1.1 	A bill for an act
1.2 	relating to education; providing for early childhood and family and kindergarten 
1.3 	through grade 12 education including general education revenue, education 
1.4 	excellence, special programs, accounting, self-sufficiency and lifelong learning, 
1.5 	and pupil transportation; establishing task forces; requiring reports; providing for 
1.6 	rulemaking;amending Minnesota Statutes 2004, sections 120A.20, subdivision 
1.7 	1; 120A.22, subdivision 3; 120B.023; 120B.024; 120B.36, subdivision 1; 
1.8 	121A.035; 123A.06, subdivision 2; 123B.10, subdivision 1; 123B.77, subdivision 
1.9 	3, by adding a subdivision; 123B.79, by adding a subdivision; 123B.90, 
1.10 	subdivision 2; 123B.91, by adding a subdivision; 124D.02, subdivisions 2, 4; 
1.11 	124D.10, subdivision 16; 124D.518, subdivision 4; 124D.52, subdivision 1; 
1.12 	124D.61; 124D.68, subdivision 3; 125A.02, subdivision 1; 125A.27, subdivision 
1.13 	11; 125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 125A.515, subdivisions 
1.14 	1, 3, 5, 6, 7, 9, 10; 125A.63, subdivision 4; 125A.65, subdivisions 3, 4, 6, 8, 
1.15 	10; 125A.69, subdivision 3; 125A.75, subdivision 1; 125A.76, by adding a 
1.16 	subdivision; 126C.05, subdivision 1; 126C.10, subdivision 6; 126C.44; 127A.41, 
1.17 	subdivision 2; 169.01, subdivision 6; 169.447, subdivision 2; 169.4501, 
1.18 	subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivision 20; 171.321, 
1.19 	subdivision 4; 181.101; 299F.30; Minnesota Statutes 2005 Supplement, sections 
1.20 	120B.131, subdivision 2; 122A.415, subdivisions 1, 3; 123B.76, subdivision 
1.21 	3; 123B.92, subdivision 1; 124D.095, subdivision 4; 124D.68, subdivision 2; 
1.22 	125A.11, subdivision 1; 125A.79, subdivision 1; 126C.10, subdivision 34; 
1.23 	126C.43, subdivision 2; 127A.45, subdivision 10;  Laws 2005, First Special 
1.24 	Session chapter 5, article 2, section 84, subdivision 13; proposing coding for new 
1.25 	law in Minnesota Statutes, chapter 121A; repealing Minnesota Statutes 2004, 
1.26 	sections 120A.20, subdivision 3; 125A.10; 125A.515, subdivision 2; 169.4502, 
1.27 	subdivision 15; 169.4503, subdivisions 17, 18, 26.
1.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29 	ARTICLE 1
1.30 	GENERAL EDUCATION REVENUE

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

2.21 	Sec. 2. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 1, is 
2.22 	amended to read:
2.23 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
2.24 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
2.25 	application approved by the commissioner is eligible for alternative teacher compensation 
2.26 	revenue.
2.27 	(b) For school district and intermediate school district applications, the commissioner 
2.28 	must consider only those applications to participate that are submitted jointly by a 
2.29 	district and the exclusive representative of the teachers. The application must contain an 
2.30 	alternative teacher professional pay system agreement that:
2.31 	(1) implements an alternative teacher professional pay system consistent with 
2.32 	section 122A.414; and
2.33 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
2.34 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
2.35 	district may enter into a contract for a term of two or four years.
3.1 	Alternative teacher compensation revenue for a qualifying school district or site in 
3.2 	which the school board and the exclusive representative of the teachers agree to place 
3.3 	teachers in the district or at the site on the alternative teacher professional pay system 
3.4 	equals $260 times the ratio of the formula allowance for the current fiscal year to the 
3.5 	formula allowance for fiscal year 2007 times the number of pupils enrolled at the district 
3.6 	or site on October 1 of the previous fiscal year. Alternative teacher compensation revenue 
3.7 	for a qualifying intermediate school district must be calculated under section 126C.10, 
3.8 	subdivision 34, paragraphs (a) and (b).
3.9 	(c) For a newly combined or consolidated district, the revenue shall be computed 
3.10 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
3.11 	into the combination or consolidation. The commissioner may adjust the revenue 
3.12 	computed for a site using prior year data to reflect changes attributable to school closings, 
3.13 	school openings, or grade level reconfigurations between the prior year and the current 
3.14 	year.
3.15 	(d) The revenue is available only to school districts, intermediate school districts, 
3.16 	school sites, and charter schools that fully implement an alternative teacher professional 
3.17 	pay system by October 1 of the current school year.
3.18 	(e) The revenue must be maintained in a reserve account within the general fund.

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

4.19 	Sec. 4. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
4.20 		Subd. 2.People to be served. A center shall provide programs for secondary 
4.21 	pupils and adults. A center may also provide programs and services for elementary and 
4.22 	secondary pupils who are not attending the center to assist them in being successful in 
4.23 	school. A center shall use research-based best practices for serving limited English 
4.24 	proficient students and their parents. An individual education plan team may identify a 
4.25 	center as an appropriate placement to the extent a center can provide the student with the 
4.26 	appropriate special education services described in the student's plan. Pupils eligible to 
4.27 	be served are those age five to adults 22 and older who qualify under the graduation 
4.28 	incentives program in section  124D.68, subdivision 2, those enrolled under section 
4.29 	124D.02, subdivision 2, or those pupils who are eligible to receive special education 
4.30 	services under sections  125A.03 to  125A.24, and  125A.65. 

4.31 	Sec. 5. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
4.32 	amended to read:
4.33 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
4.34 	means education site as defined in section 123B.04, subdivision 1.
5.1 	(b) Each district shall maintain separate accounts to identify general fund 
5.2 	expenditures for each building. All expenditures for regular instruction, secondary 
5.3 	vocational instruction, and school administration must be reported to the department 
5.4 	separately for each building. All expenditures for special education instruction, 
5.5 	instructional support services, and pupil support services provided within a specific 
5.6 	building must be reported to the department separately for each building. Salary 
5.7 	expenditures reported by building must reflect actual salaries for staff at the building and 
5.8 	must not be based on districtwide averages. All other general fund expenditures may be 
5.9 	reported by building or on a districtwide basis.
5.10 	(c) The department must annually report information showing school district general 
5.11 	fund expenditures per pupil by program category for each building and estimated school 
5.12 	district general fund revenue generated by pupils attending each building on its Web 
5.13 	site. For purposes of this report:
5.14 	(1) expenditures not reported by building shall be allocated among buildings on a 
5.15 	uniform per pupil basis;
5.16 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
5.17 	4;
5.18 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
5.19 	according to section 126C.10, subdivisions 7 and 8;
5.20 	(4) alternative teacher compensation revenue shall be allocated according to section 
5.21 	122A.415, subdivision 1;
5.22 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
5.23 	basis;
5.24 	(5)(6)  first grade preparedness aid shall be allocated according to section 124D.081;
5.25 	(6)(7)  state and federal special education aid and Title I aid shall be allocated in 
5.26 	proportion to district expenditures for these programs by building; and
5.27 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
5.28 	except that the department may allocate other revenues attributable to specific buildings 
5.29 	directly to those buildings.

5.30 	Sec. 6. Minnesota Statutes 2004, section 124D.02, subdivision 2, is amended to read:
5.31 		Subd. 2.Secondary school programs. The board may permit a person who is over 
5.32 	the age of 21 or who has graduated from high school to enroll as a part-time student in a 
5.33 	class or program at a secondary school if there is space available. In determining if there is 
5.34 	space available, full-time public school students, eligible for free enrollment under section 
5.35 	120A.20, subdivision 1, and shared-time students shall be given priority over students 
6.1 	seeking enrollment pursuant to this subdivision, and students returning to complete a 
6.2 	regular course of study shall be given priority over part-time other students seeking 
6.3 	enrollment pursuant to this subdivision. The following are not prerequisites for enrollment:
6.4 	(1) residency in the school district;
6.5 	(2) United States citizenship; or
6.6 	(3) for a person over the age of 21, a high school diploma or equivalency certificate. 
6.7 	A person may enroll in a class or program even if that person attends evening school, an 
6.8 	adult or continuing education, or a postsecondary educational program or institution.

6.9 	Sec. 7. Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:
6.10 		Subd. 4.Part-time student fee. Notwithstanding the provisions of sections  
6.11 	120A.20 and  123B.37, a board may charge a part-time student enrolled pursuant to 
6.12 	subdivision 2 a reasonable fee for a class or program. 

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

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

7.24 	Sec. 10. Minnesota Statutes 2004, section 125A.65, subdivision 3, is amended to read:
7.25 		Subd. 3.Educational program; tuition. (a) When it is determined pursuant to 
7.26 	section  125A.69, subdivision 1 or 2, that the child is entitled to attend either school, 
7.27 	the board of the Minnesota State Academies must provide the appropriate educational 
7.28 	program for the child. 
7.29 	(b) For fiscal year 2006, the board of the Minnesota State Academies must make a 
7.30 	tuition charge to the child's district of residence for the cost of providing the program. 
7.31 	The amount of tuition charged must not exceed the sum of (1) the general education 
7.32 	revenue formula allowance times the pupil unit weighting factor pursuant to section  
7.33 	126C.05 for that child, for the amount of time the child is in the program, plus (2) if 
7.34 	the child was enrolled at the Minnesota State Academies on October 1 of the previous 
8.1 	fiscal year, the compensatory education revenue attributable to that child under section 
8.2 	126C.10, subdivision 3. The district of the child's residence must pay the tuition and 
8.3 	may claim general education aid for the child. Tuition received by the board of the 
8.4 	Minnesota State Academies, except for tuition for compensatory education revenue under 
8.5 	this paragraph and tuition received under subdivision 4, must be deposited in the state 
8.6 	treasury as provided in subdivision 8. 
8.7 	(c) For fiscal year 2007 and later, the district of the child's residence shall 
8.8 	claim general education revenue for the child, except as provided in this paragraph. 
8.9 	Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education 
8.10 	revenue formula allowance times the pupil unit weighting factor pursuant to section 
8.11 	126C.05 for that child for the amount of time the child is in the program, as adjusted 
8.12 	according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies. 
8.13 	Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory 
8.14 	education revenue under section 126C.10, subdivision 3, attributable to children enrolled at 
8.15 	the Minnesota State Academies on October 1 of the previous fiscal year must be paid to the 
8.16 	Minnesota State Academies. General education aid paid to the Minnesota State Academies 
8.17 	under this paragraph must be credited to their general operation account. Other general 
8.18 	education aid attributable to the child must be paid to the district of the child's residence.

8.19 	Sec. 11. Minnesota Statutes 2004, section 125A.65, subdivision 4, is amended to read:
8.20 		Subd. 4.Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition 
8.21 	charge allowed in subdivision 3, the academies may charge the child's district of residence 
8.22 	for the academy's unreimbursed cost of providing an instructional aide assigned to that 
8.23 	child, after deducting the special education aid under section 125A.76, attributable to the 
8.24 	child, if that aide is required by the child's individual education plan. Tuition received 
8.25 	under this paragraph must be used by the academies to provide the required service.
8.26 	(b) For fiscal year 2007 and later, the special education aid paid to the academies 
8.27 	shall be increased by the academy's unreimbursed cost of providing an instructional 
8.28 	aide assigned to a child, after deducting the special education aid under section 125A.76 
8.29 	attributable to the child, if that aide is required by the child's individual education plan. 
8.30 	Aid received under this paragraph must be used by the academies to provide the required 
8.31 	service.
8.32 	(c) For fiscal year 2007 and later, the special education aid paid to the district of 
8.33 	the child's residence shall be reduced by the amount paid to the academies for district 
8.34 	residents under paragraph (b).
9.1 	(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, 
9.2 	the commissioner shall make an estimated final adjustment payment to the Minnesota 
9.3 	State Academies for general education aid and special education aid for the prior fiscal 
9.4 	year by August 15.

9.5 	Sec. 12. Minnesota Statutes 2004, section 125A.65, subdivision 6, is amended to read:
9.6 		Subd. 6.Tuition reduction. Notwithstanding the provisions of subdivisions 3 and 
9.7 	5, the board of the Minnesota State Academies may agree to make a tuition charge, or 
9.8 	receive an aid adjustment, as applicable,  for less than the amount specified in subdivision 
9.9 	3 for pupils attending the applicable school who are residents of the district where the 
9.10 	institution is located and who do not board at the institution, if that district agrees to make 
9.11 	a tuition charge to the board of the Minnesota State Academies for less than the amount 
9.12 	specified in subdivision 5 for providing appropriate educational programs to pupils 
9.13 	attending the applicable school.

