.21 	except that the department may allocate other revenues attributable to specific buildings 
5.22 	directly to those buildings.

5.23 	Sec. 6. Minnesota Statutes 2004, section 124D.02, subdivision 2, is amended to read:
5.24 		Subd. 2.Secondary school programs. The board may permit a person who is over 
5.25 	the age of 21 or who has graduated from high school to enroll as a part-time student in a 
5.26 	class or program at a secondary school if there is space available. In determining if there is 
5.27 	space available, full-time public school students, eligible for free enrollment under section 
5.28 	120A.20, subdivision 1, and shared-time students shall be given priority over students 
5.29 	seeking enrollment pursuant to this subdivision, and students returning to complete a 
5.30 	regular course of study shall be given priority over part-time other students seeking 
5.31 	enrollment pursuant to this subdivision. The following are not prerequisites for enrollment:
5.32 	(1) residency in the school district;
5.33 	(2) United States citizenship; or
6.1 	(3) for a person over the age of 21, a high school diploma or equivalency certificate. 
6.2 	A person may enroll in a class or program even if that person attends evening school, an 
6.3 	adult or continuing education, or a postsecondary educational program or institution.

6.4 	Sec. 7. Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:
6.5 		Subd. 4.Part-time student fee. Notwithstanding the provisions of sections  
6.6 	120A.20 and  123B.37, a board may charge a part-time student enrolled pursuant to 
6.7 	subdivision 2 a reasonable fee for a class or program. 

6.8 	Sec. 8. Minnesota Statutes 2005 Supplement, section 124D.68, subdivision 2, is 
6.9 	amended to read:
6.10 		Subd. 2.Eligible pupils. The following pupils are A pupil under the age of 21 or 
6.11 	who meets the requirements of section 120A.20, subdivision 1, paragraph (c), is  eligible to 
6.12 	participate in the graduation incentives program:
6.13 	(a) any pupil under the age of 21 who, if the pupil:
6.14 	(1) performs substantially below the performance level for pupils of the same age 
6.15 	in a locally determined achievement test;
6.16 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
6.17 	credits for graduation;
6.18 	(3) is pregnant or is a parent;
6.19 	(4) has been assessed as chemically dependent;
6.20 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
6.21 	(6) has been referred by a school district for enrollment in an eligible program or 
6.22 	a program pursuant to section 124D.69;
6.23 	(7) is a victim of physical or sexual abuse;
6.24 	(8) has experienced mental health problems;
6.25 	(9) has experienced homelessness sometime within six months before requesting a 
6.26 	transfer to an eligible program;
6.27 	(10) speaks English as a second language or has limited English proficiency; or
6.28 	(11) has withdrawn from school or has been chronically truant; or.
6.29 	(b) any person who is at least 21 years of age and who:
6.30 	(1) has received fewer than 14 years of public or nonpublic education, beginning 
6.31 	at age 5;
6.32 	(2) has not completed the requirements for a high school diploma; and
6.33 	(3) at the time of application, (i) is eligible for unemployment benefits or has 
6.34 	exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support 
7.1 	services, as defined in section 116L.19, subdivision 5, or (iii) is eligible for services under 
7.2 	the displaced homemaker program or any programs under the federal Jobs Training 
7.3 	Partnership Act or its successor.

7.4 	Sec. 9. Minnesota Statutes 2004, section 124D.68, subdivision 3, is amended to read:
7.5 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
7.6 	may enroll in area learning centers under sections  123A.05 to  123A.08. 
7.7 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
7.8 	of 16 and 21 may enroll in postsecondary courses under section  124D.09. 
7.9 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
7.10 	or secondary education program. However, a person who is eligible according to 
7.11 	subdivision 2, clause (b), may enroll only if the school board has adopted a resolution 
7.12 	approving the enrollment.
7.13 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
7.14 	nonsectarian school that has contracted with the serving school district to provide 
7.15 	educational services.
7.16 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
7.17 	education programs approved under section  124D.52 and operated under the community 
7.18 	education program contained in section  124D.19. 

7.19 	Sec. 10. Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:
7.20 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
7.21 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
7.22 	(c), in average daily membership enrolled in the district of residence, in another district 
7.23 	under sections  123A.05 to  123A.08,  124D.03,  124D.06,  124D.07,  124D.08, or  124D.68; 
7.24 	in a charter school under section  124D.10; or for whom the resident district pays tuition 
7.25 	under section  123A.18,  123A.22,  123A.30,  123A.32,  123A.44,  123A.488,  123B.88, 
7.26 	subdivision 4,  124D.04,  124D.05,  125A.03 to  125A.24,  125A.51, or  125A.65, shall be 
7.27 	counted according to this subdivision. 
7.28 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
7.29 	by the commissioner and has an individual education plan is counted as the ratio of the 
7.30 	number of hours of assessment and education service to 825 times  1.25 with a minimum 
7.31 	average daily membership of 0.28, but not more than  1.25 pupil units. 
7.32 	(b) A prekindergarten pupil who is assessed but determined not to be handicapped is 
7.33 	counted as the ratio of the number of hours of assessment service to 825 times  1.25. 
8.1 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
8.2 	by the commissioner is counted as the ratio of the number of hours of assessment and 
8.3 	education services required in the fiscal year by the pupil's individual education program 
8.4 	plan to 875, but not more than one.
8.5 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
8.6 	pupil unit for fiscal year 2000 and thereafter.
8.7 	(e) A pupil who is in any of grades 1 to 3 is counted as  1.115 pupil units for fiscal 
8.8 	year 2000 and thereafter. 
8.9 	(f) A pupil who is any of grades 4 to 6 is counted as  1.06 pupil units for fiscal 
8.10 	year 1995 and thereafter. 
8.11 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
8.12 	(h) A pupil who is in the postsecondary enrollment options program is counted 
8.13 	as 1.3 pupil units.

8.14 	Sec. 11. Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:
8.15 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
8.16 	7 and 8.
8.17 	(a) "High school" means a public secondary school, except a charter school under 
8.18 	section 124D.10,  that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
8.19 	there is no secondaryhigh  school in the district that has pupils enrolled in at least the 
8.20 	10th, 11th, and 12th grades, and the school is at least 19 miles from the next nearest 
8.21 	school, the commissioner must designate one school in the district as a high school for the 
8.22 	purposes of this section.
8.23 	(b) "Secondary average daily membership" means, for a district that has only one 
8.24 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
8.25 	district that has more than one high school, "secondary average daily membership" for 
8.26 	each high school means the product of the average daily membership of pupils served in 
8.27 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
8.28 	in the high school.
8.29 	(c) "Attendance area" means the total surface area of the district, in square miles, 
8.30 	divided by the number of high schools in the district. For a district that does not operate 
8.31 	a high school and is less than 19 miles from the nearest operating high school, the 
8.32 	attendance area equals zero.
8.33 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
8.34 	attendance area plus the distance in miles, according to the usually traveled routes, 
9.1 	between the high school and the nearest high school. For a district in which there is located 
9.2 	land defined in section  84A.01,  84A.20, or  84A.31, the distance in miles is the sum of: 
9.3 	(1) the square root of one-half of the attendance area; and
9.4 	(2) the distance from the border of the district to the nearest high school.
9.5 	(e) "Qualifying high school" means a high school that has an isolation index greater 
9.6 	than 23 and that has secondary average daily membership of less than 400.
9.7 	(f) "Qualifying elementary school" means an a public  elementary school, except a 
9.8 	charter school under section 124D.10,  that is located 19 miles or more from the nearest 
9.9 	elementary school or from the nearest elementary school within the district and, in either 
9.10 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
9.11 	(g) "Elementary average daily membership" means, for a district that has only 
9.12 	one elementary school, the average daily membership of pupils served in kindergarten 
9.13 	through grade 6. For a district that has more than one elementary school, "average daily 
9.14 	membership" for each school means the average daily membership of pupils served in 
9.15 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
9.16 	in the elementary school.