9.14 	Sec. 13. Minnesota Statutes 2004, section 125A.65, subdivision 8, is amended to read:
9.15 		Subd. 8.Student count; tuition. (a) On May 1, 1996, and each year thereafter, 
9.16 	the board of the Minnesota State Academies shall count the actual number of Minnesota 
9.17 	resident special education eligible students enrolled and receiving education services at the 
9.18 	Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind. 
9.19 	(b) For fiscal year 2006, the board of the Minnesota State Academies shall deposit in 
9.20 	the state treasury an amount equal to all tuition received for the basic revenue according to 
9.21 	subdivision 3, less the amount calculated in paragraph (b) (c).
9.22 	(b)(c) For fiscal year 2006, the Minnesota State Academies shall credit to their 
9.23 	general operation account an amount equal to the tuition received which represents tuition 
9.24 	earned for the total number of students over 175 based on:
9.25 	(1) the total number of enrolled students on May 1 less 175; times
9.26 	(2) the ratio of the number of students in that grade category to the total number of 
9.27 	students on May 1; times
9.28 	(3) the general education revenue formula allowance; times
9.29 	(4) the pupil unit weighting factor pursuant to section  126C.05. 
9.30 	(d) For fiscal year 2007 and later, the Minnesota State Academies shall report to 
9.31 	the department the number of students by grade level counted according to paragraph (a). 
9.32 	The amount paid to the Minnesota State Academies under subdivision 3, paragraph (c), 
9.33 	must be reduced by an amount equal to:
9.34 	(1) the ratio of 175 to the total number of students on May 1; times
10.1 	(2) the total basic revenue determined according to subdivision 3, paragraph (c).

10.2 	Sec. 14. Minnesota Statutes 2004, section 125A.65, subdivision 10, is amended to read:
10.3 		Subd. 10.Annual appropriation. There is annually appropriated to the department 
10.4 	for the Minnesota State Academies the tuition or aid payment amounts received and 
10.5 	credited to the general operation account of the academies under this section. A balance 
10.6 	in an appropriation under this paragraph does not cancel but is available in successive 
10.7 	fiscal years.

10.8 	Sec. 15. Minnesota Statutes 2004, section 125A.69, subdivision 3, is amended to read:
10.9 		Subd. 3.Out-of-state admissions. An applicant from another state who can benefit 
10.10 	from attending either academy may be admitted to the academy if the admission does not 
10.11 	prevent an eligible Minnesota resident from being admitted. The board of the Minnesota 
10.12 	State Academies must obtain reimbursement from the other state for the costs of the 
10.13 	out-of-state admission. The state board may enter into an agreement with the appropriate 
10.14 	authority in the other state for the reimbursement. Money received from another state 
10.15 	must be deposited in the generalspecial revenue  fund and credited to the general operating 
10.16 	account of the academies. The money is appropriated to the academies.

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

10.18 	Sec. 16. Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:
10.19 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
10.20 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
10.21 	(c), in average daily membership enrolled in the district of residence, in another district 
10.22 	under sections  123A.05 to  123A.08,  124D.03,  124D.06,  124D.07,  124D.08, or  124D.68; 
10.23 	in a charter school under section  124D.10; or for whom the resident district pays tuition 
10.24 	under section  123A.18,  123A.22,  123A.30,  123A.32,  123A.44,  123A.488,  123B.88, 
10.25 	subdivision 4,  124D.04,  124D.05,  125A.03 to  125A.24,  125A.51, or  125A.65, shall be 
10.26 	counted according to this subdivision. 
10.27 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
10.28 	by the commissioner and has an individual education plan is counted as the ratio of the 
10.29 	number of hours of assessment and education service to 825 times  1.25 with a minimum 
10.30 	average daily membership of 0.28, but not more than  1.25 pupil units. 
10.31 	(b) A prekindergarten pupil who is assessed but determined not to be handicapped is 
10.32 	counted as the ratio of the number of hours of assessment service to 825 times  1.25. 
11.1 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
11.2 	by the commissioner is counted as the ratio of the number of hours of assessment and 
11.3 	education services required in the fiscal year by the pupil's individual education program 
11.4 	plan to 875, but not more than one.
11.5 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
11.6 	pupil unit for fiscal year 2000 and thereafter.
11.7 	(e) A pupil who is in any of grades 1 to 3 is counted as  1.115 pupil units for fiscal 
11.8 	year 2000 and thereafter. 
11.9 	(f) A pupil who is any of grades 4 to 6 is counted as  1.06 pupil units for fiscal 
11.10 	year 1995 and thereafter. 
11.11 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
11.12 	(h) A pupil who is in the postsecondary enrollment options program is counted 
11.13 	as 1.3 pupil units.

11.14 	Sec. 17. Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:
11.15 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
11.16 	7 and 8.
11.17 	(a) "High school" means a public secondary school, except a charter school under 
11.18 	section 124D.10,  that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
11.19 	there is no secondaryhigh  school in the district that has pupils enrolled in at least the 
11.20 	10th, 11th, and 12th grades, and the school is at least 19 miles from the next nearest 
11.21 	school, the commissioner must designate one school in the district as a high school for the 
11.22 	purposes of this section.
11.23 	(b) "Secondary average daily membership" means, for a district that has only one 
11.24 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
11.25 	district that has more than one high school, "secondary average daily membership" for 
11.26 	each high school means the product of the average daily membership of pupils served in 
11.27 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
11.28 	in the high school.
11.29 	(c) "Attendance area" means the total surface area of the district, in square miles, 
11.30 	divided by the number of high schools in the district. For a district that does not operate 
11.31 	a high school and is less than 19 miles from the nearest operating high school, the 
11.32 	attendance area equals zero.
11.33 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
11.34 	attendance area plus the distance in miles, according to the usually traveled routes, 
12.1 	between the high school and the nearest high school. For a district in which there is located 
12.2 	land defined in section  84A.01,  84A.20, or  84A.31, the distance in miles is the sum of: 
12.3 	(1) the square root of one-half of the attendance area; and
12.4 	(2) the distance from the border of the district to the nearest high school.
12.5 	(e) "Qualifying high school" means a high school that has an isolation index greater 
12.6 	than 23 and that has secondary average daily membership of less than 400.
12.7 	(f) "Qualifying elementary school" means an a public  elementary school, except a 
12.8 	charter school under section 124D.10,  that is located 19 miles or more from the nearest 
12.9 	elementary school or from the nearest elementary school within the district and, in either 
12.10 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
12.11 	(g) "Elementary average daily membership" means, for a district that has only 
12.12 	one elementary school, the average daily membership of pupils served in kindergarten 
12.13 	through grade 6. For a district that has more than one elementary school, "average daily 
12.14 	membership" for each school means the average daily membership of pupils served in 
12.15 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
12.16 	in the elementary school.

12.17 	Sec. 18. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 34, 
12.18 	is amended to read:
12.19 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
12.20 	the basic alternative teacher compensation aid for a school district or an intermediate 
12.21 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
12.22 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
12.23 	basic alternative teacher compensation aid for a charter school with an approved plan 
12.24 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
12.25 	in the school on October 1 of the previous school year, or on October 1 of the current 
12.26 	fiscal year for a charter school in the first year of operation.
12.27 	(b) For fiscal year 2007 and later, the basic alternative teacher compensation aid 
12.28 	for a school district with a plan approved under section 122A.414, subdivision 2b, equals 
12.29 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
12.30 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
12.31 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
12.32 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
12.33 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
12.34 	year for a charter school in the first year of operation, times the ratio of the sum of the 
12.35 	alternative teacher compensation aid and alternative teacher compensation levy for all 
13.1 	participating school districts to the maximum alternative teacher compensation revenue 
13.2 	for those districts under section 122A.415, subdivision 1.
13.3 	(c) For fiscal year 2008 and later, the basic alternative teacher compensation aid for 
13.4 	a school district with a plan approved under section 122A.414, subdivision 2b, equals the 
13.5 	alternative teacher compensation revenue under section 122A.415, subdivision 1, minus 
13.6 	$70 times the number of pupils enrolled at participating sites on October 1 of the previous 
13.7 	fiscal year. The basic alternative teacher compensation aid for an intermediate school 
13.8 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
13.9 	and 2b, if the recipient is a charter school, equals $260 times the ratio of the formula 
13.10 	allowance for the current fiscal year to the formula allowance for fiscal year 2007 times 
13.11 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
13.12 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
13.13 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
13.14 	compensation levy for all participating school districts to the maximum alternative teacher 
13.15 	compensation revenue for those districts under section 122A.415, subdivision 1.
13.16 	(d) Notwithstanding paragraphs (a) and, (b), and (c) and section 122A.415, 
13.17 	subdivision 1, the state total basic alternative teacher compensation aid entitlement 
13.18 	must not exceed $19,329,000 for fiscal year 2006 and, $75,636,000 for fiscal year 2007 
13.19 	and later, and for fiscal year 2008 and later, $75,636,000 times the ratio of the formula 
13.20 	allowance for the current fiscal year to the formula allowance for fiscal year 2007. The 
13.21 	commissioner must limit the amount of alternative teacher compensation aid approved 
13.22 	under section sections122A.415 and 122A.416 so as not to exceed these limits.

13.23 	Sec. 19. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
13.24 	amended to read:
13.25 		Subd. 2.Payment to unemployment insurance program trust fund by state 
13.26 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
13.27 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
13.28 	placement services offered to employees who may become eligible for benefits pursuant 
13.29 	to section 268.085 for the fiscal year the levy is certified.
13.30 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
13.31 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
13.32 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
13.33 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
13.34 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

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

14.1 	Sec. 20. Minnesota Statutes 2004, section 126C.44, is amended to read:
14.2 	126C.44 SAFE SCHOOLS LEVY.
14.3 	Each district may make a levy on all taxable property located within the district for 
14.4 	the purposes specified in this section. The maximum amount which may be levied for all 
14.5 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
14.6 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
14.7 	for directly funding the following purposes or for reimbursing the cities and counties who 
14.8 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
14.9 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
14.10 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
14.11 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
14.12 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
14.13 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
14.14 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
14.15 	prevention measures taken by the school district. For expenditures under clause (1), the 
14.16 	district must initially attempt to contract for services to be provided by peace officers or 
14.17 	sheriffs with the police department of each city or the sheriff's department of the county 
14.18 	within the district containing the school receiving the services. If a local police department 
14.19 	or a county sheriff's department does not wish to provide the necessary services, the 
14.20 	district may contract for these services with any other police or sheriff's department 
14.21 	located entirely or partially within the school district's boundaries. The levy authorized 
14.22 	under this section is not included in determining the school district's levy limitations.

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

14.24 	Sec. 21. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
14.25 	is amended to read:
14.26 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
14.27 	fund payments for a district nonoperating fund must be made at the current year aid 
14.28 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
14.29 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
14.30 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
14.31 	year of the entitlement must be paid prior to October 31 of the following school year. The 
14.32 	commissioner may make advance payments of debt service equalization aid and state-paid 
14.33 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
14.34 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
15.1 	The commissioner may make earlier payments during the year and, if necessary, increase 
15.2 	the percent of the entitlement paid to reduce the cash flow problem.

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

15.4 	Sec. 22.  REPEALER.
 15.5 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

15.6 	ARTICLE 2
15.7 	EDUCATION EXCELLENCE

15.8 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
15.9 	read:
15.10 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
15.11 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
15.12 	custody of a child. 
15.13 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
15.14 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
15.15 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
15.16 	in which case it means the guardian or conservator. 
15.17 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
15.18 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
15.19 	who is placed in a center for care and treatment, shall be the school district in which the 
15.20 	pupil's biological or adoptive parent or designated guardian resides. 
15.21 	(d) For a married pupil age 18 or over, the school district of residence is the school 
15.22 	district in which the married pupil resides.
15.23 	(e) If a district suspects that a student does not meet the residency requirements of the 
15.24 	school district in which the student is attending school, the student may be removed from 
15.25 	the school only after the district sends the student's parents written notice of the district's 
15.26 	suspicion, including the facts upon which the suspicion is based, and an opportunity to 
15.27 	provide documentary evidence of residency in person to the superintendent or designee, 
15.28 	or, at the option of the parents, by sending the documentary evidence to the superintendent 
15.29 	or a designee, who will then make a determination as to the residency status of the student.

15.30 	Sec. 2. Minnesota Statutes 2004, section 120B.023, is amended to read:
15.31 	120B.023 BENCHMARKS.
16.1 		Subdivision 1.Benchmarks implement, supplement statewide academic 
16.2 	standards. (a) The commissioner must supplement required state academic standards with 
16.3 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
16.4 	benchmarks must implement statewide academic standards by specifying the academic 
16.5 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
16.6 	complete a state standard. The commissioner must publish benchmarks are published to 
16.7 	inform and guide parents, teachers, school districts, and other interested persons and for to
16.8 	use in developing tests consistent with the benchmarks.
16.9 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
16.10 	the benchmarks in any other manner that makes them accessible to the general public. The 
16.11 	commissioner may charge a reasonable fee for publications.
16.12 	(c) Once established, the commissioner may change the benchmarks only with 
16.13 	specific legislative authorization and after completing a review under paragraph (d)
16.14 	subdivision 2.
16.15 	(d) The commissioner must develop and implement a system for reviewing on 
16.16 	a four-year cycle each of the required academic standards and related benchmarks and 
16.17 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
16.18 	with subdivision 2.
16.19 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
16.20 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
16.21 	revise and appropriately embed technology design and information literacy standards into 
16.22 	the state's academic standards and graduation requirements and implement a six-year 
16.23 	review cycle for state academic standards and related benchmarks, consistent with this 
16.24 	subdivision. During each review cycle, the commissioner also must examine the alignment 
16.25 	of each required academic standard and related benchmark with the knowledge and skills 
16.26 	students need for college readiness and advanced work in the particular subject area.
16.27 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
16.28 	academic standards and high school graduation requirements in mathematics to require 
16.29 	that students satisfactorily complete the revised mathematics standards, beginning in the 
16.30 	2010-2011 school year. Under the revised standards:
16.31 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
16.32 	grade; and
16.33 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
16.34 	satisfactorily complete an algebra II credit or its equivalent.
16.35 	The commissioner also must ensure that the statewide mathematics assessments 
16.36 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school 
17.1 	year are aligned with the state academic standards in mathematics. The statewide 11th 
17.2 	grade math test administered to students under clause (2) beginning in the 2013-2014 
17.3 	school year must include algebra II test items that are aligned with corresponding state 
17.4 	academic standards in mathematics. The commissioner must implement a six-year review 
17.5 	cycle for the academic standards and related benchmarks in mathematics beginning in the 
17.6 	2015-2016 school year.
17.7 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
17.8 	academic standards and high school graduation requirements in the arts to require that 
17.9 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
17.10 	school year. The commissioner must implement a six-year review cycle for the academic 
17.11 	standards and related benchmarks in arts beginning in the 2016-2017 school year.
17.12 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
17.13 	academic standards and high school graduation requirements in science to require that 
17.14 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
17.15 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
17.16 	school year or later must satisfactorily complete a chemistry or physics credit. The 
17.17 	commissioner must implement a six-year review cycle for the academic standards and 
17.18 	related benchmarks in science beginning in the 2017-2018 school year.
17.19 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
17.20 	academic standards and high school graduation requirements in language arts to require 
17.21 	that students satisfactorily complete the revised language arts standards beginning in 
17.22 	the 2012-2013 school year. The commissioner must implement a six-year review cycle 
17.23 	for the academic standards and related benchmarks in language arts beginning in the 
17.24 	2018-2019 school year.
17.25 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
17.26 	academic standards and high school graduation requirements in social studies to require 
17.27 	that students satisfactorily complete the revised social studies standards beginning in 
17.28 	the 2013-2014 school year. The commissioner must implement a six-year review cycle 
17.29 	for the academic standards and related benchmarks in social studies beginning in the 
17.30 	2019-2020 school year.
17.31 	(g) School districts and charter schools must revise and align local academic 
17.32 	standards and high school graduation requirements in health, physical education, world 
17.33 	languages, and career and technical education to require students to complete the revised 
17.34 	standards beginning in a school year determined by the school district or charter school. 
17.35 	School districts and charter schools must formally establish a periodic review cycle for 
18.1 	the academic standards and related benchmarks in health, physical education, world 
18.2 	languages, and career and technical education.

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

18.4 	Sec. 3. Minnesota Statutes 2004, section 120B.024, is amended to read:
18.5 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS; 
18.6 	STUDENT TRANSFERS.
18.7 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
18.8 	successfully complete the following high school level course credits for graduation:
18.9 	(1) four credits of language arts;
18.10 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
18.11 	and probability sufficient to satisfy the academic standard and beginning in the 2010-2011 
18.12 	school year for students scheduled to graduate in the 2014-2015 school year or later, one 
18.13 	algebra II credit or its equivalent;
18.14 	(3) three credits of science, including at least one credit in biology and for the 
18.15 	2011-2012 school year and later, one credit in chemistry or physics;
18.16 	(4) three and one-half credits of social studies, encompassing at least United 
18.17 	States history, geography, government and citizenship, world history, and economics or 
18.18 	three credits of social studies encompassing at least United States history, geography, 
18.19 	government and citizenship, and world history, and one-half credit of economics taught in 
18.20 	a school's social studies, agriculture education,  or business department;
18.21 	(5) one credit in the arts; and
18.22 	(6) a minimum of seven elective course credits.
18.23 	A course credit is equivalent to a student successfully completing an academic 
18.24 	year of study or a student mastering the applicable subject matter, as determined by the 
18.25 	local school district.
18.26 	(b) An agriculture science course may fulfill a science credit requirement in addition 
18.27 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
18.28 	clause (3).
18.29 	(c) A district, area learning center, and charter school must establish processes by 
18.30 	which to transfer as completed: 
18.31 	(1) those course credit requirements that other school sites within the district or 
18.32 	other public schools verify on transcripts as completed; and
18.33 	(2) the work that educational institutions outside the state accept for completing the 
18.34 	equivalent of course credit requirements and verify on transcripts as completed.

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

19.2 	Sec. 4. Minnesota Statutes 2005 Supplement, section 120B.131, subdivision 2, is 
19.3 	amended to read:
19.4 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
19.5 	college-level examination program (CLEP) fees for a Minnesota public high school 
19.6 	student who has successfully completed one or more college-level courses in high school 
19.7 	and earned a satisfactory score on one or more CLEP examinations in the following 
19.8 	subjects: composition and literature, mathematics and science, social sciences and history, 
19.9 	foreign languages, and business and humanities. The state may reimburse each successful
19.10 	student for up to six examination fees. The commissioner shall establish application 
19.11 	procedures and a process and schedule for fee reimbursements. The commissioner must 
19.12 	give priority to reimburse the CLEP examination fees of students of low-income families.

19.13 	Sec. 5. Minnesota Statutes 2004, section 120B.36, subdivision 1, is amended to read:
19.14 		Subdivision 1.School performance report cards. (a) The commissioner shall 
19.15 	use objective criteria based on levels of student performance to identify four to six 
19.16 	designations applicable to high and low performing public schools. The objective criteria 
19.17 	shall include at least student academic performance, school safety, and staff characteristics, 
19.18 	with a value-added growth component added by the 2006-2007 school year.
19.19 	(b) The commissioner shall develop, annually update, and post on the department 
19.20 	Web site school performance report cards. A school's designation must be clearly stated 
19.21 	on each school performance report card. The performance report cards must indicate both 
19.22 	the cut scores and the corresponding percentages of items students must answer correctly 
19.23 	at each set performance level adopted for the statewide tests the commissioner uses to 
19.24 	determine school designations under this section. 
19.25 	(c) The commissioner must make available the first school designations and school 
19.26 	performance report cards by November 2003, and during the beginning of each school 
19.27 	year thereafter.
19.28 	(d) A school or district may appeal in writing a designation under this section to the 
19.29 	commissioner within 30 days of receiving the designation. The commissioner's decision 
19.30 	to uphold or deny an appeal is final.
19.31 	(e) School performance report cards are nonpublic data under section  13.02, 
19.32 	subdivision 9, until not later than ten days after the appeal procedure described in 
19.33 	paragraph (d) concludes. The department shall annually post school performance report 
19.34 	cards to its public Web site no later than September 1. 

20.1 	EFFECTIVE DATE. This section is effective for the 2006-2007 school year. 

20.2 	Sec. 6. Minnesota Statutes 2004, section 121A.035, is amended to read:
20.3 	121A.035 CRISIS MANAGEMENT POLICY.
20.4 		Subdivision 1.Model policy. By December 1, 1999,The commissioner shall 
20.5 	maintain and make available to school boards and charter schools a model crisis 
20.6 	management policy that includes, among other items, school lock-down and tornado drills, 
20.7 	consistent with subdivision 2, and school fire drills under section 299F.30.
20.8 		Subd. 2.School district and charter school policy. By July 1, 2000, A school 
20.9 	board and a charter school must adopt a district crisis management policy to address 
20.10 	potential violent crisis situations in the district or charter school. The policy must be 
20.11 	developed in consultationcooperatively with administrators, teachers, employees, 
20.12 	students, parents, community members, law enforcement agencies, other emergency 
20.13 	management officials, county attorney offices, social service agencies, emergency medical 
20.14 	responders, and any other appropriate individuals or organizations. The policy must 
20.15 	include at least five school lock-down drills, five school fire drills consistent with section 
20.16 	299F.30, and one tornado drill. 

20.17 	EFFECTIVE DATE. This section is effective for the 2006-2007 school year and 
20.18 	later. 

20.19 	Sec. 7. [121A.037] SCHOOL SAFETY DRILLS.
20.20 	Private schools and educational institutions not subject to section 121A.035 must 
20.21 	have at least five school lock-down drills, five school fire drills consistent with section 
20.22 	299F.30, and one tornado drill.

20.23 	EFFECTIVE DATE. This section is effective for the 2006-2007 school year.

20.24 	Sec. 8. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, is 
20.25 	amended to read:
20.26 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
20.27 	academic credit for completing the requirements of an online learning course or program. 
20.28 	Secondary credits granted to an online learning student must be counted toward the 
20.29 	graduation and credit requirements of the enrolling district. The enrolling district must 
20.30 	apply the same graduation requirements to all students, including online learning students, 
20.31 	and must continue to provide nonacademic services to online learning students. If a 
20.32 	student completes an online learning course or program that meets or exceeds a graduation 
21.1 	standard or grade progression requirement at the enrolling district, that standard or 
21.2 	requirement is met. The enrolling district must use the same criteria for accepting online 
21.3 	learning credits or courses as it does for accepting credits or courses for transfer students 
21.4 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
21.5 	contact time of an online learning student in proportion to the number of online learning 
21.6 	courses the student takes from an online learning provider that is not the enrolling district.
21.7 	(b) An online learning student may:
21.8 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
21.9 	their equivalent delivered by an online learning provider or the enrolling district;
21.10 	(2) complete course work at a grade level that is different from the student's current 
21.11 	grade level; and
21.12 	(3) enroll in additional courses with the online learning provider under a separate 
21.13 	agreement that includes terms for payment of any tuition or course fees.
21.14 	(c) A student with a disability may enroll in an online learning course or program 
21.15 	if the student's IEP team determines that online learning is appropriate education for 
21.16 	the student.
21.17 	(d)(c) An online learning student has the same access to the computer hardware 
21.18 	and education software available in a school as all other students in the enrolling district. 
21.19 	An online learning provider must assist an online learning student whose family qualifies 
21.20 	for the education tax credit under section 290.0674 to acquire computer hardware and 
21.21 	educational software for online learning purposes.
21.22 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
21.23 	Such online learning does not generate online learning funds under this section. An 
21.24 	enrolling district that offers online learning only to its enrolled students is not subject 
21.25 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
21.26 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
21.27 	online learning from an enrolling district. The delivery of instruction occurs when the 
21.28 	student interacts with the computer or the teacher and receives ongoing assistance and 
21.29 	assessment of learning. The instruction may include curriculum developed by persons 
21.30 	other than a teacher with a Minnesota license.
21.31 	(f)(e) An online learning provider that is not the enrolling district is subject to 
21.32 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
21.33 	Minnesota license must assemble and deliver instruction to online learning students. The 
21.34 	delivery of instruction occurs when the student interacts with the computer or the teacher 
21.35 	and receives ongoing assistance and assessment of learning. The instruction may include 
21.36 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
22.1 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
22.2 	instruct more than 40 students in any one online learning course or program.