9.17 	Sec. 12. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
9.18 	amended to read:
9.19 		Subd. 2.Payment to unemployment insurance program trust fund by state 
9.20 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
9.21 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
9.22 	placement services offered to employees who may become eligible for benefits pursuant 
9.23 	to section 268.085 for the fiscal year the levy is certified.
9.24 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
9.25 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
9.26 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
9.27 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
9.28 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

9.29 	EFFECTIVE DATE.  This section is effective the day following final enactment.

9.30 	Sec. 13. Minnesota Statutes 2004, section 126C.44, is amended to read:
9.31 	126C.44 SAFE SCHOOLS LEVY.
9.32 	Each district may make a levy on all taxable property located within the district for 
9.33 	the purposes specified in this section. The maximum amount which may be levied for all 
10.1 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
10.2 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
10.3 	for directly funding the following purposes or for reimbursing the cities and counties who 
10.4 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
10.5 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
10.6 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
10.7 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
10.8 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
10.9 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
10.10 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
10.11 	prevention measures taken by the school district. For expenditures under clause (1), the 
10.12 	district must initially attempt to contract for services to be provided by peace officers or 
10.13 	sheriffs with the police department of each city or the sheriff's department of the county 
10.14 	within the district containing the school receiving the services. If a local police department 
10.15 	or a county sheriff's department does not wish to provide the necessary services, the 
10.16 	district may contract for these services with any other police or sheriff's department 
10.17 	located entirely or partially within the school district's boundaries. The levy authorized 
10.18 	under this section is not included in determining the school district's levy limitations.

10.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2006.

10.20 	Sec. 14. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
10.21 	is amended to read:
10.22 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
10.23 	fund payments for a district nonoperating fund must be made at the current year aid 
10.24 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
10.25 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
10.26 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
10.27 	year of the entitlement must be paid prior to October 31 of the following school year. The 
10.28 	commissioner may make advance payments of debt service equalization aid and state-paid 
10.29 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
10.30 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
10.31 	The commissioner may make earlier payments during the year and, if necessary, increase 
10.32 	the percent of the entitlement paid to reduce the cash flow problem.

10.33 	EFFECTIVE DATE.  This section is effective the day following final enactment.

11.1 	Sec. 15.  REPEALER.
 11.2 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

11.3 	ARTICLE 2
11.4 	EDUCATION EXCELLENCE

11.5 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
11.6 	read:
11.7 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
11.8 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
11.9 	custody of a child. 
11.10 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
11.11 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
11.12 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
11.13 	in which case it means the guardian or conservator. 
11.14 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
11.15 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
11.16 	who is placed in a center for care and treatment, shall be the school district in which the 
11.17 	pupil's biological or adoptive parent or designated guardian resides. 
11.18 	(d) For a married pupil age 18 or over, the school district of residence is the school 
11.19 	district in which the married pupil resides.
11.20 	(e) If a district suspects that a student does not meet the residency requirements of the 
11.21 	school district in which the student is attending school, the student may be removed from 
11.22 	the school only after the district sends the student's parents written notice of the district's 
11.23 	suspicion, including the facts upon which the suspicion is based, and an opportunity to 
11.24 	provide documentary evidence of residency in person to the superintendent or designee, 
11.25 	or, at the option of the parents, by sending the documentary evidence to the superintendent 
11.26 	or a designee, who will then make a determination as to the residency status of the student.

11.27 	Sec. 2. Minnesota Statutes 2004, section 120B.023, is amended to read:
11.28 	120B.023 BENCHMARKS.
11.29 		Subdivision 1.Benchmarks implement, supplement statewide academic 
11.30 	standards. (a) The commissioner must supplement required state academic standards with 
11.31 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
11.32 	benchmarks must implement statewide academic standards by specifying the academic 
11.33 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
12.1 	complete a state standard. The commissioner must publish benchmarks are published to 
12.2 	inform and guide parents, teachers, school districts, and other interested persons and for to
12.3 	use in developing tests consistent with the benchmarks.
12.4 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
12.5 	the benchmarks in any other manner that makes them accessible to the general public. The 
12.6 	commissioner may charge a reasonable fee for publications.
12.7 	(c) Once established, the commissioner may change the benchmarks only with 
12.8 	specific legislative authorization and after completing a review under paragraph (d)
12.9 	subdivision 2.
12.10 	(d) The commissioner must develop and implement a system for reviewing on 
12.11 	a four-year cycle each of the required academic standards and related benchmarks and 
12.12 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
12.13 	with subdivision 2.
12.14 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
12.15 		Subd. 2.Revisions and reviews required. (a) The education commissioner must 
12.16 	revise and appropriately embed technology and information literacy standards into 
12.17 	the state's academic standards and graduation requirements and implement a six-year 
12.18 	review cycle for state academic standards and related benchmarks, consistent with this 
12.19 	subdivision.
12.20 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
12.21 	academic standards and high school graduation requirements in mathematics to require 
12.22 	that students satisfactorily complete the revised mathematics standards, beginning in the 
12.23 	2008-2009 school year. Under the revised standards:
12.24 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
12.25 	grade; and
12.26 	(2) students scheduled to graduate in the 2012-2013 school year or later must 
12.27 	satisfactorily complete an algebra II credit or its equivalent.
12.28 	The commissioner also must ensure that the statewide mathematics assessments 
12.29 	administered to students in grades 3 through 8 and 11 beginning in the 2008-2009 school 
12.30 	year are aligned with the state academic standards in mathematics. The statewide grade 11 
12.31 	math test administered to students under clause (2) beginning in the 2011-2012 school 
12.32 	year, must include algebra II test items that are aligned with corresponding state academic 
12.33 	standards in mathematics. The commissioner must implement a six-year review cycle 
12.34 	for the academic standards and related benchmarks in mathematics beginning in the 
12.35 	2013-2014 school year.
13.1 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
13.2 	academic standards and high school graduation requirements in language arts to require 
13.3 	that students satisfactorily complete the revised language arts standards beginning in 
13.4 	the 2009-2010 school year. The commissioner must implement a six-year review cycle 
13.5 	for the academic standards and related benchmarks in language arts beginning in the 
13.6 	2014-2015 school year.
13.7 	(d) The commissioner in the 2008-2009 school year must revise and align the 
13.8 	state's academic standards and high school graduation requirements in science to require 
13.9 	that students satisfactorily complete the revised science standards, beginning in the 
13.10 	2010-2011 school year. Under the revised standards, students scheduled to graduate in 
13.11 	the 2013-2014 school year or later must satisfactorily complete a chemistry credit. The 
13.12 	commissioner must implement a six-year review cycle for the academic standards and 
13.13 	related benchmarks in science beginning in the 2015-2016 school year.
13.14 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
13.15 	academic standards and high school graduation requirements in social studies to require 
13.16 	that students satisfactorily complete the revised social studies standards beginning in 
13.17 	the 2011-2012 school year. The commissioner must implement a six-year review cycle 
13.18 	for the academic standards and related benchmarks in social studies beginning in the 
13.19 	2016-2017 school year.
13.20 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
13.21 	academic standards and high school graduation requirements in the arts to require that 
13.22 	students satisfactorily complete the revised arts standards beginning in the 2012-2013 
13.23 	school year. The commissioner must implement a six-year review cycle for the academic 
13.24 	standards and related benchmarks in arts beginning in the 2017-2018 school year.
13.25 	(g) School districts and charter schools must revise and align local academic 
13.26 	standards and high school graduation requirements in health, physical education, world 
13.27 	languages, and career and technical education to require students to complete the revised 
13.28 	standards beginning in a school year determined by the school district or charter school. 
13.29 	School districts and charter schools must formally establish a periodic review cycle for 
13.30 	the academic standards and related benchmarks in health, physical education, world 
13.31 	languages, and career and technical education.