22.3 	Sec. 9. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
22.4 		Subd. 16.Transportation. (a) By July 1 of each year, a charter schoolA charter 
22.5 	school by March 1 of each fiscal year after its first fiscal year of operation and a charter 
22.6 	school by July 1 of its first fiscal year of operation must notify the district in which the 
22.7 	school is located and the Department of Education if it will provide transportation for 
22.8 	pupils enrolled in the schoolits own transportation or use the transportation services of the 
22.9 	district in which it is located  for the fiscal year.
22.10 	(b) If a charter school elects to provide transportation for pupils, the transportation 
22.11 	must be provided by the charter school within the district in which the charter school is 
22.12 	located. The state must pay transportation aid to the charter school according to section  
22.13 	124D.11, subdivision 2. 
22.14 	For pupils who reside outside the district in which the charter school is located, the 
22.15 	charter school is not required to provide or pay for transportation between the pupil's 
22.16 	residence and the border of the district in which the charter school is located. A parent 
22.17 	may be reimbursed by the charter school for costs of transportation from the pupil's 
22.18 	residence to the border of the district in which the charter school is located if the pupil is 
22.19 	from a family whose income is at or below the poverty level, as determined by the federal 
22.20 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
22.21 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
22.22 	more than 250 miles per week.
22.23 	At the time a pupil enrolls in a charter school, the charter school must provide the 
22.24 	parent or guardian with information regarding the transportation.
22.25 	(c) If a charter school does not elect to provide transportation, transportation for 
22.26 	pupils enrolled at the school must be provided by the district in which the school is 
22.27 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
22.28 	pupil residing in the same district in which the charter school is located. Transportation 
22.29 	may be provided by the district in which the school is located, according to sections  
22.30 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
22.31 	district. If the district provides the transportation, the scheduling of routes, manner and 
22.32 	method of transportation, control and discipline of the pupils, and any other matter relating 
22.33 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
22.34 	control, and management of the district. 

23.1 	Sec. 10. Minnesota Statutes 2004, section 124D.61, is amended to read:
23.2 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
23.3 	A district which receives aid pursuant to section  124D.65 must comply with that 
23.4 	enrolls one or more children of limited English proficiency must implement an educational 
23.5 	program that includes at a minimum the following program requirements: 
23.6 	(1) identification and reclassification criteria for children of limited English 
23.7 	proficiency and program entrance and exit criteria for children with limited English 
23.8 	proficiency must be documented by the district, applied uniformly to children of limited 
23.9 	English proficiency, and made available to parents and other stakeholders upon request;
23.10 	(2) a written plan of services that describes programming by English proficiency 
23.11 	level made available to parents upon request. The plan must articulate the amount and 
23.12 	scope of service offered to children of limited English proficiency through an educational 
23.13 	program for children of limited English proficiency;
23.14 	(3) professional development opportunities for ESL, bilingual education, 
23.15 	mainstream, and all staff working with children of limited English proficiency which are: 
23.16 	(i) coordinated with the district's professional development activities; (ii) related to the 
23.17 	needs of children of limited English proficiency; and (iii) ongoing;
23.18 	(4) to the extent possible, the district must avoid isolating children of limited English 
23.19 	proficiency for a substantial part of the school day; and
23.20 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
23.21 	education, permit pupils of limited English proficiency shall be permitted to participate 
23.22 	fully and on an equal basis with their contemporaries in public school classes provided 
23.23 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
23.24 	program for limited English proficient students an equal and meaningful opportunity to 
23.25 	participate fully with other pupils in all extracurricular activities.

23.26 	Sec. 11. Minnesota Statutes 2004, section 181.101, is amended to read:
23.27 	181.101 WAGES; HOW OFTEN PAID.
23.28 	Every employer must pay all wages earned by an employee at least once every 31 
23.29 	days on a regular pay day designated in advance by the employer regardless of whether 
23.30 	the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
23.31 	during the first half of the first 31-day pay period become due on the first regular payday 
23.32 	following the first day of work. If wages earned are not paid, the commissioner of labor 
23.33 	and industry or the commissioner's representative may demand payment on behalf of an 
23.34 	employee. If payment is not made within ten days of demand, the commissioner may 
23.35 	charge and collect the wages earned and a penalty in the amount of the employee's average 
24.1 	daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
24.2 	days in all, for each day beyond the ten-day limit following the demand. Money collected 
24.3 	by the commissioner must be paid to the employee concerned. This section does not 
24.4 	prevent an employee from prosecuting a claim for wages. This section does not prevent 
24.5 	a school district or,  other public school entity, or other school, as defined under section 
24.6 	120A.22,  from paying any wages earned by its employees during a school year on regular 
24.7 	pay days in the manner provided by an applicable contract or collective bargaining 
24.8 	agreement, or a personnel policy adopted by the governing board. For purposes of this 
24.9 	section, "employee" includes a person who performs agricultural labor as defined in 
24.10 	section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
24.11 	day an employee works.

24.12 	Sec. 12. Minnesota Statutes 2004, section 299F.30, is amended to read:
24.13 	299F.30 FIRE DRILL IN SCHOOL; DOORS AND EXITS.
24.14 		Subdivision 1.Duties of fire marshal. Consistent with sections 121A.035, 
24.15 	121A.037, and this section, it shall be the duty of the state fire marshal, deputies and 
24.16 	assistants, to require public and private schools and educational institutions to have at 
24.17 	least ninefive fire drills each school year and to keep all doors and exits unlocked from the 
24.18 	inside of the building during school hours.
24.19 		Subd. 2.Fire drill. Each superintendent, principal or other person in charge of a 
24.20 	public or private school, educational institution, children's home or orphanage housing 20 
24.21 	or more students or other persons, shall instruct and train such students or other persons to 
24.22 	quickly and expeditiously quit the premises in case of fire or other emergency by means of 
24.23 	drills or rapid dismissals at least once each month while such school, institution, home or 
24.24 	orphanage is in operation. Records of such drills shall be posted so that such records are 
24.25 	available for review by the state fire marshal at all times and shall include the drill date 
24.26 	and the time required to evacuate the building.
24.27 		Subd. 3.School doors and exits. Consistent with section 121A.035 and this 
24.28 	section, each superintendent, principal or other person in charge of a public or private 
24.29 	school, educational institution, children's home or orphanage shall keep all doors and exits 
24.30 	of such school, institution, home or orphanage unlocked so that persons can leave by such 
24.31 	doors or exits at any time during the hours of normal operation.

24.32 	EFFECTIVE DATE. This section is effective for the 2006-2007 school year. 

25.1 	Sec. 13. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
25.2 	13, is amended to read:
25.3 	
25.4 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
25.5 	students' advanced placement and  international baccalaureate examination fees under 
25.6 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
25.7 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
25.8 	subdivision 1:  

25.9		$
	4,500,000
	.....
	2006
	
25.10		$
	4,500,000
	.....
	2007
	
25.11 	
25.12 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
25.13 	each year and the international  baccalaureate program shall receive 25 percent of the  
25.14 	appropriation each year.  The department, in consultation with  representatives of the 
25.15 	advanced placement and international  baccalaureate programs selected by the Advanced 
25.16 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
25.17 	the expenditures each year for examination fees and  training and support programs for 
25.18 	each program.  
25.19 	
25.20 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
25.21 	$500,000 each year is for teachers to  attend subject matter summer training programs 
25.22 	and follow-up  support workshops approved by the advanced placement or  international 
25.23 	baccalaureate programs.  The amount of the subsidy  for each teacher attending an 
25.24 	advanced placement or  international baccalaureate summer training program or workshop 
25.25 	shall be the same.  The commissioner shall determine the payment  process and the amount 
25.26 	of the subsidy.Teachers shall apply for teacher training scholarships to prepare for 
25.27 	teaching in the advanced placement or international baccalaureate program. Any reserved 
25.28 	funding not expended for teacher training may be used for exam fees and other support 
25.29 	programs for each program.
25.30 	
25.31 	(d) The commissioner shall pay all examination fees for all  students of low-income 
25.32 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
25.33 	of available  appropriations shall also pay examination fees for students  sitting for an 
25.34 	advanced placement examination, international  baccalaureate examination, or both.  
25.35 	
26.1 	Any balance in the first year does not cancel but is  available in the second year.  
26.2 	

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

26.4 	Sec. 14. ADVISORY TASK FORCE ON SCHOOL AND STAFF 
26.5 	EMERGENCY/ALL HAZARD PREPAREDNESS.
 26.6 	(a) An advisory task force on school and staff emergency/all hazard preparedness 
26.7 	is established to consider and recommend to the legislature proposals for strengthening 
26.8 	kindergarten through grade 12 crisis management and school safety efforts including, at 
26.9 	least, whether or not to:
26.10 	(1) develop specific K-12 teacher and school administrator competencies related to 
26.11 	emergency/all hazard preparedness;
26.12 	(2) provide emergency/all hazard preparedness training to currently licensed K-12 
26.13 	teachers and school administrators; 
26.14 	(3) incorporate emergency/all hazard preparedness competencies into existing 
26.15 	teacher and school administrator preparation curriculum;
26.16 	(4) identify key emergency/all hazard preparedness competencies appropriate to 
26.17 	teacher and school administrator preparation curriculum and ongoing teacher and school 
26.18 	administrator training; and
26.19 	(5) expect federal funds to supplement state emergency/all hazard preparedness 
26.20 	initiatives.
26.21 	(b) The commissioner of education shall appoint an advisory task force on school 
26.22 	and staff emergency/all hazard preparedness that is composed of a representative from 
26.23 	each of the following entities: the state Board of Teaching; the state Board of School 
26.24 	Administrators; the state fire marshal; law enforcement agencies; emergency responders; 
26.25 	school principals; school counselors; nonlicensed school employees; the Minnesota School 
26.26 	Boards Association; Education Minnesota; the Minnesota Department of Education; the 
26.27 	Minnesota Department of Health; the Minnesota Department of Public Safety; Minnesota 
26.28 	State Colleges and Universities; Minnesota Association of School Administrators; and 
26.29 	others recommended by task force members. Task force members' terms and other task 
26.30 	force matters are subject to Minnesota Statutes, section 15.059. The commissioner may 
26.31 	not compensate or reimburse task force members for task force activities. The task force 
26.32 	must submit by February 15, 2007, to the education policy and finance committees of the 
26.33 	legislature a written report that includes recommendations on strengthening K-12 crisis 
26.34 	management and school safety efforts.
26.35 	(c) The task force expires February 16, 2007. 

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

27.2 	Sec. 15. 2006 SCHOOL ACCOUNTABILITY REPORT.
 27.3 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
27.4 	Department of Education may delay the release to the public and the posting of the 2006 
27.5 	school performance report cards and adequate yearly progress data on its public Web 
27.6 	site to no later than November 30, 2006.

27.7 	Sec. 16. ADVISORY TASK FORCE ON OPTIONS FOR ACCELERATED 
27.8 	K-12 TECHNOLOGY, SCIENCE, AND MATHEMATICS PROGRAMS 
27.9 	THROUGHOUT MINNESOTA.
 27.10 	(a) An advisory task force on options for accelerated kindergarten through grade 
27.11 	12 technology, science, and mathematics programs throughout Minnesota is established 
27.12 	to consider and recommend to the legislature alternatives for delivering accelerated 
27.13 	technology, science, and mathematics programs to eligible students throughout Minnesota 
27.14 	that include creating an academic center. Recommended programs must provide 
27.15 	accelerated technology, science, and mathematics instruction to eligible students in grades 
27.16 	6 through 12 and be cost effective and efficiently implemented and operated. Other 
27.17 	recommended programs may offer accelerated technology, science, and mathematics 
27.18 	instruction to other eligible elementary grade students,  provide out-of-school and summer 
27.19 	school K-12 technology, science, and mathematics instruction throughout the state, provide 
27.20 	professional development for K-12 teachers in technology, science and mathematics 
27.21 	curriculum and instruction, and develop technology, science and mathematics curriculum. 
27.22 	(b) The advisory task force at least must:
27.23 	(1) evaluate and compare at least five alternatives for delivering accelerated 
27.24 	technology, science, and mathematics programs to Minnesota students that include creating 
27.25 	an academic center that may be patterned after the Perpich Center for Arts Education 
27.26 	under Minnesota Statutes, chapter 129C, and may include online learning, satellite 
27.27 	technology, science, and mathematics centers, and a consortium of available accelerated 
27.28 	technology, science, and mathematics or accelerated education programs, among other 
27.29 	alternatives, and evaluate how such programs may be integrated into the academic center;
27.30 	(2) identify and evaluate possible members for a science, mathematics, engineering, 
27.31 	and technology leadership consortium composed of representatives of corporations, 
27.32 	organizations, educational institutions, and research facilities to help implement 
27.33 	accelerated K-12 technology, science, and mathematics programs in Minnesota that 
27.34 	include creating an academic center;
28.1 	(3) evaluate and compare at least three alternatives for preparing and assisting 
28.2 	educational leaders who are literate in technology, science, and mathematics to help 
28.3 	implement accelerated K-12 technology, science, and mathematics programs in Minnesota 
28.4 	that include creating an academic center and may include gifted education and accelerated 
28.5 	technology, science, and mathematics teacher training programs, and evaluate how such 
28.6 	programs may be integrated into the academic center; and 
28.7 	(4) identify and evaluate postsecondary career and technical education programs 
28.8 	offering or requiring accelerated technology, science, and mathematics instruction.
28.9 	(c) The commissioner of education shall appoint a 17-member advisory task force on 
28.10 	options for accelerated K-12 technology, science, and mathematics programs throughout 
28.11 	Minnesota that represents the following representatives: a gifted education coordinator, an 
28.12 	educator holding a gifted education certificate or an instructor in a graduate level gifted 
28.13 	education program; a currently licensed or retired high school physical science teacher; a 
28.14 	currently licensed or retired high school mathematics teacher; a faculty member providing 
28.15 	instruction under the Minnesota postsecondary enrollment options program or an educator 
28.16 	providing instruction under the college in the schools program; a faculty member or 
28.17 	educator providing instruction in the Minnesota talented youth mathematics program; a 
28.18 	University of Minnesota mathematics or engineering professor; a University of Minnesota 
28.19 	physical science professor; a manager or director in a high technology field, corporation, 
28.20 	organization, or facility; a manager or director in a medical field or profession; a manager 
28.21 	or director in a research-based field, corporation, organization, or facility; one or more 
28.22 	parents of high school students gifted in technology, mathematics, or science; a physical 
28.23 	science teacher and a biology teacher, one of whom is licensed to teach middle level 
28.24 	students and one of whom is licensed to teach high school level students; a high school 
28.25 	career and technical instructor; a faculty member in a postsecondary institution offering 
28.26 	technical two-year degrees who provides career and technical instruction; a manager or 
28.27 	director in a technology, mathematics, or science industry who employs persons with 
28.28 	associate degrees in a technical field; a manager or director in the biosciences industry; and 
28.29 	two at-large members. In appointing members, the commissioner must attempt to ensure 
28.30 	geographic balance. Task force members must actively seek the participation of gifted and 
28.31 	talented students to advise the task force throughout its existence on any recommendations 
28.32 	the task force proposes to submit to the legislature and on any other recommendations 
28.33 	related to this section. Task force members may not receive compensation and may not be 
28.34 	reimbursed for expenses related to serving on the task force. The task force may receive, 
28.35 	for the benefit of the task force, bequests, donations, or gifts for any proper purpose 
28.36 	and apply the bequests, donations, or gifts to the purpose designated. Notwithstanding 
29.1 	any other law to the contrary, the task force may conduct meetings of its members by 
29.2 	telephone or other electronic means where all members can hear one another and all the 
29.3 	discussion, at least one member is physically present at the regular meeting location, 
29.4 	and interested members of the public can hear all the discussion. Task force members' 
29.5 	terms and other task force matters are subject to Minnesota Statutes, section 15.059. 
29.6 	The task force must submit by January 30, 2007, a written report and presentation to the 
29.7 	Education Policy and Finance committees of the legislature that include recommendations 
29.8 	on alternatives for delivering accelerated technology, science, and mathematics programs 
29.9 	to eligible students throughout Minnesota.
29.10 	(d) Upon request, the commissioner of education must provide the task force with 
29.11 	technical and other support services. The commissioner must use funds from the current 
29.12 	operating budget of the Department of Education to cover any costs the commissioner 
29.13 	incurs in providing services to the task force.
29.14 	(e) The task force expires June 30, 2007.

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

29.16 	ARTICLE 3
29.17 	SPECIAL PROGRAMS

29.18 	Section 1. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to 
29.19 	read:
29.20 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
29.21 	blindness, visual disability, speech or language impairment, physical handicap, other 
29.22 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
29.23 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
29.24 	needs special instruction and services, as determined by the standards of the commissioner, 
29.25 	is a child with a disability. In addition, every child under age three, and at local district 
29.26 	discretion from age three to age seven, who needs special instruction and services, as 
29.27 	determined by the standards of the commissioner, because the child has a substantial delay 
29.28 	or has an identifiable physical or mental condition known to hinder normal development is 
29.29 	a child with a disability.

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

29.31 	Sec. 2. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, is 
29.32 	amended to read:
30.1 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
30.2 	when a school district provides instruction and services outside the district of residence, 
30.3 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
30.4 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
30.5 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
30.6 	of (1) the actual cost of providing special instruction and services to the child including 
30.7 	a proportionate amount for special transportation and unreimbursed building lease and 
30.8 	debt service costs for facilities used primarily for special education, plus (2) the amount 
30.9 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
30.10 	amount of special education aid for children with a disability received on behalf of that 
30.11 	child, minus (4) if the pupil receives special instruction and services outside the regular 
30.12 	classroom for more than 60 percent of the school day, the amount of general education 
30.13 	revenue and referendum aid, excluding portions attributable to district and school 
30.14 	administration, district support services, operations and maintenance, capital expenditures, 
30.15 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
30.16 	special instruction inand services outside  the regular classroom. If the boards involved 
30.17 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
30.18 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
30.19 	request a written statement from each board, giving each board at least ten days' notice, 
30.20 	and after the hearing or review of the written statements the commissioner must make an 
30.21 	order fixing the tuition rate, which is binding on both school districts. General education 
30.22 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
30.23 	district's average general education and referendum revenue per adjusted pupil unit.
30.24 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
30.25 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
30.26 	of residence, excluding a pupil for whom an adjustment to special education aid is 
30.27 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
30.28 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
30.29 	cost of providing special instruction and services to the pupil, including a proportionate 
30.30 	amount for special transportation and unreimbursed building lease and debt service costs 
30.31 	for facilities used primarily for special education, plus (2) the amount of general education 
30.32 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
30.33 	education aid for children with a disability received on behalf of that child, minus (4) if the 
30.34 	pupil receives special instruction and services outside the regular classroom for more than 
30.35 	60 percent of the school day, the amount of general education revenue and referendum 
30.36 	aid, excluding portions attributable to district and school administration, district support 
31.1 	services, operations and maintenance, capital expenditures, and pupil transportation, 
31.2 	attributable to that pupil for the portion of time the pupil receives special  instruction in
31.3 	and services outside  the regular classroom. General education revenue and referendum 
31.4 	aid attributable to a pupil must be calculated using the resident district's average general 
31.5 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
31.6 	paid to the district or cooperative providing special instruction and services for the pupil 
31.7 	must be increased by the amount of the reduction in the aid paid to the resident district. 
31.8 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
31.9 	7, shall be recognized and reported as revenues and expenditures on the resident school 
31.10 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
31.11 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
31.12 	shall be made to other state aid due to the district.
31.13 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
31.14 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
31.15 	receive special education and related services, an intermediate district, or a special 
31.16 	education cooperative, or a school district that served as the applicant agency for a group 
31.17 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
31.18 	commissioner for authority to charge the resident district an additional amount to recover 
31.19 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
31.20 	include a description of the costs and the calculations used to determine the unreimbursed 
31.21 	portion to be charged to the resident district. Amounts approved by the commissioner 
31.22 	under this paragraph must be included in the tuition billings or aid adjustments under 
31.23 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.

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

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

32.1 	Sec. 4. Minnesota Statutes 2004, section 125A.29, is amended to read:
32.2 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
32.3 	BOARDS.
32.4 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
32.5 	provide, and pay for appropriate services, and to facilitate payment for services from public 
32.6 	and private sources. Appropriate services for children eligible under section  125A.02 must 
32.7 	be determined in consultation with parents, physicians, and other educational, medical, 
32.8 	health, and human services providers. The services provided must be in conformity with:
32.9 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
32.10 	the infant's or toddler's  family,including:
32.11 	(i) American Indian infants and toddlers with disabilities and their families residing 
32.12 	on a reservation geographically located in the state;
32.13 	(ii) infants and toddlers with disabilities who are homeless children and their 
32.14 	families; and
32.15 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
32.16 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
32.17 	eligible child ages three through four. 
32.18 	(b) Appropriate services include family education and counseling, home visits, 
32.19 	occupational and physical therapy, speech pathology, audiology, psychological services, 
32.20 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
32.21 	and related costs, social work, vision services, case management including service 
32.22 	coordination under section  125A.33, medical services for diagnostic and evaluation 
32.23 	purposes, early identification, and screening, assessment, and health services necessary to 
32.24 	enable children with disabilities to benefit from early intervention services. 
32.25 	(c) School and county boards shall coordinate early intervention services. In the 
32.26 	absence of agreements established according to section  125A.39, service responsibilities 
32.27 	for children birth through age two are as follows: 
32.28 	(1) school boards must provide, pay for, and facilitate payment for special education 
32.29 	and related services required under sections  125A.05 and  125A.06; 
32.30 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
32.31 	services of social work, psychology, transportation and related costs, nursing, respite, and 
32.32 	nutrition services not required under clause (1).
32.33 	(d) School and county boards may develop an interagency agreement according 
32.34 	to section  125A.39 to establish agency responsibility that assures early intervention 
32.35 	services are coordinated, provided, paid for, and that payment is facilitated from public 
32.36 	and private sources. 
33.1 	(e) County and school boards must jointly determine the primary agency in this 
33.2 	cooperative effort and must notify the commissioner of the state lead agency of their 
33.3 	decision.

33.4 	Sec. 5. Minnesota Statutes 2004, section 125A.30, is amended to read:
33.5 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
33.6 	(a) A school district, group of districts, or special education cooperative, in 
33.7 	cooperation with the health and human service agencies located in the county or counties 
33.8 	in which the district or cooperative is located, must establish an Interagency Early 
33.9 	Intervention Committee for children with disabilities under age five and their families 
33.10 	under this section, and for children with disabilities ages three to 22 consistent with 
33.11 	the requirements under sections  125A.023 and  125A.027. Committees must include 
33.12 	representatives of local health, education, and county human service agencies, county 
33.13 	boards, school boards, early childhood family education programs, Head Start, parents of 
33.14 	young children with disabilities under age 12, child care resource and referral agencies, 
33.15 	school readiness programs, current service providers, and may also include representatives 
33.16 	from other private or public agencies and school nurses. The committee must elect a chair 
33.17 	from among its members and must meet at least quarterly. 
33.18 	(b) The committee must develop and implement interagency policies and procedures 
33.19 	concerning the following ongoing duties:
33.20 	(1) develop public awareness systems designed to inform potential recipient 
33.21 	families, especially parents with premature infants, or infants with other physical risk 
33.22 	factors associated with learning or development complications, of available programs 
33.23 	and services;
33.24 	(2) to reduce families' need for future services, and especially parents with premature 
33.25 	infants, or infants with other physical risk factors associated with learning or development 
33.26 	complications, implement interagency child find systems designed to actively seek out, 
33.27 	identify, and refer infants and young children with, or at risk of, disabilities and their 
33.28 	families, including a child under the age of three who: (i) is involved in a substantiated 
33.29 	case of abuse or (ii) is identified as affected by illegal substance abuse or with withdrawal 
33.30 	symptoms resulting from prenatal drug exposure;
33.31 	(3) establish and evaluate the identification, referral, child and family assessment 
33.32 	systems, procedural safeguard process, and community learning systems to recommend, 
33.33 	where necessary, alterations and improvements;
33.34 	(4) assure the development of individualized family service plans for all eligible 
33.35 	infants and toddlers with disabilities from birth through age two, and their families, and 
34.1 	individual education plans and individual service plans when necessary to appropriately 
34.2 	serve children with disabilities, age three and older, and their families and recommend 
34.3 	assignment of financial responsibilities to the appropriate agencies;
34.4 	(5) encourage agencies to develop individual family service plans for children with 
34.5 	disabilities, age three and older;
34.6 	(6) implement a process for assuring that services involve cooperating agencies at all 
34.7 	steps leading to individualized programs;
34.8 	(7)(6)  facilitate the development of a transitional plan if a service provider is not 
34.9 	recommended to continue to provide services;
34.10 	(8)(7)  identify the current services and funding being provided within the 
34.11 	community for children with disabilities under age five and their families;
34.12 	(9)(8) develop a plan for the allocation and expenditure of additional state and 
34.13 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
34.14 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
34.15 	seq. (Chapter I, Public Law 89-313); and
34.16 	(10)(9)  develop a policy that is consistent with section  13.05, subdivision 9, and 
34.17 	federal law to enable a member of an interagency early intervention committee to allow 
34.18 	another member access to data classified as not public. 
34.19 	(c) The local committee shall also:
34.20 	(1) participate in needs assessments and program planning activities conducted by 
34.21 	local social service, health and education agencies for young children with disabilities and 
34.22 	their families; and
34.23 	(2) review and comment on the early intervention section of the total special 
34.24 	education system for the district, the county social service plan, the section or sections of 
34.25 	the community health services plan that address needs of and service activities targeted 
34.26 	to children with special health care needs, the section on children with special needs in 
34.27 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
34.28 	services for children with special needs, any relevant portions of early childhood education 
34.29 	plans, such as early childhood family education or school readiness, or other applicable 
34.30 	coordinated school and community plans for early childhood programs and services, and 
34.31 	the section of the maternal and child health special project grants that address needs of and 
34.32 	service activities targeted to children with chronic illness and disabilities.