13.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.33 	Sec. 3. Minnesota Statutes 2004, section 120B.024, is amended to read:
13.34 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
14.1 	Students beginning 9th grade in the 2004-2005 school year and later must 
14.2 	successfully complete the following high school level course credits for graduation:
14.3 	(1) four credits of language arts;
14.4 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
14.5 	and probability sufficient to satisfy the academic standard and beginning in the 2008-2009 
14.6 	school year for students scheduled to graduate in the 2012-2013 school year or later, one 
14.7 	algebra II credit or its equivalent;
14.8 	(3) three credits of science, including at least one credit in biology and for the 
14.9 	2010-2011 school year and later, one credit in chemistry;
14.10 	(4) three and one-half credits of social studies, encompassing at least United 
14.11 	States history, geography, government and citizenship, world history, and economics or 
14.12 	three credits of social studies encompassing at least United States history, geography, 
14.13 	government and citizenship, and world history, and one-half credit of economics taught in 
14.14 	a school's social studies or business department;
14.15 	(5) one credit in the arts; and
14.16 	(6) a minimum of seven elective course credits.
14.17 	A course credit is equivalent to a student successfully completing an academic 
14.18 	year of study or a student mastering the applicable subject matter, as determined by the 
14.19 	local school district.

14.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.21 	Sec. 4. Minnesota Statutes 2005 Supplement, section 121A.53, subdivision 1, is 
14.22 	amended to read:
14.23 		Subdivision 1.Exclusions and expulsions. The school board must report through 
14.24 	the department electronic reporting system each exclusion or,  expulsion, or other removal 
14.25 	for greater than 15 consecutive days taken in lieu of an exclusion or expulsion  within 30 
14.26 	days of the effective date of the action to the commissioner of education. This report must 
14.27 	include a statement of alternative educational services given the pupil and the reason for, 
14.28 	the effective date, and the duration of the exclusion or expulsion. The report must also 
14.29 	include the student's age, grade, gender, race, and special education status.

14.30 	Sec. 5. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, is 
14.31 	amended to read:
14.32 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
14.33 	academic credit for completing the requirements of an online learning course or program. 
14.34 	Secondary credits granted to an online learning student must be counted toward the 
15.1 	graduation and credit requirements of the enrolling district. The enrolling district must 
15.2 	apply the same graduation requirements to all students, including online learning students, 
15.3 	and must continue to provide nonacademic services to online learning students. If a 
15.4 	student completes an online learning course or program that meets or exceeds a graduation 
15.5 	standard or grade progression requirement at the enrolling district, that standard or 
15.6 	requirement is met. The enrolling district must use the same criteria for accepting online 
15.7 	learning credits or courses as it does for accepting credits or courses for transfer students 
15.8 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
15.9 	contact time of an online learning student in proportion to the number of online learning 
15.10 	courses the student takes from an online learning provider that is not the enrolling district.
15.11 	(b) An online learning student may:
15.12 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
15.13 	their equivalent delivered by an online learning provider or the enrolling district;
15.14 	(2) complete course work at a grade level that is different from the student's current 
15.15 	grade level; and
15.16 	(3) enroll in additional courses with the online learning provider under a separate 
15.17 	agreement that includes terms for payment of any tuition or course fees.
15.18 	(c) A student with a disability may enroll in an online learning course or program 
15.19 	if the student's IEP team determines that online learning is appropriate education for 
15.20 	the student.
15.21 	(d)(c) An online learning student has the same access to the computer hardware 
15.22 	and education software available in a school as all other students in the enrolling district. 
15.23 	An online learning provider must assist an online learning student whose family qualifies 
15.24 	for the education tax credit under section 290.0674 to acquire computer hardware and 
15.25 	educational software for online learning purposes.
15.26 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
15.27 	Such online learning does not generate online learning funds under this section. An 
15.28 	enrolling district that offers online learning only to its enrolled students is not subject 
15.29 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
15.30 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
15.31 	online learning from an enrolling district. The delivery of instruction occurs when the 
15.32 	student interacts with the computer or the teacher and receives ongoing assistance and 
15.33 	assessment of learning. The instruction may include curriculum developed by persons 
15.34 	other than a teacher with a Minnesota license.
15.35 	(f)(e) An online learning provider that is not the enrolling district is subject to 
15.36 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
16.1 	Minnesota license must assemble and deliver instruction to online learning students. The 
16.2 	delivery of instruction occurs when the student interacts with the computer or the teacher 
16.3 	and receives ongoing assistance and assessment of learning. The instruction may include 
16.4 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
16.5 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
16.6 	instruct more than 40 students in any one online learning course or program.

16.7 	Sec. 6. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
16.8 		Subd. 16.Transportation. (a) By July 1 of each year, a charter schoolA charter 
16.9 	school by March 1 of each fiscal year after its first fiscal year of operation and a charter 
16.10 	school by July 1 of its first fiscal year of operation must notify the district in which the 
16.11 	school is located and the Department of Education if it will provide transportation for 
16.12 	pupils enrolled in the schoolits own transportation or use the transportation services of the 
16.13 	district in which it is located  for the fiscal year.
16.14 	(b) If a charter school elects to provide transportation for pupils, the transportation 
16.15 	must be provided by the charter school within the district in which the charter school is 
16.16 	located. The state must pay transportation aid to the charter school according to section  
16.17 	124D.11, subdivision 2. 
16.18 	For pupils who reside outside the district in which the charter school is located, the 
16.19 	charter school is not required to provide or pay for transportation between the pupil's 
16.20 	residence and the border of the district in which the charter school is located. A parent 
16.21 	may be reimbursed by the charter school for costs of transportation from the pupil's 
16.22 	residence to the border of the district in which the charter school is located if the pupil is 
16.23 	from a family whose income is at or below the poverty level, as determined by the federal 
16.24 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
16.25 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
16.26 	more than 250 miles per week.
16.27 	At the time a pupil enrolls in a charter school, the charter school must provide the 
16.28 	parent or guardian with information regarding the transportation.
16.29 	(c) If a charter school does not elect to provide transportation, transportation for 
16.30 	pupils enrolled at the school must be provided by the district in which the school is 
16.31 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
16.32 	pupil residing in the same district in which the charter school is located. Transportation 
16.33 	may be provided by the district in which the school is located, according to sections  
16.34 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
16.35 	district. If the district provides the transportation, the scheduling of routes, manner and 
17.1 	method of transportation, control and discipline of the pupils, and any other matter relating 
17.2 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
17.3 	control, and management of the district. 