34.33 	Sec. 6. Minnesota Statutes 2004, section 125A.32, is amended to read:
34.34 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN.
35.1 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
35.2 	include:
35.3 	(1) a parent or parents of the child;
35.4 	(2) other family members, as requested by the parent, if feasible to do so;
35.5 	(3) an advocate or person outside of the family, if the parent requests that the 
35.6 	person participate;
35.7 	(4) the service coordinator who has been working with the family since the 
35.8 	initial referral, or who has been designated by the public agency to be responsible for 
35.9 	implementation of the IFSP and coordination with other agencies including transition 
35.10 	services; and
35.11 	(5) a person or persons involved in conducting evaluations and assessments.
35.12 	(b) The IFSP must include:
35.13 	(1) information about the child's developmental status;
35.14 	(2) family information, with the consent of the family;
35.15 	(3) measurable results or major outcomes expected to be achieved by the child 
35.16 	and the family, with the family's assistance, that include thedevelopmentally appropriate 
35.17 	preliteracy and language skills, and criteria, procedures, and timelines related to the results 
35.18 	or outcomes;
35.19 	(4) specific early intervention services based on peer-reviewed research, to the 
35.20 	extent practicable, necessary to meet the unique needs of the child and the family to 
35.21 	achieve the outcomes;
35.22 	(5) payment arrangements, if any;
35.23 	(6) medical and other services that the child needs, but that are not required under 
35.24 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
35.25 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
35.26 	paying for those services and the steps that will be taken to secure those services through 
35.27 	public or private sources;
35.28 	(7) dates and duration of early intervention services;
35.29 	(8) name of the service coordinator;
35.30 	(9) steps to be taken to support a child's transition from early intervention services to 
35.31 	other appropriate services, including convening a transition conference at least 90 days, or 
35.32 	at the discretion of all parties, not more than nine months before the child is eligible for 
35.33 	preschool services; and
35.34 	(10) signature of the parent and authorized signatures of the agencies responsible 
35.35 	for providing, paying for, or facilitating payment, or any combination of these, for early 
35.36 	intervention services.

36.1 	Sec. 7. Minnesota Statutes 2004, section 125A.33, is amended to read:
36.2 	125A.33 SERVICE COORDINATION.
36.3 	(a) The team developing the IFSP under section  125A.32 must select a service 
36.4 	coordinator to carry out service coordination activities on an interagency basis. Service 
36.5 	coordination must actively promote a family's capacity and competency to identify, 
36.6 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
36.7 	needs. Service coordination activities include: 
36.8 	(1) coordinating the performance of evaluations and assessments;
36.9 	(2) facilitating and participating in the development, review, and evaluation of 
36.10 	individualized family service plans;
36.11 	(3) assisting families in identifying available service providers;
36.12 	(4) coordinating and monitoring the delivery of available services;
36.13 	(5) informing families of the availability of advocacy services;
36.14 	(6) coordinating with medical, health, and other service providers;
36.15 	(7) facilitating the development of a transition plan at least 90 days before the time 
36.16 	the child is no longer eligible for early intervention services, or at the discretion of all 
36.17 	parties, not more than nine months before the child is eligible for preschool services, 
36.18 	 if appropriate;
36.19 	(8) managing the early intervention record and submitting additional information to 
36.20 	the local primary agency at the time of periodic review and annual evaluations; and
36.21 	(9) notifying a local primary agency when disputes between agencies impact service 
36.22 	delivery required by an IFSP.
36.23 	(b) A service coordinator must be knowledgeable about children and families 
36.24 	receiving services under this section, requirements of state and federal law, and services 
36.25 	available in the interagency early childhood intervention system.

36.26 	Sec. 8. Minnesota Statutes 2004, section 125A.48, is amended to read:
36.27 	125A.48 STATE INTERAGENCY AGREEMENT.
36.28 	(a) The commissioners of the Departments of Education, Health, and Human 
36.29 	Services must enter into an agreement to implement this section and Part H C, Public 
36.30 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
36.31 	303.523, to promote the development and implementation of interagency, coordinated, 
36.32 	multidisciplinary state and local early childhood intervention service systems for serving 
36.33 	eligible young children with disabilities, birth through age two, and their families and 
36.34 	to ensure the meaningful involvement of underserved groups, including children with 
37.1 	disabilities from minority, low-income, homeless, and rural families, and children with 
37.2 	disabilities who are wards of the state. The agreement must be reviewed annually. 
37.3 	(b) The state interagency agreement must outline at a minimum the conditions, 
37.4 	procedures, purposes, and responsibilities of the participating state and local agencies 
37.5 	for the following:
37.6 	(1) membership, roles, and responsibilities of a state interagency committee for 
37.7 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
37.8 	108-446, and other state allocations for this program;
37.9 	(2) child find;
37.10 	(3) establishment of local interagency agreements;
37.11 	(4) review by a state interagency committee of the allocation of additional state and 
37.12 	federal early intervention funds by local agencies;
37.13 	(5) fiscal responsibilities of the state and local agencies;
37.14 	(6) intraagency and interagency dispute resolution;
37.15 	(7) payor of last resort;
37.16 	(8) maintenance of effort;
37.17 	(9) procedural safeguards, including mediation;
37.18 	(10) complaint resolution;
37.19 	(11) quality assurance;
37.20 	(12) data collection;
37.21 	(13) an annual summary to the state Interagency Coordinating Council regarding 
37.22 	conflict resolution activities including disputes, due process hearings, and complaints; and
37.23 	(14) other components of the state and local early intervention system consistent 
37.24 	with Public Law 102-119 108-446.
37.25 	Written materials must be developed for parents, IEIC's, and local service providers 
37.26 	that describe procedures developed under this section as required by Code of Federal 
37.27 	Regulations, title 34, section 303.

37.28 	Sec. 9. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
37.29 		Subdivision 1.Approval of education programs. The commissioner shall 
37.30 	approve education programs for placement of children and youth in care and treatment
37.31 	residential facilities including detention centers, before being licensed by the Department 
37.32 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
37.33 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
37.34 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
37.35 	federal education laws including the Individuals with Disabilities Education Act (IDEA). 
38.1 	This section applies only to placements in residential facilities licensed by the Department 
38.2 	of Human Services or the Department of Corrections.

38.3 	Sec. 10. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
38.4 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
38.5 	residential facility is located must provide education services, including special education 
38.6 	if eligible, to all students placed in a facility for care and treatment.
38.7 	(b) For education programs operated by the Department of Corrections, the 
38.8 	providing district shall be the Department of Corrections. For students remanded to the 
38.9 	commissioner of corrections, the providing and resident district shall be the Department 
38.10 	of Corrections.
38.11 	(c) Placement for care and treatment does not automatically make a student eligible 
38.12 	for special education. A student placed in a care and treatment facility is eligible for 
38.13 	special education under state and federal law including the Individuals with Disabilities 
38.14 	Education Act under United States Code, title 20, chapter 33.

38.15 	Sec. 11. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
38.16 		Subd. 5.Education programs for students placed in residential facilities for 
38.17 	care and treatment. (a) When a student is placed in a care and treatment facility
38.18 	approved under this section  that has an on-site education program, the providing district, 
38.19 	upon notice from the care and treatment facility, must contact the resident district within 
38.20 	one business day to determine if a student has been identified as having a disability, and 
38.21 	to request at least the student's transcript, and for students with disabilities, the most 
38.22 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
38.23 	student has been identified as a student with a disability. The resident district must send a 
38.24 	facsimile copy to the providing district within two business days of receiving the request.
38.25 	(b) If a student placed for care and treatment  under this section has been identified as 
38.26 	having a disability and has an individual education plan in the resident district:
38.27 	(1) the providing agency must conduct an individualized education plan meeting 
38.28 	to reach an agreement about continuing or modifying special education services in 
38.29 	accordance with the current individualized education plan goals and objectives and to 
38.30 	determine if additional evaluations are necessary; and
38.31 	(2) at least the following people shall receive written notice or documented phone 
38.32 	call to be followed with written notice to attend the individualized education plan meeting:
38.33 	(i) the person or agency placing the student;
38.34 	(ii) the resident district;
39.1 	(iii) the appropriate teachers and related services staff from the providing district;
39.2 	(iv) appropriate staff from the care and treatmentresidential facility;
39.3 	(v) the parents or legal guardians of the student; and
39.4 	(vi) when appropriate, the student.
39.5 	(c) For a student who has not been identified as a student with a disability, a 
39.6 	screening must be conducted by the providing districts as soon as possible to determine 
39.7 	the student's educational and behavioral needs and must include a review of the student's 
39.8 	educational records.

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

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

39.25 	Sec. 14. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
39.26 		Subd. 9.Reimbursement for education services. (a) Education services 
39.27 	provided to students who have been placed for care and treatmentunder this section are 
39.28 	reimbursable in accordance with special education and general education statutes.
39.29 	(b) Indirect or consultative services provided in conjunction with regular education 
39.30 	prereferral interventions and assessment provided to regular education students suspected 
39.31 	of being disabled and who have demonstrated learning or behavioral problems in a 
39.32 	screening are reimbursable with special education categorical aids.
40.1 	(c) Regular education, including screening, provided to students with or without 
40.2 	disabilities is not reimbursable with special education categorical aids.

40.3 	Sec. 15. Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to 
40.4 	read:
40.5 		Subd. 10.Students unable to attend school but not placed in care and treatment 
40.6 	facilities covered under this section. Students who are absent from, or predicted to be 
40.7 	absent from, school for 15 consecutive or intermittent days, and placed at home or in 
40.8 	facilities not licensed by the Departments Department of Corrections or Human Services 
40.9 	are not students placed for care and treatment entitled to regular and special education 
40.10 	services, consistent with applicable law and rule. These students include students with 
40.11 	and without disabilities who are home due to accident or illness, in a hospital or other 
40.12 	medical facility, or in a day treatment center. These students are entitled to education 
40.13 	services through their district of residence.

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

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

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

40.26 	Sec. 18. Minnesota Statutes 2004, section 125A.76, is amended by adding a 
40.27 	subdivision to read:
40.28 		Subd. 4a.Special education maintenance of effort. If, on the basis of a forecast 
40.29 	of general fund revenues and expenditures, expenditures for special education aid under 
40.30 	section 125A.76; transition for disabled students under section 124D.454; travel for home- 
40.31 	based services under section 124A.75, subdivision 1; aid for students with disabilities 
40.32 	under section 125A.75, subdivision 3; court-placed special education under section 
41.1 	125A.79, subdivision 4; or out-of-state tuition under section 125A.79, subdivision 8; are 
41.2 	projected to be less than the amount previously forecast, the excess from these programs, 
41.3 	up to an amount sufficient to meet federal special education maintenance of effort, is 
41.4 	added to the state total special education aid in section 125A.76, subdivision 4.
41.5 	If, on the basis of a forecast of general fund revenues and expenditures, expenditures 
41.6 	in the programs in this subdivision are projected to be greater than previously forecast, 
41.7 	and an addition to state total special education aid has been made under this subdivision, 
41.8 	the state total special education aid must be reduced by the lesser of the amount of the 
41.9 	expenditure increase or the amount previously added to state total special education aid, 
41.10 	and this amount must be allocated back to the programs which were forecast to have 
41.11 	an excess.
41.12 	For the purposes of this subdivision, "previously forecast" means the allocation of 
41.13 	funding for these programs in either the most recent forecast of general fund revenues 
41.14 	and expenditures or the act appropriating money for these programs, whichever occurred 
41.15 	most recently.

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

41.17 	Sec. 19. Minnesota Statutes 2005 Supplement, section 125A.79, subdivision 1, is 
41.18 	amended to read:
41.19 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
41.20 	subdivision apply.
41.21 	(a) "Unreimbursed special education cost" means the sum of the following:
41.22 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
41.23 	transportation services eligible for revenue under section 125A.76; plus
41.24 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
41.25 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
41.26 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
41.27 	section 125A.76; minus
41.28 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
41.29 	eligible for revenue under section 125A.76, subdivision 2.
41.30 	(b) "General revenue" means the sum of the general education revenue according to 
41.31 	section 126C.10, subdivision 1, as adjusted according to section 127A.47, subdivisions 
41.32 	7 and 8 excluding alternative teacher compensation revenue, plus the total qualifying 
41.33 	referendum revenue specified in paragraph (e) minus transportation sparsity revenue 
41.34 	minus total operating capital revenue.
41.35 	(c) "Average daily membership" has the meaning given it in section 126C.05.
42.1 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
42.2 	year 2004 and later.
42.3 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
42.4 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
42.5 	(a), (b), and (c), for fiscal year 2006, one-third of the district's total referendum revenue 
42.6 	for fiscal year 2007, and none of the district's total referendum revenue for fiscal year 
42.7 	2008 and later.

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

42.9 	Sec. 20. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
42.10 	"BLIND" AND "BLINDNESS."
 42.11 	The commissioner of education, where appropriate, must incorporate references to 
42.12 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
42.13 	part 3525.1345, and amend the rule title to include the word "blind."

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

42.15 	Sec. 21. DEPARTMENT OF EDUCATION RULES.
 42.16 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
42.17 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

42.18 	Sec. 22.  SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 
42.19 	2006 AND 2007.
 42.20 	(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph 
42.21 	(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate 
42.22 	district, special education cooperative, or school district that served as an applicant agency 
42.23 	for a group of school districts for federal special education aids for fiscal year 2006 is not 
42.24 	subject to the uniform special education tuition billing calculations, but may instead 
42.25 	continue to bill the resident school districts for the actual unreimbursed costs of serving 
42.26 	pupils with a disability as determined by the intermediate district.
42.27 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
42.28 	(c), for fiscal year 2007 only, an applicant district may apply to the commissioner for 
42.29 	a waiver from the uniform special education tuition calculations and aid adjustments 
42.30 	under Minnesota Statutes, sections 125A.11, subdivision 1, paragraph (b), and 127A.47, 
42.31 	subdivision 7, paragraph (e). The commissioner must grant the waiver within 30 days of 
42.32 	receiving the following information from the intermediate district:
43.1 	(1) a detailed description of the applicant district's methodology for calculating 
43.2 	special education tuition for fiscal years 2006 and 2007, as required by the applicant 
43.3 	district to recover the full cost of serving pupils with a disability;
43.4 	(2) sufficient data to determine the total amount of special education tuition actually 
43.5 	charged for each student with a disability, as required by the applicant district to recover 
43.6 	the full cost of serving pupils with a disability in fiscal year 2006; and
43.7 	(3) sufficient data to determine the amount that would have been charged for each 
43.8 	student for fiscal year 2006 using the uniform tuition billing methodology according 
43.9 	to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7, as 
43.10 	applicable.

43.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
43.12 	for fiscal year 2006.

43.13 	Sec. 23.  REPEALER.
 43.14 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
43.15 	repealed.

43.16 	ARTICLE 4
43.17 	ACCOUNTING

43.18 	Section 1. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
43.19 		Subdivision 1.Budgets. By October 1 November 30, every board must 
43.20 	publish revenue and expenditure budgets for the current year and the actual revenues, 
43.21 	expenditures, fund balances for the prior year and projected fund balances for the current 
43.22 	year in a form prescribed by the commissioner. The forms prescribed must be designed so 
43.23 	that year to year comparisons of revenue, expenditures and fund balances can be made. 
43.24 	These budgets, reports of revenue, expenditures and fund balances must be published in 
43.25 	a qualified newspaper of general circulation in the district or on the district's official 
43.26 	Web site. If published on the district's official Web site, the district must also publish an 
43.27 	announcement in a qualified newspaper of general circulation in the district that includes 
43.28 	the Internet address where the information has been posted.

43.29 	Sec. 2. Minnesota Statutes 2004, section 123B.77, is amended by adding a subdivision 
43.30 	to read:
43.31 		Subd. 1a.School district consolidated financial statement. The commissioner 
43.32 	shall develop, implement, and maintain a school district consolidated financial statement 
44.1 	format that converts uniform financial accounting and reporting standards data under 
44.2 	subdivision 1 into a more understandable format.

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

44.4 	Sec. 3. Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:
44.5 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
44.6 	calendar year of the submission of the unaudited financial data, the district must provide to 
44.7 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
44.8 	conducted in compliance with generally accepted governmental auditing standards, the 
44.9 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
44.10 	of the State Auditor. An audited financial statement prepared in a form which will allow 
44.11 	comparison with and correction of material differences in the unaudited financial data 
44.12 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
44.13 	financial statement must also provide a statement of assurance pertaining to uniform 
44.14 	financial accounting and reporting standards compliance and a copy of the management 
44.15 	letter submitted to the district by the school district's auditor.
44.16 	(b) By December 15 of the calendar year of the submission of the unaudited financial 
44.17 	data, the commissioner shall convert the audited financial data required by this subdivision 
44.18 	into the consolidated financial statement format required under subdivision 1a and publish 
44.19 	the information on the department's Web site.

44.20 	EFFECTIVE DATE. This section is effective for financial statements prepared 
44.21 	in 2006.

44.22 	Sec. 4. Minnesota Statutes 2004, section 123B.79, is amended by adding a subdivision 
44.23 	to read:
44.24 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
44.25 	reserve accounts established in the school district's general fund under Minnesota Statutes 
44.26 	before July 1, 2005, for which no specific authority remains in statute as of June 30, 
44.27 	2006. Any balance in the district's reserved for bus purchases account as of June 30, 
44.28 	2006, shall be transferred to the reserved account for operating capital in the school 
44.29 	district's general fund. Any balance in other reserved accounts established in the school 
44.30 	district's general fund under Minnesota Statutes before July 1, 2005, for which no specific 
44.31 	authority remains in statute as of June 30, 2006, shall be transferred to the school district's 
44.32 	unreserved general fund balance. A school board may, upon adoption of a resolution by 
45.1 	the school board, establish a designated account for any program for which a reserved 
45.2 	account has been eliminated.

45.3 	EFFECTIVE DATE. This section is effective June 30, 2006.

45.4 	Sec. 5. Minnesota Statutes 2004, section 127A.41, subdivision 2, is amended to read:
45.5 		Subd. 2.Errors in distribution. On determining that the amount of state aid 
45.6 	distributed to a school district is in error, the commissioner is authorized to adjust the 
45.7 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
45.8 	in excess of the school district's entitlement, the commissioner is authorized to recover 
45.9 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
45.10 	designated by the appropriation, the excess may be recovered by reducing future aid 
45.11 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
45.12 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
45.13 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
45.14 	and reporting standards pursuant to sections  123B.75 to  123B.83. Notwithstanding the 
45.15 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
45.16 	is less than the school district's entitlement, the commissioner is authorized to increase 
45.17 	such aid from the current appropriation. If the aid program has been discontinued and has 
45.18 	no appropriation, the appropriation for general education shall be used for recovery or 
45.19 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
45.20 	shall be canceled to the state general fund.

45.21 	ARTICLE 5
45.22 	SELF-SUFFICIENCY AND LIFELONG LEARNING

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

45.28 	Sec. 2. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
45.29 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
45.30 	day or evening program offered by a district that is for people over 16 years of age who do 
45.31 	not attend an elementary or secondary school. The program offers academic instruction 
45.32 	necessary to earn a high school diploma or equivalency certificate.
46.1 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
46.2 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
46.3 	based on a family's income, but must waive the fee for participants who are under the 
46.4 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
46.5 	all socioeconomic levels to participate in the program. A program may charge a security 
46.6 	deposit to assure return of materials, supplies, and equipment.
46.7 	(c) Each approved adult basic education program must develop a memorandum of 
46.8 	understanding with the local workforce development centers located in the approved 
46.9 	program's service delivery area. The memorandum of understanding must describe how 
46.10 	the adult basic education program and the workforce development centers will cooperate 
46.11 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
46.12 	(d) Adult basic education aid must be spent for adult basic education purposes as 
46.13 	specified in sections  124D.518 to  124D.531. 
46.14 	(e) A state-approved adult basic education program must count and submit student 
46.15 	contact hours for a program that offers high school credit toward an adult high school 
46.16 	diploma according to student eligibility requirements and competency demonstration 
46.17 	requirements established by the commissioner.

46.18 	ARTICLE 6
46.19 	PUPIL TRANSPORTATION

46.20 	Section 1. Minnesota Statutes 2004, section 123B.90, subdivision 2, is amended to read:
46.21 		Subd. 2.Student training. (a) Each district must provide public school pupils 
46.22 	enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 
46.23 	as described in this section, of the following concepts:
46.24 	(1) transportation by school bus is a privilege and not a right;
46.25 	(2) district policies for student conduct and school bus safety;
46.26 	(3) appropriate conduct while on the school bus;
46.27 	(4) the danger zones surrounding a school bus;
46.28 	(5) procedures for safely boarding and leaving a school bus;
46.29 	(6) procedures for safe street or road crossing; and
46.30 	(7) school bus evacuation.
46.31 	(b) Each nonpublic school located within the district must provide all nonpublic 
46.32 	school pupils enrolled in kindergarten through grade 10 who are transported by school 
46.33 	bus at public expense and attend school within the district's boundaries with training as 
46.34 	required in paragraph (a).
47.1 	(c) Students enrolled in kindergarten through grade 6 who are transported by school 
47.2 	bus and are enrolled during the first or second week of school must receive the school bus 
47.3 	safety training competencies by the end of the third week of school. Students enrolled in 
47.4 	grades 7 through 10 who are transported by school bus and are enrolled during the first or 
47.5 	second week of school and have not previously received school bus safety training must 
47.6 	receive the training or receive bus safety instructional materials by the end of the sixth 
47.7 	week of school. Students taking driver's training instructional classes and other students in 
47.8 	grades 9 and grade 9 or 10 must receive training in the laws and proper procedures when 
47.9 	operating a motor vehicle in the vicinity of a school bus. Students enrolled in kindergarten 
47.10 	through grade 10 who enroll in a school after the second week of school and are 
47.11 	transported by school bus and have not received training in their previous school district 
47.12 	shall undergo school bus safety training or receive bus safety instructional materials 
47.13 	within four weeks of the first day of attendance. Upon request of the superintendent 
47.14 	of schools, the school transportation safety director in each district must certify to the 
47.15 	superintendent of schools annually that all students transported by school bus within 
47.16 	the district have received the school bus safety training according to this section. Upon 
47.17 	request of the superintendent of the school district where the nonpublic school is located, 
47.18 	the principal or other chief administrator of each nonpublic school must certify annually to 
47.19 	the school transportation safety director of the district in which the school is located that 
47.20 	the school's students transported by school bus at public expense have received training 
47.21 	according to this section.
47.22 	(d) A district and a nonpublic school with students transported by school bus at 
47.23 	public expense may provide kindergarten pupils with bus safety training before the first 
47.24 	day of school.
47.25 	(e) A district and a nonpublic school with students transported by school bus at 
47.26 	public expense may also provide student safety education for bicycling and pedestrian 
47.27 	safety, for students enrolled in kindergarten through grade 5.
47.28 	(f) A district and a nonpublic school with students transported by school bus at 
47.29 	public expense must make reasonable accommodations for the school bus safety training 
47.30 	of pupils known to speak English as a second language and pupils with disabilities.
47.31 	(g) The district and a nonpublic school with students transported by school bus at 
47.32 	public expense must provide students enrolled in kindergarten through grade 3 school bus 
47.33 	safety training twice during the school year.
47.34 	(h) A district and a nonpublic school with students transported by school bus at public 
47.35 	expense must conduct a school bus evacuation drill at least once during the school year.

47.36 	EFFECTIVE DATE. This section is effective July 1, 2006. 

48.1 	Sec. 2. Minnesota Statutes 2004, section 123B.91, is amended by adding a subdivision 
48.2 	to read:
48.3 		Subd. 1a.Compliance by nonpublic and charter school students. A nonpublic or 
48.4 	charter school student transported by a public school district shall comply with student bus 
48.5 	conduct and student bus discipline policies of the transporting public school district.