17.4 	Sec. 7. Minnesota Statutes 2004, section 124D.61, is amended to read:
17.5 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
17.6 	A district which receives aid pursuant to section  124D.65 must comply with that 
17.7 	enrolls one or more children of limited English proficiency must implement an educational 
17.8 	program that includes at a minimum the following program requirements: 
17.9 	(1) identification and reclassification criteria for children of limited English 
17.10 	proficiency and program entrance and exit criteria for children with limited English 
17.11 	proficiency must be documented by the district, applied uniformly to children of limited 
17.12 	English proficiency, and made available to parents and other stakeholders upon request;
17.13 	(2) a written plan of services that describes programming by English proficiency 
17.14 	level made available to parents upon request. The plan must articulate the amount and 
17.15 	scope of service offered to children of limited English proficiency through an educational 
17.16 	program for children of limited English proficiency;
17.17 	(3) professional development opportunities for ESL, bilingual education, 
17.18 	mainstream, and all staff working with children of limited English proficiency which are: 
17.19 	(i) coordinated with the district's professional development activities; (ii) related to the 
17.20 	needs of children of limited English proficiency; and (iii) ongoing;
17.21 	(4) to the extent possible, the district must avoid isolating children of limited English 
17.22 	proficiency for a substantial part of the school day; and
17.23 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
17.24 	education, permit pupils of limited English proficiency shall be permitted to participate 
17.25 	fully and on an equal basis with their contemporaries in public school classes provided 
17.26 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
17.27 	program for limited English proficient students an equal and meaningful opportunity to 
17.28 	participate fully with other pupils in all extracurricular activities.

17.29 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 81, is amended to 
17.30 	read:
17.31 	Sec. 81.  BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
17.32 	AUTHORITY.
17.33 	
18.1 	On or before June 30, 2007, the Board of School  Administrators may adopt 
18.2 	expedited rules under Minnesota  Statutes, section 14.389, to reflect the changes in duties, 
18.3 	responsibilities, and roles of school administrators, and to make technical revisions and  
18.4 	clarifications to Minnesota Rules, chapter 3512.  

18.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.6 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
18.7 	13, is amended to read:
18.8 	
18.9 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
18.10 	students' advanced placement and  international baccalaureate examination fees under 
18.11 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
18.12 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
18.13 	subdivision 1:  

18.14		$
	4,500,000
	.....
	2006
	
18.15		$
	4,500,000
	.....
	2007
	
18.16 	
18.17 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
18.18 	each year and the international  baccalaureate program shall receive 25 percent of the  
18.19 	appropriation each year.  The department, in consultation with  representatives of the 
18.20 	advanced placement and international  baccalaureate programs selected by the Advanced 
18.21 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
18.22 	the expenditures each year for examination fees and  training and support programs for 
18.23 	each program.  
18.24 	
18.25 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
18.26 	$500,000 each year is for teachers to  attend subject matter summer training programs 
18.27 	and follow-up  support workshops approved by the advanced placement or  international 
18.28 	baccalaureate programs.  The amount of the subsidy  for each teacher attending an 
18.29 	advanced placement or  international baccalaureate summer training program or workshop 
18.30 	shall be the same.  The commissioner shall determine the payment  process and the amount 
18.31 	of the subsidy.Teachers shall apply for teacher training scholarships to prepare for 
18.32 	teaching in the advanced placement or international baccalaureate program. Any reserved 
18.33 	funding not expended for teacher training may be used for exam fees and other support 
18.34 	programs for each program.
19.1 	
19.2 	(d) The commissioner shall pay all examination fees for all  students of low-income 
19.3 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
19.4 	of available  appropriations shall also pay examination fees for students  sitting for an 
19.5 	advanced placement examination, international  baccalaureate examination, or both.  
19.6 	
19.7 	Any balance in the first year does not cancel but is  available in the second year.  
19.8 	

19.9 	EFFECTIVE DATE.  This section is effective the day following final enactment.

19.10 	Sec. 10. SCIENCE TEACHERS.
 19.11 	(a) A science teacher holding a Minnesota professional license in grades 7 through 
19.12 	12 or 9 through 12 who receives a qualifying score on the appropriate Praxis II test in a 
19.13 	grade 9 through 12 science field other than the currently licensed science field must be 
19.14 	licensed to teach in the new subject area. The qualifying scores are the same scores used 
19.15 	for new science teachers established by the Board of Teaching. The science teacher who 
19.16 	seeks licensure in another science subject area under this paragraph is responsible for 
19.17 	the costs of the required testing.
19.18 	(b) For the purposes of paragraph (a), science subject areas include chemistry, 
19.19 	physics, biology, and earth and space science.
19.20 	(c) By December 31, 2010, the Department of Education and Board of Teaching 
19.21 	must submit a report, including at least the effects of this section on science teacher quality 
19.22 	and developing highly qualified teachers, to the committees of the house of representatives 
19.23 	and senate having jurisdiction over kindergarten through grade 12 education.

19.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

19.25 	Sec. 11. 2006 SCHOOL ACCOUNTABILITY REPORT.
 19.26 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
19.27 	Department of Education may delay the release to the public and the posting of the 2006 
19.28 	school performance report cards and adequate yearly progress data on its public Web 
19.29 	site to no later than November 30, 2006.

20.1 	ARTICLE 3
20.2 	SPECIAL PROGRAMS

20.3 	Section 1. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to 
20.4 	read:
20.5 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
20.6 	blindness, visual disability, speech or language impairment, physical handicap, other 
20.7 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
20.8 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
20.9 	needs special instruction and services, as determined by the standards of the commissioner, 
20.10 	is a child with a disability. In addition, every child under age three, and at local district 
20.11 	discretion from age three to age seven, who needs special instruction and services, as 
20.12 	determined by the standards of the commissioner, because the child has a substantial delay 
20.13 	or has an identifiable physical or mental condition known to hinder normal development is 
20.14 	a child with a disability.

20.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.16 	Sec. 2. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, is 
20.17 	amended to read:
20.18 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
20.19 	when a school district provides instruction and services outside the district of residence, 
20.20 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
20.21 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
20.22 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
20.23 	of (1) the actual cost of providing special instruction and services to the child including 
20.24 	a proportionate amount for special transportation and unreimbursed building lease and 
20.25 	debt service costs for facilities used primarily for special education, plus (2) the amount 
20.26 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
20.27 	amount of special education aid for children with a disability received on behalf of that 
20.28 	child, minus (4) if the pupil receives special instruction and services outside the regular 
20.29 	classroom for more than 60 percent of the school day, the amount of general education 
20.30 	revenue and referendum aid, excluding portions attributable to district and school 
20.31 	administration, district support services, operations and maintenance, capital expenditures, 
20.32 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
20.33 	special instruction inand services outside  the regular classroom. If the boards involved 
21.1 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
21.2 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
21.3 	request a written statement from each board, giving each board at least ten days' notice, 
21.4 	and after the hearing or review of the written statements the commissioner must make an 
21.5 	order fixing the tuition rate, which is binding on both school districts. General education 
21.6 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
21.7 	district's average general education and referendum revenue per adjusted pupil unit.
21.8 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
21.9 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
21.10 	of residence, excluding a pupil for whom an adjustment to special education aid is 
21.11 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
21.12 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
21.13 	cost of providing special instruction and services to the pupil, including a proportionate 
21.14 	amount for special transportation and unreimbursed building lease and debt service costs 
21.15 	for facilities used primarily for special education, plus (2) the amount of general education 
21.16 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
21.17 	education aid for children with a disability received on behalf of that child, minus (4) if the 
21.18 	pupil receives special instruction and services outside the regular classroom for more than 
21.19 	60 percent of the school day, the amount of general education revenue and referendum 
21.20 	aid, excluding portions attributable to district and school administration, district support 
21.21 	services, operations and maintenance, capital expenditures, and pupil transportation, 
21.22 	attributable to that pupil for the portion of time the pupil receives special  instruction in
21.23 	and services outside  the regular classroom. General education revenue and referendum 
21.24 	aid attributable to a pupil must be calculated using the resident district's average general 
21.25 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
21.26 	paid to the district or cooperative providing special instruction and services for the pupil 
21.27 	must be increased by the amount of the reduction in the aid paid to the resident district. 
21.28 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
21.29 	7, shall be recognized and reported as revenues and expenditures on the resident school 
21.30 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
21.31 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
21.32 	shall be made to other state aid due to the district.
21.33 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
21.34 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
21.35 	receive special education and related services, an intermediate district, or a special 
21.36 	education cooperative may apply to the commissioner for authority to charge the resident 
22.1 	district an additional amount to recover any remaining unreimbursed costs of serving 
22.2 	pupils with a disability. The application must include a description of the costs and the 
22.3 	calculations used to determine the unreimbursed portion to be charged to the resident 
22.4 	district. Amounts approved by the commissioner under this paragraph must be included 
22.5 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
22.6 	subdivision 7, paragraph (d) or (e), as applicable.

22.7 	EFFECTIVE DATE.  This section is effective the day following final enactment.

22.8 	Sec. 3. Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:
22.9 		Subd. 11.Interagency child find systems. "Interagency child find systems" 
22.10 	means activities developed on an interagency basis with the involvement of interagency 
22.11 	early intervention committees and other relevant community groups using rigorous 
22.12 	standards  to actively seek out, identify, and refer infants and young children, with, or at 
22.13 	risk of, disabilities, and their families, including a child under the age of three who: (1) 
22.14 	is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by 
22.15 	illegal substance abuse or withdrawal symptoms resulting from prenatal drug exposure, to 
22.16 	reduce children's need for future services.

22.17 	Sec. 4. Minnesota Statutes 2004, section 125A.29, is amended to read:
22.18 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
22.19 	BOARDS.
22.20 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
22.21 	provide, and pay for appropriate services, and to facilitate payment for services from public 
22.22 	and private sources. Appropriate services for children eligible under section  125A.02 must 
22.23 	be determined in consultation with parents, physicians, and other educational, medical, 
22.24 	health, and human services providers. The services provided must be in conformity with:
22.25 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
22.26 	the infant's or toddler's  family,including:
22.27 	(i) American Indian infants and toddlers with disabilities and their families residing 
22.28 	on a reservation geographically located in the state;
22.29 	(ii) infants and toddlers with disabilities who are homeless children and their 
22.30 	families; and
22.31 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
22.32 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
22.33 	eligible child ages three through four. 
23.1 	(b) Appropriate services include family education and counseling, home visits, 
23.2 	occupational and physical therapy, speech pathology, audiology, psychological services, 
23.3 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
23.4 	and related costs, social work, vision services, case management including service 
23.5 	coordination under section  125A.33, medical services for diagnostic and evaluation 
23.6 	purposes, early identification, and screening, assessment, and health services necessary to 
23.7 	enable children with disabilities to benefit from early intervention services. 
23.8 	(c) School and county boards shall coordinate early intervention services. In the 
23.9 	absence of agreements established according to section  125A.39, service responsibilities 
23.10 	for children birth through age two are as follows: 
23.11 	(1) school boards must provide, pay for, and facilitate payment for special education 
23.12 	and related services required under sections  125A.05 and  125A.06; 
23.13 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
23.14 	services of social work, psychology, transportation and related costs, nursing, respite, and 
23.15 	nutrition services not required under clause (1).
23.16 	(d) School and county boards may develop an interagency agreement according 
23.17 	to section  125A.39 to establish agency responsibility that assures early intervention 
23.18 	services are coordinated, provided, paid for, and that payment is facilitated from public 
23.19 	and private sources. 
23.20 	(e) County and school boards must jointly determine the primary agency in this 
23.21 	cooperative effort and must notify the commissioner of the state lead agency of their 
23.22 	decision.

23.23 	Sec. 5. Minnesota Statutes 2004, section 125A.30, is amended to read:
23.24 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
23.25 	(a) A school district, group of districts, or special education cooperative, in 
23.26 	cooperation with the health and human service agencies located in the county or counties 
23.27 	in which the district or cooperative is located, must establish an Interagency Early 
23.28 	Intervention Committee for children with disabilities under age five and their families 
23.29 	under this section, and for children with disabilities ages three to 22 consistent with 
23.30 	the requirements under sections  125A.023 and  125A.027. Committees must include 
23.31 	representatives of local health, education, and county human service agencies, county 
23.32 	boards, school boards, early childhood family education programs, Head Start, parents of 
23.33 	young children with disabilities under age 12, child care resource and referral agencies, 
23.34 	school readiness programs, current service providers, and may also include representatives 
24.1 	from other private or public agencies and school nurses. The committee must elect a chair 
24.2 	from among its members and must meet at least quarterly. 
24.3 	(b) The committee must develop and implement interagency policies and procedures 
24.4 	concerning the following ongoing duties:
24.5 	(1) develop public awareness systems designed to inform potential recipient 
24.6 	families, especially parents with premature infants, or infants with other physical risk 
24.7 	factors associated with learning or development complications, of available programs 
24.8 	and services;
24.9 	(2) to reduce families' need for future services, and especially parents with premature 
24.10 	infants, or infants with other physical risk factors associated with learning or development 
24.11 	complications, implement interagency child find systems designed to actively seek out, 
24.12 	identify, and refer infants and young children with, or at risk of, disabilities and their 
24.13 	families, including a child under the age of three who: (i) is involved in a substantiated 
24.14 	case of abuse or (ii) is identified as affected by illegal substance abuse or with withdrawal 
24.15 	symptoms resulting from prenatal drug exposure;
24.16 	(3) establish and evaluate the identification, referral, child and family assessment 
24.17 	systems, procedural safeguard process, and community learning systems to recommend, 
24.18 	where necessary, alterations and improvements;
24.19 	(4) assure the development of individualized family service plans for all eligible 
24.20 	infants and toddlers with disabilities from birth through age two, and their families, and 
24.21 	individual education plans and individual service plans when necessary to appropriately 
24.22 	serve children with disabilities, age three and older, and their families and recommend 
24.23 	assignment of financial responsibilities to the appropriate agencies;
24.24 	(5) encourage agencies to develop individual family service plans for children with 
24.25 	disabilities, age three and older;
24.26 	(6) implement a process for assuring that services involve cooperating agencies at all 
24.27 	steps leading to individualized programs;
24.28 	(7)(6)  facilitate the development of a transitional plan if a service provider is not 
24.29 	recommended to continue to provide services;
24.30 	(8)(7)  identify the current services and funding being provided within the 
24.31 	community for children with disabilities under age five and their families;
24.32 	(9)(8) develop a plan for the allocation and expenditure of additional state and 
24.33 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
24.34 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
24.35 	seq. (Chapter I, Public Law 89-313); and
25.1 	(10)(9)  develop a policy that is consistent with section  13.05, subdivision 9, and 
25.2 	federal law to enable a member of an interagency early intervention committee to allow 
25.3 	another member access to data classified as not public. 
25.4 	(c) The local committee shall also:
25.5 	(1) participate in needs assessments and program planning activities conducted by 
25.6 	local social service, health and education agencies for young children with disabilities and 
25.7 	their families; and
25.8 	(2) review and comment on the early intervention section of the total special 
25.9 	education system for the district, the county social service plan, the section or sections of 
25.10 	the community health services plan that address needs of and service activities targeted 
25.11 	to children with special health care needs, the section on children with special needs in 
25.12 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
25.13 	services for children with special needs, any relevant portions of early childhood education 
25.14 	plans, such as early childhood family education or school readiness, or other applicable 
25.15 	coordinated school and community plans for early childhood programs and services, and 
25.16 	the section of the maternal and child health special project grants that address needs of and 
25.17 	service activities targeted to children with chronic illness and disabilities.