48.6 	EFFECTIVE DATE. This section is effective July 1, 2006.

48.7 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
48.8 	amended to read:
48.9 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
48.10 	terms defined in this subdivision have the meanings given to them.
48.11 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
48.12 	categories" means the quotient obtained by dividing:
48.13 	(1) the sum of:
48.14 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
48.15 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
48.16 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
48.17 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
48.18 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
48.19 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
48.20 	(iii) an amount equal to one year's depreciation on the district's type three school 
48.21 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
48.22 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
48.23 	the rate of 20 percent per year of the cost of the type three school buses by:
48.24 	(2) the number of pupils eligible for transportation in the regular category, as defined 
48.25 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
48.26 	(b) "Transportation category" means a category of transportation service provided to 
48.27 	pupils as follows:
48.28 	(1) Regular transportation is:
48.29 	(i) transportation to and from school during the regular school year for resident 
48.30 	elementary pupils residing one mile or more from the public or nonpublic school they 
48.31 	attend, and resident secondary pupils residing two miles or more from the public 
48.32 	or nonpublic school they attend, excluding desegregation transportation and noon 
48.33 	kindergarten transportation; but with respect to transportation of pupils to and from 
48.34 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
48.35 	(ii) transportation of resident pupils to and from language immersion programs;
49.1 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
49.2 	the pupil's home and the child care provider and between the provider and the school, if 
49.3 	the home and provider are within the attendance area of the school;
49.4 	(iv) transportation to and from or board and lodging in another district, of resident 
49.5 	pupils of a district without a secondary school; and
49.6 	(v) transportation to and from school during the regular school year required under 
49.7 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
49.8 	area border to the public school is one mile or more, and for nonresident secondary pupils 
49.9 	when the distance from the attendance area border to the public school is two miles or 
49.10 	more, excluding desegregation transportation and noon kindergarten transportation.
49.11 	For the purposes of this paragraph, a district may designate a licensed day care 
49.12 	facility, school day care facility, respite care facility, the residence of a relative, or the 
49.13 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
49.14 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
49.15 	residence is within the attendance area of the school the pupil attends.
49.16 	(2) Excess transportation is:
49.17 	(i) transportation to and from school during the regular school year for resident 
49.18 	secondary pupils residing at least one mile but less than two miles from the public or 
49.19 	nonpublic school they attend, and transportation to and from school for resident pupils 
49.20 	residing less than one mile from school who are transported because of extraordinary 
49.21 	traffic, drug, or crime hazards; and
49.22 	(ii) transportation to and from school during the regular school year required under 
49.23 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
49.24 	border to the school is at least one mile but less than two miles from the public school 
49.25 	they attend, and for nonresident pupils when the distance from the attendance area border 
49.26 	to the school is less than one mile from the school and who are transported because of 
49.27 	extraordinary traffic, drug, or crime hazards.
49.28 	(3) Desegregation transportation is transportation within and outside of the district 
49.29 	during the regular school year of pupils to and from schools located outside their normal 
49.30 	attendance areas under a plan for desegregation mandated by the commissioner or under 
49.31 	court order.
49.32 	(4) "Transportation services for pupils with disabilities" is:
49.33 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
49.34 	school bus between home or a respite care facility and school;
49.35 	(ii) necessary transportation of pupils with disabilities from home or from school to 
49.36 	other buildings, including centers such as developmental achievement centers, hospitals, 
50.1 	and treatment centers where special instruction or services required by sections 125A.03
50.2 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
50.3 	where services are provided;
50.4 	(iii) necessary transportation for resident pupils with disabilities required by sections 
50.5 	125A.12, and 125A.26 to 125A.48;
50.6 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
50.7 	classes;
50.8 	(v) transportation from one educational facility to another within the district for 
50.9 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
50.10 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
50.11 	with disabilities who are provided special instruction and services on a shared-time basis 
50.12 	or if resident pupils are not transported, the costs of necessary travel between public 
50.13 	and private schools or neutral instructional sites by essential personnel employed by the 
50.14 	district's program for children with a disability;
50.15 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
50.16 	facilities when the pupil is boarded and lodged for educational purposes; and
50.17 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
50.18 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
50.19 	individual education plan or in conjunction with a learning year program established 
50.20 	under section 124D.128.
50.21 	For purposes of computing special education base revenue under section 125A.76, 
50.22 	subdivision 2, the cost of providing transportation for children with disabilities includes 
50.23 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
50.24 	home in another district to the school of origin, or a formerly homeless student from a 
50.25 	permanent home in another district to the school of origin but only through the end of the 
50.26 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
50.27 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
50.28 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
50.29 	transportation category must be excluded in calculating the actual expenditure per pupil 
50.30 	transported in the regular and excess transportation categories according to paragraph (a).
50.31 	(5) "Nonpublic nonregular transportation" is:
50.32 	(i) transportation from one educational facility to another within the district for 
50.33 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
50.34 	transportation for nonpublic pupils with disabilities under clause (4);
51.1 	(ii) transportation within district boundaries between a nonpublic school and a 
51.2 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
51.3 	services pursuant to section 123B.44; and
51.4 	(iii) late transportation home from school or between schools within a district for 
51.5 	nonpublic school pupils involved in after-school activities.
51.6 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
51.7 	educational programs and services, including diagnostic testing, guidance and counseling 
51.8 	services, and health services. A mobile unit located off nonpublic school premises is a 
51.9 	neutral site as defined in section 123B.41, subdivision 13.

51.10 	EFFECTIVE DATE. This section is effective July 1, 2006.

51.11 	Sec. 4. Minnesota Statutes 2004, section 169.01, subdivision 6, is amended to read:
51.12 		Subd. 6.School bus. "School bus" means a motor vehicle used to transport pupils 
51.13 	to or from a school defined in section  120A.22, or to or from school-related activities, by 
51.14 	the school or a school district, or by someone under an agreement with the school or a 
51.15 	school district. A school bus does not include a motor vehicle transporting children to or 
51.16 	from school for which parents or guardians receive direct compensation from a school 
51.17 	district, a motor coach operating under charter carrier authority, a transit bus providing 
51.18 	services as defined in section  174.22, subdivision 7, a multifunction school activity bus 
51.19 	as defined by federal motor vehicle safety standards, or a vehicle otherwise qualifying 
51.20 	as a type III vehicle under paragraph (5), when the vehicle is properly registered and 
51.21 	insured and being driven by an employee or agent of a school district for nonscheduled 
51.22 	or nonregular transportation. A school bus may be type A, type B, type C, or type D, or 
51.23 	type III as follows: 
51.24 	(1) A "type A school bus" is a van conversion or bus constructed utilizing a cutaway 
51.25 	front section vehicle with a left-side driver's door. The entrance door is behind the front 
51.26 	wheels. This definition includes two classifications: type A-I, with a gross vehicle weight 
51.27 	rating (GVWR) less than or equal to 10,000 14,500 pounds or less; and type A-II, with a 
51.28 	GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
51.29 	(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance 
51.30 	door is behind the front wheels. This definition includes two classifications: type B-I, 
51.31 	with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater 
51.32 	than 10,000 pounds.
51.33 	(3) A "type C school bus" is constructed utilizing a chassis with a hood and front 
51.34 	fender assembly. The entrance door is behind the front wheels. A "type C school bus" also 
52.1 	includes a cutaway truck chassis or truck chassis with cab with or without a left side door 
52.2 	and with a GVWR greater than 21,500 pounds. 
52.3 	(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance 
52.4 	door is ahead of the front wheels.
52.5 	(5) Type III school buses and type III Head Start buses are restricted to passenger 
52.6 	cars, station wagons, vans, and buses having a maximum manufacturer's rated seating 
52.7 	capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of 
52.8 	10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value 
52.9 	specified by the manufacturer as the loaded weight of a single vehicle. A "type III school 
52.10 	bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type 
52.11 	A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a 
52.12 	seating capacity of ten or fewer and placed in service on or after August 1, 1999, must 
52.13 	have been originally manufactured to comply with the passenger safety standards.

52.14 	EFFECTIVE DATE. This section is effective January 1, 2007. 

52.15 	Sec. 5. Minnesota Statutes 2004, section 169.447, subdivision 2, is amended to read:
52.16 		Subd. 2.Driver seat belt. New School buses and Head Start buses manufactured 
52.17 	after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 
52.18 	of the type described in section  169.685, subdivision 3. School bus drivers and Head 
52.19 	Start bus drivers must use these seat belts. 

52.20 	EFFECTIVE DATE. This section is effective July 1, 2006.

52.21 	Sec. 6. Minnesota Statutes 2004, section 169.4501, subdivision 1, is amended to read:
52.22 		Subdivision 1.National standards adopted. Except as provided in sections  
52.23 	169.4502 and  169.4503, the construction, design, equipment, and color of types A, 
52.24 	B, C, and D school buses used for the transportation of school children shall meet the 
52.25 	requirements of the "bus chassis standards" and "bus body standards" in the 2000 2005
52.26 	edition of the "National School Transportation Specifications and Procedures" adopted 
52.27 	by the National Conference Congress on School Transportation. Except as provided 
52.28 	in section  169.4504, the construction, design, and equipment of types A, B, C, and D 
52.29 	school buses used for the transportation of students with disabilities also shall meet the 
52.30 	requirements of the "specially equipped school bus standards" in the 2000 2005 National 
52.31 	School Transportation Specifications and Procedures. The "bus chassis standards," "bus 
52.32 	body standards," and "specially equipped school bus standards" sections of the 2000
53.1 	2005 edition of the "National School Transportation Specifications and Procedures" are 
53.2 	incorporated by reference in this chapter. 

53.3 	EFFECTIVE DATE. This section is effective January 1, 2007.

53.4 	Sec. 7. Minnesota Statutes 2004, section 169.4501, subdivision 2, is amended to read:
53.5 		Subd. 2.Applicability. (a) The standards adopted in this section and sections  
53.6 	169.4502 and  169.4503, govern the construction, design, equipment, and color of school 
53.7 	buses used for the transportation of school children, when owned or leased and operated 
53.8 	by a school or privately owned or leased and operated under a contract with a school. 
53.9 	Each school, its officers and employees, and each person employed under the contract is 
53.10 	subject to these standards. 
53.11 	(b) The standards apply to school buses manufactured after October 31, 2004
53.12 	December 31, 2006. Buses complying with the standards when manufactured need not 
53.13 	comply with standards established later except as specifically provided for by law.
53.14 	(c) A school bus manufactured on or before October 31, 2004 December 31, 
53.15 	2006, must conform to the Minnesota standards in effect on the date the vehicle was 
53.16 	manufactured except as specifically provided for in law.
53.17 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
53.18 	vehicle meets state and federal standards for new buses which are current at the time of the 
53.19 	remounting. Permission must be obtained from the commissioner of public safety before 
53.20 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

53.21 	EFFECTIVE DATE. This section is effective January 1, 2007.

53.22 	Sec. 8. Minnesota Statutes 2004, section 169.4502, subdivision 5, is amended to read:
53.23 		Subd. 5.Electrical system; battery. (a) The storage battery, as established by the 
53.24 	manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 
53.25 	devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 
53.26 	battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 
53.27 	with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 
53.28 	cold cranking amperes.
53.29 	(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 
53.30 	type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 
53.31 	final location of the battery and the appropriate cable lengths in these buses must comply 
53.32 	with the SBMI design objectives booklet.
54.1 	(c) All batteries shall be mounted according to chassis manufacturers' 
54.2 	recommendations.
54.3 	(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 
54.4 	550 cold cranking amperes may be installed in the engine compartment only if used in 
54.5 	combination with a generator or alternator of at least 120 130 amperes.
54.6 	(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 
54.7 	equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 
54.8 	in combination with an alternator of at least 80 130 amperes. This paragraph does not 
54.9 	apply to those buses with wheelchair lifts or diesel engines.

54.10 	EFFECTIVE DATE. This section is effective January 1, 2007.

54.11 	Sec. 9. Minnesota Statutes 2004, section 169.4503, subdivision 20, is amended to read:
54.12 		Subd. 20.Seat and crash barriers. (a) All restraining barriers and passenger seats 
54.13 	shall be covered with a material that has fire retardant or fire block characteristics.
54.14 	(b) All seats must have a minimum cushion depth of 15 inches and a seat back 
54.15 	height of at least 20 inches above the seating reference point. 

54.16 	EFFECTIVE DATE. This section is effective January 1, 2007. 

54.17 	Sec. 10. Minnesota Statutes 2004, section 171.321, subdivision 4, is amended to read:
54.18 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
54.19 	transporting school children to or from school or upon a school-related trip or activity 
54.20 	without having demonstrated sufficient skills and knowledge to transport students in 
54.21 	a safe and legal manner.
54.22 	(b) A bus driver must have training or experience that allows the driver to meet at 
54.23 	least the following competencies:
54.24 	(1) safely operate the type of school bus the driver will be driving;
54.25 	(2) understand student behavior, including issues relating to students with 
54.26 	disabilities;
54.27 	(3) encourage orderly conduct of students on the bus and handle incidents of 
54.28 	misconduct appropriately;
54.29 	(4) know and understand relevant laws, rules of the road, and local school bus 
54.30 	safety policies;
54.31 	(5) handle emergency situations; and
54.32 	(6) safely load and unload students.
55.1 	(c) The commissioner of public safety shall develop a comprehensive model 
55.2 	school bus driver training program and model assessments for school bus driver training 
55.3 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
55.4 	private contractor may use alternative assessments for bus driver training competencies 
55.5 	with the approval of the commissioner of public safety. After completion of bus driver 
55.6 	training competencies, a driver may receive at least eight hours of school bus in-service 
55.7 	training any year, as an alternative to being assessed for bus driver competencies. The 
55.8 	employer shall keep the assessment or a record of the in-service training for the current 
55.9 	period available for inspection by representatives of the commissioner.

55.10 	EFFECTIVE DATE. This section is effective July 1, 2006. 

55.11 	Sec. 11.  REPEALER.
 55.12 	Minnesota Statutes 2004, sections 169.4502, subdivision 15; and 169.4503, 
55.13 	subdivisions 17, 18, and 26, are repealed.

55.14 	EFFECTIVE DATE. This section is effective January 1, 2007.