25.18 	Sec. 6. Minnesota Statutes 2004, section 125A.32, is amended to read:
25.19 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN.
25.20 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
25.21 	include:
25.22 	(1) a parent or parents of the child;
25.23 	(2) other family members, as requested by the parent, if feasible to do so;
25.24 	(3) an advocate or person outside of the family, if the parent requests that the 
25.25 	person participate;
25.26 	(4) the service coordinator who has been working with the family since the 
25.27 	initial referral, or who has been designated by the public agency to be responsible for 
25.28 	implementation of the IFSP and coordination with other agencies including transition 
25.29 	services; and
25.30 	(5) a person or persons involved in conducting evaluations and assessments.
25.31 	(b) The IFSP must include:
25.32 	(1) information about the child's developmental status;
25.33 	(2) family information, with the consent of the family;
25.34 	(3) measurable results or major outcomes expected to be achieved by the child 
25.35 	and the family, with the family's assistance, that include thedevelopmentally appropriate 
26.1 	preliteracy and language skills, and criteria, procedures, and timelines related to the results 
26.2 	or outcomes;
26.3 	(4) specific early intervention services based on peer-reviewed research, to the 
26.4 	extent practicable, necessary to meet the unique needs of the child and the family to 
26.5 	achieve the outcomes;
26.6 	(5) payment arrangements, if any;
26.7 	(6) medical and other services that the child needs, but that are not required under 
26.8 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
26.9 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
26.10 	paying for those services and the steps that will be taken to secure those services through 
26.11 	public or private sources;
26.12 	(7) dates and duration of early intervention services;
26.13 	(8) name of the service coordinator;
26.14 	(9) steps to be taken to support a child's transition from early intervention services to 
26.15 	other appropriate services, including convening a transition conference at least 90 days, or 
26.16 	at the discretion of all parties, not more than nine months before the child is eligible for 
26.17 	preschool services; and
26.18 	(10) signature of the parent and authorized signatures of the agencies responsible 
26.19 	for providing, paying for, or facilitating payment, or any combination of these, for early 
26.20 	intervention services.

26.21 	Sec. 7. Minnesota Statutes 2004, section 125A.33, is amended to read:
26.22 	125A.33 SERVICE COORDINATION.
26.23 	(a) The team developing the IFSP under section  125A.32 must select a service 
26.24 	coordinator to carry out service coordination activities on an interagency basis. Service 
26.25 	coordination must actively promote a family's capacity and competency to identify, 
26.26 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
26.27 	needs. Service coordination activities include: 
26.28 	(1) coordinating the performance of evaluations and assessments;
26.29 	(2) facilitating and participating in the development, review, and evaluation of 
26.30 	individualized family service plans;
26.31 	(3) assisting families in identifying available service providers;
26.32 	(4) coordinating and monitoring the delivery of available services;
26.33 	(5) informing families of the availability of advocacy services;
26.34 	(6) coordinating with medical, health, and other service providers;
27.1 	(7) facilitating the development of a transition plan at least 90 days before the time 
27.2 	the child is no longer eligible for early intervention services, or at the discretion of all 
27.3 	parties, not more than nine months before the child is eligible for preschool services, 
27.4 	 if appropriate;
27.5 	(8) managing the early intervention record and submitting additional information to 
27.6 	the local primary agency at the time of periodic review and annual evaluations; and
27.7 	(9) notifying a local primary agency when disputes between agencies impact service 
27.8 	delivery required by an IFSP.
27.9 	(b) A service coordinator must be knowledgeable about children and families 
27.10 	receiving services under this section, requirements of state and federal law, and services 
27.11 	available in the interagency early childhood intervention system.

27.12 	Sec. 8. Minnesota Statutes 2004, section 125A.48, is amended to read:
27.13 	125A.48 STATE INTERAGENCY AGREEMENT.
27.14 	(a) The commissioners of the Departments of Education, Health, and Human 
27.15 	Services must enter into an agreement to implement this section and Part H C, Public 
27.16 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
27.17 	303.523, to promote the development and implementation of interagency, coordinated, 
27.18 	multidisciplinary state and local early childhood intervention service systems for serving 
27.19 	eligible young children with disabilities, birth through age two, and their families and 
27.20 	to ensure the meaningful involvement of underserved groups, including children with 
27.21 	disabilities from minority, low-income, homeless, and rural families, and children with 
27.22 	disabilities who are wards of the state. The agreement must be reviewed annually. 
27.23 	(b) The state interagency agreement must outline at a minimum the conditions, 
27.24 	procedures, purposes, and responsibilities of the participating state and local agencies 
27.25 	for the following:
27.26 	(1) membership, roles, and responsibilities of a state interagency committee for 
27.27 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
27.28 	108-446, and other state allocations for this program;
27.29 	(2) child find;
27.30 	(3) establishment of local interagency agreements;
27.31 	(4) review by a state interagency committee of the allocation of additional state and 
27.32 	federal early intervention funds by local agencies;
27.33 	(5) fiscal responsibilities of the state and local agencies;
27.34 	(6) intraagency and interagency dispute resolution;
27.35 	(7) payor of last resort;
28.1 	(8) maintenance of effort;
28.2 	(9) procedural safeguards, including mediation;
28.3 	(10) complaint resolution;
28.4 	(11) quality assurance;
28.5 	(12) data collection;
28.6 	(13) an annual summary to the state Interagency Coordinating Council regarding 
28.7 	conflict resolution activities including disputes, due process hearings, and complaints; and
28.8 	(14) other components of the state and local early intervention system consistent 
28.9 	with Public Law 102-119 108-446.
28.10 	Written materials must be developed for parents, IEIC's, and local service providers 
28.11 	that describe procedures developed under this section as required by Code of Federal 
28.12 	Regulations, title 34, section 303.

28.13 	Sec. 9. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
28.14 		Subdivision 1.Approval of education programs. The commissioner shall 
28.15 	approve education programs for placement of children and youth in care and treatment
28.16 	residential facilities including detention centers, before being licensed by the Department 
28.17 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
28.18 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
28.19 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
28.20 	federal education laws including the Individuals with Disabilities Education Act (IDEA). 
28.21 	This section applies only to placements in residential facilities licensed by the Department 
28.22 	of Human Services or the Department of Corrections.

28.23 	Sec. 10. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
28.24 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
28.25 	residential facility is located must provide education services, including special education 
28.26 	if eligible, to all students placed in a facility for care and treatment.
28.27 	(b) For education programs operated by the Department of Corrections, the 
28.28 	providing district shall be the Department of Corrections. For students remanded to the 
28.29 	commissioner of corrections, the providing and resident district shall be the Department 
28.30 	of Corrections.
28.31 	(c) Placement for care and treatment does not automatically make a student eligible 
28.32 	for special education. A student placed in a care and treatment facility is eligible for 
28.33 	special education under state and federal law including the Individuals with Disabilities 
28.34 	Education Act under United States Code, title 20, chapter 33.

29.1 	Sec. 11. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
29.2 		Subd. 5.Education programs for students placed in residential facilities for 
29.3 	care and treatment. (a) When a student is placed in a care and treatment facility
29.4 	approved under this section  that has an on-site education program, the providing district, 
29.5 	upon notice from the care and treatment facility, must contact the resident district within 
29.6 	one business day to determine if a student has been identified as having a disability, and 
29.7 	to request at least the student's transcript, and for students with disabilities, the most 
29.8 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
29.9 	student has been identified as a student with a disability. The resident district must send a 
29.10 	facsimile copy to the providing district within two business days of receiving the request.
29.11 	(b) If a student placed for care and treatment  under this section has been identified as 
29.12 	having a disability and has an individual education plan in the resident district:
29.13 	(1) the providing agency must conduct an individualized education plan meeting 
29.14 	to reach an agreement about continuing or modifying special education services in 
29.15 	accordance with the current individualized education plan goals and objectives and to 
29.16 	determine if additional evaluations are necessary; and
29.17 	(2) at least the following people shall receive written notice or documented phone 
29.18 	call to be followed with written notice to attend the individualized education plan meeting:
29.19 	(i) the person or agency placing the student;
29.20 	(ii) the resident district;
29.21 	(iii) the appropriate teachers and related services staff from the providing district;
29.22 	(iv) appropriate staff from the care and treatmentresidential facility;
29.23 	(v) the parents or legal guardians of the student; and
29.24 	(vi) when appropriate, the student.
29.25 	(c) For a student who has not been identified as a student with a disability, a 
29.26 	screening must be conducted by the providing districts as soon as possible to determine 
29.27 	the student's educational and behavioral needs and must include a review of the student's 
29.28 	educational records.

29.29 	Sec. 12. Minnesota Statutes 2004, section 125A.515, subdivision 6, is amended to read:
29.30 		Subd. 6.Exit report summarizing educational progress. If a student has been 
29.31 	placed in a care and treatment facility under this section for 15 or more business days, the 
29.32 	providing district must prepare an exit report summarizing the regular education, special 
29.33 	education, evaluation, educational progress, and service information and must send the 
29.34 	report to the resident district and the next providing district if different, the parent or 
30.1 	legal guardian, and any appropriate social service agency. For students with disabilities, 
30.2 	this report must include the student's IEP.

30.3 	Sec. 13. Minnesota Statutes 2004, section 125A.515, subdivision 7, is amended to read:
30.4 		Subd. 7.Minimum educational services required. When a student is placed in a 
30.5 	facility approved under this section, at a minimum, the providing district is responsible for:
30.6 	(1) the education necessary, including summer school services, for a student who is 
30.7 	not performing at grade level as indicated in the education record or IEP; and
30.8 	(2) a school day, of the same length as the school day of the providing district, unless 
30.9 	the unique needs of the student, as documented through the IEP or education record in 
30.10 	consultation with treatment providers, requires an alteration in the length of the school day.

30.11 	Sec. 14. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
30.12 		Subd. 9.Reimbursement for education services. (a) Education services 
30.13 	provided to students who have been placed for care and treatmentunder this section are 
30.14 	reimbursable in accordance with special education and general education statutes.
30.15 	(b) Indirect or consultative services provided in conjunction with regular education 
30.16 	prereferral interventions and assessment provided to regular education students suspected 
30.17 	of being disabled and who have demonstrated learning or behavioral problems in a 
30.18 	screening are reimbursable with special education categorical aids.
30.19 	(c) Regular education, including screening, provided to students with or without 
30.20 	disabilities is not reimbursable with special education categorical aids.

30.21 	Sec. 15. Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to 
30.22 	read:
30.23 		Subd. 10.Students unable to attend school but not placed in care and treatment 
30.24 	facilities covered under this section. Students who are absent from, or predicted to be 
30.25 	absent from, school for 15 consecutive or intermittent days, and placed at home or in 
30.26 	facilities not licensed by the Departments Department of Corrections or Human Services 
30.27 	are not students placed for care and treatment entitled to regular and special education 
30.28 	services, consistent with applicable law and rule. These students include students with 
30.29 	and without disabilities who are home due to accident or illness, in a hospital or other 
30.30 	medical facility, or in a day treatment center. These students are entitled to education 
30.31 	services through their district of residence.

30.32 	Sec. 16. Minnesota Statutes 2004, section 125A.63, subdivision 4, is amended to read:
31.1 		Subd. 4.Advisory committees. The Special Education Advisory Council
31.2 	commissioner  shall establish an advisory committee for each resource center. The 
31.3 	advisory committees shall develop recommendations regarding the resource centers and 
31.4 	submit an annual report to the commissioner on the form and in the manner prescribed by 
31.5 	the commissioner.

31.6 	Sec. 17. Minnesota Statutes 2004, section 125A.75, subdivision 1, is amended to read:
31.7 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
31.8 	actually expended by a district, based on mileage, for necessary travel of essential 
31.9 	personnel providing home-based services to children with a disability under age five 
31.10 	and their families.

31.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

31.12 	Sec. 18. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
31.13 	"BLIND" AND "BLINDNESS."
 31.14 	The commissioner of education, where appropriate, must incorporate references to 
31.15 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
31.16 	part 3525.1345, and amend the rule title to include the word "blind."

31.17 	EFFECTIVE DATE. This section is effective the day following final enactment. 

31.18 	Sec. 19. DEPARTMENT OF EDUCATION RULES.
 31.19 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
31.20 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

31.21 	Sec. 20.  REPEALER.
 31.22 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
31.23 	repealed.

31.24 	ARTICLE 4
31.25 	ACCOUNTING

31.26 	Section 1. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
31.27 		Subdivision 1.Budgets. By October 1 November 30, every board must 
31.28 	publish revenue and expenditure budgets for the current year and the actual revenues, 
31.29 	expenditures, fund balances for the prior year and projected fund balances for the current 
31.30 	year in a form prescribed by the commissioner. The forms prescribed must be designed so 
32.1 	that year to year comparisons of revenue, expenditures and fund balances can be made. 
32.2 	These budgets, reports of revenue, expenditures and fund balances must be published in 
32.3 	a qualified newspaper of general circulation in the district or on the district's official 
32.4 	Web site. If published on the district's official Web site, the district must also publish an 
32.5 	announcement in a qualified newspaper of general circulation in the district that includes 
32.6 	the Internet address where the information has been posted.

32.7 	ARTICLE 5
32.8 	SELF-SUFFICIENCY AND LIFELONG LEARNING

32.9 	Section 1. Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to 
32.10 	read:
32.11 		Subd. 4.First prior program year. "First prior program year" means the period 
32.12 	from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year
32.13 	specific time period defined by the commissioner that aligns to a program academic year.

32.14 	Sec. 2. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
32.15 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
32.16 	day or evening program offered by a district that is for people over 16 years of age who do 
32.17 	not attend an elementary or secondary school. The program offers academic instruction 
32.18 	necessary to earn a high school diploma or equivalency certificate.
32.19 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
32.20 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
32.21 	based on a family's income, but must waive the fee for participants who are under the 
32.22 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
32.23 	all socioeconomic levels to participate in the program. A program may charge a security 
32.24 	deposit to assure return of materials, supplies, and equipment.
32.25 	(c) Each approved adult basic education program must develop a memorandum of 
32.26 	understanding with the local workforce development centers located in the approved 
32.27 	program's service delivery area. The memorandum of understanding must describe how 
32.28 	the adult basic education program and the workforce development centers will cooperate 
32.29 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
32.30 	(d) Adult basic education aid must be spent for adult basic education purposes as 
32.31 	specified in sections  124D.518 to  124D.531. 
32.32 	(e) A state-approved adult basic education program must count and submit student 
32.33 	contact hours for a program that offers high school credit toward an adult high school 
33.1 	diploma according to student eligibility requirements and competency demonstration 
33.2 	requirements established by the commissioner.

33.3 	ARTICLE 6
33.4 	EARLY CHILDHOOD EDUCATION

33.5 	Section 1. Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:
33.6 		Subdivision 1.Department of Education. The Department of Education is the 
33.7 	state agency responsible for administering the Head Start program. The commissioner 
33.8 	of education may make grantsshall allocate funds according to the formula in section 
33.9 	119A.52 to public or private nonprofit agencies for the purpose of providing supplemental 
33.10 	funds for the federal Head Start program.

33.11 	Sec. 2. Minnesota Statutes 2004, section 119A.52, is amended to read:
33.12 	119A.52 DISTRIBUTION OF APPROPRIATION AND PROGRAM 
33.13 	COORDINATION.
33.14 	The commissioner of education must distribute money appropriated for that purpose 
33.15 	to federally designated Head Start program granteesprograms to expand services and to 
33.16 	serve additional low-income children. Money must be allocated to each project Head Start 
33.17 	grantee in existence on the effective date of Laws 1989, chapter 282. Migrant and Indian 
33.18 	reservation granteesprograms must be initially allocated money based on the grantees'
33.19 	programs' share of federal funds. The remaining money must be initially allocated to the 
33.20 	remaining local agencies based equally on the agencies' share of federal funds and on the 
33.21 	proportion of eligible children in the agencies' service area who are not currently being 
33.22 	served. A Head Start grantee must be funded at a per child rate equal to its contracted, 
33.23 	federally funded base level for program accounts 20, 22, and 25 at the start of the fiscal 
33.24 	year. In allocating funds under this paragraph, the commissioner of education must assure 
33.25 	that each Head Start granteeprogram in existence in 1993 is allocated no less funding 
33.26 	in any fiscal year than was allocated to that granteeprogram in fiscal year 1993. The 
33.27 	commissioner may provide additional funding to grantees for start-up costs incurred by 
33.28 	grantees due to the increased number of children to be served. Before paying money to 
33.29 	the grantees programs, the commissioner must notify each granteeprogram of its initial 
33.30 	allocation, how the money must be used, and the number of low-income children that 
33.31 	mustto be served with the allocation based upon the federally funded per-child rate. 
33.32 	Each granteeprogram must present a work plan to the commissioner for approval. The 
33.33 	work plan must include the estimated number of low-income children and families it will 
34.1 	be able to serve, a description of the program design and service delivery area which 
34.2 	meets the needs of and encourages access by low-income working families, a program 
34.3 	design that ensures fair and equitable access to Head Start services for all populations and 
34.4 	parts of the service area, and a plan for coordinating services to maximize assistance 
34.5 	for child care costs available to families under chapter 119B. under section 119A.535. 
34.6 	For any grantee that cannot utilize its full allocation, the commissioner must reduce the 
34.7 	allocation proportionately. Money available after the initial allocations are reduced must 
34.8 	be redistributed to eligible grantees.

34.9 	Sec. 3. Minnesota Statutes 2004, section 119A.53, is amended to read:
34.10 	119A.53 FEDERAL REQUIREMENTS.
34.11 	GranteesPrograms and the commissioner shall comply with federal regulations 
34.12 	governing the federal Head Start program, except for funding for innovative initiatives 
34.13 	under section  119A.52 119A.535 as approved by the commissioner, which may be used to 
34.14 	operate differently than federal Head Start regulations. If a state statute or rule conflicts 
34.15 	with a federal statute or regulation, the state statute or rule prevails. 

34.16 	Sec. 4. [119A.535] APPLICATION REQUIREMENTS.
34.17 	Eligible Head Start organizations must submit a plan to the department for approval 
34.18 	on a form and in the manner prescribed by the commissioner. The plan must include:
34.19 	(1) the estimated number of low-income children and families the program will be 
34.20 	able to serve;
34.21 	(2) a description of the program design and service delivery area which meets the 
34.22 	needs of and encourages access by low-income working families;
34.23 	(3) a program design that ensures fair and equitable access to Head Start services for 
34.24 	all populations and parts of the service area;
34.25 	(4) a plan for coordinating services to maximize assistance for child care costs 
34.26 	available to families under chapter 119B; and
34.27 	(5) identification of regular Head Start, early Head Start, and innovative services 
34.28 	based upon demonstrated needs to be provided.

34.29 	Sec. 5. Minnesota Statutes 2004, section 119A.545, is amended to read:
34.30 	119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
34.31 	PERIODS.
34.32 	The commissioner of education may waive requirements under sections  119A.50
34.33 	to  119A.53 119A.535, for up to nine months after the disaster, for Head Start grantees
35.1 	programs in areas where a federal disaster has been declared under United States Code, 
35.2 	title 42, section 5121, et seq., or the governor has exercised authority under chapter 12. 
35.3 	The commissioner shall notify the chairs of the appropriate senate Family and Early 
35.4 	Childhood Education Budget Division, the senate Education Finance Committee, theand 
35.5 	house Family and Early Childhood Education Finance Division, the house Education 
35.6 	Committee, and the house Ways and Means Committeeof representatives committees ten 
35.7 	days before the effective date of any waiver granted under this section. 

35.8 	Sec. 6. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 5, 
35.9 	is amended to read:
35.10 	
35.11 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
35.12 	section 119A.52:  

35.13		$
	19,100,000
	.....
	2006
	
35.14		$
	19,100,000
	.....
	2007
	
35.15 	
35.16 	Any balance in the first year does not cancel but is available in the second year.

35.17 	Sec. 7.  REPEALER.
 35.18 	Minnesota Statutes 2004, section 119A.51, is repealed.

35.19 	ARTICLE 7
35.20 	STATE AGENCIES

35.21 	Section 1. Minnesota Statutes 2004, section 125A.69, subdivision 3, is amended to 
35.22 	read:
35.23 		Subd. 3.Out-of-state admissions. An applicant from another state who can benefit 
35.24 	from attending either academy may be admitted to the academy if the admission does not 
35.25 	prevent an eligible Minnesota resident from being admitted. The board of the Minnesota 
35.26 	State Academies must obtain reimbursement from the other state for the costs of the 
35.27 	out-of-state admission. The state board may enter into an agreement with the appropriate 
35.28 	authority in the other state for the reimbursement. Money received from another state 
35.29 	must be deposited in the generalspecial revenue  fund and credited to the general operating 
35.30 	account of the academies. The money is appropriated to the academies.

35.31 	EFFECTIVE DATE. This section is effective retroactively from fiscal year 2001.